Title 55.1. Property and Conveyances
Chapter 10. Real Estate Settlement Agents
§ 55.1-1008.1. (Effective January 1, 2027) Requirements when providing escrow, closing, or settlement services for real estate in land-use program; civil penalty.
A. For any real estate transaction wherein a settlement agent (i) provides escrow, closing, or settlement services and (ii) knows that the real estate subject to the real estate transaction is valued, assessed, and taxed by the locality under a special assessment on the basis of use pursuant to Article 4 (§ 58.1-3230 et seq.) of Chapter 32 of Title 58.1, the settlement agent shall:
1. Provide the written notice required under § 58.1-3234.1 to the purchaser prior to settlement; and
2. Obtain written acknowledgement that the purchaser received such notice at or before settlement.
B. The settlement agent shall retain the purchaser's written acknowledgement for a minimum of five years after the settlement is completed.
C. Failure of the settlement agent to provide the notice required by subsection A shall not (i) affect the validity of any assessment; (ii) relieve the purchaser of liability for any tax, penalty, or interest that may become due under Article 4 (§ 58.1-3230 et seq.) of Chapter 32 of Title 58.1; or (iii) create a private cause of action against the Commonwealth, any locality, any settlement agent, or any officer or employee thereof.
D. The willful failure of any settlement agent to comply with this section shall be considered a violation of this chapter, and such agent shall be subject to a civil penalty of no more than $250.
E. The Virginia State Bar, in consultation with the Commission and the Department of Taxation, shall develop guidelines for settlement agents designed to assist them in determining whether real estate subject to a real estate transaction is valued, assessed, and taxed by the locality under a special assessment on the basis of use.
