Residential rental property. (SB966)

Introduced By

Sen. Mark Obenshain (R-Harrisonburg) with support from co-patrons Sen. Lynwood Lewis (D-Accomac), and Sen. Monty Mason (D-Williamsburg)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Residential rental property. Provides that if a residential dwelling unit is foreclosed upon and there is a tenant living in the dwelling unit at the time of the foreclosure, the foreclosure shall act as a termination of the rental agreement by the landlord. The bill allows the tenant to pay any rent that may be due prior to the date upon which the tenancy will terminate (i) to the successor landlord; (ii) to the managing agent of the landlord or successor landlord, if any; or (iii) into a court escrow account pursuant to the provisions of 55-225.12. The bill also provides that, if there is in effect at the date of the foreclosure sale a written property management agreement between the landlord and a real estate licensee licensed pursuant to the provisions of 54.1-2106.1, the foreclosure shall convert the property management agreement into a month-to-month agreement between the successor landlord and the real estate licensee acting as a managing agent, except in the event that the terms of the original property management agreement between the landlord and the real estate licensee acting as a managing agent require an earlier termination date. The bill permits a real estate licensee acting on behalf of a landlord client as a managing agent who elects to terminate the property management agreement to transfer any funds held in escrow by the licensee to the landlord client without his consent, provided that the real estate licensee provides written notice to each tenant that the funds have been so transferred. The bill provides immunity, in the absence of gross negligence or intentional misconduct, to any such licensee acting in compliance with the provisions of 54.1-2108.1. The bill clarifies that a tenant residing in a dwelling unit that has been foreclosed upon is eligible to file an assertion pursuant to 55-225.12 and that a court may order any moneys accumulated in escrow to be paid to the successor landlord or the successor landlord's managing agent, if any. Finally, the bill requires a current owner of rental property who has entered into a written property management agreement with a managing agent and who has subsequently entered into a purchase agreement with a new owner to give written notice to the managing agent requesting payment of security deposits to the current owner prior to settlement with the new owner. The bill requires the managing agent to transfer the security deposits to the current owner and provide written notice to each tenant that his security deposit has been transferred. Read the Bill »


Bill Has Passed


01/03/2017Prefiled and ordered printed; offered 01/11/17 17102231D
01/03/2017Referred to Committee on General Laws and Technology
01/10/2017Impact statement from DPB (SB966)
01/30/2017Reported from General Laws and Technology with substitute (15-Y 0-N) (see vote tally)
01/30/2017Committee substitute printed 17104907D-S1
02/01/2017Impact statement from DPB (SB966S1)
02/01/2017Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/02/2017Read second time
02/02/2017Reading of substitute waived
02/02/2017Committee substitute agreed to 17104907D-S1
02/02/2017Engrossed by Senate - committee substitute SB966S1
02/02/2017Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/02/2017Passed Senate (40-Y 0-N) (see vote tally)
02/06/2017Placed on Calendar
02/06/2017Read first time
02/06/2017Referred to Committee for Courts of Justice
02/08/2017Reported from Courts of Justice (21-Y 0-N) (see vote tally)
02/10/2017Read second time
02/13/2017Read third time
02/13/2017Passed House BLOCK VOTE (97-Y 0-N)
02/13/2017VOTE: BLOCK VOTE PASSAGE (97-Y 0-N) (see vote tally)
02/14/2017Bill text as passed Senate and House (SB966ER)
02/14/2017Signed by Speaker
02/15/2017Signed by President
02/15/2017Impact statement from DPB (SB966ER)
02/15/2017Enrolled Bill Communicated to Governor on 2/15/17
02/15/2017G Governor's Action Deadline Midnight, February 22, 2017
02/20/2017G Approved by Governor-Chapter 67 (effective 7/1/17)
02/20/2017G Acts of Assembly Chapter text (CHAP0067)