Bulletin: VA2016004

Date:
August 04, 2016
To:
All Virginia Issuing Offices
RE:
LEGISLATIVE UPDATE - Virginia General Assembly Update

Dear Associates:

Please see the summary by category of the legislation passed in 2016 by the Virginia General Assembly, and signed by the Governor of Virginia. All went into effect July 1, 2016, unless noted.

Liens

1.  Senate Bill 392 amends and reenacts Va. Code §8.01-453: allows a judgment creditor to record an instrument releasing the property from a judgment even though the Clerk has not entered a satisfaction of the judgment.

2.  House Bill 1128 amends and reenacts Va. Code §8.01-220.2: A lien for emergency medical care cannot be enforced against a Tenancy by the Entirety principal residence property unless same is refinanced or transferred to new owners.

Professionals/Occupations/Education

3.  House Bill 393 and Senate Bill 204 amend and reenacts Va. Code §38.2-1820: Requires a designated License Provider of a licensed agency to be an employee, officer or director for BOI compliance. The new BOI Administrative letter can be viewed at

https://www.scc.virginia.gov/boi/adminlets/16-04.pdf The final order can be viewed at: http://www.scc.virginia.gov/docketsearch/DOCS/39%40c01!.PDF.

4.  House Bill 844 amends and reenacts Va. Code §§38.2-1868, 38.2-1869, and 38.2-1870: Gives a 30 day grace period to agents who fail to file proof of CE compliance with a $100.00 penalty fee. Must file proof of compliance by January 31st.

5.  House Bill 596 amends and reenacts Va. Code §58.1-811 and repeals §58.1-806: Exempts from recordation tax (1) certain deeds of partition, (2) deeds transferring property pursuant to a divorce decree.

6.  Senate bill 204 amends various statutes regarding settlement agents adding Closing Disclosure to comply with new CFPB regulations.

Community Associations

7.  House Bill 684 amends and reenacts various code sections in Va. Code §55-79 and others, which prohibits an association from charging fees not authorized by statute and requires associations to recognize owners designate or realtor as a representative of owner without requiring a Power of Attorney.

8.  House Bill 1101 amends and reenacts Va. Code §39.1-914: That a Community Association may obtain from the State Police upon request a notice of sex offender registration or reregistration whose required address is in the same or contiguous zip code as the association.

9.  House Bill 1146 and Senate Bill 389: Prohibits a municipality from requiring consent of an association for a building permit or business license.

Condemnation

10.  Senate Bill 478 amends and reenacts Va. Code §25.1-345: Property owners costs and fees may be awarded if value of property awarded at trial exceeds 25-30% of initial offer made by railroad, public service companies or government utility companies if property taken by eminent domain.

11.  Senate Bill 237 amends and reenacts Va. Code §55-516.2: In condemnation proceedings the value of common elements is to be based on highest and best use free of common area restrictions. But as a result of this bill taxation of the common area shall not be on highest and best use.

12.  Senate Bill 543 amends and reenacts Va. Code §25.1-240: Provides for reimbursement of owner’s costs from inverse condemnation for damaging property if owner prevails.

Real Estate Sales/Tax Exemptions

13.  House Bill 339 amends and reenacts Va. Code §§58.1-802 and 58.1-811: Establishes an exemption for grantors tax for municipal tax sales where grantor is a locality. Also provides exemptions for recordation tax for certain loans made by localities to borrowers whose household income does not exceed 80% of median income established by HUD.

14.  House Bill 1290 and Senate Bill 687 amend and reenact Va. Code §55-332: Unlawful removal of timber from another’s land can result in the responsible party having to pay attorney’s fees to the aggrieved party. (Response to Chacey v Chacey Virginia Supreme Court decision.)

15.  Senate Bill 282: Creates a Shoreline Resiliency Fund to provide low interest loans to help property owners mitigate flood damage in areas subject to recurring flooding.

Estates

16.  House Bill 230 amends and reenacts Va. Code §64.2-719: allows a Circuit Court to establish and create a trust upon petition of an interested party.

17.  House Bill 231 amends and reenacts statutes related to augmented estates: The elective share of surviving spouse is calculated as a graduated percentage based on both spouses assets and duration of marriage. To be effective as to a decedent dying on or after January 1, 2017.

Miscellaneous  

18.  House Bill 703 and Senate Bill 415 amend various code sections and add Va. Code §16.1-333.1: states that both parties must be 18 in order to marry unless emancipated. 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None