The Virginia Resale Certificate: Reading the HOA and Condo Disclosure Packet

A Virginia resale certificate is the disclosure packet a seller must obtain from a homeowners or condo association and give to the buyer under the Virginia Resale Disclosure Act. It lays out the association’s finances, rules, insurance and any problems tied to the unit, and unless your contract says otherwise, it gives you three days to cancel after you receive it. If you’re buying almost any townhouse or condo in Northern Virginia, this packet deserves an evening of your full attention.

Who has to provide it, and when

The duty sits with the seller. Under § 55.1-2308, a contract for the resale of a unit in a common interest community must disclose that the property is in one, that the seller will provide a resale certificate, and that the buyer has a right to cancel. The association then has 14 days after a written request to deliver it, in paper or electronic form, under § 55.1-2309. If it doesn’t arrive by then, the law treats it as unavailable.

A few smaller associations and certain transfers are exempt, so ask your agent to confirm early. Some homes sit in more than one association (for example, a condo inside a master community). In that case the buyer’s clock runs from delivery of the last certificate.

Your right to cancel

When the certificate arrives	Default cancellation window (if the contract sets none)
Before the contract is ratified	3 days from ratification
After the contract is ratified	3 days from receiving the certificate or notice that it’s unavailable
Never delivered	Any time before settlement
More than one association	Clock starts with the last certificate delivered

These rules come from § 55.1-2312. Cancellation must be in writing to the seller following the contract’s notice terms, it carries no penalty, and your deposit must be returned promptly. The rights are waived if you don’t use them before settlement. Contracts can set a different review period, so read yours.

What’s in the packet

Virginia law spells out the contents in § 55.1-2310. The list is long; here’s how I group it for buyers:

• Money: current assessment and payment schedule, other fees, any unpaid balances on the unit, special assessments, approved capital expenditures for this and next year, reserve balances, the operating budget, the latest balance sheet and income statement, and the reserve study or a summary.
• Legal and risk: unsatisfied judgments and pending lawsuits that could materially affect the association, government notices of uncured code or environmental violations, and the association’s insurance, including what owners must carry and notice that owners may owe deductibles.
• Rules that affect daily life: governing documents, rules and regulations, limits on renting, parking and vehicles, signs, flags, solar devices, home businesses, and occupancy.
• The unit itself: any written violation notices the board has sent or received for the unit.
• Governance: approved board minutes from the past six months and minutes from the most recent association meeting.
• Financing-related: known approvals from secondary mortgage market agencies, and confirmation that the association’s annual report is filed with the state.

What to read first (my order)

1. Dues and special assessments. Confirm the current amount, any increase in the new budget, and whether a special assessment is approved or under discussion.
2. Reserves and the reserve study. Compare the funded reserves to what the study recommends. A thin reserve can mean future special assessments.
3. Approved capital expenditures. Roofs, elevators, garages and facades are where big bills come from.
4. Board minutes. This is where you find the conversations before they become line items: leaks, contractor disputes, insurance claims.
5. Insurance and deductibles. Know what the master policy covers and what your HO-6 or homeowner policy needs to pick up.
6. Rental and parking rules, especially if you might rent the unit later.
7. Violations on the unit, which you’ll want resolved before closing.

If you’re buying a condo, my guide to buying a condo in Arlington covers building-level questions that go alongside this packet.

Fees and updates

The seller pays to prepare and deliver the certificate. Maximum fees are set by Virginia’s Common Interest Community Board; the current fee schedule caps preparation at $176.64 for electronic delivery and $211.96 for paper, with an optional $70.66 expedite fee if the preparer agrees to finish in five business days, and an inspection fee of up to $141.31 where the declaration allows one. The buyer may see a post-closing fee of up to $70.66 to update the association’s ownership records.

If settlement is more than 30 days after the certificate was issued, the seller or buyer can request an updated certificate, due within 10 days, and a financial update can be requested and must be provided within three business days. These line items show up on your settlement statement, so plug them into our closing cost estimator.

A worked example

Illustrative only. A buyer ratifies a contract on a two-bedroom condo on a Monday. The certificate arrives by email on Thursday, and the contract sets no separate review period, so the buyer has until Sunday to cancel.

Reading it, the buyer sees $380 monthly dues, a new budget raising them 6%, and minutes discussing a garage repair estimated in the hundreds of thousands. The reserve study recommends nearly twice the current reserve balance. None of that is automatically a deal breaker, but it’s a reason to ask the manager whether a special assessment is likely, check with the lender that the building still meets loan requirements, and decide within the window.

Common mistakes

• Skimming the summary page and skipping the minutes.
• Letting the three days slide by because the packet arrived late on a Friday.
• Assuming a low dues figure is good news. Underfunded reserves often show up as low dues.
• Ignoring rental caps or waiting lists when you might rent the home later.
• Not lining up an HO-6 or homeowner policy that matches the master policy deductible.

Sellers, the flip side is in my post on selling a condo in Northern Virginia. This article is general information, not legal advice; for questions about a specific contract or association, consult a Virginia real estate attorney.

Frequently asked questions

How long do I have to review HOA documents in Virginia?

If your contract sets no other period, three days from ratification when the certificate came first, or three days from receiving it when it came after. If it never arrives, you can cancel any time before settlement.

Who pays for the resale certificate in Virginia?

The seller pays the preparation, delivery and any inspection fees. An updated certificate is paid by whoever requests it, and buyers may owe a small post-closing fee.

How long does an HOA have to provide a resale certificate in Virginia?

Fourteen days after the seller’s written request. If it isn’t delivered by then, it’s considered unavailable, and the buyer can cancel any time before settlement.

Can I back out of a condo purchase after reading the resale certificate?

Yes, within the cancellation window, by written notice to the seller, without penalty, and your deposit is returned. After that window, other contract contingencies may still apply.

Sources

• Va. Code § 55.1-2309, delivery
• Va. Code § 55.1-2310, contents
• Va. Code § 55.1-2312, cancellation
• DPOR: CIC maximum allowable fees