TITLE 18. PROFESSIONAL AND OCCUPATIONALLICENSING
REGISTRAR'S NOTICE: The
Common Interest Community Board is claiming an exemption from Article 2 of the
Administrative Process Act in accordance with § 2.2-4006 A 4 a of the Code of
Virginia, which excludes regulations that are necessary to conform to changes
in Virginia statutory law or the appropriation act where no agency discretion
is involved. The board will receive, consider, and respond to petitions by any
interested person at any time with respect to reconsideration or revision.
Title of Regulation: 18VAC48-30. Condominium
Regulations (amending 18VAC48-30-120, 18VAC48-30-670).
Statutory Authority: § 54.1-2349 of the Code of
Virginia.
Effective Date: June 1, 2020.
Agency Contact: Trisha Henshaw, Executive Director,
Common Interest Community Board, Department of Professional and Occupational
Regulation, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804)
367-8510, FAX (866) 490-2723, or email cic@dpor.virginia.gov.
Summary:
The amendments (i) remove the requirement regarding
registering a trade or fictitious name with the clerk of court in the locality
where the business is conducted to conform the regulation to Chapter 594 of the
2017 Acts of Assembly, which became effective January 1, 2020, and (ii) make a
technical amendment.
18VAC48-30-120. Prerequisites for registration.
The following provisions are prerequisites for registration
and are supplementary to the provisions of § 55.1-1977 of the Code of Virginia.
A. 1. The declarant shall own or have the right
to acquire an estate in the land constituting or to constitute the condominium
that is of at least as great a degree and duration as the estate to be conveyed
in the condominium units.
B. 2. The condominium instruments must be
adequate to bring a condominium into existence upon recordation except that the
certification requirements of § 55.1-1920 of the Code of Virginia need not
be complied with as a prerequisite for registration. This subsection does not
apply to condominium instruments that may be recorded after the condominium has
been created.
C. 3. The declarant shall have filed with the
board reasonable evidence of its financial ability to complete all proposed
improvements on the condominium. Such evidence may include (i) financial
statements and a signed affidavit attesting that the declarant has sufficient
funds to complete all proposed improvements on the condominium and that the
funds will be used for completion of the proposed improvements or (ii) proof of
a commitment of an institutional lender to advance construction funds to the
declarant and, to the extent that any such commitments will not furnish all the
necessary funds, other evidence, satisfactory to the board, of the availability
to the declarant of necessary funds. A lender's commitment may be subject to
such conditions, including registration of the condominium units and presale
requirements, as are normal for loans of the type and as to which nothing
appears to indicate that the conditions will not be complied with or fulfilled.
1. a. In the case of a condominium located in
Virginia, "proposed improvements" are improvements that are not yet
begun or not yet complete and that the declarant is affirmatively and
unconditionally obligated to complete under §§ 55.1-1920 and 55.1-1930 B
of the Code of Virginia and applicable provisions of the condominium
instruments or that the declarant would be so obligated to complete if plats
and plans filed with the board in accordance with 18VAC48-30-140 A were
recorded.
2. b. In the case of a condominium located
outside of Virginia, "proposed improvements" are improvements that
are not yet begun or not yet complete and that the declarant represents,
without condition or limitation, will be built or placed in the condominium.
D. 4. The current and planned condominium
marketing activities of the declarant shall comply with § 18.2-216 of the
Code of Virginia, 18VAC48-30-80, and 18VAC48-30-660.
E. 5. The declarant shall have filed with the
board (i) a proposed public offering statement that complies with this chapter
and subsection A of § 55.1-1976 of the Code of Virginia and, if applicable,
subsection B of § 55.1-1982 of the Code of Virginia; (ii) a substituted public
offering statement that complies with this chapter; or (iii) a prospectus that
complies with this chapter.
F. 6. Declarants may be organized as individuals
or firms. Firms shall be organized as business entities under the laws of the
Commonwealth of Virginia or otherwise authorized to transact business in
Virginia. Firms shall register any trade or fictitious names with the State
Corporation Commission or the clerk of court in the jurisdiction where the
business is to be conducted in accordance with §§ 59.1-69 through
59.1-76 Chapter 5 of Title 59.1 (§ 59.1-69 et seq.) of the Code
of Virginia before submitting an application to the board.
18VAC48-30-670. Condominium advertising standards.
A. No promise, assertion, representation, or statement of
fact or opinion in connection with a condominium marketing activity shall be
made that is false, inaccurate, or misleading by reason of inclusion of an
untrue statement of a material fact or omission of a statement of a material
fact relative to the actual or intended characteristics, circumstances, or
features of the condominium or a condominium unit.
B. No promise, assertion, representation, or statement of
fact or opinion made in connection with a condominium marketing activity shall
indicate that an improvement will be built or placed on the condominium unless
the improvement is a proposed improvement within the meaning of subsection C
subdivision 3 of 18VAC48-30-120.
C. No promise, assertion, representation, or statement of
fact or opinion made in connection with a condominium marketing activity and
relating to a condominium unit not registered shall, by its express terms,
induce, solicit, or encourage a prospective purchaser to leave Virginia for the
purpose of executing a contract for sale or lease of the condominium unit or
performing some other act that would create or purport to create a legal or
equitable interest in the condominium unit other than a security interest in or
a nonbinding reservation of the condominium unit.
NOTICE: Forms used in
administering the regulation have been filed by the agency. The forms are not
being published; however, online users of this issue of the Virginia Register
of Regulations may click on the name of a form with a hyperlink to access it.
The forms are also available from the agency contact or may be viewed at the
Office of the Registrar of Regulations, 900 East Main Street, 11th Floor,
Richmond, Virginia 23219.
FORMS (18VAC48-30)
Condominium Registration Application, A492-0517REG-v4
(rev. 1/2020)
Condominium
Registration Application, A492-0517REG-v5 (rev. 4/2020)
Condominium Registration Application - Exhibit G -
Bond to Insure Payment of Assessments, Sample Form, A492-0517BOND-v4 (rev.
1/2020)
Condominium Registration Application - Exhibit G -
Irrevocable Letter of Credit, Sample Form, A492-0517LOC-v4 (rev. 1/2020)
Declarant Annual Report - Condominium,
A492-0517ANRPT-v4 (rev. 1/2020)
Condominium Bond/Letter of Credit Verification
Form, A492-0517BNDLOC-v2 (rev. 1/2020)
VA.R. Doc. No. R20-6307; Filed March 19, 2020, 1:38 p.m.