Virginia SB649 requires notice for special land use property sales
Summary
Virginia Governor signed SB649 into law, establishing notice requirements for real estate sales of properties under special land use assessment programs. Starting January 1, 2027, settlement agents must provide purchasers with a written disclosure about special tax classifications and potential rollback tax liability, and obtain the purchaser's written acknowledgement. Willful failure to provide notice carries a civil penalty of up to $250 per violation.
What changed
Virginia SB649 enacts new notice and disclosure requirements for real estate transactions involving properties taxed under special land use assessment programs. The Department of Taxation must create a standardized written notice describing the property's special classification and purchaser's potential liability for rollback taxes if use changes. Settlement agents are now legally required to provide this notice to all buyers of land-use assessed properties and must obtain the purchaser's written acknowledgement of receipt.
Settlement agents and real estate professionals in Virginia must prepare for these new obligations by January 1, 2027. Non-compliance is subject to civil penalties up to $250 per violation for willful failures. The Real Estate Board must also update its residential property disclosure statement website to advise purchasers to conduct due diligence regarding potential rollback tax liability.
What to do next
- Settlement agents: prepare to deliver Virginia Department of Taxation notice to purchasers of land-use assessed properties before closing
- Settlement agents: obtain written buyer acknowledgement of receipt of the special assessment notice and retain records
- Property buyers: exercise due diligence to determine whether a property may be subject to rollback taxes and additional penalties
Penalties
Civil penalty not exceeding $250 per violation for willful failure of settlement agent to provide required notice and obtain purchaser acknowledgement
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
ChangeBridge / Virginia / SB649 Signed by Governor SB649 Senate Bill Signed by Governor 2026-04-06
Real property tax; special assessment on basis of use, notice requirements.
Real property tax; special assessment for land use; notice requirements; civil penalty. Establishes notice requirements for the sale of real estate that is valued, assessed, and taxed by a locality under a special assessment on the basis of use. The bill directs the Department of Taxation to create a written notice that may be provided to the purchaser of real estate in a land use program. The notice must include disclosures regarding the special classification of the real estate and liability for roll-back taxes if a change in use occurs. The bill also requires settlement agents to provide this written notice to purchasers of real estate in a land use program and to obtain the purchaser's written acknowledgement of receipt of the notice. The willful failure of a settlement agent to provide the notice and obtain the written acknowledgement will subject the settlement agent to a civil penalty in an amount not exceeding $250. The bill directs the Real Estate Board to include in the residential property disclosure statement on its website a statement that the owner makes no representations or warranties with respect to whether the property is located in a locality that has adopted a land-use plan that may provide use value assessment and taxation for certain real estate and that advises purchasers to exercise due diligence to determine whether the property may be subject to roll-back taxes and interest for taxation on the basis of a use assessment and the liability for additional taxes and penalties that may attach if a change in use occurs. Finally, the bill has a delayed effective date of January 1, 2027.
Bill Details
State Virginia
Session 2026 Regular Regular Session
Chamber Senate
Official Source lis.virginia.gov/bill-details/20261/SB649
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Sponsors
Mark Obenshain (Sen - R)
Action History
2026-04-06 Approved by Governor-Chapter 309 (effective 7/1/2026) 2026-04-06 Approved by Governor-Chapter 309 (effective 7/1/2026) 2026-03-23 S Fiscal Impact statement From TAX (3/23/2026 10:20 am) 2026-03-10 Governor's Action Deadline 11:59 p.m., April 13, 2026 2026-03-10 S Enrolled Bill communicated to Governor on March 10, 2026 2026-02-27 S Signed by President 2026-02-27 H Signed by Speaker 2026-02-27 S Bill text as passed Senate and House (SB649ER) 2026-02-27 S Enrolled 2026-02-25 S House amendment agreed to by Senate (40-Y 0-N 0-A) 2026-02-23 H Passed House with amendment (97-Y 0-N 0-A) 2026-02-23 H Engrossed by House as amended 2026-02-23 H committee amendment agreed to 2026-02-23 H Read third time 2026-02-20 H Read second time 2026-02-18 H Reported from Finance with amendment(s) (21-Y 0-N) 2026-02-18 H House committee offered 2026-02-18 S Fiscal Impact statement From TAX (2/18/2026 7:43 am) 2026-02-04 H Referred to Committee on Finance 2026-02-04 H Read first time 2026-02-04 H Placed on Calendar 2026-01-30 S Read third time and passed Senate (38-Y 0-N 0-A) 2026-01-29 S Engrossed by Senate - floor substitute 2026-01-29 S Engrossed by Senate Block Vote (Voice Vote) 2026-01-29 S Senator Obenshain Substitute agreed to 2026-01-29 S Reading of substitute waived (Voice Vote) 2026-01-29 S Floor offered Senator Obenshain Substitute 2026-01-29 S Read second time 2026-01-28 S Passed by for the day 2026-01-28 S Passed by for the day Block Vote (Voice Vote) 2026-01-28 S Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A) 2026-01-28 S Rules suspended 2026-01-27 S Reported from Finance and Appropriations (14-Y 0-N) 2026-01-26 S Fiscal Impact statement From TAX (1/26/2026 10:34 pm) 2026-01-14 S Referred to Committee on Finance and Appropriations 2026-01-14 S Prefiled and ordered printed; Offered 01-14-2026 26104707D
Votes
2026-01-27 Reported from Finance and Appropriations (14-Y 0-N) Yea: 14 Nay: 0 2026-01-28 Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A) Yea: 40 Nay: 0 2026-01-30 Read third time and passed Senate (38-Y 0-N 0-A) Yea: 38 Nay: 0 2026-02-18 Reported from Finance with amendment(s) Yea: 14 Nay: 0 2026-02-23 Passed House with amendment (97-Y 0-N 0-A) Yea: 97 Nay: 0
Committee Referrals
2026-01-14 S Finance and Appropriations 2026-02-04 H Finance
Amendments
0000-00-00 Finance Amendment 0000-00-00 Finance Amendment 0000-00-00 House Amendment
Bill Text Versions
2026-01-14 Introduced 2026-01-30 Comm Sub 2026-02-27 Enrolled Legislative data powered by LegiScan (CC BY 4.0)
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