Correction - New Disclosure Statement Required to be Used Effective 1/1/2008

I had previosuly given out a different effective date for this important change to the real estate contracting process in Virginia.

The new form adds very little new disclosure language, and looks far more like the current Disclamer Statement than it does the current Disclosure statement. The Code of Virginia will require Sellers of real property consisting of fewer than 4 residential housing units to make six disclosures about the property prior to accepting any offer to purchase the property. Failure to make the proper disclosures prior to going under contract will give the Purchaser the right to rescind the contract and receive refunds of any deposits. If the disclosure is provided after the contract is ratified, the Purchaser has 3 days to cancel the contract.

What this means is that if you have a contract that was signed before January 1, 2008 and you provided a disclaimer statement, you're done. If you are a realtor with an active listing that hasn't sold yet, and you've already had your client sign a disclaimer form, you have to go back and get them to sign the new disclaimer form after January 1, 2007.

The new law will also supercede our standard form Virginia Jurisdictional Addendum, since paragraph 5 refers back to the old disclaimer disclosure scheme effective prior to January 1, 2008.

A rewritten Paragraph 5 should be available shortly.
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