BY JAY DEBOER, VAR VICE PRESIDENT OF LAW AND POLICY
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New real estate laws for HB 1111 Limits to fire safety inspection fees This bill establishes procedures for fees charged for fire safety inspections by local governments. Specifically, the bill states that local governments may not charge overtime rates for inspections conducted during normal business hours. The bill also permits fire safety inspections to be conducted by private contractors with appropriate training and certification.
The 2012 Session of the General Assembly was the type of session that one can expect once per decade. With legislative redistricting and elections in new districts having ushered in a host of new members in both the House of Delegates and the State Senate, and with multiple retirements of more senior members, the General Assembly had to find a new working balance and flow — and this was complicated by a 20-20 tie in the State Senate between Republicans and Democrats. Social and “hot button” issues were in the forefront more frequently than typical — partly the result of national organizations and interests working in each state legislature rather than at the federal level, where gridlock has continued for several years. Against that preface, VAR proposed a conservative agenda this year. We achieved favorable results, some of which will affect the way you will do business. We sincerely hope that these changes will benefit the public and help you in the practice of real estate — and each year we look for ways to make your job easier, more secure, and less complicated.
HB 567
HB 572/SB 76 Owner-financers aren’t regulated as lenders Current exemptions in definitions of the Nationwide Mortgage Licensing System and Registry did not expressly exempt owner financing from new licensure requirements placed on mortgage lenders. This legislation specifically exempts sellers who finance their own real estate sales from having to be regulated as mortgage lenders Introduced by Del.D. Marshall/Sen. J. Watkins
Reducing tenant utility liens
VAR has worked for several years to address issues with tenants leaving unpaid utility bills on owner property, resulting in liens being filed by the local government or utility. Under this compromise, worked into a consensus position by most of the affected parties, tenants will only be able order water and sewer service in their own names with the advance written consent of owners. The utility providers may only allow these bills to remain unpaid for three months, and must notify the owner before placing a lien on the property. The utility provider must also give advance notice to the owner or landlord before placing a lien, and must offer a meaningful opportunity to pay off these amounts. The utility provider must collect a deposit from tenants in most cases. We believe this will end nearly all of the abuses of property owners that have been observed and reported by our members. Introduced by Del. D. Marshall.
HB 377
Limits to condo resale document demands
Under the Virginia Condominium Act, when a unit is sold by auction and the resale packet has been included in the auction materials prior to the sale, a purchaser will not be able to demand a second set of documents, and will not receive a second cancellation period. This brings this provision into conformity with the Property Owners Association Act. Introduced by Del. B. Pogge. WWW.VAREALTOR.COM
Changes to agency and professionalism
HB 206
This year’s major bill is drawn to Title 54.1 — our licensure statutes —and includes technical and “clean up” amendments from our large agency bill introduced in the 2011 session. (The new agency laws are discussed elsewhere.) The bill also implements many more recommendations from VAR’s Professionalism Work Group. For example, the Real Estate Board will develop a framework permitting surplus elective continuing education hours to be carried forward to the next license term. The Real Estate Board will be granted authority to issue guidance on scope of work questions regarding unlicensed assistants. The Board may also speak to team practice for the first time. The bill fixes a “quirk” in the law that prevented Brokers from conducting business as business entities in some circumstances. The new law brings broker supervision requirements into the Code of Virginia, where they will receive the prominence they deserve. Finally, the bill establishes a Broker Self-Audit, which will be conducted by principal and supervising brokers once per license term. The requirement for a self-audit will begin on January 1 of 2013. Introduced by Del. J. Miller.
HB 1110
Landlord and Tenant law changes
This is the major annual update of landlord-tenant law that will affect property managers for residential properties. First, the bill allows paper copies of leases to be used in suits for possession rather than requiring that the original lease be filed in court. The bill permits owners to remediate mold on their own properties. The bill conforms Virginia law to Federal law in permitting tenants in good standing to remain in dwelling units for up to 90 days following foreclosure provided they remain current in rent and in compliance with the lease. The bill permits landlords to charge tenants for insurance coverage of their premises as well as an administrative fee to administer tenant insurance programs. (There are other technical changes to the Residential Landlord and Tenant Act included.) Introduced by Del. T. Greason. VOLUME 19 ● ISSUE 3
HB 210 New supervision for appraisal management companies The Federal Dodd-Frank Act requires states to bring appraisal management companies under the supervision and authority of their regulatory boards for appraisers. In Virginia, that is the Real Estate Appraiser Board. Understanding that creating a new regulatory program in Virginia is a slow process, we began this year. This bill will require a Virginia license for appraisal management companies not otherwise subject to regulation by a state or federal regulator. It adds an AMC member to the Real Estate Appraiser Board. And it clarifies obligations and duties of AMCs, and provides remedies for breach of those duties. Introduced by Del. J. Miller.
Overview and summary We were generally successfully in achieving our main objectives for our 2012 legislative agenda. Again, we hope that the changes that have been made in our laws will assist you in your day-to-day practices and make your jobs easier. We always are happy to entertain suggestions for changes to legislation that you believe we need the General Assembly to make. Please contact us or your local associations with your problems and suggestions.
And keep up with VAR during election season at www.RealtorsChoose.com
Get the full report on how the new legislation affects your business at:
www.VARealtor.com/Legal Article
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