Duty of settlement agent; restrictive covenants.

This legislation strengthens protections against discriminatory housing practices in Virginia by clarifying the responsibilities of real estate settlement agents. It mandates that when a settlement agent discovers a restrictive covenant—a rule historically used to prohibit the sale or rental of property based on race, religion, or national origin—they must clearly document and notify all parties involved. While these discriminatory clauses are already legally unenforceable, they often remain embedded in historical property deeds. By requiring agents to provide explicit notice, this bill ensures that homebuyers are fully aware of these outdated provisions during the closing process. Ultimately, the law promotes transparency in property transactions and reinforces the state's commitment to eradicating the legacy of systemic discrimination in local housing records.