The current VAR Contract provides that the HOA Disclosure Packet needs to be delivered to the Purchasers prior to the settlement. Virginia Code Section §55.509.04 states that the Purchaser has three days after receipt of the actual disclosure packet to review the documents. Within the three days, the Purchaser can decide if they want to terminate the contract due to the information contained in the HOA Packet. No reason needs to be given and no questions can be asked, the Purchaser can simply terminate the contract.
As a result of this giant “get out of jail free card”, it is advisable for the listing Realtor and/or Seller to provide the HOA Packet very early after contract ratification. Do not wait until after the Purchasers obtain their loan commitment. At the least, provide the HOA packet immediately after any inspection contingency is satisfied. (Even if the transaction is a Short Sale, do not wait until Short Sale lender ratification – provide the packet early.)
Not only provide the HOA documents early, but be sure it is a complete packet provided from the HOA with current financial information. It is not enough to simply send the covenants and restrictions. The required packet should contain the items listed in VA Code §55.509.5, including a statement of all assessments and any other mandatory fees or charges currently imposed by the Association.