A. No service provider shall submit a real estate service agreement that violates subsection A of § 55.1-3202 to the circuit court or a state or local agency for recording. Any such submission constitutes a prohibited practice under the provisions of § 59.1-200 and shall be subject to the provisions of the Virginia Consumer Protection Act (§ 59.1-196 et seq.).

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Terms Used In Virginia Code 55.1-3204

  • Lien: A claim against real or personal property in satisfaction of a debt.
  • real estate: includes lands, tenements and hereditaments, and all rights and appurtenances thereto and interests therein, other than a chattel interest. See Virginia Code 1-219
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245

B. A real estate service agreement that violates subsection A of § 55.1-3202, or a notice or memorandum thereof, is void and unenforceable and shall not operate as a lien, encumbrance, or security interest. No owner or buyer shall be required to record any document voiding a real estate service agreement that is in violation of subsection A of § 55.1-3202, or notice or memorandum thereof, recorded in violation of this section.

C. Notwithstanding subsection A, no recorded real estate service agreement that is in violation of subsection A of § 55.1-3202 may provide actual or constructive notice of a lien arising from the service agreement to any party interested in the residential real property identified in the service agreement.

2024, cc. 328, 362.