JULY 1

New Agency & Professionalism Bill Appraisal Management Companies

(AMCs) Landlord & Tenant Laws MORE Landlord & Tenant Laws Condominium Act Owner Financing Tenant Utility Liens

Fairfax City Rental Inspection Ordinance

Alternative Onsite Sewage System Bonding

All laws go into effect

AGENCY & PROFESSIONALISM

The Real Estate Board will develop a plan and regulations permitting you to “carry over” excess CE elective credit hours to the next license term.

The Real Estate Board will have authority to issue guidance and opinion on scope-of-work questions regarding Unlicensed Assistants.

The Real Estate Board will be expressly given authority to speak to Team Practice in this context.

AGENCY & PROFESSIONALISM

Brokers will be able to do business as a “business entity.” A quirk in the law had allowed both salesmen and associate brokers to work as salesmen in business entity forms, but prohibited a broker from doing business as a broker in a business entity form.

You will not have to advise your client to hire a lawyer to represent them at settlement just because the other side has one!

Broker supervision standards are taken out of regulation and put in statute – to emphasize their importance.

Cont’d.

AGENCY & PROFESSIONALISM

A Broker Self-Audit will be required to be performed once per license cycle, by the principal or supervising broker (or sole practitioner). This audit must be noted on your renewal (but you don’t have to send it in) and must be kept on the premises, and made available to any Real Estate Board investigator or agent who asks to see it. This follows the successful model

of Arizona – and may help to resolve the ongoing dispute that led to “random audits” by the Real Estate Board.

This will begin January 1, 2013

Cont’d.

FOR MORE INFORMATION ON AGENCY LAW CHANGES, VISIT VAR’S AGENCY CENTERTHIS ONLINE RESOURCE GIVES YOU ACCESS TO VIDEOS ARTICLES LEGAL Q&A

WWW.VAREALTOR.COM/AGENCY

APPRAISAL MANAGEMENT COMPANIES

The Dodd-Frank Act requires states to bring Appraisal Management Companies (AMCs) under the supervision and control of their regulatory boards for appraisers.

This will permit AMCs to be licensed by the Real Estate Appraiser Board – and will give AMCs a seat on the Real Estate Appraiser Board.

Applies to any AMC not already regulated by a state or federal regulator – and not part of a federally chartered bank.

Clarifies duties of AMCs and provides remedies for breach.

LANDLORD & TENANT

Allows a copy of the lease to be used in a suit for possession rather than the original (which some courts would not give back).

Allows owners to remediate mold on their own properties.

Allows tenants in good standing (paid and incompliance) to remain in leased dwelling units for up to 90 days following foreclosure of the property.

Allows landlords to charge tenants for insurance coverage of their premises as well as an administrative fee for such tenant insurance programs.

Technical and definition clean ups.

(Part 1)

LANDLORD & TENANT

Local Governments may NOT charge overtime rates to building owners for conducting fire safety inspections during ordinary business hours. They may, however, charge fees to help cover the costs of such inspections.

Owners may obtain fire safety inspections from private contractors provided they are appropriately trained and certified.

(Part 2)

CONDOMINIUM ACT

When a unit is sold by auction and the resale packet has been included with auction materials before sale, the purchaser at auction is not able to demand a second resale packet, and does not receive a second cancellation period.

This is the same provision that is included in the Property Owners Association Act.

OWNERFINANCING

Owner financing of property sales is expressly exempted from the licensing requirements for mortgage lenders.

TENANT UTILITY LIENS

Issue VAR has worked on with others for three years.

Tenants may only contract for utility service with advance written consent of owner or landlord.

Maximum of three months of unpaid bills permitted before locality or utility provider must notify owners of delinquency.

Owner must be given opportunity to cure delinquency before lien is placed on property.

In most cases, utility or locality must collect a deposit from the tenant.

OTHER ISSUES

Fairfax City has tried three times to enact an illegal Rental Inspection ordinance. Each time we have filed legislation to “pull them back”. This year was the same.

Fauquier County was discussing adopting a bonding requirement for those who installed an Alternative Onsite Sewage System - $15,000. This would be an additional cost of acquisition for a buyer, and is specifically not permitted by the Dillon Rule. The bill was carried over – Fauquier County also withdrew the concept. Will be worked on over the year.

DOWNLOAD A COPY OF THE NEW LAWS POSTER AND CHECK OUT OTHER GREAT RESOURCES HERE:www.VAREALTOR.com/NEWLAWS