We just obtained a copy of the new Virginia Residential Property Disclosure Statement that will go into effect January 1, 2008. It is nothing more than a revised Disclaimer Statement with a new name. It's comprised of an opening paragraph that states that the Disclosure Statement is mandatory in the sale of residential property and is followed by 6 paragraphs that all start with something like:
"The undersigned owner(s) makes no representations with respect to..."
It then has a section called "Additional Written Disclosure Requirements", which goes over Section 55-518.B., Section 55-519.1 and Section 32.1-164.1:1 of Virginia Code.
The first section says that the first sale of a dwelling "is exempt from the disclosure requirements listed above". That's basically a CYA for all new home builders in Virginia. The only "protection" that a buyer of new construction has with this Disclosure Statement is that it requires the builder of a new dwelling to "disclose in writing to the purchaser thereof all known material defects which would constitute a violation of any applicable building code."
Yeah, right. Good luck trying to prove that a builder actually knew anything.
The subsequent Sections go over disclosures pertinent to properties located in military air installations and those with septic systems.
The last part alerts consumers to the Virginia Condominium Act, the Virginia Cooperative Act and the Virginia Property Owners' Association Act, which are already covered in the Virginia Jurisdictional Addendum.
Basically, nothing will change with the new Virginia Residential Property Disclosure Statement. Sellers still get to say "I have no idea about anything" and Virginia retains its' "Buyer Beware" status.
For further guidance, please contact a real estate attorney licensed in the Commonwealth of Virginia.
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