What You Need to Know About the HOA Resale Disclosure Packet

What is an HOA resale disclosure packet? Under Virginia law, buyers
who sign a purchase contract to purchase a home that’s either in a
condo or an HOA neighborhood must be provided the resale package
from the seller. The resale package must be given to the buyer
in a timely manner after the contract is ratified. The buyer can
cancel the contract within three days of receiving the package, and
no reason needs to be given for that cancellation. If the buyer
makes no objection during that three-day window, the purchase
proceeds.  What does a disclosure packet contain? Any
covenants, bylaws, financial disclosures, insurance information,
special assessments, etc. The HOA will also conduct its own special
inspection and evaluation to make sure it’s not in violation of any
architectural guidelines and is in good shape. The HOA will also do
a financial evaluation to make sure the current owners or sellers
are up to date on all the dues and fees.   “For many of us in
Northern Virginia, the HOA resale disclosure packet is a standard
part of the home sale process.” If there is a violation attached to
that property, the seller will need to comply so they can receive a
clean letter from the HOA before settlement stating that they’ve
complied and everything can move forward. If the seller doesn’t
come into compliance, the buyer takes on that risk. Most of the
time, those violations remain and transfer to the new buyer. 
There is also an expense for the package that’s usually incurred by
the seller, and it can be paid at settlement in most cases. Most of
us homeowners in the Northern Virginia area have lived in an HOA
neighborhood at some point, so this is a standard part of the home
buying process.  If you have any more questions about HOA
resale disclosure packets or you’re thinking of buying or selling a
home in our market, don’t hesitate to reach out to me. I’d love to
help you.