Transfer of Security Deposits upon the Sale of a Dwelling Unit (HB 1623 - Yancey; SB 991 - Dance)
Codifies common law practice where the tenant in a unit which has been foreclosed on may remain in the unit as a month-to-month tenant until the new owner gives notice of termination. Provides that, until the new owner terminates the month-to-month tenancy, the terms of the terminated rental agreement remain in effect, except that the tenant may pay rent (i) to the new owner; (ii) to the property manager of the owner, if any, or (iii) into a court escrow account.
Provides that the current owner of rental property will transfer any security deposits to the new owner at the time of the transfer of the rental property. If a management agreement exists, this law allows a property manager to transfer the security deposit to the current owner prior to settlement and to provide written notice to the tenants, versus having to obtain the written consent of the owner and tenants.
Licensee Responsibilities - Transfer of Escrow Funds and Foreclosures
(HB 2281-Leftwich; SB 966-Obenshain)
Allows for a written property management agreement to continue in place following a foreclosure on a month-to-month basis until terminated by either the property manager or the new owner, unless a shorter period is provided for in the property management agreement. Provides that if rent is paid to a real estate licensee acting on behalf of the landlord as a property manager in a unit which has been foreclosed on, the managing agent may collect the rent and place it into an escrow account following receipt. In the event of foreclosure, a real estate licensee will not transfer any funds to a landlord whose property has been foreclosed upon.
Allows a property manager who elects to terminate a property management agreement, to transfer any funds held in escrow to the landlord without his consent, provided that the property manager provides written notice to each tenant.
POA Act Amendments (HB 2045-J. Miller; SB 1231-Stanley)
Condo Act Amendments (HB 2274-D. Marshall; SB 1255-DeSteph)
Allows the Common Interest Community Board to assess a monetary penalty for failure to deliver the association disclosure packet or resale certificate within 14 days against any property owners' association or common interest community manager. States that the CIC Board may receive a complaint directly from any person aggrieved by an association's failure to deliver the resale certificate or disclosure packet within the time period required.
Except as expressly authorized in the declaration or condo instruments, no property or unit owners' association can require the use of any for sale sign that is (i) an association sign or (ii) a real estate sign that does not comply with the requirements of the Real Estate Board. An association may, however, prohibit the placement of signs in the common area and establish reasonable rules and regulations that regulate (a) the number of real estate signs so long as at least one real estate sign is permitted; (b) the geographical location of real estate signs; (c) the manner in which real estate signs are affixed to the property; and (d) the period of time after settlement when the real estate signs will be removed.
Prohibits a property or unit owners' association from requiring any owner to execute a formal power of attorney if the owner designates a real estate licensee to represent their clients before the association, and requires the association to recognize such representation if the association is given a written authorization signed by the owner confirming representation.
Clarifies the Condominium Act to provide a right of cancellation if the purchaser has not been notified that the resale certificate will not be available and the resale certificate is not delivered to the purchaser.
Amendments to the Residential Disclosure Act (HB 2034-J. Miller)
Allows for electronic delivery of the form to the potential purchaser. Renames the "red-flag" disclosure statement the "buyer to beware" statement and adds the following buyer to beware statements:
- The owner makes no representations with respect to underlying conservation or other easements.
- The owner makes no representations with respect to an underlying community development authority.