VAR Capitol Connections

Dear Member,

From taxes to contracts to transportation, the real estate market is profoundly affected by Virginia's legislature. Every Monday during the General Assembly session, VAR brings you Capitol Connections: a comprehensive and concise summary of the previous week's legislative actions affecting REALTORS^®, property owners and prospective buyers. VAR encourages you to stay informed about the legislative process for the sake of your business and your clients.

VAR introduces a back-to-basics 2008 legislative agenda

In 2007 VAR was compelled to weigh in on issues like transportation funding that were significant but somewhat outside the scope of traditional REALTOR^® issues. This year, our legislative agenda seeks to advance issues that are a little bit closer to home, such as clarifying contract laws and protecting homeowners from higher taxes. The REALTORS^® legislative agenda was formally introduced last week, and will be moving through the House and Senate committee process in the coming weeks.

VAR's 2008 legislative agenda is outlined below:

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)

[Read VAR's legislative agenda online]

Abusive driver fees abused in Senate Courts Committee

As promised by Republicans, Democrats and even Governor Kaine, several measures repealing the controversial abusive driver fees made their way through the Senate Courts Committee last Wednesday. A measure to fully repeal the abusive driver fees, SB 1, was referred to the Senate Finance Committee, where we anticipate its passage to the full Senate.

[Text of SB 1]

Cash proffers versus impact fees

VAR continues to discuss with legislators a bill introduced by Senator John Watkins (R-Powhatan) on behalf of the Home Builders Association of Virginia (HBAV). SB 768 would eliminate the cash component of the current proffer system and replace those dollars with impact fees. In addition, HBAV's proposal increases the grantors tax on existing properties, except those within the boundaries of the Northern Virginia and Hampton Roads transportation authorities. (The 2007 legislation that created the authorities included a grantors tax increase in those localities.) While VAR can support the impact fee provisions, we have been very clear that we do not support increases to the grantors tax for reasons articulated in a letter sent to all members of the General Assembly.

[Text of SB 768]

Your voice is VAR's strength

When REALTORS^® come knocking, your legislators listen!

Here's the best way to hold your elected officials accountable for their votes on issues that matter to REALTORS^® and Virginia property owners: pay them a visit on their turf in Richmond.

On February 13, join forces with hundreds of REALTORS^® from all across the Commonwealth to show lawmakers the strength of your profession and your convictions.

REALTOR^® Day on Hill is your once-a-year opportunity to demonstrate Virginia REALTORS'^® collective political strength. Visit with your legislators and brief them on VAR's legislative agenda, then later, join your Delegates at the Jefferson Hotel for VAR's 2008 Legislative Reception.

And most REALTOR^® Day on the Hill events are FREE for VAR members. All it costs you is an investment of your time...an investment with a valuable return.

February 13: REALTOR^® Day on the Hill Schedule

8:30 a.m. Briefing on REALTOR^® Issues (Richmond Omni)
9:30-11:30 a.m. Capitol Hill Visits (General Assembly Building)
12 p.m. 2008 RPAC Kick-Off Luncheon (Richmond Omni)^*
2:30-4:30 p.m. Governance Meetings & Conference Sessions (Richmond Omni)**
6 p.m. Legislative Reception (The Jefferson Hotel)

Make the most of your trip to Richmond by staying for VAR's 2008 Legislative & Education Conference, February 12-15 at the Omni Hotel. Experience first-rate professional development and networking, earn CE/PL/BM credits, and get the latest legal and risk management updates. Visit VARealtor.com/LegislativeConference for information. Register online and save $20!

* Ticketed Event
**Requires registration for the Legislative and Education Conference

[REALTOR Day on the Hill Information]

Your influence reaches to Governor Kaine

Governor Tim Kaine addresses REALTORS at VAR's 2008 Legislative and Education Conference during the "Together We Can" send-off breakfast. In the wake of the current mortgage fallout, speculation about the Virginia's economy, and wide array of forecasts about tomorrow's market, Kaine will share his executive viewpoint on what REALTORS^® should know about the current state of the Commonwealth.

Want to be part of our team?

There are three easy ways to make the REALTOR^® voice heard during this General Assembly session:

1) Be a key contact. If you're on a first-name basis with a legislator, please contact Blake Hegeman (bhegeman@varealtor.com) to join our list of key contacts. As a friend of an elected official, you are one of VAR's best resources when we are trying to communicate our key messages.

2) Respond to Calls to Action. Periodically throughout the session, you may receive e-mail alerts asking you to contact your legislators on an important REALTOR^® issue. The more members who respond, the more impact we have on getting our issues through - or keeping harmful legislation from passing.

3) Attend Day on the Hill on February 13th! Join your fellow REALTORS^® and speak with your legislators in person about the issues that matter to your business. Following the day's events, be sure to attend our Legislative Reception to meet and mingle with state lawmakers at the Jefferson Hotel.