                                 CODE OF VIRGINIA

APPLICATION FOR REGISTRATION; APPROVAL OF UNCOMPLETED UNIT (§ 55.1-2176)

A. An application for registration must contain the information and be
accompanied by any reasonable fees required by the Common Interest Community
Board&#8217;s regulations. A declarant promptly shall file amendments to report
any factual or expected material change in any document or information contained
in his application.

B. If a declarant files with the Common Interest Community Board a declaration
or proposed declaration, or an amendment or proposed amendment to a declaration,
creating units for which he proposes to convey cooperative interests before the
units are substantially completed in the manner required by § 55.1-2172, the
declarant shall also file with the Common Interest Community Board:

   1. A verified statement showing all costs involved in completing the buildings
   containing those units;

   2. A verified estimate of the time of completion of construction of the
   buildings containing those units;

   3. Satisfactory evidence of sufficient funds to cover all costs to complete
   the buildings containing those units;

   4. A copy of the executed construction contract and any other contracts for
   the completion of the buildings containing those units;

   5. A 100 percent payment and performance bond covering the entire cost of
   construction of the buildings containing those units;

   6. Plans for the units;

   7. If purchasers&#8217; funds are to be utilized for the construction of the
   cooperative, an executed copy of the escrow agreement with an escrow company
   or financial institution authorized to do business within the state that
   provides:
   				a. That disbursements of purchasers&#8217; funds may be made from time to
   time to pay for construction of the cooperative, architectural, and
   engineering costs, finance and legal fees, and other costs for the completion
   of the cooperative in proportion to the value of the work completed by the
   contractor as certified by an independent, registered architect or engineer,
   on bills submitted and approved by the lender of construction funds or the
   escrow agent;
   				b. That disbursement of the balance of purchasers&#8217; funds remaining
   after completion of the cooperative shall be made only when the escrow agent
   or lender receives satisfactory evidence that the period for filing
   mechanic&#8217;s and materialman&#8217;s liens has expired, or that the right
   to claim those liens has been waived, or that adequate provision has been made
   for satisfaction of any claimed mechanic&#8217;s or materialman&#8217;s lien;
   and
   				c. Any other restriction relative to the retention and disbursement of
   purchasers&#8217; funds required by the Common Interest Community Board; and

   8. Any other materials or information the agency may require by its
   regulations.
   				The Common Interest Community Board shall not register the units described
   in the declaration or the amendment unless the Common Interest Community Board
   determines, on the basis of the material submitted by the declarant and any
   other information available to the Common Interest Community Board, that there
   is a reasonable basis to expect that the cooperative interests to be conveyed
   will be completed by the declarant following conveyance.

HISTORY: 1982, c. 277, § 55-498; 2019, c. 712.