Real Estate Transactions in Virginia (OLD EDITION)

Publication Date: 2012 (View new edition.)
Electronic Forms: 84
Available Formats: Print (1,306 pages, looseleaf, 2 volumes, forms CD)
Product #: 880

Information

PLEASE NOTE: A 2015 edition of this publication is available in print, CD, USB flash drive, and immediate download. Click here for newest edition.

This two-volume handbook covers a broad spectrum of issues that must be addressed by any real estate practitioner, ranging from the simplest purchase transactions to the most complex zoning issues.

From the moment a client arrives seeking your advice and assistance to negotiate a purchase contract through the day the sale closes, this book presents a comprehensive treatment of the opportunities and challenges that must be considered to bring the transaction to a successful conclusion. Would your client benefit from choosing a like-kind exchange rather than a straight sale and purchase of another property? How do you handle problems that exist in the chain of title? What are the expectations of the title insurance company? What documentation is required for a commercial loan? Can your client opt out of the terms of an existing proffer that affects multiple tracts beside her own?

With checklists, practical expert advice, and suggestions or forms for almost any contingency, this handbook will let you take your practice to a new level of competency.

Table of Contents

PLEASE NOTE: A 2015 edition of this publication is available in print, CD, USB flash drive, and immediate download. Click here for newest edition.

TABLE OF CONTENTS (2012 Edition)
Chapters and Authors 
Acknowledgments
About the Editors and Authors
Preface


CHAPTER LIST
1. Ethical Considerations
2. Residential Real Estate Contracts
3. Commercial Real Estate Contracts
4. Mechanics’ Liens
5. Title Examinations
6. Title Insurance
7. Survey Basics
8. Forms Of Holding Title
9. The Deed
10. Residential Financing
11. Commercial Loan Documentation
12. Residential Closings
13. The Uniform Commercial Code
14. Opinion Letters In Real Estate Transactions
15. Like-Kind Exchanges Under I.r.c. § 1031
16. Planning And Zoning
17. Real Estate Brokerage Law
18. Condominiums And Property Owners’ Associations
CHAPTER 1: ETHICAL CONSIDERATIONS   (back to top)

1.1 INTRODUCTION

1.2 ACQUIRING CLIENTS
        1.201 Communications
        1.202 Explaining and Advertising Fees
        1.203 “Specializing” in Real Estate
        1.204 Referrals
        1.205 Publicity
        1.206 “Everybody’s Doing It” Rationale
        1.207 Best Method for Long-Term Growth

1.3 OFFICE-SHARING

1.4 WHO IS THE “CLIENT”?
        1.401 In General
        1.402 Implied Attorney-Client Relationships
        1.403 Non-Clients and Third-Party Beneficiaries

1.5 FEES
        1.501 Legal Fees
        1.502 Non-Legal Fees

1.6 STANDARD OF CARE GENERALLY
        1.601 Duties and Warranties
        1.602 What “Everybody’s Doing”
        1.603 Statutes of Limitations for Malpractice and Disciplinary Complaints

1.7 FIDUCIARY STANDARD OF CARE
        1.701 Undiluted-Loyalty Duties and Warranties
        1.702 Disclosure Duties and Nondisclosures
        1.703 Per Se Disqualifying Interests
        1.704 Interests of Lawyer, Colleague, Relative, or Spouse
        1.705 Interests of Other or Former Clients
        1.706 Funds and Property of Clients
        1.707 Funds and Property of Non-Clients
        1.708 Disbursement Standards
        1.709 Trust Account: Bank’s Required Agreement With Virginia Bar
        1.710 Interest on Funds in Trust
        1.711 Limiting Liabilities, Duties, or Warranties
        1.712 Powers of Attorney
        1.713 Confidences and Secrets

1.8 LEGAL STANDARD OF CARE
        1.801 In General
        1.802 Implied Attorney-Client Relationship
        1.803 Duties and Warranties to Non-Clients
        1.804 Limiting Liability, Duties, or Warranties
        1.805 Negligence

1.9 COMMUNICATING WITH THE CLIENT

1.10 REAL ESTATE SALES CONTRACTS
        1.1001 Advice and Counsel
        1.1002 Non-Lawyer Preparing Contract or Furnishing Advice

1.11 LEGAL DOCUMENTS GENERALLY

1.12 TITLE SEARCH AND OPINION
        1.1201 Implied Title Search Duties and Implied Title Opinions
        1.1202 Negligent Title Search
        1.1203 Clerk’s Records, Abstracts, and Indexing Errors
        1.1204 Limitations and Disclaimers

1.13 TITLE INSURANCE
        1.1301 Title Opinions Versus Title Insurance
        1.1302 Reliance on Abstracts and Files of Title Insurance Companies
        1.1303 Failure to Inform Client of Availability of Title Insurance
        1.1304 Failure to Obtain Title Insurance
        1.1305 Unreasonable Delay in Disbursing Title Insurance Premiums
        1.1306 Lawyer as Agent of Title Insurance Company
        1.1307 Proprietary Interest in Title Insurance Company
        1.1308 Title Insurance Company Issuing Binder or Policy Directly to
        Non-Lawyer
        1.1309 Legal Opinion and Advice by Title Insurance Company
        1.1310 Insuring Closings by “Approved Attorneys”
        1.1311 Approved Attorney’s Duties to Title Insurance Company
        1.1312 Title Insurance Premiums and Legal Fees
        1.1313 Mechanics’ and Materialmen’s Lien Agent
        1.1314 Legal Services Provided by Lawyer Employed by Title Insurance
        Company

1.14 MECHANICS’ AND MATERIALMEN’S LIENS

1.15 FUNDS AND PROPERTY

1.16 ESCROW AGREEMENTS

1.17 CLOSINGS
        1.1701 Who Is the Client: Lender, Borrower, or Seller?
        1.1702 Deeds
        1.1703 Deeds of Trust
        1.1704 Recordation
        1.1705 Disbursements
        1.1706 Settlement
        1.1707 Satisfaction and Release

1.18 REAL ESTATE AGENTS
        1.1801 Referrals From Real Estate Agents
        1.1802 Preparing Contracts
        1.1803 Preparing Deeds and Deeds of Trust
        1.1804 Giving Legal Advice
        1.1805 Sales Commissions
        1.1806 Purchaser’s Lawyer Representing Agent Against Seller
        1.1807 Interests of Lawyer, Spouse, or Law Firm in Real Estate Agency
        1.1808 Dual Practice as Real Estate Agent and Lawyer

1.19 PURCHASERS AND BORROWERS
        1.1901 Referrals From Interested Parties
        1.1902 Second Deeds of Trust by Borrowers
        1.1903 Multiple Representation of Purchaser-Borrower, Lender, or Seller
        1.1904 Misindexed Prior Deeds of Trust
    
1.20 LENDERS
        1.2001 Referrals From Lenders
        1.2002 Counsel for Lender or Loan Officer as Trustee on Deed of Trust
        1.2003 Preparing Deeds and Deeds of Trust
        1.2004 Giving Legal Advice
        1.2005 Lawyer Representing Lender and Borrower or Seller
        1.2006 Construction Loans
        1.2007 Lenders’ Loan-Closing Instructions

1.21 SELLERS, CONTRACTORS, AND DEVELOPERS
        1.2101 Referrals From Seller, Contractor, or Developer
        1.2102 Counsel for Purchaser-Borrower as Trustee on Second Deed of Trust
        1.2103 Representing Developer-Seller and Purchaser

1.22 IRS FORM 1099-S

1.23 TRUSTEES
        1.2301 Counsel to Only One Party Serving as Trustee
        1.2302 Attorney Loan Officer Serving as Trustee
        1.2303 Counsel to Multiple Parties Serving as Trustee
        1.2304 Disqualification of Trustee
        1.2305 Deed Preparation by Lay Trustee
        1.2306 Residential Foreclosure Services by Lay Trustee

1.24 DEFAULT
        1.2401 Purchase by Settlement Attorney Upon Default by Purchaser
        1.2402 Representing One or More Parties in Dispute Arising Before or
        After Settlement
        1.2403 Specific Performance

1.25 UNAUTHORIZED PRACTICE OF LAW
        1.2501 In General
        1.2502 Matters Not Constituting Unauthorized Practice of Law
        1.2503 Out-of-State Settlement by Non-Virginia Lawyer
        1.2504 Delegation to Legal Assistants and Paralegals
        1.2505 Non-Lawyers
        1.2506 Non-Lawyer Settlement Services
        1.2507 Suspended or Disbarred Attorneys

1.26 ATTORNEYS AS SETTLEMENT AGENTS IN CONSUMER TRANSACTIONS;
VIRGINIA STATE BAR DISCIPLINARY ACTIONS
        1.2601 Registration as Settlement Agent
        1.2602 Definition of Settlement Agent
        1.2603 Transactions to Which Chapter 27.3 Applies
        1.2604 Disclosure Requirements
        1.2605 Disciplinary Actions Against Attorney Settlement Agents
        1.2606 Examples of Disciplinary Actions Against Lawyers

APPENDIX 1-1: DISCLAIMING REPRESENTATION OF LENDER

APPENDIX 1-2: DISCLAIMING REPRESENTATION OF BORROWER-
PURCHASER AND SELLER

APPENDIX 1-3: DISCLAIMING REPRESENTATION OF SELLER

APPENDIX 1-4: MULTIPLE CLIENTS DISCLOSURE CONSENT
CONFIRMATION

APPENDIX 1-5: ELIMINATING OR LIMITING TITLE-SEARCH DUTIES
AND OPINION

APPENDIX 1-6: DISCLOSURE OF LAWYER’S PROPRIETARY INTEREST
IN TITLE COMPANY AND CLIENTS’ CONSENT

CHAPTER 2: RESIDENTIAL REAL ESTATE CONTRACTS   (back to top)

2.1 INTRODUCTION

2.2 PARTIES
        2.201 In General
        2.202 Status of Title
        2.203 Capacity

2.3 PROPERTY DESCRIPTION
        2.301 In General
        2.302 Appurtenances and Improvements

2.4 PERSONAL PROPERTY
        2.401 In General
        2.402 Schedule of Personal Property

2.5 CONSIDERATION
        2.501 In General
        2.502 Note and Deed of Trust
        2.503 Side Agreements
        2.504 Assumption Clauses

2.6 CONTRACT CONDITIONS
        2.601 Financing
        2.602 Sale of Purchaser’s Home
        2.603 Delivery Date of New Construction
        2.604 Zoning and Development Issues
        2.605 Inspection Clause
        2.606 Conditions of Title
        2.607 Mechanics’ Liens
        2.608 Environmental Considerations
        2.609 Implied Conditions of Good Faith
        2.610 Option to Purchase

2.7 PRORATIONS

2.8 SETTLEMENT AND POSSESSION

2.9 RISK OF LOSS AND CONDITION OF PROPERTY

2.10 REAL ESTATE AGENT’S COMMISSION

2.11 ASSIGNMENT

2.12 REPRESENTATIONS AND WARRANTIES
        2.1201 Residential Property Disclosure Act
        2.1202 Seller’s Clauses
        2.1203 Implied Warranties on New Homes
        2.1204 Lead-Based Paint Disclosure

2.13 ARBITRATION

2.14 DEFAULT

2.15 MISCELLANEOUS PROVISIONS
        2.1501 Choice of Law
        2.1502 Binding Effect
        2.1503 Entire Agreement; Modification
        2.1504 Execution
        2.1505 Acceptance
        2.1506 Material Breach, Time Is of the Essence, Specific Performance,
        and the Interstate Land Sale Act

2.16 SIGNATURES, NOTARIALS, AND RECORDATION OF CONTRACT

2.17 SPECIAL CONSIDERATIONS FOR PURCHASERS
        2.1701 Right of First Refusal or Option to Purchase
        2.1702 Real Estate Agent’s Role
        2.1703 Virginia Property Owners’ Association Act
        2.1704 Duties of Real Estate Brokers and Salespersons
        2.1705 Statutory Settlement Protection

APPENDIX 2-1: RESIDENTIAL CONTRACT OF PURCHASE—VBA FORM

APPENDIX 2-2: RESIDENTIAL CONTRACT OF PURCHASE—VAR FORM

APPENDIX 2-3: PROMISSORY NOTE

APPENDIX 2-4: DEED OF TRUST

APPENDIX 2-5: TERMS OF PAYMENT

APPENDIX 2-6: CONSTRUCTION TERMS

APPENDIX 2-7: RESIDENTIAL PROPERTY DISCLOSURE STATEMENT

APPENDIX 2-8: LEASE AGREEMENT (Seller Retains Possession After Closing)

APPENDIX 2-9: LEASE AGREEMENT (Purchaser Takes Possession Before
Closing)

APPENDIX 2-10: LEAD-BASED PAINT DISCLOSURE FORM—LESSOR

APPENDIX 2-11: LEAD-BASED PAINT DISCLOSURE FORM—SELLER

CHAPTER 3: COMMERCIAL REAL ESTATE CONTRACTS   (back to top)

3.1 IN GENERAL

3.2 THE CLOSING MEMORANDUM

3.3 OPTIONS TO PURCHASE

3.4 PREPARATION OF THE AGREEMENT
        3.401 Recitals
        3.402 Property Description
        3.403 Purchase Price and Allocation
        3.404 Financing
        3.405 Conditions Precedent
        3.406 Study Period
        3.407 Inspections
        3.408 Leases and Tenants
        3.409 Deposit
        3.410 Title
        3.411 Possession; Payment of Taxes and Expenses
        3.412 Delivery of Existing Information by the Seller
        3.413 Seller’s Warranties and Representations
        3.414 Condemnation
        3.415 Notices
        3.416 Closing
        3.417 Survival of Claims
        3.418 Risk of Loss
        3.419 Commissions
        3.420 Default and Remedies
        3.421 Entire Agreement and Merger
        3.422 Assignment
        3.423 Counterparts and Signatures
        3.424 Construction of Agreement

3.5 CONCLUSION

APPENDIX 3-1: CLOSING MEMORANDUM

APPENDIX 3-2: OPTION AND LAND PURCHASE AND SALE AGREEMENT

APPENDIX 3-3: NOTICE OF EXERCISE OF OPTION

APPENDIX 3-4: BILL OF SALE

APPENDIX 3-5: ASSIGNMENT OF LICENSES, CONTRACTS, PERMITS, OR
OTHER INSTRUMENTS

APPENDIX 3-6: ASSIGNMENT OF RENTS AND LEASES

APPENDIX 3-7: TENANT ESTOPPEL CERTIFICATE

APPENDIX 3-8: ASSIGNMENT OF SERVICE, MAINTENANCE, AND OTHER
CONTRACTS

APPENDIX 3-9: FIRPTA AFFIDAVIT

APPENDIX 3-10: SELLER’S OFAC AFFIDAVIT

APPENDIX 3-11: PURCHASER’S OFAC AFFIDAVIT

APPENDIX 3-12: LAND PURCHASE AND SALE AGREEMENT

APPENDIX 3-13: BILL OF SALE

APPENDIX 3-14: ASSIGNMENT OF LICENSES, CONTRACTS, PERMITS, OR
OTHER INSTRUMENTS (Exhibit E)

APPENDIX 3-15: ASSIGNMENT OF RENTS AND LEASES

APPENDIX 3-16: TENANT ESTOPPEL CERTIFICATE

APPENDIX 3-17: ASSIGNMENT OF SERVICE, MAINTENANCE, AND OTHER
CONTRACTS

APPENDIX 3-18: FIRPTA AFFIDAVIT

APPENDIX 3-19: SELLER’S OFAC AFFIDAVIT

APPENDIX 3-20: PURCHASER’S OFAC AFFIDAVIT

CHAPTER 4: MECHANICS’ LIENS   (back to top)

4.1 IN GENERAL
        4.101 Statutory Creation
        4.102 Statutory Construction
        4.103 Preparing the Case

4.2 WHO MAY CLAIM THE LIEN
        4.201 Identifying a Mechanic’s Lien Claimant
        4.202 Laborers and Suppliers
        4.203 Architects, Engineers, and Surveyors
        4.204 General Contractors and Subcontractors

4.3 PROPERTY SUBJECT TO THE LIEN
        4.301 In General
        4.302 Public Property
        4.303 Multiple Contracts, Lots, Units, or Buildings
        4.304 Utility and Paving Contractors
        4.305 Leased Property
        4.306 Condominiums
        4.307 Time-Share Property

4.4 PERFECTING THE LIEN
        4.401 The 90-Day Rule
        4.402 “Completed or Otherwise Terminated”
        4.403 Replacement Materials; Open Accounts
        4.404 Certification of Mailing

4.5 MECHANICS’ LIEN AGENTS
        4.501 In General
        4.502 Designating the Mechanics’ Lien Agent
        4.503 Posting the Building Permit
        4.504 Sufficiency of the Building Permit
        4.505 Notice Requirements
        4.506 Evidence of Receipt
        4.507 Inaccurate Description of the Property
        4.508 Time Period for Notice
        4.509 Notice After the 30-Day Period
        4.510 Determining Whether a Proper Building Permit Has Been Issued
        4.511 Amendment of Building Permit
        4.512 Exceptions to the Requirement to Notify the Mechanics’ Lien Agent

4.6 AFFIDAVIT VERIFYING PAYMENT FOR LABOR AND MATERIALS
        4.601 Purchaser to Be Provided Affidavit or Statement at Settlement
        4.602 Penalty for Failure to Provide

4.7 THE 150-DAY RULE
        4.701 Statutory Basis of Rule
        4.702 Cases Construing the Rule

4.8 STATUTORY FORMS FOR THE MEMORANDUM OF LIEN
        4.801 The Contractor’s Memorandum
        4.802 The Subcontractor’s Memorandum
        4.803 Statement Declaring Intention to Claim the Benefit of a Lien
        Required in Memorandum of Mechanic’s Lien

4.9 DEFENSES
        4.901 Owner’s Priority
        4.902 Limitation on the Amount Claimed by Subcontractors and Sub-
        Subcontractors
        4.903 Licensure of Claimant

4.10 PERSONAL LIABILITY OF OWNER OR GENERAL CONTRACTOR
        4.1001 Remedy Created by Section 43-11 of the Virginia Code
        4.1002 Creation of Personal Liability of Owner and General Contractor
        4.1003 Priority of the Section 43-11 Claim
        4.1004 Owner’s Right to Setoff for Work Not Completed by General
        Contractor
        4.1005 Limitations on Owner’s or General Contractor’s Liability

4.11 ENFORCEMENT OF THE LIEN
        4.1101 Complaint
        4.1102 Intervening Petition by Other Lienholders
        4.1103 Parties
        4.1104 When the Suit Must Be Brought
        4.1105 Automatic Stay in Bankruptcy
        4.1106 Scope of Jurisdiction
        4.1107 Sale of the Property
        4.1108 Challenging the Validity of Lien
        4.1109 Court-Ordered Release
        4.1110 Diverting Funds

4.12 PRIORITY OF LIENS
        4.1201 In General
        4.1202 Priority Over Deeds of Trust
        4.1203 Priority Over Security Interest in Accounts Receivable
        4.1204 Priority Among Mechanics’ Liens
        4.1205 Removal of Materials Affixed to the Structure
        4.1206 Federal Liens

4.13 ALTERNATIVES TO MECHANICS’ LIENS
        4.1301 Civil Suit
        4.1302 Statutory Alternatives
        4.1303 Threat of Filing
        4.1304 Contract Provisions

4.14 MISCELLANEOUS CONSIDERATIONS
        4.1401 Assignment
        4.1402 Waiver
        4.1403 Slander of Title
        4.1404 Forfeiture
        4.1405 Release or Discharge

4.15 PRACTICAL EFFECTS OF FILING A LIEN
        4.1501 Effect on the Owner
        4.1502 Effect on the Claimant’s Business
        4.1503 Effect on the General Contractor
        4.1504 Effect on the Construction Lender
        4.1505 Effect on the Title Agency

APPENDIX 4-1: MEMORANDUM FOR MECHANICS’ LIEN CLAIMED BY
GENERAL CONTRACTOR UNDER SECTION 43-4 OF THE
VIRGINIA CODE

APPENDIX 4-2: MEMORANDUM FOR MECHANICS’ LIEN CLAIMED BY
SUBCONTRACTOR UNDER SECTION 43-7 OF THE
VIRGINIA CODE

APPENDIX 4-3: MEMORANDUM FOR MECHANICS’ LIEN CLAIMED BY
SUB-SUBCONTRACTOR UNDER SECTION 43-9 OF THE
VIRGINIA CODE

APPENDIX 4-4: MILLER ACT SUIT TO ASSERT CLAIM AGAINST BOND ON
FEDERAL BUILDING OR PROJECT

APPENDIX 4-5: COMPLAINT TO ASSERT CLAIM AGAINST BOND ON STATE
BUILDING OR PROJECT

APPENDIX 4-6: DISCLOSURE STATEMENT FOR SITE DEVELOPMENT
IMPROVEMENTS

APPENDIX 4-7: NOTICE TO MECHANICS’ LIEN AGENT PURSUANT TO
SECTION 43-4.01 OF THE VIRGINIA CODE

APPENDIX 4-8: OWNERS’ AFFIDAVIT AS TO MECHANICS’ LIENS AND
POSSESSION (WITH “GAP” COVERAGE)

APPENDIX 4-9: COMPLAINT TO ENFORCE MECHANICS’ LIEN

APPENDIX 4-10: STATEMENT OF ACCOUNTS

APPENDIX 4-11: PETITION TO BOND OFF LIEN UNDER SECTION 43-71 OF
THE VIRGINIA CODE

APPENDIX 4-12: BOND TO BOND OFF LIEN UNDER SECTION 43-71 OF THE
VIRGINIA CODE

APPENDIX 4-13: DECREE TO BOND OFF LIEN UNDER SECTION 43-71 OF
THE VIRGINIA CODE

APPENDIX 4-14: ATTORNEY CHECKLIST FOR MECHANIC’S LIEN CASE

CHAPTER 5: TITLE EXAMINATIONS   (back to top)

5.1 INTRODUCTION

5.2 TYPE OF TITLE EVIDENCE REQUIRED

5.3 USE OF BACK TITLE INFORMATION

5.4 LENGTH OF SEARCH

5.5 PRIOR TITLE EVIDENCE

5.6 PRELIMINARY INFORMATION

5.7 INITIAL SOURCE OR “STARTER”

5.8 CREATING THE CHAIN OF TITLE
        5.801 Records to Be Examined
        5.802 Chain of Title
        5.803 Deeds
        5.804 Decedents’ Estates—Wills and Intestate Succession
        5.805 Chancery Suits
        5.806 Foreclosure Sales
        5.807 Tax Deeds

5.9 ADVERSING OWNERS IN THE CHAIN OF TITLE
        5.901 Grantor Index
        5.902 Judgments, Federal Liens, and Mechanics’ Liens
        5.903 Liens for Taxes and Special Assessments
        5.904 Financing Statements
        5.905 Certification Date
        5.906 Summary of Information

5.10 OBJECTIONS, EXCEPTIONS, AND DEFECTS IN TITLE
        5.1001 Deeds of Trust and Vendor’s Liens
        5.1002 Judgment Liens
        5.1003 Federal Tax Liens
        5.1004 Property Owners’ Association Liens
        5.1005 Financing Statements
        5.1006 Delinquent Real Estate Taxes and Special Assessments
        5.1007 Restrictions and Covenants
        5.1008 Condominiums
        5.1009 Easements
        5.1010 Surveys
        5.1011 Mechanics’ Liens
        5.1012 Decedents’ Estates
        5.1013 Subdivision Requirements

5.11 ZONING

5.12 PREPARING THE TITLE REPORT

5.13 INDEXING AND SAVING TITLE NOTES

5.14 REVIEWING THE TITLE INSURANCE COMMITMENT AND
DOCUMENTS

5.15 ABSTRACT OF TITLE
        5.1501 Definition and Essential Elements
        5.1502 As Used in Virginia
        5.1503 Form and Content
        5.1504 Hybrid or Special Purpose Abstracts

5.16 CERTIFICATE OF TITLE
        5.1601 In General
        5.1602 To Whom Certified
        5.1603 Effective Date and Time
        5.1604 Scope of the Examination
        5.1605 Names of Current Owners
        5.1606 Estate and Tenancy of Record Owners
        5.1607 Property Description
        5.1608 Exceptions or Other Matters Affecting Title
        5.1609 Matters Not of Record

5.17 ATTORNEY LIABILITY FOR AN INACCURATE TITLE REPORT

APPENDIX 5-1: SAMPLE BACK TITLE LETTER

APPENDIX 5-2: COMMITMENT TO ISSUE A TITLE INSURANCE POLICY

APPENDIX 5-3: NOTICE OF AVAILABILITY OF OWNER’S TITLE
INSURANCE FORM

APPENDIX 5-4: ABSTRACTING CHAIN INSTRUMENTS

APPENDIX 5-5: ALTERNATIVE FORMAT TO ABSTRACTING THE ENTIRE
CHAIN

APPENDIX 5-6: ADVERSES FOR A CHAIN OF TITLE

APPENDIX 5-7: SELLER/OWNER AFFIDAVIT

APPENDIX 5-8: MECHANICS’ LIEN WAIVER FORMS

APPENDIX 5-9: INDEMNITY AND ESCROW AGREEMENT FOR TESTATE
ESTATES IN THE COMMONWEALTH OF VIRGINIA

APPENDIX 5-10: INDEMNITY AND ESCROW AGREEMENT FOR INTESTATE
ESTATES IN THE COMMONWEALTH OF VIRGINIA

APPENDIX 5-11: BOND FORM—TESTATE

APPENDIX 5-12: BOND FORM—INTESTATE

APPENDIX 5-13: CHECKLIST FOR A TITLE EXAMINATION

APPENDIX 5-14: AMERICAN LAND TITLE ASSOCIATION (ALTA)
APPLICATION FORM FOR RECORDED DOCUMENT
GUARANTEE

APPENDIX 5-15: SAMPLE CERTIFICATE OF TITLE

APPENDIX 5-16: PRELIMINARY TITLE REPORT

APPENDIX 5-17: ATTORNEY’S FINAL CERTIFICATE

CHAPTER 6: TITLE INSURANCE   (back to top)

6.1 DEFINITION

6.2 THE AMERICAN LAND TITLE ASSOCIATION TITLE POLICY
        6.201 In General
        6.202 Parts of the ALTA Policy Form

6.3 THE INSURING PROVISIONS
        6.301 In General
        6.302 The Owner’s Policy
        6.303 Covered Risks in the 2006 Owner’s Policy Form
        6.304 The Loan Policy
        6.305 Covered Risks in the 2006 Loan Policy Form
        6.306 Defense Costs

6.4 EXCLUSIONS FROM COVERAGE
        6.401 In General
        6.402 Laws, Ordinances, Regulations, and Governmental Police Powers
        6.403 Rights of Eminent Domain
        6.404 Matters Created, Suffered, Assumed, or Agreed to by the Insured
        6.405 Matters Not Known to the Insurer or Recorded in the Public Records
        at the Date of the Policy but Known to the Insured Claimant
        6.406 Other Exclusions
        6.407 Exclusions Appearing Only in Loan Policies

6.5 EXCLUSIONS IN THE 2006 POLICY FORMS

6.6 SCHEDULE A

6.7 SCHEDULE B
        6.701 In General
        6.702 Rights or Claims of Parties in Possession Not Shown by the Public
        Records
        6.703 Disclosure of Encroachments, Overlaps, Boundary Line Disputes,
        and any Other Matters
        6.704 Easements or Claims of Easements Not Shown by the Public Records
        6.705 Any Lien or Right to a Lien for Services, Labor, or Material
        Furnished, Imposed by Law, and Not Shown by the Public Records
        6.706 Taxes or Special Assessments that Are Not Shown as Existing
        Liens by the Public Records
        6.707 Other Exceptions
        6.708 Schedule B-2
        6.709 Short Form Policies

6.8 CONDITIONS AND STIPULATIONS
        6.801 In General
        6.802 Definitions
        6.803 Continuation of Coverage
        6.804 Notice of Claim
        6.805 Defense and Prosecution of Claims
        6.806 Proof of Loss or Damage
        6.807 Options to Pay or Settle
        6.808 Determination; Extent of Liability; Coinsurance
        6.809 Apportionment
        6.810 Limitation of Liability
        6.811 Liability Noncumulative
        6.812 Subrogation Upon Payment or Settlement
        6.813 Arbitration
        6.814 Approved Attorneys

6.9 CONDITIONS IN THE 2006 POLICY FORMS

6.10 ENDORSEMENTS

APPENDIX 6-1: ALTA OWNER’S POLICY (1992)

APPENDIX 6-2: LOAN POLICY OF TITLE INSURANCE (1992)

APPENDIX 6-3: HOMEOWNER’S POLICY OF TITLE INSURANCE FOR
ONE- TO FOUR-FAMILY RESIDENCES (2003)

APPENDIX 6-4: ALTA SHORT FORM RESIDENTIAL LOAN POLICY (2006)

APPENDIX 6-5A: ALTA EXPANDED COVERAGE RESIDENTIAL LOAN
POLICY (2010)

APPENDIX 6-5B: ALTA SHORT FORM EXPANDED COVERAGE RESIDENTIAL
LOAN POLICY (2010)

APPENDIX 6-6: POLICY OF TITLE INSURANCE—UNITED STATES
FORM (1991)

APPENDIX 6-7: ADVANTAGE EXPRESS RESIDENTIAL OWNERS POLICY

APPENDIX 6-8: ALTA OWNER’S POLICY OF TITLE INSURANCE (2006)

APPENDIX 6-9: ALTA LOAN POLICY OF TITLE INSURANCE (2006)

APPENDIX 6-10: CLOSING PROTECTION LETTER

APPENDIX 6-11: ENDORSEMENT FORM

APPENDIX 6-12: ALTA 1-06—STREET ASSESSMENTS

APPENDIX 6-13: ALTA 2-06—TRUTH IN LENDING

APPENDIX 6-14: ALTA 3-06—ZONING (UNIMPROVED LAND)

APPENDIX 6-15: ALTA 3.1-06—ZONING (COMPLETED STRUCTURE)

APPENDIX 6-16: ALTA 4-06—CONDOMINIUM

APPENDIX 6-17: ALTA 5-06—PLANNED UNIT DEVELOPMENT (PUD)

APPENDIX 6-18: ALTA 6-06—VARIABLE RATE MORTGAGE

APPENDIX 6-19: ALTA 6.2-06—VARIABLE RATE, NEGATIVE AMORTIZATION

APPENDIX 6-20: ALTA 7-06, 7.1-06 & 7.2-06—MANUFACTURED HOUSING

APPENDIX 6-21: ALTA 8.1-06—ENVIRONMENTAL PROTECTION LIEN
(RESIDENTIAL PROPERTY)

APPENDIX 6-22: FORM 8.2-06—COMMERCIAL ENVIRONMENTAL
PROTECTION LIEN

APPENDIX 6-23: ALTA 9-06—RESTRICTIONS, ENCROACHMENTS, AND
MINERALS

APPENDIX 6-24: ALTA 9.1-06—RESTRICTIONS, ENCROACHMENTS, AND
MINERALS (OWNER’S POLICY—UNIMPROVED LAND)

APPENDIX 6-25: ALTA 9.2-06—RESTRICTIONS, ENCROACHMENTS, AND
MINERALS (OWNER’S POLICY—IMPROVED LAND)

APPENDIX 6-26: ALTA 9.3-06—RESTRICTIONS, ENCROACHMENTS, AND
MINERALS (LENDER’S POLICY)

APPENDIX 6-27: ALTA 9.4-06—RESTRICTIONS, ENCROACHMENTS, AND
MINERALS (OWNER’S POLICY—UNIMPROVED LAND)

APPENDIX 6-28: ALTA 9.5-06—RESTRICTIONS, ENCROACHMENTS, AND
MINERALS (OWNER’S POLICY—IMPROVED LAND)

APPENDIX 6-29: ALTA 10-06—ASSIGNMENT

APPENDIX 6-30: ALTA 10.1-06—ASSIGNMENT AND DATE DOWN

APPENDIX 6-31: ALTA 11-06—MORTGAGE MODIFICATION

APPENDIX 6-32: ALTA 11.1-06—MORTGAGE MODIFICATION WITH
SUBORDINATION

APPENDIX 6-33: ALTA 12-06—AGGREGATION (OR “TIE IN”)

APPENDIX 6-34: ALTA 13-06—LEASEHOLD—OWNERS

APPENDIX 6-35: ALTA 13.1-06—LEASEHOLD—LOAN

APPENDIX 6-36: ALTA 14-06—FUTURE ADVANCE (PRIORITY)

APPENDIX 6-37: ALTA 14.1-06—FUTURE ADVANCE (NOTICE)

APPENDIX 6-38: ALTA 14.2-06—FUTURE ADVANCE (LETTER OF CREDIT)

APPENDIX 6-39: ALTA 15-06—NONIMPUTATION—FULL EQUITY TRANSFER

APPENDIX 6-40: ALTA 15.1-06—NONIMPUTATION—ADDITIONAL INSURED

APPENDIX 6-41: ALTA 15.2-06—NONIMPUTATION—PARTIAL EQUITY
TRANSFER

APPENDIX 6-42: ALTA 16-06—MEZZANINE FINANCING

APPENDIX 6-43: ALTA 17-06—ACCESS AND ENTRY

APPENDIX 6-44: ALTA 17.1-06—INDIRECT ACCESS AND ENTRY

APPENDIX 6-45: ALTA 17.2-06—UTILITY ACCESS

APPENDIX 6-46: ALTA 18-06—SINGLE TAX PARCEL

APPENDIX 6-47: ALTA 18.1-06—MULTIPLE TAX PARCELS

APPENDIX 6-48: ALTA 19-06—CONTIGUITY—MULTIPLE PARCELS

APPENDIX 6-49: ALTA 19.1-06—CONTIGUITY—SINGLE PARCEL

APPENDIX 6-50: ALTA 20-06—FIRST LOSS—MULTIPLE PARCEL
TRANSACTION

APPENDIX 6-51: ALTA 21-06—CREDITORS’ RIGHTS (Withdrawn in 2010)

APPENDIX 6-52: ALTA 22-06—LOCATION

APPENDIX 6-53: ALTA 22.1-06—LOCATION AND MAP

APPENDIX 6-54: ALTA 23-06—COINSURANCE

APPENDIX 6-55: ALTA 24-06—DOING BUSINESS

APPENDIX 6-56: ALTA 25-06—SAME AS SURVEY

APPENDIX 6-57: ALTA 25.1-06—SAME AS PORTION OF SURVEY

APPENDIX 6-58: ALTA 26-06—SUBDIVISION

APPENDIX 6-59: ALTA 27-06—USURY

APPENDIX 6-60: ALTA 28-06—EASEMENT—DAMAGE OR ENFORCED
REMOVAL

APPENDIX 6-61: ALTA 29-06—INTEREST RATE SWAP—DIRECT
OBLIGATIONS

APPENDIX 6-62: ALTA 29.1-06—INTEREST RATE SWAP—ADDITIONAL
INTEREST

APPENDIX 6-63: ALTA 29.2-06—INTEREST RATE SWAP—DIRECT
OBLIGATION—DEFINED AMOUNT

APPENDIX 6-64: ALTA 29.3-06—INTEREST RATE SWAP—ADDITIONAL
INTEREST—DEFINED AMOUNT

APPENDIX 6-65: ALTA 30-06—ONE- TO FOUR-FAMILY SHARED
APPRECIATION MORTGAGE

APPENDIX 6-66: ALTA 31-06—SEVERABLE IMPROVEMENTS

APPENDIX 6-67: ALTA 32-06; 32.1-06; 33-06—CONSTRUCTION

APPENDIX 6-68: ALTA 34-06—IDENTIFIED RISK COVERAGE

APPENDIX 6-69: CLTA FORM 103.3-06—EASEMENT, EXISTING ENCROACH-
MENTS (3-9-07) (LENDER’S POLICY ONLY)

APPENDIX 6-70: CLTA FORM 103.6-06—ENCROACHMENTS, NONE
EXIST (3-9-07)

APPENDIX 6-71: CLTA FORM 103.9-06—ENCROACHMENTS, FUTURE
IMPROVEMENTS (3-9-07)

APPENDIX 6-72: EASEMENT—FORECLOSURE SALE

APPENDIX 6-73: TENANTS AS TENANTS ONLY

APPENDIX 6-74: LETTER OF CREDIT—MORTGAGE (OBLIGATORY ADVANCES)
(Virginia Version of an ALTA 14.2-Type Endorsement)

APPENDIX 6-75: LETTER OF CREDIT—FACILITY

APPENDIX 6-76: LETTER OF CREDIT—DATE DOWN

APPENDIX 6-77: FUTURE ADVANCE—REVERSE MORTGAGE (Virginia
Version of ALTA 14.3)

APPENDIX 6-78: ANTI-TAINT ENDORSEMENT

APPENDIX 6-79: AFFIRMATIVE MECHANICS’ LIEN COVERAGE

APPENDIX 6-80: ARBITRATION

APPENDIX 6-81: LAST DOLLAR ENDORSEMENT

APPENDIX 6-82: “FAIRWAY” ENDORSEMENT

APPENDIX 6-83: PERMITTED TRANSACTIONS ENDORSEMENT

APPENDIX 6-84: ADDITIONAL INSURED

INDEX

Volume 2

CHAPTER 7: SURVEY BASICS   (back to top)

7.1 PRELIMINARY MATTERS

7.2 TITLE INSURANCE COVERAGE FOR SURVEYS AND SURVEY-
RELATED MATTERS

7.3 MAP OR PLAT VERSUS SURVEY

7.4 LAND TITLE SURVEY REQUIREMENTS

7.5 SURVEY FEATURES AND HOW TO REVIEW A SURVEY
        7.501 Title Block
        7.502 Legend for Symbols
        7.503 Vicinity Map
        7.504 Scale
        7.505 Property Description
        7.506 North Arrow
        7.507 Land Area
        7.508 Surveyor’s Certificate
        7.509 Surveyor’s Notes
        7.510 Adjacent Property and Adjoining Streets
        7.511 Survey Drawing
        7.512 Access
        7.513 Flood Plains, Water, and Wetlands
        7.514 Insured Easements
        7.515 Title Exceptions
        7.516 Encroachments

7.6 CONCLUSION

APPENDIX 7-1: SAMPLE CONDUIT LENDER SURVEY STANDARDS

APPENDIX 7-2: GENERAL SURVEY EXCEPTION AND SAMPLE TITLE
ENDORSEMENTS

APPENDIX 7-3: ALTA SURVEY STANDARDS (2011)

APPENDIX 7-4: TABLE A—OPTIONAL SURVEY RESPONSIBILITIES AND
SPECIFICATIONS

CHAPTER 8: FORMS OF HOLDING TITLE   (back to top)

8.1 INTRODUCTION

8.2 JOINT TENANCY
        8.201 In General
        8.202 Creation
        8.203 Characteristics

8.3 TENANCY BY THE ENTIRETY

8.4 TENANCY IN COMMON

8.5 TENANCY IN COPARCENARY

8.6 THE AUGMENTED ESTATE

APPENDIX 8-1: METHODS OF HOLDING TITLE

CHAPTER 9: THE DEED   (back to top)

9.1 INTRODUCTION

9.2 HISTORICAL PERSPECTIVE

9.3 PARTIES TO THE DEED
        9.301 Types of Parties
        9.302 Married Grantors
        9.303 Contract Purchasers
        9.304 Third Parties
        9.305 Misnomer of a Grantee

9.4 THE PREMISES
        9.401 Names of the Parties
        9.402 Factual Recitals
        9.403 Recital of Consideration

9.5 GRANTING LANGUAGE

9.6 WARRANTIES
        9.601 Types of Deeds
        9.602 Extent of Warranty
        9.603 Language of Warranties

9.7 ENGLISH COVENANTS OF TITLE
        9.701 In General
        9.702 The Individual English Covenants
        9.703 How English Covenants Are Stated
        9.704 Grantor’s Liability to Grantee’s Assignees
        9.705 Damages for Breach

9.8 IMPLIED WARRANTIES ON NEW HOMES

9.9 CONVEYANCES TO JOINT OWNERS
        9.901 Joint Tenants
        9.902 Tenants by the Entirety
        9.903 Tenants in Common

9.10 SOLE AND SEPARATE EQUITABLE ESTATE

9.11 ESTATE GRANTED

9.12 PROPERTY DESCRIPTION
        9.1201 In General
        9.1202 Typical Property Description Forms
        9.1203 Derivation Clause

9.13 LIMITATION LANGUAGE

9.14 EASEMENTS

9.15 DEED AND PLAT AS MUTUALLY DEPENDENT

9.16 WITNESS PROVISION

9.17 SIGNATURES AND SEALS

9.18 ACKNOWLEDGMENTS

9.19 GRANTEE’S ADDRESS

APPENDICES 9-1 THROUGH 9-4: GENERAL WARRANTY DEED—VBA FORM

APPENDIX 9-5: GENERAL WARRANTY DEED FOR PROPERTY IN THE
NAME OF ONE SPOUSE—VBA FORM

APPENDIX 9-6: SPECIAL WARRANTY DEED—VBA FORM

APPENDIX 9-7: QUITCLAIM DEED—VBA FORM

APPENDICES 9-8 AND 9-9: DEED TO TRUSTEES UNDER A VIRGINIA LAND
TRUST—VBA FORM (SETTING OUT TRUST USES AND
PURPOSES)

APPENDIX 9-10: DEED OF SUBORDINATION—VBA FORM

APPENDICES 9-11 AND 9-12: DEED OF RELEASE AND PARTIAL RELEASE
—VBA FORM

APPENDIX 9-13: DEED WITHOUT WARRANTY

APPENDIX 9-14: DEED OF GIFT

APPENDIX 9-15: DEED FOR A CONDOMINIUM UNIT

APPENDIX 9-16: DEED OF ASSUMPTION

APPENDIX 9-17: EXAMPLES OF SIGNATURE BLOCKS

CHAPTER 10: RESIDENTIAL FINANCING   (back to top)

10.1 INTRODUCTION
        10.101 Contract of Sale May Determine the Type of Financing
        10.102 The Loan Commitment and Loan Instructions Determine the
        Terms of the Loan

10.2 INSTITUTIONAL FINANCING
        10.201 Conventional Loans
        10.202 Federal Housing Administration (FHA) Loans
        10.203 Department of Veterans Affairs (VA) Loans
        10.204 Credit Line Deeds of Trust
        10.205 Private Mortgage Insurance
        10.206 The Secondary Mortgage Market
        10.207 Miscellaneous Statutory Provisions

10.3 ASSUMING VERSUS TAKING SUBJECT TO A DEED OF TRUST
        10.301 In General
        10.302 Required Notice
        10.303 “Assuming” and “Taking Subject To” Distinguished
        10.304 Modification and Release
        10.305 Obligations of the Purchaser
        10.306 Assumption or Payoff Figures

10.4 PURCHASE MONEY FINANCING
        10.401 In General
        10.402 Lien Priority
        10.403 As a Subordinate Deed of Trust

10.5 INSTALLMENT SALES CONTRACTS
        10.501 In General
        10.502 Pitfalls
        10.503 Virginia Legislation

10.6 GROUND RENT
        10.601 In General
        10.602 Rights of the Parties

10.7 SECURITY AGREEMENTS AND FINANCING STATEMENTS

10.8 USURY
        10.801 Interest Versus Usury
        10.802 Prepayment Penalties and Allowable Interest Rates on First Deed
        of Trust Loans
        10.803 Allowable Interest Rates on Residential Subordinate Loans
        10.804 Allowable Interest Rates Imposed or Collected by Sellers
        10.805 Borrowers Who May Not Plead Usury
        10.806 Penalties

10.9 ALTERNATIVE FORMS OF FINANCING
        10.901 In General
        10.902 Renegotiable Rate Mortgage (RRM)
        10.903 Reverse Annuity Mortgage (RAM)
        10.904 Graduated Payment Mortgage (GPM)
        10.905 Shared Appreciation Mortgage (SAM)
        10.906 Asset Integrated Mortgage (AIM)
        10.907 Growing Equity Mortgage (Rapid Payoff Mortgage)
        10.908 Level Payment Mortgage
        10.909 Fixed Schedule Mortgage

CHAPTER 11: COMMERCIAL LOAN DOCUMENTATION   (back to top)

11.1 INTRODUCTION
        11.101 In General
        11.102 Scope of Chapter
        11.103 Related Documents

11.2 COMMITMENT LETTERS
        11.201 In General
        11.202 Parties
        11.203 Loan Amount
        11.204 Purpose of the Loan; Sums to Be Withheld
        11.205 Collateral
        11.206 Term
        11.207 Interest
        11.208 Loan Commitment Fee
        11.209 Repayment
        11.210 Prepayment
        11.211 Late Charges
        11.212 Guaranties
        11.213 Equity
        11.214 Conditions to Closing
        11.215 Permanent Take-Out Loan
        11.216 Loan Conversion
        11.217 Assignment
        11.218 Deadline for Acceptance of the Commitment
        11.219 Expiration of the Commitment
        11.220 Termination of the Commitment

11.3 PROMISSORY NOTES
        11.301 In General
        11.302 Interest Rate, Negotiability, and Enforceability
        11.303 Repayment Terms
        11.304 Application of Payments
        11.305 Prepayment
        11.306 Late Charges
        11.307 Events of Default
        11.308 Default Interest Rate
        11.309 Limitations of Liability and Recourse
        11.310 Usury Savings Clause
        11.311 Confession of Judgment
        11.312 Waiver of Jury Trial
        11.313 Governing Law and Venue
        11.314 Seal

11.4 CREDIT ENHANCEMENTS

11.5 LOAN AGREEMENTS

11.6 DEEDS OF TRUST

11.7 LENDERS’ TITLE INSURANCE COMMITMENTS
        11.701 In General
        11.702 Schedule A
        11.703 Schedule B, Section I
        11.704 Schedule B, Section II
        11.705 Uniform Commercial Code; Tax Liens; Litigation Searches

11.8 RELEASE DOCUMENTS
        11.801 In General
        11.802 Conventional Release
        11.803 Electronic Release

11.9 SECURITY AGREEMENTS AND FINANCING STATEMENTS
        11.901 Introduction
        11.902 The Concept of Fixtures in Article 9
        11.903 Definitions
        11.904 Requirements for Attachment by a Security Agreement
        11.905 Perfection by Filing a Financing Statement
        11.906 Requirements for Filing a Financing Statement
        11.907 Where to File the Financing Statement
        11.908 When to File the Financing Statement

11.10 ASSIGNMENTS OF LEASES, RENTS, AND PROFITS

11.11 ASSIGNMENT OF ARCHITECTS’ AND CONTRACTORS’ CONTRACTS
TO THE LENDER

11.12 BUILDER’S RISK AND OTHER TYPES OF INSURANCE REQUIRED
BY THE LENDER

11.13 CERTIFICATES OF GOOD STANDING; OTHER EVIDENCE OF ENTITY
EXISTENCE AND AUTHORITY; BORROWING RESOLUTIONS

11.14 TENANTS’ ESTOPPEL AGREEMENTS

11.15 SUBORDINATION, ATTORNMENT, AND NON-DISTURBANCE
AGREEMENTS

11.16 ATTORNEY OPINION LETTERS

11.17 PERFORMANCE AND PAYMENT BONDS; AIA DOCUMENTATION

11.18 CHECKLIST OF FINAL DOCUMENTATION

APPENDIX 11-1: LEGAL OPINION PRINCIPLES

APPENDIX 11-2: CLOSING CHECKLIST

CHAPTER 12: RESIDENTIAL CLOSINGS   (back to top)

12.1 INTRODUCTION

12.2 LEGISLATION AFFECTING CLOSINGS
        12.201 Virginia Statutes
        12.202 Federal Statutes

12.3 THE TRANSACTION
        12.301 Representation Issues
        12.302 Contract Review
        12.303 Loan Commitment Review
        12.304 Coordination of Closing Requirements
        12.305 Necessary Documents and Data
        12.306 Document Preparation
        12.307 The Settlement Conference

12.4 POST-CLOSING MATTERS

APPENDIX 12-1: SETTLEMENT STATEMENT—HUD-1

APPENDIX 12-2: PURCHASER’S REPRESENTATION

APPENDIX 12-3: SELLER’S REPRESENTATION

APPENDIX 12-4: AFFIDAVIT THAT TRANSFEROR IS NOT A FOREIGN NON-
INDIVIDUAL FOR PURPOSE OF WITHHOLDING OF TAX

APPENDIX 12-5: AFFIDAVIT THAT TRANSFEROR IS NOT A FOREIGN
INDIVIDUAL FOR PURPOSE OF WITHHOLDING OF TAX

APPENDIX 12-6: FORMS R-5 AND R-5P

APPENDIX 12-7: FORM R-5E

APPENDIX 12-8: CERTIFICATE OF RESIDENCY

APPENDIX 12-9: SPECIAL POWER OF ATTORNEY FORM

APPENDIX 12-10: CERTIFICATE OF SATISFACTION

APPENDIX 12-11: SAMPLE IRS FORM 1099-S

APPENDIX 12-12: SUBSTITUTE IRS FORM 1099-S

APPENDIX 12-13: INFORMATION FOR REAL ESTATE 1099-S REPORT FILING

APPENDIX 12-14: CERTIFICATION FOR NO INFORMATION REPORTING
(1099-S) ON PRINCIPAL RESIDENCE

CHAPTER 13: THE UNIFORM COMMERCIAL CODE   (back to top)

13.1 INTRODUCTION
        13.101 In General
        13.102 Applicable U.C.C. Provisions
    
13.2 COMMERCIAL REAL ESTATE TRANSACTIONS TO WHICH
THE U.C.C. APPLIES
        13.201 Sales Transactions: Things Attached to Realty
        13.202 Lease Transactions: Fixtures
        13.203 Financing Transactions

13.3 COMPLIANCE
        13.301 Sales Transactions
        13.302 Lease Transactions
        13.303 Financing Transactions
        13.304 2012 Amendments to Title 8.9A

APPENDIX 13-1: U.C.C. FINANCING STATEMENT

CHAPTER 14: OPINION LETTERS IN REAL ESTATE TRANSACTIONS   (back to top)

14.1 HISTORICAL BACKGROUND
        14.101 Dawn of Opinion Literature
        14.102 An Easier Path: The TriBar Opinion Committee
        14.103 The ABA Accord
        14.104 The Second Generation of Opinion Letter Literature
        14.105 Real Estate Opinion Letters

14.2 STANDARD OF CARE APPLIED TO THIRD PARTY OPINION LETTERS
        14.201 Exercise of “Professional Judgment”
        14.202 Customary Practice
        14.203 Customary Diligence
        14.204 Misleading
        14.205 To Whom Duty Is Owed
        14.206 Scope of Duty

14.3 CAUSES OF ACTION FOR BREACH OF STANDARD OF CARE
        14.301 Malpractice
        14.302 Negligent Misrepresentation
        14.303 Fraudulent Misrepresentation
        14.304 Breach of Contract
        14.305 Violation of Statutes

14.4 ETHICAL RULES APPLICABLE TO THIRD PARTY OPINION PRACTICE
        14.401 Opinions Subject to Ethical Rules
        14.402 Client Confidentiality
        14.403 Evidence of Breach of Duty

14.5 LAW FIRM POLICIES AND PROCEDURES
        14.501 Opinion Committees
        14.502 Other Policies and Procedures for Issuing Opinion Letters
    
14.6 ILLUSTRATIVE OPINIONS IN COMMERCIAL REAL ESTATE
    LOAN TRANSACTIONS
        14.601 Introductory Paragraph
        14.602 Reviewed Documents
        14.603 Assumptions
        14.604 Opinions
        14.605 Exclusions
        14.606 Qualifications
        14.607 Reliance

APPENDIX 14-1: BIBLIOGRAPHY

APPENDIX 14-2: RECENT CASES ON OPINION LETTERS

APPENDIX 14-3: REAL ESTATE OPINION LETTER

APPENDIX 14-4: STATUTORY REQUIREMENTS FOR DEEDS OF TRUST

CHAPTER 15: LIKE-KIND EXCHANGES UNDER I.R.C. § 1031   (back to top)

15.1 INTRODUCTION

15.2 THE TAX-DEFERRED EXCHANGE
        15.201 A Simple Exchange
        15.202 An Exchange with “Boot”
        15.203 An Exchange with a Loss

15.3 REQUIREMENTS FOR A LIKE-KIND EXCHANGE
        15.301 Qualified Property
        15.302 The Purpose Requirement
        15.303 The Like-Kind Requirement
        15.304 The Holding Period
        15.305 The Exchange Requirement
        15.306 Time Limits (Deferred Exchanges)
        15.307 Adequate Identification of Replacement Property

15.4 EXCHANGES INVOLVING MULTIPLE PROPERTIES AND PARTIES
        15.401 Multiple Property Exchanges
        15.402 Multiple Party Exchanges

15.5 REVERSE EXCHANGES
        15.501 Overview and History
        15.502 Qualified Exchange Accommodation Arrangements
        15.503 Permitted Legal and Financial Relationships

15.6 CONCLUSION

CHAPTER 16: PLANNING AND ZONING   (back to top)

16.1 INTRODUCTION
        16.101 Purpose of Chapter
        16.102 Role of Courts

16.2 ENABLING LEGISLATION
        16.201 General Nature of Zoning
        16.202 Purposes of Zoning
        16.203 Constitutional Limitations
        16.204 Limitations on Local Authority
        16.205 Legislative and Non-Delegable Nature of Zoning

16.3 CONDITIONAL ZONING
        16.301 In General
        16.302 Proffers
        16.303 Types of Conditional Zoning
        16.304 Strengths and Weaknesses of Conditional Zoning
        16.305 Amendments to Approved Conditional Rezonings

16.4 IMPACT FEES
        16.401 In General
        16.402 Requirements
        16.403 Tidewater Ass’n of Homebuilders, Inc. v. City of Virginia Beach
        16.404 2007 Amendments to § 15.2-2317 et seq

16.5 HISTORIC DISTRICTS

16.6 COMPREHENSIVE PLANNING
        16.601 In General
        16.602 Nature of the Plan and Its Implementation
        16.603 Urban Development Areas
        16.604 Limitations on the Usefulness of the Plan
        16.605 Section 15.2-2232 Review

16.7 UPZONINGS
        16.701 In General
        16.702 Presumption of Validity
        16.703 Judicial Treatment of Upzoning Denials
        16.704 “Spot Zoning”
        16.705 Board of Supervisors v. Lerner
        16.706 Board of Supervisors v. Jackson and Board of Supervisors v.
        International Funeral Services, Inc.
        16.707 Demurrer of Claim That Rezoning Decision Was Arbitrary,
        Capricious, or Unreasonable
        16.708 Remand to Governing Body

16.8 DOWNZONINGS
        16.801 In General
        16.802 Piecemeal Versus Comprehensive Downzoning
        16.803 Sustaining Piecemeal Downzoning
        16.804 Downzoning Legislation

16.9 SPECIAL USE PERMITS
        16.901 Nature of Special Use Permit
        16.902 Standards for Issuing Special Use Permit
        16.903 Conditions on Grant of Special Use Permit
        16.904 Standard of Review on Appeal
        16.905 Limitation on Requirement of Special Use Permits

16.10 SITE PLANS

16.11 PROCEDURAL ISSUES
        16.1101 In General
        16.1102 Notice by Applicant; Applicant Who Is Not Owner of Subject
        Property
        16.1103 Notice for Additional Matters
        16.1104 Notice of Imposition of Fees and Levies
        16.1105 Requirement to Pay Past-Due Taxes
        16.1106 Procedural Due Process Requirements
        16.1107 Mandatory Nature of Hearings; Controlling Nature of the
        Enabling Legislation
        16.1108 Sufficiency of Resolution by Which Zoning Ordinance Amendment
        Is Initiated
        16.1109 Form and Codification of Ordinances
        16.1110 Importance of Procedural Correctness
        16.1111 Limitations of Actions
        16.1112 Exhaustion of Remedies
        16.1113 Necessary Parties
        16.1114 Standing
        16.1115 Federal Land Use Proceedings

16.12 VARIANCES
        16.1201 In General
        16.1202 Unnecessary Hardship

16.13 NONCONFORMING USES
        16.1301 In General
        16.1302 Expansion or Alteration of Use
        16.1303 Termination of Use

16.14 VESTED RIGHTS
        16.1401 In General
        16.1402 Continuum of Vested Rights
        16.1403 Nature of Vested Rights
        16.1404 Statutory Vesting Generally
        16.1405 Statutory Vesting of Subdivision and Site Plans
        16.1406 Forfeiture of Vested Rights
        16.1407 Who Makes Vested Rights Determinations
        16.1408 Void Permits
        16.1409 Vesting and Grandfathering Distinguished

16.15 ADMINISTRATION AND ENFORCEMENT
        16.1501 The Zoning Administrator
        16.1502 Zoning District Boundary Disputes
        16.1503 Variances
        16.1504 Finality of Zoning Administrator’s Determinations
        16.1505 Limitations on Zoning Administrator’s Authority
        16.1506 Appeal of Zoning Administrator’s Determinations Generally
        16.1507 Appeal of Zoning Administrator’s Rulings on Proffers
        16.1508 Criminal and Civil Penalties
        16.1509 Challenges to Building Permits

16.16 REGULATORY TAKINGS
        16.1601 In General
        16.1602 When the Taking Occurs
        16.1603 Ripeness
        16.1604 Forum for Regulatory Taking Case
        16.1605 Temporary Taking Versus Normal Administrative Delay
        16.1606 Damages
        16.1607 Exactions by Special Use Permits, Site Plans, Subdivisions,
        Impact Fees, and Proffers
        16.1608 Virginia Regulatory Takings Cases

CHAPTER 17: REAL ESTATE BROKERAGE LAW   (back to top)

17.1 INTRODUCTION

17.2 DEFINITIONS AND LICENSING REQUIREMENTS
        17.201 Statutory Definitions
        17.202 Marketplace Definitions
        17.203 Licensing Requirements

17.3 THE REAL ESTATE BOARD
        17.301 Structure
        17.302 Powers and Duties of the Board
        17.303 The Real Estate Transaction Recovery Act

17.4 DUTIES OF BROKERS AND SALESPERSONS
        17.401 Relationship With the Principal (Client)
        17.402 Relationship With Non-Client Parties
        17.403 Duties to All Parties, Whether Principal or Non-Principal
        17.404 Dual Agency
        17.405 Other Important Standards of Conduct
        17.406 Consequences for Breaching Duties

17.5 HOW BROKERS ARE ENGAGED
        17.501 General Rules
        17.502 “General” and “Special” Brokerage Contracts
        17.503 Express Contracts
        17.504 Implied-In-Fact Contracts
        17.505 “Procuring Cause”—What Is It and When Is It Required
        17.506 Implied-In-Law or Quasi-Contract (Unjust Enrichment)
        17.507 Liability of Subsequent Grantees for Payment of Original
        Grantor’s Brokerage Obligations

17.6 COMMERCIAL REAL ESTATE BROKER’S LIEN ACT
        17.601 Lien Applies Only to “Commercial Real Estate”
        17.602 Lien Applies Only to Leasing Activity
        17.603 Lien Requires a Writing Signed by Owner
        17.604 Services Rendered Must “Result in the Procuring of a Tenant”
        17.605 Purchaser of Commercial Property With Actual Knowledge of
        Brokerage Fee Payment Obligation Is Liable Regardless of
        Whether a Lien Has Been Filed
        17.606 Amount of Lien
        17.607 What Is Being Liened
        17.608 Procedure and Effect
        17.609 Contents of Memorandum of Lien
        17.610 Recommended Procedure for Enforcing Lien Claims

CHAPTER 18: CONDOMINIUMS AND PROPERTY OWNERS’ ASSOCIATIONS   (back to top)

18.1 INTRODUCTION TO CONDOMINIUMS
        18.101 In General
        18.102 Subdivision
        18.103 Cost-Sharing and Enforcement Mechanisms
        18.104 Architectural Control
        18.105 Parking Flexibility

18.2 INTRODUCTION TO PROPERTY OWNERS’ ASSOCIATIONS

18.3 TYPES OF CONDOMINIUMS AND PROPERTY OWNERS’
ASSOCIATIONS
        18.301 Land Condominiums
        18.302 Flex-Industrial Condominiums
        18.303 Office Condominiums
        18.304 Mixed-Use Condominiums
        18.305 Residential Property Owners’ Associations
        18.306 Commercial Property Owners’ Associations

18.4 ALLOCATIONS IN CONDOMINIUMS

18.5 CONDOMINIUM INSTRUMENTS
        18.501 In General
        18.502 The Declaration
        18.503 The Bylaws
        18.504 Maintenance Responsibilities Chart
        18.505 Plats and Plans
        18.506 Amendments

18.6 GOVERNANCE OF ASSOCIATIONS
        18.601 Board of Directors
        18.602 Officers
        18.603 Committees
        18.604 Management

18.7 MAINTENANCE RESPONSIBILITIES OF ASSOCIATION AND OWNERS
        18.701 Condominiums
        18.702 Property Owners’ Associations

18.8 RESTRICTIONS ON USE IN PROPERTY OWNERS’ ASSOCIATIONS
        18.801 Restrictive Covenants
        18.802 Typical Use Restrictions

18.9 MEETINGS
        18.901 In General
        18.902 Association Meetings
        18.903 Board Meetings
        18.904 Electronic Communication

18.10 CONTRACT PROVISIONS CONCERNING LOTS IN PROPERTY
OWNERS’ ASSOCIATIONS
        18.1001 Virginia Property Owners’ Association Act Disclosure Statement
        and Disclosure Packet
        18.1002 Supplemental Information
        18.1003 Rights of First Refusal
        18.1004 Architectural Review and Design Guidelines
        18.1005 Title Disclosure
        18.1006 Districts, Villages, Neighborhoods, and Voting Groups
        18.1007 Assessments and Prorations
        18.1008 Special Assessments
        18.1009 Working Capital Contributions
        18.1010 Board and Association Meeting Minutes and Records
        18.1011 Compliance and Notices from the Association
        18.1012 Notice to Association of Transfer of Title
        18.1013 Construction Deposits
        18.1014 Due Diligence Period
        18.1015 Common Area Warranties

18.11 CONTRACT PROVISIONS CONCERNING CONDOMINIUM UNITS
        18.1101 Initial Sale of Residential Units
        18.1102 Resale of Units
        18.1103 Notice to Association of Transfer of Title
        18.1104 Rights of First Refusal
        18.1105 Architectural Review and Design Guidelines
        18.1106 Title Disclosure
        18.1107 Due Diligence Period
        18.1108 Deposits
        18.1109 Assessments and Prorations
        18.1110 Special Assessments
        18.1111 Working Capital Contributions
        18.1112 Executive Organ and Association Meeting Minutes and Records
        18.1113 Compliance and Notices from the Association
        18.1114 Construction Deposits
        18.1115 Warranties

18.12 DUE DILIGENCE CHECKLIST AFTER CONTRACT IS SIGNED
        18.1201 Review of Association Documents
        18.1202 Insurance Policies
        18.1203 Maintenance Responsibilities of Association and Owner
        18.1204 Quality of Management
        18.1205 Status of Warranty Claims in Condominiums
        18.1206 Voting Rights
        18.1207 Financial Matters
        18.1208 Parking; Pets
        18.1209 Review of Title Report or Title Binder
        18.1210 Occupancy Limits
        18.1211 Age Restrictions
        18.1212 Master Associations
        18.1213 Architectural Violations
        18.1214 Review of Resale Disclosure Packet
        18.1215 Leasing Restrictions and Rules

18.13 CONCLUSION

APPENDIX 18-1: VIRGINIA CONDOMINIUM MAINTENANCE
RESPONSIBILITIES

APPENDIX 18-2: HOMEOWNERS’ ASSOCIATION RESALE DISCLOSURE
PACKET AND NOTICE

APPENDIX 18-3: RELEASE OF ARCHITECTURAL APPROVAL AUTHORITIES
FROM LIABILITY

APPENDIX 18-4: RESALE CERTIFICATE IN ACCORDANCE WITH
SECTION 55-79.97 OF THE VIRGINIA CODE

TABLE OF AUTHORITIES


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