Automated Value Models, vested rights reform and burdensome overcrowding enforcement provisions top VAR’s legislative agenda for this year’s General Assembly. Your Law and Policy team is focusing on your needs and ways to better accommodate your clients this year. Here’s what we’re working at the State Capitol:
1. More clearly defined Automated Value Models
Several local associations have reported that they see a higher frequency of Automated Value Models (AVM) used in place of appraisals, without adequate disclosure. An AVM is an electronic method of determining the value of property, based on an online search of local government tax records and sales comparables. AVMs are not appraisals. VAR has introduced legislation to define AVMs or require some form of disclosure.
Senate Bill 158 (Senator Don McEachin)
2. Vested rights reform
VAR has introduced legislation further protecting property owners with vested rights from localities seeking to alter past zoning application decisions. House Bill 1078 (Delegate Terrie Suit)
3. Listing and leasing agents' disclosure
Virginia law requires listing and leasing agents to disclose material adverse facts about a property. An error in prior amendments mandated that these disclosures be made in bold lettering or all capital letters and in a separate box. Our amendment to the statute eliminates the requirement that the disclosures be made in this manner. House Bill 1397 (Delegate Jackson Miller)
4. Clarifying amendments to overcrowding enforcement provisions
Currently, localities may assess daily fines against landlords whose tenants violate overcrowding ordinances. VAR has introduced legislation to provide that localities cannot continue to impose fees upon landlords who have taken legal action to address overcrowding zoning violations.
House Bill 445 (Delegate Tom Rust)
5. Grantor tax collection interpretation - assessed value versus sales price
VAR has introduced legislation requiring local governments to choose between applying the grantor tax to the assessed amount of the property or to the sales price of the property. Senate Bill 551 (Senator Robert Hurt)
6. Amendments to the Property Owners' Association Act
VAR introduced legislation that will:
- discontinue excessive fees being charged to buyers and sellers;
- implement a disclosure packet fee structure;
- reform the Property Owners' Association Act to help ensure that everyone involved in these transactions understands and has confidence in all aspects of the process; and
- provide for the licensure and regulation of professional association managers. House Bill 1076 (Delegate Terrie Suit)
7. Amendment to the Wet Settlement Act
VAR introduced a change to clarify that the definition of "settlement" applies to the terms used in the Act and does not apply to the contractual agreements between buyer and seller. House Bill 1098 (Delegate Mark Sickles)
8. Firm Management
The Code allows non-broker salespersons to be owners of real estate corporations so long as they do not hold a management position. However, the Code does not permit this arrangement in a real estate company organized as a limited liability company (LLC). VAR has introduced an amendment to conform LLC rules to those governing corporations. House Bill 1114 (Delegate Bob Hull)