By now, you’ve probably heard about the new affirmative seller disclosure that took effect on January 1, 2022, but we wanted to provide a reminder now that it has gone into effect.
The new section of the law, Section 55.1-708.2 of the Virginia Code, requires that “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.”
But what is a repetitive risk loss structure?
The new law defines it clearly as a property for which “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.”
The disclosure must be made on a form provided by the VREB– just like other affirmative disclosures.
Sellers, who are under contract as of December 31, 2021, do not need to provide this new disclosure to the buyers. The law says that the owner of a property subject to the disclosure requirement must provide notification to the purchaser of any disclosure before the ratification of a contract and they shall be current as of the date of delivery. The law even specifically states that the seller is not required to provide subsequent delivery of additional disclosures if a transaction proceeds to settlement after the effective date of legislation amending any disclosure requirements.
If you have questions about this new disclosure, please contact the Virginia REALTORS® Legal Hotline.
Laura Farley, Virginia REALTORS® General Counsel