Legislative Update on a Represented Seller's Closing Fees

Legislative Update on a Represented Seller's Closing Fees

In March of this year, the Virginia Legislature approved a new bill which would require written consent from a represented seller’s counsel before a settlement agent or its subsidiaries, affiliates, or subcontractors [“Settlement Agent”] can collect any fees payable to the Settlement Agent from the seller. Effective July 1, 2023, the law regarding choice of Settlement Agents in Virginia will read as follows:

What You Might Not Know About the Earnest Money Deposit

What You Might Not Know About the Earnest Money Deposit

An earnest money deposit (EMD) is the money that a Buyer puts down to demonstrate their “good faith” or seriousness about buying a particular home. If the Buyer defaults on or cancels the contract, this EMD serves as liquidated damages, in part to compensate the Seller for the time, expense, and effort expended on that transaction and/or required to secure new buyers. Shortly after the contract to buy/sell a particular property is entered into, the EMD is paid to a third party (“Escrow Agent”), typically the title company handling the closing.

What is a Survey and How Does it Protect You?

What is a Survey and How Does it Protect You?

You painstakingly research and educate yourself prior to purchasing important items such as automobiles, car seats, computers, or smart phones – it should be no different when purchasing your largest asset, your home. Surveying the property is an important part of that research. So, what is a survey and how does it protect you, as the buyer of real property?

Wrap Around Mortgages

Wrap Around Mortgages

As interest rates continue to rise, buyers may begin to search for creative financing alternatives that allow them to maximize their purchasing power and get into the homes of their choice. One option that may reemerge from the days of high interest rates in the mid 1970’s and early 1980’s is the wrap around mortgage. So, what is a wrap around mortgage and what makes it so attractive for buyers and sellers in the face of continued interest rate hikes?

Source of Funds - A Protected Class in Virginia

Source of Funds - A Protected Class in Virginia

The Virginia General Assembly during the 2020 session revised the Virginia Fair Housing Law to include “source of funds” as a newly protected class effective July 1, 2020. According to the Guidance Document issued by the Virginia Real Estate Board (VREB), the primary impetus for the bill was to protect prospective renters and buyers from discrimination if they intended to pay for housing using a Housing Choice Voucher (HCV).

Who is Responsible for Repairs During a Post Settlement Occupancy?

Who is Responsible for Repairs During a Post Settlement Occupancy?

Who is responsible for damage to the home or malfunction of systems during the post occupancy period? This is a common question for buyers, sellers, and their real estate agents, whenever a Post Settlement Occupancy Agreement (often referred to as a Rent Back Agreement) is made a part of the parties’ contract. To answer the question, we need to look at how this risk is allocated in the parties’ agreement.