A title examiner may rely upon the existence of development rights in a common interest community if:
(a) The property is a project formed under Vermont Common Interest Ownership Act (“VCIOA”); and
(b) The declaration includes specific descriptions of rights reserved to the developer / declarant for the purpose of adding, subdividing or converting units, creating common elements or limited common elements, and/or adding or withdrawing real estate, within a common interest community.
A title examiner may assume that the exercise of development rights was effective to create a valid unit in the common interest community if:
a) The development rights as defined by 27A V.S.A. §1-103(14)(A) – (D) were properly reserved in the original declaration; and
b) the requirements for exercise of the development rights as specified in 27A VSA 2-110, including the recording of any amended plat in compliance with 27A V.S.A. §2-109 are completed prior to the sale or transfer of the unit.
Comment 1: Requirements of contents of a declaration to adequately reserve development rights are described in 27A V.S.A. §2-105(4) (8) and (9).
Comment 2: Plats and plans must be revised or created new upon exercising any development right reserved. See 27 V.S.A. §2-109(f).
Comment 3: Development rights defined under VCIOA differ from special declarant rights defined under VCIOA; however, development rights are a subset of special
declarant rights defined under 27A V.S.A. 1-103(28).
Comment 4: Transfer of development rights are governed by 27A V.S.A. §3-104 Transfer of special declarant rights.
Comment 5: If applicable, see also the limitations set forth in 27 V.S.A. §2-122 Addition of unspecified real estate.
History
September 2024: Standard added.