Venturing into the real estate market in Virginia? Before making this important purchase, take time to figure out what you can afford, the ideal neighborhood, and what features you need or want in a home. Also be aware of state-specific legal rules and issues, such as what goes into a Virginia purchase and sale agreement.
With proper preparation, careful choice of a real estate agent, and prudent use of other professionals, buying a home in Virginia can be a great experience.
Before buying a house, condo, townhouse, or other home in Virginia, it's wise to contact a real estate agent. A good agent can help you at every step, from drafting your written offer and negotiating with the seller on price and other key terms to coordinating the escrow process and house closing.
Your real estate agent should also help you locate other professionals to assist you in the homebuying process, including mortgage brokers and home inspectors.
Fortunately, working with a real estate agent won’t cost you anything. The seller usually pays the entire real estate commission (typically 5% to 6% of the house sale price, split between the seller’s agent and yours).
Personal referrals from other home buyers are usually the best way to select a real estate agent. Check to make sure the agent you're considering is licensed, at the Virginia Department of Professional and Occupational Regulation License Search. Other useful resources include Zillow and Trulia, which offer customer reviews of real estate agents.
Virginia seller disclosure requirements are more limited than in other states, many of which require sellers to provide details on defects in the property. Virginia’s main disclosure statute (Code of Virginia Section 55-519) mostly requires sellers to alert buyers that it's their responsibility to check out the condition of the property for sale.
For details, see the Residential Property Disclosure created by the Virginia Department of Professional and Occupational Regulation.
However, there are a few additional specific disclosures sellers must make:
Also, sellers must disclose if the property has a septic system needing repair but the owner has obtained a waiver from the Virginia Board of Health (Code of VA 32.1-164.1:1). And sellers “may” disclose the fact their property is in “a designated tourism activity zone” (Code of VA 55-519.3).
Certain types of sales (such as newly built homes) are exempt from state disclosure rules. (Code of VA 55-518.)
In addition to state-required disclosures, sellers of houses built before 1978 must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website for details.
Given the limits of seller-required disclosures in Virginia, many buyers arrange for an independent home inspection, and make their offers contingent upon being satisfied with what's revealed in the inspection report.
The inspector's report should identify problems such as:
Few buyers cancel a sale over repair needs. More often, the response is to negotiate with the seller for repairs to be made before the closing or for the seller to credit money in escrow so that the buyer can later make the repairs; or else to agree on a price reduction.
A purchase agreement is a legal document containing the main terms and conditions of your real estate transaction. It must be in writing and signed by the parties (buyers and sellers) to form a contract. At a minimum, it will include an offer to sell or purchase, an acceptance of the offer, the sale price, and an adequate description of the property.
Your real estate agent will have a standard form you can use.
Assuming you're taking out a loan, your mortgage companies will likely require you to purchase a title insurance policy. This protects your title to the property against adverse claims by third parties or "clouds" on the title missed by the preliminary title search (done in advance of issuing the policy).
The title company searches public records and other sources for any liens, easements (such as the utility company’s right to access part of the property), or other encumbrances or title restrictions that may affect your ownership or rights to use the property. If the title search locates problems, insist that the seller correct these as a condition to closing.
Unlike some states, Virginia does not require that buyers involve a lawyer in the house-buying transaction. Even if it’s not required, you may decide to engage a lawyer at some point in the process—for example, if you are buying property in a planned unit development with extensive CC&Rs that need reviewing, or you are purchasing a house jointly with others and need help structuring your co-buyer agreement. Or, you may want a lawyer’s help if problems show up during escrow or the house closing.
