{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/54.1-2108.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/54.1-2108.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/54.1-2108.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/54.1-2108.2.html"}],"law_id":57978,"edition_id":1,"section_id":57978,"structure_id":12757,"section_number":"54.1-2108.2","catch_line":"Protection of escrow funds, etc., held by a real estate broker in the event of termination of a real estate purchase contract","history":"2018, cc. 60, 86; 2019, cc. 179, 395; 2022, c. 380.","full_text":"Notwithstanding any other provision of law, for purchase transactions:\n\n1\n\nUpon the ratification of a contract, an earnest money deposit received by the principal broker or supervising broker, or an agent of such principal broker or supervising broker, that is to be held in the firm&#8217;s escrow account shall be placed in such escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the principals to the transaction, and shall remain in that account until the transaction has been consummated or terminated.2\n\nIf a principal broker or supervising broker, or an agent of such principal broker or supervising broker, receives an earnest money deposit that will not be held in the firm&#8217;s escrow account, the principal broker or supervising broker shall ensure that the earnest money deposit is delivered to the escrow agent named in the contract by the end of the fifth business banking day following receipt of the deposit, unless otherwise agreed to in writing by the principals to the transaction.3\n\nIn the event that the transaction is not consummated, the principal broker or supervising broker shall hold such funds in escrow until (i) all principals to the transaction have agreed in a written agreement as to their disposition, upon which the funds shall be returned to the agreed-upon principal as provided in such written agreement; (ii) a court of competent jurisdiction orders such disbursement of the funds; (iii) the funds are successfully interpleaded into a court of competent jurisdiction pursuant to this section; or (iv) the broker releases the funds to the principal to the transaction who is entitled to receive them in accordance with the clear and explicit terms of the contract that established the earnest money deposit.\n\t\t\tAt the option of a broker, written notice may be sent by the broker that release of such funds shall be made unless a written protest is received from the principal who is not receiving the funds by such broker within 15 calendar days of the date of such notice. Notice of a disbursement shall be given to the parties to the transaction in accordance with the contract, but if the contract does not specify a method of delivery, one of the following methods complies with this section: (a) hand delivery; (b) United States mail, postage prepaid, provided that the sender retains sufficient proof of mailing, which may be either a United States postal certificate of mailing or a certificate of service prepared by the sender confirming such mailing; (c) electronic means, provided that the sender retains sufficient proof of the electronic delivery, which may be an electronic receipt of delivery, a confirmation that the notice was sent by facsimile, or a certificate of service prepared by the sender confirming the electronic delivery; or (d) overnight delivery using a commercial service or the United States Postal Service. Except as provided in the clear and explicit terms of the contract, no broker shall be required to make a determination as to the party entitled to receive the earnest money deposit. A broker who complies with this section shall be immune from liability to any of the parties to the contract.4\n\nA principal broker or supervising broker holding escrow funds for a principal to the transaction may seek to have a court of competent jurisdiction take custody of disputed or unclaimed escrow funds via an interpleader action pursuant to &#xA7; 16.1-77.5\n\nIf a principal broker or supervising broker is holding escrow funds for the owner of real property and such property is foreclosed upon by a lender, the principal broker or supervising broker shall have the right to file an interpleader action pursuant to &#xA7; 16.1-77 and otherwise comply with the provisions of &#xA7; 54.1-2108.1.","order_by":null,"text":{"0":{"id":212358,"text":"Notwithstanding any other provision of law, for purchase transactions:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":212359,"text":"Upon the ratification of a contract, an earnest money deposit received by the principal broker or supervising broker, or an agent of such principal broker or supervising broker, that is to be held in the firm&#8217;s escrow account shall be placed in such escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the principals to the transaction, and shall remain in that account until the transaction has been consummated or terminated.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":212360,"text":"If a principal broker or supervising broker, or an agent of such principal broker or supervising broker, receives an earnest money deposit that will not be held in the firm&#8217;s escrow account, the principal broker or supervising broker shall ensure that the earnest money deposit is delivered to the escrow agent named in the contract by the end of the fifth business banking day following receipt of the deposit, unless otherwise agreed to in writing by the principals to the transaction.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":212361,"text":"In the event that the transaction is not consummated, the principal broker or supervising broker shall hold such funds in escrow until (i) all principals to the transaction have agreed in a written agreement as to their disposition, upon which the funds shall be returned to the agreed-upon principal as provided in such written agreement; (ii) a court of competent jurisdiction orders such disbursement of the funds; (iii) the funds are successfully interpleaded into a court of competent jurisdiction pursuant to this section; or (iv) the broker releases the funds to the principal to the transaction who is entitled to receive them in accordance with the clear and explicit terms of the contract that established the earnest money deposit.\n\t\t\tAt the option of a broker, written notice may be sent by the broker that release of such funds shall be made unless a written protest is received from the principal who is not receiving the funds by such broker within 15 calendar days of the date of such notice. Notice of a disbursement shall be given to the parties to the transaction in accordance with the contract, but if the contract does not specify a method of delivery, one of the following methods complies with this section: (a) hand delivery; (b) United States mail, postage prepaid, provided that the sender retains sufficient proof of mailing, which may be either a United States postal certificate of mailing or a certificate of service prepared by the sender confirming such mailing; (c) electronic means, provided that the sender retains sufficient proof of the electronic delivery, which may be an electronic receipt of delivery, a confirmation that the notice was sent by facsimile, or a certificate of service prepared by the sender confirming the electronic delivery; or (d) overnight delivery using a commercial service or the United States Postal Service. Except as provided in the clear and explicit terms of the contract, no broker shall be required to make a determination as to the party entitled to receive the earnest money deposit. A broker who complies with this section shall be immune from liability to any of the parties to the contract.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":212362,"text":"A principal broker or supervising broker holding escrow funds for a principal to the transaction may seek to have a court of competent jurisdiction take custody of disputed or unclaimed escrow funds via an interpleader action pursuant to &#xA7; 16.1-77.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":212363,"text":"If a principal broker or supervising broker is holding escrow funds for the owner of real property and such property is foreclosed upon by a lender, the principal broker or supervising broker shall have the right to file an interpleader action pursuant to &#xA7; 16.1-77 and otherwise comply with the provisions of &#xA7; 54.1-2108.1.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":12757,"edition_id":1,"name":"Regulation of Real Estate Brokers, Salespersons and Rental Location Agents","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":12756,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239913,"object_type":"structure","relational_id":12757,"identifier":"1","token":"54.1\/II\/21\/1","url":"\/54.1\/II\/21\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12756,"edition_id":1,"name":"Real Estate Brokers, Sales Persons and Rental Location Agents","identifier":"21","label":"chapter","depth":3,"order_by":1,"parent_id":12755,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239911,"object_type":"structure","relational_id":12756,"identifier":"21","token":"54.1\/II\/21","url":"\/54.1\/II\/21\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12755,"edition_id":1,"name":"Professions and Occupations Regulated by the Department of Professional and Occupational Regulation and Boards Within the Department","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12754,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239415,"object_type":"structure","relational_id":12755,"identifier":"II","token":"54.1\/II","url":"\/54.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12754,"edition_id":1,"name":"Professions and Occupations","identifier":"54.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239313,"object_type":"structure","relational_id":12754,"identifier":"54.1","token":"54.1","url":"\/54.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":74059,"structure_id":12757,"section_number":"54.1-2100","catch_line":"Definitions","url":"\/54.1-2100\/","token":"54.1\/II\/21\/1\/54.1-2100","metadata":false},{"id":62721,"structure_id":12757,"section_number":"54.1-2101","catch_line":"Repealed","url":"\/54.1-2101\/","token":"54.1\/II\/21\/1\/54.1-2101","metadata":false},{"id":84706,"structure_id":12757,"section_number":"54.1-2101.1","catch_line":"Preparation of real estate contracts by real estate licensees; translation","url":"\/54.1-2101.1\/","token":"54.1\/II\/21\/1\/54.1-2101.1","metadata":false},{"id":64271,"structure_id":12757,"section_number":"54.1-2102","catch_line":"Repealed","url":"\/54.1-2102\/","token":"54.1\/II\/21\/1\/54.1-2102","metadata":false},{"id":73865,"structure_id":12757,"section_number":"54.1-2103","catch_line":"Exemptions from chapter","url":"\/54.1-2103\/","token":"54.1\/II\/21\/1\/54.1-2103","metadata":false},{"id":75416,"structure_id":12757,"section_number":"54.1-2104","catch_line":"Real Estate Board; membership; chairman; seal","url":"\/54.1-2104\/","token":"54.1\/II\/21\/1\/54.1-2104","metadata":false},{"id":57299,"structure_id":12757,"section_number":"54.1-2105","catch_line":"General powers of Real Estate Board; regulations; educational and experience requirements for licensure","url":"\/54.1-2105\/","token":"54.1\/II\/21\/1\/54.1-2105","metadata":false},{"id":54159,"structure_id":12757,"section_number":"54.1-2105.01","catch_line":"Educational requirements for all salespersons within one year of licensure","url":"\/54.1-2105.01\/","token":"54.1\/II\/21\/1\/54.1-2105.01","metadata":false},{"id":74762,"structure_id":12757,"section_number":"54.1-2105.02","catch_line":"Regulation of real estate education providers and courses","url":"\/54.1-2105.02\/","token":"54.1\/II\/21\/1\/54.1-2105.02","metadata":false},{"id":84187,"structure_id":12757,"section_number":"54.1-2105.03","catch_line":"Continuing education; relicensure of brokers and salespersons","url":"\/54.1-2105.03\/","token":"54.1\/II\/21\/1\/54.1-2105.03","metadata":false},{"id":72873,"structure_id":12757,"section_number":"54.1-2105.04","catch_line":"Education requirements; reactivation of licenses; waiver","url":"\/54.1-2105.04\/","token":"54.1\/II\/21\/1\/54.1-2105.04","metadata":false},{"id":72851,"structure_id":12757,"section_number":"54.1-2105.1","catch_line":"Other powers and duties of the Real Estate Board","url":"\/54.1-2105.1\/","token":"54.1\/II\/21\/1\/54.1-2105.1","metadata":false},{"id":60480,"structure_id":12757,"section_number":"54.1-2105.2","catch_line":"Cease and desist orders for unlicensed activity; civil penalty","url":"\/54.1-2105.2\/","token":"54.1\/II\/21\/1\/54.1-2105.2","metadata":false},{"id":57996,"structure_id":12757,"section_number":"54.1-2106","catch_line":"Repealed","url":"\/54.1-2106\/","token":"54.1\/II\/21\/1\/54.1-2106","metadata":false},{"id":65670,"structure_id":12757,"section_number":"54.1-2106.1","catch_line":"Licenses required","url":"\/54.1-2106.1\/","token":"54.1\/II\/21\/1\/54.1-2106.1","metadata":false},{"id":53952,"structure_id":12757,"section_number":"54.1-2106.2","catch_line":"Certification of audit on renewal of firm or sole proprietorship license","url":"\/54.1-2106.2\/","token":"54.1\/II\/21\/1\/54.1-2106.2","metadata":false},{"id":79185,"structure_id":12757,"section_number":"54.1-2107","catch_line":"Repealed","url":"\/54.1-2107\/","token":"54.1\/II\/21\/1\/54.1-2107","metadata":false},{"id":86701,"structure_id":12757,"section_number":"54.1-2108","catch_line":"Protection of escrow funds, etc., held by broker","url":"\/54.1-2108\/","token":"54.1\/II\/21\/1\/54.1-2108","metadata":false},{"id":65659,"structure_id":12757,"section_number":"54.1-2108.1","catch_line":"Protection of escrow funds, etc., held by a real estate broker in the event of foreclosure of real property; required deposits","url":"\/54.1-2108.1\/","token":"54.1\/II\/21\/1\/54.1-2108.1","metadata":false},{"id":57978,"structure_id":12757,"section_number":"54.1-2108.2","catch_line":"Protection of escrow funds, etc., held by a real estate broker in the event of termination of a real estate purchase contract","url":"\/54.1-2108.2\/","token":"54.1\/II\/21\/1\/54.1-2108.2","metadata":false},{"id":81601,"structure_id":12757,"section_number":"54.1-2109","catch_line":"Death or disability of a real estate broker","url":"\/54.1-2109\/","token":"54.1\/II\/21\/1\/54.1-2109","metadata":false},{"id":54153,"structure_id":12757,"section_number":"54.1-2110","catch_line":"Resident broker to maintain place of business in Virginia","url":"\/54.1-2110\/","token":"54.1\/II\/21\/1\/54.1-2110","metadata":false},{"id":67502,"structure_id":12757,"section_number":"54.1-2110.1","catch_line":"Duties of supervising broker","url":"\/54.1-2110.1\/","token":"54.1\/II\/21\/1\/54.1-2110.1","metadata":false},{"id":61962,"structure_id":12757,"section_number":"54.1-2111","catch_line":"Consent to suits and service of process by nonresidents; manner of service","url":"\/54.1-2111\/","token":"54.1\/II\/21\/1\/54.1-2111","metadata":false},{"id":55700,"structure_id":12757,"section_number":"54.1-2111.1","catch_line":"Voluntary compliance program; real estate brokers","url":"\/54.1-2111.1\/","token":"54.1\/II\/21\/1\/54.1-2111.1","metadata":false}],"previous_section":{"id":65659,"structure_id":12757,"section_number":"54.1-2108.1","catch_line":"Protection of escrow funds, etc., held by a real estate broker in the event of foreclosure of real property; required deposits","url":"\/54.1-2108.1\/","token":"54.1\/II\/21\/1\/54.1-2108.1","metadata":false},"next_section":{"id":81601,"structure_id":12757,"section_number":"54.1-2109","catch_line":"Death or disability of a real estate broker","url":"\/54.1-2109\/","token":"54.1\/II\/21\/1\/54.1-2109","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/54.1-2108.2\/","history_text":"<p>This law was first created in 2018. The record of its establishment is cataloged in chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?181+ful+CHAP0060\">60<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?181+ful+CHAP0086\">86<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2019, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?191+ful+CHAP0179\">179<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?191+ful+CHAP0395\">395<\/a>; in 2022, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?221+ful+CHAP0380\">380<\/a>.<\/p>","references":false,"refers_to":[{"id":72168,"section_number":"16.1-77","catch_line":"Civil jurisdiction of general district courts; amending amount of claim","order_by":null,"url":"\/16.1-77\/"},{"id":65659,"section_number":"54.1-2108.1","catch_line":"Protection of escrow funds, etc., held by a real estate broker in the event of foreclosure of real property; required deposits","order_by":null,"url":"\/54.1-2108.1\/"}],"permalink":{"id":239991,"object_type":"law","relational_id":57978,"identifier":"54.1-2108.2","token":"54.1\/II\/21\/1\/54.1-2108.2","url":"\/54.1-2108.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/54.1-2108.2\/","token":"54.1\/II\/21\/1\/54.1-2108.2","dublin_core":{"Title":"Protection of escrow funds, etc., held by a real estate broker in the event of termination of a real estate purchase contract","Type":"Text","Format":"text\/html","Identifier":"\u00a7 54.1-2108.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>Notwithstanding any other provision of <span class=\"dictionary\">law<\/span>, for purchase transactions:<\/p><\/section>\n\t\t\t\t\t\t<section id=\"1\"><p><span class=\"prefix-number\">1.<\/span> Upon the ratification of a <span class=\"dictionary\">contract<\/span>, an earnest money deposit received by the principal broker or <span class=\"dictionary\">supervising broker<\/span>, or an agent of such principal broker or <span class=\"dictionary\">supervising broker<\/span>, that is to be held in the firm&#8217;s escrow account shall be placed in such escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the principals to the transaction, and shall remain in that account until the transaction has been consummated or terminated. <a id=\"paragraph-212359\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/54.1-2108.2\/#1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"2\"><p><span class=\"prefix-number\">2.<\/span> If a principal broker or <span class=\"dictionary\">supervising broker<\/span>, or an agent of such principal broker or <span class=\"dictionary\">supervising broker<\/span>, receives an earnest money deposit that will not be held in the firm&#8217;s escrow account, the principal broker or <span class=\"dictionary\">supervising broker<\/span> shall ensure that the earnest money deposit is delivered to the escrow agent named in the <span class=\"dictionary\">contract<\/span> by the end of the fifth business banking day following receipt of the deposit, unless otherwise agreed to in writing by the principals to the transaction. <a id=\"paragraph-212360\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/54.1-2108.2\/#2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"3\"><p><span class=\"prefix-number\">3.<\/span> In the event that the transaction is not consummated, the principal broker or <span class=\"dictionary\">supervising broker<\/span> shall hold such funds in escrow until (i) all principals to the transaction have agreed in a written agreement as to their <span class=\"dictionary\">disposition<\/span>, upon which the funds shall be returned to the agreed-upon principal as provided in such written agreement; (ii) a <span class=\"dictionary\">court<\/span> of competent <span class=\"dictionary\">jurisdiction<\/span> <span class=\"dictionary\">orders<\/span> such disbursement of the funds; (iii) the funds are successfully interpleaded into a <span class=\"dictionary\">court<\/span> of competent <span class=\"dictionary\">jurisdiction<\/span> pursuant to this section; or (iv) the broker releases the funds to the principal to the transaction who is entitled to receive them in accordance with the clear and explicit terms of the <span class=\"dictionary\">contract<\/span> that established the earnest money deposit.\n\t\t\tAt the option of a broker, written notice may be sent by the broker that release of such funds shall be made unless a written protest is received from the principal who is not receiving the funds by such broker within 15 calendar days of the date of such notice. Notice of a disbursement shall be given to the parties to the transaction in accordance with the <span class=\"dictionary\">contract<\/span>, but if the <span class=\"dictionary\">contract<\/span> does not specify a method of delivery, one of the following methods complies with this section: (a) hand delivery; (b) United States mail, postage prepaid, provided that the sender retains sufficient proof of mailing, which may be either a United States postal certificate of mailing or a certificate of service prepared by the sender confirming such mailing; (c) electronic means, provided that the sender retains sufficient proof of the electronic delivery, which may be an electronic receipt of delivery, a confirmation that the notice was sent by facsimile, or a certificate of service prepared by the sender confirming the electronic delivery; or (d) overnight delivery using a commercial service or the United States Postal Service. Except as provided in the clear and explicit terms of the <span class=\"dictionary\">contract<\/span>, no broker shall be required to make a determination as to the <span class=\"dictionary\">party<\/span> entitled to receive the earnest money deposit. A broker who complies with this section shall be immune from liability to any of the parties to the <span class=\"dictionary\">contract<\/span>. <a id=\"paragraph-212361\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/54.1-2108.2\/#3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"4\"><p><span class=\"prefix-number\">4.<\/span> A principal broker or <span class=\"dictionary\">supervising broker<\/span> holding escrow funds for a principal to the transaction may seek to have a <span class=\"dictionary\">court<\/span> of competent <span class=\"dictionary\">jurisdiction<\/span> take <span class=\"dictionary\">custody<\/span> of disputed or unclaimed escrow funds via an <span class=\"dictionary\">interpleader<\/span> action pursuant to &#xA7; <a class=\"law\" title=\"Civil jurisdiction of general district courts; amending amount of claim\" href=\"\/16.1-77\/\">16.1-77<\/a>. <a id=\"paragraph-212362\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/54.1-2108.2\/#4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"5\"><p><span class=\"prefix-number\">5.<\/span> If a principal broker or <span class=\"dictionary\">supervising broker<\/span> is holding escrow funds for the owner of real property and such property is foreclosed upon by a lender, the principal broker or <span class=\"dictionary\">supervising broker<\/span> shall have the right to file an <span class=\"dictionary\">interpleader<\/span> action pursuant to &#xA7; <a class=\"law\" title=\"Civil jurisdiction of general district courts; amending amount of claim\" href=\"\/16.1-77\/\">16.1-77<\/a> and otherwise comply with the provisions of &#xA7; <a class=\"law\" title=\"Protection of escrow funds, etc., held by a real estate broker in the event of foreclosure of real property; required deposits\" href=\"\/54.1-2108.1\/\">54.1-2108.1<\/a>. <a id=\"paragraph-212363\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/54.1-2108.2\/#5\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nPROTECTION OF ESCROW FUNDS, ETC., HELD BY A REAL ESTATE BROKER IN THE EVENT OF\nTERMINATION OF A REAL ESTATE PURCHASE CONTRACT (\u00a7 54.1-2108.2)\n\nNotwithstanding any other provision of law, for purchase transactions:\n\n1. Upon the ratification of a contract, an earnest money deposit received by the\nprincipal broker or supervising broker, or an agent of such principal broker or\nsupervising broker, that is to be held in the firm&#8217;s escrow account shall\nbe placed in such escrow account by the end of the fifth business banking day\nfollowing ratification, unless otherwise agreed to in writing by the principals\nto the transaction, and shall remain in that account until the transaction has\nbeen consummated or terminated.\n\n2. If a principal broker or supervising broker, or an agent of such principal\nbroker or supervising broker, receives an earnest money deposit that will not be\nheld in the firm&#8217;s escrow account, the principal broker or supervising\nbroker shall ensure that the earnest money deposit is delivered to the escrow\nagent named in the contract by the end of the fifth business banking day\nfollowing receipt of the deposit, unless otherwise agreed to in writing by the\nprincipals to the transaction.\n\n3. In the event that the transaction is not consummated, the principal broker or\nsupervising broker shall hold such funds in escrow until (i) all principals to\nthe transaction have agreed in a written agreement as to their disposition, upon\nwhich the funds shall be returned to the agreed-upon principal as provided in\nsuch written agreement; (ii) a court of competent jurisdiction orders such\ndisbursement of the funds; (iii) the funds are successfully interpleaded into a\ncourt of competent jurisdiction pursuant to this section; or (iv) the broker\nreleases the funds to the principal to the transaction who is entitled to\nreceive them in accordance with the clear and explicit terms of the contract\nthat established the earnest money deposit.\n\t\t\tAt the option of a broker, written notice may be sent by the broker that\nrelease of such funds shall be made unless a written protest is received from\nthe principal who is not receiving the funds by such broker within 15 calendar\ndays of the date of such notice. Notice of a disbursement shall be given to the\nparties to the transaction in accordance with the contract, but if the contract\ndoes not specify a method of delivery, one of the following methods complies\nwith this section: (a) hand delivery; (b) United States mail, postage prepaid,\nprovided that the sender retains sufficient proof of mailing, which may be\neither a United States postal certificate of mailing or a certificate of service\nprepared by the sender confirming such mailing; (c) electronic means, provided\nthat the sender retains sufficient proof of the electronic delivery, which may\nbe an electronic receipt of delivery, a confirmation that the notice was sent by\nfacsimile, or a certificate of service prepared by the sender confirming the\nelectronic delivery; or (d) overnight delivery using a commercial service or the\nUnited States Postal Service. Except as provided in the clear and explicit terms\nof the contract, no broker shall be required to make a determination as to the\nparty entitled to receive the earnest money deposit. A broker who complies with\nthis section shall be immune from liability to any of the parties to the\ncontract.\n\n4. A principal broker or supervising broker holding escrow funds for a principal\nto the transaction may seek to have a court of competent jurisdiction take\ncustody of disputed or unclaimed escrow funds via an interpleader action\npursuant to &#xA7; 16.1-77.\n\n5. If a principal broker or supervising broker is holding escrow funds for the\nowner of real property and such property is foreclosed upon by a lender, the\nprincipal broker or supervising broker shall have the right to file an\ninterpleader action pursuant to &#xA7; 16.1-77 and otherwise comply with the\nprovisions of &#xA7; 54.1-2108.1.\n\nHISTORY: 2018, cc. 60, 86; 2019, cc. 179, 395; 2022, c. 380.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}