Did you happen to miss last month’s Fair Housing Act webinar put on by LeClairRyan’s Liz White and Brian Muse? No problem — the webinar is available for viewing at your convenience. Just click here to be linked to the blog’s "Webinars" section to find links to this webinar as well as all of
We received the following question relating to disclosure packets and financial updates: Va. Code § 55-509.9 provides that settlement agents may request escrow instructions from the disclosure packet preparer, who would be the association manager in the case of a professionally managed association. No fee may be charged for escrow instructions, whereas an association manager may charge a $50 fee for a financial update. Settlement agents and other parties involved in the sale of a property (e.g. real estate agents) regularly request written confirmation of outstanding assessments, special assessments, HOA insurance coverage, insurance agent contact information, etc. Since this information is in the disclosure packet already provided, does this information qualify as a “financial update” for which a fee may be charged? Is there a definition of what is included in a settlement agent request that is not subject to a fee and one that is?
On Wednesday, May 19th, LeClairRyan’s Community Association Industry Team will be hosting a free webinar entitled "The Fair Housing Act: Keeping your Community Association in Compliance and Out of Court.”
Thank you to all those who participated in our March 31st webinar on POA Disclosure Packets. To follow up, the following are answers to those questions you submitted that were left unanswered at the end of the program. Thank you for your insightful questions!
Q. Is HB 702, the new law regarding time of payment for disclosure packets (effective July 1, 2010), applicable to professionally managed associations as well as self-managed associations?
A. The new law will apply only to self-managed associations. For the time being, professionally-managed associations should continue to ensure that fees for disclosure packets are collected at settlement.
Q. Must a copy of an insurance document or certificate for the Association be included in the disclosure packet, or only a notation of the coverage amount?
A. The disclosure packet must include a "statement setting forth what insurance coverage is provided for all lot owners by the association, including the fidelity bond maintained by the association, and what additional insurance would normally be secured by each individual lot owner." A document from the insurance company is not required.
Anyone selling a lot or home that is part of a Property Owners’ Association (POA) is responsible for providing potential lot purchasers with information about the POA, referred as a “disclosure packet.” Sellers rely on their associations to provide complete and current disclosure packets to prospective purchasers. If a POA is managed by a POA…