Earlier this year, the Virginia General Assembly removed the statutory requirement that any lease with a term in excess of five years must be in the form of a deed of lease. Virginia had long had a statutory requirement that such leases be in the form of a deed of lease. However, the issue was thrust into the spotlight last year by the Virginia Supreme Court’s decision in The Game Place, L.L.C. v. Fredericksburg (35, LLC, 813 S.E.2d 312 (Va. 2018)), which had the effect of converting any such long-term leases not in the deed of lease form to month-to-month leases. The Game Place decision sparked panic among landlords and tenants who found themselves parties to leases that did not comply with the statute. 

Recognizing the potential impact of the Game Place decision on countless leases, the General Assembly passed the amendment to take effect immediately on February 13 and to apply retroactively to leases executed before the amendment. Although the deed-of-lease requirement has been repealed, it is important to ensure that all leases are reviewed for compliance with the state and local laws of the applicable jurisdiction.