55-383 - Statute of limitations; actions; limitation on rescission rights. - Virginia Statutes

§ 55-383. Statute of limitations; actions; limitation on rescission rights.

A. Except as otherwise provided in § 55-389, a judicial proceeding where thesufficiency of the time-share instrument, the accuracy of the public offeringstatement, or validity of any contract of purchase is in issue and arescission of the contract or damages is sought shall be commenced within twoyears after the date of the contract of purchase, notwithstanding that thepurchaser's terms of payments may extend beyond this period of limitation;however, with respect to the enforcement of provisions in the contract ofpurchase which require the continued furnishing of services and thereciprocal payments to be made by the purchaser, the period of bringing ajudicial proceeding will continue for a period of two years for each breach.

Rescission of the contract shall not be granted by the court unless (i) theinaccuracy of the public offering statement or the insufficiency of thetime-share instrument directly and adversely affected the purchaser's rightto participate in the time-share program or to own his time-share or (ii) atthe time of the contract, the developer has sold more time-shares than thereare time-share units that have been completed or bonded to accommodate suchsales. Further, if damages are awarded, the amount of the damages shall belimited to actual damages sustained.

B. If a developer has substantially complied in good faith with theprovisions of this chapter, a nonmaterial error or omission shall not beactionable. A nonmaterial error or omission shall not be sufficient to permita purchaser to cancel a contract after the cancellation period provided by §55-376 has expired.

(1981, c. 462; 2006, c. 653; 2008, c. 376.)