Coronavirus Resources and Updates

Virginia REALTORS® is committed to keeping YOU in-the-know with updates and resources regarding the impact of the coronavirus disease (COVID-19) on your business and industry. Keep checking back—this page will be updated regularly with new information.

Important Updates At a Glance

  • Resource Updates. The following categories received significant updates on March 3, 2022. Please review these sections for the latest information:
    • Licensing & DPOR FAQs
    • Government Response and Executive Order FAQs
  • Relief Program Updates. Through a new state program, Virginia Housing administering relief for renters experiencing financial difficulties due to the pandemic. Through the Virginia Rent and Mortgage Relief Program (RMRP), eligible landlords can now apply on behalf of their tenants to receive financial assistance for past-due rental payments dating back to April 1, 2020. For more information and to get started with the application process, visit VirginiaHousing.com/RMRP

COVID-19 & Real Estate

 

Licensing & DPOR FAQs (Updated March 3, 2022)

Q. Is DPOR still open and conducting business?

A. Effective August 2, 2021, DPOR Offices at the Perimeter Center reopened. Visit DPOR’s website for updates regarding their operation.


Q. Where can I find a list of approved online CE classes?

A. Approved online CE classes can be found at the following links:

http://www.dpor.virginia.gov/uploadedFiles/MainSite/Content/Boards/Real_Estate/A490-02CE_CRS.pdf

Sales License CE – https://www.theceshop.com/online-education/virginia/real-estate/sales-license/continuing-education/courses.html

Broker License CE – https://www.theceshop.com/online-education/virginia/real-estate/broker-license/continuing-education/courses.html

 

Government Response and Executive Order FAQs (Updated March 3, 2022)
  • The Virginia REALTORS® government relations team worked with Governor Northam and his team to make sure you are able to continue to work, stressing that we would ensure safe business practices. As COVID-19 numbers continue to fluctuate, Virginia REALTORS® reminds you to practice business safely by following the for protecting workers and limiting the spread of the virus.
  • Through a new state program, Virginia Housing (formerly the Virginia Housing Development Authority) is administering relief for renters experiencing financial difficulties due to the COVID-19 pandemic. Through the eligible landlords can now apply on behalf of their tenants to receive financial assistance for past-due rental payments dating back to April 1, 2020. Funding for RMRP is through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. For more information and to get started with the application process, visit
  • On July 27, 2020, Governor Northam announced $70 million for small businesses and nonprofit organizations whose normal operations were disrupted by COVID-19. The funding will be made available through Rebuild VA, a new economic recovery fund, and grants of up to $10,000 will be awarded.

Q: Are you allowed to hold open houses?

A: Open houses have never been explicitly prohibited in Virginia; however, Virginia REALTORS® encourages you to discuss the potential risks and benefits of an open house with clients, especially when in an area designated as . Some safety precautions you may want to discuss with your clients include:

  • Ensuring that all individuals entering the open house wear appropriate face coverings;
  • Providing clear communication and signage for physical distancing in areas where individuals may congregate, especially at entrances;
  • Limiting the occupancy of physical spaces to ensure that adequate physical distancing may be maintained;
  • Practicing routine cleaning and disinfecting of high-contact areas and hard surfaces;
  • Providing a place for individuals to wash hands with soap and water, or provide alcohol-based hand sanitizers containing at least 60% alcohol; and
  • Posting signage at the entrance, stating that no one with a fever or symptoms of COVID-19, or known exposure to a COVID-19 case in the prior 5 days, is permitted to enter.

Q: Are the requirements that individuals wear face coverings still in place?

A: No, however, the CDC is recommending that all individuals in areas with high COVID-19 community levels wear face coverings, even indoors.


Q: Do you have to provide clients with a face covering?

A: No, there is nothing that requires a business to provide face coverings to clients or customers. If you do provide face coverings, they should be single use to avoid the risk of improper sanitization.


Q: Do buyers need to wear a face covering while viewing a property?

A: If the property is located in an area that the CDC has identified as a , buyers should wear masks when indoors. If the seller has included a requirement to wear masks as part of the showing instructions, buyers and agents should wear masks when entering the property.

Property Management FAQs (Updated April 21, 2022)
  • Evictions Ban Ruling Update. On August 27, 2021, the US Supreme Court overturned the new CDC targeted eviction moratorium. Learn more here.*For information on current protections in place for tenants who cannot pay their rent right now, see our Property Management FAQs below.
  • Form 200 RR – COVID-19 Rules and Regs  (You must be logged in to access this PDF)

Q: What protections are in place for tenants who cannot pay their rent right now in Virginia?

A: During the 2021 Special Session, the General Assembly passed language that continues to restrict evictions through June 30, 2022.

In Virginia, landlords cannot terminate a lease or take action to obtain possession for nonpayment of rent from an eligible tenant except in certain circumstances. A “eligible tenant” is one that has:

  • Qualified for unemployment benefits,
  • Experienced a reduction in household income,
  • Incurred significant costs, or
  • Experienced other financial hardship during or due to the coronavirus pandemic.

Landlords may terminate a lease or pursue possession against an eligible tenant for nonpayment of rent only if:

  • The landlord provides written notice that:
    • informs the tenant of the Virginia Rent Relief Program and
    • provides the website address (https://www.dhcd.virginia.gov/rmrp) and statewide telephone number (211) for the program
    • includes information on how to reach 2-1-1- Virginia to determine whether there are any other available federal, state, and local rent relief programs.
    • informs the tenant that the owner or property manager will apply for rental assistance on the tenant’s behalf within 14 days unless the tenant pays in full, enters a payment plan, or informs the landlord they have already applied for rental assistance.
  • The landlord applies for rental assistance on behalf of the tenant within 14 days of sending the notice unless the tenant pays in full, enters into a payment plan, or notifies the landlord that they have applied for rental assistance.
  • The landlord fully cooperates with the tenant’s application if the tenant has applied for rent relief.
  • Written approval from the rental assistance program is not received within 45 days of the complete application for an initial application or 14 days of a subsequent application.
  • The tenant does not:
    • pay in full,
    • enter into a payment plan,
    • refuses to apply, or
    • refuses to cooperate with the landlord who has applied.
  • The tenant is ineligible for any rent relief programs.
  • There are no more funds available in rent relief programs.

Note that the Virginia REALTORS® Notice of Late Rent templates (available for download in the next section) contain all necessary language.


Additional Requirements for Late Notices

Virginia law now provides additional requirements for late rent notices. We have drafted two separate notices, one for landlords who own four or fewer properties and one for landlords who own five or more properties. You can access them here Updated April 21, 2022:

Property Managers & Their Clients (podcast)

Staff Counsel Jon Haley talks about the impacts on property managers & their clients as a result of the COVID-19 pandemic in our latest Caveat REALTOR® podcast – click here to listen.


Flash Survey

Find out how COVID-19 is impacting property managers and landlords in the Commonwealth by looking at the results from this week’s COVID-19 Flash Survey.

https://www.virginiarealtors.org/2020/04/20/results-from-flash-survey-5-covid-19s-impact-on-property-managers/


Latest Downloads


Q. Do you have to use the Rent Alteration Request and/or the Rent Alteration Amendment?

A. No, both of these forms are optional and are intended to be used when the landlord agrees to some amendment to the monthly rental payments during the pandemic.


Q. How does the Rent Alteration Amendment work?

A. The Rent Alteration Amendment is an amendment to the lease that offers a lot of options. In the first numbered paragraph, the landlord and tenant agree to the period during which the monthly rent will be altered. This includes a specific start and end date. The second paragraph contains two options: a flat-out reduction in monthly rent to a specific amount with the difference being waived; and an option to alter the payments in a number of ways including the frequency of payment, the payment amount, and how any missed rent payments will be made up.

The form also requires the tenant to provide ongoing documentation of their need for adjusted rent and an agreement that if the tenant fails to provide the documentation, or the documentation no longer shows a need for adjusted rent, then normal rent payments will resume at the next monthly rent due date.

The form also includes a statement that any modified rent is accepted with reservation, allowing the landlord to seek back rent in the event that the tenant fails to pay or comply with the agreement.

The form also includes space for additional terms to allow you to customize the agreement to the needs of your tenant and landlord. This field could be used to include what documentation the tenant must provide, allow for a change in frequency beyond weekly or monthly, or other terms agreed to.


Q. What documentation should the tenant provide to document their need?

A. The documentation will vary based on the particular tenant’s circumstances. If the tenant works at a retail business impacted by the Executive Order closures, a letter from their manager or supervisor may suffice; however, if the tenant is an independent contractor or gig worker, documentation showing reduced commissions may be more appropriate. In general, the documentation provided in the initial request should be sufficient to show an ongoing need.


What if the landlord wants to waive rent entirely for some or all of the pandemic?

That should be documented in an amendment to the lease. You can use the Rent Alteration Amendment and put $0 in the adjusted monthly rent field. Alternatively, if the rent is waived for some, but not all, of the pandemic, the period that the rent is waived could be noted in the other terms of the Rent Alteration Amendment form.


Q. Are you, your firm, and/or your agents potentially liable if a tenant contracts COVID-19 after you have conducted some activity in the home (such as conducting a virtual showing or allowing a contractor in to make a repair)?

A. First, we believe that the potential for you to be held liable in such a circumstance is very low. However, to be safe, we have drafted the following “hold harmless” language that you can include in the Additional Terms section of your brokerage agreements.

  • In no event shall Broker, brokerage firm, or any agents or employees of the brokerage firm, be responsible for or liable for any claims arising out of the COVID-19 Pandemic; entry into the property by Invited Parties, any person(s) accompanying an Invited Party, or any agent or third party entering the property on an Invited Party’s behalf; or the availability of the property for showing or inspection. Tenant understands the risks associated with entering properties and/or allowing others to enter their property during the COVID-19 Pandemic. Tenant releases, waives, discharges, and forever holds Broker, the brokerage firm, and its agents and employees, individually and collectively, harmless from and against claims, damages, losses, and suits arising from or in any way connected with the Pandemic. Invited Parties includes, but Is not limited to, potential buyers or tenants, agents, inspectors, contractors, appraisers, or other third-parties related to a real estate transaction.

Q. Do you have to use the hold harmless language? If so, do you need to go back and add this language into brokerage agreements that you’ve already entered into?

A. No, this language is not required. The risk of your liability in this circumstance is very low even without this additional language, but you can add it if it makes you feel safer. As such, you do not need to go back and add this language into previously ratified brokerage agreements or leases.


My tenant did not pay the rent. Can I still file an unlawful detainer? UPDATED 6/25/2020

Beginning on June 29, 2020, you may file an unlawful detainer for nonpayment of rent.


I already filed an unlawful detainer against my tenant for violating the lease and causing a threat to health and safety for other tenants. What happens now? UPDATED 6/25/20

As of June 22, 2020 courts may resume hearing unlawful detainer actions and issuing writs of eviction for matters unrelated to the failure to pay rent. You should check with the clerk of court in your jurisdiction to ascertain the status of your case. If you have questions about whether your court is open, scheduled hearing dates, or any new rules for attending hearings in person, you should contact your General District court.


Q. My tenant’s lease is up, and he was supposed to move out this week or in the coming weeks. They are refusing to leave. What do I do? UPDATED 6/25/2020

A. Property managers should communicate with their owners and consider how you will handle tenant requests. The terms of your lease with the tenant still govern everyone’s rights, obligations, and potential remedies during this national emergency. A tenant who does not vacate may be subject to legal action, but whether a particular landlord is willing to pursue those remedies is ultimately up to that landlord. Beginning on June 22, 2020, you may file an unlawful detainer for reasons unrelated to the nonpayment of rent, such as a tenant becoming a holdover tenant. Beginning on June 29, 2020, you may file an unlawful detainer for nonpayment of rent. Property managers should continue to communicate with their owners and consider how you will handle tenant requests.


Q. Can we conduct a video tour for the walkthrough at the end of the lease?

A. Yes, conducting a video-conference type walkthrough would allow for a tenant who is concerned about potential exposure to COVID-19. If the tenant will be participating in the walkthrough remotely, we suggest you get something in writing, confirming that they prefer to be remote for the walkthrough.


Q. What happens in the case where an order of possession was entered by a court on an unlawful detainer, the 10-day appeal period expired with no appeal being perfected, and a writ of eviction was issued but has not been executed by the Sheriff, prior to the order declaring judicial emergency on March 16th?

A. Please have an honest conversation with your owners about the current situation and with your owners and tenants to identify pragmatic solutions other than eviction for the immediate future as we all deal with the impact of COVID-19. Under Virginia law, an order of possession entered by a judge is good for 6 months from the date of entry by a judge. A writ of eviction is good for 30 days but if the landlord allows a writ of eviction to expire without execution by the Sheriff, the landlord may request additional writs of eviction so long as one is requested prior to the expiration of 6 months from the date of entry by the judge. Allowing an existing writ of eviction to expire does not prevent the landlord from evicting the tenant, in the future, if satisfactory financial arrangements and payments are not made by the tenant with the landlord.


Q. What happens when my tenant cannot afford to keep utilities on pursuant to their obligation under the lease because of this crisis? 

A. Many utility services are offering some sort of limited protection against terminating services during this public health crisis. In addition, the State Corporation Commission issued an order on Monday, March 16, 2020, prohibiting any utility cut-offs for at least 60 days. If tenants have questions on this issue, they should contact their relevant utility provider.


Q. I manage a building with 15 units and have had tenants coming to me asking if anyone in the building has been diagnosed with COVID-19. Can I answer this question? If I know of a verified diagnosis do I have to answer?

A. No. At this time, an active COVID-19 diagnosis is not a required disclosure. A material adverse fact must pertain to the physical condition of the property, not the tenant residing there. There are also privacy issues that would likely prohibit such disclosure.


Q. I am trying to schedule the showing of a rental property, but the current tenant refuses to allow it based on health concerns. What do we do?

A. During this time, it is advisable to look at other options. Perhaps a video walk-through of the property could be used to show to prospective tenants to decrease the amount of people walking through the occupied unit.

The terms of the landlord-tenant relationship, including access to the rental unit, are established through the lease and the provisions in the VRLTA. Most leases have a provision that allows the landlord to bring prospective tenants through the property under specific conditions. It is ultimately up to the landlord discretion to determine whether to push to enforce the provisions or to take another approach. Should the landlord decide to move ahead, it is important to take all appropriate health and safety measures to protect both the current and prospective tenants. Click here to see the recommendations from the Center for Disease Control (CDC).


Q. My current tenant is exhibiting symptoms of COVID-19 and/or has been diagnosed. What responsibilities does the tenant have? What responsibilities does the landlord and/or the property manager have?

A. A sick tenant is responsible for taking all advised health and safety measures to maintain the property – including cleaning, sanitizing and the like – as the tenant would do with any similar illness. Though the condition of a property based on the current tenant’s illness may not be the landlord’s responsibility, the landlord may be responsible for cleaning and sanitizing the property for a future tenant. Again, click here see the recommendations from the CDC.


Q. We are closing down our property management office to the public for the next four weeks and would like to require all tenants to pay their rent online from now on. Can we do that?

A. If your lease or rules and regulations already allow this, then yes. Under the VRLTA, you can adopt a policy or rules and regulations to implement such a procedure. You should be aware that there will be tenants who do not have internet access (and can no longer go to a public place to obtain it) or the ability to do online banking. Accommodations should be made for these tenants such as a dropbox in a central location.


Q. As a property manager, what is my responsibility to clean a unit before a new tenant moves in? Can the tenant require that I clean to a certain standard? What if I know the previous tenant was infected with COVID-19?

A. While there may be emergency standards established by a state government agency, none exists at the present time.  It is important to use an accepted industry standard. Click here to see the recommendations from the CDC.


Q. I have repairs and routine maintenance that need to be done on my rental dwelling units, but my vendors are backing out and tenants are nervous about letting people into their apartments. What do I do?

A. This is a good place to be proactive. If you do not have your own maintenance/repair professionals on staff, reach out to your third-party vendors now and see what their company policies are with respect to whether they will continue to work in the coming weeks. Line up a back-up plan as needed. Communicate with your vendors about what their health and safety protocols are so that if the tenant asks, you can provide that information. If you have a tenant that is refusing vendor access, work with the tenant as much as possible to postpone routine scheduled maintenance or stabilize the repair as needed.


Q. How do I apply for back-rent or additional rental assistance?

A. The program is being administered through the Department of Housing and Community Development (DHCD). Housing providers can access the application and find out more information on the DHCD RRP website or the Housing Virginia Landlord Website.

Events Updates

We hope you’ll make plans to join us for both our in-person and virtual events. Be sure to check out our schedule and find some options that work for you.

Sales Tips & Suggestions (Updated March 3, 2022)

Social Media Advertising

Staff Counsel Jon Haley discusses social media advertising during the COVID-19 pandemic in our latest Caveat REALTOR® podcast – click here to listen.


Sales Tips & Suggestions

  • Talk to your clients about what their concerns are. Are they part of the vulnerable population? Do they have someone who is vulnerable living with them or that they interact with on a regular basis (and therefore they want to limit their exposure)? What are their priorities? What accommodations can/should you make to help them with the transaction?
    • If the seller is concerned about exposure or is self-quarantining because of exposure or illness, discuss possible alternatives to an open house, such as you hosting online sessions where you walk through the house using video and answering questions for potential buyers. Alternatively, look at your MLS rules and consider changing the status of the listing to allow showings by appointment only or even to stop showings until a later date. Talk to the seller about whether to accept back up offers in the event that the buyer cannot perform due to complications related to the pandemic.
    • If a buyer is concerned about exposure, talk to them about the possibilities of you using Facetime or another video-telephone option where you can “show” them the property while they stay home. Talk to the buyer about what is and isn’t required by the contract, especially related to access to the property and the property condition at settlement. If your buyer wants or expects a deeper cleaning, that is something that likely needs to be specified in the contract itself.
    • Talk to all clients about what could happen if the other side cannot move at Settlement, or if there are larger industry impacts (courts closing, delays with lenders or other providers due to diminished staff). Consider an addendum to the contract that delays settlement and/or essentially “pauses” the contract (and all contingency deadlines) for a number of days.
  • Talk to your settlement provider – are they able to do remote settlements? What plans do they have in place to protect your clients?
    • You want to have early and frequent communications with your settlement agent to know what their plans are and what, if any, hiccups they may see coming down the road.
  • One thing to keep in mind – communication with your clients and agents on the other side of the transaction can do a lot to help manage expectations and keep transactions moving smoothly.
Housing Market Impacts

For information on housing market conditions in Virginia, visit our Research & Statistics webpage.

Broker-Specific FAQs (Updated March 3, 2022)

Q. Are you, your firm, and/or your agents potentially liable if someone contracts COVID-19 after you have conducted some activity in the home (such as showing it to a prospective buyer or attending a home inspection)?

A. First, we believe that the potential for you to be held liable in such a circumstance is very low. However, to be safe, we have drafted the following “hold harmless” language you can include in the Additional Terms section of your brokerage agreements.

In no event shall broker, brokerage firm, or any agents or employees of the brokerage firm, be responsible or liable for any claims arising out of the COVID-19 pandemic; entry into the property by invited parties, any person(s) accompanying an invited party, or any agent or third party entering the property on an invited party’s behalf; or the availability of the property for showing or inspection. Client understands the risks associated with entering properties and/or allowing others to enter their property during the COVID-19 pandemic. Client releases, waives, discharges, and forever holds broker, the brokerage firm, and its agents and employees, individually and collectively, harmless from and against claims, damages, losses, and suits arising from or in any way connected with the pandemic. Invited parties includes, but are not limited to, potential buyers or tenants, agents, inspectors, contractors, appraisers, or other third parties related to a real estate transaction.


Q. Are you, your firm, and/or your agents potentially liable if a tenant contracts COVID-19 after you have conducted some activity in the home (such as conducting a virtual showing or allowing a contractor in to make a repair)?

A. First, we believe that the potential for you to be held liable in such a circumstance is very low. However, to be safe, we have drafted the following “hold harmless” language that you can include in the Additional Terms section of your brokerage agreements.

  • In no event shall broker, brokerage firm, or any agents or employees of the brokerage firm, be responsible for or liable for any claims arising out of the COVID-19 pandemic; entry into the property by invited parties, any person(s) accompanying an invited party, or any agent or third party entering the property on an invited party’s behalf; or the availability of the property for showing or inspection. Tenant understands the risks associated with entering properties and/or allowing others to enter their property during the COVID-19 pandemic. Tenant releases, waives, discharges, and forever holds broker, the brokerage firm, and its agents and employees, individually and collectively, harmless from and against claims, damages, losses, and suits arising from or in any way connected with the pandemic. Invited parties includes, but are not limited to, potential buyers or tenants, agents, inspectors, contractors, appraisers, or other third parties related to a real estate transaction.

Q. Do you have to use the hold harmless language? If so, do you need to go back and add this language into brokerage agreements that you’ve already entered into?

A. No, this language is not required. The risk of your liability in this circumstance is very low even without this additional language, but you can add it if it makes you feel safer. As such, you do not need to go back and add this language into previously ratified brokerage agreements or leases.


Q. Is DPOR waiving the requirement that funds must be deposited into an escrow account within 5 business banking days?

A. No, there have been no changes to the laws and regulations related to depositing escrow funds. Because the regulations require money to be deposited within 5 business banking days of receipt, unless otherwise agreed to by the purchaser and seller, we suggest you make sure that your contract (or COVID-19 Addendum) addresses this. For example, the Virginia REALTORS® Contract says that the real estate licensee will deposit the EMD within 5 business banking days of receipt. This means that if you never receive the check (because the buyer isn’t able to send it or your office is closed), you are OK. Additionally, if you use the Virginia REALTORS® COVID-19 Addendum, it allows the parties to press “pause” and extend ALL deadlines until the COVID-19 condition is over. This means that if you do have the check and suddenly are not able to deposit the check into your escrow account, your client can send notice to the other side to pause all deadlines and give you more time to get the EMD deposited. If you are able to deposit the check, using mobile banking or another method, you should certainly do so, as it will make keeping track of everything and getting your business up and running that much smoother once things return to normal.

If you are using a different contract or COVID-19 addendum, you will need to look at the language in your contract and addendum to see if it addresses EMD or not. Reach out to your forms provider to see if they have additional language you can use in the event that the contract or addendum do not address this issue.


Q. Where can I find information on employees teleworking?

A. The Department of Labor has guidance on wage and pay requirements for hourly and full-time employees that come to your office or work from home here: https://www.dol.gov/agencies/whd/flsa/pandemic


Q. Where can I find NAR’s guidance documents along with hot topics about how the industry is changing due to the coronavirus (COVID-19)?

A. NAR has a coronavirus landing page. Click here to view.


Q. As an employer, where can I find more resources and guidance for employers?

A. NAR has released Coronavirus Resources and Guidance for Employers. The Virginia Department of Labor & Industry has also created.


Q. Where can I find CDC guidance for businesses and employers?

A. The Centers for Disease Control and Prevention has provided guidance.


Q. Will Virginia REALTORS® release forms language to assist with new and pending transactions?

A. Yes, Virginia REALTORS® has created a new COVID-19 Addendum (Form 600 COVID) that can be used in existing and new transactions.


Q. Do you have suggestions for budget-friendly and easy-to-use video conferencing options?

A. There are many options for online video conferencing. We suggest you take a look at ZoomGoToMeeting, or FreeConference.


Q. If I have IT issues and can’t get a tech to come out, are there other alternatives?

A. Yes. Virginia REALTORS® offers a free Tech Helpline service offering support for hardware, software, networking, and digital devices. Call 1-800-276-4216.

 

 

Sales FAQs (Updated March 3, 2022)

Q. Are you, your firm, and/or your agents potentially liable if someone contracts COVID-19 after you have conducted some activity in the home (such as showing it to a prospective buyer or attending a home inspection)?

A. First, we believe that the potential for you to be held liable in such a circumstance is very low. However, to be safe, we have drafted the following “hold harmless” language that you can include in the Additional Terms section of your brokerage agreements.

In no event shall Broker, brokerage firm, or any agents or employees of the brokerage firm, be responsible for or liable for any claims arising out of the COVID-19 Pandemic; entry into the property by Invited Parties, any person(s) accompanying an Invited Party, or any agent or third party entering the property on an Invited Party’s behalf; or the availability of the property for showing or inspection. Client understands the risks associated with entering properties and/or allowing others to enter their property during the COVID-19 Pandemic. Client releases, waives, discharges, and forever holds Broker, the brokerage firm, and its agents and employees, individually and collectively, harmless from and against claims, damages, losses, and suits arising from or in any way connected with the Pandemic. Invited Parties includes, but Is not limited to, potential buyers or tenants, agents, inspectors, contractors, appraisers, or other third-parties related to a real estate transaction.


Q. Do you have to use the hold harmless language? If so, do you need to go back and add this language into brokerage agreements that you’ve already entered into?

A. No, this language is not required. The risk of your liability in this circumstance is very low even without this additional language, but you can add it if it makes you feel safer. As such, you do not need to go back and add this language into previously ratified brokerage agreements or leases.


Q. What can I do to protect myself if a buyer or tenant wants to write an offer on a property without viewing it in person?

A. Virginia REALTORS® offers a “Sight Unseen” form that can be used if you have a buyer or tenant who wishes to write a contract or lease on a property they have not visited themselves. These forms have the buyer (600J) or tenant (200A) acknowledge that they have not been to the property, that pictures may be misleading, and they understand the risks associated with writing a binding contract on the property. These forms are available in the Virginia REALTORS® Forms Library and can be used even if a virtual tour is available.


Q. Will Virginia REALTORS® release forms language to assist with new and pending transactions?

A. Yes, Virginia REALTORS® has created a new COVID-19 Addendum (Form 600 COVID) that can be used in existing and new transactions.


Q. Can I use the Virginia REALTORS® COVID-19 Addendum with a non-Virginia REALTORS® sales contract?

A. Yes, but check that capitalized terms (such as Settlement Date and Deposit) do not have different meanings in your contract. If there are differences, you can clarify any issues in the “Additional Terms” section by stating that “As used in this Addendum, Deposit means Earnest Money Deposit in the Contract”. Use of “Buyer” instead of “Purchaser” is not an issue since the form begins with defining that person.


Q. Is the Virginia REALTORS® COVID-19 Addendum mandatory?

A. No, like any other contingency, this document is not mandatory; however, getting this addendum signed early will help protect both parties should issues arise later in the transaction.


Q. What should I say if my seller asks why they should agree to the COVID-19 Addendum?

A. We have received a number of hotline questions from listing agents who have sellers that are impacted. (They can’t close on their next house, they are now subject to quarantine, etc.) This form protects both parties by essentially pressing “pause” on the transaction for a period of time while things get figured out. While the form includes default timelines for the length of the “pause” and how long the “pause” can last in total, there are blanks that allow the parties to change those defaults to suit their needs.


Q. Remote Notarization – What is it?

A. Virginia law allows for remote online notarization. Remote notarizations allow an electronic notary to use the internet to notarize a document. Though there are certain requirements and it is a different experience than a traditional face-to-face closing, this is a great example of things we can be utilizing, as an industry, to help do our part to flatten the curve.

If you are an agent, talk to your broker about whether or not they know of your settlement companies or closing attorneys utilize it. If you are a broker, ask your settlement company or closing attorney.


Q. Can I refuse to show houses to someone who has been in an area with higher numbers of COVID-19 cases?

A. NAR has provided guidance that says you may ask all clients and potential clients if they have traveled recently or are showing signs of respiratory illness; however, you want to make sure that you ask ALL individuals the same question. Refusing to engage with a client or potential client who may be at risk could lead to a potential fair housing complaint. If you are concerned about exposure, you can always take additional precautions if your client has recently traveled to a location where there is higher risk of exposure.


Q. Can my seller refuse to allow access to their house?

A. It depends. If the house is not under contract, the seller can restrict access to their house, but it needs to be done in a uniform manner to prevent fair housing allegations. If your seller has concerns about exposure to Coronavirus, consider withdrawing the property or check your local MLS rules regarding no access to listed property. If the house is already under contract, the seller must allow access as called for in the contract. This typically includes inspectors, appraisers, and a few others. The seller does not have to grant access beyond what is called for in the contract (for example, the seller does not have to allow the buyer into the property to measure for furniture or drapes unless specifically stated in the contract).


Q. Can my seller demand I hold open houses?

A. This will depend on the terms of your listing agreement. The Virginia REALTORS® Listing Agreement (Form 400) does not specifically require the broker to hold open houses. Form 400 says the broker will “make commercially reasonable efforts” to obtain a buyer and that the seller authorizes the broker to “take all appropriate action to bring about a sale of the property.” If you are using a different form or have added language that says you will hold open houses, you will need to abide by the agreement.


Q. Can a buyer (or seller) terminate a contract because of Coronavirus?

A. There is nothing in the Virginia REALTORS® Sales Contract (Form 600) that would give either party the right to terminate because of Coronavirus. It is possible that the contract may be terminated under a different provision – for example, if a HOA office is closed and cannot provide the HOA packet, the buyer would be able to terminate.


Q. What happens if a buyer is unable to attend settlement because they are quarantined?

A. If the settlement agent is able to perform electronic (remote) settlements, settlement can still occur, even if the buyer is not able to be there in person. Speak with your settlement service provider about how this could impact your transaction.


Q. What happens if a seller cannot move out of the house because they are quarantined?

A. As soon as you become aware that this is a possibility, both agents should talk to their clients about the possibility of a post-settlement occupancy agreement. If a seller is under medically required quarantine, it’s unclear how courts would rule about the contractual obligation to deliver possession at settlement.


Q. Does the seller have to do a deeper clean when they move out, prior to settlement?

A. Most contracts in Virginia require the seller to deliver the property in “broom clean” condition. Without additional language in the contract, there is currently no requirement that the seller do any further cleaning before delivering possession of the property. If the buyer would like a deeper cleaning of the property, that should be negotiated and included as a term of the contract.


Q. If I hold an open house and someone who is sick comes through, am I liable if my seller or another person coming through the house gets sick?

A. It is unlikely that you will liable if someone gets sick from an open house. You can limit your risk by not holding an open house if the seller has been exposed or is showing symptoms of illness; asking people who attend the open house if they have been exposed or are showing symptoms of illness to take precautions or attend a different day or virtually; and reminding everyone to take precautions to limit their exposure and exposure of others.


Q. What can I do to minimize risk while holding an open house?

  • Have all individuals who enter immediately wash their hands or use hand sanitizer.
  • Have lots of extra pens and allow each person who signs in to use one pen that they then keep or you sanitize before another person uses.
  • Ask people for their names and contact information that you write down or record on your electronic device
  • Open all doors prior to the start of the open house so that people can walk around the house without touching door knobs
  • Have paper towels near sinks in the event someone wants to turn a sink on/off.
  • Restrict the number of people in the house at any given time to ensure that people can maintain the recommended 6 foot distance

Q. What if a buyer cannot get inspections during the inspection period because he or she is unable to schedule a qualified inspector? Or if a home owner is unable to get contractors to make the negotiated repairs?

A. Speak with your client about this possibility that home inspectors may be unwilling or unable to perform inspections during this period or that contractors may be unwilling or unable to perform repairs. Work that language into your offer, or, if you are already under contract, work with the parties to negotiate an amendment to the Home Inspection Contingency Addendum.


Q. What if a buyer can no longer obtain financing because of changes in income or employment?

A. The contract addresses what happens when the seller cannot obtain financing in the financing contingency and does not provide an exception for unemployment due to a pandemic.

 

Forms FAQs (Updated March 3, 2022)

Using the Virginia REALTORS® COVID-19 Sales Addendum

We’ve gotten a number of questions about the differences between the Virginia REALTORS® COVID-19 Addendum and the addenda created by other forms providers, so we’d like to answer some of the most common ones.

We want to start by saying that, under normal circumstances, we don’t encourage the mixing and matching of addenda with contracts written by different forms providers; however, in the current COVID-19 environment, our highest priority is protecting the interests of your clients. Because the various addenda being created do a few different things, we encourage you to use the one that best addresses your clients’ circumstances.

Below, we provide guidance that is specific to the COVID-19 addenda that are being released by the various forms providers.


Q. Do you have to use an addendum?

A. No, but if your client has concerns, have them speak with an attorney. An addendum addressing the uncertainty created by the COVID-19 pandemic will help the parties to understand their rights and options under the contract as this situation continues to evolve.


Q. What happens if you don’t use an addendum or one party refuses to sign an extension or addendum?

A. Without the addendum, the parties remain obligated to perform under the contract as written. It is possible that one party could allege that the non-performing party is in default of the contract; however, Virginia contract law has a concept called “impossibility.” Essentially, if it becomes impossible for one party to complete their end of the bargain through no fault of their own, they will not be obligated to complete the contract.


Q. If you are already protected by contract impossibility, why do you need an addendum?

A. While the common law often provides answers for most situations, it involves going to court to fight over issues that can often be addressed more easily in the contract. Additionally, using an addendum allows the parties to set expectations and agree to certain terms up front, including the ability to terminate the contract at some point. If you rely on the concept of impossibility, the status of the contract, and the property, could remain in limbo for weeks or even months. Additionally, the EMD will have to be held in escrow until there is a signed release or a court order, meaning the buyer’s money could be tied up for months.


Q. Do you have to use one of the addenda created by an association?

A. While the law doesn’t require you to use a particular form, be aware that most E&O insurance policies will only cover transactions that use forms drafted by an attorney or trade association. Before you draft language yourself, make sure you talk to your broker and check your E&O policy. Additionally, drafting significant language for a transaction starts to cross the line into practicing law without a license.


Q. What does the Virginia REALTORS® Addendum do?

A. The Virginia REALTORS® Addendum works to keep the contract alive. It can be signed when the contract is ratified as part of the initial contract or after contract ratification in the event that an issue arises later. The Virginia REALTORS® Addendum creates a mechanism where, should a complication related to COVID-19 arise, either party can send written notice to the other, essentially hitting the “pause” button on everything in the contract until a set number of days after the triggering event ends. There is also a maximum number of days the contract will be paused before either party can terminate the contract. Finally, it allows for either party to terminate the contract if the COVID-19 condition extends beyond an agreed upon number of days.

 

COVID-19 Sales Contract Addendum

Addendum for sales contracts incorporating the impact of COVID-19 on real estate transactions. NOTE: You must be logged in to access this PDF.

COVID-19 Addendum
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