We covered several of the changes the Virginia General Assembly made in its most recent session in SB1158 in our post last week. This week we’re covering the rest of them. (The changes to 25.1-204 dealing with title reports that were made in HB1690 and SB1158 were covered in our post week before last here.)

Va. Code § 25.1-313, “Institution of condemnation proceedings”, provides the time limit for when the condemnor has to file suit after filing a certificate of take. For many years it has been 180 days, but after July 1, that will be reduced to 100 days. An additional line was also added, that “The authorized condemnor and the property owner may mutually agree to delay the institution of condemnation proceedings by written agreement between the parties or counsel for the parties.” This new line seems largely unnecessary, since it just recognizes the existing practice in Virginia, although it seems like this line might have some relevance in cases involving more parties than just the condemnor and the landowner, i.e. cases that involve tenants who might be party to the case but not agreeable to such an extension. Va. Code § 25.1-318, “Petition by owner for determination of just compensation”, which tells us the statutory remedy for not complying with Va. Code § 25.1-313 , was also changed to match the reduced time limit.  Va. Code § 25.1-318, was also changed to allow the landowner to recover their attorneys’ fees and costs for the filing of such a petition, giving Va. Code § 25.1-313 significantly more teeth than it previously had. The same changes were made to Va. Code § 33.2-1025, and Va. Code § 33.2-1029.1, applicable to the Commissioner of Highways.

Va. Code 25.1-315 was changed so that interest on awards over the amount of the certificate of take in quick take cases will after July 1 be compounded daily. Previously it was simply interest. A change to Va. Code § 33.2-1023, also changes the interest rate paid on funds paid into court pursuant to certificates of deposit to also be compounded daily instead of simply interest. Va. Code § 33.2-1026, “Awards in greater or lesser amounts than deposit; interest,” also received the same change.

Va. Code § 33.2-1020, “Payment of certificates of deposit; recordation of certain certificates; notice to owner,” which deals with filing of certificates by the Commissioner of Highways, was changed to add additional language to be contained in the required notice, essentially just conforming this section to what was already in Va. Code 25.1-206:

C. The Commissioner of Highways shall give notice, between 30 and 45 days prior to the date on which any certificate will be filed or recorded pursuant to this chapter, give notice to the owner or tenant, if known, of the freehold by certified or registered mail that such certificate will be filed or recorded with respect to such person’s property. Such notice shall contain the following language, as appropriate: 1. “Within 30 to 45 days of the date of this notice, a certificate of take shall be recorded in the land records of the circuit court”; or 2. “Within 30 to 45 days of the date of this notice, a certificate of deposit shall be recorded in the land records of the circuit court.” Such notice shall also state that upon recordation of the certificate, the defeasible title to the property shall transfer to the Commissioner of Highways and that the owner has the right to petition the court for distribution of the funds represented by the certificate, subject to any preexisting liens or other encumbrances upon the property. Additionally, within four business days of the filing or recording of a certificate, the Commissioner of Highways shall give notice of such filing or recording to the owner or tenant, if known, of the freehold by providing a copy of such certificate by certified or registered mail.

Va. Code § 33.2-1022, “Certificates to describe land and list owner,” which was effectively the version of Va. Code 25.1-307 applicable to the Commissioner of Highways, has received the same extensive rework as 25.1-307 discussed in our post last week, with additional language added to make it contain essentially the same wording as Va. Code 25.1-307:

A. The certificate shall set forth the description of the land or interest therein being taken or damaged and, if known, the owner of such property. A certificate through which easement rights are acquired shall describe the rights and purposes for which the easement is being acquired.

B. The certificate shall include a plat, drawing, or plan, in sufficient detail to disclose fairly the nature of such work or improvements, including specifications, elevations, and grade changes, if any, so as to enable the owner of such property to be reasonably informed of the nature, extent, and effect of such taking. The certificate shall specify the size of the fee or easement area being taken and, if multiple overlapping easements are taken, the sizes of the overlapping and non-overlapping areas. The certificate shall also state the public use project for which the property is being taken.

C. If a temporary construction easement is being acquired, the certificate shall set forth the calendar date on which it shall expire, if such date is known or can be reasonably estimated, or, if certified to the Commissioner of Highways. If the Commissioner of Highways certifies that such date is not known, at such time the date is ascertained, the Commissioner of Highways shall file certification of the information as provided by subsection B D of § 25.1-307 and shall simultaneously provide the landowner or the landowner’s counsel, if any, a copy of such certification.

D. The Commissioner of Highways shall record a certificate of take or a certificate of deposit in the clerk’s office of the court where deeds are recorded. The clerk shall record such certificate in the deed book and index it in the names of both (i) the person who owned the land before the recordation of the certificate and (ii) the Commissioner of Highways.

SB1158 also repeals Va. Code § 25.1-205.1 which provided for a mandatory dispute resolution orientation session per § 8.01-576.5 in eminent domain matters.

It is worth noting that SB1158  has a specific enactment clause that provides as follows:

3. That the provisions of this act shall apply only to the taking of or damage to the property that has occurred on or after July 1, 2025, or a condemnation proceeding that has been filed on or after July 1, 2025, as appropriate.

4. That the provisions of § 25.1-204 of the Code of Virginia, as amended by this act, shall apply only to offers made to take or damage property that are made on or after January 1, 2026.

What changes, if any, would you like to see in Virginia’s condemnation code that would actually benefit the condemning authority? Feel free to comment or message here, or on our LinkedIn page, about that as we would love to hear ways that the condemnors can improve the process.

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Ross Greene is a firm shareholder and chair of the firm’s Eminent Domain / Right of Way Practice Group. He focuses his practice in the areas of eminent domain, real estate, wills, trusts, estates, and business matters.