This document summarizes several new real estate laws going into effect in Virginia on July 1st. It covers new laws on appraisal management companies, landlord/tenant laws, condominium acts, owner financing, tenant utility liens, and other issues. Specific provisions include licensing of AMCs, allowing copies of leases in court, tenant rights after foreclosure, landlord insurance requirements, limits on tenant utility bill liens, and prohibiting overtime fees for inspections.

2.  New Agency & Professionalism Bill
 Appraisal Management Companies
(AMCs)
 Landlord & Tenant Laws
 MORE Landlord & Tenant Laws
 Condominium Act
JULY 1  Owner Financing
All laws go into effect  Tenant Utility Liens
 Fairfax City Rental Inspection Ordinance
 Alternative Onsite Sewage
System Bonding

3.  The Real Estate Board will develop a
plan and regulations permitting you to
“carry over” excess CE elective credit
hours to the next license term.
AGENCY &  The Real Estate Board will have authority
to issue guidance and opinion on scope-
PROFESSIONALISM of-work questions regarding Unlicensed
Assistants.
 The Real Estate Board will be expressly
given authority to speak to Team Practice
in this context.

4.  Brokers will be able to do business as a
“business entity.” A quirk in the law had
allowed both salesmen and associate
brokers to work as salesmen in business
entity forms, but prohibited a broker from
doing business as a broker in a business
AGENCY & entity form.
PROFESSIONALISM
Cont’d.  You will not have to advise your client to
hire a lawyer to represent them at
settlement just because the other side has
one!
 Broker supervision standards are taken out
of regulation and put in statute – to
emphasize their importance.

5.  A Broker Self-Audit will be required to be
performed once per license cycle, by the
principal or supervising broker (or sole
practitioner). This audit must be noted on
your renewal (but you don’t have to send
it in) and must be kept on the premises,
AGENCY & and made available to any Real Estate
PROFESSIONALISM Board investigator or agent who asks to
see it.
Cont’d.
 This follows the successful model of
Arizona – and may help to resolve the
ongoing dispute that led to “random
audits” by the Real Estate Board.
 This will begin January 1, 2013

6. FOR MORE INFORMATION ON
AGENCY LAW
CHANGES,
VISIT VAR’S AGENCY CENTER
THIS ONLINE RESOURCE GIVES YOU ACCESS TO
 VIDEOS
 ARTICLES
 LEGAL Q&A
WWW.VAREALTOR.COM/AGENCY

7.  The Dodd-Frank Act requires states to
bring Appraisal Management Companies
(AMCs) under the supervision and control
of their regulatory boards for appraisers.
APPRAISAL  This will permit AMCs to be licensed by the
MANAGEMENT Real Estate Appraiser Board – and will give
AMCs a seat on the Real Estate Appraiser
COMPANIES Board.
 Applies to any AMC not already regulated
by a state or federal regulator – and not
part of a federally chartered bank.
 Clarifies duties of AMCs and provides
remedies for breach.

8.  Allows a copy of the lease to be used in
a suit for possession rather than the
original (which some courts would not
give back).
 Allows owners to remediate mold on their
own properties.
LANDLORD &
 Allows tenants in good standing (paid
TENANT and incompliance) to remain in leased
(Part 1) dwelling units for up to 90 days following
foreclosure of the property.
 Allows landlords to charge tenants for
insurance coverage of their premises as
well as an administrative fee for such
tenant insurance programs.
 Technical and definition clean ups.

9.  Local Governments may NOT charge
overtime rates to building owners for
conducting fire safety inspections during
ordinary business hours. They may,
LANDLORD & however, charge fees to help cover the
costs of such inspections.
TENANT
(Part 2)  Owners may obtain fire safety
inspections from private contractors
provided they are appropriately trained
and certified.

10.  When a unit is sold by auction and the
resale packet has been included with
auction materials before sale, the
purchaser at auction is not able to
demand a second resale packet, and
CONDOMINIUM does not receive a second cancellation
ACT period.
 This is the same provision that is
included in the Property Owners
Association Act.

11.  Owner financing of property sales is
OWNER expressly exempted from the licensing
FINANCING requirements for mortgage lenders.

12.  Issue VAR has worked on with others for
three years.
 Tenants may only contract for utility
service with advance written consent of
owner or landlord.
TENANT UTILITY
 Maximum of three months of unpaid bills
LIENS permitted before locality or utility provider
must notify owners of delinquency.
 Owner must be given opportunity to cure
delinquency before lien is placed on
property.
 In most cases, utility or locality must
collect a deposit from the tenant.

13.  Fairfax City has tried three times to enact
an illegal Rental Inspection ordinance.
Each time we have filed legislation to
“pull them back”. This year was the
same.
 Fauquier County was discussing
adopting a bonding requirement for those
OTHER ISSUES who installed an Alternative Onsite
Sewage System - $15,000. This would
be an additional cost of acquisition for a
buyer, and is specifically not permitted by
the Dillon Rule. The bill was carried over
– Fauquier County also withdrew the
concept. Will be worked on over the year.

14. DOWNLOAD A COPY OF THE NEW LAWS
POSTER AND CHECK OUT OTHER GREAT
RESOURCES HERE:
www.VAREALTOR.com/NEWLAWS