The Changes
Effective July 1, 2008 Virginia enacted some new laws regarding what used to be referred to as a Home Owner’s Association (HOA) and now are referred to as the Property Owner’s Association (POA) Act. There are some substantial restructuring of the way things are done. Namely a state governing entity is being established and the staff of POA’s will need to be licensed.
There are also some new restrictions on how expensive POA disclosure packets can be and time frames that they must be delivered to the requester. Many of you many not know that when a buyer purchase a home, they have 72 hours to decide to get out of the contract for no other reason. Therefore, delivering these documents as soon as possible is important.
The Summary of Changes
Creates the Virginia Common Interest Community Board to investigate complaints about community association managers
Requires associations to publish certificate or packet fees in electronic or paper format
Enables sellers or agents to request electronic delivery, and they may designate two additional recipients to receive the materials in electronic form at no additional charge
By the numbers:
Prohibits an association from charging anything beyond the fees set out in its declaration of covenants and restrictions or otherwise provided by law, with limits not to exceed:
o $100 for a property inspection
o $150 for two copies of the disclosure packet in hard copy and $125 for two copies of the disclosure packet in electronic form; only one fee may be charged
o $50 for an expedite fee
o $25 for an additional hard copy
o $50 for a post-closing fee
o actual cost of a commercial delivery service for hand delivery
Additionally:
o For no more than $50, an update, delivered within 10 days of a written request, may be requested if a packet or resale certificate was issued within the previous 12 months
o Fees are not paid up front but are deferred to the time of closing
o These changes only apply to associations who have hired a management company or who have a full-time staff
