Virginia REALTORS® approached the 2017 General Assembly Session with the goal of addressing several issues. As the Session comes to an end, Virginia REALTORS® will have achieved another successful Legislative Agenda that helps REALTORS® and the real estate industry.
Under HB2034, the standard “Red Flag” disclosure statement is renamed to more accurately reflect its true purpose – to alert the buyer to beware of certain matters that may affect the buyer’s decision to purchase the property. The bill also adds two “buyer to beware” statements advising purchasers to research whether the property is subject to underlying conservation or other easements, or a community development authority.
Changes were also made to the rules governing property and condo owners’ associations. HB2045, SB1231, HB2274, and SB1255 accomplish several things, including:
- Strengthen the requirement that resale disclosure packets be delivered within 14 days by permitting the Common Interest Community Board to impose up to $1,000 penalty against the association for its failure to deliver.
- Deter associations from placing limits on the information that is required by VREB to be printed on real estate for sale signs.
- Deter associations from requiring additional proof of representation from real estate licensees who are duly-authorized representatives of their clients.
Virginia REALTORS® were also successful in helping to ensure that tenants, new owners, and property managers have a smoother transition after foreclosure of a property. HB1623, SB991, HB2281, and SB966 allow the property management agreement and the tenant’s lease to continue on a month-to-month basis. Property managers will be able to transfer the security deposit to the new owner rather than to the foreclosed upon owner and will be allowed to collect rent. Tenants will be permitted to pay rent to either the new owner, property manager, or courts.
All of these bills have been passed by both the House and the Senate. If signed by the Governor, they will be effective July 1, 2017.