Jun 23, 2011
Important forms changes a-coming
23 Jun 2011
Posted by Andrew Kantor
From our legal team:
Important forms changes are coming! The following forms will be posted on VAR’s website this week and should be used beginning July 1. (That’s when they’ll be available on ZipForms.)
Virginia Residential Property Disclosure Statement
The disclosures that appear on the Residential Property Disclosure Statement provided by sellers to purchasers of residential property will change dramatically.
The current list of disclosures/disclaimers on that form will move to a website maintained by the Real Estate Board (http://www.dpor.virginia.gov/dporweb/reb_consumer.cfm) — thus eliminating the risk of using an out-of-date form (and threatening your contract). The Residential Property Disclosure Statement will direct the purchaser to view that website. Of course, you can print the site’s contents and provide it to the purchaser at the seller’s discretion or if required by contract.
The new form must be given to all prospective buyers unless the seller is exempt from the requirements of the statute (exemption rules have not changed) and it must be given effective July 1, 2011. This means that Realtors who took listings before that date will have to get their sellers to sign new Disclosure forms and these new forms must be given out from and after July 1, 2011. You do not have to give the new form to buyers who got the old form before July 1.
Remember: It doesn’t matter when you took the listing. If you are giving a form to a prospective buyer after July 1, it must be the new Disclosure form, regardless of when you took the listing.
Summary of Rights and Obligations of Sellers and Purchasers Under the Virginia Residential Property Disclosure Act (VAR Form SUM1)
The SUM1 form has been amended slightly to conform to the changes outlined above. It should still be given in combination with the Residential Property Disclosure Statement to inform clients, and the customers you actually deal with, of their rights and obligations under the Residential Property Disclosure Act.
Defective Drywall Disclosure Statement: Notice to Prospective Purchaser
The Real Estate Board has approved a disclosure form concerning defective drywall. It applies to both sales and leasing transactions and to all configurations of owners, sellers, buyers, and tenants and potential tenants. Disclosure is required of REO and foreclosed property holders as well, unlike the requirements of the Virginia Residential Property Disclosure Act.
Defective Drywall Disclosure Statement: Notice to Prospective Tenant
This form was created by VAR to more specifically address disclosure of defective drywall in lease situations. This is not a Real Estate Board approved form.
The Code of Virginia requires the landlord of a residential dwelling unit who has actual knowledge that the property contains defective drywall to provide a written disclosure of that fact to the prospective tenant prior to the execution of a lease, or if no lease, occupancy of the property.
Please note that a tenant may terminate the lease if the defective drywall condition is not disclosed prior to lease execution.
“Any tenant who is not provided the disclosure required by subsection A may terminate the lease agreement at any time within 60 days of discovery of the existence of defective drywall by providing written notice to the landlord in accordance with the lease or as required by law.”