HB 788

            
2020 SESSION


20107122D

HOUSE BILL NO. 788

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the House Committee on General Laws

on January 30, 2020)

(Patron Prior to Substitute--Delegate Bagby)

A BILL to amend and reenact �� 55.1-300 and 58.1-810 of the Code
of Virginia and to amend the Code of Virginia by adding a section numbered
55.1-300.1, relating to restrictive covenants, deeds of reformation.

Be it enacted by the General Assembly of Virginia:

1. That �� 55.1-300 and 58.1-810 of the Code of Virginia are
amended and reenacted and that the Code of Virginia is amended by adding a
section numbered 55.1-300.1 as follows:

� 55.1-300. Form of a deed.

Every deed and corrected or amended deed may be made in the
following form, or to the same effect: "This deed, made the ______ day of
______, in the year ____, between (here insert names of parties as grantors or
grantees), witnesseth: that in consideration of (here state the consideration,
nominal or actual), the said ________ does (or do) grant (or grant and convey)
unto the said ________, all (here describe the property or interest therein to
be conveyed, including the name of the city or county in which the property is
located, and insert covenants or any other provisions). Witness the following
signature (or signatures)."

No deed recorded on or after July 1, 2020, shall contain a
reference to the specific portion of a restrictive covenant purporting to
restrict the ownership or use of the property as prohibited by subsection A of
� 36-96.6. The clerk may refuse to accept any deed submitted for recordation
that references the specific portion of any such restrictive covenant. The
attorney who prepares or submits a deed for recordation has the responsibility
of ensuring that the specific portion of such a restrictive covenant is not
specifically referenced in the deed prior to such deed being submitted for
recordation. A deed may include a general provision that states that
such deed is subject to any and all covenants and restrictions of record;
however, such provision shall not apply to the specific portion of a
restrictive covenant purporting to restrict the ownership or use of the
property as prohibited by subsection A of � 36-96.6. Any deed that is recorded
in the land records on or after July 1, 2020, that mistakenly contains such a
restrictive covenant shall nevertheless constitute a valid transfer of real
property.

� 55.1-300.1. Certificate of Release of Certain Prohibited
Covenants.

Any restrictive covenant prohibited by subsection A of �
36-96.6 may be released by the owner of real property subject to such covenant
by recording a Certificate of Release of Certain Prohibited Covenants. The real
property owner may record such certificate (i) prior to recordation of a deed
conveying real property to a purchaser or (ii) when such real property owner
discovers that such prohibited covenant exists and chooses to affirmatively
release the same. Such certificate may be prepared without assistance of an
attorney, but shall conform substantially to the following Certificate of
Release of Certain Prohibited Covenants form:

"CERTIFICATE OF RELEASE OF CERTAIN PROHIBITED
COVENANTS

Place of Record: ____________________

Date of Instrument containing prohibited covenant(s):
______

Instrument Type: _________________________

Deed Book ______ Page ____ or Plat Book _______ Page_____

Name(s) of Grantor(s): ________________

Name(s) of Current Owner(s): ________________

Real Property Description:______________________

Brief Description of Prohibited Covenant:
______________________

The covenant contained in the above-mentioned instrument is
released from the above-described real property to the extent that it contains
terms purporting to restrict the ownership or use of the property as prohibited
by subsection A of � 36-96.6. 

The undersigned is/are the legal owner(s) of the property
described herein.

Given under my/our hand(s) this ________ day of ________,
20__.

________________

________________

(Current Owners)

Commonwealth of Virginia,

County/City of ____________ to wit:

Subscribed, sworn to, and acknowledged before me by
____________ this ________ day of ________, 20__.

My Commission Expires: ____________

________________

NOTARY PUBLIC

Notary Registration Number: ____________

The clerk shall satisfy the requirements of � 17.1-228."

� 58.1-810. What other deeds not taxable.

When the tax has been paid at the time of the recordation of
the original deed, no additional recordation tax shall be required for
admitting to record:

1. A deed of confirmation;

2. A deed of correction;

3. A deed to which a husband and wife are the only parties;

4. A deed arising out of a contract to purchase real estate;
if the tax already paid is less than a proper tax based upon the full amount of
consideration or actual value of the property involved in the transaction, an
additional tax shall be paid based on the difference between the full amount of
such consideration or actual value and the amount on which the tax has been
paid; or

5. A notice of assignment of a note secured by a deed of trust
or mortgage; or

6. A Certificate of Release of Certain Prohibited Covenants
pursuant to � 55.1-300.1.