3.2 Virginia Residential Property Disclosure
Key Takeaways
- Virginia is a 'buyer beware' (caveat emptor) disclosure state under the Virginia Residential Property Disclosure Act (Va. Code § 55.1-700 et seq.).
- Sellers of 1-4 unit residential property deliver a Residential Property Disclosure STATEMENT directing buyers to investigate — Virginia generally does not require a detailed condition checklist.
- Even under caveat emptor, a seller may never actively conceal a defect, commit fraud, or lie when directly asked.
- Federal law requires a lead-based-paint disclosure plus the EPA pamphlet and a 10-day inspection opportunity for homes built before 1978.
- Virginia exempts 'stigma' facts — deaths, prior illness of occupants, and nearby registered offenders — from required disclosure.
Virginia Is a Caveat Emptor State
The Virginia Residential Property Disclosure Act (Va. Code § 55.1-700 et seq.) governs sales of residential property of one to four dwelling units. Unlike many states, Virginia is fundamentally caveat emptor — "let the buyer beware." The seller's primary obligation is to deliver a short Residential Property Disclosure Statement that, in effect, notifies the buyer that the property is sold AS IS and that the buyer should exercise due diligence and obtain inspections. The form is published by the Real Estate Board, and the seller is generally not required to fill out a long defect-by-defect checklist.
Key shift to remember: Older study material described a seller "choice" between a disclosure form and a separate disclaimer. The current statutory model uses a single disclosure statement that itself places the investigation burden on the buyer. Expect the exam to frame Virginia as a disclosure-statement / buyer-beware state rather than a full mandatory-condition-checklist state.
What the Disclosure Statement Tells the Buyer
The statutory statement notifies the purchaser, among other things, that the owner makes no representations about matters the buyer can discover through diligent inspection, and points the buyer to public resources. Topics the statute flags for the buyer to investigate include:
| Area buyer must investigate | Examples |
|---|---|
| Structural / systems | Roof, foundation, HVAC, plumbing, electrical, septic/well |
| Environmental | Lead-based paint, radon, underground storage tanks, mold |
| Location / land use | Zoning, flood zones, military air installations / noise zones, dam break inundation zones |
| Community | HOA/condo assessments and restrictions, special tax districts |
| Records | Sex-offender registry, stormwater and adjacent-parcel uses |
The Hard Limits on Caveat Emptor
Caveat emptor does NOT license dishonesty. A Virginia seller may never:
- Actively conceal a known defect (e.g., painting over water stains, hiding a cracked foundation behind paneling).
- Commit fraud or affirmative misrepresentation.
- Lie when directly asked a specific question about a known condition.
A buyer who proves active concealment or fraud can rescind or sue for damages despite the as-is framing. This distinction — passive silence is generally allowed, active concealment never is — is a favorite exam point.
Timing of Delivery
| When delivered | Effect |
|---|---|
| Before ratification (preferred) | No statutory termination right triggered |
| After ratification | Buyer may have a right to terminate within a set period before settlement |
| Material change before settlement | Statement should be updated |
Delivering the disclosure before the buyer signs avoids giving the buyer a post-ratification cancellation window.
The Licensee's Own Duty to Disclose
Separate from the seller's caveat emptor posture, a licensee owes duties under Real Estate Board regulation (18VAC135-20) and the Brokerage Relationships statutes. A licensee must disclose to all parties any material adverse facts about the physical condition of the property that are actually known to the licensee — even when representing the seller.
| Licensee MUST disclose | Licensee need NOT disclose (statutory exemptions) |
|---|---|
| Known material physical defects affecting value | A death on the property from any cause |
| Known latent (hidden) defects | A prior or current occupant's illness, including HIV/AIDS |
| Known environmental hazards / contamination | The proximity of registered sex offenders (refer buyer to the registry) |
| Known zoning violations or recorded liens | A prior felony committed on the property |
The exemptions exist because Virginia treats those items as non-material to value, and disclosing some (such as disease status) could violate fair-housing protections. A licensee may, and should, direct a curious buyer to the Virginia State Police sex-offender registry rather than answering personally.
Federal Disclosure That Overrides State Law
Federal requirements apply on top of Virginia's caveat emptor regime.
Lead-Based Paint (Pre-1978 Housing)
For any target housing built before 1978, the federal Residential Lead-Based Paint Hazard Reduction Act (Title X) requires the seller and licensee to:
- Provide the EPA pamphlet "Protect Your Family from Lead in Your Home."
- Disclose any known lead-based paint and provide available reports.
- Include the Lead Warning Statement and signatures in the contract.
- Give the buyer a 10-day opportunity to conduct a lead inspection or risk assessment (the buyer may waive it in writing).
Other Federal/Lender Items
| Item | When it matters |
|---|---|
| Flood zone | Lender requires flood insurance in a Special Flood Hazard Area |
| FIRPTA | Foreign seller — buyer/settlement agent withholds tax |
| Radon | Not federally mandated; buyer is encouraged to test |
Worked Scenario
A seller knows the basement floods every spring and paints the walls to hide the staining before listing. Under Virginia caveat emptor the seller had no duty to volunteer the flooding, but painting over it is active concealment — fraud that defeats the as-is defense. If the buyer's agent also knew of the flooding, the agent independently breached the duty to disclose a known material adverse fact. Contrast that with a buyer asking, "Did anyone die here?" — the seller and agent may decline to answer because death is a statutorily exempt, non-material fact.
Exam trap: "As is" protects an honest silent seller; it never protects a seller who hides or lies about a known defect.
Which statement best describes Virginia's residential property disclosure model?
A buyer asks the seller's agent whether a murder occurred in the home. How must the agent handle this under Virginia law?
For a home built in 1965, what does federal law require during the sale?