6.2-419 - (Effective October 1, 2010) Disclosure of terms of assumption. - Virginia Statutes

§ 6.2-419. (Effective October 1, 2010) Disclosure of terms of assumption.

A. An owner of residential real estate that is improved by the constructionthereon of housing consisting of four or fewer dwelling units and encumberedby a mortgage or deed of trust shall have the right, upon written request toany holder of the obligation secured by the mortgage or deed of trust, toreceive a written disclosure of whether the holder will permit a qualifiedpurchaser to assume the mortgage or deed of trust. If the answer is in theaffirmative, the holder shall disclose the following information regardingthe 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 shall be valid, together with any limitationsthereon.

C. Any holder receiving such a written request from an owner shall respond inwriting within 10 business days of the receipt of the request.

D. Any holder receiving a second or subsequent written request with respectto the same mortgage or deed of trust within any 12-month period may charge afee, not to exceed $15, for each additional request. The fee shall be paid inadvance.

(1982, c. 233, § 6.1-2.9:3; 1990, c. 7; 2010, c. 794.)