SB 341 — Common interest communities; foreclosure remedy.

Any lien that is not so released shall subject the lien creditor to the penalty set forth in subdivision B 1 of § 55.1-339.

For purposes of this section, the association shall have the power both to sell and convey the lot and shall be J.deemed the lot owner's statutory agent for the purpose of transferring title to the lot.

AJ. nonjudicial foreclosure sale shall be conducted in compliance with the following:t.

A nonjudicial foreclosure sale shall be conducted in compliance with the following:

After expiration of the 60-day notice period specified in subdivision 1, the association may appoint circuita courttrustee into conduct the countysale. or city in which such development is situated.

ItThe shallappointment be the duty of the clerktrustee inshall whosebe office such appointment is filed toin record and index the sameclerk's asoffice provided in subsection D, in of 12 the namescircuit ofcourt the persons identified in suchthe appointmentcounty asor wellcity as in thewhich namesuch ofdevelopment theis association.situated.

It shall be the duty of the clerk in whose office such appointment is filed to record and index the same as provided in subsection D, in the names of the persons identified in such appointment as well as in the name of the association.

In addition to the advertisement required by subdivision 5, the association shall give written notice of 12 of the time, date, and place of any proposed sale in execution of the lien, including the name, address, and telephone number of the trustee, by hand delivery or by mail to (i) the present owner of the property to be sold at his last known address as such owner and address appear in the records of the association, (ii) any lienholder who holds a note against the property secured by a deed of trust recorded at least 30 days prior to the proposed sale and whose address is recorded with the deed of trust, and (iii) any assignee of such a note secured by a deed of trust, provided that the assignment and address of the assignee are likewise recorded at least 30 days prior to the proposed sale.

first, of 12 to the reasonable expenses of sale, including attorney fees;

third, to the satisfaction of the lien for the ownersEowners' assessments;

and fifth, to pay the residue of the proceeds to the owner or his assigns, provided, however, that, as to the payment of such residue, the association shall not be bound by any inheritance, devise, conveyance, assRgnment,assignment, or lien of or upon the owner's equity, without actual notice thereof prior to distribution.

of9. title.

The trustee shall notdeliver be required to take possession of the propertypurchaser priora totrustee's thedeed saleconveying of suchy property or to deliver possession of the lot towith thespecial purchaserwarranty atof thetitle. sale.

LThe 10.trustee shall not be required to take possession of the property prior to the sale of such property or to deliver possession of the lot to the purchaser at the sale.

10.

In addition, the of 12 accounting shall be made available for inspection and copying pursuant to § 55.1-1815 upon the Erittenwritten request of the prior lot owner, the current lot owner, or any holder of a recorded lien against the lot at the time of the sale.

If the sale of a lot is made pursuant to subsection I and the accounting is made by the trustee, the title of the purchaser at such sale shall not be disturbed unless within 12 months from the confirmation of the accounting by the commissioner of accounts the sale is set aside by the court or an appeal is filed in the Court of Appeals or granted by the Supreme Court and an order is entered requiring such sale to be set aside.

S A.

The declarant, managing agent, unit owners' association, or person specified in the bylaw3bylaws of the association shall keep detailed records of the receipts and expenditures affecting the operatio1operation and administration of the condominium and specifying the maintenance and repair expenses of the comRoncommon elements and any other expenses incurred by or on behalf of the association.

All financial books and records shall be kept in accordance with generally accepted accounting owners'practices. association shall maintain a record of any recorded lien at least as long as the lien remainst effective.

The unit owners' association shall maintain individual assessment account records.

The unit owners' association shall maintain a record of any recorded lien at least as long as the lien remains effective.

Notwithstanding any provision of law to the contrary, this right of examination shall exist without reference to the duration of membership and may be exercised (i) only during reasonable business hours or at a mutually convenient time and location and (ii) upon five business days' written notice for a unit owner association managed by a common interest community manager and 10 businessttenbusiness days' written notice for a self-managed unit owners' association, which notice shall reasonably identify the purpose for the request and the specific books and records of the unit owners' association requested.

Contracts, leases, and other commercial transactions to purchase or provide goods or services, cur3.currently in or under negotiation;

3.

Meeting minutes or other confidential records of an executive session of the executive board held pur8.pursuant to subsection C of § 55.1-1949;

Documentation,8. correspondence or management or executive board reports compiled for or on behalf of the unit owners' association or the executive board by its agents or committees for of 12 consideration by the executive board in executive session;

Documentation, correspondence or management or executive board reports compiled for or on behalf of the unit owners' association or the executive board by its agents or committees for consideration by the executive board in executive session;

Charges may be imposed only in accordance with a cost schedule adopted by the executive of 12 board in accordance with this subsection.

When payment or satisfaction is made of a debt secured by the lien perfected by pursuant to of 12 subsection C, such lien shall be released in accordance with the provisions of § 55.1-339.

Any lien that is not so released shall subject the lien creditor to the penalty set forth in subdivision B 1 Efof § 55.1-339.

R G.

Nothing in this section shall be construed to prohibit actions at law to recover sums for which subH.subsection A creates a lien, maintainable pursuant to § 55.1-1915.

AnyH. unit owner or purchaser of a condominium unit, having executed a contract for the O disposition of such condominium unit, shall be entitled upon request to a recordable statement setting forth the amount of unpaid assessments currently levied against that unit.

Any unit owner or purchaser of a condominium unit, having executed a contract for the disposition of such condominium unit, shall be entitled upon request to a recordable statement setting forth the amount of unpaid assessments currently levied against that unit.

Failure to furnish or make available such a statement withEnwithin 10 days of the receipt of such request shall extinguish the lien created by subsection A as to the condominium unit involved.

Such statement shall be binding on the unit owners' association, theDthe executive board, and every unit owner.

theI. unit at public sale, subject to prior liensThe unit owners' association may conduct a judicial ory sell nonjudicial foreclosure sale upon a unit against which the unit owners' association has perfected one or more liens pursuant to this section if the total sums secured are in excess of $5,000, exclusive of attorney fees and costs.

ForAt purposesany oftime after perfecting the lien pursuant to this section, the unit owners' association shallmay havesell Sheof power12 boththe tounit sellat andpublic conveysale, thesubject to prior liens The unit andowners' shallassociation bemay deemedconduct a judicial or nonjudicial foreclosure sale upon a unit against which the unit owner'sowners' statutoryassociation agenthas forperfected theone p3rposeor ofmore transferringliens titlepursuant to this section if the unit.total sums secured are in excess of $5,000, exclusive of attorney fees and costs.

1For J.purposes of this section, the unit owners' association shall have the power both to sell and convey the unit and shall be deemed the unit owner's statutory agent for the purpose of transferring title to the unit.

J.

R 1.

(iii) the date, not less than 60 days from the date the failurenotice tois satisfygiven to the debtunit securedowner, by thewhich lien on or before the datedebt specifiedsecured inby the noticelien maymust resultbe insatisfied; the sale of the unit.

and (iv) that failure to satisfy the debt secured by the lien on or before the date specified in the notice may result in the sale of the unit.

The trustee.ers'unit owners' association, at its option, may from time to time remove the trustee and appoint a successor 3.trustee.

3.

In addition to the advertisement required by subdivision 5, the unit owners' association shall give written notice of the time, date, and place of any proposed sale in execution of the lien, and shall include the name, address, and telephone number of the trustee, by personal delivery or by mail to (i) the present owner of the condominium unit to be sold at his last known address as such owner and address appear in the records of the unit owners' association, (ii) any lienholder who holds a note against the condominium unit secured by a deed of trust recorded at least 30 days prior to the proposed sale and whose address is recorded with the deed of trust, and (iii) any assignee of such a note secured by a deed of trust provided the assignment and address of the assignee are likewise recorded at least 30 days prior to the proposed sale.

The advertisement of sale by the unit owners' association shall be in a newspaper having a general circulation in the locality in which the condominium unit to be sold, or any portion of such unit, is loca.located pursuant to the following provisions:

a.

however, if the condominium unit or some portion of such unit is located in a city or in a county immediately of 12 contiguous to a city, publication of the advertisement five different days, which may be consecutive days, shall be deemed adequate.

Failure to comply with the requirements for advertisement contained in this section shall, upon of 12 petition, render a sale of the condominium unit voidable by the court.

The unit owners' association may require of any bidder at any sale a cash deposit of as much as 10 percent of the sale price before his bid is received, which shall be refunded to him if the condominium unit is not sold to him.

of 12 A.

The association has a lien on a cooperative interest for any assessment levied against that cooperative interest or fines imposed against its owner from the time the assessment or fines bEcomebecome due.

If an assessment is payable in installments, the full amount of the assessment is a lien from tRethe time the first installment becomes due.

Upon nonpayment of the assessment, the proprietary lessee may be evicted in the same manner as provided by law in the case of an unlawful holdover by a commercial tenant, and the lien may be foreclosed as provided by this section.

A lien under this section is prior to all other liens and encumbrances on a cooperative interest except (i) liens and encumbrances on the cooperative that the association creates, assumes, or Eakestakes subject to;

The lien is also prior to the security interests described in clause (ii) to the extent of the common expense assessments based on the periodic budget adopted by the association pursuant to subsection A of § 55.1-2133 that would have become due in the absence of acceleration during the six months immediately preceding institution of an action to enforce the lien.

The lien under this section is not subject to homestead orSotheror other exemptions.

3 C.

Unless the declaration otherwise provides, if two or more associations have liens for ass1ssmentsassessments of 12 created at any time on the same property, those liens have equal priority.

R D.

A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted witF.within three years 120 months after the full amount of the assessment becomes due.

F.

The association, upon nonpayment of assessments and compliance with this subsection, may sell the cooperative interest The association may conduct a judicial or nonjudicial foreclosure sale of the cooperative interest against which the association has perfected one or more liens pursuant to thisthethis section if the total sums secured are in excess of $5,000, exclusive of attorney fees and costs.

The same notice must also be sent to any other person who has a recorded interest in the cooperative interest that would be cut off by the sale, but only if the interest was on record seven weeks before the date specified in the notice as the date of any public sale or seven weeks before the date specified in the notice as the date after which a private sale may be made.

The notices required by this subsection may be sent to any addressteraddress reasonable in the circumstances.

3.

Satisfaction in the order of priority of any prior claims of record;

Satisfaction of the association's lien;flien; any prior claims of record;

and of 12 6.

of 12 A.

Procedures for establishing and collecting special assessments for capital improvements or other of 12 purposes;

Procedures to be employed upon the annexation of additional land to the existing subdivisEonsubdivision that shall disclose whether or not per capita assessments on account of such annexation shall be subject to an increase, in the event additional amenities or common facilities are provided lot owners within the subdivision;

R 7.

Such procedures and restrictions, if any, that apply to the voluntary or involuntary resale of a lot lotwithin a subdivision by thea developerpurchaser withinor thehis subdivision;gent,agent, which shall be established prior to the sale Ofof the first 8.lot by the developer within the subdivision;

Monetary8. penalties or use privilege and voting suspension of members for breaches of the L restrictions, bylaws, or other instruments for management and control of the subdivision, or for nonpayment of regular or special assessments, with procedures for hearings for the disciplined members;

Monetary penalties or use privilege and voting suspension of members for breaches of the restrictions, bylaws, or other instruments for management and control of the subdivision, or for nonpayment of regular or special assessments, with procedures for hearings for the disciplined members;

Creation of a board of directors or other governing body for the association with the memEersmembers of the board or body to be elected by a vote of members of the association in good standing at an annual meeting or special meeting to be held not later than six months after the transfer of the areas of facilities provided for in subdivision 3;

Enumeration of the power of the board of directors or governing body that is consistent with and not11.not otherwise provided by law;

11.

Quorum requirements for meetings of members of the association who are in good standing;Sandstanding; 13.

Suchand other13. provisions as may be required by the Virginia Nonstock Corporation Act (§ 13.3-801 et seq.) if the association is a Virginia nonstock corporation.

1Such B.other provisions as may be required by the Virginia Nonstock Corporation Act (§ 13.1-801 et seq.) if the association is a Virginia nonstock corporation.

AnyB. developer of a subdivision, successor or otherwise, when such subdivision is subject Ro the provisions of this chapter, shall be obligated to complete the facilities and amenities as promised and outlined in subsection A by the initial developer of the subdivision subject to the transfer of title, control, and maintenance responsibilities of common areas and common facilities to the lot owners' deed in lieu of foreclosure, provided that the purchaser or grantee is a financial institution and thea mortgagee, creditor, or beneficiary under the instrument being foreclosed or giving rise to the deed in lieu of foreclosure.

Any developer of a subdivision, successor or otherwise, when such subdivision is subject to the provisions of this chapter, shall be obligated to complete the facilities and amenities as promised and outlined in subsection A by the initial developer of the subdivision subject to the transfer of title, control, and maintenance responsibilities of common areas and common facilities to the lot owners' association.

The foregoing shall not be deemed to apply to any purchaser at foreclosure or grantee in a deed in lieu of foreclosure, provided that the purchaser or grantee is a financial institution and the of 12 mortgagee, creditor, or beneficiary under the instrument being foreclosed or giving rise to the deed in lieu of foreclosure.

The association, once formed and in existence, and the title owner of the common areas and common facilities within the subdivision and which has been in existence for a period of at least five years shall have the authority to pass special assessments against and raise the annual assessments of the members of the association and to collect such assessments from such members according to law, if the purpose in so doing is for the maintenance of such common areas and common facilities.

The lien, once perfected, shall be prior to all other liens and encumbrances except (i) real estate tax liens on such lot, (ii) liens and encumbrances recorded prior to the perfected lien, and (iii) any sums unpaid on any first mortgages or first deeds of trust recorded prior to the perfection of the lien for regular or specialrstspecial assessments and securing institutional lenders.

The association, in order to perfect the lien given by this subsection, shall file before the expiration of 90 days from the time such regular or special assessment became due and payable in the clerk's office of the county or city in which the subdivision is situated a memorandum, verified by the oath of the president of the association, which shall contain:

of 12 1.

The cost of filing shall be as provided in subdivision A 2 of § 17.1-275.

Nothing in this subsection shall be construed to prohibit the recovery of sums for which this of 12 subsection creates a lien.