What to Expect From the POA/COA Change…
Here starts a series to help inform you of the real estate changes taking affect July 1st, 2008 as passed and approved by the Virginia General Assembly and Governor Kaine. It will be a five part series starting with the changes made to the Property Owners Association Act (POA) and Condominium Act (COA); bill number is HB 516.
The POA/COA Change
One of the two corner pieces to this legislation was the creation of the Virginia Common Interest Community Board. The Board will consist of appointees who will investigate complaints about community association manager who will now have a licensure requirement through DPOR; the only exception to licensure is if the POA/COA doesn’t contract out to management and does not pay a staff to run the association.
The second largest change to the POA/COA is to the fee structure and delivery of the disclosure packet. The new law will now permit sellers, or their agents, to request electronic delivery of the disclosure packet; they can also request two additional recipients to receive the electronic packet at no additional charge.
The NEW Fee Structure
The POA/COA is no longer allowed to charge fees beyond its declaration of covenants and restrictions or else provided by law. The limits are not to go beyond:
$100 for a property inspection
$150 for two copies of the disclosure packet in hard copy, and
$125 for two electronic copies
$50 for an expedite fee
$25 for an additional hard copy
$50 for a post-closing fee
No more than the actual cost of a commercial delivery service for hand delivery; i.e. UPS, FedEx, etc.
Also,
For no more than $50, an update, delivered within 10 days of a written request, may be requested if a packet or resale certificate was issued within the previous 12 months.
Fees are not paid up front but are deferred to the time of closing
These changes only apply to associations who have hired a management company or have a full-time staff.
Come back to FAAR Forum to hear about changes to AVM’s, the Wet Settlement Act, listing and leasing agents disclosure, firm ownership, vested rights, and overcrowding enforcement.
Tags: Board, COA, Community, Condominium, disclosure, DPOR, exception, Governor Kaine, licensure, manager, packet, property