Administrative Code

Virginia Administrative Code
Title 10. Finance and Financial Institutions
Agency 5. State Corporation Commission
2/22/2019

Chapter 80. Real Estate Settlement Agent Rules

10VAC5-80-10. Definitions.

As used in this chapter:

"Affiliate" means a company the majority of the ownership interest in which is held, directly or indirectly, by a company which owns a financial institution.

"Bureau" means the State Corporation Commission Bureau of Financial Institutions.

"Company" includes natural persons and any and all types of organizations and legal entities.

"Financial institution" has the meaning set forth in § 6.2-100 of the Code of Virginia, and includes all such financial institutions authorized to do business in Virginia under Virginia or federal law.

"Party to the real estate transaction" (party) and "settlement agent" have the meanings set forth in § 55-525.16 of the Code of Virginia.

"Subsidiary" means a company the majority of the ownership interest in which is held, directly or indirectly, by a financial institution.

Statutory Authority

§ 55-525.20 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 13, Issue 25, eff. September 1, 1997; amended, Volume 28, Issue 20, eff. June 1, 2012.

10VAC5-80-20. Registration with the Virginia State Bar.

All financial institutions, and their subsidiaries and affiliates, acting in the capacity of a settlement agent shall register with the Virginia State Bar in accordance with the provisions of § 55-525.30 of the Code of Virginia.

Statutory Authority

§ 55-525.20 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 13, Issue 25, eff. September 1, 1997; amended, Volume 28, Issue 20, eff. June 1, 2012.

10VAC5-80-30. Financial responsibility requirements.

All financial institution subsidiaries and affiliates shall maintain in effect at all times while acting in the capacity of a settlement agent, and file original form or copy as specified in this chapter with the bureau at the time of registration with the Virginia State Bar and annually thereafter, the following:

1. An errors and omissions insurance policy, issued by an insurance company licensed to conduct business in Virginia, providing limits of at least $250,000 per occurrence or per claim, a copy thereof to be filed with the bureau;

2. A blanket fidelity bond with corporate surety licensed to conduct business in Virginia in the amount of at least $100,000 per occurrence or per claim, the original of such bond to be filed with the bureau; or an employee dishonesty insurance policy issued by an insurance company licensed to conduct business in Virginia, providing limits of at least $100,000 per occurrence or per claim, a copy thereof to be filed with the bureau. If the company has no employees except its owners, partners, shareholders or members, it may apply to the bureau for a waiver of the requirements of this subdivision; and

3. A bond with corporate surety licensed to conduct business in Virginia on a form prescribed by the Commissioner of Financial Institutions in the amount of at least $100,000, the original of such bond to be filed with the bureau.

Statutory Authority

§ 55-525.28 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 13, Issue 25, eff. September 1, 1997.

10VAC5-80-40. Escrow accounts and audits.

All funds received by a financial institution or financial institution subsidiary or affiliate, in the company's capacity of settlement agent and intended for distribution in whole or part to others, shall be deposited in a separate escrow account maintained in a bank, savings institution or credit union authorized to conduct business in Virginia. The company shall have the escrow account audited annually as provided in § 55-525.20 C of the Code of Virginia and conforming to the American Institute of Certified Public Accountants, Statement on Auditing Standards, Special Reports, and shall file a copy of the audit report with the bureau promptly.

Statutory Authority

§ 55-525.20 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 13, Issue 25, eff. September 1, 1997; amended, Volume 28, Issue 20, eff. June 1, 2012.

10VAC5-80-50. Unauthorized practice of law guidelines.

All financial institutions and financial institution subsidiaries and affiliates shall maintain a sufficient supply of the Virginia State Bar's Unauthorized Practice of Law Guidelines so that they can provide a copy of the guidelines to parties to real estate settlements who request them.

Statutory Authority

§ 55-525.28 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 13, Issue 25, eff. September 1, 1997.

10VAC5-80-60. Access to records.

All financial institutions and financial institution subsidiaries and affiliates acting as settlement agents shall give personnel of the bureau full access to all records relating to such business upon request.

Statutory Authority

§ 55-525.28 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 13, Issue 25, eff. September 1, 1997.

10VAC5-80-70. Parties not affected.

No company shall be deemed a settlement agent subject to this chapter if it provides escrow, closing or settlement services only in connection with real estate transactions to which it is a party.

Statutory Authority

§ 55-525.28 of the Code of Virginia.  

Historical Notes

Derived from Virginia Register Volume 13, Issue 25, eff. September 1, 1997.

Documents Incorporated by Reference (10VAC5-80)

Statement on Auditing Standards, Special Reports, July 1, 1989, American Institute of Certified Public Accountants.



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