2006 Code of Virginia § 55-511 - Contract disclosure statement; right of cancellation

55-511. Contract disclosure statement; right of cancellation.

A. Subject to the provisions of subsection F of 55-512, a person selling alot shall disclose in the contract that (i) the lot is located within adevelopment which is subject to the Virginia Property Owners' AssociationAct; (ii) the Act requires the seller to obtain from the property owners'association an association disclosure packet and provide it to the purchaser;(iii) the purchaser may cancel the contract within three days after receivingthe association disclosure packet or being notified that the associationdisclosure packet will not be available; (iv) if the purchaser has receivedthe association disclosure packet, the purchaser has a right to request anupdate of such disclosure packet in accordance with 55-512; and (v) theright to receive the association disclosure packet and the right to cancelthe contract are waived conclusively if not exercised before settlement.

For purposes of clause (iii), the association disclosure packet shall bedeemed not to be available if (i) a current annual report has not been filedby the association with either the State Corporation Commission pursuant to 13.1-936 or with the Real Estate Board pursuant to 55-516.1, (ii) theseller has made a written request to the association that the packet beprovided and no such packet has been received within 14 days in accordancewith subsection E of 55-512, or (iii) written notice has been provided bythe association that a packet is not available.

B. If the contract does not contain the disclosure required by subsection A,the purchaser's sole remedy is to cancel the contract prior to settlement.

C. The information contained in the association disclosure packet shall becurrent as of a date specified on the association disclosure packet obtainedby the seller in accordance with this section. The purchaser may cancel thecontract: (i) within three days after the date of the contract, if on orbefore the date that the purchaser signs the contract, the purchaser receivesthe association disclosure packet or is notified that the associationdisclosure packet will not be available; (ii) within three days afterreceiving the association disclosure packet if the association disclosurepacket or notice that the association disclosure packet will not be availableis hand delivered or delivered with the consent of the purchaser byelectronic means and a receipt obtained; or (iii) within six days after thepostmark date if the association disclosure packet or notice that theassociation disclosure packet will not be available is sent to the purchaserby United States mail. The purchaser may also cancel the contract at any timeprior to settlement if the purchaser has not been notified that theassociation disclosure packet will not be available and the associationdisclosure packet is not delivered to the purchaser. Notice of cancellationshall be hand delivered or sent by United States mail, return receiptrequested, to the owner or his agent. Such cancellation shall be withoutpenalty, and the seller shall cause any deposit to be returned promptly tothe purchaser. The association may also send the resale certificate byelectronic means with the consent of the seller and the purchaser.

D. Whenever any contract is canceled based on a failure to comply withsubsection A or C or pursuant to subsection B, any deposit or escrowed fundsshall be returned within 30 days of the cancellation, unless the parties tothe contract agreed upon a shorter period.

E. Any rights of the purchaser to cancel the contract provided by thischapter are waived conclusively if not exercised prior to settlement.

F. Except as expressly provided in this chapter, the provisions of thissection and 55-512 may not be varied by agreement, and the rights conferredby this section and 55-512 may not be waived.

(1989, c. 679; 1991, c. 667; 1995, c. 573; 1997, c. 887; 1998, c. 32; 1999,c. 809; 2001, c. 556; 2002, cc. 399, 509; 2003, c. 422.)