Virginia Amends Foreclosure Sale Provisions Related to Rental Agreements

Virginia recently passed House Bill (HB) 2229, reenacting and amending the Virginia Residential Landlord and Tenant Act.  HB 2229 becomes effective on July 1, 2021.

HB 2229 provides that if a single-family residential dwelling unit is foreclosed upon and there is a tenant in such dwelling unit on the date of the foreclosure sale, the successor in interest may, following 90 days advance written notice, terminate the tenant’s rental agreement if such successor in interest acquires the dwelling unit for the purpose of occupying such unit.  However, if the successor in interest acquires the single-family dwelling unit for any other purpose, the dwelling unit is acquired subject to the rental agreement and the tenant may occupy the premises for the remainder of the lease term.  In this circumstance, the successor in interest may still terminate the rental agreement, subject to notice requirements, pursuant to other provisions of law or the terms of the rental agreement.  In addition, successors in interest are responsible to return any security deposit and any accrued interest duly owed to the tenant whether or not the landlord has transferred such security deposit to the successor in interest.