A buyer in Virginia purchases a home located in a planned community subject to the Virginia Property Owners' Association Act. The seller provides the HOA disclosure packet, but it is missing the current reserve fund study. The buyer signs an acknowledgment of receipt and proceeds to closing without raising the issue. Three weeks after closing, the buyer discovers the reserve fund is severely underfunded. Which of the following best describes the buyer's legal position under Virginia law?
Correct Answer
B) The buyer may have limited recourse because proceeding to closing after acknowledging receipt may be construed as waiving the incomplete packet objection
Under the Virginia Property Owners' Association Act (Va. Code § 55.1-1800 et seq.), while an incomplete packet does not start the rescission clock, a buyer who proceeds to closing without raising the deficiency may be found to have waived objections to the incomplete packet. The buyer's legal recourse post-closing is significantly limited, and the right to rescind based on the incomplete packet is extinguished once closing occurs. This is a complex area where the buyer's conduct (signing acknowledgment and proceeding to closing) affects available remedies.
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Related Topics & Key Terms
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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