2006 Code of Virginia § 55-79.90 - Public offering statement; condominium securities

55-79.90. Public offering statement; condominium securities.

A. A public offering statement shall disclose fully and accurately thecharacteristics of the condominium and the units therein offered and shallmake known to prospective purchasers all unusual and material circumstancesor features affecting the condominium. The proposed public offering statementsubmitted to the agency shall be in a form prescribed by its rules and shallinclude the following:

1. The name and principal address of the declarant and the condominium;

2. A general narrative description of the condominium stating the totalnumber of units in the offering; the total number of units planned to be soldand rented; the total number of units that may be included in the condominiumby reason of future expansion or merger of the project by the declarant;

3. Copies of the declaration and bylaws, with a brief narrative statementdescribing each and including information on declarant control, a projectedbudget for at least the first year of the condominium's operation (includingprojected common expense assessments for each unit), and provisions forreserves for capital expenditures and restraints on alienation;

4. Copies of any management contract, lease of recreational areas, or similarcontract or agreement affecting the use, maintenance or access of all or anypart of the condominium with a brief narrative statement of the effect ofeach such agreement upon a purchaser, and a statement of the relationship, ifany, between the declarant and the managing agent or firm;

5. A general description of the status of construction, zoning, site planapproval, issuance of building permits, or compliance with any other state orlocal statute or regulation affecting the condominium;

6. The significant terms of any encumbrances, easements, liens and matters oftitle affecting the condominium;

7. The significant terms of any financing offered by the declarant to thepurchaser of units in the condominium;

8. Provisions of any warranties provided by the declarant on the units andthe common elements, other than the warranty prescribed by subsection B of 55-79.79;

9. A statement that the purchaser may cancel the disposition within ten daysof delivery of the current public offering statement, or within ten days ofthe contract date of the disposition, whichever is later;

10. A statement of the declarant's obligation to complete improvements of thecondominium which are planned but not yet begun, or begun but not yetcompleted. Said statement shall include a description of the quality of thematerials to be used, the size or capacity of the improvements when material,and the time by which the improvements shall be completed. Any limitations onthe declarant's obligation to begin or complete any such improvements shallbe expressly stated;

11. If the units in the condominium are being subjected to a time-shareinstrument pursuant to 55-367, the information required to be disclosed by 55-374;

12. A statement listing the facilities or amenities which are defined ascommon elements or limited common elements in the condominium instruments,which are available to a purchaser for use. Such statement shall also includewhether there are any fees or other charges for the use of such facilities oramenities which are not included as part of any assessment, and the amount ofsuch fees or charges, if any, a purchaser may be required to pay;

13. A statement of any limitation on the number of persons who may occupy aunit as a dwelling; and

14. Additional information required by the agency to assure full and fairdisclosure to prospective purchasers.

B. The public offering statement shall not be used for any promotionalpurposes before registration of the condominium project and afterwards onlyif it is used in its entirety. No person may advertise or represent that theagency approves or recommends the condominium or disposition thereof. Noportion of the public offering statement may be underscored, italicized, orprinted in larger or heavier or different color type than the remainder ofthe statement unless the agency requires it.

C. The agency may require the declarant to alter or amend the proposed publicoffering statement in order to assure full and fair disclosure to prospectivepurchasers, and no change in the substance of the promotional plan or plan ofdisposition or development of the condominium may be made after registrationwithout notifying the agency and without making appropriate amendment of thepublic offering statement. A public offering statement is not current unlessall amendments are incorporated.

D. If an interest in a condominium is currently registered with theSecurities and Exchange Commission of the United States, a declarantsatisfies all requirements relating to the preparation of a public offeringstatement in this chapter if he delivers to the purchaser and files with theagency a copy of the public offering statement filed with the Securities andExchange Commission. An interest in a condominium is not a security under theprovisions of the Securities Act ( 13.1-501 et seq.).

(1974, c. 416; 1977, c. 428; 1986, c. 324; 1996, cc. 281, 888; 1999, c. 560;2006, c. 646.)