The 2026 Virginia General Assembly delivered a consequential and, at times, historic session.
Following the 2025 Virginia Elections, Democrats held full control of the Virginia state government with the Governor’s office, an expanded partisan split — near supermajority — in the House of Delegates, and the State Senate. Several issues that had previously failed to advance under a more bipartisan controlled government and Republican Governor were now on the table for consideration. Lawmakers convened on January 14, 2026, and adjourned on March 14, working through a 60-day session that addresses everything from constitutional amendments and a new cannabis retail framework to sweeping changes in housing and landlord-tenant law. The Virginia General Assembly did, however, adjourn without a final biennial budget agreement. A special session was called to resolve ongoing differences over data center tax exemptions and final budget numbers, but as of publication the budget debate is still on-going.
Your Northern Virginia Association of Realtors® (NVAR) and Virginia REALTORS® Government Affairs team was hard at work throughout the session. The Statewide Public Policy Committee monitored 196 bills and acted on 132, helping pass 41 bills that benefit you and your clients, defeating 13 bills that would have harmed you and your clients, and amending 35 bills to better protect Realtor® interests.
Notably, zero priority opposition bills passed the General Assembly this session. This includes legislation we opposed and helped defeat on rent control, mandatory disclosure, development impact fees, and requirements for adequate public facilities that would have added costs and constraints to housing development and supply across Virginia.
In January more than 100 NVAR members registered to attend our Annual Realtors® Lobby Day, adding to the over 500 Realtors® who visited Richmond throughout the session.
A Session of Big Headlines
Several high-profile issues captured statewide attention during the 2026 session, including:
- Passage of a constitutional amendment allowing a congressional redistricting referendum (later overturned by the Courts);
- Constitutional amendments on reproductive rights, voting rights, and marriage equality;
- Raising the minimum wage to $15/hour over several years, and establishing paid family and medical leave beginning in 2029;
- Banning certain firearm sales and enacting additional gun-control measures;
- Establishing a retail cannabis sales framework (no retail sales before January 1, 2027);
- Authorizing a casino gaming referendum for Fairfax County (vetoed by Governor Spanberger).
Against this backdrop, real estate-related legislation moved forward on several important fronts. The following bills were selected for their potential impact on your business and the clients you serve. Unless otherwise noted, each new law is effective July 1, 2026.
Bill numbers link to the full text of legislation on the Virginia Legislative Information System (LIS).
The Realtor® Bills
The following bills were included in the Virginia REALTORS® Statewide Legislative Agenda and were signed by Governor Spanberger following near unanimous or bipartisan passage.
Combating Deed Fraud: Stronger Notary Rules and Property Alerts
HB 163 / SB 316: Passed both chambers unanimously. Funding is included in both the House and Senate budgets.
Building on the year-long statewide workgroup convened following 2025’s deed fraud study legislation, this bill takes direct aim at property fraud and title theft. The law removes the ability of notaries to rely solely on personal familiarity to verify a signer’s identity — all notarial acts now require satisfactory evidence of identification. Notaries must keep records of all notarizations occurring on or after July 1, 2026, documenting the form of ID used. Settlement agents are also now required to obtain satisfactory evidence of the seller’s identity prior to closing. Beginning July 1, 2027, any circuit court clerk’s office with electronic land records must establish a free property alert notification system, automatically notifying enrolled property owners when documents affecting their property are filed. Also, effective July 1, 2027, new notary commission applicants and renewals must complete a training course (to be developed by January 1, 2027) that includes instruction on real estate fraud and financial exploitation of the elderly.
Expanded Homeownership Grants for Government and School Employees
HB 164 / SB 328: Passed with bipartisan support.
This legislation, proposed for the statewide agenda by NVAR, expands the ability of localities to provide homeownership grants to their employees, school board employees, and employees of constitutional officers by removing a statewide cap on the level of support they can provide. (Previously this was capped at $25,000 maximum per employee.) The bill also eliminates the requirement that grants conform to VHDA regional sales price and income guidelines, giving localities far more flexibility to craft programs that respond to their local housing markets and retain essential public employees such as teachers and first responders.
Protecting Homeowners from Roof-Based Insurance Cancellations (Effective January 1, 2027)
HB 677 / SB 402: Passed both chambers unanimously.
Insurers will be prohibited from refusing coverage, canceling, non-renewing, or raising premiums on an owner-occupied dwelling policy solely based on the age or condition of an asphalt shingle roof — a protection that was achieved against significant industry opposition, and one where member engagement through a Call for Action proved decisive in securing unanimous passage. This same legislation also creates the Residential Property Owners Protection Act, establishing consumer protections in residential roofing contracts. Contractors are prohibited from certain predatory advertising and contracting practices, and homeowners may cancel a roofing contract if the Governor declares a state of emergency for their geographic area.
Clarifying Septic System Inspection Standards
HB 1178 / SB 401: Passed both chambers unanimously.
This cleanup bill amends 2025’s septic inspection legislation to resolve practical ambiguities. Changes include modifying the definition of “readily accessible” by limiting the depth of excavation to no more than 30 inches. Clarifies that septic inspectors must submit a written report within 10 business days from the start of the inspection (there was ambiguity whether this was previously upon completion). Requires that the septic report must state whether the system is operating as intended. Removed requirements on septic inspectors to report the MLS-advertised bedroom count or design capacity.
Streamlined Lease Termination for Military Personnel to Conform to Federal Law
HB 174 / SB 325: Passed both chambers unanimously.
Aligning the VRLTA with the federal Servicemembers Civil Relief Act, this bill removes the requirement that military tenants terminating a lease for deployment or PCS orders must provide a termination date no more than 60 days before their departure. Service members now have more flexibility to respond to orders without being penalized under their leases.
Realtor® License Plate Updated to Support Disaster Relief
HB 1339 / SB 204: Passed both chambers unanimously.
The existing Realtor® special license plate is converted from a non-revenue sharing plate ($10 fee) to a revenue-sharing plate ($25 fee). The additional revenue will be deposited to a fund managed by the Virginia Realtors® to benefit disaster relief, providing sustainable long-term support for members and homeowners facing natural disasters.
Review of VREB Licensure Process
SB 613: Passed both chambers unanimously, as amended.
Requires the Department of Professional and Occupational Regulation (DPOR) to conduct a comprehensive review of the current process for obtaining a real estate salesperson license, identify bottlenecks, and report its findings and recommendations by January 1, 2027. This bill was significantly amended from its original form, which would have required immediate process changes in 2026. With concrete data in hand, the goal remains unchanged: get new licensees into the market faster.
Virginia Landlord-Tenant Related Laws
The 2026 session produced one of the most significant packages of landlord-tenant legislation in recent memory, with many changes strengthening tenant protections. Key changes are effective July 1, 2026, unless a delayed effective date is noted.
Virginia Residential Landlord and Tenant Act (VRLTA) Enforcement by Localities
HB 14 / SB 290: Provides that if a condition exists in a dwelling unit that constitutes a material noncompliance by the landlord with the rental agreement or with any provision of law that constitutes a fire hazard or serious threat to the life, health, or safety of a tenant or occupant of the premises, a locality may institute an action on behalf of any tenant or occupant of the premises who is injured by such material noncompliance for injunction and damages to enforce the landlord’s duty to maintain the dwelling unit in a fit and habitable condition.
Extended Notice Period Before Lease Termination for Nonpayment
HB 15 / SB 48: Increases the mandatory waiting period before a landlord can pursue lease termination for nonpayment of rent from 5 days to 14 days after serving written notice on the tenant.
Payment Plans Required Before Eviction (Effective January 1, 2027)
HB 95: Landlords who own more than four rental units must offer a written payment plan to a tenant before terminating a lease for nonpayment if the amount owed is one month’s rent or less (plus any contracted late charges). The plan must allow the tenant to pay in equal monthly installments over the lesser of six months or the remaining lease term. No additional late fees may be charged during the plan period as long as the tenant makes timely payments.
Central Air Conditioning Added to List of Essential Services
HB 519: When supplied by the landlord and operating as of the rental agreement’s effective date, central air conditioning is now an “essential service” under the VRLTA, giving tenants expanded remedies if landlord-provided central A/C fails.
90-Day Rent Increase Notice Required (Effective January 1, 2027)
HB 678: Landlords owning more than four rental units must provide written notice of any rent increase at least 90 days before the end of the lease term. The notice must include a deadline (at least 30 days after delivery) by which the tenant must indicate whether they will renew.
Required Payment Methods and Prohibition on Processing Fees
HB 1005 / SB 313: Landlords must accept rent and security deposits by check and money order. Landlords may not charge tenants fees for submitting payments in excess of the landlord’s actual out-of-pocket processing costs. Landlords may not charge tenants fees for maintenance or repairs unless the repair was caused by the tenant’s violation of the VRLTA.
Stronger Requirements for Unlawful Detainer Notices (Effective July 1, 2027)
HB 1361 / SB 294: No landlord may file or maintain an unlawful detainer action without first providing a proper termination notice. For nonpayment of rent, the notice must include a full accounting of all charges and payments over the tenancy or prior 12 months, including late fees, attorney fees, utility submetering debits and credits, and other contractual charges.
Tenant Dialogue Required Before Fire/Casualty Termination (Effective January 1, 2027)
HB 834: Before terminating a rental agreement due to fire or casualty damage, landlords must first make a reasonable effort to meet with the tenant to discuss alternatives and offer a substantially similar unit if one is available — unless the damage was caused by the tenant’s own failure to maintain the unit.
Pre-Application Disclosures Required (Effective January 1, 2027)
HB 379: Before collecting any payment or information from a prospective tenant, landlords must first provide written notice of key information about the rental application process. Additionally, landlords must use an application to evaluate the applicant for all comparable units they own in the Commonwealth.
Eviction Reduction Program Established
HB 527 / SB 628: A new Eviction Reduction Program is established within the Department of Housing and Community Development to promote housing stability, identify factors contributing to evictions, and provide prevention and diversion interventions statewide.
Tenant Records of Charges and Payments (Effective July 1, 2027)
HB 616: Requires a landlord who owns more than four rental dwelling units, upon written request by a tenant, to within 10 business days provide such tenant a statement containing all charges and payments incurred by the tenant over the duration of the tenancy or the past 12 months, whichever is shorter.
VRLTA Victim of Family Abuse
HB 1408: Removes the requirement that a tenant who is a victim of family abuse provide the landlord prompt notification should the perpetrator return to the dwelling unit to prevent the landlord from terminating a lease solely due to such act of family abuse occurring in the dwelling unit or on the premises by a perpetrator barred from the dwelling unit.
Real Estate and Property Rights
Fair Housing Training Required for Real Estate Appraiser Licensure
HB 170: Applicants for licensure as a certified residential or certified general real estate appraiser must now successfully complete a fair housing and appraisal bias education course approved by the Real Estate Appraiser Board, in addition to passing the required examination.
Settlement Agents Must Notify Buyers of Right to Remove Discriminatory Covenants
HB 39: Settlement agents are now required to notify the purchaser of residential real property of their right to remove any prohibited restrictive covenant (such as racial covenants) identified during the title search.
Assumable Conventional Mortgages in Divorce or Annulment
HB 304: For any conventional home mortgage loan originated on or after July 1, 2026, lenders must include provisions allowing one borrower to assume the other’s share of the mortgage in connection with a divorce or annulment, provided the assuming borrower qualifies for the loan.
Special Commissioner for Localities Conveying Tax Delinquent Property
HB 474: Increases from $75,000 to $125,000 the maximum assessment that an individual parcel of land may be valued at to be subject to a locality’s appointment of a special commissioner to convey property with delinquent taxes or liens to the locality, to the locality’s land bank entity, or to an existing nonprofit entity designated by the locality to carry out the functions of a land bank entity in lieu of sale at public auction.
Right to Petition for Entry to Adjoining Property for Repairs
HB 803 / SB 77: When a property owner needs to access a neighboring property to maintain or repair their own property’s exterior and access is denied, the owner may now petition the circuit court for a limited right of entry. The petitioner must restore the adjoining property to its prior condition and is liable for any actual damages.
Military Installation Added to Buyer Beware Disclosure Statement
SB 577: Proximity to a military ground installation is now a buyer beware item on the Residential Property Disclosure Statement. Buyers are advised to conduct their own due diligence regarding potential noise or other effects of military operations.
New Disclosure Required for Properties in Land Use Tax Programs (Effective January 1, 2027)
SB 649: Settlement agents must provide written notice to buyers of real estate enrolled in a locality’s land use (special assessment) program, advising them of potential liability for roll-back taxes if the land’s use changes after purchase. Buyers must acknowledge receipt in writing.
Comprehensive Review of Residential Property Disclosure Act
HB 1518: The Virginia Housing Commission will convene a stakeholder advisory group to comprehensively review the Residential Property Disclosure Statement — examining required buyer beware items, delivery methods, and statutory language. Findings and recommendations are due to the General Assembly by October 1, 2026.
Planning, Zoning, and Housing Development
Accessory Dwelling Units Allowed in Single-Family Zones
SB 531: All localities must permit accessory dwelling units (ADUs) in single-family residential zoning districts. Permit fees are capped at $500. Localities may not impose setbacks greater than those for the primary dwelling (or accessory structures, whichever is less), nor may they impose conditions more restrictive than those for single-family dwellings with respect to height, lot coverage, or building frontage. Localities also may not require the occupants of an ADU to be related to those in the primary dwelling.
Manufactured Homes Permitted Wherever Site-Built Homes Are Allowed
HB 655 / SB 346: Localities must permit manufactured homes in any zoning district that allows single-family site-built housing. No zoning, land-use, or development regulation may treat manufactured homes more restrictively than site-built dwellings in the same zone.
Localities Must Provide Small-Lot Zoning
HB 1212: Any locality with a population of 50,000 or more must adopt, maintain, and apply at least one zoning district that permits single-family dwellings on lots with a minimum area not exceeding 3,000 square feet.
Housing Development on Religious and Nonprofit Property (Effective January 1, 2027)
HB 1279 / SB 388: Property tax-exempt religious organizations and qualifying nonprofits may develop housing on their land through an administrative approval process — no special use permits or discretionary review required. At least 60% of units must be affordable housing, and the designation must remain for at least 30 years. This provision expires January 1, 2031.
Local Right of First Refusal on Affordable Housing
HB 4: Allows local governments to adopt a program authorizing the right of first refusal to purchase current publicly supported affordable housing, in order to preserve said affordable housing for at least 15 years.
Affordable Housing Expedited Approval
HB 594: Allows a locality, by ordinance, to authorize a zoning administrator to use an administrative process to approve rezoning applications for certain affordable housing developments.
Industrial Development Authorities Producing Housing
HB 806: Allows industrial development authorities to exercise their powers with respect to facilities used primarily for single or multi-family residences to promote safe and affordable housing in the Commonwealth.
Localities Authorized to Adopt Affordable Housing Dwelling Unit Programs
HB 867 / SB 74: Any locality in Virginia may now provide for an affordable housing dwelling unit program through amendments to its zoning ordinance. (Previously limited to specific jurisdictions)
Reduced Parking Minimums Near Transit
HB 888: Localities may not require more than 0.5 parking spaces per unit for multifamily or mixed-use residential development near transit, or more than 1 space per unit for one- and two-family homes and townhouses in those areas. Any locality with a population over 20,000 must also provide an administrative process to reduce parking minimums by at least 20% for residential development on parcels outside designated transit areas.
Localities May Waive Water and Sewer Fees for First-Time Homebuyers
HB 1144: Any locality may fully or partially reimburse water and sewer connection fees for first-time homebuyers of new residential construction. Localities with affordable dwelling unit ordinances may waive such fees entirely for qualifying developments.
Vacant Building Registration Permitted
HB 802: Localities may adopt ordinances requiring owners of buildings continuously vacant for at least three years to register those buildings with the locality annually.
Statewide Housing Development Database to Be Created
SB 666: The Department of Housing and Community Development must collect and publish data from all localities on housing development plans, approvals, and average timelines in a publicly accessible, centralized, machine-readable database.
Property Tax Exemption for Converting Underutilized Structures to Residential Use
SB 181: Localities may provide partial real estate tax exemptions for properties converted from non-residential to residential use, provided at least 30% of units are set aside for households at or below 80% of the area median income, or the building is subject to an affordable housing agreement.
Department of Housing and Community Development Pilot Program to Finance Mixed Income Housing
HB 196 / HB 820 / SB 490: Directs the Department of Housing and Community Development, in collaboration with the Virginia Housing Development Authority, to create a two-year pilot program that would provide loan origination and servicing activities for mixed income housing.
Petition to Review Decision by Local Board of Zoning Appeals
HB 198: Makes various changes and clarifications to the procedures following the filing of a petition in a circuit court by a party aggrieved by a decision of the board of zoning appeals. Clarifies that the petition shall be served upon the secretary or chair of the board of zoning appeals within 30 days after the petition is filed with the clerk of the circuit court and that, within 21 days of being served with the petition, the secretary of the board of zoning appeals shall file the record of the proceedings at issue in the petition. The bill also updates other procedures, such as the time requirements for the filing of responsive pleadings to be consistent with the various changes and clarifications throughout the bill.
Statewide Local Tree Conservation and Replacement
HB 549 / SB 589: Expands certain existing local government authority to plant or replace trees during the development process by expanding such authority statewide. The bill allows localities to establish higher tree canopy replacement percentages based on density per acre.
Data Centers, Solar and Electric Transmission
New Site Assessment Requirements for Data Centers and High Energy Use Facilities
HB 153 / SB 94: Before approving any rezoning, special exception, or special use permit for a new high energy use facility (HEUF), a locality must require the applicant to submit a site assessment examining the sound profile of the facility on nearby residential units and schools within 500 feet. Localities may also require assessment of impacts on water resources, agricultural land, parks, historic sites, and forestland. These requirements do not apply to expansions of 100 megawatts or less at existing approved facilities.
Data Center Generator Emissions
HB 507: Prohibits the Department of Environmental Quality from issuing an air permit for any application submitted for a data center on or after July 1, 2026, unless the emission limit for each engine-generator, defined in the bill, established by such permit is equal to or less than the emissions achieved by a Tier 4 equivalent engine-generator.
Siting of Electric Transmission Lines
HB 889 / SB 497: Provides that in the siting of new electric transmission facilities, it is the policy of the Commonwealth that existing linear infrastructure corridors shall be prioritized over new corridors.
Smart Solar Permitting Platform for Residential Solar
HB 590 / SB 382: Creates the Smart Solar Permitting Platform (the Platform) to serve as a tool for (i) contractors to obtain permits for the construction of streamline-eligible residential solar energy systems and (ii) localities to process applications for such permits. The bill requires the Department of Energy to establish, launch, and administer the Platform by July 1, 2027
New Disclosures and Contracts Required for Residential Solar Installations (Effective January 1, 2027)
HB 1439 / SB 823: Solar installation companies must use written contracts that include detailed information about the system design, performance guarantees, and payment terms, along with mandatory consumer disclosures. Willful violations are subject to a civil penalty of up to $2,500 per violation.
Localities and Landlords Cannot Prohibit Portable Solar Devices
HB 395 / SB 250: Localities may not prohibit residential use of small portable solar generation devices. Landlords may not prevent tenants from installing them in certain circumstances, and utilities may not impose interconnection requirements or fees on these devices. Some provisions take effect January 1, 2027.
Electric Vehicle Charging Stations in Subdivisions (Effective July 1, 2027)
HB 833: Allows a locality to include in its subdivision ordinance a requirement for electric vehicle (EV) supply equipment, EV-ready charging spaces, or EV-capable parking spaces that provide infrastructure to facilitate future EV charging, including electrical capacity, prewiring, and conduit for a development containing commercial, industrial, or multifamily residential uses.
Looking Ahead
This article covers the primary laws effective July 1, 2026. This year, perhaps more than any recent session, many bills contain delayed effective dates, phased implementations, or require agencies to promulgate regulations before full implementation. We have listed these dates in the description but have still included them as “new laws” for this year. Be alert to these timelines as they may apply to your practice — in particular several significant landlord-tenant changes do not take effect until January 1, 2027.
Two budget priorities from the Virginia Realtors® legislative agenda — a proposed capital gains tax freeze on primary residence sales and a first-time homebuyer tax credit — were continued to the 2027 Session as budget negotiations remained unresolved. Both remain active priorities.
While we have tried to capture the new laws impacting the real estate industry, if there are additional new laws or legislation you are interested in, please reach out to the NVAR Government Affairs Team with your questions.
