18 Va. Admin. Code § 48-30-180

Current through Register Vol. 41, No. 9, December 16, 2024
Section 18VAC48-30-180 - Contents of public offering statement
A. A cover, if used, must be blank or bear identification information only.
B. The first page of the public offering statement shall be substantially as follows:

PURCHASER SHOULD READ THIS DOCUMENT FOR THE PURCHASER'S PROTECTION

PUBLIC OFFERING STATEMENT

NAME OF CONDOMINIUM:

__________________

LOCATION OF CONDOMINIUM:

__________________

NAME OF DECLARANT:

__________________

ADDRESS OF DECLARANT:

__________________

EFFECTIVE DATE OF PUBLIC OFFERING STATEMENT:

__________________

REVISED:

__________________

THE PURCHASER SHOULD READ THIS DOCUMENT FOR THE PURCHASER'S OWN PROTECTION. Living in a common interest community carries with it certain rights, responsibilities, and benefits, including certain financial obligations, rights, and restrictions concerning the use and maintenance of units and common elements, and decision-making authority vested in the unit owners' association. The purchaser will be bound by the provisions of the condominium instruments and should review the Public Offering Statement, the condominium instruments, and other exhibits carefully prior to purchase.

This Public Offering Statement presents information regarding condominium units being offered for sale by the declarant. Virginia law requires that a Public Offering Statement be given to every Purchaser in order to provide full and fair disclosure of the significant features of the condominium units being offered. The Public Offering Statement is not intended, however, to be all-inclusive. The Purchaser should consult other sources for details not covered by the Public Offering Statement.

The Public Offering Statement summarizes information and documents furnished by the declarant to the Virginia Common Interest Community Board. The Board has carefully reviewed the Public Offering Statement to ensure that it contains required disclosures, but the Board does not guarantee the accuracy or completeness of the Public Offering Statement. In the event of any inconsistency between the Public Offering Statement and the material it is intended to summarize, the latter will control.

Under Virginia law a purchaser of a condominium unit is afforded a 5-day period during which the purchaser may cancel the purchase contract of sale and obtain a full refund of any sums deposited in connection with the purchase contract. The 5-day period begins on the purchase contract date or the date of delivery of a Public Offering Statement, whichever is later. The purchaser may, if practicable, inspect the condominium unit and the common elements and obtain professional advice. If the purchaser elects to cancel, the purchaser must deliver notice of cancellation to the declarant pursuant to § 55.1-1974 of the Code of Virginia.

Allegations of violation of any law or regulation contained in the Virginia Condominium Act or the Condominium Regulations should be reported to the Virginia Common Interest Community Board, Perimeter Center, Suite 400, 9960 Mayland Drive, Richmond, Virginia 23233.

C. A summary of important considerations shall immediately follow the first page for the purpose of reinforcing the disclosure of significant information. The summary shall be titled as such and shall be introduced by the following statement:

"Following are important matters to be considered in acquiring a condominium unit. They are highlights only. The Public Offering Statement should be examined in its entirety to obtain detailed information."

Appropriate modifications shall be made to reflect facts and circumstances that may vary. The summary shall consist of, but not be limited to, the following, as applicable:

1. A statement on the governance of the condominium wherein unit owners are allocated votes for certain decisions of the association. In addition, the statement shall include that all unit owners will be bound by the decisions made by the association, even if the individual unit owner disagrees.
2. A statement concerning the decision-making authority of the executive board of the unit owners' association.
3. A statement regarding the payment of expenses of the association on the basis of a periodic budget, to include a disclosure of any provision for reserves, including a statement if there are no reserves.
4. A statement detailing the requirement for each unit owner to pay a periodic assessment and the inability to reduce the amount of an assessment by refraining from the use of the common elements.
5. A statement of the unit owner's responsibility to pay additional assessments, if any.
6. A statement regarding the consequences for failure to pay an assessment when due. The statement shall include reference to the enforcement mechanisms available to the association, including obtaining a lien against the condominium unit, pursuing civil action against the unit owner, and certain other penalties.
7. A statement that the declarant must pay assessments on unsold condominium units.
8. A statement indicating whether the declarant, its predecessors, or principal officer have undergone a debtor's relief proceeding.
9. A statement that the declarant will retain control of the unit owners' association for an initial period.
10. A statement indicating whether a managing agent will perform the routine operations of the unit owners' association. The statement shall include whether the managing agent is related to the declarant, director, or officer of the unit owners' association.
11. A statement indicating whether the declarant may lease unsold condominium units and a statement indicating whether the right of a unit owner to lease that owner's unit to another is subject to restrictions.
12. A statement indicating whether the declarant may expand or contract the condominium or convert convertible land or space without the consent of any unit owner.
13. A statement indicating whether the right of the unit owner to resell the owner's condominium unit is subject to restrictions.
14. A statement indicating whether the units are restricted to residential use and whether the units may be utilized for commercial, retail, or professional use. The statement shall provide detail if units have different voting rights. Further, the statement shall also detail whether the allocation of rights and responsibilities among commercial, retail, professional, or residential use units are the same.
15. A statement indicating whether approval of the declarant or unit owners' association is necessary in order for a unit owner to alter the structure of the unit or modify the exterior of the unit.
16. A statement regarding the obligation of the unit owners' association to obtain certain insurance benefiting the unit owner, along with the necessity for a unit owner to obtain other insurance.
17. A statement regarding the unit owner's obligation to pay real estate taxes.
18. A statement regarding any limits the declarant asserts on the association or the unit owner's right to bring legal action against the declarant. Nothing in this statement shall be deemed to authorize such limits where those limits are otherwise prohibited by law.
19. A statement that the association or unit owners are members of another association or obligated to perform duties or pay fees or charges to that association or entity.
20. A statement indicating whether the condominium is subject to development as a time-share.
21. A statement affirming that marketing and sale of condominium units will be conducted in accordance with the Virginia Fair Housing Law (§ 36-96.1 et seq. of the Code of Virginia) and the Virginia Condominium Act (Chapter 19 (§ 55.1-1900 et seq.) of Title 55.1 of the Code of Virginia).
D. The content after the summary of important considerations shall include the narrative sections in 18VAC48-30-190 through 18VAC48-30-360. Supplementary sections may be included as necessary.
E. Clear and legible copies of the following documents shall be attached as exhibits to the public offering statement:
1. The declaration;
2. The bylaws;
3. The projected budget;
4. Rules and regulations of the unit owners' association, if available;
5. Master association documents, if applicable;
6. Any management contract, along with the license number of the common interest community manager, if applicable;
7. Depiction of unit layouts;
8. Any lease of recreational areas;
9. Any contract or agreement affecting the use, maintenance, or access of all or any portion of the condominium, the nature, duration, or expense of which has a material impact on the operation and administration of the condominium;
10. Warranty information, if applicable; and
11. Other documents obligating the association or unit owner to perform duties or obligations or pay charges or fees.
F. Other information and documentation may be included as necessary to ensure full and fair disclosure. The board may also require additional information as necessary to ensure full and fair disclosure.

18 Va. Admin. Code § 48-30-180

Derived From Virginia Register Volume 31, Issue 20, eff. 8/1/2015; Amended, Virginia Register Volume 36, Issue 06, eff. 12/31/2019.

Statutory Authority: § 54.1-2349 of the Code of Virginia.