2006 Code of Virginia § 55-367 - Instruments

55-367. Instruments.

A. In order to create a time-share program for a time-share estate project,the developer shall execute a time-share instrument prepared and executed inaccordance with this chapter and record it in the clerk's office where suchtime-share project is located. The time-share instrument shall contain thefollowing:

1. The name of the time-share project, which name must include or be followedby a qualifying adjective or term outlined in 55-364.1;

2. The name of the locality and the state or situs in which the time-shareproject is situated;

3. The legal description, street address, or other description sufficient toidentify the time-share project;

4. A legally sufficient description of the real estate constituting thetime-share project;

5. A statement of the form of time-share program, i.e., whether it is atime-share estate or time-share use;

6. Identification of time periods by letter, name, number or combinationthereof;

7. Identification of time-shares and where applicable, the method wherebyadditional time-shares may be created or withdrawn;

8. The formula, fraction, or percentage of the common expenses and any votingrights assigned to each time-share;

9. Any restrictions on the use, occupancy, enjoyment, alteration, oralienation of time-shares;

10. The ownership interest, if any, in personal property available totime-share owners;

11. The program by which the managing entity, if any, will provide managementof the project;

12. The period for which units are designated and committed to the time-shareprogram and the property classification of the units at the expiration ofsuch period;

13. Any provision for amending the time-share instrument;

14. A description of the events, including but not limited to condemnationand damage or destruction, upon which the time-share program may or shall beterminated before the expiration of its full term and the consequences ofsuch termination, including but not limited to the manner in which thetime-share project or the proceeds from the disposition thereof shall be heldor distributed among owners;

15. A statement of whether or not the developer reserves the right to add toor delete any incidental benefit;

16. A statement of whether or not the developer reserves the right to add toor delete any alternative purchase; and

17. Such other matters as the developer deems appropriate.

B. In order to create a time-share program for a time-share use project, thedeveloper shall either (i) execute and record a time-share instrument asrequired by subsection A or (ii) execute a time-share instrument that takesthe form of and is a part of the contract which contains the informationrequired by subsection A.

C. If the developer explicitly reserves the right to develop additionaltime-shares, the time-share instrument shall also contain the following:

1. A legally sufficient description of all land which may be added to thetime-share project which shall be referred to as "additional land";

2. A statement outlining the order in which portions of the additional landmay be subjected to the exercise of each development right, or a statementthat no assurances are made in that regard;

3. A statement of the time limit upon which the option to develop shallexpire, together with a statement of the circumstances, if any, which willterminate that option prior to the expiration of the specified time limit;

4. A statement of the maximum number of units which may be added to thetime-share project, if known, and if not known, a statement to that effect;and

5. A statement of the property classification of the additional land if thedeveloper fails to exercise the development rights as reserved in thetime-share instrument.

(1981, c. 462; 1985, c. 517; 1994, c. 580; 1998, c. 460.)