Real Estate Laws in Virginia

Real Estate Law in Virginia: Overview

Virginia real estate law features a non-judicial foreclosure system through deeds of trust, a grantor's tax on conveyances, and comprehensive seller disclosure requirements. The state uses deeds of trust and permits non-judicial foreclosure through the trustee sale process. Virginia imposes both a state grantor's tax and a regional congestion relief fee in Northern Virginia. The state requires seller disclosure for residential transactions through a detailed form. Virginia follows a common law property system with equitable distribution in divorce and recognizes tenancy by the entirety for married couples. The Virginia Residential Landlord and Tenant Act governs rental relationships in most of the state, with specific security deposit and eviction procedures. Northern Virginia's proximity to Washington, D.C., creates a unique high-cost real estate market with distinct regulatory considerations.

Key Statutes & Deadlines

Non-Judicial Foreclosure Process

Virginia uses deeds of trust with a trustee as the standard security instrument, enabling non-judicial foreclosure through the power-of-sale process. The trustee must publish notice of the sale once a week for two or more successive weeks in a newspaper in the area, and must post notice at the front door of the courthouse. The trustee must also mail notice to the borrower at the property address and last known address at least 14 days before the sale. The sale takes place at public auction, typically at the courthouse. Virginia does not provide a statutory right of redemption after the foreclosure sale. The borrower may cure the default and reinstate the loan up to one business day before the sale. Virginia permits deficiency judgments, which must be sought by motion within the same proceeding as the foreclosure.

Grantor's Tax and Regional Taxes

Virginia imposes a state grantor's tax of $1.00 per $1,000 of consideration on the seller (grantor) of real property. An additional $0.50 per $1,000 state congestion relief fee applies in localities that are members of the Northern Virginia Transportation Authority, effectively increasing the rate to $1.50 per $1,000 in Northern Virginia. A separate grantee's tax may also apply at the local level, typically at a rate set by the locality. The Hampton Roads region has its own additional regional tax. The grantor's tax is paid by the seller at the time of recording. Certain transfers are exempt, including transfers between spouses, transfers to governmental entities, and certain corporate reorganizations.

Virginia Residential Landlord and Tenant Act

The Virginia Residential Landlord and Tenant Act (VRLTA) provides a comprehensive framework for rental relationships in most of the state. The VRLTA applies in all localities unless a locality specifically opts out, which few have done. The Act requires landlords to maintain the premises in habitable condition, follow specific eviction procedures, and comply with security deposit requirements. Security deposits are limited to two months' rent and must be returned within 45 days of lease termination with an itemized statement of deductions. Virginia law requires that the deposit be held in a separate account with interest for deposits held for 13 or more months. The VRLTA provides remedies for both landlords and tenants, including damages and injunctive relief. Landlords must provide a written rental agreement for tenancies longer than one year. Virginia does not have statewide rent control.

Virginia Court System

Virginia Circuit Courts serve as the general jurisdiction trial courts in each of 31 judicial circuits and handle real estate disputes including foreclosure challenges, title disputes, and partition proceedings. General District Courts handle landlord-tenant matters, eviction (unlawful detainer) proceedings, and civil cases up to $25,000. Small Claims Courts handle disputes up to $5,000. Property tax disputes are filed with the local Board of Equalization or the Commissioner of the Revenue, with appeals to the Circuit Court. The Virginia Court of Appeals (recently expanded to have mandatory appellate jurisdiction) and the Supreme Court of Virginia handle appellate matters.

Damages & Penalties

Virginia real estate remedies include specific performance for breach of purchase contracts and compensatory damages for seller disclosure violations. In landlord-tenant disputes, landlords who fail to return security deposits within 45 days forfeit the right to withhold any portion and may face additional damages. Virginia provides that tenants may recover actual damages and reasonable attorney fees for landlord violations of the VRLTA. For foreclosure, deficiency judgments are available by motion in the same proceeding. Real estate licensees face discipline by the Virginia Real Estate Board. The Virginia Consumer Protection Act provides additional remedies for deceptive real estate practices, including actual damages and treble damages for willful violations.

Recent Legislative Changes

Virginia has expanded tenant protections, including additional notice requirements for rent increases and lease terminations, restrictions on late fees, and expanded eviction protections. The state has updated its seller disclosure form and addressed concerns about housing affordability in Northern Virginia. Virginia authorized remote online notarization and expanded the Court of Appeals' jurisdiction.

Frequently Asked Questions