Property Sales and the Virginia Property Owners Association Act
Before selling property in the Runaway Bay development, it is very important that property owners become familiar with the requirements of the Virginia Property Owners Association Act (VPOAA). If a seller does not comply with the requirements of the Act, a buyer may cancel the contract.
The Act requires a person selling property to disclose in the contract that the property is located in a development that is subject to the VPOAA. The Act also requires the seller to obtain from the Homeowners Association an Association Disclosure Packet and provide the packet to the purchaser. Runaway Bay Homeowners Association charges a $100 fee to cover expenses to produce these lot-specific packets. The purchaser may cancel the contract within three days after receiving the association disclosure packet or being notified that the association disclosure packet will not be available. The Act requires that specific information be included in the disclosure packet including a statement of the amount of assessments and the status of the property owners account, i.e. a statement regarding delinquent association dues; budget information; reserve fund information; a copy of the lot-specific declaration of covenants, conditions and restrictions; the articles of incorporation and bylaws; a copy of the notice given to the property owner by the association of any current or pending rule or architectural violation; etc. It is worth noting that since delinquent dues and architectural violations run with the land, a buyer could be liable for delinquent assessments and late fees and could have his/her rights to vote or use the common facilities suspended if a property owner sells the property without paying dues or correcting architectural violations.
This is a very brief summary of the requirements of the Act and is provided for information only. It is not intended to provide legal advice. Property owners should seek the advice of a real estate attorney to determine how the Act applies to each individual situation.
To order a Disclosure Packet, please contact the Association by mail or phone.
For a current copy of the Act, visit the Virginia Legislative Information System web site: