General Assembly Approves Full Realtor® Agenda

The Virginia General Assembly passed a number of measures affecting Realtors® and homeowners during the 2015 legislative session. NVAR and the Virginia Association of Realtors® worked to pass several measures on your behalf, including those introduced as part of our 2015 Realtor® Legislative Agenda. 

In addition, the VAR produces a Report Card which outlines legislators’ votes on certain key real estate measures. The Report Card covers both Realtor®-introduced legislation and other designated bills. 

All of the measures summarized here were signed into law by Governor Terry McAulliffe (D) and become effective on July 1, 2015. Please visit our website for more information about all new laws impacting our industry, as well as how you can help protect Realtors® through the Northern Virginia Realtors® Political Action Committee. This information may be found at: go.nvar.com/govaffairs

REALTOR® AND REPORT CARD BILLS
Delinquent Payments for Water or Sewer Systems HB 1424 (Marshall, D.W.) SB 868 (Chafin)
Current law prohibits water authorities from attaching a lien or otherwise requiring a landlord or property owner to pay delinquent water bills incurred by their tenants before providing service to new tenants. However, an oversight in the Code allowed this practice to continue in a few localities. This clean-up bill corrects the problem. 

Landlord-Tenant Laws HB 1451 (Miller)
Makes several changes to the Virginia Landlord Tenant Laws, including the following: 
• Provides that the 120-day termination notice shall not be waived, except in the case of a tenancy from month to month, which may be terminated by the landlord by giving the tenant 30 days' written notice prior to the next rent due date
• Provides that nothing in this law prohibits an owner of a commercial or residential building from including water, sewer, electrical, natural gas, or other utilities in the amount of rent as specified in the rental agreement or lease
• Prohibits a landlord from photocopying a U.S. government-issued identification under certain circumstances
• Allows a landlord and a tenant to agree that the tenant pay prepaid rent
• Allows a landlord to enter into an agreement with a third-party service provider to maintain tenant records in electronic format, and releases the landlord from liability in the event of a breach of the electronic data of the third-party service provider 
• Allows a landlord to include as part of the rent, the tenant’s prorated share of the insurance coverage of the premises or the prorated share of a self-insurance program deposited in an escrow account by the landlord. The landlord may apply these funds to pay claims  pursuant to the landlord’s self-insurance plan 
• Allows a landlord to release information about a tenant or prospective tenant to the managing agent or a successor to the managing agent
• Provides that when there is more than one tenant on a lease and there is no forwarding address, after one year and 45 days, the landlord shall forward the balance of the security deposit and other moneys due the tenant to the Virginia Department of Housing and Community Development 
• Allows a landlord and tenant to agree for the tenant to temporarily vacate a dwelling unit in less than 30 days to provide access for the landlord to remedy nonemergency property conditions  
• Provides that, if there is fire or casualty damage, the landlord may terminate the rental agreement by giving 14 days’ notice to the tenant rather than 30 days’ notice. 

R - Recovering Rent or Possession for Family Trusts HB 1452 (Miller)
Because family trusts were not specifically spelled out in the VRLTA, property managers could not appear in court on behalf of their clients. This law corrects that oversight. An employee who has proper written authorization by a manager, general partner, or trustee of a family trust may sign pleadings to obtain a judgment for possession or for rent or damages under the VRLTA.

R - Enticing Persons to a Dwelling to Commit a Crime HB 1493 (Miller) 
This law was enacted to protect Realtors® and other professionals from being lured into a house by someone who has the intent to commit a crime against them. The law provides that a person who commits certain specified crimes by enticing, soliciting, requesting, or otherwise causing the victim to enter the dwelling is guilty of a separate and distinct Class 6 felony. Examples of crimes that fall under this law include murder, abduction, robbery, and rape.

R - Virginia Residential Property Disclosure Act HB 1642 (Stolle) SB 775 (Locke)
As localities are adding storm water facilities on individual properties and requiring that homeowners maintain these or risk penalties, buyers are advised to determine if such an agreement is attached to a property. The law adds language to the Virginia Residential Property Disclosure Statement’s list of disclosures advising the purchaser to exercise due diligence in investigating whether there is a storm water retention maintenance agreement on the property. 

Similarly, buyers should be able to identify whether properties that are located in FEMA-determined special flood hazard zones will need additional flood insurance. The law advises purchasers to exercise due diligence by: obtaining a flood certification or mortgage lender determination  of whether the property is located in a special flood hazard areas and; reviewing any map depicting special flood hazard areas to determine whether flood insurance is required. 

Variances Granted by the Board of Zoning Appeals HB 1849 (Marshall, D.W.)
This law is a reform of the Board of Zoning Appeals (BZA) process which changes the burden of proof requirements to obtain a variance from a local zoning ordinance. The law eliminates the requirement that a variance is needed due to “unnecessary or unreasonable hardship to the property owner” and instead allows a variance to be issued because the ordinance “unreasonably restricts the utilization of the property.” It also requires that the property owners and local government be given equal time to present their cases at the BZA hearing. The new law changes the burden of proof from existing law. In a BZA hearing, the property owner has the burden of proof by a preponderance of the evidence in a request for a variance. It also: establishes a statewide standard for private property owner variance request hearings; allows for and regulates communications between all parties involved in the case; and amends appeal processes.

R - Real Estate Transaction Recovery Fund HB 1965 (Rust)
The Real Estate Transaction Recovery Fund was established to award compensation to consumers who have been harmed in a transaction where the licensee was found guilty of a Virginia Real Estate Board regulation (VREB). Previous law required judges to make a specific judgment of “improper or dishonest conduct” in order to find in favor of a claimant. This technicality was keeping the VREB from awarding money owed to consumers as a result of a general judgment. The new law eliminates the need for the prescriptive judgment and clarifies the eligibility requirements for consumers to make a claim under the Fund

R - Condo and POA Laws HB 2100 (Peace)
This legislation provides clarity regarding what fees may be charged by POAs and COAs, and what actions ownership associations may take. Specifically, the new law prohibits a unit owners' association from charging any fees not expressly authorized by law or in the declaration and gives the Common Interest Community Board the power to assess a monetary penalty for certain violations. The bill also contains technical amendments.

In addition, the law: provides that an association may not limit or prohibit an owner from renting his unit or lot unless authorized in the declaration; prohibits the association from charging fees for any rental, including a security deposit, or other processing fee in excess of $50 as a condition of approval of the rental; and prohibits the association from requiring the owner to use a lease prepared by the association. 

The law also: sets new rules for providing association disclosure documents electronically; requires an association to maintain a website link for 90 days if the disclosure packet is provided electronically by that link; and prohibits the charging of additional fees, beyond a $50 update fee, for a 12-month period. 

Cash Proffers for Residential Construction SB 1257 (Smith)
This bill removes the July 1, 2017, expiration date of a current law that delays the payment of certain per-dwelling-unit cash proffers until after the final inspection of the property and prior to the issuance of any certificate of occupancy.