*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS^® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.

Q: “What updates did the Standard Forms Committee make to clarify the new Residential Purchase Contract?”

A: The Virginia REALTORS^® Standard Forms Committee wants to thank those who have submitted feedback to our forms, specifically the new Residential Purchase Contract. We encourage all of our members to submit their feedback, preferably through forms@virginiarealtors.org . Doing so ensures that your comments and suggestions are seen by the Committee.  

The Standard Forms Committee in their latest meeting took up for review some key terms which were causing some confusion among our members. The Committee made some changes to the contract language to clearly reflect the original intended meaning. These changes will be on your favorite forms provider on July 1st, 2026. However, we will publish the language changes here if you would like to use it now. 

The first change is to the walkthrough verification (Paragraph 4.E.). It will read: 

E. Walkthrough Verification. Seller warrants all appliances, heating and cooling equipment, plumbing, including septic system, and electric systems will be substantially in the same working condition as they were on the date of ratification, excluding __________________________________________________________________________ 

Seller will allow Buyer access to the Property to conduct a pre-settlement verification no more than _____ days prior to the Settlement Date, to ensure the condition of the Property is substantially the same as it was at   ratification OR Date of the Home Inspection and any agreed upon repairs have been completed. 

The following language will be completely removed: 

If there is damage or changes requiring repair that have occurred to the property since ratification the Buyer will have the right to: (i) require the Seller to correct the damages prior to Settlement, (ii) negotiate a suitable remedy with the Seller; or (iii) terminate the Contract. 

The reasoning for these changes is it is the seller’s duty to deliver the property in substantially the same condition as either of the checked options. If the property is not in substantially the same condition, then the seller may be in breach. Rather than attempting to capture every single possibility, the remedy is left for the buyer and seller to hammer out giving more flexibility rather than trying to box in every single possibility.  

The next change is in the settlement paragraph, specifically 7.B. The changed language is in bold text.   

B. At Settlement, Seller will deliver the deed as agreed to in this Contract, an affidavit to Buyer and Buyer’s insurance companies as to parties in possession, lack of mechanic’s liens, and that any materials or labor which may cause a mechanics lien to the Property have been paid, any applicable non-foreign status and state residency certificates, and applicable IRS 1099 certificates. 

The reason for this change is to ensure that all materials and labor which may trigger a mechanics lien have been paid. This ensures that the seller is aware that he has paid his contractors and if the seller forgets, then the buyer has a legal remedy against the seller.  

Again, these changes will go live on July 1, 2026. As always if you have any questions, please reach out to us through the Virginia REALTORS^® Legal Hotline.