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2004 SESSION

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HB 1435 Real Estate Cooperative Act; changes in provisions.

Introduced by: Terrie L. Suit | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Virginia Real Estate Cooperative Act. Requires certain disclosures in the public offering statement of a cooperative relating to the assumption of debt by the association. The bill also provides that during development of a cooperative containing additional land or withdrawable land, phase lines created by the cooperative instruments shall not be considered property lines for purposes of subdivision. If the cooperative may no longer be expanded by the addition of additional land, then the owner of the land not part of the cooperative shall subdivide such land prior to its conveyance, unless such land is subject to an approved site plan, or prior to modification of such approved site plan. In the event of any conveyance of land within phase lines of the cooperative, the cooperative and any lot created by such conveyance shall be deemed to comply with the local subdivision ordinance, provided such land is subject to an approved site plan. The bill also provides for the appointment of members of the executive board and the termination of certain management contracts, and provides that unless approved by an 80 percent vote of the proprietary lessees other than the declarant (i) the association shall not assume or take subject to any debt incurred in the original acquisition, development or construction of or the conversion of the cooperative in excess of the amounts disclosed in the public offering statement pursuant to § 55-478 or § 55-479, nor shall the cooperative or any proprietary lessee's interest be encumbered by a security interest for any greater amount incurred for such purposes and (ii) the declarant may not amend the public offering statement to change the amounts disclosed after conveyance of the first unit to a proprietary lessee. In addition, no interest shall accrue on any debt to be assumed by the association until such debt has been assumed. Notwithstanding the foregoing, the amounts disclosed shall not be subject to adjustment such that the association or the proprietary lessees are subjected to the construction or market risks of the declarant.


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