Section 54.1-2131 of the Code of Virginia states the disclosure obligations of a seller's listing agent to prospective buyers and Section 54.1-2133 states the disclosure obligations of a landlord's agent to prospective tenants. Both sections require disclosure of all “material adverse facts pertaining to the physical condition of the property” of which the listing agent is aware. Effective July 1, amendments to these sections limit disclosure obligations only to matters affecting the physical condition of the land and improvements. The new language specifically says that it does not refer to matters:
1. outside the boundaries of the land or other properties in proximity;
2. relating to governmental land use regulations; and
3. relating to highways or public streets.
However, the new statutes do require that any necessary disclosure be printed either in bold lettering or all capitals, and be underlined or in a separate box.
The printing style requirements in these sections were inadvertently added by the General Assembly’s Division of Legislative Services when re-writing the Code to include the new limited services law. In the case of Section 54.1-2131, VAR asked the VREB to modify the disclaimer form to permit its use by sellers' listing agents to make this disclosure without the printing requirements, but they would not agree.
We will secure removal of these specific printing requirements by emergency legislation in the next General Assembly session, but until then, we recommend that you format disclosures of property condition issues as noted above, whether in a property information sheet you leave at the house, or on a standard form of your own.