DC REAL ESTATE RESCISSION PERIODS

Document review periods for condominium, townhouse and single family home transactions involving an association in Washington DC.

It’s the law. The DC Condo Act (reference your purchase agreement) essentially gives buyers the right to review association documents and/or resale certifications for a specified number of days from date of receipt and withdraw from a Washington DC condo or co-op transaction should they not agree with the rules and regulations. In Washington DC:

  • New condos are afforded a 15 day right of rescission from the date of receipt of the public offering statement package.
  • Resale condos are afforded 3 business days beginning the day following the date of receipt of the resale package.
  • Although developers aren’t required to provide a right of rescission for association documents on fee simple products such as single family attached or detached homes, they may opt to do so. Be sure to ask before signing a contract. If there is no rescission clause, try to negotiate one.
  • Resale buyers are protected on fee simple purchases by the HOA disclosure in the GCAAR real estate contract. It requires sellers to provide buyers with HOA documents by the 10th day following ratification. The buyer has 3 business days for right of rescission.
Virginia Rescission Periods

The Virginia Condo Act (reference your purchase agreement) essentially gives buyers the right to review public offering statements, association documents and/or resale certifications for a specified number of days from date of receipt and withdraw from the transaction within that time should they not agree with the rules and regulations or approve of the associations budgetary or finacial data. Right of Rescission in Virginia (these rules can be updated from time to time, so be sure to check for new rules and revisions to old ones):

  • New Condos: 10 days from day of receipt Under Virginia Law a purchaser of a condominium unit is afforded a ten day period during which he or she may cancel the contract of sale and obtain a full refund of any sums deposited in connection with the contract. The ten day period begins running on the contract date or the date of delivery of a Public Offering Statement, whichever is later. The purchaser should inspect the condominium unit and all common areas and obtain professional advice. If the purchaser elects to cancel, he or she must deliver notice of cancellation to the declarant by hand or by United States mail, return receipt requested;
  • Resale condos: 3 calendar days from date of receipt of resale package.

 

Virginia Condominium Act Section 55-79.97: The statute as amended states that a purchaser of a condominium unit may cancel a sales contract within 3 days of being notified that the resale certificate will not be available, and the amendments define when a resale certificate shall be deemed not to be available. Specifically, a resale certificate is not available when: (a) a current annual report has not been filed by the unit owners’ association with either the State Corporation Commission pursuant to § 13.1-936 or the Common Interest Community Board pursuant to § 55-79.93:1, (b) the seller has made a written request to the unit owners’ association that the resale certificate be provided and no resale certificate has been received within 14 days in accordance with subsection C of the statute, or (c) written notice has been provided by the unit owners’ association that a resale certificate is not available. Section 55-79.97(F) was also amended to make it clear that a resale certificate need not be provided if there is a disposition of the unit by a sale at an auction when a resale certificate was made available as part of the auction package for prospective purchasers prior to the auction.

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Remember that District of Columbia and Virginia condo acts can be updated. Check the ,gov sites for updates. Information here is deemed reliable but not guaranteed.
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