Concerns re: HOA not currently registered and how it could affect sale of townhouse.

Last August, the treasurer revealed he had let the HOA's registration expire and had not registered it for the past 9 years. I've asked him 3x in the last eight months to register the association and provide proof. I've checked the VSCC web page and it is still not registered.

I'm now selling my townhouse. My agent talked to a real estate lawyer and he sees this as a way for a potential buyer to cancel the contract. My agent has approached the HOA about this problem, but they still have not registered it.

If a buyer cancels the contract for this reason, can I sue the HOA officers for negligence or breach of fiduciary duties to recoup the loss of money I would have received from the sale of my townhouse?

Hi Brenda:

Per your state statutes the following is to be given by the association as disclosure packet when reqested. As noted #16 does state Certification that association has filed with the Common Interest Community Board; therefore, if they have not filed they would not be able to provide.

I would recommend you point out per the statute that they will need to provide this information and ask how they expect to provide when have not filed. See if it will jump start some action. With regards to potential liability you would need to check with a local attorney. You would also have to prove “beyond reasonable doubt” that was the substantial reason a buyer backed out of a contract.

§ 55-509.5. Contents of association disclosure packet; delivery of packet.

A. The association shall deliver, within 14 days after receipt of a written request and instructions by a seller or his authorized agent, an association disclosure packet as directed in the written request. The information contained in the association disclosure packet shall be current as of a date specified on the association disclosure packet. If hand or electronically delivered, the written request is deemed received on the date of delivery. If sent by United States mail, the request is deemed received six days after the postmark date. An association disclosure packet shall contain the following:

16. Certification that the association has filed with the Common Interest Community Board the annual report required by § 55-516.1, which certification shall indicate the filing number assigned by the Common Interest Community Board, and the expiration date of such filing.