A. A possibility of reverter contained in a reverter deed for a time-shareestate subject to reverter is valid, enforceable in law and in equity, andshall operate to transfer title to the time-share estate from each granteetherein back to the developer provided the following conditions are satisfied:
1. The reverter deed from the developer contains the possibility of reverterby insertion of the language required by subsection E;
2. A grantee in the reverter deed is in default and has been providedthereafter with at least two written notices to this effect with no less thana 10-calendar day right to cure in each notice;
3. A grantee in the reverter deed has been provided with no less than 30calendar days within which to cure the default before exercise of thepossibility of reverter occurs;
4. At the time of exercise of the possibility of reverter, the developer isthe sole holder of the note and the sole beneficiary under the deed of trust;
5. The exercise by the developer of the possibility of reverter is evidencedby an affidavit duly recorded where the reverter deed was recorded whichcontains the following information:
a. A description of the time-share project and time-share estate and astatement that upon recordation of the affidavit, title to such time-shareestate reverts back to the developer;
b. A description and recitation of the reverter deed which contained thepossibility of reverter and a reference of when and where such deed wasrecorded and its recording information;
c. A recitation that the purchaser defaulted in or violated a consumerdocument and failed to cure such default or violation within a period of noless than 30 calendar days;
d. A description of the note and deed of trust with a recitation that (i) thedeveloper is the sole holder of the note and the sole beneficiary under thedeed of trust, (ii) such note is cancelled and declared void, and (iii) suchdeed of trust is automatically released;
e. A recitation that such purchaser's rights and entitlements in thetime-share estate, the time-share project and the time-share program areextinguished effective the date of recordation of the affidavit;
f. The signature of a duly authorized representative of the developerverified under oath as to its truth of the statements contained therein; and
6. A copy of the recorded affidavit described in subdivision A 5 is sent bythe developer to each purchaser at his address as maintained by developer orthe association, along with the statement from the developer explaining theconsequences of such affidavit with emphasis on subparts a, d and e ofsubdivision A 5.
B. The recordation of the affidavit referred to in subdivision A 5 shallautomatically:
1. Transfer title to the time-share estate from each grantee in the reverterdeed to the developer without the need of a deed to the developer or consentfrom such grantee;
2. Declare null and void and act as an automatic release of the deed of trustor mortgage given by such grantee to finance a portion of the purchase priceof the time-share estate with no deficiency resulting;
3. Void and act as an automatic release of any debt from such grantee to thedeveloper arising out of the purchase or financing of the time-share estateas evidenced by the note; and
4. Extinguish any ownership or other property right or entitlements suchgrantee has in and to the time-share estate, the time-share project and thetime-share program.
C. The clerk of court shall record such affidavit in the land books where thetime-share project is located indexing the purchaser in the grantor indicesand the developer in the grantee indices. For indexing purposes only, thepurchaser shall be referred to as the grantor and the developer as thegrantee. The cost of recording the affidavit shall be limited to the clerk'sfee only.
D. In the exercise of the possibility of reverter, the developer shall beliable to the purchaser for his failure to comply with the provisions of thissection; however, such failure shall not operate to defeat or diminish thetransfer of title to the time-share estate from each grantee in the reverterdeed to the developer upon recordation of the affidavit referred to insubdivision A 5. The developer's liability shall be limited to the amountpaid by such purchaser towards the purchase price of the time-share estateexclusive of interest and closing costs but without offset for thepurchaser's utilization of the time-share program. The court shall awardcourt costs and reasonable attorney's fees to the prevailing party.
E. The reverter deed shall contain the following statement in order topossess the possibility of reverter. The opening phrase shall be in boldface, 10-point type as follows:
Loss of Time-Share Estate. Developer has inserted into this deed a"possibility of reverter." By this concept, should a grantee of thisreverter deed default in or violate an obligation imposed by a consumerdocument for a period of at least 60 days and fail to cure such violation ordefault within no less than 30 calendar days thereafter, title to thetime-share will revert back to the developer upon the developer recording anaffidavit to this effect where this reverter deed is recorded. Only thedeveloper can elect to exercise the possibility of reverter. Each grantee inthis reverter deed will be sent at least two notices of default or violationwithin the 30-day period with no less than 10 days to cure in each instance.The notice will be sent to the address of each grantee maintained at theoffice of the developer or the association. After the cure period has lapsedand the developer records the affidavit, title to the time-share estate willautomatically vest in the developer and any note executed by grantee will bedeemed canceled and any recorded deed of trust securing such note shall beautomatically released. The possibility of reverter will itself lapse andbecome null and void at the soonest to occur of the following: (i) the deedof trust is released of record, (ii) a statement that the deed of trust isreleased of record is executed and recorded by the developer with a date ofwhen the possibility of reverter was or is to lapse, or (iii) when thetime-share program terminates pursuant to either the Virginia Real EstateTime-Share Act or the time-share instrument which created such program.
F. The filing of the affidavit referred to in subdivision A 5 shall notresult in the requirement of any filing under Chapter 2 (§ 26-8 et seq.) ofTitle 26.
G. Any possibility of reverter not otherwise exercised by the developerpursuant to this section shall itself lapse and become null and void at thesoonest to occur of the following: (i) the deed of trust is released ofrecord, (ii) a statement that the deed of trust is released of record isexecuted and recorded by the developer with a date of when the possibility ofreverter was or is to lapse, or (iii) when the time-share program terminatespursuant to either this chapter or the time-share instrument.
H. In exercising the possibility of reverter, the developer shall be entitledto retain as liquidated damages all monies paid by the purchaser inconformity with any consumer document.
I. The exercise of the possibility of reverter shall not operate to diminishor eliminate (i) any debt of the purchaser to the time-share association orother third party occasioned by ownership of the time-share estate orparticipation in the time-share program or (ii) any recorded lien junior inpriority to the deed of trust lien referred to in this section.
A. A possibility of reverter contained in a reverter deed for a time-shareestate subject to reverter is valid, enforceable in law and in equity, andshall operate to transfer title to the time-share estate from each granteetherein back to the developer provided the following conditions are satisfied:
1. The reverter deed from the developer contains the possibility of reverterby insertion of the language required by subsection E;
2. A grantee in the reverter deed is in default and has been providedthereafter with at least two written notices to this effect with no less thana 10-calendar day right to cure in each notice;
3. A grantee in the reverter deed has been provided with no less than 30calendar days within which to cure the default before exercise of thepossibility of reverter occurs;
4. At the time of exercise of the possibility of reverter, the developer isthe sole holder of the note and the sole beneficiary under the deed of trust;
5. The exercise by the developer of the possibility of reverter is evidencedby an affidavit duly recorded where the reverter deed was recorded whichcontains the following information:
a. A description of the time-share project and time-share estate and astatement that upon recordation of the affidavit, title to such time-shareestate reverts back to the developer;
b. A description and recitation of the reverter deed which contained thepossibility of reverter and a reference of when and where such deed wasrecorded and its recording information;
c. A recitation that the purchaser defaulted in or violated a consumerdocument and failed to cure such default or violation within a period of noless than 30 calendar days;
d. A description of the note and deed of trust with a recitation that (i) thedeveloper is the sole holder of the note and the sole beneficiary under thedeed of trust, (ii) such note is cancelled and declared void, and (iii) suchdeed of trust is automatically released;
e. A recitation that such purchaser's rights and entitlements in thetime-share estate, the time-share project and the time-share program areextinguished effective the date of recordation of the affidavit;
f. The signature of a duly authorized representative of the developerverified under oath as to its truth of the statements contained therein; and
6. A copy of the recorded affidavit described in subdivision A 5 is sent bythe developer to each purchaser at his address as maintained by developer orthe association, along with the statement from the developer explaining theconsequences of such affidavit with emphasis on subparts a, d and e ofsubdivision A 5.
B. The recordation of the affidavit referred to in subdivision A 5 shallautomatically:
1. Transfer title to the time-share estate from each grantee in the reverterdeed to the developer without the need of a deed to the developer or consentfrom such grantee;
2. Declare null and void and act as an automatic release of the deed of trustor mortgage given by such grantee to finance a portion of the purchase priceof the time-share estate with no deficiency resulting;
3. Void and act as an automatic release of any debt from such grantee to thedeveloper arising out of the purchase or financing of the time-share estateas evidenced by the note; and
4. Extinguish any ownership or other property right or entitlements suchgrantee has in and to the time-share estate, the time-share project and thetime-share program.
C. The clerk of court shall record such affidavit in the land books where thetime-share project is located indexing the purchaser in the grantor indicesand the developer in the grantee indices. For indexing purposes only, thepurchaser shall be referred to as the grantor and the developer as thegrantee. The cost of recording the affidavit shall be limited to the clerk'sfee only.
D. In the exercise of the possibility of reverter, the developer shall beliable to the purchaser for his failure to comply with the provisions of thissection; however, such failure shall not operate to defeat or diminish thetransfer of title to the time-share estate from each grantee in the reverterdeed to the developer upon recordation of the affidavit referred to insubdivision A 5. The developer's liability shall be limited to the amountpaid by such purchaser towards the purchase price of the time-share estateexclusive of interest and closing costs but without offset for thepurchaser's utilization of the time-share program. The court shall awardcourt costs and reasonable attorney's fees to the prevailing party.
E. The reverter deed shall contain the following statement in order topossess the possibility of reverter. The opening phrase shall be in boldface, 10-point type as follows:
Loss of Time-Share Estate. Developer has inserted into this deed a"possibility of reverter." By this concept, should a grantee of thisreverter deed default in or violate an obligation imposed by a consumerdocument for a period of at least 60 days and fail to cure such violation ordefault within no less than 30 calendar days thereafter, title to thetime-share will revert back to the developer upon the developer recording anaffidavit to this effect where this reverter deed is recorded. Only thedeveloper can elect to exercise the possibility of reverter. Each grantee inthis reverter deed will be sent at least two notices of default or violationwithin the 30-day period with no less than 10 days to cure in each instance.The notice will be sent to the address of each grantee maintained at theoffice of the developer or the association. After the cure period has lapsedand the developer records the affidavit, title to the time-share estate willautomatically vest in the developer and any note executed by grantee will bedeemed canceled and any recorded deed of trust securing such note shall beautomatically released. The possibility of reverter will itself lapse andbecome null and void at the soonest to occur of the following: (i) the deedof trust is released of record, (ii) a statement that the deed of trust isreleased of record is executed and recorded by the developer with a date ofwhen the possibility of reverter was or is to lapse, or (iii) when thetime-share program terminates pursuant to either the Virginia Real EstateTime-Share Act or the time-share instrument which created such program.
F. The filing of the affidavit referred to in subdivision A 5 shall notresult in the requirement of any filing under Chapter 2 (§ 26-8 et seq.) ofTitle 26.
G. Any possibility of reverter not otherwise exercised by the developerpursuant to this section shall itself lapse and become null and void at thesoonest to occur of the following: (i) the deed of trust is released ofrecord, (ii) a statement that the deed of trust is released of record isexecuted and recorded by the developer with a date of when the possibility ofreverter was or is to lapse, or (iii) when the time-share program terminatespursuant to either this chapter or the time-share instrument.
H. In exercising the possibility of reverter, the developer shall be entitledto retain as liquidated damages all monies paid by the purchaser inconformity with any consumer document.
I. The exercise of the possibility of reverter shall not operate to diminishor eliminate (i) any debt of the purchaser to the time-share association orother third party occasioned by ownership of the time-share estate orparticipation in the time-share program or (ii) any recorded lien junior inpriority to the deed of trust lien referred to in this section.
A. A possibility of reverter contained in a reverter deed for a time-shareestate subject to reverter is valid, enforceable in law and in equity, andshall operate to transfer title to the time-share estate from each granteetherein back to the developer provided the following conditions are satisfied:
1. The reverter deed from the developer contains the possibility of reverterby insertion of the language required by subsection E;
2. A grantee in the reverter deed is in default and has been providedthereafter with at least two written notices to this effect with no less thana 10-calendar day right to cure in each notice;
3. A grantee in the reverter deed has been provided with no less than 30calendar days within which to cure the default before exercise of thepossibility of reverter occurs;
4. At the time of exercise of the possibility of reverter, the developer isthe sole holder of the note and the sole beneficiary under the deed of trust;
5. The exercise by the developer of the possibility of reverter is evidencedby an affidavit duly recorded where the reverter deed was recorded whichcontains the following information:
a. A description of the time-share project and time-share estate and astatement that upon recordation of the affidavit, title to such time-shareestate reverts back to the developer;
b. A description and recitation of the reverter deed which contained thepossibility of reverter and a reference of when and where such deed wasrecorded and its recording information;
c. A recitation that the purchaser defaulted in or violated a consumerdocument and failed to cure such default or violation within a period of noless than 30 calendar days;
d. A description of the note and deed of trust with a recitation that (i) thedeveloper is the sole holder of the note and the sole beneficiary under thedeed of trust, (ii) such note is cancelled and declared void, and (iii) suchdeed of trust is automatically released;
e. A recitation that such purchaser's rights and entitlements in thetime-share estate, the time-share project and the time-share program areextinguished effective the date of recordation of the affidavit;
f. The signature of a duly authorized representative of the developerverified under oath as to its truth of the statements contained therein; and
6. A copy of the recorded affidavit described in subdivision A 5 is sent bythe developer to each purchaser at his address as maintained by developer orthe association, along with the statement from the developer explaining theconsequences of such affidavit with emphasis on subparts a, d and e ofsubdivision A 5.
B. The recordation of the affidavit referred to in subdivision A 5 shallautomatically:
1. Transfer title to the time-share estate from each grantee in the reverterdeed to the developer without the need of a deed to the developer or consentfrom such grantee;
2. Declare null and void and act as an automatic release of the deed of trustor mortgage given by such grantee to finance a portion of the purchase priceof the time-share estate with no deficiency resulting;
3. Void and act as an automatic release of any debt from such grantee to thedeveloper arising out of the purchase or financing of the time-share estateas evidenced by the note; and
4. Extinguish any ownership or other property right or entitlements suchgrantee has in and to the time-share estate, the time-share project and thetime-share program.
C. The clerk of court shall record such affidavit in the land books where thetime-share project is located indexing the purchaser in the grantor indicesand the developer in the grantee indices. For indexing purposes only, thepurchaser shall be referred to as the grantor and the developer as thegrantee. The cost of recording the affidavit shall be limited to the clerk'sfee only.
D. In the exercise of the possibility of reverter, the developer shall beliable to the purchaser for his failure to comply with the provisions of thissection; however, such failure shall not operate to defeat or diminish thetransfer of title to the time-share estate from each grantee in the reverterdeed to the developer upon recordation of the affidavit referred to insubdivision A 5. The developer's liability shall be limited to the amountpaid by such purchaser towards the purchase price of the time-share estateexclusive of interest and closing costs but without offset for thepurchaser's utilization of the time-share program. The court shall awardcourt costs and reasonable attorney's fees to the prevailing party.
E. The reverter deed shall contain the following statement in order topossess the possibility of reverter. The opening phrase shall be in boldface, 10-point type as follows:
Loss of Time-Share Estate. Developer has inserted into this deed a"possibility of reverter." By this concept, should a grantee of thisreverter deed default in or violate an obligation imposed by a consumerdocument for a period of at least 60 days and fail to cure such violation ordefault within no less than 30 calendar days thereafter, title to thetime-share will revert back to the developer upon the developer recording anaffidavit to this effect where this reverter deed is recorded. Only thedeveloper can elect to exercise the possibility of reverter. Each grantee inthis reverter deed will be sent at least two notices of default or violationwithin the 30-day period with no less than 10 days to cure in each instance.The notice will be sent to the address of each grantee maintained at theoffice of the developer or the association. After the cure period has lapsedand the developer records the affidavit, title to the time-share estate willautomatically vest in the developer and any note executed by grantee will bedeemed canceled and any recorded deed of trust securing such note shall beautomatically released. The possibility of reverter will itself lapse andbecome null and void at the soonest to occur of the following: (i) the deedof trust is released of record, (ii) a statement that the deed of trust isreleased of record is executed and recorded by the developer with a date ofwhen the possibility of reverter was or is to lapse, or (iii) when thetime-share program terminates pursuant to either the Virginia Real EstateTime-Share Act or the time-share instrument which created such program.
F. The filing of the affidavit referred to in subdivision A 5 shall notresult in the requirement of any filing under Chapter 2 (§ 26-8 et seq.) ofTitle 26.
G. Any possibility of reverter not otherwise exercised by the developerpursuant to this section shall itself lapse and become null and void at thesoonest to occur of the following: (i) the deed of trust is released ofrecord, (ii) a statement that the deed of trust is released of record isexecuted and recorded by the developer with a date of when the possibility ofreverter was or is to lapse, or (iii) when the time-share program terminatespursuant to either this chapter or the time-share instrument.
H. In exercising the possibility of reverter, the developer shall be entitledto retain as liquidated damages all monies paid by the purchaser inconformity with any consumer document.
I. The exercise of the possibility of reverter shall not operate to diminishor eliminate (i) any debt of the purchaser to the time-share association orother third party occasioned by ownership of the time-share estate orparticipation in the time-share program or (ii) any recorded lien junior inpriority to the deed of trust lien referred to in this section.
