                                 CODE OF VIRGINIA

NOTICE TO TENANT IN EVENT OF FORECLOSURE (§ 55.1-1237)

A. The landlord of a dwelling unit used as a single-family residence shall give
written notice to the tenant or any prospective tenant of such dwelling unit
that the landlord has received a notice of a mortgage default, mortgage
acceleration, or foreclosure sale relative to the loan on the dwelling unit
within five business days after written notice from the lender is received by
the landlord. This requirement shall not apply (i) to any managing agent who
does not receive a copy of such written notice from the lender or (ii) if the
tenant or prospective tenant provides a copy of the written notice from the
lender to the landlord or the managing agent.

B. If the landlord fails to provide the notice required by this section, the
tenant shall have the right to terminate the rental agreement upon written
notice to the landlord at least five business days prior to the effective date
of termination. If the tenant terminates the rental agreement, the landlord
shall make disposition of the tenant&#8217;s security deposit in accordance with
law or the provisions of the rental agreement, whichever is applicable.

C. If the dwelling unit is foreclosed upon and there is a tenant in such
dwelling unit on the date of the foreclosure sale, the successor in interest who
acquires the dwelling unit at the foreclosure sale shall assume such interest
subject to the following:

   1. If the successor in interest acquires the dwelling unit for the purpose of
   occupying such unit as his primary residence, the successor in interest shall
   provide written notice to the tenant, in accordance with the provisions of
   &#xA7; 55.1-1202, notifying the tenant that the rental agreement is terminated
   and that the tenant must vacate the dwelling unit on a date not less than 90
   days after the date of such written notice.

   2. If the successor in interest acquires the dwelling unit for any other
   purpose, the successor in interest shall acquire the dwelling unit subject to
   the rental agreement and the tenant shall be permitted to occupy the dwelling
   unit for the remaining term of the lease, provided, however, that the
   successor in interest may terminate the rental agreement pursuant to &#xA7;
   55.1-1245 or the terms of the rental agreement. The successor in interest
   shall provide written notice to the tenant, in accordance with the provisions
   of &#xA7; 55.1-1202, informing the tenant of such.
   				The terms of the terminated rental agreement remain in effect except that
   the tenant shall make rental payments (i) to the successor owner as directed
   in a written notice to the tenant in this subsection; (ii) to the managing
   agent of the owner, if any, or successor owner; or (iii) into a court escrow
   account pursuant to the provisions of &#xA7; 55.1-1244; however, there is no
   obligation of a tenant to file a tenant&#8217;s assertion and pay rent into
   escrow. Where there is not a managing agent designated in the rental
   agreement, the tenant shall remain obligated for payment of the rent but shall
   not be held to be delinquent or assessed a late charge until the successor
   owner provides written notice identifying the name, address, and telephone
   number of the party to which the rent should be paid.

HISTORY: 2018, c. 221, § 55-248.21:3; 2019, c. 712; 2021, Sp. Sess. I, c. 426.