                                 CODE OF VIRGINIA

MERGER OR CONSOLIDATION OF CONDOMINIUMS; PROCEDURE (§ 55.1-1936)

A. Any two or more condominiums, by agreement of the unit owners as provided in
subsection B, may be merged or consolidated into a single condominium. In the
event of a merger or consolidation, unless the agreement otherwise provides, the
resultant condominium shall be the legal successor, for all purposes, of all of
the preexisting condominiums, and the operations and activities of all unit
owners&#8217; associations of the preexisting condominiums shall be merged or
consolidated into a single unit owners&#8217; association that holds all powers,
rights, obligations, assets, and liabilities of all preexisting unit
owners&#8217; associations.

B. An agreement to merge or consolidate two or more condominiums pursuant to
subsection A shall be evidenced by an agreement prepared, executed, recorded,
and certified by the principal officer of the unit owners&#8217; association of
each of the preexisting condominiums following approval by owners of units to
which are allocated the percentage of votes in each condominium required to
terminate that condominium. The agreement shall be recorded in every locality in
which a portion of the condominium is located and shall not be effective until
recorded.

C. Every merger or consolidation agreement shall provide for the reallocation of
the allocated interests in the new unit owners&#8217; association among the
units of the resultant condominium either (i) by stating the reallocations or
the formulas upon which they are based or (ii) by stating the percentage of the
overall allocated interests of the condominium that are allocated to all of the
units comprising each of the preexisting condominiums, provided that the portion
of the percentages allocated to each unit formerly comprising a part of the
preexisting condominium shall be equal to the percentages of allocated interests
allocated to that unit by the declaration of the preexisting condominium.

D. If the condominium instruments of a condominium to be merged or consolidated
require a vote or consent of mortgagees in order to amend the condominium
instruments or terminate the condominium, the same vote or consent of mortgagees
shall be required before such merger or consolidation is effective. No merger or
consolidation shall affect mortgagee rights, alter the priority of the lien of
any mortgage, materially impair or affect any condominium unit as collateral for
a mortgage, or affect a mortgagee&#8217;s right to foreclose on a condominium
unit as collateral without the prior written consent of the mortgagee. A vote or
consent of a mortgagee required by this section may be deemed received pursuant
to &#xA7; 55.1-1941.

HISTORY: 2014, c. 659, § 55-79.71:2; 2019, c. 712.