Virginia Law

A. Prior to settlement, the settlement agent shall exercise ordinary care to reasonably ascertain the identity of a seller of real property. Methods of exercising such ordinary care may include (i) obtaining satisfactory evidence of identity as defined in § 47.1-2; (ii) requiring multiple forms of photo identification; (iii) a written statement from the seller's attorney that he has reasonably ascertained the identity of the seller of the real property; (iv) reviewing land records for the subject property; (v) comparing signatures; (vi) performing a credit check; or (vii) asking detailed questions about the subject property.

B. The settlement agent shall cause recordation of the deed, the deed of trust, or the mortgage or other documents required to be recorded and shall cause disbursement of settlement proceeds within two business days of settlement. A settlement agent may not disburse any or all loan funds or other funds coming into its possession prior to the recordation of any instrument except (i) funds received that are overpayments to be returned to the provider of such funds, (ii) funds necessary to effect the recordation of instruments, or (iii) funds that the provider has by separate written instrument directed to be disbursed prior to recordation of any instrument. Additionally, in any transaction involving the purchase or sale of an interest in residential real property, the settlement agent shall provide notification to the purchaser of (a) the availability of owner's title insurance as required under § 38.2-4616 and (b) the purchaser's right under § 55.1-300.1 to remove a restrictive covenant prohibited by § 36-96.6 that is contained in an instrument affecting the title of the property and disclosed as the result of a title search performed pursuant to the transaction.

C. A settlement agent who uses any of the methods to reasonably ascertain the identity of a seller of real property described in subsection A shall not be liable for any act or omission resulting from his reliance on such information when moving forward with a settlement and recordation of the deed, deed of trust, or mortgage or other documents required to be recorded pursuant to the settlement, provided that the (i) settlement agent did not have actual knowledge that the information provided was false or (ii) act or omission was not a result of the settlement agent's gross negligence or willful misconduct.

1980, c. 730, § 6.1-2.13; 1987, c. 576; 1992, c. 733; 1996, c. 883; 2010, c. 794, § 55-525.11; 2019, c. 712; 2026, cc. 359, 364, 365.