55-509.7 - Fees for disclosure packets; associations not managed by a common interest community manager.
§ 55-509.7. Fees for disclosure packets; associations not managed by a commoninterest community manager.
A. The association may charge a fee for the preparation and issuance of theassociation disclosure packet required by § 55-509.5. Any fee shall reflectthe actual cost of the preparation of the association disclosure packet, butshall not exceed $0.10 per page of copying costs or a total of $100 for allcosts incurred in preparing the association disclosure packet. The seller orhis authorized agent shall specify whether the association disclosure packetshall be delivered electronically or in hard copy and shall specify thecomplete contact information of the parties to whom the disclosure packetshall be delivered. If the seller or his authorized agent specifies thatdelivery shall be made to the purchaser or his authorized agent, the preparershall provide the disclosure packet directly to the designated persons, atthe same time it is delivered to the seller or his authorized agent. Theassociation shall advise the requestor if electronic delivery of thedisclosure packet or the disclosure packet update or financial update is notavailable, if electronic delivery has been requested by the seller or hisauthorized agent.
B. No fees other than those specified in this section shall be charged by theassociation for compliance with its duties and responsibilities under thissection. Any fees charged pursuant to this section shall be collected at thetime of delivery of the disclosure packet. If unpaid, any such fees shall bean assessment against the lot and collectible as any other assessment inaccordance with the provisions of the declaration and § 55-516. The sellermay pay the association by cash, check, certified funds, or credit card, ifcredit card payment is an option offered by the association.
C. If an association disclosure packet has been issued for a lot within thepreceding 12-month period, a person specified in the written instructions ofthe seller or his authorized agent, including the seller or his authorizedagent, or the purchaser or his authorized agent may request a disclosurepacket update. The requestor shall specify whether the disclosure packetupdate shall be delivered electronically or in hard copy and shall specifythe complete contact information of the parties to whom the specified updateshall be delivered. The disclosure packet update shall be delivered within 10days of the written request therefor.
D. The settlement agent may request a financial update. The requestor shallspecify whether the financial update shall be delivered electronically or inhard copy, and shall specify the complete contact information of the partiesto whom the update shall be delivered. The financial update shall bedelivered within three business days of the written request therefor.
E. A reasonable fee for the disclosure packet update or a financial updatemay be charged by the preparer not to exceed $50. At the option of thepurchaser or his authorized agent, the requestor may request that theassociation perform an additional inspection of the exterior of the dwellingunit and the lot, as authorized in the declaration, for a fee not to exceed$50. Any fees charged for the specified update shall be collected at the timeof delivery of the update. The association shall not require cash, check,certified funds, or credit card payments at the time the request is made forthe disclosure packet update. The requestor may request that the specifiedupdate be provided in hard copy or in electronic form.
F. No association may require the requestor to request the specified updateelectronically. The seller or his authorized agent shall continue to have theright to request a hard copy of the specified update in person at theprincipal place of business of the association. If the requestor asks thatthe specified update be provided in electronic format, the association shallnot require the requester to pay any fees to use the provider's electronicnetwork or system. If the requestor asks that the specified update beprovided in electronic format, the requestor may designate no more than twoadditional recipients to receive the specified update in electronic format atno additional charge. A copy of the specified update shall be provided to theseller or his authorized agent.
G. When a disclosure packet has been delivered as required by § 55-509.5, theassociation shall, as to the purchaser, be bound by the statements set forththerein as to the status of the assessment account and the status of the lotwith respect to any violation of the declaration, bylaws, rules andregulations, architectural guidelines and articles of incorporation, if any,of the association as of the date of the statement unless the purchaser hadactual knowledge that the contents of the disclosure packet were in error.
H. If the association has been requested to furnish the associationdisclosure packet required by this section, failure to provide theassociation disclosure packet substantially in the form provided in thissection shall be deemed a waiver of any claim for delinquent assessments orof any violation of the declaration, bylaws, rules and regulations, orarchitectural guidelines existing as of the date of the request with respectto the subject lot. The association shall be liable to the seller in anamount equal to the actual damages sustained by the seller in an amount notto exceed $500. The purchaser shall nevertheless be obligated to abide by thedeclaration, bylaws, rules and regulations, and architectural guidelines ofthe association as to all matters arising after the date of the settlement ofthe sale.
(2008, cc. 851, 871; 2010, c. 165.)