2006 Code of Virginia § 55-498 - Application for registration; approval of uncompleted unit

55-498. Application for registration; approval of uncompleted unit.

A. An application for registration must contain the information and beaccompanied by any reasonable fees required by the agency's regulations. Adeclarant promptly shall file amendments to report any factual or expectedmaterial change in any document or information contained in his application.

B. If a declarant files with the agency a declaration or proposeddeclaration, or an amendment or proposed amendment to a declaration, creatingunits for which he proposes to convey cooperative interests before the unitsare substantially completed in the manner required by 55-495, the declarantshall also file with the agency:

1. A verified statement showing all costs involved in completing thebuildings containing those units;

2. A verified estimate of the time of completion of construction of thebuildings containing those units;

3. Satisfactory evidence of sufficient funds to cover all costs to completethe buildings containing those units;

4. A copy of the executed construction contract and any other contracts forthe completion of the buildings containing those units;

5. A 100 percent payment and performance bond covering the entire cost ofconstruction of the buildings containing those units;

6. Plans for the units;

7. If purchasers' funds are to be utilized for the construction of thecooperative, an executed copy of the escrow agreement with an escrow companyor financial institution authorized to do business within the state whichprovides that:

a. Disbursements of purchasers' funds may be made from time to time to payfor construction of the cooperative, architectural, engineering, finance andlegal fees, and other costs for the completion of the cooperative inproportion to the value of the work completed by the contractor as certifiedby an independent, registered architect or engineer, on bills submitted andapproved by the lender of construction funds or the escrow agent;

b. Disbursement of the balance of purchasers' funds remaining aftercompletion of the cooperative shall be made only when the escrow agent orlender receives satisfactory evidence that the period for filing mechanic'sand materialman's liens has expired, or that the right to claim those lienshas been waived, or that adequate provision has been made for satisfaction ofany claimed mechanic's or materialman's lien; and

c. Any other restriction relative to the retention and disbursement ofpurchasers' funds required by the agency; and

8. Any other materials or information the agency may require by itsregulations.

The agency may not register the units described in the declaration or theamendment unless the agency determines, on the basis of the materialsubmitted by the declarant and any other information available to the agency,that there is a reasonable basis to expect that the cooperative interests tobe conveyed will be completed by the declarant following conveyance.

(1982, c. 277.)