                                 CODE OF VIRGINIA

DEFINITIONS (§ 55.1-2200)

As used in this chapter, or in a time-share instrument, unless the context
requires a different meaning:
		&#8220;Additional land&#8221; means all land that a time-share developer has
identified as land that may be added to a time-share project.
		&#8220;Affiliate&#8221; means a person that directly, or indirectly through
one or more intermediaries, controls, is controlled by, or is under common
control with the person specified.
		&#8220;Alternative purchase&#8221; means anything valued in excess of $100
that is offered to a potential purchaser by the developer during the
developer&#8217;s sales presentation and that is purchased by such potential
purchaser for more than $100, even though the purchaser did not purchase a
time-share. An alternative purchase is not a time-share. A membership camping
contract as defined in § 59.1-313 is not an alternative purchase. An
alternative purchase shall be registered with the Board unless it is otherwise
registered as a travel service under the Virginia Travel Club Act (§ 59.1-445
et seq.) and shall include vacation packages, however denominated, and exit
programs, however denominated.
		&#8220;Association&#8221; means the association organized under the provisions
of § 55.1-2209.
		&#8220;Board&#8221; means the Common Interest Community Board.
		&#8220;Board of directors&#8221; means an executive and administrative entity,
by whatever name denominated, designated in a time-share instrument as the
governing body of the time-share estate owners&#8217; association.
		&#8220;Common elements&#8221; means the real estate, improvements on such real
estate, and the personalty situated within the time-share project that are
subject to the time-share program. &#8220;Common elements&#8221; does not
include the units and the time-shares.
		&#8220;Consumer documents&#8221; means the aggregate of the following
documents: the reverter deed, the note, the deed of trust, and any document that
is to be provided to consumers in connection with an offering.
		&#8220;Contact information&#8221; means any information that can be used to
contact an owner, including the owner&#8217;s name, address, telephone number,
email address, or user identity on any electronic networking service.
		&#8220;Contract,&#8221; &#8220;sales contract,&#8221; &#8220;purchase
contract,&#8221; &#8220;contract of purchase,&#8221; or &#8220;contract to
purchase,&#8221; which shall be interchangeable throughout this chapter, means
any legally binding instrument executed by the developer and a purchaser by
which the developer is obligated to sell and the purchaser is obligated to
purchase either a time-share and its incidental benefits or an alternative
purchase registered under this chapter.
		&#8220;Conversion time-share project&#8221; means a real estate improvement
that, prior to the disposition of any time-share, was wholly or partially
occupied by persons as their permanent residence or on a transient pay-as-you-go
basis other than those who have contracted for the purchase of a time-share and
those who occupy with the consent of such purchasers.
		&#8220;Cost of ownership&#8221; means all of the owner&#8217;s expenses
related to a resale time-share due between the date of a resale transfer
contract and the transfer of the resale time-share.
		&#8220;Deed&#8221; means the instrument by which title to a time-share estate
is transferred from one person to another person.
		&#8220;Deed of trust&#8221; means the instrument conveying the time-share
estate that is given as security for the payment of the note.
		&#8220;Default&#8221; means either a failure to have made any payment in full
and on time or a violation of a performance obligation required by a consumer
document for a period of no less than 60 days.
		&#8220;Developer&#8221; means any person or group of persons acting in concert
that (i) offers to dispose of a time-share or its interest in a time-share unit
for which there has not been a previous disposition or (ii) applies for
registration of the time-share program.
		&#8220;Developer control period&#8221; means a period of time during which the
developer or a managing agent selected by the developer manages and controls the
time-share project and the common elements and units it comprises.
		&#8220;Development right&#8221; means any right reserved by the developer to
create additional units that may be dedicated to the time-share program.
		&#8220;Dispose&#8221; or &#8220;disposition&#8221; means a transfer of a legal
or equitable interest in a time-share, other than a transfer or release of
security for a debt.
		&#8220;Exchange agent&#8221; or &#8220;exchange company&#8221; means a person
that exchanges or offers to exchange time-shares in an exchange program with
other time-shares.
		&#8220;Exchange program&#8221; means any opportunity or procedure for the
assignment or exchange of time-shares among owners in other time-share programs
as evidenced by a past or present written agreement executed between an exchange
company and the developer or the time-share estate association; however, an
&#8220;exchange program&#8221; shall not be either an incidental benefit or an
opportunity or procedure by which a time-share owner can exchange his time-share
for another time-share within either the same time-share project or another
time-share project owned in part by the developer.
		&#8220;Guest&#8221; means (i) a person who is on the project, additional land,
or development at the request of an owner, developer, association, or managing
agent or (ii) a person otherwise legally entitled to be on such project,
additional land, or development. &#8220;Guest&#8221; includes family members of
owners; time-share exchange participants; merchants, purveyors, or vendors; and
employees of such merchants, purveyors, and vendors; the developer; or the
association.
		&#8220;Incidental benefit&#8221; means anything valued in excess of $100
provided by the developer that is acquired by a purchaser upon acquisition of a
time-share and includes exchange rights, travel insurance, bonus weeks, upgrade
entitlements, travel coupons, referral awards, and golf and tennis packages. An
incidental benefit is not a time-share or an exchange program. An incidental
benefit shall not be registered with the Board.
		&#8220;Inherent risks of project activity&#8221; means those dangers or
conditions that are an integral part of a project activity, including certain
hazards, such as surface and subsurface conditions; natural conditions of land,
vegetation, and waters; the behavior of wild or domestic animals; and ordinary
dangers of structures or equipment ordinarily used in association or time-share
project operations. &#8220;Inherent risks of project activity&#8221; also
includes the potential of a participant to act in a negligent manner that may
contribute to injury to the participant or others, including failing to follow
instructions given by the project professional or failing to exercise reasonable
caution while engaging in the project activity.
		&#8220;Lead dealer&#8221; means a person that sells or otherwise provides to
any other person contact information concerning five or more owners to be used
for a resale service. &#8220;Lead dealer&#8221; does not mean developers,
managing entities, or exchange companies to the extent that such entities are
providing other persons with personal contact information about time-share
owners in their own time-share programs or members of their own exchange
program.
		&#8220;Lien holder&#8221; means either a person that holds an interest in an
encumbrance that is not released of record as to a purchaser or such
person&#8217;s successor in interest that acquires title to the time-share
project at foreclosure, by deed in lieu of foreclosure, or by any other
instrument however denominated.
		&#8220;Managing agent&#8221; means a person that undertakes the duties,
responsibilities, and obligations of the management of a time-share project.
		&#8220;Managing entity&#8221; means the managing agent or, if there is no
managing agent, the time-share owners&#8217; association in a time-share estate
project and the developer in a time-share use project.
		&#8220;Material change&#8221; means a change in any information or document
disclosed in or attached to the public offering statement that renders
inaccurate, incomplete, or misleading any information or document in such a way
as to affect substantially a purchaser&#8217;s rights or obligations, but does
not include a change (i) in the real estate tax assessment or rate, utility
charges or deposits, maintenance fees, association dues, assessments, special
assessments, or any recurring time-share expense item, provided that such change
is made known (a) immediately to the prospective purchaser by a written addendum
in the public offering statement and (b) to the Board by filing with the
developer&#8217;s annual report copies of the updated changes occurring over the
immediately preceding 12 months; (ii) that is an aspect or result of the orderly
development of the time-share project in accordance with the time-share
instrument; (iii) resulting from new, updated, or amended information contained
in the annual report prepared and distributed pursuant to § 55.1-2213; (iv)
correcting spelling, grammar, omissions, or other similar errors not affecting
the substance of the public offering statement; or (v) occurring in the issuance
of an exchange company&#8217;s updated annual report or disclosure document,
provided that, upon its receipt by the developer, it shall be distributed in
lieu of all others in order to satisfy § 55.1-2217.
		&#8220;Note&#8221; means the instrument that evidences the debt occasioned by
the deferred purchase of a time-share.
		&#8220;Offering&#8221; or &#8220;offer&#8221; means any act that originates in
the Commonwealth to sell, solicit, induce, or advertise, whether by radio,
television, telephone, newspaper, magazine, or mail, during which a person is
given an opportunity to acquire a time-share.
		&#8220;Participant&#8221; means any person, other than a project professional,
that engages in a project activity.
		&#8220;Person&#8221; means one or more natural persons, corporations,
partnerships, associations, trustees of a trust, limited liability companies, or
other entities, or any combination thereof, capable of holding title to real
property.
		&#8220;Possibility of reverter&#8221; means a provision contained in a
reverter deed by which the time-share estate automatically reverts or transfers
back to the developer upon satisfaction of the requirements imposed by §
55.1-2222.
		&#8220;Product&#8221; means each time-share program and all alternative
purchases.
		&#8220;Project activity&#8221; means any activity carried out or conducted on
a common element, within a time-share unit or elsewhere in the project,
additional land, or development, that allows owners, their guests, and members
of the general public to view, observe, participate, or enjoy activities.
&#8220;Project activity&#8221; includes swimming pools, spas, sporting venues,
and cultural, historical, or harvest-your-own activities; other amenities and
events; or natural activities and attractions for recreational, entertainment,
educational, or social purposes. Such activity is a project activity whether or
not the participant paid to participate in the activity.
		&#8220;Project professional&#8221; means any person that is engaged in the
business of providing one or more project activities, whether or not for
compensation. For the purposes of this definition, the developer, association,
and managing entity shall each be deemed a project professional.
		&#8220;Public offering statement&#8221; means the statement required by §
55.1-2217.
		&#8220;Purchaser&#8221; means any person other than a developer or lender that
owns or acquires a product or that otherwise enters into a contract for the
purchase of a product.
		&#8220;Resale purchase contract&#8221; means an agreement negotiated by a
reseller by which an owner or a reseller agrees to sell, and a subsequent
purchaser agrees to buy, a resale time-share.
		&#8220;Resale service&#8221; means engaging, directly or indirectly, for
compensation, in any of the following either in person or by any medium of
communication: (i) selling or offering to sell or list for sale for the owner a
resale time-share, (ii) buying or offering to buy a resale time-share for
transfer to a subsequent purchaser, (iii) transferring a resale time-share
acquired from an owner to a subsequent purchaser or offering to assist in such
transfer, (iv) invalidating or offering to invalidate for an owner the title of
a resale time-share, or (v) advertising or soliciting to advertise or promote
the transfer or invalidation of a resale time-share. Resale service does not
include an individual&#8217;s selling or offering to sell his own time-share
unit.
		&#8220;Resale time-share&#8221; means a time-share, wherever located, that has
previously been sold to an owner who is a natural person for personal, family,
or household use and that is transferred, or is intended to be transferred,
through a resale service.
		&#8220;Resale transfer contract&#8221; means an agreement between a reseller
and the owner by which the reseller agrees to transfer or assist in the transfer
of the owner&#8217;s resale time-share.
		&#8220;Reseller&#8221; means any person who, directly or indirectly, engages
in a resale service.
		&#8220;Reverter deed&#8221; means the deed from a developer to a grantee that
contains a possibility of reverter.
		&#8220;Sales person&#8221; means a person who sells or offers to sell
time-share interests in a time-share program.
		&#8220;Situs&#8221; means the place outside the Commonwealth where a
developer&#8217;s time-share project is located.
		&#8220;Subsequent purchaser&#8221; means the purchaser or transferee of a
resale time-share.
		&#8220;Time-share&#8221; means either a time-share estate or a time-share use
plus its incidental benefits.
		&#8220;Time-share estate&#8221; means a right to occupy a time-share unit or
any of several time-share units during five or more separated time periods over
a period of at least five years, including renewal options, coupled with a
freehold estate or an estate for years in one or more time-share units or a
specified portion of such time-share units.
		&#8220;Time-share estate occupancy expense&#8221; means all costs and expenses
incurred in (i) the formation, organization, operation, and administration,
including capital contributions thereto, of the association and both its board
of directors and its members and (ii) all owners&#8217; use and occupancy of the
time-share estate project, including without limitation its completed and
occupied time-share estate units and common elements available for use. Such
costs and expenses include maintenance and housekeeping charges; repairs;
refurbishing costs; insurance premiums, including the premium for comprehensive
general liability insurance required by subdivision 8 of § 55.1-2209; taxes;
properly allocated labor, operational, and overhead costs; general and
administrative expenses; the managing agent&#8217;s fee; utility charges and
deposits; the cost of periodic repair and replacement of walls and window
treatments and furnishings, including furniture and appliances; filing fees and
annual registration charges of the State Corporation Commission and the Board;
attorney fees and accountant charges; and reserves for any of the foregoing.
		&#8220;Time-share estate subject to reverter&#8221; means a time-share estate
(i) entitling the holder thereof to occupy units not more than four weeks in any
one-year period and (ii) for which the down payment is not more than 20 percent
of the total purchase price of the time-share estate.
		&#8220;Time-share expense&#8221; means (i) expenditures, fees, charges, or
liabilities incurred with respect to the operation, maintenance, administration,
or insuring of the time-shares, units, and common elements comprising the entire
time-share project, whether or not incurred for the repair, renovation, upgrade,
refurbishing, or capital improvements, and (ii) any allocations of reserves.
		&#8220;Time-share instrument&#8221; or &#8220;project instrument&#8221; means
any document, however denominated, that creates the time-share project and
program and that may contain restrictions or covenants regulating the use,
occupancy, or disposition of time-shares in a project.
		&#8220;Time-share owner&#8221; or &#8220;owner&#8221; means a person that is
an owner or co-owner of a time-share other than as security for an obligation.
		&#8220;Time-share program&#8221; or &#8220;program&#8221; means any
arrangement of time-shares in one or more time-share projects by which the use,
occupancy, or possession of real property has been made subject to either a
time-share estate or time-share use in which such use, occupancy, or possession
circulates among owners of the time-shares according to a fixed or floating time
schedule on a periodic basis occurring over any period of time in excess of five
years.
		&#8220;Time-share project&#8221; or &#8220;project&#8221; means all of the
real property subject to a time-share program created by the execution of a
time-share instrument.
		&#8220;Time-share unit&#8221; or &#8220;unit&#8221; means the real property or
real property improvement in a project that is divided into time-shares and
designated for separate occupancy and use.
		&#8220;Time-share use&#8221; means a right to occupy a time-share unit or any
of several time-share units during five or more separated time periods over a
period of at least five years, including renewal options, not coupled with a
freehold estate or an estate for years in a time-share project or a specified
portion of such time-share project.
		&#8220;Transfer&#8221; means a voluntary conveyance of a resale time-share to
a person other than the developer, association, or managing entity of the
time-share program of which the resale time-share is a part or to a person
taking ownership by gift, foreclosure, or deed in lieu of foreclosure.

HISTORY: 1981, c. 462, § 55-362; 1985, c. 517; 1986, c. 359; 1991, c. 704;
1994, c. 580; 1998, c. 460; 2001, c. 543; 2004, c. 143; 2007, c. 267; 2008, cc.
376, 851, 871; 2012, c. 751; 2019, c. 712; 2020, c. 1011.