Licensee Responsibilities – Transfer of Escrow Funds and Foreclosures
Allows for a smoother transition for an existing tenant and a new owner following a foreclosure.
Allows the tenant to continue to pay rent to the: (i) new landlord, (ii) the property manager at the time of the foreclosure, or (iii) the courts, through an escrow account.
Allows for the written property management agreement to continue in place following a foreclosure on a month-to-month basis until terminated by either the property manager or the new owner, unless a shorter period is provided for in the property management agreement.
This legislation does not change Virginia Code Section 55-248.15:1 that places the responsibility on the landlord at the lease termination to make disposition of the tenant’s security deposit, regardless of whether that landlord received the tenant’s security deposit from a prior landlord.