Virginia Landlord Disputes: Three Big Legal Changes

Are you interested in becoming a landlord or are you a landlord trying to stay updated on all the new laws in Virginia? There are several new laws that have been adopted by Virginia recently that you need to be aware of. These new laws may impact the terms of any leases you are currently using. As such, you may want to consider contacting a lawyer to help update your leases.

So what are these new laws, and what dangers to they represent?

Virginia Residential Landlord Tenant Act

Opt Out

Landlords that own less than five (5) investment properties used to be covered by a less strict version of the Virginia Residential Landlord Tenant Act. However, new law in Virginia requires that these landlords specifically opt-out of the provisions of the Virginia Residential Landlord Tenant Act. Failure to include specific opt-out language may result in your property being covered by the stricter rules that govern larger landlords.

This could result in significantly more overhead when it comes to maintaining your properties. Landlords that are covered by the Virginia Residential Landlord Tenant Act have more duties to their tenants. Some of those duties include, but are not limited to, maintaining the property in better working order.

Eviction Waiting Requirements

Virginia has also modified the length of time it takes to get possession of your rental property from a non-paying tenant. Landlords used to be able to request “immediate possession.” By doing so, the court could allow a landlord to immediately take possession of the property for repairs.

The new law limits a landlord’s ability to take immediate possession. The new law requires an automatic ten (10) day waiting period before you can perform a lock-out. It is important to know about this change as it may impact your timeline for re-letting the property. This language may also impact any agreements you have with your prospective tenants.

Foreclosure Dangers

Another recent change to Virginia Landlord/Tenant law is that leases now automatically terminate upon a foreclosure. Therefore, if you own a rental property and are foreclosed upon, your tenant may be subject to a quick eviction within a short period of time. This can have serious economic hardships for the tenant. Therefore, it may be a good idea to seek legal advice on how to put language in your lease to protect yourself from economic harm resulting from a foreclosure.

Why you need a lawyer

If you invest in real estate it is a good idea to have a lawyer review your contracts on an annual basis. Laws are constantly changing, and a seemingly mundane change in the law can have serious impacts on your ability to make a living. Make sure you regularly consult your lawyer on issues related to your properties.

Virginia Landlord Disputes: The Tenant's Assertion

Are you renting from a landlord? If so, you have rights that you need to be aware of. Virginia law protects renters from some of your landlord’s unfair actions. If you are the victim of an overly aggressive landlord, you need to be aware of how to protect yourself.

So what does Virginia law say about landlords, and what do you need to do if you have a dispute with your landlord?

What Virginia Law Applies?

There are two different laws related to Landlords and Tenants. The one that applies to your particular case depends on several factors including a) how many rental properties your landlord has and b) the terms of your lease. If you have a large business as your landlord, they are likely covered by the Virginia Residential Landlord Tenant Act. If you have a small family as your landlord that only has one rental, then you have fewer protections.

What are some common issues with your landlords?

Tenants can have any number of disputes with their landlord. Some common examples include mold, malfunctioning appliances, withholding security deposits, unlawful evictions, nosey landlords entering the rental without notice and refusal to fix certain problems with the property. Some of these issues are more serious than others, and the law has more protections for issues such as mold than it does for issues such as nosey landlords. For example, when dealing with visible mold, the Landlord has only five (5) days to fix the mold upon written notice.

What to do if you have a dispute with your landlord?

Under no circumstances should you refuse to pay rent to your landlord. Virginia law does not allow you to withhold rent. If your landlord isn’t doing what they are supposed to, you have to file what is known as a “Tenant’s Assertion” with your local court and send certain notices to your landlord notifying them of the problem. You will also likely have to pay your rent into court for at least one month. If you lose your case, your rent will be handed to the landlord. If you win your case, the landlord will be required to do whatever they were supposed to.

Why do you need a lawyer?

The tenant’s assertion process and deciding what notices need to be sent can be rather complicated, and there are deadlines to file these documents. If the landlord has filed for eviction, it makes it all the more urgent that you need to have a lawyer help you file the documentation at the appropriate time. If you fail to file what you are supposed to, the judge cannot consider your arguments. You should contact a local real estate attorney to discuss your rights when faced with an aggressive or negligent landlord. If you cannot afford to hire that attorney, there are several legal aid services throughout the state of Virginia to help you.

Virginia Real Estate: Types of Mortgages

Have you decided to buy your first home? Are you an investor looking to flip a property? Either way, mortgages are an important aspect of any house purchase. Mortgages come in all shapes and sizes. Mortgages can have different terms, rates, and obligations based upon the type of mortgage you qualify for. Below are some basic types of mortgages. Each of the types of mortgages listed below have several different subtypes of mortgages that are best discussed with your lender.

Conventional Mortgage

This is one of the most common types of mortgages. This mortgage is a private transaction between yourself and a lending institution. There are several different types of lending institutions. One common example of a conventional mortgage is a loan from your local bank.

These types of mortgages can come with a variety of benefits. Because these loans are with private institutions, your lender has a lot more freedom to offer incentives or other benefits. These mortgages are typically accessible for individuals with a good job and good credit.

FHA Loan

These types of loans are backed by the federal government. FHA stands for Federal Housing Administration. This is the governmental body responsible for supporting these types of loans.

The benefit of a FHA loan is that you may qualify for these loans even if your finances or credit are not that good. The downside of an FHA loan is that you are limited in the number of times you can qualify for this type of loan and the rates are highly regulated. The federal government sets strict standards for the amount of downpayment that has to be made and the rates associated with the mortgage.

VA Loan

These loans are only available for certain qualifying individuals. VA stands for Veterans Affairs. These are excellent loans for service members. More highly regulated than FHA loans, these loans are even more accessible than FHA loans and conventional loans.

How to Choose a Mortgage

There are a lot of considerations in deciding which types of mortgage or lending institution is right for you. Some of those considerations are legal in nature. Mortgages can have provisions related to when the lending institution can foreclose, potential increases in payments during the lifespan of the loan, and several other terms that are important to know. If you are considering buying your first home or investing in real estate, consider working with a team to determine what financial arrangements are best for you. Consider a team of a real estate agent, a CPA, and an attorney to maximize your understanding of your potential purchase.

Virginia Real Estate: Types of Professionals

Are you thinking of buying or selling real estate? If so, you have several options for accomplishing this goal. Property can either be sold by owner or may involve a brokerage firm. Either way, you need to be familiar with the various types of professionals that are involved in a real estate transaction, what their role is, and how best to interact with those professionals. Understanding the role of each professional will speed up the process and help you buy the right property or sell your property for the right amount.

So who are these professionals, and what are their jobs? The professionals listed below may not be a complete list of who is involved in your particular property.

Real Estate Agents

The first major group of professionals involved in the sale or purchase of a property is real estate agents. Real estate agents are licensed professionals that have access to special databases that provide significant amounts of detail for properties in your local area. Real estate agents use these databases to find homes for sale or to find comparable homes to determine how much your property should be sold for.

Real estate agents, however, are not lawyers. They cannot provide you with legal advice or tell you what type of deed you need. A real estate agent is also restricted from helping you settle certain types of disputes. The primary role of a real estate agent is to give you experienced pricing and location services.

Real Estate Inspectors

The second major group of professionals is home inspectors. Home inspectors are professionals that are hired to make sure that the property is safe, bug free, and structurally sound. Home inspectors can come in many different types. Some home inspectors are not able to provide engineering advice, and cannot tell if you have structural issues.

The most common type of home inspector will simply perform a cursory investigation, and will not attempt to uncover any hidden defects in the property. If you have substantial concerns about the safety of the property, you need to invest in a more thorough evaluation of the property by an engineer or other type of inspector.

Real Estate Financing

The third major group of professionals is the mortgage company or banking industry professionals. These individuals are there to provide financing or evaluations on the value of a property. A mortgage company may be essential if the property needs repairs prior to sale, or if a couple needs additional help to purchase a home. Mortgages can come in all shapes and types. These types of mortgages will be discussed in greater detail in a different post.

Lawyers

The final major group of professionals is lawyers. Lawyers play a huge role in the purchase or sale of property. A lawyer can provide legal advice in the event that there is a dispute between you and any of these other groups of professionals. A lawyer can also review deeds and provide guidance on how best to proceed on the sale or purchase of a property. Finally, a lawyer’s services can be used to make sure the sale of the home is properly recorded.

Virginia Real Estate: Types of Deeds

So you have decided to purchase or sell some property. One of the issues that can come up during the sale of property is the type of deed that should be used. A deed is a document that formally transfers ownership of property from one person to another. Deeds come in various types. Each type has its own benefits and risks.

If you are thinking of purchasing or selling a property, you need to be aware of these types of deeds.

Quitclaim Deed

This is the first, and weakest, type of deed. This type of deed is rarely a good idea. A quitclaim deed conveys whatever interest the seller has in the property to the buyer. This means that a seller may not even have proper title to the property, and could be selling the buyer bad title.

A quitclaim deed can also limit the type of ownership the new buyer has to the same type of ownership the seller has. For example, if the seller has a life estate, the buyer would only get a life estate.

Therefore, it is important to know that a quitclaim deed can be dangerous.

Special Warranty Deed

The second type of deed is the special warranty deed. This type of deed is one step above a quitclaim deed. It gives a specific type of title to the buyer and comes with several warranties. A special warranty deed can protect a buyer from issues of title created by the seller.

For example, if the seller negligently causes a mechanic’s lien to be issued against the property prior to or during closing, a special warranty deed would protect the buyer.

However, a special warranty deed does not protect a buyer against issues that come up as a result of the negligence of prior owners.

General Warranty Deed

This is the strongest type of deed. This type of deed comes with several warranties and protects the buyer from any conditions caused either by the seller or prior owners of the property. This is the ideal type of deed to have when buying property, and it is the most valuable type of deed.

If you obtain a general warranty deed, you can bring a lawsuit against a seller for any issues of title, whether it was the seller’s fault or prior owners.

Why you need a real estate lawyer.

A lawyer can help you determine what type of deed is best for your particular case. Sometimes, you don’t need to have a general warranty deed, and can save on the costs associated with that type of deed. However, you need to be aware of all the risks associated with having a lesser type of deed. Therefore, before closing on any real estate transaction, seek legal counsel. That way, if there is an issue down the line, you will know your rights.