                                 CODE OF VIRGINIA

DEFINITIONS (§ 55.1-2100)

As used in this chapter or in the declaration and bylaws, unless provided
otherwise or unless the context requires a different meaning:
		&#8220;Affiliate of a declarant&#8221;  means any person that controls, is
controlled by, or is under common control with a declarant. A person
&#8220;controls&#8221; 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 other persons, or through one or more
subsidiaries, owns, controls, or holds with power to vote, or holds proxies
representing, more than 20 percent of the voting interest 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 &#8220;is controlled by&#8221; 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 persons, or through
one or more subsidiaries, owns, controls, or 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 definition are
held solely as security for an obligation and are not exercised.
		&#8220;Allocated interests&#8221;  means the common expense liability and the
ownership interest and votes in the association allocated to each cooperative
interest.
		&#8220;Association&#8221;  or &#8220;proprietary lessees&#8217;
association&#8221; means the proprietary lessees&#8217; association organized
under § 55.1-2132.
		&#8220;Capital components&#8221;  means those items, whether or not a part of
the common elements, for which the association has the obligation for repair,
replacement, or restoration and for which the executive board determines funding
is necessary.
		&#8220;Common elements&#8221;  means all portions of a cooperative other than
the units of such cooperative.
		&#8220;Common expenses&#8221;  means any expenditures made by, or financial
liabilities of, the association, together with any allocations to reserves.
		&#8220;Common expense liability&#8221;  means liability for common expenses
allocated to each cooperative interest pursuant to § 55.1-2118.
		&#8220;Conversion building&#8221;  means a building that at any time before
creation of the cooperative was occupied wholly or partially by persons other
than purchasers and persons who occupy with the consent of purchasers.
		&#8220;Cooperative&#8221;  means real estate owned by an association, each of
the members of which is entitled, by virtue of his ownership interest in the
association, to exclusive possession of a unit.
		&#8220;Cooperative interest&#8221;  means an ownership interest in the
association coupled with a possessory interest in a unit under a proprietary
lease. For purposes of this chapter, a declarant is treated as the owner of any
cooperative interests or potential cooperative interests to which allocated
interests have been allocated pursuant to § 55.1-2118 until that cooperative
interest has been created and conveyed to another person.
		&#8220;Declarant&#8221;  means any person or group of persons acting in
concert that (i) as part of a common promotional plan, offers to dispose of its
cooperative interest not previously disposed of; (ii) reserves or succeeds to
any special declarant right; or (iii) applies for registration of a cooperative
under Article 5 (§ 55.1-2173 et seq.).
		&#8220;Declaration&#8221;  means any instruments, however denominated, that
create a cooperative and any amendments to those instruments.
		&#8220;Development rights&#8221;  means any right or combination of rights
reserved by a declarant in the declaration to (i) add real estate to a
cooperative; (ii) create units, common elements, or limited common elements
within a cooperative; (iii) subdivide units or convert units into common
elements; or (iv) withdraw real estate from a cooperative.
		&#8220;Dispose&#8221;  or &#8220;disposition&#8221;  means a voluntary
transfer to a purchaser of any legal or equitable interest in a cooperative
interest, but does not include the transfer or release of a security interest.
		&#8220;Executive board&#8221;  means the body, regardless of name, designated
in the declaration to act on behalf of the association.
		&#8220;Identifying number&#8221;  means a symbol or address that identifies
only one unit in a cooperative.
		&#8220;Leasehold cooperative&#8221;  means a cooperative in which all or a
portion of the real estate is subject to a lease the expiration or termination
of which will terminate the cooperative or reduce its size.
		&#8220;Limited common element&#8221;  means a portion of the common elements
allocated by the declaration or by operation of subdivision 2 or 4 of §
55.1-2113 for the exclusive use of at least one unit but fewer than all of the
units.
		&#8220;Master association&#8221;  means an organization described in §
55.1-2130, whether or not it is also an association described in § 55.1-2132.
		&#8220;Offering&#8221;  means any advertisement, inducement, solicitation, or
attempt to encourage any person to acquire any interest in a cooperative
interest, other than as security for an obligation. An advertisement in a
newspaper or other periodical of general circulation, or in any broadcast medium
to the general public, of a cooperative not located in the Commonwealth is not
an offering if the advertisement states that an offering may be made only in
compliance with the law of the jurisdiction in which the cooperative is located.
		&#8220;Person&#8221;  means a natural person, corporation, business trust,
estate, trust, partnership, association, joint venture, government, governmental
subdivision or agency, or any other legal or commercial entity. In the case of a
land trust, however, &#8220;person&#8221; means the beneficiary of the trust
rather than the trust or the trustee.
		&#8220;Proprietary lease&#8221;  means an agreement with the association
pursuant to which a proprietary lessee has a possessory interest in a unit.
		&#8220;Proprietary lessee&#8221;  means a person that owns a cooperative
interest, other than as security for an obligation, and the declarant with
respect to cooperative interests or potential cooperative interests to which
allocated interests have been allocated pursuant to § 55.1-2118 until that
cooperative interest has been created and conveyed to another person.
		&#8220;Purchaser&#8221;  means any person, other than a declarant or a person
in the business of selling cooperative interests for his own account, that, by
means of a voluntary transfer, acquires or contracts to acquire a cooperative
interest other than as security for an obligation.
		&#8220;Real estate&#8221;  means any leasehold or other estate or interest in,
over, or under land, including structures, fixtures, and other improvements and
interests that, by custom, usage, or law, pass with a conveyance of land though
not described in the contract of sale or instrument of conveyance. &#8220;Real
estate&#8221; includes (i) parcels with or without upper or lower boundaries and
(ii) spaces that may be filled with air or water.
		&#8220;Residential purposes&#8221;  means use for dwelling or recreational
purposes, or both.
		&#8220;Security interest&#8221;  means an interest in real or personal
property, created by contract or conveyance, that secures payment or performance
of an obligation. &#8220;Security interest&#8221; includes a mortgage, deed of
trust, trust deed, security deed, contract for deed, land sales contract, lease
intended as security, assignment of lease or rents intended as security, pledge
of an ownership interest in an association, and any other consensual lien or
title retention contract intended as security for an obligation.
		&#8220;Special declarant rights&#8221;  means rights reserved for the benefit
of a declarant to (i) complete improvements described in the public offering
statement pursuant to subdivision A 2 of § 55.1-2155; (ii) exercise any
development right pursuant to § 55.1-2120; (iii) maintain sales offices,
management offices, signs advertising the cooperative, and models; (iv) use
easements through the common elements for the purpose of making improvements
within the cooperative or within real estate that may be added to the
cooperative; (v) make the cooperative part of a larger cooperative or group of
cooperatives; (vi) make the cooperative subject to a master association as
specified in § 55.1-2130; or (vii) appoint or remove any officer of the
association, any master association, or any executive board member during any
period of declarant control.
		&#8220;Time share&#8221;  means a right to occupy a unit or any of several
units during five or more separated time periods over a period of at least five
years, including renewal options, whether or not coupled with an estate or
interest in a cooperative or a specified portion of such estate or interest.
		&#8220;Unit&#8221;  means a physical portion of the cooperative designated for
separate occupancy under a proprietary lease.

HISTORY: 1982, c. 277, § 55-426; 2005, c. 436; 2019, c. 712.