§ 6.1-2.21. (Repealed effective October 1, 2010) Licensing requirements,standards and financial responsibility.
A. A person shall not act in the capacity of a settlement agent, and alender, seller, purchaser or borrower may not contract with any person to actin the capacity of a settlement agent with respect to real estate settlementsin this Commonwealth unless the person (i) has not been convicted of a felonyand, if convicted, has not had his civil rights restored by the Governor orbeen granted a writ of actual innocence, and (ii) is licensed as an attorneyunder Chapter 39 (§ 54.1-3900 et seq.) of Title 54.1, is licensed as a titleinsurance company or title insurance agent under Title 38.2, is licensed as areal estate broker under Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1, oris a financial institution authorized to do business in this Commonwealthunder any of the provisions of Title 6.1 or under federal law or is asubsidiary or affiliate of such financial institution. Any title insuranceagent acting in the capacity of a settlement agent shall be appointed by atitle insurance company licensed in the Commonwealth pursuant to Chapter 18(§ 38.2-1800 et seq.) of Title 38.2. Any such person, not acting in thecapacity of a settlement agent, shall not be subject to the provisions ofthis chapter.
B. Notwithstanding any rule of court to the contrary, a settlement agentoperating in compliance with the requirements of this chapter or a party tothe real estate transaction may provide escrow, closing or settlementservices and receive compensation for such services.
C. A settlement agent shall exercise reasonable care and comply with allapplicable requirements of this chapter and its licensing authority regardinglicensing, financial responsibility, errors and omissions or malpracticeinsurance policies, fidelity bonds, employee dishonesty insurance policies,audits, escrow account analyses and record retention.
D. A settlement agent other than a financial institution described insubsection A or title insurance company as defined in § 38.2-4601, shallmaintain the following to the satisfaction of the appropriate licensingauthority:
1. An errors and omissions or malpractice insurance policy providing aminimum of $250,000 in coverage;
2. A blanket fidelity bond or employee dishonesty insurance policy coveringpersons employed by the settlement agent providing a minimum of $100,000 incoverage. When the settlement agent has no employees except the owners,partners, shareholders or members, the settlement agent may apply to theappropriate licensing authority for a waiver of this fidelity bond oremployee dishonesty requirement; and
3. A surety bond of not less than $200,000.
E. 1. A settlement agent, other than an attorney or a title insurance companyif such company's financial statements are audited annually by an independentcertified public accountant, shall, at its expense, have an audit of itsescrow accounts conducted by an independent certified public accountant atleast once each consecutive 12-month period. The appropriate licensingauthority shall require the settlement agent to provide a copy of its auditreport to the licensing authority no later than 60 days after the date onwhich the audit is completed. A settlement agent that is a licensed titleinsurance agent under Title 38.2 shall also provide a copy of the auditreport to each title insurance company which it represents.
2. In lieu of such annual audit, a settlement agent that is licensed as atitle insurance agent under Title 38.2 shall allow each title insurancecompany for which it has an appointment to conduct an analysis of its escrowaccounts in accordance with regulations promulgated by the State CorporationCommission or guidelines issued by the Bureau of Insurance of the StateCorporation Commission, as appropriate, at least once each consecutive12-month period and each title insurance company conducting such analysisshall submit a copy of its analysis report to the appropriate licensingauthority no later than 60 days after the date on which the analysis iscompleted. With the consent of the title insurance agent, a title insurancecompany may share the results of its analysis with other title insurancecompanies that will accept the same in lieu of conducting a separate analysis.
3. A title insurance company shall retain a copy of the analysis or auditreport, as applicable, for each title insurance agent it has appointed andsuch reports and other records of the insurance company's activities as asettlement agent shall be made available to the appropriate licensingauthority when examinations are conducted pursuant to provisions in Title38.2.
F. A person who has been convicted of a felony involving fraud, deceit ormisrepresentation shall not assist a settlement agent in the performance ofescrow, closing or settlement services involving, and a settlement agentshall not employ a person who has been convicted of a felony involving fraud,deceit or misrepresentation in an administrative or clerical capacity thatinvolves, the receipt or disbursement of funds from real estate settlementsin the Commonwealth.
(1997, c. 716; 1998, c. 69; 2000, c. 549; 2002, c. 464; 2007, c. 898; 2008,c. 92.)
§ 6.1-2.21. (Repealed effective October 1, 2010) Licensing requirements,standards and financial responsibility.
A. A person shall not act in the capacity of a settlement agent, and alender, seller, purchaser or borrower may not contract with any person to actin the capacity of a settlement agent with respect to real estate settlementsin this Commonwealth unless the person (i) has not been convicted of a felonyand, if convicted, has not had his civil rights restored by the Governor orbeen granted a writ of actual innocence, and (ii) is licensed as an attorneyunder Chapter 39 (§ 54.1-3900 et seq.) of Title 54.1, is licensed as a titleinsurance company or title insurance agent under Title 38.2, is licensed as areal estate broker under Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1, oris a financial institution authorized to do business in this Commonwealthunder any of the provisions of Title 6.1 or under federal law or is asubsidiary or affiliate of such financial institution. Any title insuranceagent acting in the capacity of a settlement agent shall be appointed by atitle insurance company licensed in the Commonwealth pursuant to Chapter 18(§ 38.2-1800 et seq.) of Title 38.2. Any such person, not acting in thecapacity of a settlement agent, shall not be subject to the provisions ofthis chapter.
B. Notwithstanding any rule of court to the contrary, a settlement agentoperating in compliance with the requirements of this chapter or a party tothe real estate transaction may provide escrow, closing or settlementservices and receive compensation for such services.
C. A settlement agent shall exercise reasonable care and comply with allapplicable requirements of this chapter and its licensing authority regardinglicensing, financial responsibility, errors and omissions or malpracticeinsurance policies, fidelity bonds, employee dishonesty insurance policies,audits, escrow account analyses and record retention.
D. A settlement agent other than a financial institution described insubsection A or title insurance company as defined in § 38.2-4601, shallmaintain the following to the satisfaction of the appropriate licensingauthority:
1. An errors and omissions or malpractice insurance policy providing aminimum of $250,000 in coverage;
2. A blanket fidelity bond or employee dishonesty insurance policy coveringpersons employed by the settlement agent providing a minimum of $100,000 incoverage. When the settlement agent has no employees except the owners,partners, shareholders or members, the settlement agent may apply to theappropriate licensing authority for a waiver of this fidelity bond oremployee dishonesty requirement; and
3. A surety bond of not less than $200,000.
E. 1. A settlement agent, other than an attorney or a title insurance companyif such company's financial statements are audited annually by an independentcertified public accountant, shall, at its expense, have an audit of itsescrow accounts conducted by an independent certified public accountant atleast once each consecutive 12-month period. The appropriate licensingauthority shall require the settlement agent to provide a copy of its auditreport to the licensing authority no later than 60 days after the date onwhich the audit is completed. A settlement agent that is a licensed titleinsurance agent under Title 38.2 shall also provide a copy of the auditreport to each title insurance company which it represents.
2. In lieu of such annual audit, a settlement agent that is licensed as atitle insurance agent under Title 38.2 shall allow each title insurancecompany for which it has an appointment to conduct an analysis of its escrowaccounts in accordance with regulations promulgated by the State CorporationCommission or guidelines issued by the Bureau of Insurance of the StateCorporation Commission, as appropriate, at least once each consecutive12-month period and each title insurance company conducting such analysisshall submit a copy of its analysis report to the appropriate licensingauthority no later than 60 days after the date on which the analysis iscompleted. With the consent of the title insurance agent, a title insurancecompany may share the results of its analysis with other title insurancecompanies that will accept the same in lieu of conducting a separate analysis.
3. A title insurance company shall retain a copy of the analysis or auditreport, as applicable, for each title insurance agent it has appointed andsuch reports and other records of the insurance company's activities as asettlement agent shall be made available to the appropriate licensingauthority when examinations are conducted pursuant to provisions in Title38.2.
F. A person who has been convicted of a felony involving fraud, deceit ormisrepresentation shall not assist a settlement agent in the performance ofescrow, closing or settlement services involving, and a settlement agentshall not employ a person who has been convicted of a felony involving fraud,deceit or misrepresentation in an administrative or clerical capacity thatinvolves, the receipt or disbursement of funds from real estate settlementsin the Commonwealth.
(1997, c. 716; 1998, c. 69; 2000, c. 549; 2002, c. 464; 2007, c. 898; 2008,c. 92.)
§ 6.1-2.21. (Repealed effective October 1, 2010) Licensing requirements,standards and financial responsibility.
A. A person shall not act in the capacity of a settlement agent, and alender, seller, purchaser or borrower may not contract with any person to actin the capacity of a settlement agent with respect to real estate settlementsin this Commonwealth unless the person (i) has not been convicted of a felonyand, if convicted, has not had his civil rights restored by the Governor orbeen granted a writ of actual innocence, and (ii) is licensed as an attorneyunder Chapter 39 (§ 54.1-3900 et seq.) of Title 54.1, is licensed as a titleinsurance company or title insurance agent under Title 38.2, is licensed as areal estate broker under Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1, oris a financial institution authorized to do business in this Commonwealthunder any of the provisions of Title 6.1 or under federal law or is asubsidiary or affiliate of such financial institution. Any title insuranceagent acting in the capacity of a settlement agent shall be appointed by atitle insurance company licensed in the Commonwealth pursuant to Chapter 18(§ 38.2-1800 et seq.) of Title 38.2. Any such person, not acting in thecapacity of a settlement agent, shall not be subject to the provisions ofthis chapter.
B. Notwithstanding any rule of court to the contrary, a settlement agentoperating in compliance with the requirements of this chapter or a party tothe real estate transaction may provide escrow, closing or settlementservices and receive compensation for such services.
C. A settlement agent shall exercise reasonable care and comply with allapplicable requirements of this chapter and its licensing authority regardinglicensing, financial responsibility, errors and omissions or malpracticeinsurance policies, fidelity bonds, employee dishonesty insurance policies,audits, escrow account analyses and record retention.
D. A settlement agent other than a financial institution described insubsection A or title insurance company as defined in § 38.2-4601, shallmaintain the following to the satisfaction of the appropriate licensingauthority:
1. An errors and omissions or malpractice insurance policy providing aminimum of $250,000 in coverage;
2. A blanket fidelity bond or employee dishonesty insurance policy coveringpersons employed by the settlement agent providing a minimum of $100,000 incoverage. When the settlement agent has no employees except the owners,partners, shareholders or members, the settlement agent may apply to theappropriate licensing authority for a waiver of this fidelity bond oremployee dishonesty requirement; and
3. A surety bond of not less than $200,000.
E. 1. A settlement agent, other than an attorney or a title insurance companyif such company's financial statements are audited annually by an independentcertified public accountant, shall, at its expense, have an audit of itsescrow accounts conducted by an independent certified public accountant atleast once each consecutive 12-month period. The appropriate licensingauthority shall require the settlement agent to provide a copy of its auditreport to the licensing authority no later than 60 days after the date onwhich the audit is completed. A settlement agent that is a licensed titleinsurance agent under Title 38.2 shall also provide a copy of the auditreport to each title insurance company which it represents.
2. In lieu of such annual audit, a settlement agent that is licensed as atitle insurance agent under Title 38.2 shall allow each title insurancecompany for which it has an appointment to conduct an analysis of its escrowaccounts in accordance with regulations promulgated by the State CorporationCommission or guidelines issued by the Bureau of Insurance of the StateCorporation Commission, as appropriate, at least once each consecutive12-month period and each title insurance company conducting such analysisshall submit a copy of its analysis report to the appropriate licensingauthority no later than 60 days after the date on which the analysis iscompleted. With the consent of the title insurance agent, a title insurancecompany may share the results of its analysis with other title insurancecompanies that will accept the same in lieu of conducting a separate analysis.
3. A title insurance company shall retain a copy of the analysis or auditreport, as applicable, for each title insurance agent it has appointed andsuch reports and other records of the insurance company's activities as asettlement agent shall be made available to the appropriate licensingauthority when examinations are conducted pursuant to provisions in Title38.2.
F. A person who has been convicted of a felony involving fraud, deceit ormisrepresentation shall not assist a settlement agent in the performance ofescrow, closing or settlement services involving, and a settlement agentshall not employ a person who has been convicted of a felony involving fraud,deceit or misrepresentation in an administrative or clerical capacity thatinvolves, the receipt or disbursement of funds from real estate settlementsin the Commonwealth.
(1997, c. 716; 1998, c. 69; 2000, c. 549; 2002, c. 464; 2007, c. 898; 2008,c. 92.)
