CODE OF VIRGINIA

FEES FOR DISCLOSURE PACKET; PROFESSIONALLY MANAGED ASSOCIATIONS (§ 55-509.6)

A. A professionally managed association or its common interest community manager
may charge certain fees as authorized by this section for the inspection of the
property, the preparation and issuance of the disclosure packet required by §
55-509.5, and for such other services as set out in this section. The seller or
the seller’s authorized agent shall specify in writing whether the
disclosure packet shall be delivered electronically or in hard copy, at the
option of the seller or the seller’s authorized agent, and shall specify
the complete contact information for the parties to whom the disclosure packet
shall be delivered.

B. A reasonable fee may be charged by the preparer as follows for:

   1.  The inspection of the exterior of the dwelling unit and the lot, as
   authorized in the declaration and as required to prepare the association
   disclosure packet, a fee not to exceed $ 100;

   2.  The preparation and delivery of the disclosure packet in (i) paper format,
   a fee not to exceed $ 150 for no more than two hard copies or (ii) electronic
   format, a fee not to exceed a total of $ 125 for an electronic copy to each of
   the following named in the request: the seller, the seller’s authorized
   agent, the purchaser, the purchaser’s authorized agent, and not more
   than one other person designated by the requester. The preparer of the
   disclosure packet shall provide the disclosure packet directly to the
   designated persons. Only one fee shall be charged for the preparation and
   delivery of the disclosure packet;

   3.  At the option of the seller or the seller’s authorized agent, with
   the consent of the association or the common interest community manager,
   expediting the inspection, preparation and delivery of the disclosure packet,
   an additional expedite fee not to exceed $ 50;

   4.  At the option of the seller or the seller’s authorized agent, an
   additional hard copy of the disclosure packet, a fee not to exceed $ 25 per
   hard copy;

   5.  At the option of the seller or the seller’s authorized agent, a fee
   not to exceed an amount equal to the actual cost paid to a third-party
   commercial delivery service for hand delivery or overnight delivery of the
   association disclosure packet; and

   6.  A post-closing fee to the purchaser of the property, collected at
   settlement, for the purpose of establishing the purchaser as the owner of the
   property in the records of the association, a fee not to exceed $ 50.Except as
   otherwise provided in subsection E, neither the association nor its common
   interest community manager shall require cash, check, certified funds or
   credit card payments at the time the request for the disclosure packet is
   made. The disclosure packet shall state that all fees and costs for the
   disclosure packet shall be the personal obligation of the lot owner and shall
   be an assessment against the lot and collectible as any other assessment in
   accordance with the provisions of the declaration and § 55-516, if not paid
   at settlement or within 60 days of the delivery of the disclosure packet,
   whichever occurs first.For purposes of this section, an expedite fee shall
   only be charged if the inspection and preparation of delivery of the
   disclosure packet are completed within five business days of the request for a
   disclosure packet.

C. No fees other than those specified in this section, and as limited by this
section, shall be charged by the association or its common interest community
manager for compliance with the duties and responsibilities of the association
under this chapter. No additional fee shall be charged for access to the
association’s or common interest community manager’s website. The
association or its common interest community manager shall publish and make
available in paper or electronic format, or both, a schedule of the applicable
fees so the seller or the seller’s authorized agent will know such fees at
the time of requesting the packet.

D. Any fees charged pursuant to this section shall be collected at the time of
settlement on the sale of the lot and shall be due and payable out of the
settlement proceeds in accordance with this section. The settlement agent shall
escrow a sum sufficient to pay such costs of the seller at settlement. The
seller shall be responsible for all costs associated with the preparation and
delivery of the association disclosure packet, except for the costs of any
disclosure packet update or financial update, which costs shall be the
responsibility of the requester, payable at settlement. Neither the association
nor its common interest community manager shall require cash, check, certified
funds, or credit card payments at the time of the request is made for the
association disclosure packet.

E. If settlement does not occur within 60 days of the delivery of the disclosure
packet, or funds are not collected at settlement and disbursed to the
association or the common interest community manager, all fees, including those
costs that would have otherwise been the responsibility of the purchaser or
settlement agent, shall be (i) assessed within one year after delivery of the
disclosure packet against the lot owner, (ii) the personal obligation of the lot
owner, and (iii) an assessment against the lot and collectible as any other
assessment in accordance with the provisions of the declaration and § 55-516.
The seller may pay the association by cash, check, certified funds, or credit
card, if credit card payment is an option offered by the association. The
association shall pay the common interest community manager the amount due from
the lot owner within 30 days after invoice.

F. The maximum allowable fees charged in accordance with this section shall
adjust every five years, as of January 1 of that year, in an amount equal to the
annual increases for that five-year period in the United States Average Consumer
Price Index for all items, all urban consumers (CPI-U), as published by the
Bureau of Labor Statistics of the U.S. Department of Labor.

G. If an association disclosure packet has been issued for a lot within the
preceding 12-month period, a person specified in the written instructions of the
seller or the seller’s authorized agent, including the seller or the
seller’s authorized agent, or the purchaser or his authorized agent may
request a disclosure packet update. The requester shall specify whether the
disclosure packet update shall be delivered electronically or in hard copy, and
shall specify the complete contact information of the parties to whom the update
shall be delivered. The disclosure packet update shall be delivered within 10
days of the written request.

H. The settlement agent may request a financial update. The requester shall
specify whether the financial update shall be delivered electronically or in
hard copy, and shall specify the complete contact information of the parties to
whom the update shall be delivered. The financial update shall be delivered
within three business days of the written request.

I. A reasonable fee for the disclosure packet update or financial update may be
charged by the preparer not to exceed $ 50. At the option of the purchaser or
the purchaser’s authorized agent, the requester may request that the
association or the common interest community manager perform an additional
inspection of the exterior of the dwelling unit and the lot, as authorized in
the declaration, for a fee not to exceed $ 100. Any fees charged for the
specified update shall be collected at the time settlement occurs on the sale of
the property. The settlement agent shall escrow a sum sufficient to pay such
costs of the seller at settlement. Neither the association nor its common
interest community manager, if any, shall require cash, check, certified funds,
or credit card payments at the time the request is made for the disclosure
packet update. The requester may request that the specified update be provided
in hard copy or in electronic form.

J. No association or common interest community manager may require the requester
to request the specified update electronically. The seller or the seller’s
authorized agent shall continue to have the right to request a hard copy of the
specified update in person at the principal place of business of the
association. If the requester asks that the specified update be provided in
electronic format, neither the association nor its common interest community
manager may require the requester to pay any fees to use the provider’s
electronic network or system. A copy of the specified update shall be provided
to the seller or the seller’s authorized agent.

K. When an association disclosure packet has been delivered as required by §
55-509.5, the association shall, as to the purchaser, be bound by the statements
set forth therein as to the status of the assessment account and the status of
the lot with respect to any violation of the declaration, bylaws, rules and
regulations, architectural guidelines and articles of incorporation, if any, of
the association as of the date of the statement unless the purchaser had actual
knowledge that the contents of the disclosure packet were in error.

L. If the association or its common interest community manager has been
requested in writing to furnish the association disclosure packet required by §
55-509.5, failure to provide the association disclosure packet substantially in
the form provided in this section shall be deemed a waiver of any claim for
delinquent assessments or of any violation of the declaration, bylaws, rules and
regulations, or architectural guidelines existing as of the date of the request
with respect to the subject lot. The preparer of the association disclosure
packet shall be liable to the seller in an amount equal to the actual damages
sustained by the seller in an amount not to exceed $ 1,000. The purchaser shall
nevertheless be obligated to abide by the declaration, bylaws, rules and
regulations, and architectural guidelines of the association as to all matters
arising after the date of the settlement of the sale.

HISTORY: 2008, cc. 851, 871; 2009, c. 557; 2011, cc. 334, 577, 585; 2014, c.
216; 2015, c. 277; 2016, c. 471.