New Virginia Real Estate Laws Effective July 1, 2025

Posted by Christian Harris | July 2025 | New Virginia Real Estate Law

Virginia Real Estate Law Updates – Effective July 1, 2025

Virginia has introduced a wide range of legislative changes that affect real estate, housing, infrastructure, and consumer protections. These updates go into effect on July 1, 2025, and impact landlords, tenants, buyers, sellers, HOAs, real estate professionals, developers, and local governments. Here’s a consumer-friendly summary of the major changes.

Environmental and Infrastructure

Stormwater Management Access Expanded
Localities operating storm sewer systems now have expanded authority to enter private property for inspections and enforcement under the Virginia Erosion and Stormwater Management Act. (HB 2008 / SB 1093)

C-PACE Financing Expanded
Commercial Property Assessed Clean Energy (C-PACE) financing now includes eligibility for multifamily buildings with five or more units and commercial condominiums. This supports broader adoption of clean energy upgrades. (HB 1819)

Homeowners’ Associations and Condominiums

Terminate Management Contracts Without Cause
HOAs and condominium associations can now cancel automatic-renewal management contracts with at least 60 days’ written notice. Outgoing managers must promptly transfer all funds and close accounts without extra fees. (HB 2750)

No Buyer Name Required for Resale Certificates
Associations can no longer require a buyer's name in order to prepare a resale certificate or disclosure packet. (HB 2110)

Insurance Deductible Disclosure
Resale packets must now disclose if governing documents permit unit owners to be charged for part of the association’s insurance deductible. (HB 1704 / SB 808)

Community Land Trust Governance Changes
Community land trusts are no longer required to maintain open membership or have a majority-elected board, offering more flexible governance. (HB 2151)

Landlord-Tenant Law

Fee Disclosure on First Page of Lease
All extra fees (e.g., late payment, cleaning, amenities) must be itemized on the first page of the lease or renewal. No new fees may be added unless formally amended. (HB 2430)

Ban on Processing Fees for Payment
Landlords may not charge processing or convenience fees unless they offer a fee-free payment option, such as check or money order. (HB 2218 / SB 1356)

Permanent Eviction Diversion Program
The eviction diversion pilot is now permanent across all district courts. It enables mediation and payment plans to help tenants avoid eviction. (HB 1623 / SB 830)

New Notice of Nonrenewal Requirement
Landlords with more than four units (or 10% interest in more than four) must give tenants 60 days’ written notice of non-renewal. (HB 1867 / SB 1043)

Planning, Zoning, and Land Use

Subdivision and Site Plan Approvals Streamlined
Planning commission approval is no longer needed for administrative plats or minor site plans in most localities. (HB 2660 / SB 974)

Shorter Public Hearing Notice Periods
Second required public notices for planning/zoning hearings now only need to be published five days before the hearing. (HB 1996)

Enhanced Civil Penalties for Zoning Violations
Localities have greater authority to impose higher penalties on repeat zoning violations, especially for multifamily properties. (SB 1267)

Property Disclosures and Consumer Protections

Standard Septic Inspection Requirements
Septic inspections during property sales must meet new standards and be performed by certified inspectors. Reports are due within 10 days. (HB 2671)

Certified Mold Remediation Required
Mold removal must be conducted by nationally certified professionals, and violations may result in liability under the Virginia Consumer Protection Act. (HB 2195)

Residential Airport Noise Disclosure
Disclosure packets must now advise buyers to review public data regarding airport noise exposure when purchasing near a public-use airport. (HB 1706 / SB 1210)

Deed Fraud Advisory Group Formed
Virginia Housing Development Authority will study deed fraud and deliver recommendations by November 1, 2025. (HB 2396 / SB 1270)

Real Estate Brokerage and Licensing

Written Agreements Required Before Showings
Agents must have a signed brokerage agreement in place before showing properties to buyers or tenants. (HB 1684 / SB 1309)

Broker Employee Leasing Authority Expanded
Unlicensed employees under a broker may now sign residential leases and collect deposits, easing administrative burdens. (HB 2557 / SB 993)

Secured Transactions and Commercial Code

Priority of Security Interests in Fixtures Clarified
Virginia revised UCC § 8.9A-334 to confirm lien priority rules for fixtures and crops. (Va. Code § 8.9A-334)

Written Lease Modification Rule Affirmed
Commercial lease changes can be enforced if in writing, even without new consideration, under Virginia's UCC rules. (Va. Code § 8.9A-208)

Tax and Valuation

Affordable Housing Real Estate Tax Assessment Reform
Starting January 1, 2026, affordable housing must be valued using the income approach. Developers must begin submitting standardized forms by September 1, 2025. (HB 2245)

Tax Delinquency, Blight, and Redevelopment

Increased Nonjudicial Auction Threshold
Local treasurers can now auction tax-delinquent properties valued up to $15,000 without court approval. (HB 1792)

Lis Pendens Clarification
A lis pendens can be filed to protect interests in tax lien enforcement or partition suits if all interested parties are named. (HB 2362)

Land Bank Transfers for Blighted Property
Long-vacant, blighted, tax-delinquent parcels may be conveyed to land banks or nonprofits instead of going to auction. (SB 1476)

Conclusion
These new laws reflect Virginia’s effort to modernize and improve housing, development, environmental oversight, and consumer protection across the real estate sector. If you’re a real estate professional, investor, buyer, or renter, now is a good time to review these changes and update your policies, agreements, and procedures accordingly.