Over the past year, we have tracked a few bills that if passed would affect property rights, real estate transactions, and eminent domain in Virginia.

On February 7, 2019, the General Assembly passed Senate Bill 1422, in response to The Game Place, L.L.C., et al. v. Fredericksburg 35, LLC,[1] a case we pointed out in a post last year. In summary, the Court found that a commercial lease was unenforceable as to its term because the lease lacked a seal. This holding was a shock to the real estate industry and a call to action for legislators. The new legislation amends Sections 55-2, 55-57, 55-76, 55-77, 55-79, and 58.1-807 of the Code of Virginia to undo the holding in Game Place. The bill included an emergency provision allowing it to take immediate effect upon signature by the Governor. The Governor signed the bill on February 13th, 2019.

Another bill that we were tracking would have had a significant effect on eminent domain proceedings in Virginia if it had passed. Senate Bill 1039 would have removed the option for commissioners to determine just compensation in condemnation proceedings, but the bill was passed by indefinitely in committee. With this bill in place, landowners would have no longer have been able to select their friends and business associates to determine the compensation the landowner is to be paid in eminent domain proceedings.[2] We will keep you updated on whether the General Assembly considers another iteration of this bill next session.

[1] The Game Place, L.L.C., et al. v. Fredericksburg 35, LLC, 295 Va. 396, 813 S.E.2d 312 (Va. 2018).

[2] You can read more about Virginia’s bizarre commissioner system in a previous post on this blog, Welcome to Virginia: Where Your Friends Can Determine Your Just Compensation!