                                 CODE OF VIRGINIA

CONVEYANCE OR ENCUMBRANCE OF THE COOPERATIVE (§ 55.1-2144)

A. Part of the cooperative may be conveyed, and all or part of the cooperative
may be subjected to a security interest, by the association if persons entitled
to cast at least 80 percent of the votes in the association, including a simple
majority of the votes allocated to cooperative interests not owned by a
declarant, or any larger percentage the declaration specifies, agree to that
action. If fewer than all the units or limited common elements are to be
conveyed or subjected to a security interest, then all the proprietary lessees
of those units, or the units to which those limited common elements are
allocated, must agree in order to convey those units or limited common elements
or subject them to a security interest. The declaration may specify a smaller
percentage only if all of the units are restricted exclusively to nonresidential
uses. Proceeds of the sale are an asset of the association.

B. An agreement to convey a part of the cooperative or subject it to a security
interest must be evidenced by the execution of an agreement, or ratifications of
such an agreement, in the same manner as a deed, by the requisite number of
proprietary lessees. The agreement must specify a date after which the agreement
will be void unless recorded before that date. The agreement and such
ratifications must be recorded in every county or city in which a portion of the
cooperative is situated and is effective only upon recordation.

C. The association, on behalf of the proprietary lessees, may contract to convey
a part of the cooperative or subject it to a security interest, but the contract
is not enforceable against the association until approved pursuant to
subsections A and B. After such approval, the association has all powers
necessary and appropriate to effect the conveyance or encumbrance including the
power to execute deeds or other instruments.

D. Any purported conveyance, encumbrance, or other voluntary transfer of the
cooperative, unless made pursuant to this section or pursuant to subsection C of
&#xA7; 55.1-2128, is void.

E. A conveyance or encumbrance of the cooperative pursuant to this section does
not deprive any unit of its rights of access and support.

HISTORY: 1982, c. 277, § 55-469; 2019, c. 712.