2006 Code of Virginia § 6.1-2.9:3 - Disclosure of terms of assumption

6.1-2.9:3. Disclosure of terms of assumption.

A. An owner of residential real estate, improved by the construction thereonof housing consisting of four or less dwelling units, which is encumbered bya mortgage or deed of trust, shall have the right, upon written request toany holder holding such mortgage or deed of trust, to receive a writtendisclosure of whether such holder will permit a qualified purchaser to assumesuch mortgage or deed of trust, and, if the answer is in the affirmative, thefollowing terms of such assumption:

1. The rate of interest to be assumed, which may vary with an exteriorstandard;

2. The balance of the escrow account, if any;

3. Any fees and charges to be assessed by the holder against the seller andbuyer in connection with the assumption;

4. Usual limitations or requirements placed on the assumption; and

5. Other terms and conditions of the assumption deemed pertinent by theholder.

B. The holder shall state the time period during which the terms disclosedpursuant to subsection A of this section shall be valid, together with anylimitations thereon.

C. Any such holder receiving such a written request from an owner shallrespond in writing within ten business days of the receipt of the request.

D. Any such holder receiving a second or subsequent written request withrespect to the same mortgage or deed of trust within any twelve-month periodmay charge a fee, not to exceed fifteen dollars, for each additional requestto be paid in advance.

(1982, c. 233; 1990, c. 7.)