New real estate laws take effect in Virginia

real_estate_law

As of July 1, several new laws have gone into effect across Virginia, two of which directly impact Realtors and their clients. Understanding these changes is important for anyone planning to buy or sell property in the Commonwealth.

House Bill 2671: Updated septic inspection requirements

One of the most significant changes is House Bill 2671, which affects properties with septic systems – particularly common in rural areas and even parts of the city. Previously, if the contract stated, a seller could fulfill the inspection requirement with a relatively simple walkover inspection, sometimes costing less than $100. This involved a visual check and a soil probe to confirm the drain field appeared functional.

Under the new law, however, the minimum requirements for a septic inspection are far more comprehensive. If buyers and sellers agree to a septic inspection, they must now have the system pumped prior to inspection, and a licensed professional must inspect not only the tank but also the distribution box and related components. While this ensures buyers receive a thorough report and peace of mind that the system is functioning properly, it also means a higher cost and potentially longer timeline for sellers, who, in our area, typically provide this inspection per the contract.

As everyone adjusts to these changes, we may see temporary delays in closing timelines for homes with septic systems. Still, this enhanced transparency ultimately benefits both parties by reducing the likelihood of costly surprises down the road.

House Bill 1684: Buyer agreements now required

The second key law to be aware of is House Bill 1684. This legislation now requires licensed real estate professionals to have a signed agreement in place before showing houses and representing a buyer. These Buyer Representation Agreements outline the Realtor’s duties to the client and clarify the compensation they’ll receive for their services.

While this may be new to some prospective buyers, it is a practice a number of firms in our association have been doing for years. With everyone following suit because of this new law, it’s a step toward greater transparency and professionalism in our industry. It helps ensure everyone understands the relationship, expectations and responsibilities from the very beginning of the home search.

Whether you are buying or selling, working with a local Realtor can help you navigate these new laws with confidence. We are here to guide you, advocate for you and ensure your transaction goes as smoothly as possible in an ever-evolving market.

 

Billy Morris

2025 President of the Lynchburg Association of Realtors

Associate Broker at John Stewart Walker, Inc.