Virginia Resale Certificate Process is Overhauled
Through the efforts of the recently formed Virginia Association of Community Managers (VACM), the process to obtain a Resale Certificate in Virginia has been changed to a new and potential national model. In the past requestors such as Realtors, title companies, sellers and others who needed to obtain a Virginia Resale certificate had to pay for the service in advance, making the party vulnerable should the real estate transaction not be completed. As of July 1, 2007, the new process will allow authorized parties to order the Resale Certificate, with the processing fee to be paid at closing/settlement. What makes this new law unique is the concept that as soon as the Resale Certificate is ordered, the association is required to pay the management company, and the owner/seller is required to pay the association. In this way, Resale Certificates become an assessment, due from the owner/seller, just as all other assessments. If the real estate transaction is completed as planned, the monies are simply collected at closing, payable to the association. In the event the real estate transaction is not completed as planned, the owner/seller is required to pay the “assessment” just as they would any other assessment, with all applicable late fees, interest, lien obligations etc. This new process will benefit all parties as it ends the dilemma of real estate professionals trying to recoup out of pocket funds, when a real estate transaction is not completed as planned. Congratulations to the dedicated members of VACM, the Virginia State Legislature, and all concerned on this notable modernization. It should be noted that the flexibility of the Community Archives Electronic Information Delivery systems allows Community Archives users to be in full compliance with the new laws, well in advance of the July 1, 2007 implementation date.