54.1-2108.1 - Protection of escrow funds, etc., held by a real estate broker in the event of foreclosure of real property.
§ 54.1-2108.1. Protection of escrow funds, etc., held by a real estate brokerin the event of foreclosure of real property.
Notwithstanding any other provision of law:
1. If a licensed real estate broker or an agent of the licensee is holdingescrow funds for the owner of real property and such property is foreclosedupon by a lender, the licensee or an agent of the licensee shall have theright to file an interpleader action pursuant to § 16.1-77.
2. If there is in effect at the date of the foreclosure sale, a real estatepurchase contract to buy the property foreclosed upon and the real estatepurchase contract provides that the earnest money deposit held in escrow by alicensee shall be paid to a party to the contract in the event of atermination of the real estate purchase contract, the foreclosure shall bedeemed a termination of the real estate purchase contract and the licensee oran agent of the licensee may, absent any default on the part of thepurchaser, disburse the earnest money deposit to the purchaser pursuant tosuch provisions of the real estate purchase contract without further consentfrom, or notice to, the parties.
3. If there is in effect at the date of the foreclosure sale, a tenant in aresidential dwelling unit foreclosed upon and the landlord is holding asecurity deposit of the tenant, the landlord shall handle the securitydeposit in accordance with applicable law, which requires the holder of thelandlord's interest in the dwelling unit at the time of termination oftenancy to return any security deposit and any accrued interest that is dulyowed to the tenant, whether or not such security deposit is transferred withthe landlord's interest by law or equity, and regardless of any contractualagreements between the original landlord and his successors in interest.Nothing herein shall be construed to prevent the landlord from making lawfuldeductions from the security deposit in accordance with applicable law.
(2010, c. 181.)