A. If entered into any time prior to the expiration of the period of declarant control contemplated by the declaration, no contract or lease entered into with the declarant or any entity controlled by the declarant, management contract, or employment contract that is directly or indirectly made by or on behalf of the association, its board of directors, or the lot owners as a group shall be entered into for a period in excess of five years. Any such contract or agreement may be terminated without penalty by the association or its board of directors upon not less than 90 days' written notice to the other party given no later than 60 days after the expiration of the period of declarant control contemplated by the declaration.
B. If entered into any time prior to the expiration of the period of declarant control contemplated by the declaration, any contract or lease entered into with the declarant or any entity controlled by the declarant, management contract, or employment contract that is directly or indirectly made by or on behalf of the association, its board of directors, or the lot owners as a group may be renewed for periods not in excess of five years; however, at the end of any five-year period, the association or its board of directors may terminate any further renewals or extensions of such contract or lease.
C. If entered into at any time prior to the expiration of the period of declarant control contemplated by the declaration, any contract, lease, or agreement, other than those subject to the provisions of subsection A or B, may be entered into by or on behalf of the association, its board of directors, or the lot owners as a group if such contract, lease, or agreement is bona fide and is commercially reasonable to the association at the time entered into under the circumstances.
D. This section shall be strictly construed to protect the rights of the lot owners.
2012, c. 671, § 55-509.1:1; 2019, c. 712.
Structure Code of Virginia
Title 55.1 - Property and Conveyances
Chapter 18 - Property Owners' Association Act
§ 55.1-1803. Limitation on certain contracts and leases by declarant
§ 55.1-1804. Documents to be provided by declarant upon transfer of control
§ 55.1-1805. Association charges
§ 55.1-1807. Statement of lot owner rights
§ 55.1-1808. Contract disclosure statement; right of cancellation
§ 55.1-1809. Contents of association disclosure packet; delivery of packet
§ 55.1-1810. Fees for disclosure packet; professionally managed associations
§ 55.1-1811. Fees for disclosure packet; associations not professionally managed
§ 55.1-1812. Properties subject to more than one declaration
§ 55.1-1813. Requests by settlement agents
§ 55.1-1814. Exceptions to disclosure requirements
§ 55.1-1815. Access to association records; association meetings; notice
§ 55.1-1816. Meetings of the board of directors
§ 55.1-1817. Distribution of information by members
§ 55.1-1818. Common areas; notice of pesticide application
§ 55.1-1819. Adoption and enforcement of rules
§ 55.1-1819.1. Limitation of smoking in development
§ 55.1-1820.1. Installation of solar energy collection devices
§ 55.1-1821. Home-based businesses permitted; compliance with local ordinances
§ 55.1-1822. Use of for sale signs in connection with sale
§ 55.1-1823. Designation of authorized representative
§ 55.1-1823.1. Electric vehicle charging stations permitted
§ 55.1-1824. Assessments; late fees
§ 55.1-1825. Authority to levy special assessments
§ 55.1-1826. Annual budget; reserves for capital components
§ 55.1-1827. Deposit of funds; fidelity bond
§ 55.1-1828. Compliance with declaration
§ 55.1-1829. Amendment to declaration and bylaws; consent of mortgagee
§ 55.1-1830. Validity of declaration; corrective amendments
§ 55.1-1831. Reformation of declaration; judicial procedure
§ 55.1-1832. Use of technology
§ 55.1-1833. Lien for assessments
§ 55.1-1834. Notice of sale under deed of trust