{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/55.1-1947.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/55.1-1947.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/55.1-1947.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/55.1-1947.html"}],"law_id":64177,"edition_id":1,"section_id":64177,"structure_id":13236,"section_number":"55.1-1947","catch_line":"Transfer of special declarant rights","history":"1982, c. 545, \u00a7 55-79.74:3; 1991, c. 497; 1996, c. 977; 2006, c. 646; 2019, c. 712.","full_text":"A\n\nFor the purposes of this section, &#8220;affiliate of a declarant&#8221; means any person who controls, is controlled by, or is under common control with a declarant. A person controls a declarant if the person (i) is a general partner, officer, director, or employer of the declarant; (ii) directly or indirectly, or acting in concert with one or more persons or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than 20 percent of the voting interests in the declarant; (iii) controls in any manner the election of a majority of the directors of the declarant; or (iv) has contributed more than 20 percent of the capital of the declarant. A person is controlled by a declarant if the declarant (a) is a general partner, officer, director, or employer of the person; (b) directly or indirectly, or acting in concert with one or more other persons or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than 20 percent of the voting interest in the person; (c) controls in any manner the election of a majority of the directors of the person; or (d) has contributed more than 20 percent of the capital of the person. Control does not exist if the powers described in this subsection are held solely as security for an obligation and are not exercised.B\n\nNo special declarant right may be transferred except by a document evidencing the transfer recorded in every county and city in which any portion of the condominium is located. The instrument shall not be effective unless executed by the transferee.C\n\nUpon transfer of any special declarant right, the liability of a transferor declarant shall be as follows:1\n\nThe transferor shall not be relieved of any obligation or liability arising before the transfer and shall remain liable for warranty obligations imposed upon him by subsection B of &#xA7; 55.1-1955. Lack of privity shall not deprive any unit owner of standing to bring an action to enforce any obligation of the transferor.2\n\nIf the successor to any special declarant right is an affiliate of a declarant, the transferor shall also be jointly and severally liable with the successor for any obligation or liability of the successor that relates to the condominium.3\n\nIf a transferor retains any special declarant rights, but transfers other special declarant rights to a successor who is not an affiliate of the declarant, the transferor shall also be liable for all obligations and liabilities relating to the retained special declarant rights and imposed on a declarant by this chapter or by the condominium instruments.4\n\nA transferor shall have no liability for any breach of a contractual or warranty obligation or for any other act or omission, arising from the exercise of a special declarant right by a successor declarant who is not an affiliate of the transferor.D\n\nExcept as otherwise provided by the mortgage or deed of trust, in case of foreclosure of a mortgage, sale by a trustee under a deed of trust, tax sale, judicial sale, or sale under receivership proceedings or the Bankruptcy Code as codified in Title 11 of the United States Code of any unit owned by a declarant or land subject to development rights:1\n\nA person acquiring title to all the land being foreclosed or sold shall, but only upon his request, succeed to all special declarant rights related to that land reserved by that declarant, or only to any rights reserved in the declaration pursuant to &#xA7; 55.1-1929 and held by that declarant to maintain sales offices, management offices, model units, or signs.2\n\nThe judgment or instrument conveying title shall provide for transfer of only the special declarant rights requested.\n\t\t\t\tFor the purposes of this subsection, &#8220;development rights&#8221; means any right or combination of rights to expand an expandable condominium, contract a contractable condominium, convert convertible land, or convert convertible space.E\n\nUpon foreclosure, sale by a trustee under a deed of trust, tax sale, judicial sale, or sale under receivership proceedings or the Bankruptcy Code as codified in Title 11 of the United States Code of all units and other land in the condominium owned by a declarant, (i) that declarant ceases to have any special declarant rights and (ii) any period of declarant control reserved under subsection A of &#xA7; 55.1-1943 shall terminate, unless the judgment or instrument conveying title provides for transfer of all special declarant rights held by that declarant to a successor declarant.F\n\nThe liabilities and obligations of any person who succeed to any special declarant right shall be as follows:1\n\nA successor to any special declarant right who is an affiliate of a declarant is subject to all obligations and liabilities imposed on the transferor by this chapter or by the condominium instruments.2\n\nA successor to any special declarant right, other than a successor described in subdivisions 3 and 4, who is not an affiliate of a declarant shall be subject to all obligations and liabilities imposed by this chapter or the condominium instruments on a declarant that relate to his exercise or nonexercise of special declarant rights, or on his transferor, except for (i) misrepresentations by any prior declarant, (ii) warranty obligations as provided in subsection B of &#xA7; 55.1-1955 on improvements made by any previous declarant or made before the condominium was created, (iii) breach of any fiduciary obligation by any previous declarant or his appointees to the executive board, or (iv) any liability or obligation imposed on the transferor as a result of the transferor&#8217;s acts or omissions after the transfer.3\n\nUnless he is an affiliate of a declarant, a successor to only a right reserved in the declaration to maintain sales offices, management offices, model units, or signs shall not exercise any other special declarant right and shall not be subject to any liability or obligation as a declarant, except the liabilities and obligations arising under Article 4 (&#xA7; 55.1-1970 et seq.) as to disposition by that successor.4\n\nA successor to all special declarant rights held by his transferor who is not an affiliate of that transferor and who succeeded to those rights pursuant to a deed in lieu of foreclosure or a judgment or instrument conveying title to units under subsection D may declare his intention in a recorded instrument to hold those rights solely for transfer to another person. Thereafter, until transferring all special declarant rights to any person acquiring title to any unit owned by the successor, or until recording an instrument permitting exercise of all those rights, that successor may not exercise any of those rights other than any right reserved by his transferor pursuant to subsection A of &#xA7; 55.1-1943. Any attempted exercise of those rights is void. So long as a successor declarant may not exercise special declarant rights under this subsection, he shall not be subject to any liability or obligation as a declarant other than liability for his acts and omissions relating to the exercise of rights reserved under subsection A of &#xA7; 55.1-1943.G\n\nNothing in this section subjects any successor to a special declarant right to any claims against or other obligations of a transferor declarant, other than claims and obligations arising under this chapter or the condominium instruments.","order_by":null,"text":{"0":{"id":233628,"text":"For the purposes of this section, &#8220;affiliate of a declarant&#8221; means any person who controls, is controlled by, or is under common control with a declarant. A person controls a declarant if the person (i) is a general partner, officer, director, or employer of the declarant; (ii) directly or indirectly, or acting in concert with one or more persons or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than 20 percent of the voting interests in the declarant; (iii) controls in any manner the election of a majority of the directors of the declarant; or (iv) has contributed more than 20 percent of the capital of the declarant. A person is controlled by a declarant if the declarant (a) is a general partner, officer, director, or employer of the person; (b) directly or indirectly, or acting in concert with one or more other persons or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than 20 percent of the voting interest in the person; (c) controls in any manner the election of a majority of the directors of the person; or (d) has contributed more than 20 percent of the capital of the person. Control does not exist if the powers described in this subsection are held solely as security for an obligation and are not exercised.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":233629,"text":"No special declarant right may be transferred except by a document evidencing the transfer recorded in every county and city in which any portion of the condominium is located. The instrument shall not be effective unless executed by the transferee.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":233630,"text":"Upon transfer of any special declarant right, the liability of a transferor declarant shall be as follows:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":233631,"text":"The transferor shall not be relieved of any obligation or liability arising before the transfer and shall remain liable for warranty obligations imposed upon him by subsection B of &#xA7; 55.1-1955. Lack of privity shall not deprive any unit owner of standing to bring an action to enforce any obligation of the transferor.","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":233632,"text":"If the successor to any special declarant right is an affiliate of a declarant, the transferor shall also be jointly and severally liable with the successor for any obligation or liability of the successor that relates to the condominium.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":233633,"text":"If a transferor retains any special declarant rights, but transfers other special declarant rights to a successor who is not an affiliate of the declarant, the transferor shall also be liable for all obligations and liabilities relating to the retained special declarant rights and imposed on a declarant by this chapter or by the condominium instruments.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":233634,"text":"A transferor shall have no liability for any breach of a contractual or warranty obligation or for any other act or omission, arising from the exercise of a special declarant right by a successor declarant who is not an affiliate of the transferor.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"D"},"7":{"id":233635,"text":"Except as otherwise provided by the mortgage or deed of trust, in case of foreclosure of a mortgage, sale by a trustee under a deed of trust, tax sale, judicial sale, or sale under receivership proceedings or the Bankruptcy Code as codified in Title 11 of the United States Code of any unit owned by a declarant or land subject to development rights:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C4","next_prefix":"D1"},"8":{"id":233636,"text":"A person acquiring title to all the land being foreclosed or sold shall, but only upon his request, succeed to all special declarant rights related to that land reserved by that declarant, or only to any rights reserved in the declaration pursuant to &#xA7; 55.1-1929 and held by that declarant to maintain sales offices, management offices, model units, or signs.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"9":{"id":233637,"text":"The judgment or instrument conveying title shall provide for transfer of only the special declarant rights requested.\n\t\t\t\tFor the purposes of this subsection, &#8220;development rights&#8221; means any right or combination of rights to expand an expandable condominium, contract a contractable condominium, convert convertible land, or convert convertible space.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"E"},"10":{"id":233638,"text":"Upon foreclosure, sale by a trustee under a deed of trust, tax sale, judicial sale, or sale under receivership proceedings or the Bankruptcy Code as codified in Title 11 of the United States Code of all units and other land in the condominium owned by a declarant, (i) that declarant ceases to have any special declarant rights and (ii) any period of declarant control reserved under subsection A of &#xA7; 55.1-1943 shall terminate, unless the judgment or instrument conveying title provides for transfer of all special declarant rights held by that declarant to a successor declarant.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2","next_prefix":"F"},"11":{"id":233639,"text":"The liabilities and obligations of any person who succeed to any special declarant right shall be as follows:","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"F1"},"12":{"id":233640,"text":"A successor to any special declarant right who is an affiliate of a declarant is subject to all obligations and liabilities imposed on the transferor by this chapter or by the condominium instruments.","type":"section","prefixes":["F","1"],"prefix":"1","entire_prefix":"F1","prefix_anchor":"F1","level":2,"prior_prefix":"F","next_prefix":"F2"},"13":{"id":233641,"text":"A successor to any special declarant right, other than a successor described in subdivisions 3 and 4, who is not an affiliate of a declarant shall be subject to all obligations and liabilities imposed by this chapter or the condominium instruments on a declarant that relate to his exercise or nonexercise of special declarant rights, or on his transferor, except for (i) misrepresentations by any prior declarant, (ii) warranty obligations as provided in subsection B of &#xA7; 55.1-1955 on improvements made by any previous declarant or made before the condominium was created, (iii) breach of any fiduciary obligation by any previous declarant or his appointees to the executive board, or (iv) any liability or obligation imposed on the transferor as a result of the transferor&#8217;s acts or omissions after the transfer.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F1","next_prefix":"F3"},"14":{"id":233642,"text":"Unless he is an affiliate of a declarant, a successor to only a right reserved in the declaration to maintain sales offices, management offices, model units, or signs shall not exercise any other special declarant right and shall not be subject to any liability or obligation as a declarant, except the liabilities and obligations arising under Article 4 (&#xA7; 55.1-1970 et seq.) as to disposition by that successor.","type":"section","prefixes":["F","3"],"prefix":"3","entire_prefix":"F3","prefix_anchor":"F3","level":2,"prior_prefix":"F2","next_prefix":"F4"},"15":{"id":233643,"text":"A successor to all special declarant rights held by his transferor who is not an affiliate of that transferor and who succeeded to those rights pursuant to a deed in lieu of foreclosure or a judgment or instrument conveying title to units under subsection D may declare his intention in a recorded instrument to hold those rights solely for transfer to another person. Thereafter, until transferring all special declarant rights to any person acquiring title to any unit owned by the successor, or until recording an instrument permitting exercise of all those rights, that successor may not exercise any of those rights other than any right reserved by his transferor pursuant to subsection A of &#xA7; 55.1-1943. Any attempted exercise of those rights is void. So long as a successor declarant may not exercise special declarant rights under this subsection, he shall not be subject to any liability or obligation as a declarant other than liability for his acts and omissions relating to the exercise of rights reserved under subsection A of &#xA7; 55.1-1943.","type":"section","prefixes":["F","4"],"prefix":"4","entire_prefix":"F4","prefix_anchor":"F4","level":2,"prior_prefix":"F3","next_prefix":"G"},"16":{"id":233644,"text":"Nothing in this section subjects any successor to a special declarant right to any claims against or other obligations of a transferor declarant, other than claims and obligations arising under this chapter or the condominium instruments.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F4"}},"ancestry":[{"id":13236,"edition_id":1,"name":"Management of Condominium","identifier":"3","label":"article","depth":4,"order_by":1,"parent_id":13018,"metadata":{},"date_created":"2026-06-26 03:44:30","date_modified":"2026-06-26 03:44:30","permalink":{"id":246789,"object_type":"structure","relational_id":13236,"identifier":"3","token":"55.1\/IV\/19\/3","url":"\/55.1\/IV\/19\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13018,"edition_id":1,"name":"Virginia Condominium Act","identifier":"19","label":"chapter","depth":3,"order_by":1,"parent_id":12914,"metadata":{},"date_created":"2026-06-26 03:44:09","date_modified":"2026-06-26 03:44:09","permalink":{"id":246623,"object_type":"structure","relational_id":13018,"identifier":"19","token":"55.1\/IV\/19","url":"\/55.1\/IV\/19\/","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":75299,"structure_id":13236,"section_number":"55.1-1940","catch_line":"Bylaws to be recorded with declaration; contents; unit owners' association; executive board; amendment of bylaws","url":"\/55.1-1940\/","token":"55.1\/IV\/19\/3\/55.1-1940","metadata":false},{"id":56162,"structure_id":13236,"section_number":"55.1-1940.1","catch_line":"Termination and duration of certain management contracts","url":"\/55.1-1940.1\/","token":"55.1\/IV\/19\/3\/55.1-1940.1","metadata":false},{"id":86301,"structure_id":13236,"section_number":"55.1-1941","catch_line":"Amendment to condominium instruments; consent of mortgagee","url":"\/55.1-1941\/","token":"55.1\/IV\/19\/3\/55.1-1941","metadata":false},{"id":77055,"structure_id":13236,"section_number":"55.1-1942","catch_line":"Reformation of declaration; judicial procedure","url":"\/55.1-1942\/","token":"55.1\/IV\/19\/3\/55.1-1942","metadata":false},{"id":84290,"structure_id":13236,"section_number":"55.1-1943","catch_line":"Control of condominium by declarant","url":"\/55.1-1943\/","token":"55.1\/IV\/19\/3\/55.1-1943","metadata":false},{"id":68952,"structure_id":13236,"section_number":"55.1-1944","catch_line":"Deposit of funds","url":"\/55.1-1944\/","token":"55.1\/IV\/19\/3\/55.1-1944","metadata":false},{"id":86875,"structure_id":13236,"section_number":"55.1-1945","catch_line":"Books, minutes, and records; inspection","url":"\/55.1-1945\/","token":"55.1\/IV\/19\/3\/55.1-1945","metadata":false},{"id":86155,"structure_id":13236,"section_number":"55.1-1946","catch_line":"Management office","url":"\/55.1-1946\/","token":"55.1\/IV\/19\/3\/55.1-1946","metadata":false},{"id":64177,"structure_id":13236,"section_number":"55.1-1947","catch_line":"Transfer of special declarant rights","url":"\/55.1-1947\/","token":"55.1\/IV\/19\/3\/55.1-1947","metadata":false},{"id":54240,"structure_id":13236,"section_number":"55.1-1948","catch_line":"Declarants not succeeding to special declarant rights","url":"\/55.1-1948\/","token":"55.1\/IV\/19\/3\/55.1-1948","metadata":false},{"id":76863,"structure_id":13236,"section_number":"55.1-1949","catch_line":"Meetings of unit owners' association and executive board","url":"\/55.1-1949\/","token":"55.1\/IV\/19\/3\/55.1-1949","metadata":false},{"id":64649,"structure_id":13236,"section_number":"55.1-1950","catch_line":"Distribution of information by members","url":"\/55.1-1950\/","token":"55.1\/IV\/19\/3\/55.1-1950","metadata":false},{"id":63730,"structure_id":13236,"section_number":"55.1-1951","catch_line":"Display of the flag of the United States; necessary supporting structures; affirmative defense","url":"\/55.1-1951\/","token":"55.1\/IV\/19\/3\/55.1-1951","metadata":false},{"id":80764,"structure_id":13236,"section_number":"55.1-1951.1","catch_line":"Installation of solar energy collection devices","url":"\/55.1-1951.1\/","token":"55.1\/IV\/19\/3\/55.1-1951.1","metadata":false},{"id":70408,"structure_id":13236,"section_number":"55.1-1952","catch_line":"Meetings of unit owners' association and executive board; quorums","url":"\/55.1-1952\/","token":"55.1\/IV\/19\/3\/55.1-1952","metadata":false},{"id":64764,"structure_id":13236,"section_number":"55.1-1953","catch_line":"Meetings of unit owners' association and executive board; voting by unit owners; proxies","url":"\/55.1-1953\/","token":"55.1\/IV\/19\/3\/55.1-1953","metadata":false},{"id":69473,"structure_id":13236,"section_number":"55.1-1954","catch_line":"Officers","url":"\/55.1-1954\/","token":"55.1\/IV\/19\/3\/55.1-1954","metadata":false},{"id":85997,"structure_id":13236,"section_number":"55.1-1955","catch_line":"Upkeep of condominiums; warranty against structural defects; statute of limitations for warranty; warranty review committee","url":"\/55.1-1955\/","token":"55.1\/IV\/19\/3\/55.1-1955","metadata":false},{"id":76691,"structure_id":13236,"section_number":"55.1-1956","catch_line":"Control of common elements","url":"\/55.1-1956\/","token":"55.1\/IV\/19\/3\/55.1-1956","metadata":false},{"id":86702,"structure_id":13236,"section_number":"55.1-1957","catch_line":"Common elements; notice of pesticide application","url":"\/55.1-1957\/","token":"55.1\/IV\/19\/3\/55.1-1957","metadata":false},{"id":66934,"structure_id":13236,"section_number":"55.1-1958","catch_line":"Tort and contract liability; judgment lien","url":"\/55.1-1958\/","token":"55.1\/IV\/19\/3\/55.1-1958","metadata":false},{"id":65547,"structure_id":13236,"section_number":"55.1-1959","catch_line":"Suspension of services for failure to pay assessments; corrective action; assessment of charges for violations; notice; hearing; adoption and enforcement of rules and regulations","url":"\/55.1-1959\/","token":"55.1\/IV\/19\/3\/55.1-1959","metadata":false},{"id":78546,"structure_id":13236,"section_number":"55.1-1960","catch_line":"Limitation of occupancy of a unit","url":"\/55.1-1960\/","token":"55.1\/IV\/19\/3\/55.1-1960","metadata":false},{"id":64065,"structure_id":13236,"section_number":"55.1-1960.1","catch_line":"Limitation of smoking in condominium","url":"\/55.1-1960.1\/","token":"55.1\/IV\/19\/3\/55.1-1960.1","metadata":false},{"id":62313,"structure_id":13236,"section_number":"55.1-1961","catch_line":"Use of for sale sign in connection with resale","url":"\/55.1-1961\/","token":"55.1\/IV\/19\/3\/55.1-1961","metadata":false},{"id":78887,"structure_id":13236,"section_number":"55.1-1962","catch_line":"Designation of authorized representative","url":"\/55.1-1962\/","token":"55.1\/IV\/19\/3\/55.1-1962","metadata":false},{"id":76748,"structure_id":13236,"section_number":"55.1-1962.1","catch_line":"Electric vehicle charging stations permitted","url":"\/55.1-1962.1\/","token":"55.1\/IV\/19\/3\/55.1-1962.1","metadata":false},{"id":71936,"structure_id":13236,"section_number":"55.1-1963","catch_line":"Insurance","url":"\/55.1-1963\/","token":"55.1\/IV\/19\/3\/55.1-1963","metadata":false},{"id":86524,"structure_id":13236,"section_number":"55.1-1964","catch_line":"Liability for common expenses; late fees; additional assessment; authority to borrow","url":"\/55.1-1964\/","token":"55.1\/IV\/19\/3\/55.1-1964","metadata":false},{"id":55038,"structure_id":13236,"section_number":"55.1-1965","catch_line":"Annual budget; reserve study; reserves for capital components","url":"\/55.1-1965\/","token":"55.1\/IV\/19\/3\/55.1-1965","metadata":false},{"id":86561,"structure_id":13236,"section_number":"55.1-1966","catch_line":"Lien for assessments; foreclosure","url":"\/55.1-1966\/","token":"55.1\/IV\/19\/3\/55.1-1966","metadata":false},{"id":82616,"structure_id":13236,"section_number":"55.1-1967","catch_line":"Notice of sale under deed of trust","url":"\/55.1-1967\/","token":"55.1\/IV\/19\/3\/55.1-1967","metadata":false},{"id":56723,"structure_id":13236,"section_number":"55.1-1968","catch_line":"Bond to be posted by declarant","url":"\/55.1-1968\/","token":"55.1\/IV\/19\/3\/55.1-1968","metadata":false},{"id":60552,"structure_id":13236,"section_number":"55.1-1969","catch_line":"Restraints on alienation","url":"\/55.1-1969\/","token":"55.1\/IV\/19\/3\/55.1-1969","metadata":false}],"previous_section":{"id":86155,"structure_id":13236,"section_number":"55.1-1946","catch_line":"Management office","url":"\/55.1-1946\/","token":"55.1\/IV\/19\/3\/55.1-1946","metadata":false},"next_section":{"id":54240,"structure_id":13236,"section_number":"55.1-1948","catch_line":"Declarants not succeeding to special declarant rights","url":"\/55.1-1948\/","token":"55.1\/IV\/19\/3\/55.1-1948","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-1947\/","history_text":"<p>This law was first created in 1982. The record of its establishment is cataloged in chapter 545 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. Unfortunately, the 1982 \u201cActs\u201d aren\u2019t available online. It has been modified 4 times. 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. Those modifications are as follows: in 1991, chapter 497; in 1996, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?961+ful+CHAP0977\">977<\/a>; in 2006, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?061+ful+CHAP0646\">646<\/a>; in 2019, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?191+ful+CHAP0712\">712<\/a>.<\/p>","references":[{"id":55215,"section_number":"55.1-1900","catch_line":"Definitions","order_by":null,"url":"\/55.1-1900\/"}],"refers_to":[{"id":84085,"section_number":"55.1-1929","catch_line":"Easement to facilitate sales","order_by":null,"url":"\/55.1-1929\/"},{"id":84290,"section_number":"55.1-1943","catch_line":"Control of condominium by declarant","order_by":null,"url":"\/55.1-1943\/"},{"id":85997,"section_number":"55.1-1955","catch_line":"Upkeep of condominiums; warranty against structural defects; statute of limitations for warranty; warranty review committee","order_by":null,"url":"\/55.1-1955\/"},{"id":68690,"section_number":"55.1-1970","catch_line":"Common Interest Community Board","order_by":null,"url":"\/55.1-1970\/"}],"permalink":{"id":246823,"object_type":"law","relational_id":64177,"identifier":"55.1-1947","token":"55.1\/IV\/19\/3\/55.1-1947","url":"\/55.1-1947\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/55.1-1947\/","token":"55.1\/IV\/19\/3\/55.1-1947","dublin_core":{"Title":"Transfer of special declarant rights","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-1947","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> For the purposes of this section, &#8220;<span class=\"dictionary\">affiliate of a declarant<\/span>&#8221; means any <span class=\"dictionary\">person<\/span> who controls, is controlled by, or is under common control with a declarant. A <span class=\"dictionary\">person<\/span> controls a declarant if the <span class=\"dictionary\">person<\/span> (i) is a general partner, <span class=\"dictionary\">officer<\/span>, director, or employer of the declarant; (ii) directly or indirectly, or acting in concert with one or more <span class=\"dictionary\">persons<\/span> or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than 20 percent of the voting interests in the declarant; (iii) controls in any manner the election of a majority of the directors of the declarant; or (iv) has contributed more than 20 percent of the capital of the declarant. A <span class=\"dictionary\">person<\/span> is controlled by a declarant if the declarant (a) is a general partner, <span class=\"dictionary\">officer<\/span>, director, or employer of the <span class=\"dictionary\">person<\/span>; (b) directly or indirectly, or acting in concert with one or more other <span class=\"dictionary\">persons<\/span> or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than 20 percent of the voting interest in the <span class=\"dictionary\">person<\/span>; (c) controls in any manner the election of a majority of the directors of the <span class=\"dictionary\">person<\/span>; or (d) has contributed more than 20 percent of the capital of the <span class=\"dictionary\">person<\/span>. Control does not exist if the powers described in this subsection are held solely as security for an obligation and are not exercised. <a id=\"paragraph-233628\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> No special declarant right may be transferred except by a document evidencing the transfer recorded in every county and city in which any portion of the <span class=\"dictionary\">condominium<\/span> is located. The instrument shall not be effective unless executed by the transferee. <a id=\"paragraph-233629\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> Upon transfer of any special declarant right, the liability of a transferor declarant shall be as follows: <a id=\"paragraph-233630\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> The transferor shall not be relieved of any obligation or liability arising before the transfer and shall remain liable for warranty obligations imposed upon him by subsection B of &#xA7; <a class=\"law\" title=\"Upkeep of condominiums; warranty against structural defects; statute of limitations for warranty; warranty review committee\" href=\"\/55.1-1955\/\">55.1-1955<\/a>. Lack of privity shall not deprive any <span class=\"dictionary\">unit owner<\/span> of standing to bring an action to enforce any obligation of the transferor. <a id=\"paragraph-233631\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#C1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> If the successor to any special declarant right is an <span class=\"dictionary\">affiliate of a declarant<\/span>, the transferor shall also be jointly and severally liable with the successor for any obligation or liability of the successor that relates to the <span class=\"dictionary\">condominium<\/span>. <a id=\"paragraph-233632\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#C2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> If a transferor retains any <span class=\"dictionary\">special declarant rights<\/span>, but transfers other <span class=\"dictionary\">special declarant rights<\/span> to a successor who is not an affiliate of the declarant, the transferor shall also be liable for all obligations and liabilities relating to the retained <span class=\"dictionary\">special declarant rights<\/span> and imposed on a declarant by this chapter or by the <span class=\"dictionary\">condominium<\/span> instruments. <a id=\"paragraph-233633\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#C3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> A transferor shall have no liability for any breach of a contractual or warranty obligation or for any other act or omission, arising from the exercise of a special declarant right by a successor declarant who is not an affiliate of the transferor. <a id=\"paragraph-233634\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#C4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D\"><p><span class=\"prefix-number\">D.<\/span> Except as otherwise provided by the mortgage or deed of trust, in case of foreclosure of a mortgage, sale by a trustee under a deed of trust, tax sale, judicial sale, or sale under receivership proceedings or the <span class=\"dictionary\">Bankruptcy Code<\/span> as codified in Title 11 of the United States Code of any unit owned by a declarant or <span class=\"dictionary\">land<\/span> subject to <span class=\"dictionary\">development rights<\/span>: <a id=\"paragraph-233635\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#D\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> A <span class=\"dictionary\">person<\/span> acquiring title to all the <span class=\"dictionary\">land<\/span> being foreclosed or sold shall, but only upon his request, succeed to all <span class=\"dictionary\">special declarant rights<\/span> related to that <span class=\"dictionary\">land<\/span> reserved by that declarant, or only to any rights reserved in the declaration pursuant to &#xA7; <a class=\"law\" title=\"Easement to facilitate sales\" href=\"\/55.1-1929\/\">55.1-1929<\/a> and held by that declarant to maintain sales offices, management offices, model <span class=\"dictionary\">units<\/span>, or signs. <a id=\"paragraph-233636\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#D1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> The <span class=\"dictionary\">judgment<\/span> or instrument conveying title shall provide for transfer of only the <span class=\"dictionary\">special declarant rights<\/span> requested.\n\t\t\t\tFor the purposes of this subsection, &#8220;<span class=\"dictionary\">development rights<\/span>&#8221; means any right or combination of rights to expand an <span class=\"dictionary\">expandable condominium<\/span>, <span class=\"dictionary\">contract<\/span> a <span class=\"dictionary\">contractable condominium<\/span>, convert <span class=\"dictionary\">convertible land<\/span>, or convert <span class=\"dictionary\">convertible space<\/span>. <a id=\"paragraph-233637\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#D2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"E\"><p><span class=\"prefix-number\">E.<\/span> Upon foreclosure, sale by a trustee under a deed of trust, tax sale, judicial sale, or sale under receivership proceedings or the <span class=\"dictionary\">Bankruptcy Code<\/span> as codified in Title 11 of the United States Code of all <span class=\"dictionary\">units<\/span> and other land in the condominium owned by a declarant, (i) that declarant ceases to have any <span class=\"dictionary\">special declarant rights<\/span> and (ii) any period of declarant control reserved under subsection A of &#xA7; <a class=\"law\" title=\"Control of condominium by declarant\" href=\"\/55.1-1943\/\">55.1-1943<\/a> shall terminate, unless the <span class=\"dictionary\">judgment<\/span> or instrument conveying title provides for transfer of all <span class=\"dictionary\">special declarant rights<\/span> held by that declarant to a successor declarant. <a id=\"paragraph-233638\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#E\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"F\"><p><span class=\"prefix-number\">F.<\/span> The liabilities and obligations of any <span class=\"dictionary\">person<\/span> who succeed to any special declarant right shall be as follows: <a id=\"paragraph-233639\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#F\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"F1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> A successor to any special declarant right who is an <span class=\"dictionary\">affiliate of a declarant<\/span> is subject to all obligations and liabilities imposed on the transferor by this chapter or by the condominium instruments. <a id=\"paragraph-233640\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#F1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"F2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> A successor to any special declarant right, other than a successor described in subdivisions 3 and 4, who is not an <span class=\"dictionary\">affiliate of a declarant<\/span> shall be subject to all obligations and liabilities imposed by this chapter or the condominium instruments on a declarant that relate to his exercise or nonexercise of <span class=\"dictionary\">special declarant rights<\/span>, or on his transferor, except for (i) misrepresentations by any prior declarant, (ii) warranty obligations as provided in subsection B of &#xA7; <a class=\"law\" title=\"Upkeep of condominiums; warranty against structural defects; statute of limitations for warranty; warranty review committee\" href=\"\/55.1-1955\/\">55.1-1955<\/a> on improvements made by any previous declarant or made before the condominium was created, (iii) breach of any fiduciary obligation by any previous declarant or his appointees to the <span class=\"dictionary\">executive board<\/span>, or (iv) any liability or obligation imposed on the transferor as a result of the transferor&#8217;s acts or omissions after the transfer. <a id=\"paragraph-233641\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#F2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"F3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> Unless he is an <span class=\"dictionary\">affiliate of a declarant<\/span>, a successor to only a right reserved in the declaration to maintain sales offices, management offices, model <span class=\"dictionary\">units<\/span>, or signs shall not exercise any other special declarant right and shall not be subject to any liability or obligation as a declarant, except the liabilities and obligations arising under Article 4 (&#xA7; <a class=\"law\" title=\"Common Interest Community Board\" href=\"\/55.1-1970\/\">55.1-1970<\/a> et seq.) as to <span class=\"dictionary\">disposition<\/span> by that successor. <a id=\"paragraph-233642\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#F3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"F4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> A successor to all <span class=\"dictionary\">special declarant rights<\/span> held by his transferor who is not an affiliate of that transferor and who succeeded to those rights pursuant to a deed in lieu of foreclosure or a <span class=\"dictionary\">judgment<\/span> or instrument conveying title to <span class=\"dictionary\">units<\/span> under subsection D may declare his intention in a recorded instrument to hold those rights solely for transfer to another <span class=\"dictionary\">person<\/span>. Thereafter, until transferring all <span class=\"dictionary\">special declarant rights<\/span> to any <span class=\"dictionary\">person<\/span> acquiring title to any unit owned by the successor, or until recording an instrument permitting exercise of all those rights, that successor may not exercise any of those rights other than any right reserved by his transferor pursuant to subsection A of &#xA7; <a class=\"law\" title=\"Control of condominium by declarant\" href=\"\/55.1-1943\/\">55.1-1943<\/a>. Any attempted exercise of those rights is void. So long as a successor declarant may not exercise <span class=\"dictionary\">special declarant rights<\/span> under this subsection, he shall not be subject to any liability or obligation as a declarant other than liability for his acts and omissions relating to the exercise of rights reserved under subsection A of &#xA7; <a class=\"law\" title=\"Control of condominium by declarant\" href=\"\/55.1-1943\/\">55.1-1943<\/a>. <a id=\"paragraph-233643\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#F4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"G\"><p><span class=\"prefix-number\">G.<\/span> Nothing in this section subjects any successor to a special declarant right to any claims against or other obligations of a transferor declarant, other than claims and obligations arising under this chapter or the condominium instruments. <a id=\"paragraph-233644\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/55.1-1947\/#G\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nTRANSFER OF SPECIAL DECLARANT RIGHTS (\u00a7 55.1-1947)\n\nA. For the purposes of this section, &#8220;affiliate of a declarant&#8221;\nmeans any person who controls, is controlled by, or is under common control with\na declarant. A person controls a declarant if the person (i) is a general\npartner, officer, director, or employer of the declarant; (ii) directly or\nindirectly, or acting in concert with one or more persons or through one or more\nsubsidiaries, owns, controls, holds with power to vote, or holds proxies\nrepresenting more than 20 percent of the voting interests in the declarant;\n(iii) controls in any manner the election of a majority of the directors of the\ndeclarant; or (iv) has contributed more than 20 percent of the capital of the\ndeclarant. A person is controlled by a declarant if the declarant (a) is a\ngeneral partner, officer, director, or employer of the person; (b) directly or\nindirectly, or acting in concert with one or more other persons or through one\nor more subsidiaries, owns, controls, holds with power to vote, or holds proxies\nrepresenting more than 20 percent of the voting interest in the person; (c)\ncontrols in any manner the election of a majority of the directors of the\nperson; or (d) has contributed more than 20 percent of the capital of the\nperson. Control does not exist if the powers described in this subsection are\nheld solely as security for an obligation and are not exercised.\n\nB. No special declarant right may be transferred except by a document evidencing\nthe transfer recorded in every county and city in which any portion of the\ncondominium is located. The instrument shall not be effective unless executed by\nthe transferee.\n\nC. Upon transfer of any special declarant right, the liability of a transferor\ndeclarant shall be as follows:\n\n   1. The transferor shall not be relieved of any obligation or liability arising\n   before the transfer and shall remain liable for warranty obligations imposed\n   upon him by subsection B of &#xA7; 55.1-1955. Lack of privity shall not\n   deprive any unit owner of standing to bring an action to enforce any\n   obligation of the transferor.\n\n   2. If the successor to any special declarant right is an affiliate of a\n   declarant, the transferor shall also be jointly and severally liable with the\n   successor for any obligation or liability of the successor that relates to the\n   condominium.\n\n   3. If a transferor retains any special declarant rights, but transfers other\n   special declarant rights to a successor who is not an affiliate of the\n   declarant, the transferor shall also be liable for all obligations and\n   liabilities relating to the retained special declarant rights and imposed on a\n   declarant by this chapter or by the condominium instruments.\n\n   4. A transferor shall have no liability for any breach of a contractual or\n   warranty obligation or for any other act or omission, arising from the\n   exercise of a special declarant right by a successor declarant who is not an\n   affiliate of the transferor.\n\nD. Except as otherwise provided by the mortgage or deed of trust, in case of\nforeclosure of a mortgage, sale by a trustee under a deed of trust, tax sale,\njudicial sale, or sale under receivership proceedings or the Bankruptcy Code as\ncodified in Title 11 of the United States Code of any unit owned by a declarant\nor land subject to development rights:\n\n   1. A person acquiring title to all the land being foreclosed or sold shall,\n   but only upon his request, succeed to all special declarant rights related to\n   that land reserved by that declarant, or only to any rights reserved in the\n   declaration pursuant to &#xA7; 55.1-1929 and held by that declarant to\n   maintain sales offices, management offices, model units, or signs.\n\n   2. The judgment or instrument conveying title shall provide for transfer of\n   only the special declarant rights requested.\n   \t\t\t\tFor the purposes of this subsection, &#8220;development rights&#8221;\n   means any right or combination of rights to expand an expandable condominium,\n   contract a contractable condominium, convert convertible land, or convert\n   convertible space.\n\nE. Upon foreclosure, sale by a trustee under a deed of trust, tax sale, judicial\nsale, or sale under receivership proceedings or the Bankruptcy Code as codified\nin Title 11 of the United States Code of all units and other land in the\ncondominium owned by a declarant, (i) that declarant ceases to have any special\ndeclarant rights and (ii) any period of declarant control reserved under\nsubsection A of &#xA7; 55.1-1943 shall terminate, unless the judgment or\ninstrument conveying title provides for transfer of all special declarant rights\nheld by that declarant to a successor declarant.\n\nF. The liabilities and obligations of any person who succeed to any special\ndeclarant right shall be as follows:\n\n   1. A successor to any special declarant right who is an affiliate of a\n   declarant is subject to all obligations and liabilities imposed on the\n   transferor by this chapter or by the condominium instruments.\n\n   2. A successor to any special declarant right, other than a successor\n   described in subdivisions 3 and 4, who is not an affiliate of a declarant\n   shall be subject to all obligations and liabilities imposed by this chapter or\n   the condominium instruments on a declarant that relate to his exercise or\n   nonexercise of special declarant rights, or on his transferor, except for (i)\n   misrepresentations by any prior declarant, (ii) warranty obligations as\n   provided in subsection B of &#xA7; 55.1-1955 on improvements made by any\n   previous declarant or made before the condominium was created, (iii) breach of\n   any fiduciary obligation by any previous declarant or his appointees to the\n   executive board, or (iv) any liability or obligation imposed on the transferor\n   as a result of the transferor&#8217;s acts or omissions after the transfer.\n\n   3. Unless he is an affiliate of a declarant, a successor to only a right\n   reserved in the declaration to maintain sales offices, management offices,\n   model units, or signs shall not exercise any other special declarant right and\n   shall not be subject to any liability or obligation as a declarant, except the\n   liabilities and obligations arising under Article 4 (&#xA7; 55.1-1970 et seq.)\n   as to disposition by that successor.\n\n   4. A successor to all special declarant rights held by his transferor who is\n   not an affiliate of that transferor and who succeeded to those rights pursuant\n   to a deed in lieu of foreclosure or a judgment or instrument conveying title\n   to units under subsection D may declare his intention in a recorded instrument\n   to hold those rights solely for transfer to another person. Thereafter, until\n   transferring all special declarant rights to any person acquiring title to any\n   unit owned by the successor, or until recording an instrument permitting\n   exercise of all those rights, that successor may not exercise any of those\n   rights other than any right reserved by his transferor pursuant to subsection\n   A of &#xA7; 55.1-1943. Any attempted exercise of those rights is void. So long\n   as a successor declarant may not exercise special declarant rights under this\n   subsection, he shall not be subject to any liability or obligation as a\n   declarant other than liability for his acts and omissions relating to the\n   exercise of rights reserved under subsection A of &#xA7; 55.1-1943.\n\nG. Nothing in this section subjects any successor to a special declarant right\nto any claims against or other obligations of a transferor declarant, other than\nclaims and obligations arising under this chapter or the condominium\ninstruments.\n\nHISTORY: 1982, c. 545, \u00a7 55-79.74:3; 1991, c. 497; 1996, c. 977; 2006, c. 646;\n2019, 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}}