                                 CODE OF VIRGINIA

TIME-SHARE INSTRUMENT FOR TIME-SHARE ESTATE PROJECT (§ 55.1-2209)

In addition to the requirements of § 55.1-2208, the time-share instrument for a
time-share estate project shall outline or prescribe reasonable arrangements for
the management and operation of the time-share estate program and for the
maintenance, repair, and furnishing of units it comprises, which shall include
provisions for the following:

1. Creation of an association, the members of which shall be the time-share
estate owners. The association may be formed pursuant to the Virginia Nonstock
Corporation Act (&#xA7; 13.1-801 et seq.); however, the association shall be
formed prior to the time the project and program are registered with the Board.
Nothing shall affect the validity of the association, once formed, and the
rights applicable to it as granted by this chapter, notwithstanding the time
when such association was formed;

2. Payment of costs and expenses of operating the time-share estate program and
owning and maintaining the units it comprises;

3. Employment and termination of employment of the managing agent for the
project. Any agreement pertaining to the employment of the managing agent and
executed during the developer control period shall be voidable by the
association at any time after termination of the developer control period for
the time-share project, and any provision in such agreement to the contrary is
hereby declared to be void;

4. Termination of leases and contracts for goods and services for the time-share
estate project that are entered into during the developer control period. Any
such lease or contract shall become voidable at the option of the association
upon termination of the developer control period for the entire time-share
project, or sooner if the provisions of such lease or contract so state;

5. Preparation and dissemination to time-share estate owners of the annual
report required by &#xA7; 55.1-2213;

6. Adoption of standards and rules of conduct for the use, enjoyment, and
occupancy of units by the time-share estate owners;

7. Collection of regular assessments, fees or dues, or special assessments from
time-share estate owners to defray all time-share expenses;

8. Comprehensive general liability insurance for death, bodily injury, and
property damage arising out of, or in connection with, the use and enjoyment of
the project by time-share estate owners, their guests, and other users. The
costs associated with securing and maintaining such insurance shall be a
time-share expense. Nothing in this subdivision shall be construed to obligate
the managing entity to secure insurance on the conduct of the time-share estate
owners, their guests, and other users or the personal effects or property of
such owners, guests, and users;

9. Methods for providing compensation or alternate use periods or monetary
compensation to a time-share estate owner if his contracted-for unit cannot be
made available for the period to which the owner is entitled by schedule or by
confirmed reservation;

10. Procedures for imposing a monetary penalty or suspension of a time-share
estate owner&#8217;s rights and privileges in the time-share estate program or
time-share project for failure of such owner to comply with provisions of the
time-share instrument or the rules and regulations of the association with
respect to the use and enjoyment of the units and the time-share project. Under
these procedures, a time-share estate owner shall be given reasonable notice and
reasonable opportunity to be heard and explain the charges against him in person
or in writing to the board of directors of the association before a decision to
impose discipline is rendered; and

11. Employment of attorneys, accountants, and other professional persons as
necessary to assist in the management of the time-share estate program and the
units it comprises.

HISTORY: 1981, c. 462, § 55-368; 1985, c. 517; 1989, c. 637; 1991, c. 704;
1994, c. 580; 1998, c. 460; 2019, c. 712.