                                 CODE OF VIRGINIA

TERMINATION OF CONTRACTS AND LEASES OF DECLARANT (§ 55.1-2136)

If entered into before the executive board elected by the proprietary lessees
pursuant to subsection F of § 55.1-2134 takes office, (i) any management
contract, employment contract, or lease of recreational or parking areas or
facilities, (ii) any other contract or lease between the association and a
declarant or an affiliate of a declarant, or (iii) any contract or lease that is
not bona fide or was unconscionable to the proprietary lessees at the time
entered into under the circumstances then prevailing may be terminated without
penalty by the association at any time after the executive board elected by the
proprietary lessees pursuant to subsection F of § 55.1-2134 takes office after
giving at least 90 days&#8217; notice to the other party. However, a management
contract that is not unconscionable between an association directly or
indirectly providing assisted living or nursing services to proprietary lessees
and a declarant or an affiliate of a declarant may not be terminated while a
member of the executive board appointed by the declarant continues to serve
unless such termination is approved by a vote of a majority of the members of
the executive board and a majority vote of the proprietary lessees, other than
the declarant.
		This section does not apply to any proprietary lease or any lease the
termination of which would terminate the cooperative or reduce its size, unless
the real estate subject to that lease was included in the cooperative for the
purpose of avoiding the right of the association to terminate a lease under this
section. This section does not apply to any contract, incidental to the
disposition of a cooperative interest, to provide to a proprietary lessee for
the duration of such proprietary lessee&#8217;s life, or for any term in excess
of one year, nursing services, medical services, other health-related services,
board and lodging, and care as necessary, or any combination of such services.
The rule of property law known as the rule restricting unreasonable restraints
on alienation shall not be applied to defeat any provision of the declaration,
bylaws, or proprietary leases requiring that the proprietary lessees be parties
to such contracts.

HISTORY: 1982, c. 277, § 55-462; 1985, c. 83; 2004, c. 242; 2019, c. 712.