Q: I recently had a listing under contract that was terminated because a VA appraisal was several thousand dollars under the contract price. I now have two new offers to present to my client, both of which are also VA financing. Am I required to disclose to the new offerors the value of the prior appraisal?

A: No. Virginia Code section 54.1-2131 requires that you “treat all prospective buyers honestly” and to “not knowingly give them false information.” Additionally, a licensee working for a seller is required to “disclose to prospective buyers all material adverse facts pertaining to the physical condition of the property which are actually known by the licensee.” A prior appraisal value does not necessarily pertain to the physical condition of the property. However, if the prior appraisal was lower than the previous contract price because of a material adverse fact pertaining to the physical condition of the property, you would need to disclose that condition.

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