Bill Text: VA HB863 | 2025 | Regular Session | Prefiled
Bill Title: Virginia Residential Property Disclosure Act; flood-related disclosures.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-06 - Continued to 2025 in General Laws by voice vote [HB863 Detail]
Download: Virginia-2025-HB863-Prefiled.html
Be it enacted by the General Assembly of Virginia:
That §§55.1-703 and 55.1-708.2 of the Code of Virginia are amended and reenacted as follows:
§55.1-703. Required disclosures for buyer to beware; buyer to exercise necessary due diligence.
A. The owner of the residential real property shall furnish to a purchaser a residential property disclosure statement for the buyer to beware of certain matters that may affect the buyer's decision to purchase such real property. Such statement shall be provided by the Real Estate Board on its website.
B. The residential property disclosure statement provided by the Real Estate Board on its website shall include the following:
1. The
owner makes no representations or warranties as to the condition of the real
property or any improvements thereon, or with regard to any covenants and
restrictions, or any conveyances of mineral rights, as may be recorded among
the land records affecting the real property or any improvements thereon, and
purchasers are advised to exercise whatever due diligence a particular
purchaser deems necessary, including obtaining a home inspection, as defined in
§54.1-500, a mold assessment conducted by a business that follows the
guidelines provided by the U.S. Environmental Protection Agency, and a
residential building energy analysis, as defined in §54.1-1144, in accordance
with terms and conditions as may be contained in the real estate purchase
contract, but in any event prior to settlement pursuant to such contract;
2. The owner makes no representation with respect to
current lot lines or the ability to expand, improve, or add any structures on
the property, and purchasers are advised to exercise whatever due diligence a
particular purchaser deems necessary, including obtaining a property survey and
contacting the locality to determine zoning ordinances or lot coverage, height,
or setback requirements on the property.
3. 2. The owner
makes no representations with respect to any matters that may pertain to
parcels adjacent to the subject parcel, including zoning classification or
permitted uses of adjacent parcels, and purchasers are advised to exercise
whatever due diligence a particular purchaser deems necessary with respect to
adjacent parcels in accordance with terms and conditions as may be contained in
the real estate purchase contract, but in any event prior to settlement
pursuant to such contract;
4. 3. The owner
makes no representations to any matters that pertain to whether the provisions
of any historic district ordinance affect the property, and purchasers are
advised to exercise whatever due diligence a particular purchaser deems
necessary with respect to any historic district designated by the locality
pursuant to §15.2-2306, including review of (i) any local ordinance creating
such district, (ii) any official map adopted by the locality depicting historic
districts, and (iii) any materials available from the locality that explain (a)
any requirements to alter, reconstruct, renovate, restore, or demolish
buildings or signs in the local historic district and (b) the necessity of any
local review board or governing body approvals prior to doing any work on a
property located in a local historic district, in accordance with terms and
conditions as may be contained in the real estate purchase contract, but in any
event prior to settlement pursuant to such contract;
5. 4. The owner
makes no representations with respect to whether the property contains any
resource protection areas established in an ordinance implementing the
Chesapeake Bay Preservation Act (§62.1-44.15:67 et seq.) adopted by the
locality where the property is located pursuant to §62.1-44.15:74, and
purchasers are advised to exercise whatever due diligence a particular
purchaser deems necessary to determine whether the provisions of any such ordinance
affect the property, including review of any official map adopted by the
locality depicting resource protection areas, in accordance with terms and
conditions as may be contained in the real estate purchase contract, but in any
event prior to settlement pursuant to such contract;
6. 5. The owner
makes no representations with respect to information on any sexual offenders
registered under Chapter 23 (§19.2-387 et seq.) of Title 19.2, and purchasers
are advised to exercise whatever due diligence they deem necessary with respect
to such information, in accordance with terms and conditions as may be
contained in the real estate purchase contract, but in any event prior to
settlement pursuant to such contract;
7. 6. The owner
makes no representations with respect to whether the property is within a dam
break inundation zone. Such disclosure statement shall advise purchasers to
exercise whatever due diligence they deem necessary with respect to whether the
property resides within a dam break inundation zone, including a review of any
map adopted by the locality depicting dam break inundation zones;
8. 7. The owner
makes no representations with respect to the presence of any wastewater system,
including the type or size of the wastewater system or associated maintenance
responsibilities related to the wastewater system, located on the property, and
purchasers are advised to exercise whatever due diligence they deem necessary
to determine the presence of any wastewater system on the property and the
costs associated with maintaining, repairing, or inspecting any wastewater
system, including any costs or requirements related to the pump-out of septic
tanks, in accordance with terms and conditions as may be contained in the real
estate purchase contract, but in any event prior to settlement pursuant to such
contract;
9. 8. The owner
makes no representations with respect to any right to install or use solar
energy collection devices on the property;
10. 9. The owner
makes no representations with respect to whether the property is located in one
or more special flood hazard areas, and purchasers are advised to exercise
whatever due diligence they deem necessary, including (i) obtaining a flood
certification or mortgage lender determination of whether the property is located
in one or more special flood hazard areas, (ii) reviewing any map depicting
special flood hazard areas, (iii) contacting the Federal Emergency Management
Agency (FEMA) or visiting the website for FEMA's National Flood Insurance
Program or the Virginia Flood Risk Information website operated by the
Department of Conservation and Recreation, and (iv) determining whether flood
insurance is required, in accordance with terms and conditions as may be
contained in the real estate purchase contract, but in any event prior to
settlement pursuant to such contract. A flood risk
information form, pursuant to the provisions of subsection D, that provides
additional information on flood risk and flood insurance is available for
download by the Real Estate Board on its website;
11. 10. The owner makes
no representations with respect to whether the property is subject to one or
more conservation or other easements, and purchasers are advised to exercise
whatever due diligence a particular purchaser deems necessary in accordance
with terms and conditions as may be contained in the real estate purchase
contract, but in any event prior to settlement pursuant to such contract;
12. 11. The owner
makes no representations with respect to whether the property is subject to a
community development authority approved by a local governing body pursuant to
Article 6 (§15.2-5152 et seq.) of Chapter 51 of Title 15.2, and purchasers are
advised to exercise whatever due diligence a particular purchaser deems
necessary in accordance with terms and conditions as may be contained in the
real estate purchase contract, including determining whether a copy of the
resolution or ordinance has been recorded in the land records of the circuit
court for the locality in which the community development authority district is
located for each tax parcel included in the district pursuant to §15.2-5157,
but in any event prior to settlement pursuant to such contract;
13. 12. The owner
makes no representations with respect to whether the property is located on or
near deposits of marine clays (marumsco soils), and purchasers are advised to
exercise whatever due diligence a particular purchaser deems necessary in
accordance with terms and conditions as may be contained in the real estate
purchase contract, including consulting public resources regarding local soil
conditions and having the soil and structural conditions of the property
analyzed by a qualified professional;
14. 13. The owner
makes no representations with respect to whether the property is located in a
locality classified as Zone 1 or Zone 2 by the U.S. Environmental Protection
Agency's (EPA) Map of Radon Zones, and purchasers are advised to exercise
whatever due diligence they deem necessary to determine whether the property is
located in such a zone, including (i) reviewing the EPA's Map of Radon Zones or
visiting the EPA's radon information website; (ii) visiting the Virginia
Department of Health's Indoor Radon Program website; (iii) visiting the
National Radon Proficiency Program's website; (iv) visiting the National Radon
Safety Board's website that lists the Board's certified contractors; and (v)
ordering a radon inspection, in accordance with the terms and conditions as may
be contained in the real estate purchase contract, but in any event prior to
settlement pursuant to such contract;
15. 14. The owner
makes no representations with respect to whether the property contains any
pipe, pipe or plumbing fitting, fixture, solder, or flux that does not meet the
federal Safe Drinking Water Act definition of "lead free" pursuant to
42 U.S.C. §300g-6, and purchasers are advised to exercise whatever due
diligence they deem necessary to determine whether the property contains any
pipe, pipe or plumbing fitting, fixture, solder, or flux that does not meet the
federal Safe Drinking Water Act definition of "lead free," in
accordance with terms and conditions as may be contained in the real estate
purchase contract, but in any event prior to settlement pursuant to such
contract;
16. 15. The owner
makes no representations with respect to the existence of defective drywall on
the property, and purchasers are advised to exercise whatever due diligence
they deem necessary to determine whether there is defective drywall on the
property, in accordance with terms and conditions as may be contained in the
real estate purchase contract, but in any event prior to settlement pursuant to
such contract. For purposes of this subdivision, "defective drywall"
means the same as that term is defined in §36-156.1; and
17. 16. The owner
makes no representation with respect to the condition or regulatory status of
any impounding structure or dam on the property or under the ownership of the
common interest community that the owner of the property is required to join,
and purchasers are advised to exercise whatever due diligence a particular
purchaser deems necessary to determine the condition, regulatory status, cost
of required maintenance and operation, or other relevant information pertaining
to the impounding structure or dam, including contacting the Department of
Conservation and Recreation or a licensed professional engineer.
C. The residential property disclosure statement shall be delivered in accordance with §55.1-709.
D. The Real Estate
Board shall make available on its website a flood risk information form. Such
form shall be substantially as follows:
Flood Risk
Information Form
The purpose of this
information form is to provide property owners and potential property owners with
information regarding flood risk. This information form does not determine
whether a property owner will be required to purchase a flood insurance policy.
That determination is made by the lender providing a loan for the property at
the lender's discretion.
Mortgage lenders
are mandated under the Flood Disaster Protection Act of 1973 and the National
Flood Insurance Reform Act of 1994 to require the purchase of flood insurance
by property owners who acquire loans from federally regulated, supervised, or
insured financial institutions for the acquisition or improvement of land,
facilities, or structures located within or to be located within a Special
Flood Hazard Area. A Special Flood Hazard Area (SFHA) is a high-risk area
defined as any land that would be inundated by a flood, also known as a base
flood, having a one percent chance of occurring in a given year. The lender
reviews the current National Flood Insurance Program (NFIP) maps for the
community in which the property is located to determine its location relative
to the published SFHA and completes the Standard Flood Hazard Determination
Form (SFHDF), created by the Federal Emergency Management Agency (FEMA). If the
lender determines that the structure is indeed located within a SFHA and the
community is participating in the NFIP, the borrower is then notified that
flood insurance will be required as a condition of receiving the loan. A
similar review and notification are completed whenever a loan is sold on the
secondary loan market or when the lender completes a routine review of its
mortgage portfolio.
Properties that are
not located in a SFHA can still flood. Flood damage is not generally covered by
a standard home insurance policy. It is prudent to consider purchasing flood
insurance even when flood insurance is not required by a lender. Properties not
located in a SFHA may be eligible for a low-cost preferred risk flood insurance
policy. Property owners and buyers are encouraged to consult with their
insurance agent about flood insurance.
What is a flood? A
flood is a general and temporary condition of partial or complete inundation of
two or more acres of normally dry land area or of two or more properties, at
least one of which is the policyholder's property, from (i) overflow of inland
or tidal waters, (ii) unusual and rapid accumulation or runoff of surface
waters from any source, (iii) mudflow, or (iv) collapse or subsidence of land
along the shore of a lake or similar body of water as a result of erosion or
undermining caused by waves or currents of water exceeding anticipated cyclical
levels that result in a flood.
FEMA is required to
update Flood Maps every five years. Flood zones for this property may change
due to periodic map updates. To determine what flood zone or zones a property
is located in a buyer can visit the website for FEMA's National Flood Insurance
Program or the Virginia Department of Conservation and Recreation's Flood Risk
Information System website.
§55.1-708.2. Required disclosures pertaining to flood risk.
A. The owner of residential real property located in the Commonwealth who has actual knowledge that the dwelling unit is a repetitive risk loss structure shall disclose such fact to the purchaser. For purposes of this section, "repetitive risk loss" means that two or more claims of more than $1,000 were paid by the National Flood Insurance Program within any rolling 10-year period, since 1978.
B. The owner of residential real property located in the Commonwealth shall disclose to the purchaser whether:
1. The property is located wholly or partially in the 100-year (one percent annual chance) or 500-year (0.2 percent annual chance) FEMA-designated flood zones, community-designated flood zones, or within a dam break inundation zone as defined in §10.1-604;
2. Whether the property is located wholly or partially in a floodway, flood pool, or reservoir; and
3. Whether the property is currently insured through public or private flood insurance.
C. The owner of residential real property in the Commonwealth shall disclose to the purchaser any actual knowledge of whether:
1. The property has experienced damage due to erosion, flooding, water seepage, or pooled water;
2. Any claims have been filed for flood damage to the property with an insurance provider, including the amount received from such insurance provider;
3. The property owner has received federal disaster assistance for damage to the property, including from FEMA, the U.S. Small Business Administration, HUD, or another agency;
4. The owner has an elevation certificate, which shall also be provided to the purchaser if it exists; and
5. The property has any erosion control structure, such as a bulkhead, a rock revetment, a seawall, or buried sandbags, affecting the property and if so shall disclose a general description of the location, material, and approximate size of any such structure.
D. All such disclosures required by subsections A, B, and C shall be provided to the purchaser on a form prescribed by the Board on its website.
E. The owner of residential real property located in the Commonwealth shall disclose to each renter prior to signing any contract for tenancy whether:
1. The owner has actual knowledge that the property has experienced past damages from flooding; and
2. Whether any or all of the rental property is located wholly or partially in the 100-year or 500-year FEMA-designated flood zones or community-designated flood zones.
F. Every contract for tenancy in the Commonwealth shall contain the following notice to tenants:
"Flood insurance may be available to renters through FEMA's National Flood Insurance Program to cover your personal property and contents in the event of a flood. A standard renter's insurance policy does not typically cover flood damage. You are encouraged to examine your policy options to ensure coverage."
Such disclosure shall be provided to the purchaser on a form provided by the Real Estate Board on its website. Such form shall include spaces for (i) disclosure of historical flood damages, flood insurance claims, and costs to such residential real property; (ii) any mandatory flood insurance purchase requirement; and (iii) whether the property is located within a dam break inundation zone, as defined in § 10.1-604 or in the 100-year or 500-year flood zone designated by the Federal Emergency Management Agency's Flood Insurance Rate Map, or in any community-designated flood risk area, including the flood zone classification of such property and the source and date of such information or classification.
