HOUSE BILL NO. 1771 Offered January 10, 2007 Prefiled December 28, 2006 A BILL to amend the Code of Virginia by adding a section numbered 55-376.3, relating to the Virginia Real Estate Time-Share Act; purchaser's right to surrender time-share. ---------- Patron-- Cosgrove ---------- Committee Referral Pending ----------

Be it enacted by the General Assembly of Virginia:

1.  That the Code of Virginia is amended by adding a section numbered 55-376.3 as follows:

§ 55-376.3. Purchaser's right to surrender time-share.

A. A time-share owner shall be entitled to surrender ownership of his time-share and thereafter be relieved of any obligation imposed by the time-share instrument and association documents provided the following condition precedents are satisfied:

1. The purchase price and all other related acquisition charges, including closing costs and interest on any deferred purchase, shall be paid in full;

2. All association and developer charges incurred by virtue of ownership of the time-share and participation in the time-share program, including all maintenance fees, assessments, and special assessments, shall be paid in full until surrender of the deed described in subdivision 6;

3. The time-share owner shall have had record ownership of his time-share for no less than 10 years prior to delivery of the notification required under subsection B. The 10 years shall be calculated from the date of recordation as reflected in the deed;

4. The time-share owner shall notify the recipient of the time-share as set forth in subsection B, by certified mail, return receipt requested, of his intent to relinquish and surrender ownership of his time-share. The notice shall only be sent within the last year prior to the lapse of the 10-year period specified in subdivision 3. The notice shall be signed by each record owner of the time-share. The address to be used in the case of developer shall be the principal office of developer as outlined in the then current public offering statement, and in the case of the association the address shall be the time-share project location. The notice shall contain the full legal name, address, telephone number, and email address, if any, of each time-share owner whose name is to appear on the deed. Moreover, a copy of the recorded deed whereby the time-share owner acquired record title to his time-share shall accompany the notice;

5. The time-share to be surrendered shall be owned by the person who acquired it from the developer. No successor in title to the time-share owner shall have the right to surrender that is provided by this section; and

6. A deed conveying the entire ownership conveyed by developer to the time-share owner shall be properly executed by each such owner, notarized, in otherwise recordable form and delivered to the recipient of the time-share along with all costs necessary to effect recordation plus administrative charges for title examination not to exceed $350. Delivery of the deed by the time-share owner shall occur no sooner than two years and no later than four years after the notice is given pursuant to subdivision 4. The conveyance shall be at no cost to the recipient of the time-share and shall be free and clear of all intervening liens and encumbrances of record. The recipient shall be under no obligation to accept title to the time-share if there appears of record any lien or other financial encumbrance against the time-share created through act or omission of the time-share owner.

B. The recipient of the time-share shall be developer until such time as developer records an instrument in the clerk’s office where the time-share project is located to the effect that developer has concluded its sales effort and the developer control period for the entire time-share project has ended. Thereafter, the recipient shall be the association.

C. Upon delivery by the time-share owner of the deed described in subdivision A 6, the recipient of the time-share shall cause such deed to be recorded provided all other condition precedents are satisfied. The recording shall occur within 30 days of receipt of the deed. If the recipient cannot record the deed, he shall notify the time-share owner to this effect with an explanation why the surrender afforded by this section did not occur.

D. Upon satisfaction of all conditions specified under subsection A and recording of the deed under subsection C has occurred the time-share owner shall no longer be a member in the association or an owner of the time-share. As such and at the time of recordation of the deed, all rights of time-share ownership and participation in the time-share program shall cease and all obligations imposed on the time-share owner by the time-share instrument and association documents shall also cease.

E. All moneys collected by developer or association pursuant to the time-share owner’s acquisition of the time-share and participation in the time-share program, including the purchase price, interest, closing costs, maintenance fees, assessment, special assessment, and surrender processing fees under this section shall remain the property of developer or association as the case may be.

F. Neither association nor developer shall be under any obligation to pay any maintenance fee, assessment, special assessment, or any other charge however denominated on any time-share acquired under this section.