                                 CODE OF VIRGINIA

NATURE OF RIGHTS; SUBORDINATION OF INTERESTS (§ 10.1-1239)

A. Any person, including a person that owns an interest in the real property,
the agency, or a municipality or other unit of local government, may be a
holder. An environmental covenant may identify more than one holder. The
interest of a holder is an interest in real property.

B. A right of an agency under this chapter or under an environmental covenant,
other than a right as a holder, is not an interest in real property.

C. An agency is bound by any obligation it assumes in an environmental covenant,
but an agency does not assume obligations merely by signing an environmental
covenant. Any other person that signs an environmental covenant is bound by the
obligations the person assumes in the covenant, but signing the covenant does
not change obligations, rights, or protections granted or imposed under law
other than this chapter except as provided in the covenant.

D. The following rules apply to interests in real property in existence at the
time an environmental covenant is created or amended:

   1. An interest that has priority under other law is not affected by an
   environmental covenant unless the person that owns the interest subordinates
   that interest to the covenant.

   2. This chapter does not require a person that owns a prior interest to
   subordinate that interest to an environmental covenant or to agree to be bound
   by the covenant.

   3. A subordination agreement may be contained in an environmental covenant
   covering real property or in a separate record. If the environmental covenant
   covers commonly owned property in a common interest community, the record may
   be signed by any person authorized by the governing board of the owners&#8217;
   association.

   4. An agreement by a person to subordinate a prior interest to an
   environmental covenant affects the priority of that person&#8217;s interest
   but does not by itself impose any affirmative obligation on the person with
   respect to the environmental covenant or affect that person&#8217;s existing
   liability.

HISTORY: 2010, c. 691.