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Personal Finances / Buying or Selling a Home
|Subject: Re: Selling: more of a rant than anything||Date: 3/21/2013 7:43 PM|
|Author: VTAlumni||Number: 124972 of 127815|
Appears that there is a VIRGINIA PROPERTY OWNERS’ ASSOCIATION ACT.
I didn't read the entire thing, but the parts that are snipped and put into the contract indicate that the buyer has to provide full HOA documents at time of Ratification and that the buyer had 3 days to review the documents and can back out at any time from them.
I'm not sure this is something that can be waived in the contract. Sounds like it is something that stemmed from the policies currently in place to protect people from predatory lending and high pressure sales tactics. In line with the 3 day back-out policy for buying timeshares, or signing refinance documents with a lender.
Probably a good idea in theory... in practice it opens up abuses in the other direction, at sellers expense.
What is currently working against us is that our HOA is in a very high profile legal battle with an ISP, OpenBand, that has exclusive rights to service in the community. Our community itself is a very sought after part of the region, regarded as one of the best places to live (pools, amenities, trails, business, etc...).
To make a long story short, back in the mid to late 90's our region was farmland on the outskirts of DC metro area. When a builder came here, they looked at bringing the latest and greatest in internet, phone and TV. The Builder signed a contract with OpenBand giving them 75 years exclusive rights to the community and a couple others to put in a 10mbs line. Back in the time it was unreal speeds and our community was lauded as one of the most tech savvy areas to settle into. OpenBand put in all the money to lay the expensive infrastructure knowing they'd make up for it by being guaranteed $150 a month per house for 75 years. 10 years later, we're in the mid 00's and FiOS emerges as well as a lot of other high speed options. People start to complain that OpenBand isn't keeping up with competition and they don't need to because they have exclusive rights, a monopoly over the community.
A few years ago the HOA filed a lawsuit against OpenBand and won with support of FCC rules that went into place in 2007 specific to our development... stating this was a Monopoly. Our county courts ruled in the HOA's favor and the contract was to end in summer of 2013. OpenBand decided to not only appeal but sue the HOA and County for 50 million.
This forced our HOA to hire lawyers to fight a case and caused our HOA fees to go up $30 a month.
Everyone in our region knows about the legal issues between the HOA and ISP, so this doesn't really explain the backing out behavior... but I think it is part of the reason that Virginia now has this Act in place giving the 3 day backout period.
This second guy is from a city only about 20 miles away and should have been well aware of the community HOA situation, but apparently went online last weekend and spooked himself reading all of the articles about it. In his case, I believe he really just didn't do his homework ahead of time and was probably pressured by his agent to move quickly. That doesn't excuse him in my mind, if we end up getting damaged from this.
An article about our community just got published on Reddit last week. Interesting read if any of that caught your interest:
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