2008 REALTOR® General Assembly Agenda: House Bill 221: Landlord Mold Immunity (companion SB 232) Impact on Realtors®: Landlords have been sued frivolously for mold claims by their tenants. While they are eventually cleared, they incur tens or even hundreds of thousands of dollars in legal fees to fight the claim. This would allow a pre-trial hearing, much like what is currently given for lead-based paint claims, where the landlord can show compliance with the landlord-tenant act mold procedures and avoid a trial.
Status: APPROVED, effective July 1, 2008 House Bill 445: Residential Overcrowding Enforcement in Rental Units Impact on Realtors®: If a tenant commits an overcrowding violation without the landlord's permission, then the landlord can still be fined by their locality for every day that the violation exists. This would clarify that a landlord who is actively working to evict the tenant for overcrowding cannot face fines.
Status: APPROVED, effective July 1, 2008 House Bill 580: Mold Remediation for Landlords and Tenants Impact on Realtors®: This legislation clearly outlines the obligations of both tenants and landlords regarding mold prevention and remediation. The landlord is responsible for maintaining the property to prevent the accumulation of mold and to promptly respond to tenant notices of mold growth. By complying with the provisions in this act, the landlord would only be liable if he or she failed to exercise ordianry care, in an amount totalling only the tenant's actual damages. Status: APPROVED, effective July 1, 2008 House Bill 720: Landlord - Tenant Act Revisions Impact on Realtors®: This revision of the Landlord-Tenant Act adds clear definitions for application fees and what constitutes "written notice." In addition, it outlines the fees the landlord can recover from the tenant for failure to pay rent. Finally it would set the 2008 interest rate on security deposits at 0.75%. Status: APPROVED, effective July 1, 2008 House Bill 1076: Property Owners' Association Resale Disclosure Packets Impact on Realtors®: NVAR has received many complaints from Realtors® that condo and POA associations and their management companies are still not complying with the law regarding resale packet fees and procedures. This bill would outline clearly what fees can be charged and that, in the case of professionally managed associations, fees can be deferred until settlement. In addition, a companion bill, HB 516, would create an oversight board for community managers, giving Realtors® and property owners recourse if the association does not comply with the law. Status: APPROVED (HB 516), effective July 1, 2008 House Bill 1078: Vested Property Rights for Nonconforming Uses Impact on Realtors®: This legislation further protects property owners from localities seeking to alter past zoning application decisions. The legislation stems from a
Status: APPROVED, effective July 1, 2008 House Bill 1098: Clarification to Virginia Wet Settlement Act Impact on Realtors®: Under the Wet Settlement Act, the property has not "settled" until the deed is recorded and funds are disbursed. Some are claiming that the wet settlement act prevents a buyer from obtaining the keys at a Friday settlement and moving in during the weekend, even if that is agreed to in the purchase contract. This bill would allow the purchase contract settlement provisions to override the Wet Settlement Act.
Status: APPROVED, effective July 1, 2008 House Bill 1114: Requirements for Real Estate Firm License Impact on Realtors®: This legislation mandates that business entities, including LLCs, will not be granted a firm license unless every managing member or officer actively participating in the firm brokerage business holds a license as a real estate broker. This will conform LLC rules to those governing corporations.
Status: APPROVED, effective July 1, 2008 House Bill 1397: Repeals Typeface Requirements for Real Estate Property Disclosures Impact on Realtors®: The Department of Legislative Services erroneously included the requirement that disclosures be made in bold lettering or all capital letters and in a separate box in the 2007 revision of the disclosure/disclaimer forms. Status: APPROVED, effective July 1, 2008 Senate Bill 158: Disclosure of Automated Value Model Appraisal Impact on Realtors®: The use of Automated Valuation Model (AVMs) to determine a property’s worth is on the rise. Buyers should know if they are receiving an AVM in place of a traditional appraisal.
Status: APPROVED, effective July 1, 2008 Senate Bill 232: Landlord Mold Immunity (companion: HB 221) Impact on Realtors®: Landlords have been sued frivolously for mold claims by their tenants. While they are eventually cleared, they incur tens or even hundreds of thousands of dollars in legal fees to fight the claim. This would allow a pre-trial hearing, much like what is currently given for lead-based paint claims, where the landlord can show compliance with the landlord-tenant act mold procedures and avoid a trial. Status: APPROVED, effective July 1, 2008 Senate Bill 551: Calculation of Grantor's Tax Impact on Realtors®: Last year, the General Assembly added a provision that grantor's taxes should be charged on the higher of the sales price or the “value of the interest,” which was not defined in the legislation. Several clerk's offices and settlement companies have interpreted this to mean that they must charge grantor's taxes on the higher of the sales price or the assessed value. This bill would clarify that those taxes will be charged against the stated consideration, which is the sales price.
Status: CARRIED OVER TO 2009 Based on SB 551's financial impact statement and the state's declining revenues, the General Assembly voted to carry over the bill to the 2009 General Assembly session. NVAR will again make this legislation a top priority for 2009.
NVAR Key Issue Summaries: Affordable Housing |
