Realtors® Are Ready for Richmond

Every year, NVAR members and lobbyists work with the Northern Virginia delegation of the Virginia General Assembly to promote a statewide real estate agenda. Throughout the session NVAR monitors legislation introduced that may impact the real estate industry and private property rights. NVAR’s Legislative Bill Review Task Force members, together with members who serve on the Virginia Association of Realtors® Public Policy Committee, review and take positions on dozens of bills.

The 2017 General Assembly session began on Wednesday, January 11. Realtors® can be involved by participating in our annual trip to the Virginia Capitol in Richmond on Wednesday, January 25. Stay up-to-date with legislative news from your Town Hall Notes emails and view our new government affairs blog on the redesigned nvar.com.

2017 REALTOR® AGENDA

“Realtors® can be involved by participating in our annual trip to the Virginia Capitol in Richmond on Wednesday, January 25.”

Transfer of Security Deposits upon the Sale of a Dwelling Unit
Proposed legislation will allow a property manager to release security deposits to the new owner upon purchase of residential rental property. The manager is simply required to provide notice to the tenants instead of obtaining their signed consent to release security deposits to the new owner.

Licensee Responsibilities – Transfer of Escrow Funds and Foreclosures
Realtor®-supported legislation prescribes the responsibilities of a property manager and provides for the transition of funds to the new owner immediately following a foreclosure. This bill allows the tenant to continue to pay rent to either the successor landlord, the property manager, or the courts, though an escrow account.  

The proposed legislation also allows the property manager to accept the rent at the time of foreclosure. It allows for a month-to-month property management agreement with the new owner unless otherwise provided in the agreement. It also allows the property manager to release all escrow funds to the new owner, and requires the property manager to notify the tenant about the release.

Property Owners Association /Condo Act Amendments
In what has become an annual tradition, the 2017 Realtor® agenda includes clarifications and updates to the POA and Condo Acts.

The Condo Act would be amended to mirror the POA Act by allowing the purchasers to cancel the contract at any time before settlement if, (i) they have not been notified that the resale certificate will not be available, or (ii) the resale certificate is not delivered to the purchaser.

“The Condo Act would be amended to mirror the POA Act by allowing the purchasers to cancel the contract at any time before settlement if, ...”

Additional tweaks to both Acts provide that associations cannot condition, limit or prohibit for-sale signs, and establish that if sign conditions are imposed by the association rules, then those rules must comply with the VREB regulations governing real estate signs. Also, under the proposed bills, associations cannot require that real estate licensees have a power of attorney in order to represent their clients before the association. Finally, the bills add that failure to deliver the association disclosure packet within the 14-day requirement can lead to fines being levied by the Common Interest Community Board.

Amendments to the Residential Disclosure Acts
In an effort to cleanup and clarify the language in the residential real estate disclosure law, Realtor®-proposed legislation seeks to rename the “red-flag” disclosure statement as the “buyer to beware” statement, and to add the following buyer beware statements:
•    Owner makes no representations with respect to underlying conservation or other easements.
•    Owner makes no representations with respect to an underlying community development authority.

The bill will also allow for electronic delivery of the disclosure form to the potential purchaser.

Facing issues that need a legislative or regulatory solution?
 We need to know! The NVAR Public Policy Committee needs to hear from you as we develop the Legislative Program for 2018. Please submit any issues and background information to govaffairs@nvar.com by April 1, 2017.