General Assembly>Division of Legislative Services>Publications>Session Summaries>2004>Property and Conveyances

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Property and Conveyances

Passed

P HB153

Landlord and tenant law; termination of tenancies; security deposit. Amends the Landlord Tenant Act to make it consistent with the Residential Landlord Tenant Act concerning termination of month-to-month tenancies. The bill clarifies that a landlord may purchase commercial insurance for damage coverage in lieu of all or part of a security deposit and grants the landlord the authority to purchase renter's insurance coverage for a tenant. The bill caps the amount of the security deposit and insurance premiums combined at two months' rent that can be collected from a tenant upfront. The bill also allows a landlord to include a liquidated damage penalty in the rental agreement and sets the cap for that penalty.
Patron - Albo

P HB275

State Treasurer; interest paid to owners of unclaimed property. Specifies the applicable rate of interest to be paid to the owner of unclaimed property if the property was interest bearing and the holder fails to report the applicable rate of interest.
Patron - Purkey

P HB276

Unclaimed property; electronic filing of reports. Requires a person to electronically remit reports containing 25 or more items of funds or other property presumed abandoned in a format prescribed by the State Treasurer. The State Treasurer may waive this requirement when he determines, in his discretion, that it creates an undue hardship. Current law does not specify the format for remission.
Patron - Purkey

P HB448

Virginia Real Estate Time-Share Act; possibility of reverter. Authorizes a time-share developer to utilize a deed of reverter in lieu of foreclosure on a time-share estate unit. The bill sets out the procedures required for the possibility of reverter to become effective, and specifies what the defaulting time-share unit owner must do to cure.
Patron - Suit

P HB449

Condominium Act and Property Owners' Association Acts; nonjudicial foreclosure. Clarifies that a unit or lot sold in a nonjudicial foreclosure proceeding shall be sold subject to prior liens. The bill reverses the Supreme Court holding in Wachovia vs. Colchester Towne, which required lienholders to be paid by the sale proceeds. The bill clarifies that these associations have the authority to serve as a unit owner's or a lot owner's statutory agent and may transfer title to the unit or lot to the purchaser at the foreclosure sale. The bill also (i) extends from 24 to 36 months, the time for initiating foreclosure proceedings to enforce a lien; (ii) adds additional notice requirements to the owner of the unit or lot; (iii) provides for the appointment of a trustee to conduct the sale; (iv) allows the association to bid on the unit or lot; (v) clarifies that foreclosure sale expenses include the association's advertising costs and reasonable attorneys' fees; and (vi) requires the association to prepare an accounting to show the distribution of the sale proceeds. The bill contains technical amendments and is identical to SB 463.
Patron - McQuigg

P HB493

Theft of timber; penalty. Provides that any person who cuts, removes, or severs any timber from the land of another without legal right or permission shall be liable to the rightful owner for treble damages, reforestation costs, the costs of ascertaining the value of the lumber and legal costs. Establishes criminal penalties for the theft of timber. Provides that prima facie evidence of the intent to steal timber exists where the timber was harvested or removed from property marked with readily visible paint marks in specific places on trees or posts along the property line. This bill is identical to SB 548.
Patron - Kilgore

P HB555

Condominium Act; insurance. Deletes the provision that requires any insurance deductible under the master casualty policy to be paid by the unit owners' association as a common expense if the cause of the damage to or destruction of any portion of the condominium originated in or through the common elements or an apparatus located within the common elements. The bill also deletes the requirement that a unit owner pay such deductible if the cause of any damage to or destruction of any portion of the condominium originated in or through a unit or any component thereof without regard to whether the unit owner was negligent.
Patron - Hargrove

P HB824

Virginia Residential Landlord Tenant Act; disclosure of mold in dwelling unit. Provides that as part of the written report of the move-in inspection, the landlord shall disclose whether there is any visible evidence of mold in the dwelling unit. If the landlord's written disclosure states that there is no visible evidence of mold in the dwelling unit, this record shall be deemed correct unless the tenant objects thereto in writing within five days after receiving the report. If the landlord's written disclosure states that there is visible evidence of mold in the dwelling unit, the tenant shall have the option to terminate the tenancy or to accept the dwelling unit in an "as is" condition. The bill also defines "visible evidence of mold" and puts an obligation on the landlord to use reasonable efforts to maintain the premises in such a condition as to prevent the accumulation of moisture and the growth of mold and to promptly respond to any written notices from a tenant. The bill also obliges a tenant to use reasonable efforts to maintain the dwelling unit and any other part of the premises that he occupies in such a condition as to prevent accumulation of moisture and the growth of mold and to promptly notify the landlord in writing of any moisture accumulation that occurs or of any visible evidence of mold discovered by him. The bill contains technical amendments. The bill is a recommendation of the Virginia Housing Study Commission.
Patron - Drake

P HB894

Property Owners' Association Act; access to association records. Provides that except for certain topics, draft minutes of the board of directors shall be open for inspection and copying (i) within 60 days from the conclusion of the meeting to which such minutes appertain or (ii) when such minutes are distributed to board members as part of an agenda package for the next meeting of the board of directors, whichever occurs first.
Patron - Sickles

P HB974

Virginia Residential Landlord Tenant Act; access by landlord to correct nonemergency property condition. Authorizes a landlord, upon the determination of the existence of a nonemergency property condition in a dwelling unit, to temporarily relocate the tenant from the unit in order to alleviate the condition. The total costs for making the repairs to alleviate the condition shall be at the expense of the landlord and the relocation of the tenant must be to a comparable dwelling unit, at no expense to the tenant and for a period not to exceed 30 days. In addition, the bill provides that the landlord is responsible for any damage to the tenant's property provided the tenant notifies the landlord of the damage within 10 days of returning to the dwelling unit. Under the bill, the failure of the tenant to cooperate with the temporary removal shall be deemed a breach of the rental agreement unless the tenant agrees to vacate the unit and terminate the rental agreement.
Patron - Reese

P HB981

Virginia Residential Landlord Tenant Act; noncompliance of rental agreement; award of attorneys' fees. Provides that if the rental agreement provides for the payment of reasonable attorneys' fees in the event of a breach of the agreement and the tenant fails to prove by a preponderance of the evidence that the failure to pay rent or vacate the premises was due to (i) the breach of the lease by the landlord, or (ii) unlawful actions on the part of the landlord, the court shall award such reasonable attorneys' fees.
Patron - Reese

P HB1264

Notice of sale by trustee; instrument of appointment. Provides that the notice of sale that a trustee must give to the present lienholder, any subordinate lienholder, and other interested parties must include, in addition to the time, date and place of any proposed sale, the instrument number or deed book and page numbers of the instrument of appointment for the trustee or substitute trustee.
Patron - Athey

P HB1388

Total Return Unitrust. Allows a trustee to convert a Virginia trust that directs or permits the distribution of trust net income (an income trust) into a unitrust that distributes a percentage of the trust assets. This bill provides statutory authority that is responsive to federal regulations revising the definition of income for federal tax law purposes. Those federal regulations in turn are responsive to changes in state law, including Virginia law, that permit trusts to use a total return method of investing to promote equitable treatment of trust beneficiaries. This bill codifies in Virginia law the safe harbor provisions of the federal regulations so that Virginia has full authority for converting an income trust to a total return trust, thus ensuring that Virginia trusts will not migrate to other states that have enacted the safe harbor provisions in state law.
Patron - Janis

P HB1435

Virginia Real Estate Cooperative Act. Requires certain disclosures in the public offering statement of a cooperative relating to the assumption of debt by the association. The bill also provides that during development of a cooperative containing additional land or withdrawable land, phase lines created by the cooperative instruments shall not be considered property lines for purposes of subdivision. If the cooperative may no longer be expanded by the addition of additional land, then the owner of the land not part of the cooperative shall subdivide such land prior to its conveyance, unless such land is subject to an approved site plan, or prior to modification of such approved site plan. In the event of any conveyance of land within phase lines of the cooperative, the cooperative and any lot created by such conveyance shall be deemed to comply with the local subdivision ordinance, provided such land is subject to an approved site plan. The bill also provides for the appointment of members of the executive board and the termination of certain management contracts, and provides that unless approved by an 80 percent vote of the proprietary lessees other than the declarant (i) the association shall not assume or take subject to any debt incurred in the original acquisition, development or construction of or the conversion of the cooperative in excess of the amounts disclosed in the public offering statement pursuant to § 55-478 or § 55-479, nor shall the cooperative or any proprietary lessee's interest be encumbered by a security interest for any greater amount incurred for such purposes and (ii) the declarant may not amend the public offering statement to change the amounts disclosed after conveyance of the first unit to a proprietary lessee. In addition, no interest shall accrue on any debt to be assumed by the association until such debt has been assumed. Notwithstanding the foregoing, the amounts disclosed shall not be subject to adjustment such that the association or the proprietary lessees are subjected to the construction or market risks of the declarant.
Patron - Suit

P SB348

Property Owners' Association Act; board of directors; access to committee and subcommittee meetings. Provides that meetings of any subcommittee or other committee of the board of directors of a property owners' association shall be open to members of record of the association.
Patron - Houck

P SB463

P SB503

Virginia Condominium Act and the Virginia Property Owners Association Act; foreclosure on liens. Clarifies that an action to foreclose any liens that has been perfected under the provisions of either Acts must be initiated within 36 months from the time the memorandum of lien was recorded.
Patron - Mims

P SB504

Purchase money trusts. Provides that any deed of trust that secures a loan is deemed a purchase money deed of trust if the borrower uses proceeds to acquire the secured real property.
Patron - Mims

P SB505

Release of deed of trust or other lien. Allows a lien creditor to directly file a certificate of satisfaction with the clerk unless he receives notice from a settlement agent to deliver the certificate to such settlement agent. If the certificate is filed directly with the clerk prior to receipt of a notice from a settlement agent, the lien creditor will provide the settlement agent with a copy of the certificate.
Patron - Mims

P SB548

Failed

F HB1199

Foreclosure sale; advertisement. Requires the trustee in a foreclosure sale to indicate in the required advertisement if the property is encumbered by more than one mortgage or lien.
Patron - Cline

F HB1451

Condominium Act; applicability of local ordinances or proffers. Provides that no zoning ordinance, other land use ordinance, or proffer shall prohibit condominiums as such by reason of the form of ownership inherent therein. Currently, this prohibition applies only to zoning or other land use ordinances.
Patron - Oder

F SB449

Virginia Condominium Act and the Virginia Property Owners Association Act; fees related to providing statements of assurance, resale certificate or disclosure packet. Increases the fee that owners' associations under the Condominium Act and the Property Owners Association Act may charge for providing a statement of assurance from 10 cents per page with a $50 maximum to 15 cents per page with a $100 maximum. The bill also increases the fee that an owners' association may charge for preparing a certificate of resale or disclosure packet from 10 cents per page with a $100 maximum to 15 cents per page with a $150 maximum. In addition, the bill clarifies that the purchaser may also request a statement of assurance and a certificate of resale or disclosure packet and makes technical amendments.
Patron - Whipple

Carried Over

C HB443

Condominium and Property Owners' Association Acts; resale disclosures. Provides that in the Condominium and Property Owners' Association Acts any request by a lender to a unit owner's association, or a management company representing the unit owner's association for information necessary for a borrower to provide to the lender as a condition precedent to a settlement of a mortgage loan, shall be provided to the lender within seven calendar days after the date of receipt of the written request received by mail, fax, hand delivery or electronic mail, and shall be provided as part of the resale certificate, at no additional charge.
Patron - Suit

C HB969

Virginia Real Estate Time-Share Act; developer control in time-share estate program. Provides that the transfer of control from the developer shall be required after five years has elapsed during which time no significant number of units have been built or are under construction in a phase or portion thereof of a time-share project. The bill defines "significant number" as five percent of the total build-out number. The bill also provides any transfer of legal or equitable ownership of at least 90 percent of the time-share estates counts in determining when the developer control period terminates and is not limited to such transfers to purchasers.
Patron - Barlow

C HB1367

Foreclosures generally; removal of occupants. Provides the procedure for the successful bidder at a foreclosure sale to remove any holdover occupants.
Patron - Drake

C HB1368

Condominium Act and the Property Owners' Association Act; fees for disclosure packets. Increases from $100 to $200, the fee a condominium association or a property owners' association may charge for providing a resale certificate or disclosure packet, respectively. The bill also contains technical amendments.
Patron - Dillard

C HB1391

Foreclosure; real property purchased at auction. Provides that a successful bidder shall have 10 business days from the date of his purchase of real property at auction to satisfy himself that such property will be conveyed with clear title. If there is a reasonable problem with the title, the date of settlement shall be extended for a reasonable time, not to exceed 60 days, to allow the seller to correct any reported title defects. If such defects cannot be corrected, the successful bidder shall have the right to close the transaction with such defects without any abatement of a portion of the purchase price or to terminate the agreement.
Patron - Weatherholtz

C SB506

Uniform Trust Code. Sets out the Uniform Trust Code which was finalized by the National Conference of Commissioners on Uniform State Laws in 2000 and is the first national codification of the law of trusts. Much of the Code is a codification of the common law of trusts. Most of the Uniform Trust Code consists of default rules that apply only if the terms of the trust fail to address or insufficiently cover an issue. The drafter of a trust is free to override a substantial majority of the Code's provisions, although there are some that are not subject to override. Includes comprehensive provisions on representation of beneficiaries in the Uniform Trust Code, as are rules on trust modification and termination. There are special rules on revocable trusts. A subcommittee of the Virginia Bar Association Section on Wills, Trusts and Estates is examining the act. The intent is to have the bill carried over to the 2005 General Assembly Session so that it can continue to be studied and so that provisions of current statutory law that are impacted are identified and revised.
Patron - Mims

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General Assembly>Division of Legislative Services>Publications>Session Summaries>2004>Property and Conveyances

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