Make Sure Your Pay Your Proffers According to Real Estate Law

by Isaac Benmergui, Esq on March 7, 2014

This is real advice, specifically for home builders, when considering real estate law, solely in Virginia. It represents a real need to review the law and make sure you abide by it. This is a case involving ‘cash proffers,’ voluntary per-home fees for new construction paid by the home builder during the early development procedure. The reason for it is to account for infrastructure costs, such as….money-3

  • Roads
  • Schools
  • Law Enforcement
  • Libraries

The idea is this: the cash proffer prepares the county for the new construction requested by the party. In this case, the party is Windmill Meadows, LLC, submitting several cash proffers for residential construction on a per-dwelling unit for rezoning of property, which also included some per-dwelling cash payments. There’s just one problem: under the Virginia code, any cash payment made pursuant to a cash proffer can only be accepted upon final inspection of the property.

The Board of Supervisors for James City County saw that exact problem. Final inspections of the dwelling units were never completed to ensure that rezoning would be necessary provided that new construction met those legal guidelines. They filed suit with the district court, and the court agreed.

Furthermore, the matter was taken to the Supreme Court, and they affirmed it. Additionally, the Supreme Court stated that the section 15.2-2303.1:1(A) applied to all cash proffer payments due on or after the specified date, even when the proffers were agreed upon prior to the date in question. It’s due process. It must be followed.

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