2010 Legislative Agenda

Information current as of January 19, 2010

The 2010 VAR Legislative Agenda is the culmination of many months of work by members of the VAR Public Policy Committee, the Board of Directors and the Specialty Groups.

In addition, Realtors® and staff coordinated our efforts with legislators, the Virginia Housing Commission and other interested advocacy groups.

All told, this legislative agenda may be the most aggressive that VAR has ever introduced.

Real Estate Signs

  • Senate Bill 64 – Senator Louise Lucas

  • House Bill 553 – Delegate Danny Marshall

Real estate signs are being removed by local governments and/or their representatives, and Realtors® are finding it difficult to determine what each local government allows or prohibits. Realtors® use these signs to direct their clients to open houses.

These bills establish a statewide standard for localities to adopt that will allow temporary directional signs to be placed on the shoulder of roads for three days.

Out-of-State-Agents / Business Brokers / Voluntary Reporting to the Virginia Real Estate Board

  • Senate Bill 457 – Senator Donald McEachin

  • House Bill 963 – Delegate Jackson Miller

Realtors® depend on their colleagues to adhere to a strict set of professional guidelines to ensure that consumers, whether they are buying or selling, are protected and get the best service possible. Currently, real estate agents from other states can come to Virginia and represent a client without having passed the Virginia real estate exam.

These bills close this loophole and require out-of-state agents to take the Virginia portion of the exam.

A growing industry in Virginia is “business-brokerage,” where companies offer to represent third parties as they buy or sell a business. Many times, these transactions can involve real estate. Moreover, business brokerage is not a regulated profession in Virginia.

These bills establish a regulatory scheme under the Department of Professional and Occupational Regulation and clarify that if the transaction involves real estate, a real estate licensee must be involved.

Under Virginia Real Estate Board regulations, brokers are required to report any regulatory violation to the board, including when they learn that one of their agents has broken the regulations, unintentionally or not. Once they report the violation, they are subject to sanctions by the board.

We think there should be some flexibility afforded brokers who discover REB regulation breaches and report them. These bills establish a minimum level of immunity for brokers who report their agents or themselves for incidental breaches of regulations.

Vested Rights

  • House Bill 552 – Delegate Danny Marshall

Under current Virginia law, localities can rescind zoning decisions and zoning opinions granted to property owners and, in some cases, go back and have the property owner tear down or replace whatever improvement was requested. There have been several cases in Virginia in 2009 alone.

We believe that once a local government makes a determination on what you can do with your property and you rely on that determination to begin construction, the locality should NOT have the ability to change its decision.

This bill clarifies that.

Interpleader Clarification

  • House Bill 231 – Delegate Rosalyn Dance

What happens when a buyer and a seller cannot agree to the terms of a contract and there is a question about whom is owed the deposit? This is a question that plagues brokers, but, unfortunately, the only way to solve that dilemma under current law is to go to Circuit Court.

Our bill changes that process and allows brokers to file an interpleader in General District Court. It will take less time, cost less money, but it provides the same legal process with the decision made by a judge.

Appraisal Management Companies

  • House Bill 408 – Delegate Glenn Oder

Over the past couple of years, there has been a dramatic increase in the use of Appraisal Management Companies (AMC’s). These AMC’s are not regulated by the state, resulting in numerous issues concerning the use of out-of-state appraisers to determine appraisals in Virginia.

We believe that, at a minimum, AMC’s should be using state-licensed appraisers at every point in the transaction and that AMC’s should be regulated by the Virginia Real Estate Appraisers Board, just as every Virginia-licensed appraiser is.

We are working with other interested parties on language that sets those minimum standards.

Board of Equalization – Increasing the Time Period a Ruling is Valid

  • Senate Bill 273 – Senator Mary Margaret Whipple

In some areas, particularly Northern Virginia and Hampton Roads, real estate assessments have sometimes spiraled out of control. Many times, homeowners will appeal their assessment to the local Board of Equalization.

Currently, when a homeowner wins that appeal, the reduced assessment is only good for THAT tax year, and the assessor can come back and increase the assessed value the very next year.

This bill makes the ruling good for two years.

Virginia Residential Landlord Tenant Act Reform

  • House Bill 407 – Glenn Oder

The Virginia Residential Landlord Tenant Act (VRLTA) is the body of law that governs landlord and tenant relationships.

From time to time, we identify efficiencies that can be made….efficiencies that protect the landlord and the tenant.

Here’s what this bill accomplishes:

  1. Provides that the Supreme Court of Virginia shall allow electronic upload of unlawful detainer actions in court;
  2. Clarifies that Rational Utility Billing (RUB) is covered under VRLTA as rent, versus utility payments as regulated by the SCC;
  3. Clarifies when property managers can go to court without a lawyer;
  4. Clarifies that landlords can charge administrative fees to cover damage and renters insurance programs;
  5. Authorizes landlords to withhold the return of security deposits until water and sewer bills have been paid to the locality.

REALTOR® License Plate for Affordable Housing

  • Senate Bill 170 – Senator Edd Houck

With a rising concern for the lack of affordable housing, this bill will raise the current fee for a Realtor® license plate and earmark the additional funds for affordable housing programs.

Assessment of Affordable Housing

  • Senate Bill 273 – Senator Mary Margaret Whipple

For the past several years, Realtors® have supported efforts to protect landlords who provide “affordable housing apartments” from local government assessors who want to base their assessments on the “market rate” in the area. This can substantially raise the tax assessment, thereby costing the landlord much more.

Senate Bill 273 puts protections in the law for landlords who are providing below market-rate housing. We need landlords to continue to do this and need to protect the ones who are making affordable housing available.

1031 Exchange Agents

  • House Bill 417 – Delegate Glenn Oder

This bill creates protections for consumers who participate in 1031 real estate exchange transactions by clarifying requirements and prohibitions for 1031 exchange facilitators.

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