HB 702 — Va. Residential Property Disclosure Act; required disclosures, maximum lot coverage.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E268 An Act to amend and reenact § 55.1-703 of the Code of Virginia, relating to Residential Property lotDisclosure coverage.t;Act;

buyer to exercise necessary due diRigence;diligence;

Olot [Hcoverage. 702] L Approved L Be it enacted by the General Assembly of Virginia:

E[H 1.702] Approved April 8, 2022 Be it enacted by the General Assembly of Virginia:

1.

D§ A.55.1-703.

Required disclosures for buyer to beware;

buyer to exercise necessary due diligence.

A.

B.shall include the following:ty disclosure statement provided by the Real Estate Board on its website 1.

The residentialowner makes no representations or warranties as to the condition of the real property disclosureor statementany providedimprovements bythereon, or with regard to any covenants and restrictions, or any conveyances of mineral rights, as may be recorded among the Realland Estaterecords Boardaffecting onthe itsreal websiteproperty shallor includeany 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 following:guidelines provided by the U.S.

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 mHneral rights, as may be recorded among the land records affecting the real property or any improvemen7s 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.

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 property.itythe locality to determine zoning ordinances or lot coverage, height, or setback requirements on the 3.property.

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;

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 toctto § 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;

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 tormsto settlement pursuant to such contract;

of 3 6.

Such disclosure statement shall advise purchasers to exercise whatever due diligence of 3 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;

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 of 3 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 purEuantpursuant to such contract.

For purposes of this subdivision, "defective drywall" means the same as that terNterm is def16.defined in § 36-156.1;

and 16.

The owner makes no representation with respect to the condition or regulatory status of any of 3 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 whatOverwhatever 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 profesLionalprofessional engineer.

C.

The residential property disclosure statement shall be delivered in accordance with § 55.1-709.

Such9.Such form shall be substantially as follows:

Flood Risk Information Form The purpose of this information form shallis beto substantiallyprovide asproperty follows:owners and potential property owners with information regarding flood risk.

D Flood Risk Information Form The purpose of this information form is to provide property owners and potential property owners with information regarding flood risk.

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 ownerHowners 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 Special0FloodSpecial Flood Hazard Area.

A Special Flood Hazard Area (SFHA) is a high-risk area defined as any land that woEldwould 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).

It is prudent to consider purchasing flood insurance even when flood preferredinsurance riskis floodnot insurancerequired policy.by a lender.

Properties not located in a SFHA may be eligible for a low-cost preferred risk flood insurance policy.

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 curFEMAcurrents isof requiredwater toexceeding updateanticipated Floodcyclical Mapslevels everythat fiveresult years.in a flood.

FEMA is required to update Flood Maps every five years.