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Panel unanimously reports bill to notify buyers of illegal racial covenants at closing
Summary
HB39 would require settlement agents or attorneys who find an illegal racial covenant in a title search to notify buyers and sellers at closing and provide removal procedures; supporters said it raises awareness of removal options. Reported 10–0.
The chair described House Bill 39 as a straightforward measure to raise awareness about the existing process for removing illegal racial covenants from property deeds. Under current Virginia law, such covenants are unenforceable and homeowners may file a certificate of removal; HB39 would require settlement agents or settlement attorneys conducting title searches to notify buyers and sellers at closing when a covenant is found and provide information on the process to remove it.
Supporters including realtors and housing‑equity advocates (Housing Opportunities Made Equal) told the committee that many homeowners do not learn of historic covenants on their deeds during purchase and that a required notice would prompt more people to file certificates of removal.
The subcommittee adopted the motion to report HB39 and recorded a unanimous 10–0 vote.
