Virginia Code 55.1-1205: Prepaid rent; maintenance of escrow account.
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A landlord and a tenant may agree in a rental agreement that the tenant pay prepaid rent. If a landlord receives prepaid rent, it shall be placed in an escrow account in a federally insured depository authorized to do business in Virginia by the end of the fifth business day following receipt and shall remain in the account until such time as the prepaid rent becomes due. Unless the landlord has otherwise become entitled to receive any portion of the prepaid rent, it shall not be removed from the escrow account required by this section without the written consent of the tenant.
Terms Used In Virginia Code 55.1-1205
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Landlord: means the owner, lessor, or sublessor of the dwelling unit or the building of which such dwelling unit is a part. See Virginia Code 55.1-1200
- Rent: means all money, other than a security deposit, owed or paid to the landlord under the rental agreement, including prepaid rent paid more than one month in advance of the rent due date. See Virginia Code 55.1-1200
- Tenant: means a person entitled only under the terms of a rental agreement to occupy a dwelling unit to the exclusion of others and includes a roomer. See Virginia Code 55.1-1200
2002, c. 531, § 55-248.7:1; 2015, c. 596; 2017, c. 730; 2019, c. 712.