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Bill

HB 1704

Resale Disclosure Act; resale certificate, responsibility for payment of insurance deductible.

2025 Regular Session Introduced by David Bulova

Virginia law now requires clearer disclosure of homeowners insurance deductible responsibility in property resale transactions, effective July 1, 2025.

Acts of Assembly Chapter text (CHAP0014)
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Bill Summary · HB 1704

Legislative bill overview

HB 1704 modifies Virginia's resale disclosure requirements by clarifying responsibility for insurance deductible payments in property transactions. The bill specifies how homeowners insurance deductibles must be disclosed and allocated between sellers and buyers when properties are sold, effective July 1, 2025.

Why is this important

Insurance deductibles represent significant out-of-pocket costs for new homeowners, and unclear responsibility can lead to disputes during closing. This clarification protects both buyers and sellers by establishing transparent expectations about who bears deductible costs for pre-existing or newly discovered damage, reducing transaction friction and potential litigation.

Potential points of contention

  • Cost allocation disputes: The bill's specific allocation method may disadvantage either buyers or sellers depending on property condition, creating debate over fairness in different scenarios
  • Implementation complexity: Real estate professionals and insurers may face administrative challenges interpreting and applying the new disclosure requirements consistently across transactions
  • Coverage gaps: The bill may not address all deductible scenarios (e.g., multiple claims, builder defects vs. natural damage), potentially leaving some disputes unresolved

Compiled from official sources — confirm details with the bill’s official record.

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