Real Estate - Module 3

Virginia Principles and Practice
of Real Estate
Table of Contents
Module Three: Specific Acts Pertaining to Real Estate Practice ................................ 3

Module Description ....................................................................................................... 3
Learning Objectives ....................................................................................................... 5
Key Terms ....................................................................................................................... 5
Lesson 1: The Virginia Residential Property Disclosure Act....................................... 8
Lesson Topics ................................................................................................................. 8
Exemptions to The Virginia Residential Property Disclosure Act .............................. 9
Residential Property Disclosure Statement .............................................................. 11
Required Disclosures ................................................................................................... 15
Advertising by Licensees ............................................................................................. 22
Lesson 2: Virginia Common Interest Communities Act ........................................... 25
Lesson Introduction ..................................................................................................... 25
The Common Interest Community ............................................................................ 26
The Common Interest Community Manager’s Duties.............................................. 27
Administering the Regulations ................................................................................... 27
Lesson Summary ......................................................................................................... 28
Lesson 3: Virginia Condominium Act and Regulations ............................................ 29
Useful Definitions ........................................................................................................ 30
Condominium Declaration.......................................................................................... 30
Resale by Purchaser .................................................................................................... 33
Suspension of Services for Failure to Pay Assessments .......................................... 40
Alterations within Units ............................................................................................... 42
Display of the flag of the United States ..................................................................... 42
Lien for Assessments................................................................................................... 43
Notice of Sale Under Deed of Trust ........................................................................... 44
Rental of Units .............................................................................................................. 44
Lesson Summary ......................................................................................................... 45
Lesson 4: Virginia Real Estate Time-Share Act and Regulations.............................. 46
Creation of a Time-Share ............................................................................................ 47
Types of Time-Share Ownership ................................................................................ 47
Public Offering Statement ........................................................................................... 48
Right to Rescind ........................................................................................................... 50
Escrow of Deposits ...................................................................................................... 50
Advertisements ............................................................................................................ 51
Transfer of Control ...................................................................................................... 52
Resale of Time-Share ................................................................................................... 54
Statute of limitations; actions; limitation on rescission rights ................................ 55
Lesson Summary ......................................................................................................... 56
Lesson 5: Virginia Property Owner’s Association Act ............................................... 57
Contract Disclosure Statement; Right of Cancellation ............................................. 58
Contents of Association Disclosure Packet ............................................................... 59
Fees for Disclosure Packet .......................................................................................... 63
Rental of Lots ............................................................................................................... 68
Lien for Assessments................................................................................................... 69
Notice of Sale Under Deed of Trust ........................................................................... 70
Common areas; Notice of Pesticide Application ...................................................... 70
Display of the flag of the United States ..................................................................... 70
Home-based Businesses Permitted ........................................................................... 71
Lesson Summary ......................................................................................................... 71
Lesson 6: Virginia Residential Landlord and Tenant Act .......................................... 72
General Provisions ....................................................................................................... 73
Landlord Obligations ................................................................................................... 78
Tenant Obligations ...................................................................................................... 83
Tenant Remedies ......................................................................................................... 85
Landlord Remedies ...................................................................................................... 88
Lesson Summary ......................................................................................................... 92
Lesson 7: Virginia Underground Utility Damage Prevention Act ............................ 93
Exemptions; Routine Maintenance ............................................................................ 94
Notification Required Prior to Excavation or Demolition ........................................ 95
Duties of Notification Center Upon Notification by Person Intending to Excavate95
Liability of Operator and Excavator; Penalties .......................................................... 96
Lesson Summary ......................................................................................................... 96
Module Three: Specific Acts Pertaining to Real
Estate Practice
Module Description
This module will explore some of the most important laws relating to real estate in
Virginia. First we will examine the provisions of The Virginia Residential Property
Disclosure Act which apply only with respect to transfers by sale, exchange, installment
land sales contract, or lease with option to buy residential real property. This law
governs the information owners must disclose to prospective purchasers of real property.
We then discuss the Virginia Common Interest Communities Act. This Act created a
Board which is a separate agency within the Department of Professional and
Occupational Regulation. The board is responsible for administering Virginia's
common interest community and property registration laws.
Virginia Principles and Practices of Real Estate 3

The next law we will be going over is The Virginia Condominium Act which is regulated
by the Virginia Common Interest Community Board. This Act covers the rules and
regulations for condominiums in the state of Virginia. The Time-Share Act and the
Property Owner’s Association Act are also regulated by the Common Interest
Community Board. We will be reviewing all the laws relating to time-shares and
property owners associations.
The Virginia Residential Landlord and Tenant Act is discussed in detail, covering the
responsibilities of landlords and tenants. Anyone who rents or manages a property
in Virginia should be familiar with this important law. Last but not least is the Virginia
Underground Utility Damage Prevention Act. This law provides the requirements that
must be followed when the property is excavated. The purpose of the law is to
protect utility companies, contractors, excavators and the general public through the
prevention of damage to underground utilities.

Learning Objectives
Upon completion of this module, you will be able to:
Disclose the requirements of the Virginia Residential Property Disclosure Act.

Define the purpose of the Virginia Common Interest Communities Act.
Examine the Virginia Condominium Act and Regulations.
Explore the Virginia Real Estate Time-Share Act and Regulations.
Provide an overview of the Virginia Property Owner’s Association Act.
List responsibilities outlined in the Virginia Residential Landlord and Tenant
Act.
Explain the Virginia Underground Utility Damage Prevention Act.
Key Terms
Advertising: All forms of representation, promotion and solicitation disseminated in
any manner and by any means of communication to consumers for any purpose
related to licensed real estate activity.
Application fee: Any nonrefundable fee, which is paid by a tenant to a landlord or

managing agent for the purpose of being considered as a tenant for a dwelling unit.
Condominium: Real property which can include single family dwellings, attached
dwellings, multilevel dwellings, office units, and other types of dwellings where the
undivided interests in the common elements are vested in the unit owners.
Common interest community: A community located within the Commonwealth

subject to a declaration which contains lots, at least some of which are residential or
occupied for recreational purposes, and common areas to which a person, by virtue
of his ownership of a lot, is a member of an association and is obligated to pay
assessments provided for in a declaration.

Common area: Property within a development which is owned, leased or required
by the declaration to be maintained or operated by a property owners' association
for the use of its members and designated as a common area in the declaration.
Common elements: All portions of the condominium other than the units.
Common interest community manager: Means a person or business entity,

including but not limited to a partnership, association, corporation, or limited liability
company, who, for compensation or valuable consideration, provides management
services to a common interest community.
Declarant: Any person, or group of persons acting in concert, that offers to sell his
or its interest in a condominium unit not previously sold before. This would be the
developer or owner of the condominium.
Declaration: A document, recorded among the land records of the county or city in
which the development is located, that imposes an annual assessment on the owners
in the community to pay for maintenance and other services for all owners in the
community.
Disclosure packet: Includes the documents that the buyer receives when
purchasing real property in a Homeowner’s Association.
Excavate or excavation: Any operation in which earth, rock, or other material in the
ground is moved, removed, or otherwise displaced by means of any tools,
equipment, or explosives and includes, without limitation, grading, trenching,
digging, ditching, dredging, drilling, augering, tunneling, scraping, cable or pipe
plowing and driving, wrecking, razing, rendering, moving, or removing any structure
or mass of material.

Landlord: Owner of the dwelling unit or the building which is being rented to a
tenant.
Notice: Information given in writing by either regular mail or hand delivery, with the
sender retaining sufficient proof of having given such notice.
Notification center: An organization whose membership is open to all operators of

underground facilities located within the notification center's designated service
area, which maintains a database, provided by its member operators, that includes
the geographic areas in which its member operators desire transmissions of notices
of proposed excavation, and which has the capability to transmit, within one hour of
receipt, notices of proposed excavation to member operators by teletype, telecopy,
personal computer, or telephone.
Resale Certificate: Includes the documents that the buyer receives when
purchasing a resale condominium.
Sublease: The transfer by any tenant of any, but not all, interests created by a rental
agreement.
Time-share estate: Right to occupy a unit or any of several units during five or more
separated time periods over a period of at least five years, including renewal options,
coupled with a freehold estate or an estate for years in a time-share project or a
specified portion thereof.
Time-share use: The right to occupy a time-share unit or any of several time-share
units during five or more separated time periods over a period of at least five years,
including renewal options, not coupled with a freehold estate or an estate for years
in a time-share project or a specified portion thereof.

Lesson 1: The Virginia Residential Property
Disclosure Act
Lesson Topics
This lesson focuses on the following topics:
Introduction
Inartistic Information vs. Artistic Information
Approaches to Artistic Information: Ethos, Pathos, and Logos
Rhetoric and Effective Communication

As set forth in § 55-517 the provisions of The Virginia Residential Property Disclosure
Act apply only with respect to transfers by sale, exchange, installment land sales
contract, or lease with option to buy residential real property consisting of not less
than one nor more than four dwelling units, whether or not the transaction is with
the assistance of a licensed real estate broker or salesperson.
The Virginia Residential Property Disclosure Act (Title 55, Chapter 27 of the Code of
Virginia) governs the information owners must disclose to prospective purchasers of real
property. Certain transfers of residential property are excluded from the requirements
(see § 55-518).
This lesson focuses on the following additional topics:
Property Disclosure Form (Chesapeake Bay Act)

Aircraft Noise/Crash Disclosure
Septic Disclosure
Megan’s Law
Stigmatized Properties
Advertising
Exemptions to The Virginia Residential Property Disclosure Act

As set forth in § 55-518, the following are specifically excluded from the provisions of
the Virginia Residential Property Disclosure Act:
1. Transfers pursuant to court order including, but not limited to, transfers
ordered by a court in administration of an estate, transfers pursuant to a writ
of execution, transfers by foreclosure sale or by a deed in lieu of a foreclosure,
transfers by a trustee in bankruptcy, transfers by eminent domain, and
transfers resulting from a decree for specific performance. Also, transfers by
an assignment for the benefit of creditors pursuant to Chapter 9 (§ 55-156 et

seq.) and transfers pursuant to escheats pursuant to Chapter 9 (§ 55-156 et
seq.).
2. Transfers to a beneficiary of a deed of trust pursuant to a foreclosure sale
or by a deed in lieu of foreclosure, or transfers by a beneficiary under a deed
of trust who has acquired the real property at a sale conducted pursuant to a
foreclosure sale under a deed of trust or has acquired the real property by a
deed in lieu of foreclosure.
3. Transfers by a fiduciary in the course of the administration of a decedent's
estate, guardianship, conservatorship, or trust.
4. Transfers from one or more co-owners solely to one or more other co-
owners.
5. Transfers made solely to any combination of a spouse or a person or
persons in the lineal line of consanguinity of one or more of the transferors.
6. Transfers between spouses resulting from a decree of divorce or a property
settlement stipulation pursuant to the provisions of Title 20.
7. Transfers made by virtue of the record owner's failure to pay any federal,
state, or local taxes.
8. Transfers to or from any governmental entity or public or quasi-public
housing authority or agency.
9. Transfers involving the first sale of a dwelling; provided, that this exemption
shall not apply to the disclosures required by § 55-519.1.
Notwithstanding the provisions of subdivision 9 of this section, the builder of a new

dwelling shall disclose in writing to the purchaser thereof all known material defects
which would constitute a violation of any applicable building code. In addition, for
property that is located wholly or partially in any locality comprising Planning District
15, the builder or owner, if the builder is not the owner of the property, shall disclose
in writing whether the builder or owner has any knowledge of:

(i) whether mining operations have previously been conducted on the
property or
(ii) the presence of abandoned mines, shafts, or pits, if any. The disclosures
required by this subsection shall be made by a builder or owner when
selling a completed dwelling, before acceptance of the purchase contract
or
(iii) when selling a dwelling before or during its construction, after issuance of
a certificate of occupancy. Such disclosure shall not abrogate any warranty
or any other contractual obligations the builder or owner may have to the
purchaser. The disclosure required by this subsection may be made on the
disclosure form described in § 55-519. If no defects are known by the
builder to exist, no written disclosure is required by this subsection.
Residential Property Disclosure Statement

As set forth in § 55-517, the owner of the residential real property shall furnish to a
purchaser a residential property disclosure statement in a form provided by the
Real Estate Board. By delivering this disclosure statement
the owner makes the following representations as to the real property:
Condition
The owner makes no representations or warranties as to the condition of the real
property or any improvements thereon, or with regard to any covenants and
restrictions as may be recorded among the land records affecting the real property
or any improvements thereon, and purchasers are advised to exercise whatever due
diligence a particular purchaser deems necessary including obtaining a home
inspection, as defined in § 54.1-500, in accordance with the terms and conditions as
may be contained in the real estate purchase contract, but in any event, prior to
settlement pursuant to such contract.

Adjacent Parcels
The owner makes no representations with respect to any matters that may pertain
to parcels adjacent to the subject parcel, including zoning classification or permitted
uses of adjacent parcels, and purchasers are advised to exercise whatever due
diligence a particular purchaser deems necessary with respect to adjacent parcels in
accordance with terms and conditions as may be contained in the real estate
purchase contract, but in any event, prior to settlement pursuant to such contract.
Historic District Ordinance

The owner makes no representations to any matters that pertain to whether the
provisions of any historic district ordinance affect the property and purchasers are
advised to exercise whatever due diligence a particular purchaser deems necessary
with respect to any historic district designated by the locality pursuant to § 15.2-2306,
including review of any local ordinance creating such district or any official map
adopted by the locality depicting historical districts, in accordance with terms and
conditions as may be contained in the real estate purchase contract, but in any event,
prior to settlement pursuant to such contract.
Resource Protection Areas

The owner makes no representations with respect to whether the property contains
any resource protection areas established in an ordinance implementing the
Chesapeake Bay Preservation Act (§ 62.1-44.15:67 et seq.) adopted by the locality
where the property is located pursuant to § 62.1-44.15:74, and that purchasers are
to determine whether the provisions of any such ordinance affect the property,
including review of any official map adopted by the locality depicting resource
protection areas, in accordance with terms and conditions as may be contained in
the real estate purchase contract, but in any event, prior to settlement pursuant to
such contract.

Megan’s Law-Sexual Offenders
The owner makes no representations with respect to information on any sexual
offenders registered under Chapter 23 of Title 19.2, and that purchasers are advised
to exercise whatever due diligence they deem necessary with respect to such
information, in accordance with terms and conditions as may be contained in the
real estate purchase contract, but in any event, prior to settlement pursuant to such
contract.
Dam Break Inundation Zones

The owner makes no representations with respect to whether the property is within
a dam break inundation zone and that purchasers are advised to exercise whatever
due diligence they deem necessary with respect to whether the property resides
within a dam break inundation zone, including a review of any map adopted by the
locality depicting dam break inundation zones.
Storm Water Detention

The owner makes no representations with respect to the presence of any storm
water detention facilities located on the property, or any maintenance agreement for
such facilities, and purchasers are advised to exercise whatever due diligence they
deem necessary to determine the presence of any storm water detention facilities
on the property, or any maintenance agreement for such facilities, in accordance
with terms and conditions as may be contained in the real estate purchase contract,
but in any event, prior to settlement pursuant to such contract.

Septic Disclosure-Water Waste System
The owner makes no representations with respect to the presence of any wastewater
system, including the type or size thereof or associated maintenance responsibilities
related thereto, located on the property and purchasers are advised to exercise
whatever due diligence they deem necessary to determine the presence of any
wastewater system on the property and the costs associated with maintaining,
repairing, or inspecting any wastewater system, including any costs or requirements
related to the pump-out of septic tanks, in accordance with terms and conditions as
may be contained in the real estate purchase contract, but in any event, prior to
settlement pursuant to such contract.
Solar Energy Collection Devices

The owner makes no representations with respect to any right to install or use solar
energy collection devices on the property.
Special Flood Hazard Areas

The owner makes no representations with respect to whether the property is located
in one or more special flood hazard areas and purchasers are advised to exercise
whatever due diligence they deem necessary, including:
(i) obtaining a flood certification or mortgage lender

determination of whether the property is located in one or
more special flood hazard areas,
(ii) review of any map depicting special flood hazard areas, and
(iii) whether flood insurance is required, in accordance with terms
and conditions as may be contained in the real estate
purchase contract, but in any event, prior to a settlement
pursuant to such contract.

Conservation or Other Easements
The owner makes no representations with respect to whether the property is
subject to one or more conservation or other easements and that purchasers are
in accordance with terms and conditions as may be contained in the real estate
purchase contract, but in any event, prior to settlement pursuant to such contract.
Community Development Authority

The owner makes no representations with respect to whether the property is
subject to a community development authority approved by a local governing body
pursuant to Article 6 (§ 15.2-5152 et seq.) of Chapter 51 of Title 15.2 and that
purchasers are advised to exercise whatever due diligence a particular purchaser
deems necessary in accordance with terms and conditions as may be contained in
the real estate purchase contract, including determining whether a copy of the
resolution or ordinance has been recorded in the land records of the circuit court
for the locality in which the community development authority district is located for
each tax parcel included in the district pursuant to § 15.2-5157, but in any event,
prior to settlement pursuant to such contract.
Required Disclosures
Aircraft Noise/Crash Disclosure

As set forth in § 55-519.1, the owner of residential real property located in any locality
in which a military air installation is located shall disclose to the purchaser whether
the subject parcel is located in a noise zone or accident potential zone, or both, if so
designated on the official zoning map by the locality in which the property is located
on a form provided by the Real Estate Board. Such disclosure shall state the specific
noise zone or accident potential zone, or both, in which the property is located
according to the official zoning map.

Defective Drywall
As set forth in § 55-519.2, notwithstanding the exemptions in § 55-518, if the owner
of a residential dwelling unit has actual knowledge of the existence of defective
drywall in such dwelling unit, the owner shall provide to a prospective purchaser a
written disclosure that the property has defective drywall. Such disclosure shall be
provided to the purchaser on a form provided by the Virginia Real Estate Board and
otherwise in accordance with this chapter. For purposes of this section, "defective
drywall" means all defective drywall as defined in § 36-156.1.
Tourism Activity Zone

As set forth in § 55-519.3, an owner of residential property located partially or wholly
within a designated tourism activity zone established pursuant to § 15.2-982 may
disclose in writing to any prospective purchaser or lessee of the property that the
subject property is located within a tourism activity zone, with a description of
potential impacts associated with the parcel's location in a tourism activity zone,
including impacts caused by special events, parades, temporary street closures, and
indoor and outdoor entertainment activities.
Property Previously Used to Manufacture Methamphetamine

As set forth in § 55-519.4 notwithstanding the exemptions in § 55-518, if the owner
of a residential dwelling unit has actual knowledge that such residential property was
previously used to manufacture methamphetamine and has not been cleaned up in
accordance with the guidelines established pursuant to § 32.1-11.7 and the
applicable licensing provisions of Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1, the
owner shall provide to a prospective purchaser a written disclosure that so states.
Such disclosure shall be provided to the purchaser on a form provided by the Virginia
Real Estate Board and otherwise in accordance with this chapter.
Time for Disclosure; Termination of Contract.

As set forth in § 55-520;

A. The owner of residential real property subject to this chapter shall deliver to
the purchaser the written disclosure statement required by this chapter prior
to the acceptance of a real estate purchase contract or otherwise be subject
to the provisions of subsection B of this section. For the purposes of this
chapter, "acceptance" means the full execution of a real estate purchase
contract by all parties. The residential property disclosure statement may be
included in the real estate purchase contract, in an addendum thereto, or in a
separate document.
B. If the disclosure statement required by this chapter is delivered to the
purchaser after the acceptance of the real estate purchase contract, the
purchaser's sole remedy shall be to terminate the real estate purchase
contract at or prior to the earliest of
(i) three days after delivery of the disclosure statement in person;
(ii) five days after the postmark if the disclosure statement is deposited
in the United States mail, postage prepaid, and properly addressed to
the purchaser;
(iii) settlement upon purchase of the property;
(iv) occupancy of the property by the purchaser;
(v) the purchaser making written application to a lender for a mortgage
loan where such application contains a disclosure that the right of
termination shall end upon the application for the mortgage loan; or
(vi) the execution by the purchaser after receiving the disclosure
statement required by this chapter of a written waiver of the
purchaser's right of termination under this chapter contained in writing
separate from the real estate purchase contract.
In order to terminate a real estate purchase contract when permitted

by this chapter, the purchaser must, within the times required by this
chapter, give written notice to the owner by one of the following
methods:
1. Hand delivery;

2. United States mail, postage prepaid, provided the sender
retains sufficient proof of mailing, which may be either a United
States postal certificate of mailing or a certificate of service
prepared by the sender confirming such mailing;
3. Electronic means provided the sender retains sufficient proof
of the electronic delivery, which may be an electronic receipt of
delivery, a confirmation that the notice was sent by facsimile, or
a certificate of service prepared by the sender confirming the
electronic delivery; or
4. Overnight delivery using a commercial service or the United
States Postal Service.
If the purchaser terminates a real estate purchase contract in compliance with

this chapter, the termination shall be without penalty to the purchaser, and
any deposit shall be promptly returned to the purchaser.
C. Notwithstanding the provisions of subsection B of § 55-524, no purchaser of

residential real property located in a noise zone designated on the official
zoning map of the locality as having a day-night average sound level of less
than 65 decibels shall have the right to terminate a real estate purchase
contract pursuant to this section for failure of the property owner to timely
provide any disclosure required by § 55-519.1.
Owner liability
A. As set forth in § 55-521, except with respect to the disclosures required by
§ 55-519.1, the owner shall not be liable for any error, inaccuracy or omission
of any information delivered pursuant to this chapter if:
the error, inaccuracy or omission was not within the actual knowledge of the
owner or was based on information provided by public agencies or by other
persons providing information that is required to be disclosed pursuant to

this chapter, or the owner reasonably believed the information to be correct,
and
the owner was not grossly negligent in obtaining the information from a
third party and transmitting it. The owner shall not be liable for any error,
inaccuracy, or omission of any information required to be disclosed by § 55-
519.1 if the error, inaccuracy, or omission was the result of information
provided by an officer or employee of the locality in which the property is
located.
B. The delivery by a public agency or other person, as described in subsection C

below, of any information required to be disclosed by this chapter to a
prospective purchaser shall be deemed to comply with the requirements of
this chapter and shall relieve the owner of any further duty under this chapter
with respect to that item of information.
C. The delivery by the owner of a report or opinion prepared by a licensed

engineer, land surveyor, geologist, wood destroying insect control expert,
contractor or home inspection expert, dealing with matters within the scope
of the professional's license or expertise, shall satisfy the requirements of this
chapter if the information is provided to the prospective purchaser pursuant
to a request therefor, whether written or oral. In responding to such a request,
an expert may indicate, in writing, an understanding that the information
provided will be used in fulfilling the requirements of this chapter and, if so,
shall indicate the required disclosures, or portions thereof, to which the
information being furnished is applicable. Where such a statement is
furnished, the expert shall not be responsible for any items of information, or,
portions thereof, other than those expressly set forth in the statement.

Change in Circumstances
As set forth in § 55-522, if the information disclosed in accordance with this chapter
is subsequently rendered or discovered to be inaccurate as a result of any act,
occurrence, information received, circumstance or agreement subsequent to the
delivery of the required disclosures, the inaccuracy resulting therefrom does not
constitute a violation of this chapter.
However, at or before settlement, the owner shall be required to disclose any

material change in the disclosures made relative to the property. If, at the time the
disclosures are required to be made, an item of information required to be disclosed
is unknown or not available to the owner, the owner may state that the information
is unknown or may use an approximation of the information, provided the
approximation is clearly identified as such, is reasonable, is based on the actual
knowledge of the owner, and is not used for the purpose of circumventing or evading
this chapter.
Duties of Real Estate Licensees

As set forth in § 55-523, a real estate licensee representing an owner of residential
real property as the listing broker has a duty to inform each such owner represented
by that licensee of the owner's rights and obligations under this chapter.
A real estate licensee representing a purchaser of residential real property or, if the
purchaser is not represented by a licensee, the real estate licensee representing an
owner of residential real estate and dealing with the purchaser has a duty to inform
each such purchaser of the purchaser's rights and obligations under this chapter.
Provided a real estate licensee performs those duties, the licensee shall have no
further duties to the parties to a residential real estate transaction under this
chapter, and shall not be liable to any party to a residential real estate transaction
for a violation of this chapter or for any failure to disclose any information regarding
any real property subject to this chapter.

Stigmatized Property
As set forth in § 55-524;
A. Notwithstanding any other provision of this chapter or any other statute or
regulation, no cause of action shall arise against an owner or a real estate
licensee for failure to disclose that an occupant of the subject real property,
whether or not such real property is subject to this chapter, was afflicted with
human immunodeficiency virus (HIV) or that the real property was the site of:
1. An act or occurrence which had no effect on the physical structure of
the real property, its physical environment, or the improvements
located thereon; or
2. A homicide, felony, or suicide.
B. The purchaser's remedies hereunder for the failure of an owner to comply

with the provisions of this chapter are as follows:
1. If the owner fails to provide the disclosure statement required by this
chapter, the contract may be terminated subject to the provisions of
subsection B of § 55-520.
2. In the event the owner fails to provide the disclosure required by § 55-
519.1, or the owner misrepresents, willfully or otherwise, the
information required in such disclosure, except as result of information
provided by an officer or employee of the locality in which the property
is located, the purchaser may maintain an action to recover his actual
damages suffered as the result of such violation. Notwithstanding the
provisions of this subdivision, no purchaser of residential real property
located in a noise zone designated on the official zoning map of the
locality as having a day-night average sound level of less than 65
decibels shall have a right to maintain an action for damages pursuant
to this section.
C. Any action brought under this subsection shall be commenced within one year
of the date the purchaser received the disclosure statement.

If no disclosure statement was delivered to the purchaser, an action shall be
commenced within one year of the date of the settlement if by sale, or
occupancy if by lease with an option to purchase.
Nothing contained herein shall prevent a purchaser from pursuing any remedies at
law or equity otherwise available against an owner in the event of an owner's
intentional or willful misrepresentation of the condition of the subject property.
Advertising by Licensees
As set forth in 18VAC135-20-190, please see the following topics:
Useful Definitions
All advertising must be under the direct supervision of the principal broker or
supervising broker, in the name of the firm and, when applicable, comply with the
disclosure required by § 54.1-2138.1 of the Code of Virginia. The firm's licensed name
must be clearly and legibly displayed on all advertising.
Here are some useful definitions:
Advertising
All forms of representation, promotion and solicitation disseminated in any manner
and by any means of communication to consumers for any purpose related to
licensed real estate activity.
Contact Information
Telephone number or web address.
Disclosure in the context of Electronic Media Advertising

Advertising by the firm that contains the firm's licensed name and the city and
state in which the firm's main office or branch office is located or

Advertising by an affiliated licensee that contains the licensee's name, the
name of the firm with which the licensee is active, and the city and state in
which the licensee's place of business is located, and this disclosure shall be
viewable on the main page or no more than one click away from the main
page.
Disclosure in the context of all other Advertising means

Advertising by the firm that contains the firm's licensed name or
Advertising by an affiliated licensee that contains the licensee's name and the
name of the firm with which the licensee is active.
Viewable Page
A page that may or may not scroll beyond the borders of the screen and includes the
use of framed pages.
Electronic Media Advertising

Any electronic media advertising undertaken for the purpose of any licensed
activity is subject to the provisions of this chapter.
All electronic media advertising that can be viewed or experienced as a
separate unit (i.e., email messages and web pages) must contain a disclosure
that shall be viewable on the main page or is no more than one click away
from the main page.
All electronic media listings advertised must be kept current and consistent
as follows:
▪ Electronic media listing information must be consistent with the
property description and actual status of the listing. The
licensee shall update in a timely manner material changes to the
listing status authorized by the seller or property description
when the licensee controls the electronic media site.
▪ The licensee shall make timely written requests for updates
reflecting material changes to the listing status or property
descriptions when a third party electronic media listing service
controls the website displaying the listing information.

Other Advertising
For sale and for lease signs placed on the property shall include but not be
limited to the firm's name and the firm's primary or branch office telephone
number.
Business cards shall include but not be limited to the licensee's name, the firm
name, and contact information.
Prohibited Activities:
Implying that property listed by a licensee's firm and advertised by the firm or
licensee is for sale, exchange, rent or lease by the owner or by an unlicensed
person;
Failing to include a notice in all advertising that the owner is a real estate
licensee if the licensee owns or has any ownership interest in the property
advertised;
Failing to include the firm's licensed name on any sign displayed outside each
place of business;
Failing to obtain the written consent of the seller, landlord, optionor or licensor
prior to advertising a specific identifiable property; and
Failing to identify the type of services offered when advertising by general
description a property not listed by the party making the advertisement.

Lesson 2: Virginia Common Interest Communities
Act
Lesson Introduction
The Common Interest Community Board is a separate agency within the Department
of Professional and Occupational Regulation. The director of the department acts as
the board's secretary and administrative officer. The board is authorized to regulate
common interest community managers as well as their supervisory and principal
employees.
The board is responsible for administering Virginia's common interest community

and property registration laws:
Common Interest Communities (Code of Virginia, Title 54.1, Chapter 23.3)

Condominium Act (Code of Virginia, Title 55, Chapter 4.2)
Virginia Real Estate Time-Share Act (Code of Virginia, Title 55, Chapter 21)

Virginia Real Estate Cooperative Act (Code of Virginia, Title 55, Chapter 24)
Property Owners´ Association Act (Code of Virginia, Title 55, Chapter 26)
Common Interest Community Management Information Fund (Code of
Virginia, Title 55, Chapter 29)
The board is also responsible for establishing regulations regarding the

establishment of procedures by each association for the resolution of written
complaints from its members and other citizens. Code of Virginia, Title 55, Chapter
29.
The Common Interest Community

The Common Interest Community Manager’s duties
Administering the Regulations
The Common Interest Community

A "common interest community" is a community located within the Commonwealth
subject to a declaration which contains lots, at least some of which are residential or
occupied for recreational purposes, and common areas to which a person, by the
virtue of his ownership of a lot, is a member of an association and is obligated to pay
assessments provided for in a declaration.
A "Declaration" is a document, recorded among the land records of the county or

city in which the development is located, that imposes an annual assessment on
the owners in the community to pay for maintenance and other services for all
owners in the community.

The Common Interest Community Manager’s Duties
The duties of a Common Interest Community manager would include:
acting with the authority of an association in its business, legal, financial,

or other transactions with association members and nonmembers;
executing the resolutions and decisions of an association or, with the
authority of the association, enforcing the rights of the association
secured by statute, contract, covenant, rule, or by-law;
collecting, disbursing, or otherwise exercising dominion or control over
money or other property belonging to an association;
preparing budgets, financial statements, or other financial reports for
an association;
arranging, conducting, or coordinating meetings of an association or the
governing body of an association;
negotiating contracts or otherwise coordinating or arranging for
services or the purchase of property and goods for or on behalf of an
association.
Administering the Regulations

Unless exempted by law, any person, partnership, corporation, or other entity
offering management services to a common interest community shall hold a valid
license issued by the Common Interest Community Board.
As a condition of the issuance or renewal of the license of a common interest

community manager, all employees of the common interest community manager
who have principal responsibility for management services provided to a common
interest community or who have supervisory responsibility for employees who
participate directly in the provision of management services to a common interest
community shall, within two years after employment with the common interest
community manager, hold a certificate issued by the Board certifying the person
possesses the character and minimum skills to engage properly in the provision of
management services to a common interest community or shall be under the direct
supervision of a certified employee of such common interest community manager.

A common interest community manager shall notify the Board if a certificated
employee is discharged or in any way terminates his active status with the common
interest community manager.
Lesson Summary
The Common Interest Community Board regulates and oversees the following:
Common Interest Communities (Code of Virginia, Title 54.1, Chapter 23.3)

Condominium Act (Code of Virginia, Title 55, Chapter 4.2)
Virginia Real Estate Time-Share Act (Code of Virginia, Title 55, Chapter 21)
Virginia Real Estate Cooperative Act (Code of Virginia, Title 55, Chapter 24)
Property Owners´ Association Act (Code of Virginia, Title 55, Chapter 26)
Common Interest Community Management Information Fund (Code of
Virginia, Title 55, Chapter 29)
The board is authorized to regulate common interest community managers as well

as their supervisory and principal employees.

Lesson 3: Virginia Condominium Act and
Regulations
Lesson Introduction
As set forth in § 55-79.39 - § 55-79.103 the Virginia Condominium Act is regulated by
the Virginia Common Interest Community Board. There are certain documents that
are required to create a condominium as well regulations requiring a seller of the
condo to provide to the buyer of a new or resale condo certain documents when
purchasing the condo.

Useful Definitions
Documents that create a condominium
Documents received by purchaser when purchasing a new condominium
Documents received by purchaser when purchasing a resale condominium
Regulations for renting a condominium unit
Useful Definitions
Here are some of the useful definitions:
Condominium
A real property which can include single family dwellings, attached dwellings,
multilevel dwellings, office units, and other types of dwellings where the undivided
interests in the common elements are vested in the unit owners.
Declarant
Any person, or group of persons acting in concert, that offers to sell his or its interest
in a condominium unit not previously sold before. This would be the developer or
owner of the condominium. The term "declarant" shall not include an individual who
acquires title to a condominium unit at a foreclosure sale. The declarant must submit
to the Virginia Common Interest Community Board a Declaration of Condominium,
Bylaws, and a Public Offering Statement when creating the condominium.
Condominium Declaration
Condominium Declaration is "a legal document filed in the county or state in which
a condominium will be located. Once filed with the appropriate public official, this
document establishes the existence of the project and divides airspace into layers of
ownership".

Contents of declaration
As set forth in § 55-79.54, the declaration for every condominium shall contain the
following:
The name of the condominium, which name shall include the
word "condominium" or be followed by the words "a
condominium."
The name of the city or county in which the condominium is
located.
A legal description by metes and bounds of the land submitted to
this chapter.
A description or delineation of the boundaries of the units,
including the horizontal (upper and lower) boundaries, if any, as
well as the vertical (lateral or perimetric) boundaries.
A description or delineation of any limited common elements
The allocation to each unit of an undivided interest in the
common elements in accordance with the provisions of § 55-
79.55.
A statement of the extent of the declarant's obligation to
complete improvements labeled "(NOT YET COMPLETED)" or to
begin and complete improvements labeled "(NOT YET BEGUN)"
on plats recorded.
Bylaws to be recorded with the Declaration

As set forth in § 55-79.73, there shall be recorded simultaneously with the declaration
a set of bylaws providing for the self-government of the condominium by an
association of all the unit owners. The unit owners' association may be incorporated.
Initial Sale
A purchaser of a new condominium will receive a Public Offering Statement from the
developer of the condominium and has five calendar days to cancel the contract if
purchaser feels the POS is unsatisfactory.

Public Offering Statement
As set forth in § 55-79.90 a public offering statement shall disclose fully and
accurately the characteristics of the condominium and the units therein offered and
shall make known to prospective purchasers all unusual and material circumstances
or features affecting the condominium. The proposed public offering statement
submitted to the agency shall be in a form prescribed by its rules and regulations
and shall include the following:
The name and principal address of the declarant and the condominium;
A general narrative description of the condominium stating the total number
of units in the offering; the total number of units planned to be sold and
rented; the total number of units that may be included in the condominium by
reason of future expansion or merger of the project by the declarant;
Copies of the declaration and bylaws, with a brief narrative statement
describing each and including information on declarant control, a projected
budget for at least the first year of the condominium's operation (including
projected common expense assessments for each unit), and provisions for
reserves for capital expenditures and restraints on alienation;
Copies of any management contract, lease of recreational areas, or similar
contract or agreement affecting the use, maintenance or access of all or any
part of the condominium with a brief narrative statement of the effect of each
such agreement upon a purchaser, and a statement of the relationship, if any,
between the declarant and the managing agent or firm;
A general description of the status of construction, zoning, site plan approval,
issuance of building permits, or compliance with any other state or local
statute or regulation affecting the condominium;
The significant terms of any encumbrances, easements, liens and matters of
title affecting the condominium;
The significant terms of any financing offered by the declarant to the
purchaser of units in the condominium;
Provisions of any warranties provided by the declarant on the units and the
common elements.
A statement that, the purchaser may cancel the disposition within five
calendar days of delivery of the current public offering statement or within
five calendar days of the contract date of the disposition, whichever is later;

A statement of the declarant's obligation to complete improvements of the
condominium which are planned but not yet begun, or begun but not yet
completed. Said statement shall include a description of the quality of the
materials to be used, the size or capacity of the improvements when material,
and the time by which the improvements shall be completed. Any limitations
on the declarant's obligation to begin or complete any such improvements
shall be expressly stated;
If the units in the condominium are being subjected to a time-share
instrument pursuant to § 55-367, the information required to be disclosed by
§ 55-374;
A statement listing the facilities or amenities which are defined as common
elements or limited common elements in the condominium instruments,
which are available to a purchaser for use. Such statement shall also include
whether there are any fees or other charges for the use of such facilities or
amenities which are not included as part of any assessment, and the amount
of such fees or charges, if any, a purchaser may be required to pay;
A statement of any limitation on the number of persons who may occupy a
unit as a dwelling;
A statement setting forth any restrictions, limitation, or prohibition on the right
of a unit owner to display the flag of the United States, including, but not
limited to reasonable restrictions as to the size, place, and manner of
placement or display of such flag; and
Resale by Purchaser
As set forth in § 55-79.97, resale by purchaser needs the following:
Disclosure Required
In the event of any resale of a condominium unit by a unit owner, they shall disclose
in the contract that
the unit is located within a development which is subject to the Condominium
Act,
the Act requires the seller to obtain from the unit owners' association a resale
certificate and provide it to the purchaser,
the purchaser may cancel the contract within three days after receiving the
resale certificate or being notified that the resale certificate will not be
available,

if the purchaser has received the resale certificate, the purchaser has a right
to request a resale certificate update or financial update in accordance with
§ 55-79.97:1, as appropriate, and
the right to receive the resale certificate and the right to cancel the contract
are waived conclusively if not exercised before settlement.
If the contract does not contain the disclosure, the purchaser's sole remedy is to
cancel the contract prior to settlement. The notice of cancellation shall be provided
to the unit owner or his agent by one of the following methods:
Hand delivery;
United States mail, postage prepaid, provided the sender retains sufficient
proof of mailing, which may be either a United States postal certificate of
mailing or a certificate of service prepared by the sender confirming such
mailing;
Electronic means provided the sender retains sufficient proof of the electronic
delivery, which may be an electronic receipt of delivery, a confirmation that
the notice was sent by facsimile, or a certificate of service prepared by the
sender confirming the electronic delivery; or
Overnight delivery using a commercial service or the United States Postal
Service.
In the event of a dispute, the sender shall have the burden to demonstrate delivery
of the notice of cancellation. Such cancellation shall be without penalty, and the unit
owner shall cause any deposit to be returned promptly to the purchaser.
Condo Certificates & Property Owners Associations Packets

All Common Interest Communities (Condo and Property Owner Associations) to
provide a short summary on a form, developed by the Common Interest
Community Board, of important information contained in the resale certificate or
disclosure packet, delivered at the same time as the Resale Certificate or Disclosure
Packet. This form will list the types of items that may affect a prospective
purchaser’s decision, including the following:
• Obligations to pay annual dues or special assessments

• Penalties for failure or refusal to pay assessments
• Purposes for which assessments may be used
• The importance of the declaration, condo instruments, and other governing
documents
• Rental limitations or restrictions
• Parking or storage restrictions on motor vehicles and boats
• Pet Restrictions
• Architectural guidelines and restrictions
• Limitations on the operation of home businesses
• Length of declarant control
• That the purchase contract is a legally binding document
Resale Certificate
A resale certificate shall include the following:
A statement of any expenditure of funds approved by the unit owners'
association or an assessment in addition to the regular assessment during the
current or the immediately succeeding fiscal year;
A statement, including the amount, of all assessments and any other fees or
charges currently imposed by the unit owners' association, together with any
known post-closing fee charged by the common interest community manager,
if any, and associated with the purchase, disposition and maintenance of the
condominium unit and the use of the common elements, and the status of the
account;
A statement whether there is any other entity or facility to which the unit
owner may be liable for fees or other charges;
The current reserve study report or a summary thereof, a statement of the
status and amount of any reserve or replacement fund and any portion of the
fund designated for any specified project;
A copy of the unit owners' association's current budget or a summary thereof
prepared by the unit owners' association and a copy of the statement of its
financial position (balance sheet) for the last fiscal year for which a statement
is available, including a statement of the balance due of any outstanding loans
of the unit owners' association;
A statement of the nature and status of any pending suits or unpaid judgments
to which the unit owners' association is a party which either could or would

have a material impact on the unit owners' association or the unit owners or
which relates to the unit being purchased;
A statement setting forth what insurance coverage is provided for all unit
owners by the unit owners' association, including the fidelity bond maintained
by the unit owners' association, and what additional insurance coverage would
normally be secured by each individual unit owner;
A statement that any improvements or alterations made to the unit, or the
limited common elements assigned thereto, are or are not in violation of the
condominium instruments;
A copy of the current bylaws, rules and regulations and architectural
guidelines adopted by the unit owners' association and the amendments
thereto;
A statement of whether the condominium or any portion thereof is located
within a development subject to the Property Owners' Association Act (§ 55-
508 et seq.) of Chapter 26 of this title;
A copy of the notice given to the unit owner by the unit owners' association of
any current or pending rule or architectural violation;
A copy of any approved minutes of unit owners' association meetings for the
six calendar months preceding the request for the resale certificate;
Certification that the unit owners' association has filed with the Common
Interest Community Board the annual report required by § 55-79.93:1; which
certification shall indicate the filing number assigned by the Common Interest
Community Board and the expiration date of such filing;
A statement of any limitation on the number of persons who may occupy a
unit as a dwelling;
A statement setting forth any restrictions, limitation or prohibition on the right
of a unit owner to display the flag of the United States, including, but not
limited to reasonable restrictions as to the size, time, place, and manner of
placement or display of such flag;
A statement setting forth any restriction, limitation, or prohibition on the right
of a unit owner to install or use solar energy collection devices on the unit
owner's property; and
A statement indicating any known project approvals currently in effect issued
by secondary mortgage market agencies.
A copy of the fully completed form developed by the Common Interest
Community Board pursuant to § 54.1-2350.

Important Notes to Remember
Failure to receive a resale certificate shall not excuse any failure to comply with the
provisions of the condominium instruments, articles of incorporation, or rules or
regulations.
The resale certificate shall be delivered in accordance with the written request and
instructions of the seller or the seller's authorized agent, including whether the resale
certificate shall be delivered electronically or in hard copy, at the option of the seller
or the seller's authorized agent, and shall specify the complete contact information
for the parties to whom the resale certificate shall be delivered. The resale certificate
shall be delivered within 14 days of receipt of such request.
The seller or the seller's authorized agent may request that the resale certificate be
provided in hard copy or in electronic form. A unit owners' association or common
interest community manager may provide the resale certificate electronically;
however, the seller or the seller's authorized agent shall have the right to request
that the resale certificate be provided in hard copy.
The seller or the seller's authorized agent shall continue to have the right to request
a hard copy of the resale certificate in person at the principal place of business of the
unit owners' association. If the seller or the seller's authorized agent requests that
the resale certificate be provided in electronic format, neither the unit owners'
association nor its common interest community manager may require the seller or
the seller's authorized agent to pay any fees to use the provider's electronic network
or system. The resale certificate shall not be delivered in hard copy if the requester
has requested delivery of such resale certificate electronically.
If the resale certificate is provided electronically by a website link, the preparer shall
not cause the website link to expire within the subsequent 90-day period.

The preparer shall not charge another fee during the subsequent 12-month period,
except that the preparer may charge an update fee for a financial update or for an
inspection as provided in § 55-79.97:1. If the seller or the seller's authorized agent
asks that the resale certificate be provided in electronic format, the seller or the
seller's authorized agent may request that an electronic copy be provided to each of
the following named in the request: the seller, the seller's authorized agent, the
purchaser, the purchaser's authorized agent, and not more than one other person
designated by the requester. If so requested, the unit owners' association or its
common interest community manager may require the seller or the seller's
authorized agent to pay the fee specified in § 55-79.97:1.
Regardless of whether the resale certificate is delivered in paper form or

electronically, the preparer of the resale certificate shall provide such resale
certificate directly to the persons designated by the requester to the addresses or, if
applicable, the email addresses provided by the requester.
Fees for Resale Certificate

As set forth in § 55-79.97:1 the unit owners' association may charge fees as
authorized by this section for the inspection of the property, the preparation and
issuance of the resale certificate required by § 55-79.97, and for such other services
as are set out in this section. Nothing in this chapter shall be construed to authorize
the unit owners' association or common interest community manager to charge an
inspection fee for a unit except as provided in this section.
A reasonable fee may be charged by the preparer of the resale certificate as follows
for:
The inspection of the unit, as authorized in the declaration and as required to
prepare the resale certificate, a fee not to exceed $100;
The preparation and delivery of the resale certificate in
o paper format, a fee not to exceed $150 for no more than two hard
copies, or

o electronic format, a fee not to exceed a total of $125, for an electronic
copy to each of the following named in the request: the seller, the
seller's authorized agent, the purchaser, the purchaser's authorized
agent, and not more than one other person designated by the
requester. Only one fee shall be charged for the preparation and
delivery of the resale certificate;
At the option of the seller or the seller's authorized agent, with the consent of
the unit owners' association or the common interest community manager,
expediting the inspection, preparation, and delivery of the resale certificate,
an additional expedite fee not to exceed $50;
At the option of the seller or the seller's authorized agent, an additional hard
copy of the resale certificate, a fee not to exceed $25 per hard copy;
At the option of the seller or the seller's authorized agent, a fee not to exceed
an amount equal to the actual cost paid to a third-party commercial delivery
service for hand delivery or overnight delivery of the resale certificate; and
A post-closing fee to the purchaser of the unit, collected at settlement, for the
purpose of establishing the purchaser as the owner of the unit in the records
of the unit owners' association, a fee not to exceed $50.

Neither the unit owners' association nor its common interest community manager
shall require cash, check, certified funds, or credit card payments at the time the
request for the resale certificate is made. The resale certificate shall state that all fees
and costs for the resale certificate shall be the personal obligation of the unit owner
and shall be an assessment against the unit and collectible as any other assessment
in accordance with the provisions of the condominium instruments and § 55-79.83,
if not paid at settlement or within 60 days of the delivery of the resale certificate,
whichever occurs first.
For purposes of this section, an expedite fee shall only be charged if the inspection
and preparation of delivery of the resale certificate are completed within five
business days of the request for a resale certificate.

The maximum allowable fees charged in accordance with this section shall adjust
every five years, as of January 1 of that year, in an amount equal to the annual
increases for that five-year period in the United States Average Consumer Price Index
for all items, all urban consumers (CPI-U), as published by the Bureau of Labor
Statistics of the U.S. Department of Labor.
If a resale certificate has been issued within the preceding 12-month period, a person
specified in the written instructions of the seller or the seller's authorized agent,
including the seller or the seller's authorized agent or the purchaser or the
purchaser's authorized agent, may request a resale certificate update. The requester
shall specify whether the resale certificate update shall be delivered electronically or
in hard copy and shall specify the complete contact information of the parties to
whom the update shall be delivered. The resale certificate update shall be delivered
within 10 days of the written request.
The settlement agent may request a financial update. The requester shall specify
whether the financial update shall be delivered electronically or in hard copy and
shall specify the complete contact information of the parties to whom the update
shall be delivered. The financial update shall be delivered within three business days
of the written request.
Suspension of Services for Failure to Pay Assessments

As set forth in § 55-79.80:2, the unit owners' association shall have the power, to the
extent the condominium instruments or rules duly adopted pursuant thereto
expressly so provide, to
suspend a unit owner's right to use facilities or services, including utility

services, provided directly through the unit owners' association for
nonpayment of assessments which are more than 60 days past due, to the
extent that access to the unit through the common elements is not precluded

and provided that such suspension shall not endanger the health, safety, or
property of any unit owner, tenant, or occupant and
assess charges against any unit owner for any violation of the condominium
instruments or of the rules or regulations promulgated pursuant thereto for
which such unit owner or his family members, tenants, guests or other invitees
are responsible.

Before any action authorized in this section is taken, the unit owner shall be given a
reasonable opportunity to correct the alleged violation after written notice of the
alleged violation to the unit owner at the address required for notices of meetings
pursuant to § 55-79.75. If the violation remains uncorrected, the unit owner shall be
given an opportunity to be heard and to be represented by counsel.
The amount of any charges so assessed shall not exceed $50 for a single offense, or
$10 per diem for any offense of a continuing nature, and shall be treated as an
assessment against such unit owner's condominium unit for the purpose of § 55-
79.84. However, the total charges for any offense of a continuing nature shall not be
assessed for a period exceeding 90 days.
The unit owners' association may file or defend the legal action in general district or
circuit court that seeks relief, including injunctive relief, arising from any violation of
the condominium instruments or duly adopted rules and regulations.
If the court rules in favor of the unit owners' association, it shall be entitled to collect
such charges from the date the action was filed as well as all other charges assessed
pursuant to this section against the unit owner prior to the action. In addition, if the
court finds that the violation remains uncorrected, the court may order the unit
owner to abate or remedy the violation.

In any suit filed in general district court pursuant to this section, the court may enter
a default judgment against the unit owner on the unit owners' association's sworn
affidavit.
Alterations within Units

As set forth in § 55-79.68, except to the extent prohibited by the condominium
instruments, and subject to any restrictions and limitations specified therein, any unit
owner may make any improvements or alterations within his unit that do not impair
the structural integrity of any structure or otherwise lessen the support of any
portion of the condominium. But no unit owner shall do anything which would
change the exterior appearance of his unit or of any other portion of the
condominium except to such extent and subject to such conditions as the
condominium instruments may specify.
If a unit owner acquires an adjoining unit, or an adjoining part of an adjoining unit,

then such unit owner shall have the right to remove all or any part of any intervening
partition or to create doorways or other apertures therein, notwithstanding the fact
that such partition may in whole or in part be a common element, so long as no
portion of any bearing wall or bearing column is weakened or removed and no
portion of any common element other than that partition is damaged, destroyed, or
endangered. Such creation of doorways or other apertures shall not be deemed an
alteration of boundaries within the meaning of § 55-79.69.
Display of the flag of the United States

As set forth in § 55-79.75:2, in accordance with the federal Freedom to Display the
American Flag Act of 2005, no unit owners' association shall prohibit or otherwise
adopt or enforce any policy restricting a unit owner from displaying upon property
to which the unit owner has a separate ownership interest or a right to exclusive
possession or use the flag of the United States whenever such display is in
compliance with Chapter 1 of Title 4 of the United States Code, or any rule or custom

pertaining to the proper display of the flag. A unit owners' association may, however,
establish reasonable restrictions as to the size, place, duration, and manner of
placement or display of the flag on such property provided such restrictions are
necessary to protect a substantial interest of the unit owners' association.
The unit owners' association may restrict the display of such flags in the common
elements.
Lien for Assessments

As set forth in § 55-79.84 the unit owners' association shall have a lien on every
condominium unit for unpaid assessments levied against that condominium unit in
accordance with the provisions of this chapter and all lawful provisions of the
condominium instruments.
The said lien, once perfected, shall be prior to all other liens and encumbrances
except
real estate tax liens on that condominium unit,

liens and encumbrances recorded prior to the recordation of the declaration,
and
sums unpaid on any first mortgages or first deeds of trust recorded prior to
the perfection of said lien for assessments and securing institutional lenders.
The provisions of this subsection shall not affect the priority of mechanics' and
material men's liens.
At any time after perfecting the lien pursuant to this section, the unit owners'
association may sell the unit at public sale, subject to prior liens. For purposes of this
section, the unit owners' association shall have the power both to sell and convey the
unit, and shall be deemed the unit owner's statutory agent for the purpose of
transferring title to the unit.

Notice of Sale Under Deed of Trust
As set forth in § 55-79.84:01 in accordance with the provisions of § 15.2-979, the unit
owners' association shall be given notice whenever a condominium unit becomes
subject to a sale under a deed of trust.
Rental of Units
As set forth in § 55-79.87:1, except as expressly authorized in this chapter or in the
condominium instruments or as otherwise provided by law, no unit owners'
association shall:
Condition or prohibit the rental of a unit to a tenant by a unit owner or make
an assessment or impose a charge except as provided in § 55-79.42:1;
Charge a rental fee, application fee, or another processing fee of any kind in
excess of $50 during the term of any lease;
Charge an annual or monthly rental fee or any other fee not expressly
authorized in § 55-79.42:1;
Require the unit owner to use a lease or an addendum to the lease prepared
by the unit owners' association;
Charge any deposit from the unit owner or the tenant of the unit owner; or
Have the authority to evict a tenant of any unit owner or to require any unit
owner to execute a power of attorney authorizing the unit owners' association
to so evict. However, if the unit owner designates a person licensed under the
provisions of § 54.1-2106.1 as the unit owner's authorized representative with
respect to any lease, the unit owners' association shall recognize such
representation without a formal power of attorney, provided that the unit
owners' association is given a written authorization signed by the unit owner
designating such representative. Notwithstanding the foregoing, the
requirements of § 55-79.77 and the condominium instruments shall be
satisfied before any such representative may exercise a vote on behalf of a
unit owner as a proxy.
The unit owners' association may require the unit owner to provide the unit owners'
association with the names and contact information of the tenants and authorized
occupants under such lease and any authorized agent of the unit owner, and vehicle
information for such tenants or authorized occupants.

The unit owners' association may require the unit owner to provide the unit owners'
association with the tenant's acknowledgment of and consent to any rules and
regulations of the unit owners' association.
Lesson Summary
Developers of condominiums must know what is required when creating new condos
for resale. Buyers of new and resale condos must be made aware of all the rules and
regulations that will allows them to enjoy the condo life to its fullest. The law provides
that the buyer can cancel the contract to purchase a condo if the buyer finds items
in the documentation that are not acceptable. This allows the buyer to get their
deposit back, allowing them to purchase another property.

Lesson 4: Virginia Real Estate Time-Share Act and
Regulations
Lesson Introduction
The Virginia Real Estate Time-Share Act is administered by the Common Interest
Community Board. A discussion of how a time-share is created and the two types of
time-share ownership are discussed. A brief overview of the Public Offering
Statement will be outlined as well as how many days a purchaser of a time-share has
to rescind the contract and get their deposit returned. A discussion of the regulations
for advertising is presented as well as the process of transferring control of the time-
share from the developer to the association.

The creation of a time-share

Types of time-share ownership
Public offering statement
Right to rescind contract
Escrow deposits
Advertisements
Transfer of control
Statute of limitations
Creation of a Time-Share
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 in
accordance with this chapter and record it in the clerk’s office where such time-share
project is located. The time-share instrument shall contain the following:
1. The name of the time-share project
3. The legal description, street address, or other description sufficient to

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

project;
Creation of an association, the members of which shall be the time-share

estate owners. The association may be formed pursuant to the Virginia Nonstock
Corporation Act (§ 13.1-801 et seq.).
Types of Time-Share Ownership

"Time-share estate" means a right to occupy a unit or any of several units during five
or more separated time periods over a period of at least five years, including renewal
options, coupled with a freehold estate or an estate for years in a time-share project
or a specified portion thereof.

"Time-share use" means a right to occupy a time-share unit or any of several time-
share units during five or more separated time periods over a period of at least five
years, including renewal options, not coupled with a freehold estate or an estate for
years in a time-share project or a specified portion thereof. "Time-share use" shall
not mean a right to use which is subject to a first-come, first-served, space-available
basis as might exist in a country club, motel, hotel, health spa, campground, or
membership or resort facility.
Public Offering Statement

The Public Offering Statement summarizes information and documents furnished by
the developer to the Virginia Common Interest Community Board. The following is
found in the POS:
1. A brief description of the time-share project and the time-share program.

2. A statement regarding all incidental benefits or alternative purchases that
may be offered by the developer.
3. A brief description of all amenities located within or outside of the time-
share project and available to time-share owners by virtue of ownership in the
timeshare project. If such amenities are not common elements of the time-
share project, identify who owns the amenities and whether time-share
owners are required to pay to access and use.
4 A statement describing any exchange program that may be offered to the
purchaser.
5. A statement describing
(i) the purchaser's responsibility to make principal and interest payment
in connection with the purchase of the time-share as well as to pay
maintenance fees or assessments, special assessments, user fees,
insurance premiums, and real estate taxes and
(ii) that a time-share owner cannot reduce the amount of any owner
obligation for any reason.

6. A statement regarding the consequences for failure to pay maintenance
fees or any special assessment when due. The statement may reference the
enforcement mechanisms available to the developer, and if applicable the
time-share association, by describing
(i) any declaration of an owner being an "Owner Not in Good Standing";
(ii) any civil action taken for the collection of a debt;
(iii) means for pursuing foreclosure or obtaining a lien against the time-
share unit; and
(iv) denial of access to the time-share project and participation in the
time-share program.
7. A statement indicating whether the developer or managing agent has
indictments, convictions, judgments, decrees, or order of any court or
administrative agency for matters related to fraud or consumer protection
violations that may be required to be disclosed by subdivisions A 1 c and A 1 d
of § 55-374 of the Code of Virginia.
8. A statement indicating the period of time the developer will retain control
of the association for time-share estate projects.
9. A statement disclosing any management agreement with a managing agent
to perform certain duties for the time-share project.
10. A statement indicating whether the developer may expand the time-share
project.
11. A statement indicating whether the right of the time-share owner to resell
or transfer the time-share is subject to restrictions.
12. A statement indicating the time-share units are restricted to lodging only.
13. A statement indicating that the time-share owner may not alter the interior
or exterior of the time-share unit.
14. A statement regarding the obligation of the developer or association to
obtain certain insurance benefiting the time-share owner.
15. A statement regarding a time-share estate and time-share owner's
obligation to pay real estate taxes.

16. A statement regarding whether or not the developer reserves the right to
add or delete any alternative purchase.
Additional documents included with POS:
1. Project time-share instrument;

2. Association articles of incorporation;
3. Bylaws;
4. Association annual report or projected budget for time-share estate programs;
5. Rules and regulations of the time-share owners' association, if available;
6. Any management contract, if applicable;
Right to Rescind
The purchaser of a time-share may cancel the contract until midnight of the seventh
calendar day following the execution of such contract.
Escrow of Deposits
As set forth in § 55-375, any deposit made in connection with the purchase or
reservation of a product shall be held in escrow. All cash deposits shall be held in a
separate bank account labeled and designated solely for that purpose.
Such escrow account shall be insured by an instrumentality of the federal

government and located in Virginia. All deposits shall be held in escrow until
(i) delivered to the developer upon expiration of the purchaser's cancellation
period provided the purchaser's right of cancellation has not been exercised,
(ii) delivered to the developer because of the purchaser's default under a
contract to purchase a time-share, or
(iii) refunded to the purchaser. Failure to establish escrow accounts or to make
the deposits as required by this section is prima facie evidence of a willful
violation of this section.

The developer shall disclose in the contract or in the public offering that
the deposit may not be held in escrow after expiration of the cancellation period and
that such deposit is not protected as an escrow after expiration of the cancellation
period. This disclosure shall include a statement of whether or not the developer
reserves the option to sell or assign any promissory note given by a purchaser to
another entity, whether or not such entity is affiliated with the developer. Both
disclosures shall appear in boldfaced type of a minimum size of 10 points.
There shall be filed with the Common Interest Community Board a bond, letter of
credit, or cash for the purpose of protecting all deposits escrowed pursuant to
subsection A, in favor of the time-share purchasers. The bond, letter of credit, or cash
shall be in an amount equal to the total of the deposits in escrow at any given time
or $25,000, whichever is greater. Such bond, letter of credit, or cash shall be
maintained for so long as the developer offers time-shares in the project. The bond
shall be with a surety company authorized to do business in Virginia.
Advertisements
As set forth in § 55-374.1, any offering which includes a gift or prize must disclose the
following:
1. The retail value of each gift or prize;

2. The approximate odds against any given person obtaining each gift or prize
if all persons to whom the advertisement is disseminated do what is necessary
to qualify for the award of the gift or prize;
3. If the number of gifts or prizes to be awarded is limited, a statement of the
number of gifts or prizes to be awarded or in lieu thereof, the nature of such
limitation;

4. All rules, terms, requirements, and conditions which must be fulfilled before
a prospective purchaser may claim any gift or prize, including whether the
prospective purchaser is required to attend a sales presentation in order to
receive the gift or prize;
5. The date upon which the offer expires; and
6. A statement to the effect that the offer is being made for the purpose of
soliciting the purchase of a time-share, time-share interest, interval
ownership, interval ownership interest, vacation ownership, vacation
ownership interest or product, as appropriate.

Any gift or prize offered in connection with an offering shall be delivered to the
prospective purchaser no later than the day the purchaser attends a sales
presentation, if required, and if not, on the day the purchaser appears to claim it,
whether or not he purchases a time-share. In the event the supply of gifts or prizes
is exhausted at the time required for delivery, the developer shall give the
prospective purchaser a written, unconditional promise to deliver such gift or prize
no later than 30 days from the date required for delivery. If such gift or prize is not
obtainable, the developer shall deliver an item of equal or greater value.
Transfer of Control
The time-share instrument for a time-share estate program shall provide for a
period of time, to be called the "developer control period," during which the
developer or a managing agent selected by the developer shall manage
and control the time-share estate project and the common elements and units, or
portions thereof, comprising it. All costs associated with the control, management,
and operation of the time-share estate project during the developer control period
shall belong to the developer.

Except to the extent that the purchase contract or time-share instrument expressly
provides otherwise, fee simple title to the common elements shall be transferred to
the time-share estate owners' association, free of charge, no later than at such time
as the developer
(i) transfers to purchasers legal or equitable ownership of at least 90 percent

of the time-share estates, excluding any reacquisitions by the developer;
(ii) is no longer the beneficiary on deeds of trust secured on at least 20 percent
of the time-share estates; or
(iii) has completed all of the promised common elements and facilities
comprising the time-share estate project, whichever occurs last. The
developer may, but shall not be required to, make such transfer when the
period has ended for a phase or portion of the time-share estate project.
The transfer herein required of the developer shall not exonerate the
developer from the responsibility of completion of the promised and
incomplete common elements once the transfer occurs. Upon transfer of
the time-share project or portion to the association, the developer control
period for such project or portion thereof shall terminate.

Resale of Time-Share
As set forth in § 55-380, in the event of any resale of a time-share by a time-
share owner, other than the developer, such owner shall obtain from the developer
or managing agent in the case of a time-share use program or from the time-share
estate owners' association in the case of a time-share estate program and furnish to
the purchaser prior to settlement on an executed agreement to purchase the time-
share, a certificate of resale which shall include the following:
1. A statement disclosing the effect on the proposed transfer of any right of

first refusal or other restraint on transfer of the time-share or any portion
thereof;
2. A copy of the time-share instrument;
3. A copy of the current bylaws and rules and regulations of the time-
share estate owners' association, if any, and the amendments thereto;
4. A copy of the current annual report prepared pursuant to § 55-370.1;
5. A statement setting forth the amount of any expense liability and
unpaid time-share expense or special assessment currently due and payable
from the selling time-share owner, including the disclosures of any liens
against the time-share due to the nonpayment of such fees or charges;
6. A statement of the nature and status of any known and pending suits or
judgments against the developer, managing entity, or time-share owners'
association with reference to the time-share project; and
7. A copy of a Buyer's Acknowledgment form required by § 55-376.5.

The developer, managing agent, or such officer of the time-share owners' association
as the bylaws may specify, shall furnish the certificate of resale upon the written
request of any purchaser within 30 days of the receipt of such request.

Payment of the reasonable costs of preparing the certificate may be required as a
prerequisite to the issuance of the certificate, but such fee shall not exceed $50.
A time-share owner providing a certificate is not liable to the purchaser for any
erroneous information included in the certificate, other than for judgment liens
against the time-share being sold.
A purchaser is not liable for any unpaid time-share expense liability or fee greater
than the amount set forth in the certificate prepared. A time-share owner is not liable
to a purchaser for the failure or delay of the provider to provide the certificate in a
timely manner, but the purchase contract is voidable by the purchaser until the
certificate has been provided and for five days thereafter or until transfer, whichever
occurs first.
All rights of redress of a purchaser against a selling time-share owner, the developer,
managing agent, or the association for the failure to obtain or receive the statement
are conclusively waived upon settlement on the time-share occurring.
The responsibilities imposed by this section on the developer, managing agent, time-
share estate owners' association, or selling time-share owner shall not be waived.
Statute of limitations; actions; limitation on rescission rights

As set forth in § 55-383, except as otherwise provided in § 55-389, a judicial
proceeding where the sufficiency of the time-share instrument, the accuracy of the
public offering statement, or validity of any contract of purchase is in issue and a
rescission of the contract or damages is sought shall be commenced within two
years after the date of the contract of purchase, notwithstanding that the
purchaser's terms of payments may extend beyond this period of limitation;
however, with respect to the enforcement of provisions in the contract of purchase
which require the continued furnishing of services and the reciprocal payments to

be made by the purchaser, the period of bringing a judicial proceeding will continue
for a period of two years for each breach.
Rescission of the contract shall not be granted by the court unless
(i) the inaccuracy of the public offering statement or the insufficiency of

the time-share instrument directly and adversely affected the
purchaser's right to participate in the time-share program or to own his time-
share or
(ii) at the time of the contract, the developer has sold more time-shares than
there are time-share units that have been completed or bonded to
accommodate such sales. Further, if damages are awarded, the amount of
the damages shall be limited to actual damages sustained.
If a developer has substantially complied in good faith with the provisions of this
chapter, a nonmaterial error or omission shall not be actionable. A nonmaterial error
or omission shall not be sufficient to permit a purchaser to cancel a contract after
the cancellation period provided by § 55-376 has expired.
Lesson Summary
Real estate licenses may sell time-shares and should be aware of the rules and
regulations that govern this type of ownership. The time period to rescind the
contract is important for potential buyers to be aware of, and their knowledge of the
types of documents that they should receive when purchasing a time is a must.
Licensees must adhere to all these requirements or else their license may be in
jeopardy.

Lesson 5: Virginia Property Owner’s Association Act
Lesson Introduction
The Virginia Property Owner’s Association Act is regulated by the Virginia Common
Interest Community Board. This lesson begins with the disclosure requirements to
potential purchasers concerning cancelation of contract. There is an overview of the
documents that must be included in the disclosure packet and the amount of the
fees charged for the disclosure packet. A discussion of renting lots in an association
as well as lien requirement for assessments is presented. Other disclosures which
include disclosing the time, date, and location of any pesticide applications is
reviewed as well as the allowance for installing a US flag.

The lesson ends with a brief overview of whether a home-based business can
operate in a home in the association.
Disclosure statement to cancel contract

Disclosure packet contents
Fees for disclosure packet
Rental lots
Liens for assessments
Notice of sale under deed of trust
Display of flag
Home-based business requirements
Contract Disclosure Statement; Right of Cancellation

As set forth in § 55-509.4 an owner selling a lot shall disclose in the contract that
the lot is located within a development that is subject to the Virginia Property
Owners' Association Act (§ 55-508 et seq.);
the Act requires the seller to obtain from the property owners' association an
association disclosure packet and provide it to the purchaser;
the purchaser may cancel the contract within three days after receiving the
association disclosure packet or being notified that the association disclosure
packet will not be available;
if the purchaser has received the association disclosure packet, the purchaser
has a right to request an update of such disclosure packet.
If the contract does not contain the disclosure required, the purchaser's sole remedy
is to cancel the contract prior to settlement. Notice of cancellation shall be provided
to the lot owner or his agent by one of the following methods:
Hand delivery;
United States mail, postage prepaid, provided the sender retains sufficient
proof of mailing, which may be either a United States postal certificate of
mailing or a certificate of service prepared by the sender confirming such
mailing;

Electronic means provided the sender retains sufficient proof of the electronic
delivery, which may be an electronic receipt of delivery, a confirmation that
the notice was sent by facsimile, or a certificate of service prepared by the
sender confirming the electronic delivery; or
Overnight delivery using a commercial service or the United States Postal
Service.
In the event of a dispute, the sender shall have the burden to demonstrate delivery
of the notice of cancellation. Such cancellation shall be without penalty, and the seller
shall cause any deposit to be returned promptly to the purchaser.
Contents of Association Disclosure Packet

As set forth in § 55-509.5, the association shall deliver, within 14 days after receipt of
a written request and instructions by a seller or the seller's authorized agent, an
association disclosure packet as directed in the written request. The information
contained in the association disclosure packet shall be current as of a date specified
on the association disclosure packet. If hand or electronically delivered, the written
request is deemed received on the date of delivery. If sent by United States mail, the
request is deemed received six days after the postmark date. An association
disclosure packet shall contain the following:
The name of the association and, if incorporated, the state in which the
association is incorporated and the name and address of its registered agent
in Virginia;
A statement of any expenditure of funds approved by the association or the
board of directors that shall require an assessment in addition to the regular
assessment during the current year or the immediately succeeding fiscal year;
A statement, including the amount of all assessments and any other
mandatory fees or charges currently imposed by the association, together
with any post-closing fee charged by the common interest community
manager, if any, and associated with the purchase, disposition, and
maintenance of the lot and to the right of use of common areas, and the status
of the account;

A statement of whether there is any other entity or facility to which the lot
owner may be liable for fees or other charges;
The current reserve study report or summary thereof, a statement of the
status and amount of any reserve or replacement fund, and any portion of the
fund allocated by the board of directors for a specified project;
A copy of the association's current budget or a summary thereof prepared by
the association, and a copy of its statement of income and expenses or
statement of its financial position (balance sheet) for the last fiscal year for
which such statement is available, including a statement of the balance due of
any outstanding loans of the association;
A statement of the nature and status of any pending suit or unpaid judgment
to which the association is a party and that either could or would have a
material impact on the association or its members or that relates to the lot
being purchased;
A statement setting forth what insurance coverage is provided for all lot
owners by the association, including the fidelity bond maintained by the
association, and what additional insurance would normally be secured by each
individual lot owner;
A statement that any improvement or alteration made to the lot, or uses made
of the lot or common area assigned thereto are or are not in violation of the
declaration, bylaws, rules and regulations, architectural guidelines and articles
of incorporation, if any, of the association;
of a lot owner to place a sign on the owner's lot advertising the lot for sale;
of a lot owner to display any flag on the owner's lot, including but not limited
to reasonable restrictions as to the size, place, and manner of placement or
display of such flag and the installation of any flagpole or similar structure
necessary to display such flag;
of a lot owner to install or use solar energy collection devices on the owner's
property;
A copy of the current declaration, the association's articles of incorporation
and bylaws, and any rules and regulations or architectural guidelines adopted
by the association;
A copy of any approved minutes of the board of directors and association
meetings for the six calendar months preceding the request for the disclosure
packet;

A copy of the notice given to the lot owner by the association of any current or
pending rule or architectural violation;
Certification that the association has filed with the Common Interest
Community Board the annual report required by § 55-516.1, which
certification shall indicate the filing number assigned by the Common Interest
Community Board, and the expiration date of such filing; and
A statement indicating any known project approvals currently in effect issued
by secondary mortgage market agencies.

Failure to receive copies of an association disclosure packet shall not excuse any
failure to comply with the provisions of the declaration, articles of incorporation,
bylaws, or rules or regulations.
The disclosure packet shall be delivered in accordance with the written request and
instructions of the seller or the seller's authorized agent, including whether the
disclosure packet shall be delivered electronically or in hard copy and shall specify
the complete contact information for the parties to whom the disclosure packet shall
be delivered.
The seller or the seller's authorized agent may request that the disclosure packet be
provided in hard copy or in electronic form. An association or common interest
community manager may provide the disclosure packet electronically; however, the
seller or the seller's authorized agent shall have the right to request that the
association disclosure packet be provided in hard copy. The seller or the seller's
authorized agent shall continue to have the right to request a hard copy of the
disclosure packet in person at the principal place of business of the association.

If the seller or the seller's authorized agent requests that the disclosure packet be
provided in electronic format, neither the association nor its common interest
community manager may require the seller or the seller's authorized agent to pay
any fees to use the provider's electronic network or system.
The disclosure packet shall not be delivered in hard copy if the requester has
requested delivery of such disclosure packet electronically. If the disclosure packet is
provided electronically by a website link, the preparer shall not cause the website link
to expire within the subsequent 90-day period.
The preparer shall not charge another fee during the subsequent 12-month period,
except that the preparer may charge an update fee for a financial update or for an
inspection as provided in § 55-509.6. If the seller or the seller's authorized agent asks
that the disclosure packet be provided in electronic format, the seller or the seller's
authorized agent may request that an electronic copy be provided to each of the
following named in the request: the seller, the seller's authorized agent, the
purchaser, the purchaser's authorized agent, and not more than one other person
designated by the requester.
If so requested, the property owners' association or its common interest community

manager may require the seller or the seller's authorized agent to pay the fee
specified in § 55-509.6. Regardless of whether the disclosure packet is delivered in
paper form or electronically, the preparer of the disclosure packet shall provide such
disclosure packet directly to the persons designated by the requester to the
addresses or, if applicable, the email addresses provided by the requester.

Fees for Disclosure Packet
Fees vary for the following:
Professionally Managed Associations

As set forth in § 55-509.6, a professionally managed association or its common
interest community manager may charge certain fees as authorized by this section
for the inspection of the property, the preparation and issuance of the disclosure
packet required by § 55-509.5, and for such other services as set out in this section.
The seller or the seller's authorized agent shall specify in writing whether the
disclosure packet shall be delivered electronically or in hard copy, at the option of
the seller or the seller's authorized agent, and shall specify the complete contact
information for the parties to whom the disclosure packet shall be delivered.
A reasonable fee may be charged by the preparer as follows for:

The inspection of the exterior of the dwelling unit and the lot, as authorized in
the declaration and as required to prepare the association disclosure packet,
a fee not to exceed $100;
The preparation and delivery of the disclosure packet in
o paper format, a fee not to exceed $150 for no more than two hard
copies or
o electronic format, a fee not to exceed a total of $125 for an electronic
copy to each of the following named in the request: the seller, the
seller's authorized agent, the purchaser, the purchaser's authorized
agent, and not more than one other person designated by the
requester. The preparer of the disclosure packet shall provide the
disclosure packet directly to the designated persons. Only one fee shall
be charged for the preparation and delivery of the disclosure packet;
At the option of the seller or the seller's authorized agent, with the consent of
the association or the common interest community manager, expediting the
inspection, preparation and delivery of the disclosure packet, an additional
expedite fee not to exceed $50;
At the option of the seller or the seller's authorized agent, an additional hard
copy of the disclosure packet, a fee not to exceed $25 per hard copy;

At the option of the seller or the seller's authorized agent, a fee not to exceed
an amount equal to the actual cost paid to a third-party commercial delivery
service for hand delivery or overnight delivery of the association disclosure
packet; and
A post-closing fee to the purchaser of the property, collected at settlement, for
the purpose of establishing the purchaser as the owner of the property in the
records of the association, a fee not to exceed $50.

Except as otherwise provided, neither the association nor its common interest
community manager shall require cash, check, certified funds or credit card
payments at the time the request for the disclosure packet is made. The disclosure
packet shall state that all fees and costs for the disclosure packet shall be the
personal obligation of the lot owner and shall be an assessment against the lot and
collectible as any other assessment in accordance with the provisions of the
declaration and § 55-516, if not paid at settlement or within 60 days of the delivery
of the disclosure packet, whichever occurs first.
For purposes of this section, an expedite fee shall only be charged if the inspection
and preparation of delivery of the disclosure packet are completed within five
business days of the request for a disclosure packet.
No fees other than those specified in this section, and as limited by this section, shall
be charged by the association or its common interest community manager for
compliance with the duties and responsibilities of the association under this chapter.
No additional fee shall be charged for access to the association's or common interest
community manager's website. The association or its common interest community
manager shall publish and make available in paper or electronic format, or both, a
schedule of the applicable fees so the seller or the seller's authorized agent will know
such fees at the time of requesting the packet.

The maximum allowable fees charged in accordance with this section shall adjust
every five years, as of January 1 of that year, in an amount equal to the annual
increases for that five-year period in the United States Average Consumer Price Index
for all items, all urban consumers (CPI-U), as published by the Bureau of Labor
Statistics of the U.S. Department of Labor.
If an association disclosure packet has been issued for a lot within the preceding 12-
month period, a person specified in the written instructions of the seller or the
seller's authorized agent, including the seller or the seller's authorized agent, or the
purchaser or his authorized agent may request a disclosure packet update. The
requester shall specify whether the disclosure packet update shall be delivered
electronically or in hard copy, and shall specify the complete contact information of
the parties to whom the update shall be delivered. The disclosure packet update shall
be delivered within 10 days of the written request.
The settlement agent may request a financial update. The requester shall specify
whether the financial update shall be delivered electronically or in hard copy, and
of the written request.
A reasonable fee for the disclosure packet update or financial update may be
charged by the preparer not to exceed $50. At the option of the purchaser or the
purchaser's authorized agent, the requester may request that the association or the
common interest community manager perform an additional inspection of the
exterior of the dwelling unit and the lot, as authorized in the declaration, for a fee
not to exceed $100. Any fees charged for the specified update shall be collected at
the time settlement occurs on the sale of the property.

The settlement agent shall escrow a sum sufficient to pay such costs of the seller at
settlement. Neither the association nor its common interest community manager, if
any, shall require cash, check, certified funds, or credit card payments at the time the
request is made for the disclosure packet update. The requester may request that
the specified update be provided in hard copy or in electronic form.
No association or common interest community manager may require the requester

to request the specified update electronically. The seller or the seller's authorized
agent shall continue to have the right to request a hard copy of the specified update
in person at the principal place of business of the association. If the requester asks
that the specified update be provided in electronic format, neither the association
nor its common interest community manager may require the requester to pay any
fees to use the provider's electronic network or system. A copy of the specified
update shall be provided to the seller or the seller's authorized agent.
Associations not Professionally Managed

As set forth in § 55-509.7, an association that is not professionally managed may
charge a fee for the preparation and issuance of the association disclosure packet
required by § 55-509.5. Any fee shall reflect the actual cost of the preparation of the
association disclosure packet, but shall not exceed $0.10 per page of copying costs
or a total of $100 for all costs incurred in preparing the association disclosure packet.
The seller or his authorized agent shall specify whether the association disclosure
packet shall be delivered electronically or in hard copy and shall specify the complete
contact information of the parties to whom the disclosure packet shall be delivered.
If the seller or his authorized agent specifies that delivery shall be made to the
purchaser or his authorized agent, the preparer shall provide the disclosure packet
directly to the designated persons, at the same time it is delivered to the seller or his
authorized agent.

The association shall advise the requestor if electronic delivery of the disclosure
packet or the disclosure packet update or financial update is not available, if
electronic delivery has been requested by the seller or his authorized agent.
No fees other than those specified in this section shall be charged by the association
for compliance with its duties and responsibilities under this section. Any fees
charged pursuant to this section shall be collected at the time of delivery of the
disclosure packet. If unpaid, any such fees shall be an assessment against the lot and
collectible as any other assessment in accordance with the provisions of the
declaration and § 55-516. The seller may pay the association by cash, check, certified
funds, or credit card, if credit card payment is an option offered by the association.

If an association disclosure packet has been issued for a lot within the preceding 12-
month period, a person specified in the written instructions of the seller or his
authorized agent, including the seller or his authorized agent, or the purchaser or his
authorized agent may request a disclosure packet update. The requestor shall
specify whether the disclosure packet update shall be delivered electronically or in
hard copy and shall specify the complete contact information of the parties to whom
the specified update shall be delivered. The disclosure packet update shall be
delivered within 10 days of the written request therefor.
The settlement agent may request a financial update. The requestor shall specify
whether the financial update shall be delivered electronically or in hard copy, and
of the written request therefor.

A reasonable fee for the disclosure packet update or a financial update may be
charged by the preparer not to exceed $50. At the option of the purchaser or his
authorized agent, the requestor may request that the association perform an
additional inspection of the exterior of the dwelling unit and the lot, as authorized in
the declaration, for a fee not to exceed $50. Any fees charged for the specified update
shall be collected at the time of delivery of the update.
The association shall not require cash, check, certified funds, or credit card payments
at the time the request is made for the disclosure packet update. The requestor may
request that the specified update be provided in hard copy or in electronic form.
No association may require the requestor to request the specified update

electronically. The seller or his authorized agent shall continue to have the right to
request a hard copy of the specified update in person at the principal place of
business of the association. If the requestor asks that the specified update be
provided in electronic format, the association shall not require the requester to pay
any fees to use the provider's electronic network or system. If the requestor asks that
the specified update be provided in electronic format, the requestor may designate
no more than two additional recipients to receive the specified update in electronic
format at no additional charge. A copy of the specified update shall be provided to
the seller or his authorized agent.
Rental of Lots
As set forth in § 55-509.3:1 except as expressly authorized in this chapter or in the
declaration or as otherwise provided by law, no association shall:
Condition or prohibit the rental to a tenant of a lot by a lot owner or make an

assessment or impose a charge except as provided in § 55-509.3;
Charge a rental fee, application fee, or another processing fee of any kind in
excess of $50 during the term of any lease;

Charge an annual or monthly rental fee or any other fee not expressly
authorized in § 55-509.3;
Require the lot owner to use a lease or an addendum to the lease prepared by
the association;
Charge any deposit from the lot owner or the tenant of the lot owner; or
Have the authority to evict a tenant of any lot owner or to require any lot owner
to execute a power of attorney authorizing the association to so evict.
However, if the lot owner designates a person licensed under the provisions
of § 54.1-2106.1 as the lot owner's authorized representative with respect to
any lease, the association shall recognize such representation without a
formal power of attorney, provided that the association is given a written
authorization signed by the lot owner designating such representative.
Notwithstanding the foregoing, the requirements of § 55-515 and the
declaration shall be satisfied before any such representative may exercise a
vote on behalf of a lot owner as a proxy.
The association may require the lot owner to provide the association with the names
and contact information of the tenants and authorized occupants under such lease
and any authorized agent of the lot owner, and vehicle information for such tenants
or authorized occupants. The association may require the lot owner to provide the
association with the tenant's acknowledgment of and consent to any rules and
regulations of the association. The provisions of this section shall not apply to lots
owned by the association.
Lien for Assessments

As set forth in § 55-516, once perfected, the association shall have a lien on every lot
for unpaid assessments levied against that lot in accordance with the provisions of
this chapter and all lawful provisions of the declaration. The lien, once perfected,
shall be prior to all other subsequent liens and encumbrances except
real estate tax liens on that lot,

liens and encumbrances recorded prior to the recordation of the declaration,
and

sums unpaid on and owing under any mortgage or deed of trust recorded
prior to the perfection of said lien. The provisions of this subsection shall not
affect the priority of mechanics' and material men's liens. Notice of a
memorandum of lien to a holder of a credit line deed of trust under § 55-
58.2 shall be given in the same fashion as if the association's lien were a
judgment.
Notice of Sale Under Deed of Trust

As § 55-516.01 in accordance with the provisions of § 15.2-979, the association shall
be given notice whenever a lot becomes subject to a sale under a deed of trust. Upon
receipt of such notice, the board of directors, on behalf of the association, shall
exercise whatever due diligence it deems necessary with respect to the lot subject to
a sale under a deed of trust to protect the interests of the association.
Common areas; Notice of Pesticide Application

As set forth in § 55-510.3 the association shall post notice of all pesticide applications
in or upon the common areas. Such notice shall consist of conspicuous signs placed
in or upon the common areas where the pesticide will be applied at least 48 hours
prior to the application.
Display of the flag of the United States

As set forth in § 55-513.1 in accordance with the federal Freedom to Display the
American Flag Act of 2005, no association shall prohibit any lot owner from displaying
upon property to which the lot owner has a separate ownership interest or a right to
exclusive possession or use the flag of the United States whenever such display is in
compliance with Chapter 1 of Title 4 of the United States Code, or any rule or custom
pertaining to the proper display of the flag. The association may, however, establish
reasonable restrictions as to the size, place, duration, and manner of placement or
display of the flag on such property provided such restrictions are necessary to
protect a substantial interest of the association.

The association may restrict the display of such flag in the common areas.
In any action brought by the association under § 55-513 for violation of a flag
restriction, the association shall bear the burden of proof that the restrictions as to
the size, place, duration, and manner of placement or display of such flag are
necessary to protect a substantial interest of the association.
Home-based Businesses Permitted

As set forth in § 55-513.2 except to the extent the declaration provides otherwise, no
association shall prohibit any lot owner from operating a home-based business
within his personal residence. The association may, however, establish
reasonable restrictions as to the time, place, and manner of the operation of

a home-based business and
reasonable restrictions as to the size, place, duration, and manner of the
placement or display of any signs on the owner's lot related to such home-
based business. Any home-based business shall comply with all applicable
local ordinances.
Lesson Summary
The Virginia Property Owners’ Association Act details the rules for what must be
disclosed to potential purchasers in an Owners’ Association. Documents must be
presented to the purchaser at the time of contract allowing the purchaser to review
the documents. The purchaser has three days to decide whether to proceed with the
purchase or cancel the contract. We also learned that a US flag can be installed in an
owners’ association and that purchasers can operate a home-based business on
their property. These laws were created to protect the public while living in an
owners’ association.

Lesson 6: Virginia Residential Landlord and Tenant
Act
Lesson Introduction
The purpose of the Virginia Residential Landlord and Tenant Act is to simplify, clarify,
modernize and revise the law governing the rental of dwelling units and the rights
and obligations of landlords and tenants. The law also encourages landlords and
tenants to maintain and improve the quality of housing as well as to establish a single
body of law relating to landlord and tenant relations throughout the Commonwealth.

General provisions under the law

Landlord obligations
Tenant obligations
Tenant remedies
Landlord remedies
General Provisions
Read the following to learn more details about general provisions in the Virginia
Residential Landlord and Tenant Act:
Exemptions
As set forth in § 55-248.5 the following are exemptions under Virginia’s Residential
Landlord and Tenant Act:
Residence at a public or private institution, if incidental to detention or the

provision of medical, geriatric, educational, counseling, religious or similar
services;
Occupancy under a contract of sale of a dwelling unit or the property of which
it is a part, if the occupant is the purchaser or a person who succeeds to his
interest;
Occupancy by a member of a fraternal or social organization in the portion of
a structure operated for the benefit of the organization;
Occupancy in a hotel, motel, extended stay facility, residential vacation facility,
boarding house, or similar lodging;
Occupancy by an employee of a landlord whose right to occupancy is
conditioned upon employment in and about the premises or an ex-employee
whose occupancy continues less than sixty days;
Occupancy by an owner of a condominium unit or a holder of a proprietary
lease in a cooperative;
Occupancy under a rental agreement covering premises used by the occupant
primarily in connection with business, commercial or agricultural purposes;
Occupancy in a public housing unit or another housing unit subject to
regulation by the Department of Housing and Urban Development where such
regulation is inconsistent with this chapter;

Occupancy by a tenant who pays no rent;
Occupancy in single-family residences located in Virginia where the owners are
natural persons or their estates who own in their own name no more than two
single-family residences subject to a rental agreement; and
Occupancy in a campground as defined in § 35.1-1.
Application Deposit and Application Fee

As set forth in § 55-248.6:1 any landlord may require a refundable application deposit
in addition to a nonrefundable application fee. If the applicant fails to rent the unit
for which application was made, from the application deposit the landlord shall
refund to the applicant within 20 days after the applicant's failure to rent the unit or
the landlord's rejection of the application all sums in excess of the landlord's actual
expenses and damages together with an itemized list of said expenses and damages.
Terms and Conditions of Rental Agreement

As set forth in § 55-248.7, a landlord and tenant may include in a rental agreement,
terms and conditions not prohibited by this chapter or other rule of law, including
rent, charges for late payment of rent, term of the agreement, automatic renewal of
the rental agreement, requirements for notice of intent to vacate or terminate the
rental agreement, and other provisions governing the rights and obligations of the
parties.
In the absence of a rental agreement, the tenant shall pay as rent the fair rental value
for the use and occupancy of the dwelling unit. Rent shall be payable without demand
or notice at the time and place agreed upon by the parties.

Unless otherwise agreed, rent is payable at the place designated by the landlord and
periodic rent is payable at the beginning of any term of one month or less and
otherwise in equal installments at the beginning of each month.
Unless the rental agreement fixes a definite term, the tenancy shall be week to week
in case of a roomer who pays weekly rent, and in all other cases month to month.
A copy of any written rental agreement signed by both the tenant and the landlord
shall be provided to the tenant within one month of the effective date of the written
rental agreement. The failure of the landlord to deliver such a rental agreement shall
not affect the validity of the agreement. The landlord shall provide the tenant with a
written receipt, upon request from the tenant, whenever the tenant pays rent in the
form of cash or money order.
Prepaid rent
As set forth in § 55-248.7:1, a landlord and a tenant may agree in a rental agreement
that the tenant pay prepaid rent. If a landlord receives prepaid rent, it shall be placed
in an escrow account in a federally insured depository in Virginia by the end of the
fifth business day following receipt and shall remain in the account until such time
as the prepaid rent becomes due. Unless the landlord has otherwise become entitled
to receive any portion of the prepaid rent, it shall not be removed from the escrow
account required by this section without the written consent of the tenant.

Landlord May Obtain Certain Insurance for Tenant
As set forth in § 55-248.7:2;
Damage Insurance
A landlord may require as a condition of tenancy that a tenant have commercial
insurance coverage as specified in the rental agreement to secure the performance
by the tenant of the terms and conditions of the rental agreement and pay for the
cost of premiums for such insurance coverage obtained by the landlord, generally
known as "damage insurance."
Renter's Insurance
A landlord may require as a condition of tenancy that a tenant have renter's
insurance as specified in the rental agreement that is a combination multi-peril policy
containing the fire, miscellaneous property, and personal liability coverage insuring
personal property located in residential units not occupied by the owner.
Effect of Unsigned or Undelivered Rental Agreement

As set forth in § 55-248.8, if the landlord does not sign and deliver a written rental
agreement signed and delivered to him by the tenant, acceptance of rent without
reservation by the landlord gives the rental agreement the same effect as if it had
been signed and delivered by the landlord.
If the tenant does not sign and deliver a written rental agreement signed and
delivered to him by the landlord, acceptance of possession or payment of rent
without reservation gives the rental agreement the same effect as if it had been
signed and delivered by the tenant.

Prohibited Provisions in Rental Agreements
As set forth in § 55-248.9 a rental agreement shall not contain provisions that the
tenant:
Agrees to waive or forego rights or remedies under this chapter;

Agrees to pay the landlord's attorney's fees except as provided in this chapter;
Agrees as a condition of tenancy in public housing to a prohibition or
restriction of any lawful possession of a firearm within individual dwelling units
unless required by federal law or regulation; or
Agrees to both the payment of a security deposit and the provision of a bond
or commercial insurance policy purchased by the tenant to secure the
performance of the terms and conditions of a rental agreement, if the total of
the security deposit and the bond or insurance premium exceeds the amount
of two months' periodic rent.
Confidentiality of Tenant Records

As set forth in § 55-248.9:1, no landlord or managing agent shall release
information about a tenant or prospective tenant in possession of the landlord to a
third party unless:
The tenant or prospective tenant has given prior written consent;

The information is a matter of public record as defined in § 2.2-3701;
The information is a summary of the tenant's rent payment record, including
the amount of the tenant's periodic rent payment;
The information is a copy of a material noncompliance notice that has not
been remedied or, termination notice given to the tenant under § 55-
248.31 and the tenant did not remain in the premises thereafter;
The information is requested by a local, state, or federal law-enforcement or
public safety official in the performance of his duties;
The information is requested pursuant to a subpoena in a civil case;
The information is requested by a local commissioner of the revenue in
accordance with § 58.1-3901;
The information is requested by a contract purchaser of the landlord's
property; provided the contract purchaser agrees in writing to maintain the
confidentiality of such information;

The information is requested by a lender of the landlord for financing or
refinancing of the property;
The information is requested by the commanding officer, military housing
officer, or military attorney of the tenant;
The third party is the landlord's attorney or the landlord's collection agency;
The information is otherwise provided in the case of an emergency; or
The information is requested by the landlord to be provided to the managing
agent, or a successor to the managing agent.
Landlord and Tenant Remedies for Abuse of Access

As set forth in § 55-248.10:1, if the tenant refuses to allow lawful access, the landlord
may obtain injunctive relief to compel access, or terminate the rental agreement. In
either case, the landlord may recover actual damages and reasonable attorney's
fees. If the landlord makes an unlawful entry or a lawful entry in an unreasonable
manner or makes repeated demands for entry otherwise lawful but which have the
effect of unreasonably harassing the tenant, the tenant may obtain injunctive relief
to prevent the recurrence of the conduct, or terminate the rental agreement. In
either case, the tenant may recover actual damages and reasonable attorney's fees.
Landlord Obligations
Read the following to learn more details about Landlord obligations in the Virginia
Inspection of Premises
As set forth in § 55-248.11:1;
The landlord shall, within five days after occupancy of a dwelling unit, submit
a written report to the tenant, for his safe keeping, itemizing damages to the
dwelling unit existing at the time of occupancy, which record shall be
deemed correct unless the tenant objects thereto in writing within five days
after receipt thereof.

The landlord may adopt a written policy allowing the tenant to prepare the
written report of the move-in inspection, in which case the tenant shall submit
a copy to the landlord, which record shall be deemed correct unless the
landlord objects thereto in writing within five days after receipt thereof.
The landlord and the tenant may prepare the written report of the move-in
inspection jointly, in which case both the landlord and the tenant shall sign the
written report and receive a copy thereof, at which time the inspection record
shall be deemed correct.
Disclosure of Mold in Dwelling Units

As set forth in § 55-248.11:2, as part of the written report of the move-in inspection
required by § 55-248.11:1, the landlord shall disclose whether there is any visible
evidence of mold in areas readily accessible within the interior of the dwelling unit. If
the landlord's written disclosure states that there is no visible evidence of mold in
the dwelling unit, this written statement shall be deemed correct unless the tenant
objects thereto in writing within five days after receiving the report.
If the landlord's written disclosure states that there is visible evidence of mold in the
dwelling unit, the tenant shall have the option to terminate the tenancy and not take
possession or remain in possession of the dwelling unit. If the tenant requests to
take possession, or remain in possession, of the dwelling unit, notwithstanding the
presence of visible evidence of mold, the landlord shall promptly remediate the mold
condition but in no event later than five business days thereafter and re-inspect the
dwelling unit to confirm there is no visible evidence of mold in the dwelling unit and
reflect on a new report that there is no visible evidence of mold in the dwelling unit
upon re-inspection.

General Disclosure
As set forth in § 55-248.12, the landlord or his agent must disclose the following:
The person or persons authorized to manage the premises; and

Notify the tenant of a sale and the name and address of the purchaser and a
telephone number at which such purchaser can be located.
Disclosure that the property is located in a noise zone or accident potential
zone, or both, as designated by the locality on its official zoning map
Defective drywall
Property previously used to manufacture methamphetamine
Landlord to Maintain Fit Premises

As set forth in § 55-248.13, the landlord shall:
Comply with the requirements of applicable building and housing codes

materially affecting health and safety;
Make all repairs and do whatever is necessary to put and keep the premises
in a fit and habitable condition;
Keep all common areas shared by two or more dwelling units of the premises
in a clean and structurally safe condition;
Maintain in good and safe working order and condition all electrical, plumbing,
sanitary, heating, ventilating, air-conditioning and other facilities and
appliances, including elevators, supplied or required to be supplied by him;
Maintain the premises in such a condition as to prevent the accumulation of
moisture and the growth of mold;
Provide and maintain appropriate receptacles and conveniences, in common
areas, for the collection, storage, and removal of ashes, garbage, rubbish and
other waste incidental to the occupancy of two or more dwelling units and
arrange for the removal of same;
Supply running water and reasonable amounts of hot water at all times and
reasonable air conditioning if provided and heat in season;
Maintain any carbon monoxide alarm that has been installed by the landlord
in a dwelling unit.

Landlord to Provide Locks and Peepholes
As set forth in § 55-248.13:1, the governing body of any county, city or town may
require by ordinance that any landlord who rents five or more dwelling units in any
one building shall install:
Dead-bolt locks which meet the requirements of the Uniform Statewide

Building Code (§ 36-97 et seq.) for new multi-family construction and
peepholes in any exterior swinging entrance door to any such unit; however,
any door having a glass panel shall not require a peephole.
Manufacturer's locks which meet the requirements of the Uniform Statewide
Building Code and removable metal pins or charlie bars in accordance with the
Uniform Statewide Building Code on exterior sliding glass doors located in a
building at any level or levels designated in the ordinance.
Locking devices which meet the requirements of the Uniform Statewide
Building Code on all exterior windows.
Notice to Tenants for Insecticide or Pesticide Use

As set forth in § 55-248.13:3, the landlord shall give written notice to the tenant no
less than forty-eight hours prior to his application of an insecticide or pesticide in the
tenant's dwelling unit unless the tenant agrees to a shorter notification period. If a
tenant requests the application of the insecticide or pesticide, the forty-eight-hour
notice is not required.
In addition, the landlord shall post notice of all insecticide or pesticide applications
in areas of the premises other than the dwelling units. Such notice shall consist of
conspicuous signs placed in or upon such premises where the insecticide or pesticide
will be applied at least forty-eight hours prior to the application.

Security Deposits
As set forth in § 55-248.15:1, a landlord may not demand or receive a security deposit,
however denominated, in an amount or value in excess of two months' periodic
rent. Upon termination of the tenancy, such security deposit, whether it is property
or money held by the landlord as security as hereinafter provided may be applied
solely by the landlord
to the payment of accrued rent and including the reasonable charges for late
payment of rent specified in the rental agreement;
to the payment of the amount of damages which the landlord has suffered by
reason of the tenant's noncompliance with § 55-248.16, less reasonable wear
and tear; or
to other damages or charges as provided in the rental agreement. The security
deposit and any deductions, damages and charges shall be itemized by the
landlord in a written notice given to the tenant, together with any amount due
the tenant within 45 days after termination of the tenancy and delivery of
possession.

The tenant may provide the landlord with written confirmation of the payment of
the final water, sewer, or other utility bill for the dwelling unit. Upon request by the
landlord to a tenant to vacate, or within five days after receipt of notice by the
landlord of the tenant's intent to vacate, the landlord shall make reasonable efforts
to advise the tenant of the tenant's right to be present at the landlord's inspection
of the dwelling unit for the purpose of determining the amount of security deposit
to be returned.
If the tenant desires to be present when the landlord makes the inspection, he shall
so advise the landlord in writing who, in turn, shall notify the tenant of the time and
date of the inspection, which must be made within 72 hours of delivery of possession.

Upon completion of the inspection attended by the tenant, the landlord shall furnish
the tenant with an itemized list of damages to the dwelling unit known to exist at the
time of the inspection.
Tenant Obligations
Read the following to learn more details about Tenant obligations in the Virginia
Tenant to maintain dwelling unit

As set forth in § 55-248.16, in addition to the provisions of the rental agreement, the
tenant shall:
Comply with all obligations primarily imposed upon tenants by applicable

provisions of building and housing codes materially affecting health and
safety;
Keep that part of the dwelling unit and the part of the premises that he
occupies and uses as clean and safe as the condition of the premises permit;
Keep that part of the dwelling unit and the part of the premises that he
occupies free from insects and pests, as those terms are defined in § 3.2-3900,
and to promptly notify the landlord of the existence of any insects or pests;
Remove from his dwelling unit all ashes, garbage, rubbish and other waste in
a clean and safe manner and in the appropriate receptacles provided by the
landlord pursuant to § 55-248.13, if such disposal is on the premises;
Keep all plumbing fixtures in the dwelling unit or used by the tenant as clean
as their condition permits;
Use in a reasonable manner all utilities and all electrical, plumbing, sanitary,
heating, ventilating, air-conditioning and other facilities and appliances
including elevators in the premises, and keep all utility services paid for by the
tenant to the utility service provider or its agent on at all times during the term
of the rental agreement;
Not deliberately or negligently destroy, deface, damage, impair or remove any
part of the premises or permit any person to do so whether known by the
tenant or not;

Not remove or tamper with a properly functioning smoke detector installed by
the landlord, including removing any working batteries, so as to render the
detector inoperative and shall maintain the smoke detector in accordance with
the uniform set of standards for maintenance of smoke detectors established
in the Uniform Statewide Building Code (§ 36-97 et seq.);
Not remove or tamper with a properly functioning carbon monoxide alarm
installed by the landlord, including removing any working batteries, so as to
render the carbon monoxide detector inoperative and shall maintain the
carbon monoxide alarm in accordance with the uniform set of standards for
maintenance of carbon monoxide alarms established in the Uniform
Statewide Building Code (§ 36-97 et seq.);
Use reasonable efforts to maintain the dwelling unit and any other part of the
premises that he occupies in such a condition as to prevent accumulation of
moisture and the growth of mold, and to promptly notify the landlord of any
moisture accumulation that occurs or of any visible evidence of mold
discovered by the tenant;
Not paint or disturb painted surfaces or make alterations in the dwelling unit
without the prior written approval of the landlord.
Be responsible for his conduct and the conduct of other persons on the
premises with his consent whether known by the tenant or not, to ensure that
his neighbors' peaceful enjoyment of the premises will not be disturbed; and
Rules and Regulations

As set forth in § 55-248.17, a landlord, from time to time, may adopt rules or
regulations, however described, concerning the tenants' use and occupancy of the
premises. Any such rule or regulation is enforceable against the tenant only if:
Its purpose is to promote the convenience, safety or welfare of the tenants in

the premises, preserve the landlord's property from abusive use or make a
fair distribution of services and facilities held out for the tenants generally;
It is reasonably related to the purpose for which it is adopted;
It applies to all tenants in the premises in a fair manner;
It is sufficiently explicit in its prohibition, direction or limitation of the tenant's
conduct to fairly inform him of what he must or must not do to comply;
It is not for the purpose of evading the obligations of the landlord; and

The tenant has been provided with a copy of the rules and regulations or
changes thereto at the time he enters into the rental agreement or when they
are adopted.
Access; Consent; Correction of Non-Emergency Conditions

As set forth in § 55-248.18, the tenant shall not unreasonably withhold consent to the
landlord to enter into the dwelling unit in the following circumstances
to inspect the premises,

make necessary or agreed on repairs,
decorations, alterations or improvements,
supply necessary or agreed services or
exhibit the dwelling unit to prospective or actual purchasers, mortgagees,
tenants, workmen or contractors
Access following entry of certain court orders
24-hour notice is required unless it is an emergency
Use and Occupancy by Tenant

As set forth in § 55-248.19, unless otherwise agreed, the tenant shall occupy his
dwelling unit only as a residence.
Tenant to surrender possession of dwelling unit

As set forth in § 55-248.20, at the termination of the term of tenancy, whether by
expiration of the rental agreement or by reason of default by the tenant, the tenant
shall promptly vacate the premises, removing all items of personal property and
leaving the premises in good and clean order, reasonable wear and tear excepted. If
the tenant fails to vacate, the landlord may bring an action for possession and
damages, including reasonable attorney's fees.
Tenant Remedies
Read the following to learn more details about Tenant remedies in the Virginia

Non-Compliance by Landlord
As set forth in § 55-248.21, except as provided in this chapter, if there is a material
noncompliance by the landlord with the rental agreement or a noncompliance with
any provision of this chapter, materially affecting health and safety, the tenant may
serve a written notice on the landlord specifying the acts and omissions constituting
the breach and stating that the rental agreement will terminate upon a date not less
than 30 days after receipt of the notice if such breach is not remedied in 21 days.
Early Termination of Rental Agreement by Military Personnel

As set forth in § 55-248.21:1, any member of the armed forces of the United States
or a member of the National Guard serving on full-time duty or as a Civil Service
technician with the National Guard may terminate his rental agreement if the
member
has received permanent change of station orders to depart 35 miles or more
(radius) from the location of the dwelling unit;
has received temporary duty orders in excess of three months' duration to
depart 35 miles or more (radius) from the location of the dwelling unit;
is discharged or released from active duty with the armed forces of the United
States or from his full-time duty or technician status with the National Guard;
or
is ordered to report to government-supplied quarters resulting in the
forfeiture of basic allowance for quarters.
Tenants who qualify to terminate a rental agreement shall do so by serving on the

landlord a written notice of termination to be effective on a date stated therein, such
date to be not less than 30 days after the first date on which the next rental payment
is due and payable after the date on which the written notice is given.
The termination date shall be no more than 60 days prior to the date of departure
necessary to comply with the official orders or any supplemental instructions for
interim training or duty prior to the transfer. Prior to the termination date, the tenant
shall furnish the landlord with a copy of the official notification of the orders or a
signed letter, confirming the orders, from the tenant's commanding officer.

The landlord may not charge any liquidated damages.
Wrongful Failure to Supply Heat, Water, Hot Water or Essential

Services
As set forth in § 55-248.23, if contrary to the rental agreement or provisions of this
chapter the landlord willfully or negligently fails to supply heat, running water, hot
water, electricity, gas or other essential service, the tenant must serve a written
notice on the landlord specifying the breach, if acting under this section and, in such
event, and after a reasonable time allowed the landlord to correct such breach, may:
Recover damages based upon the diminution in the fair rental value of the
dwelling unit; or
Procure reasonable substitute housing during the period of the landlord's
noncompliance, in which case the tenant is excused from paying rent for the
period of the landlord's noncompliance, as determined by the court.
Fire or Casualty Damage

As set forth in § 55-248.24, if the dwelling unit or premises are damaged or destroyed
by fire or casualty to the extent that the tenant's enjoyment of the dwelling unit is
substantially impaired or required repairs can only be accomplished if the tenant
vacates the dwelling unit, either the tenant or the landlord may terminate the rental
agreement. The tenant may terminate the rental agreement by vacating the
premises and within 14 days thereafter, serve on the landlord a written notice of his
intention to terminate the rental agreement, in which case the rental agreement
terminates as of the date of vacating; or if continued occupancy is lawful, § 55-
226 shall apply.

Tenant's Remedies for Landlord's Unlawful Ouster, Exclusion or
Diminution of Service
As set forth in § 55-248.26, if the landlord unlawfully removes or excludes the tenant
from the premises or willfully diminishes services to the tenant by interrupting or
causing the interruption of gas, water, or other essential service to the tenant, the
tenant may obtain an order from a general district court to recover possession,
require the landlord to resume any such interrupted utility service, or terminate the
rental agreement and, in any case, recover the actual damages sustained by him and
a reasonable attorney fee. If the rental agreement is terminated the landlord shall
return all of the security deposit in accordance with § 55-248.15:1.
Landlord Remedies
Read the following to learn more details about Landlord remedies in the Virginia
Non-Compliance with Rental Agreement

As set forth in § 55-248.31, If rent is unpaid when due, or landlord received an
insufficient funds notice, and the tenant fails to pay rent within five days after
written notice is served on him notifying the tenant of his nonpayment, and of the
landlord's intention to terminate the rental agreement if the rent is not paid within
the five-day period, the landlord may terminate the rental agreement and proceed
to obtain possession of the premises as provided in § 55-248.35.
Landlord’s Acceptance of Rent with Reservation

Provides that a landlord may accept full or partial payment of rent and receive an
order of possession from a court pursuant to an unlawful detainer action, then
proceed with eviction. The landlord must have stated in a written notice to the
tenant that any amounts owed to the landlord by the tenant would be accepted
with reservation and would not constitute a waiver of the landlord’s right to evict
the tenant.

This notice may be included in the termination notice given by the landlord to the
tenants, and there is no requirement for the landlord to give the tenant a
subsequent written notice. The purpose of this legislation is to clarify the rent with
reservation process by removing the requirement for a second notice, for the
period, between entry of an order of possession and prior to eviction.
Sheriff's Authorized to Serve Certain Notices

As set forth in § 55-248.31:1, the sheriff of any county or city, upon request, may
deliver any notice to a tenant on behalf of a landlord or lessor under the provisions
of § 55-225 or § 55-248.31. For this service, the sheriff shall be allowed a fee not to
exceed twelve dollars.
Remedies for Absence, Nonuse and Abandonment

As set forth in § 55-248.33, if the rental agreement requires the tenant to give notice
to the landlord of an anticipated extended absence in excess of seven days and the
tenant fails to do so, the landlord may recover actual damages from the tenant.
During any absence of the tenant in excess of seven days, the landlord may enter the
dwelling unit at times reasonably necessary to protect his possessions and property.
The rental agreement is deemed to be terminated by the landlord as of the date of
abandonment by the tenant.
If the landlord cannot determine whether the premises have been abandoned by the
tenant, the landlord shall serve written notice on the tenant in accordance with § 55-
248.6 requiring the tenant to give written notice to the landlord within seven days
that the tenant intends to remain in occupancy of the premises. If the tenant gives
such written notice to the landlord, or if the landlord otherwise determines that the
tenant remains in occupancy of the premises, the landlord shall not treat the
premises as having been abandoned.

Unless the landlord receives written notice from the tenant or otherwise determines
that the tenant remains in occupancy of the premises, upon the expiration of seven
days from the date of the landlord's notice to the tenant, there shall be rebuttable
presumption that the premises have been abandoned by the tenant and the rental
agreement shall be deemed to terminate on that date.
Periodic Tenancy; Holdover Remedies

As set forth in § 55-248.37, the landlord or the tenant may terminate a week-to-week
tenancy by serving a written notice on the other at least seven days prior to the next
rent due date.
The landlord or the tenant may terminate a month-to-month tenancy by serving a

written notice on the other at least 30 days prior to the next rent due date, unless
the rental agreement provides for a different notice period. The landlord and the
tenant may agree in writing to an early termination of a rental agreement.
If the tenant remains in possession without the landlord's consent after expiration
of the term of the rental agreement or its termination, the landlord may bring an
action for possession and may also recover actual damages, reasonable attorney
fees, and court costs, unless the tenant proves by a preponderance of the evidence
that the failure of the tenant to vacate the dwelling unit as of the termination date
was reasonable. The landlord may include in the rental agreement a reasonable
liquidated damage penalty, not to exceed an amount equal to 150 percent of the per
diem of the monthly rent, for each day the tenant remains in the dwelling unit after
the termination date specified in the landlord's notice.

In the event of termination of a rental agreement and the tenant remains in
possession with the agreement of the landlord either as a hold-over tenant or a
month-to-month tenant and no new rental agreement is entered into, the terms of
the terminated agreement shall remain in effect and govern the hold-over or month-
to-month tenancy, except that the amount of rent shall be either as provided in the
terminated rental agreement or the amount set forth in a written notice to the
tenant, provided that such new rent amount shall not take effect until the next rent
due date coming 30 days after the notice.
Disposal of Property Abandoned by Tenants

As set forth in § 55-248.38:1, if any items of personal property are left in the
dwelling unit, the premises, or in any storage area provided by the landlord, after
the rental agreement has terminated and delivery of possession has occurred, the
landlord may consider such property to be abandoned. The landlord may dispose
of the property so abandoned as the landlord sees fit or appropriate, provided he
has:
given a termination notice to the tenant in accordance with this chapter, which
includes a statement that any items of personal property left in the dwelling
unit or the premises would be disposed of within the 24-hour period after
termination,
given written notice to the tenant in accordance with § 55-248.33, which
includes a statement that any items of personal property left in the dwelling
unit or the premises would be disposed of within the 24-hour period after
expiration of the seven-day notice period, or (
given a separate written notice to the tenant, which includes a statement that
any items of personal property left in the dwelling unit or the premises would
be disposed of within 24 hours after the expiration of a 10-day period from
the date such notice was given to the tenant. Any written notice to the tenant
shall be given in accordance with § 55-248.6.

The tenant shall have the right to remove his personal property from the
dwelling unit or the premises at reasonable times during the 24-hour period
after termination or at such other reasonable times until the landlord has
disposed of the remaining personal property of the tenant.
Disposal of Property of Deceased Tenants

As set forth in § 55-248.38:3 if a tenant, who is the sole occupant of the dwelling unit,
dies, and there is no person authorized by order of the circuit court to handle probate
matters for the deceased tenant, the landlord may dispose of the personal property
left in the dwelling unit or upon the premises. However, the landlord shall give at
least 10 days' written notice to
the person identified in the rental application, lease agreement, or other

landlord document as the authorized person to contact in the event of the
death or emergency of the tenant or
the tenant in accordance with § 55-248.6 if no such person is identified in the
rental application, lease agreement, or other landlord document as the
authorized contact person. The notice shall include a statement that any items
of personal property left on the premises would be treated as abandoned
property and disposed of in accordance with the provisions of § 55-248.38:1,
if not claimed within 10 days.
Lesson Summary
It is important for real estate licensees who lease, rent, and manage residential
property for their clients and customers to have an in-depth understanding of the
Virginia Residential Landlord and Tenant Act. Not knowing the law is a recipe for
disaster. Licensees have an obligation to inform clients and customers of their rights
under the law. With this knowledge of the law, a licensee can feel more confident of
how to proceed properly so the license is not jeopardized.

Lesson 7: Virginia Underground Utility Damage
Prevention Act
Lesson Introduction
The purpose of Virginia’s Underground Utility Damage Prevention Act, which was
enacted in 1979 by the legislature, is to protect utility companies, contractors,
excavators and the general public through the prevention of damage to
underground utilities. The State Corporation Commission shall enforce the
provisions of the Underground Utility Damage Prevention Act. The Commission may
promulgate any rules or regulations necessary to implement the Commission's
authority to enforce the law.

Exemptions to the law

Notification required prior to excavation
Duties of notification
Liability of operator
Exemptions; Routine Maintenance

As set forth in § 56-265.15:1, the following are exempt from this law:
Any hand digging performed by an owner or occupant of property.

The tilling of soil for agricultural purposes.
Any excavation done by a railroad when the excavation is made entirely on the
land which the railroad owns and on which the railroad operates, provided
there is no encroachment on any operator's rights-of-way or easements.
An excavation or demolition during an emergency, as defined in § 56-265.15,
provided all reasonable precaution has been taken to protect the
underground utility lines.
Any excavation for routine pavement maintenance, including patch type
paving or the milling of pavement surfaces, upon the paved portion of any
street, road, or highway of the Commonwealth provided that any such
excavation does not exceed a depth of twelve inches (0.3 meter).
Any excavation for the purpose of mining pursuant to and in accordance with
the requirements of a permit issued by the Department of Mines, Minerals
and Energy.
Any hand digging performed by an operator to locate the operator's utility
lines in response to a notice of excavation from the notification center,
provided all reasonable precaution has been taken to protect the
underground utility lines.
Any installation of a sign that does not involve excavation as defined in § 56-
265.15.

Notification Required Prior to Excavation or Demolition
As set forth in § 56-265.17, no person, including operators, shall make or begin any
excavation or demolition without first notifying the notification center for that area.
A “notification center" is an organization whose membership is open to all operators
of underground facilities located within the notification center's designated service
area, which maintains a database, provided by its member operators, that includes
the geographic areas in which its member operators desire transmissions of notices
of proposed excavation, and which has the capability to transmit, within one hour of
receipt, notices of proposed excavation to member operators by teletype, telecopy,
personal computer, or telephone.
Notice to the notification center shall be deemed to be notice to each operator who
is a member of the notification center. The notification center shall provide the
excavator with the identity of utilities that will be notified of the proposed excavation
or demolition. Except for counties, cities, and towns, an excavator who willfully fails
to notify the notification center of proposed excavation or demolition shall be liable
to the operator whose facilities are damaged by that excavator, for three times the
cost to repair the damaged property, provided the operator is a member of the
notification center. The total amount of punitive damages awarded under this
section, as distinguished from actual damages, shall not exceed $10,000 in any single
cause of action.
Duties of Notification Center Upon Notification by Person

Intending to Excavate
As set forth in § 56-265.22, the notification center shall, upon receiving notice by a
person, notify all member operators whose underground lines are located in the area
of the proposed project, excavation or demolition.

The notification center shall also indicate the names of those operators being
notified to the person providing notice. The notification center shall notify
excavators, within the time frame allowed by the law to mark underground utility
lines.
Liability of Operator and Excavator; Penalties

As set forth in §56-265.25 if any underground utility line is damaged as a proximate
result of a person's failure to comply with any provision of this chapter, that person
shall be liable to the operator of the underground utility line for the total cost to
repair the damaged facilities.
Any person who willfully fails to notify the notification center of proposed excavation
or demolition shall be liable to the operator.
If, after receiving proper notice, an operator fails to discharge a duty imposed by any
provision of this chapter and an underground utility line of such operator is
damaged, as a proximate result of the operator's failure to discharge such duty, by
any person who has complied with all of the provisions of this chapter, such person
shall not be so liable.
Lesson Summary
Virginia’s Underground Utility Damage Prevention Act requires advanced notification
to the center so the excavator is aware of the location of any and all utilities that may
be in the path of excavation. This law goes a long way to protect utility companies,
contractors, excavators and the general public through the prevention of damage to
underground utilities. Know before you dig!
Please return to the course player to take the Module Quiz.

Real Estate - Module 3

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Real Estate - Module 3

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Virginia Principles and Practice

Module Three: Specific Acts Pertaining to Real Estate Practice ................................ 3

Virginia Principles and Practices of Real Estate 3

Virginia Principles and Practices of Real Estate 4

Disclose the requirements of the Virginia Residential Property Disclosure Act.

Application fee: Any nonrefundable fee, which is paid by a tenant to a landlord or

Common interest community: A community located within the Commonwealth

Virginia Principles and Practices of Real Estate 5

Common interest community manager: Means a person or business entity,

Virginia Principles and Practices of Real Estate 6

Notification center: An organization whose membership is open to all operators of

Virginia Principles and Practices of Real Estate 7

Virginia Principles and Practices of Real Estate 8

This lesson focuses on the following additional topics:

Property Disclosure Form (Chesapeake Bay Act)

Exemptions to The Virginia Residential Property Disclosure Act

Virginia Principles and Practices of Real Estate 9

Notwithstanding the provisions of subdivision 9 of this section, the builder of a new

Virginia Principles and Practices of Real Estate 10

Residential Property Disclosure Statement

Virginia Principles and Practices of Real Estate 11

Historic District Ordinance

Resource Protection Areas

Virginia Principles and Practices of Real Estate 12

Dam Break Inundation Zones

Storm Water Detention

Virginia Principles and Practices of Real Estate 13

Solar Energy Collection Devices

Special Flood Hazard Areas

(i) obtaining a flood certification or mortgage lender

Virginia Principles and Practices of Real Estate 14

Community Development Authority

Aircraft Noise/Crash Disclosure

Virginia Principles and Practices of Real Estate 15

Tourism Activity Zone

Property Previously Used to Manufacture Methamphetamine

Time for Disclosure; Termination of Contract.

Virginia Principles and Practices of Real Estate 16

In order to terminate a real estate purchase contract when permitted

Virginia Principles and Practices of Real Estate 17

If the purchaser terminates a real estate purchase contract in compliance with

C. Notwithstanding the provisions of subsection B of § 55-524, no purchaser of

Virginia Principles and Practices of Real Estate 18

B. The delivery by a public agency or other person, as described in subsection C

C. The delivery by the owner of a report or opinion prepared by a licensed

Virginia Principles and Practices of Real Estate 19

However, at or before settlement, the owner shall be required to disclose any

Duties of Real Estate Licensees

Virginia Principles and Practices of Real Estate 20

B. The purchaser's remedies hereunder for the failure of an owner to comply

Virginia Principles and Practices of Real Estate 21

Here are some useful definitions:

Disclosure in the context of Electronic Media Advertising

Virginia Principles and Practices of Real Estate 22

Disclosure in the context of all other Advertising means

Electronic Media Advertising

Virginia Principles and Practices of Real Estate 23

Virginia Principles and Practices of Real Estate 24

The board is responsible for administering Virginia's common interest community

Common Interest Communities (Code of Virginia, Title 54.1, Chapter 23.3)

Virginia Principles and Practices of Real Estate 25

The board is also responsible for establishing regulations regarding the

This lesson focuses on the following topics:

The Common Interest Community