Section: Buyer Playbook
Author: Susan Isaacs, Washington DC Real Estate Strategist
Your right to withdraw from a DC condominium transaction within a specified number of days without penalty. Rescission periods vary for resale and new construction.
DC Real Estate Rescission Periods & Document Review
By definition, “rescission” is the revocation, cancellation, or repeal of a law, order, or agreement.
The Washington DC Condominium Act (D.C. Code § 42-1901.01 through § 42-1904.18) grants home buyers of condominiums 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 an applicable Washington DC real estate transaction should they not find details acceptable.
Non-Waivable Right: The statutory review period is a consumer protection measure designed to ensure the buyer has time to fully vet the association’s financials, rules, and potential liabilities. It cannot be waived or circumvented by a mutual agreement to “close early.”
New Construction
Public Offering Statement Review
Buyers of new construction condominiums are afforded a 15 day right of rescission from the date of receipt of the Public Offering Statement (POS), or after signing the purchase agreement, whichever occurs later.
The day of receipt of the Public Offering Statement (POS) package or ratification of the purchase contract, whichever is later, is not counted as part of the rescission period. The first day of the 15-day rescission period begins the following day.
Unlike the statutory provision for resale condominiums, the 15-day right of rescission period for new construction condominiums in Washington DC does not exclude holidays or weekends.
Note: Some online sources (LLM) state that the 15-day cancellation period for a new-construction condominiums does not exclude weekends or holidays; “There is one important caveat. Under general D.C. legal principles for calculating time, if your final (15th) day falls on a Saturday, Sunday, or a legal holiday, the deadline is extended to the next business day.”
Buyers should not rely on that statement. The D.C. Condominium Act provides no such extension; it says the purchaser may cancel “within 15 days” and elsewhere expressly uses “business days” when that is what the law intends. D.C. Superior Court Civil Rule 6 contains a next-business-day rule, but by its own terms it applies to a statutory period only when the statute “does not specify a method of computing time.” Buyers should therefore treat the new-construction cancellation period as 15 calendar days, including weekends and holidays.
If you have questions about the terms of your rescission period, refer to your purchase agreement and/or the D.C. Condo Act. You may also consult a real estate attorney for an opinion. Do not rely on Internet sources.
What Is A Public Offering Statement?
A public offering statement discloses the characteristics of the condominium and the units, and all unusual and material circumstances or features affecting it.
DC Code § 42–1904.02 provides that from the time of registration to the time that all units have been conveyed to purchasers, settlements for new construction condominiums can not occur unless the current public offering statement has been delivered to the purchaser and the 15 calendar day review period has expired without cancellation.
A public offering statement is not considered current unless any necessary amendment is incorporated or attached. If the purchaser elects to cancel, he or she may cancel by notice hand-delivered or sent by U.S. mail, return receipt requested, to the seller. The cancellation is “without penalty,” meaning and any deposit made by the purchaser is promptly refunded in its entirety.
What is Contained In A District of Columbia Public Offering Statement For The Purchase Of A New Construction Condominium?
A District of Columbia Public Offering Statement (POS) for a new construction condominium must fully and accurately disclose the physical, financial, and legal characteristics of the project under D.C. Code § 42-1904.04.
Instruments
A copy of the condominium instruments, including copies of the declaration, bylaws, and any rules and regulations for the association;
A copy of any management contract, lease of recreational areas, and any other contract or agreement substantially affecting the use or maintenance of, or access to all or any part of the condominium with a brief narrative statement of the effect of each such agreement upon a purchaser, the condominium unit owners and the condominium, and a statement of the relationship, if any, between the declarant and the managing agent or firm;
An initial one-year estimated operating budget, detailing projected monthly condo fees, anticipated utility consumption rates, and common element maintenance expenses;
Information
The developer’s name, address, and the form, date, and jurisdiction of organization, along with the address of each of its DC offices, and the names and addresses of all general partners (partnerships), all directors and owners of 10% or more of the beneficial interest in the stock of applicant if applicant is a corporation;
Names and addresses of the attorney primarily responsible for the preparation of the condominium documents, the general contractor, if any, all contractors primarily responsible for construction, reconstruction or renovation of the electrical, plumbing or mechanical systems or the roof of the condominium, and the architect and engineer primarily responsible for the design, construction or renovation of the condominium
The total number of units planned and offered in the condominium, along with plats and architectural plans;
Information regarding any existing liens, mortgages, or encumbrances affecting the property, and details on enforcement of association fees and defaults;
Specific disclosures regarding developer warranties on units and common elements.
Statements
A general statement of status of construction, project’s compliance with zoning, site plan and building permit regulations, source(s) of financing available and the estimated amount necessary to complete all improvements shown on the plats and plans as “not yet completed” or “not yet begun”
Projected date of completion of construction or renovation of the major amenities of the condominium
Significant terms of any encumbrances, easements, liens and matters of title affecting the condominium, significant terms of any financing offered by or through the declarant to purchasers of units in the condominium, provisions and any significant limitations of any warranties on the units and the common elements
Other required information: Read the full text
Resale
Resale Certificate Package
Commonly known as “condo documents,” this package contains the disclosures, reports, budget, bylaws and other documentation that inform buyers about the condition of the association and its rules and regulations.
Right Of Rescission For Resale Condominiums
Buyers of resale condominiums or cooperatives are afforded a 3 business day right of rescission beginning the day following the date of receipt of the resale package.
The 3-day clock begins the day after the buyer acknowledges receipt of the resale package. It counts only business days, explicitly excluding weekends and legal holidays. Settlement can legally take place only on or after the day immediately following the expiration of that window.
Non-Waivable Right: The statutory review period is a consumer protection measure designed to ensure the buyer has time to fully vet the association’s financials, rules, and potential liabilities. It cannot be waived or circumvented by a mutual agreement to “close early,” however the provision may be extended by agreement of all Parties.
The exact text of Code of the District of Columbia § 42–1904.11. reads: “(4) From and after the earlier of (i) the expiration of the 3-business-day period for review prescribed pursuant to paragraph (2) of this subsection, or an extension of the 3-business-day period agreed to by the parties in a signed writing, or (ii) conveyance under the contract, if the purchaser has not exercised the right to cancel, the contract shall not be cancellable by the purchaser under this subsection.
Code of the District of Columbia § 42–1904.11: Resale by unit owner; seller to obtain appropriate statements
The Seller is required to obtain required documents from the association and furnish them to the purchaser. If the mandated condominium instruments and certificate are not furnished to the purchaser on or prior to the 10th business day following the date of execution of the contract of sale by the purchaser, the purchaser may cancel the contract by giving notice in writing to the seller prior to receipt of the condominium instruments and certificate, but not after conveyance under the contract.
The purchaser receives any earnest money or other deposit paid without delay or deduction upon cancellation.
What’s Contained In the Resale Certificate Package?
Code of the District of Columbia § 42–1904.11.
A copy of the condominium instruments and a certificate including the following:
(1) Appropriate statements pursuant to § 42-1903.13(h) and, if applicable, § 42-1903.15, which need not to be in recordable form;
(2) A statement of any capital expenditures approved by the unit owners’ association planned at the time of the conveyance that are not reflected in the current operating budget disclosed under paragraph (4) of this subsection;
(3) A statement of the status and amount of any reserves for capital expenditures, contingencies, and improvements, and any portion of such reserves earmarked for any specified project by the executive board;
(4) A copy of the statement of financial condition for the unit owners’ association for the then most recent fiscal year for which such statement is available and the current operating budget, if any;
(5) A statement of the status of any pending suits or any judgments to which the unit owners’ association is a party;
(6) A statement setting forth what insurance coverage is provided for all unit owners by the unit owners’ association and a statement whether such coverage includes public liability, loss or damage, or fire and extended coverage insurance with respect to the unit and its contents;
(7) A statement that any improvements or alterations made to the unit, or the limited common elements assigned thereto, by the prior unit owner are not in violation of the condominium instruments;
(8) A statement of the remaining term of any leasehold estate affecting the condominium or the condominium unit and the provisions governing any extension or renewal thereof; and
(9) The date of issuance of the certificate.
Fee Simple
Statutory Right of Rescission For Resale of Single-Family Homes Governed by an HOA
In the District of Columbia, there’s no required right of rescission for the resale of a single-family home, including townhomes, governed by an association. These DC homes are generally governed by recorded covenants and the D.C. Nonprofit Corporation Act, and District law does not mandate an automatic post-receipt cancellation period for HOA packets.
Buyers and sellers may negotiate an explicit HOA contingency addendum into the purchase agreement giving the buyer a specific window (typically 3 to 10 days) to review HOA documents and cancel without penalty. This would be a stipulated in the form of an addendum to the purchase agreement, and require agreement between all parties to the contract.
Under D.C. Code § 42-1301, residential home sellers of one to four-unit properties must complete and deliver a standardized Seller’s Property Disclosure Statement detailing known material defects before a purchase contract is finalized, but the lack of a statutory HOA rescission provision means protection relies on the terms of the real estate contract.
If HOA documents aren’t provided prior to ratification of contract because the owner claims they don’t have a copy;
Buyers might request that the owner search for CC&Rs and bylaws on OTR’s Recorder of Deeds Online Public Records portal by entering the association or subdivision name;
Buyers might write offers ‘subject to’ examination and approval of the HOA’s financial records, rules and regulations within a specified period of time. These HOA documents must be made ‘reasonably available’ to the association’s home owners and their authorized agents.
Fee-simple properties within HOAs are governed by their recorded covenants, declarations and bylaws.
District of Columbia homeowner associations (HOAs) are regulated by the D.C. Nonprofit Corporation Act of 2010 if they choose to organize and incorporate as nonprofit entities.
District of Columbia homeowner associations are fully subject to federal and local fair housing laws, but only selectively bound by the Americans with Disabilities Act (ADA).
No District of Columbia government agency comprehensively regulates all fee-simple homeowner associations.
Cooperatives
Statutory Right of Rescission For Cooperatives In The District of Columbia
In the District of Columbia, there’s no statutory right of rescission for the resale of a cooperative unit as they fall outside the scope of the District of Columbia Condominium Act. Cooperatives are governed by corporate laws and individual cooperative association documents, which do not carry the same statutory resale rescission mandates. Purchase of shares in a cooperative corporation provides buyers with a proprietary lease to occupy a specific unit, not the purchase of the physical property.
Cooperatives are governed by corporate laws and individual cooperative association documents, which do not carry the same statutory resale rescission mandates.
It may be possible for purchasers of cooperative shares to negotiate a document review period as an addendum to the terms of their purchase agreement, which would require agreement of all parties to the transaction.
Resources
D.C. Nonprofit Corporation Act
Chapter 4. Nonprofit Corporations
Code of the District of Columbia | Chapter 19
Subchapter I. General Provisions.§§ 42-1901.01 – 42-1901.08
Subchapter II. Establishment of Condominiums.§§ 42-1902.01 – 42-1902.30
Subchapter III. Control and Governance of Condominiums.§§ 42-1903.01 – 42-1903.21
Subchapter IV. Registration and Offering of Condominiums.§§ 42-1904.01 – 42-1904.18
Virginia Rescission And Review
Virginia
Days For Review| All Properties
§ 55.1-2312. Cancellation of contract by purchaser
The purchaser may cancel the contract:
1. Within three [calendar] days, or up to seven days if extended by the ratified real estate contract, after the ratification date of the contract if the purchaser receives the resale certificate, whether or not complete pursuant to § 55.1-2310, or a notice that the resale certificate is unavailable on or before the date that the contract is ratified;
2. Within three [calendar] days, or up to seven days if extended by the ratified real estate contract, from the date the purchaser receives the resale certificate, whether or not complete pursuant to § 55.1-2310, or a notice that the resale certificate is unavailable if delivery occurs after the contract is ratified; or
3. At any time prior to settlement if the resale certificate is not delivered to the purchaser.
Significant Changes to Resale Certificates/Disclosure Packets Effective July 1, 2023
Passage of Senate Bill 1222 and House Bill 2235 in 2023 resulted in significant changes to requirements for providing of resale certificates and disclosure packets. All provisions for resale certificates (condominiums) and disclosure packets (property owners’ association) from the Virginia Condominium Act (§55.1-1900, et seq.), the Property Owners’ Association Act (§55.1-1800, et seq.), and the Virginia Real Estate Cooperative Act (§55.1-2100, et seq.) are now contained within a single act with all resale provisions: the Virginia Resale Disclosure Act (§55.1-2307, et seq.). This created several significant changes to the provisions for providing resale documents. Please refer to the legislation in its entirety for more information.
Virginia Resale Requirements
§ 55.1-2309. Resale certificate; delivery
A. The seller shall be required to obtain the resale certificate from the association and provide such resale certificate to the purchaser.
B. Unless exempt pursuant to § 55.1-2317, the association, the association’s managing agent, or any third party preparing the resale certificate on behalf of the association shall deliver such resale certificate within 14 days after a written request by a seller or seller’s agent.
C. The association, association’s managing agent, or any third party preparing the resale certificate on behalf of the association shall deliver the resale certificate to the seller, or to such person as the seller may direct, either printed or in a generally accepted electronic format as the seller may request.
D. The information contained in the resale certificate shall be current as of a date specified on the resale certificate. The seller or purchaser may request an updated resale certificate as provided in § 55.1-2311.
§ 55.1-2311. Updated resale certificate
If a resale certificate was issued more than 30 days but less than 12 months before settlement, the seller or the purchaser, upon proof of being the contract purchaser of the unit, may request an updated resale certificate. The updated resale certificate shall be delivered to the person requesting it, or as such person may direct, in the format requested. The updated resale certificate shall be delivered within 10 days after the written request.
The updated resale certificate shall contain current information for all items that may have changed from the original resale certificate or a statement that there are no changes.
A settlement agent authorized by the seller or purchaser may request a financial update and the association shall provide such information within three business days after the written request.
§ 55.1-2312. Cancellation of contract by purchaser.
The purchaser may cancel the contract:
Within three days, or up to seven days if extended by the ratified real estate contract, after the ratification date of the contract if the purchaser receives the resale certificate, whether or not complete pursuant to § 55.1-2310, or a notice that the resale certificate is unavailable on or before the date that the contract is ratified;
Within three days, or up to seven days if extended by the ratified real estate contract, from the date the purchaser receives the resale certificate, whether or not complete pursuant to § 55.1-2310, or a notice that the resale certificate is unavailable if delivery occurs after the contract is ratified; or
At any time prior to settlement if the resale certificate is not delivered to the purchaser.
Written notice of cancellation is to be provided to the seller in accordance with the terms of the contract. The purchaser has the burden to demonstrate delivery of the notice of cancellation.
If the unit is governed by more than one association, the timeframe for the purchaser’s right of cancellation shall run from the date of delivery of the last resale certificate.
Cancellation shall be without penalty, and the seller shall cause any deposit or escrowed funds to be returned promptly to the purchaser.
Read the full text for all provisions as worded by the Act.
§ 55.1-2313. Liability for resale certificate
A seller providing a resale certificate pursuant to § 55.1-2310 or 55.1-2311 shall not be liable to the purchaser for any erroneous information provided by the association and included in the certificate or for the failure or delay of the association to provide the resale certificate in a timely manner.
A purchaser shall not be liable for any unpaid assessment or fee greater than the amount set forth in the resale certificate, updated resale certificate, or financial update.
The association shall, as to the purchaser, be bound by the information provided in the resale certificate or updated resale certificate as to the amounts of current assessments, including any approved special or additional assessments, and any violation of the governing documents or rules and regulations as of the date of the resale certificate, updated resale certificate, or financial update unless the purchaser had actual knowledge that the contents of the resale certificate were in error.
Read the full Chapter for all provisions.
Chapter 23.1. Resale Disclosure Act
§ 55.1-2310. Resale certificate; form and contents.
A. The association shall include the completed resale certificate form, developed by the common interest community board pursuant to subdivision 3 of § 54.1-2350, with supporting documentation set out in the following order:
1. The name, address, and phone numbers of the preparer of the resale certificate and any managing agent of the association;
2. A copy of the governing documents and any rules and regulations of the association;
3. A statement disclosing any restraint on the alienability of the unit for which the resale certificate is being issued;
4. A statement of the amount and payment schedules of assessments and any unpaid assessments currently due and payable to the association;
5. A statement of any other fees due and payable by an owner of the unit;
6. A statement of any other entity or facility to which the owner of the unit being sold may be liable for assessments, fees, or other charges due to the ownership of the unit;
7. A statement of the amount and payment schedule of any approved additional or special assessment and any unpaid additional or special assessment currently due and payable;
8. A statement of any capital expenditures approved by the association for the current and succeeding fiscal years;
9. A statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the association for any specified projects;
10. The most recent balance sheet and income and expense statement, if any, of the association;
11. The current operating budget of the association;
12. The current reserve study, or a summary of such study;
13. A statement of any unsatisfied judgments against the association and the nature and status of any pending actions in which the association is a party and that could have a material impact on the association, the owners, or the unit being sold;
14. A statement describing any insurance coverage provided by the association for the benefit of the owners, including fidelity coverage, and any insurance coverage recommended or required to be obtained by the owners;
15. A statement as to whether the board has given or received written notice that any existing uses, occupancies, alterations, or improvements in or to the unit being sold or to the limited elements assigned thereto violate any provision of the governing documents or rules and regulations together with copies of any notices provided;
16. A statement as to whether the board has received written notice from a governmental agency of any violation of environmental, health, or building codes with respect to the unit being sold, the limited elements assigned thereto, or any other portion of the common interest community that has not been cured;
17. A copy of any approved minutes of meetings of the board held during the last six months;
18. A copy of any approved or draft minutes of the most recent association meeting;
19. A statement of the remaining term of any leasehold estate affecting a common area or common element, as those terms are defined in §§ 55.1-1800, 55.1-1900, and 55.1-2100, in the common interest community and the provisions governing any extension or renewal of such leasehold;
20. A statement of any limitation in the governing documents on the number or age of persons who may occupy a unit as a dwelling;
21. A statement setting forth any restriction, limitation, or prohibition on the right of an owner to display the flag of the United States, including reasonable restrictions as to the size, time, place, and manner of placement or display of such flag;
22. A statement setting forth any restriction, limitation, or prohibition on the right of an owner to install or use solar energy collection devices on the owner’s unit or limited element;
23. A statement setting forth any restriction, limitation, or prohibition on the size, placement, or duration of display of political, for sale, or any other signs on the property;
24. A statement identifying any parking or vehicle restriction, limitation, or prohibition in the governing documents or rules and regulations;
25. A statement setting forth any restriction, limitation, or prohibition on the operation of a home-based business that otherwise complies with all applicable local ordinances;
26. A statement setting forth any restriction, limitation, or prohibition on an owner’s ability to rent the unit;
27. In a cooperative, an accountant’s statement, if any was prepared, as to the deductibility for federal income tax purposes by the owner of real estate taxes and interest paid by the association;
28. A statement describing any pending sale or encumbrance of common elements;
29. A statement indicating any known project approvals currently in effect issued by secondary mortgage market agencies; and
30. Certification that the association has filed with the Common Interest Community Board the annual report required by law, which certification shall indicate the filing number assigned by the Common Interest Community Board and the expiration date of such filing.
Maximum Fees
Maximum fees for resale documents:
Consult a CPA and real estate attorney for review of your condominium or cooperative resale package, and review of the association’s financials
Disclaimer
We are not attorneys, legal experts, investment counselors, or CPAs. The content on this channel is presented for informational purposes only and derived from reliable sources, but should not be considered legal, financial, investment, transaction or real estate practice advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific real estate transaction. Homebuyers should read applicable D.C. law and code as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.