2025 Virginia Legislative Changes Affecting Community Associations

The Virginia General Assembly continued to take an interest in the important work of community associates in its 2025 session. We highlight below notable changes that may affect property owners’ associations and condominium unit owner associations.

These changes will take effect on July 1, 2025.

Resale Certificate Changes

The General Assembly made several changes to the requirements regarding resale disclosures for associations in recent years. That continued in 2025:

• The resale certificate must provide notice that the governing documents may make an owner of property in the association responsible for paying an insurance deductible for a policy procured by the association if there is a claim made. (Amends Va. Code § 55.1-2310)
• An association cannot require that a purchaser’s name be disclosed before preparing a resale certificate nor that the purchaser’s name be on the completed one. (Amends Va. Code §§ 55.1-2309, 55.1-2310)

Management Contracts

In 2023, the General Assembly passed legislation that allows either an association or management company that has a contract with an automatic renewal provision to terminate the agreement at any time without cause by providing at least 60 days’ notice.

The General Assembly clarified this provision regarding management agreements this year and added the following:

• There can be no penalty associated with exercising the right to terminate a management contract with 60 days’ notice.
• The management company must transfer and release all funds and bank accounts within a reasonable time after a change in management without additional costs to the association. (Amends Va. Code §§ 54.1-2353, 54.1-2354.5, 55.1-1837, 55.1-1940.1)

Dam Safety

Associations that have dams in their communities should pay close attention to changes in Virginia law affecting things such as grants, permitting, inspections, and unsafe structures in 2025. (Amends Va. Code §§ 10.1-603.19, 10.1-604.1, 10.1-605, 10.1-605.3, 10.1-606.2, 10.1-606.3, 10.1-607, 10.1-608, 10.1-609, 10.1-612.1, and 10.1-613.6.)

Tax Sales

When property is sold for failure to pay taxes, lienholders must be named defendants in the suit. Thus, associations with liens on real property will be named as defendants in tax sale suits. (Amends Va. Code §§ 8.01-268, 8.01-317, 8.01-318, 8.01-321, 8.01-623, 58.1-3965, 58.1-3967, 58.1-3968, 58.1-3970.1, 58.1-3973, 58.1-3974)

Expansion of Jurisdiction of General District Courts

This change affects not just associations, but litigation throughout Virginia.

The General Assembly previously expanded the jurisdiction of the general district courts to include all personal injury cases with an amount in controversy up to $50,000 (increasing it from $25,000).

But this year, the General Assembly applied the increased jurisdictional amount to all cases. (Amends Va. Code § 16.1-77)

As shown above, there are significant changes in the law this year that will affect associations and other stakeholders when they become effective on July 1, 2025.

Associations, managers, and business partners should pay close attention to these new laws and reach out to the author of this article or a member of the Community Associations team for assistance and with any questions.