{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/55.1-1803.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/55.1-1803.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/55.1-1803.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/55.1-1803.html"}],"law_id":65739,"edition_id":1,"section_id":65739,"structure_id":13841,"section_number":"55.1-1803","catch_line":"Limitation on certain contracts and leases by declarant","history":"2012, c. 671, \u00a7 55-509.1:1; 2019, c. 712.","full_text":"A\n\nIf entered into any time prior to the expiration of the period of declarant control contemplated by the declaration, no contract or lease entered into with the declarant or any entity controlled by the declarant, management contract, or employment contract that is directly or indirectly made by or on behalf of the association, its board of directors, or the lot owners as a group shall be entered into for a period in excess of five years. Any such contract or agreement may be terminated without penalty by the association or its board of directors upon not less than 90 days’ written notice to the other party given no later than 60 days after the expiration of the period of declarant control contemplated by the declaration.B\n\nIf entered into any time prior to the expiration of the period of declarant control contemplated by the declaration, any contract or lease entered into with the declarant or any entity controlled by the declarant, management contract, or employment contract that is directly or indirectly made by or on behalf of the association, its board of directors, or the lot owners as a group may be renewed for periods not in excess of five years; however, at the end of any five-year period, the association or its board of directors may terminate any further renewals or extensions of such contract or lease.C\n\nIf entered into at any time prior to the expiration of the period of declarant control contemplated by the declaration, any contract, lease, or agreement, other than those subject to the provisions of subsection A or B, may be entered into by or on behalf of the association, its board of directors, or the lot owners as a group if such contract, lease, or agreement is bona fide and is commercially reasonable to the association at the time entered into under the circumstances.D\n\nThis section shall be strictly construed to protect the rights of the lot owners.","order_by":null,"text":{"0":{"id":238940,"text":"If entered into any time prior to the expiration of the period of declarant control contemplated by the declaration, no contract or lease entered into with the declarant or any entity controlled by the declarant, management contract, or employment contract that is directly or indirectly made by or on behalf of the association, its board of directors, or the lot owners as a group shall be entered into for a period in excess of five years. Any such contract or agreement may be terminated without penalty by the association or its board of directors upon not less than 90 days’ written notice to the other party given no later than 60 days after the expiration of the period of declarant control contemplated by the declaration.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":238941,"text":"If entered into any time prior to the expiration of the period of declarant control contemplated by the declaration, any contract or lease entered into with the declarant or any entity controlled by the declarant, management contract, or employment contract that is directly or indirectly made by or on behalf of the association, its board of directors, or the lot owners as a group may be renewed for periods not in excess of five years; however, at the end of any five-year period, the association or its board of directors may terminate any further renewals or extensions of such contract or lease.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":238942,"text":"If entered into at any time prior to the expiration of the period of declarant control contemplated by the declaration, any contract, lease, or agreement, other than those subject to the provisions of subsection A or B, may be entered into by or on behalf of the association, its board of directors, or the lot owners as a group if such contract, lease, or agreement is bona fide and is commercially reasonable to the association at the time entered into under the circumstances.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":238943,"text":"This section shall be strictly construed to protect the rights of the lot owners.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":13841,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13840,"metadata":{},"date_created":"2026-06-26 03:46:02","date_modified":"2026-06-26 03:46:02","permalink":{"id":246477,"object_type":"structure","relational_id":13841,"identifier":"1","token":"55.1\/IV\/18\/1","url":"\/55.1\/IV\/18\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13840,"edition_id":1,"name":"Property Owners' Association Act","identifier":"18","label":"chapter","depth":3,"order_by":1,"parent_id":12914,"metadata":{},"date_created":"2026-06-26 03:46:02","date_modified":"2026-06-26 03:46:02","permalink":{"id":246475,"object_type":"structure","relational_id":13840,"identifier":"18","token":"55.1\/IV\/18","url":"\/55.1\/IV\/18\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12914,"edition_id":1,"name":"Common Interest Communities","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12707,"metadata":{},"date_created":"2026-06-26 03:44:01","date_modified":"2026-06-26 03:44:01","permalink":{"id":246473,"object_type":"structure","relational_id":12914,"identifier":"IV","token":"55.1\/IV","url":"\/55.1\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12707,"edition_id":1,"name":"Property and Conveyances","identifier":"55.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":244769,"object_type":"structure","relational_id":12707,"identifier":"55.1","token":"55.1","url":"\/55.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65321,"structure_id":13841,"section_number":"55.1-1800","catch_line":"Definitions","url":"\/55.1-1800\/","token":"55.1\/IV\/18\/1\/55.1-1800","metadata":false},{"id":82472,"structure_id":13841,"section_number":"55.1-1801","catch_line":"Applicability","url":"\/55.1-1801\/","token":"55.1\/IV\/18\/1\/55.1-1801","metadata":false},{"id":85587,"structure_id":13841,"section_number":"55.1-1802","catch_line":"Developer to register and file annual report; payment of real estate taxes attributable to the common area","url":"\/55.1-1802\/","token":"55.1\/IV\/18\/1\/55.1-1802","metadata":false},{"id":65739,"structure_id":13841,"section_number":"55.1-1803","catch_line":"Limitation on certain contracts and leases by declarant","url":"\/55.1-1803\/","token":"55.1\/IV\/18\/1\/55.1-1803","metadata":false},{"id":61475,"structure_id":13841,"section_number":"55.1-1804","catch_line":"Documents to be provided by declarant upon transfer of control","url":"\/55.1-1804\/","token":"55.1\/IV\/18\/1\/55.1-1804","metadata":false},{"id":56849,"structure_id":13841,"section_number":"55.1-1805","catch_line":"Association charges","url":"\/55.1-1805\/","token":"55.1\/IV\/18\/1\/55.1-1805","metadata":false},{"id":65878,"structure_id":13841,"section_number":"55.1-1806","catch_line":"Rental of lots","url":"\/55.1-1806\/","token":"55.1\/IV\/18\/1\/55.1-1806","metadata":false},{"id":54855,"structure_id":13841,"section_number":"55.1-1807","catch_line":"Statement of lot owner rights","url":"\/55.1-1807\/","token":"55.1\/IV\/18\/1\/55.1-1807","metadata":false}],"previous_section":{"id":85587,"structure_id":13841,"section_number":"55.1-1802","catch_line":"Developer to register and file annual report; payment of real estate taxes attributable to the common area","url":"\/55.1-1802\/","token":"55.1\/IV\/18\/1\/55.1-1802","metadata":false},"next_section":{"id":61475,"structure_id":13841,"section_number":"55.1-1804","catch_line":"Documents to be provided by declarant upon transfer of control","url":"\/55.1-1804\/","token":"55.1\/IV\/18\/1\/55.1-1804","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-1803\/","history_text":"

This law was first created in 2012. The record of its establishment is cataloged in chapter 671<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2019, chapter 712<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":246491,"object_type":"law","relational_id":65739,"identifier":"55.1-1803","token":"55.1\/IV\/18\/1\/55.1-1803","url":"\/55.1-1803\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/55.1-1803\/","token":"55.1\/IV\/18\/1\/55.1-1803","dublin_core":{"Title":"Limitation on certain contracts and leases by declarant","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-1803","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If entered into any time prior to the expiration of the period of declarant<\/span> control contemplated by the declaration<\/span>, no contract<\/span> or lease entered into with the declarant<\/span> or any entity controlled by the declarant<\/span>, management contract<\/span>, or employment contract<\/span> that is directly or indirectly made by or on behalf of the association<\/span>, its board of directors<\/span>, or the lot owners<\/span> as a group shall be entered into for a period in excess of five years. Any such contract<\/span> or agreement may be terminated without penalty<\/span> by the association<\/span> or its board of directors<\/span> upon not less than 90 days’ written notice to the other party<\/span> given no later than 60 days after the expiration of the period of declarant<\/span> control contemplated by the declaration<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If entered into any time prior to the expiration of the period of declarant<\/span> control contemplated by the declaration<\/span>, any contract<\/span> or lease entered into with the declarant<\/span> or any entity controlled by the declarant<\/span>, management contract<\/span>, or employment contract<\/span> that is directly or indirectly made by or on behalf of the association<\/span>, its board of directors<\/span>, or the lot owners<\/span> as a group may be renewed for periods not in excess of five years; however, at the end of any five-year period, the association<\/span> or its board of directors<\/span> may terminate any further renewals or extensions of such contract<\/span> or lease. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If entered into at any time prior to the expiration of the period of declarant<\/span> control contemplated by the declaration<\/span>, any contract<\/span>, lease, or agreement, other than those subject to the provisions of subsection A or B, may be entered into by or on behalf of the association<\/span>, its board of directors<\/span>, or the lot owners<\/span> as a group if such contract<\/span>, lease, or agreement is bona fide and is commercially reasonable to the association<\/span> at the time entered into under the circumstances. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> This section shall be strictly construed to protect the rights of the lot owners<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIMITATION ON CERTAIN CONTRACTS AND LEASES BY DECLARANT (\u00a7 55.1-1803)\n\nA. If entered into any time prior to the expiration of the period of declarant\ncontrol contemplated by the declaration, no contract or lease entered into with\nthe declarant or any entity controlled by the declarant, management contract, or\nemployment contract that is directly or indirectly made by or on behalf of the\nassociation, its board of directors, or the lot owners as a group shall be\nentered into for a period in excess of five years. Any such contract or\nagreement may be terminated without penalty by the association or its board of\ndirectors upon not less than 90 days’ written notice to the other party\ngiven no later than 60 days after the expiration of the period of declarant\ncontrol contemplated by the declaration.\n\nB. If entered into any time prior to the expiration of the period of declarant\ncontrol contemplated by the declaration, any contract or lease entered into with\nthe declarant or any entity controlled by the declarant, management contract, or\nemployment contract that is directly or indirectly made by or on behalf of the\nassociation, its board of directors, or the lot owners as a group may be renewed\nfor periods not in excess of five years; however, at the end of any five-year\nperiod, the association or its board of directors may terminate any further\nrenewals or extensions of such contract or lease.\n\nC. If entered into at any time prior to the expiration of the period of\ndeclarant control contemplated by the declaration, any contract, lease, or\nagreement, other than those subject to the provisions of subsection A or B, may\nbe entered into by or on behalf of the association, its board of directors, or\nthe lot owners as a group if such contract, lease, or agreement is bona fide and\nis commercially reasonable to the association at the time entered into under the\ncircumstances.\n\nD. This section shall be strictly construed to protect the rights of the lot\nowners.\n\nHISTORY: 2012, c. 671, \u00a7 55-509.1:1; 2019, c. 712.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}