55-485 - Escrow of deposits. - Virginia Statutes

§ 55-485. Escrow of deposits.

A. Any deposit made in connection with the purchase or reservation of acooperative interest from a person required to deliver a public offeringstatement pursuant to subsection C of § 55-477 shall be placed in escrow andheld either in this Commonwealth or in the state where the unit which is apart of that cooperative interest is located in an account designated solelyfor that purpose by a title insurance company, attorney or real estate brokerlicensed under the laws of this Commonwealth, an independent bonded escrowcompany or an institution whose accounts are insured by a governmental agencyor instrumentality until: (i) delivered to the declarant at closing; (ii)delivered to the declarant because of purchaser's default under a contract topurchase the cooperative interest; or (iii) refunded to the purchaser.

B. Any deposit made in connection with the purchase of a cooperative interestfrom a person not required to deliver a public offering statement shall beplaced in escrow in the same manner as prescribed in subsection A of thissection. Upon receipt of the certificate called for in § 55-484, should thepurchaser elect to void the contract, the seller may deduct the actualcharges by the association for preparation of the certificate. Otherwise, thedeposit shall be promptly returned to the purchaser.

(1982, c. 277.)