Under Virginia law, which of the following contingencies specifically relates to the Virginia Property Owners' Association Act and gives the buyer a right to rescind after receiving required documents?
Correct Answer
C) An HOA disclosure packet contingency providing a 3-calendar-day rescission right upon receipt of the complete packet
The Virginia Property Owners' Association Act (Va. Code § 55.1-1800 et seq.) requires sellers of property in a planned community to provide buyers with a complete HOA disclosure packet. Upon receipt of the complete packet, the buyer has a 3-calendar-day right of rescission. This statutory contingency is unique to Virginia's POA Act framework and is separate from any contractual contingencies the parties may add.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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