{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/55.1-1004.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/55.1-1004.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/55.1-1004.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/55.1-1004.html"}],"law_id":68373,"edition_id":1,"section_id":68373,"structure_id":15275,"section_number":"55.1-1004","catch_line":"Duties of settlement agents","history":"1997, c. 716, \u00a7 6.1-2.21; 1998, c. 69; 2000, c. 549; 2002, c. 464; 2007, c. 898; 2008, c. 92; 2010, c. 794, \u00a7 55-525.20; 2019, c. 712; 2021, Sp. Sess. I, c. 324.","full_text":"A\n\nA settlement agent shall exercise reasonable care and comply with all applicable requirements of this chapter and its licensing authority regarding licensing, financial responsibility, errors and omissions or malpractice insurance policies, fidelity bonds, employee dishonesty insurance policies, audits, escrow account analyses, and record retention.B\n\nA settlement agent who is not (i) a person described in subdivision A 5 of \u00a7 55.1-1003 or (ii) a title insurance company as defined in \u00a7 38.2-4601 shall maintain the following to the satisfaction of the appropriate licensing authority:1\n\nAn errors and omissions or malpractice insurance policy providing a minimum of $250,000 in coverage;2\n\nA blanket fidelity bond or employee dishonesty insurance policy covering persons employed by the settlement agent providing a minimum of $100,000 in coverage. When the settlement agent has no employees except the owners, partners, shareholders, or members, the settlement agent may apply to the appropriate licensing authority for a waiver of this fidelity bond or employee dishonesty requirement; and3\n\nA surety bond of not less than $200,000.\n\t\t\t\tNotwithstanding the provisions of § 55.1-1016, the Commission may share information collected from a settlement agent or agency under subdivisions 1 and 3 with any party to the real estate transaction in connection with the actions of such agent or agency arising out of a settlement.C\n\nA settlement agent, other than an attorney or a title insurance company if such company’s financial statements are audited annually by an independent certified public accountant, shall, at its expense, have an audit of its escrow accounts conducted by an independent certified public accountant at least once each consecutive 12-month period. The appropriate licensing authority shall require the settlement agent to provide a copy of its audit report to the licensing authority no later than 60 days after the date on which the audit is completed. A settlement agent that is a licensed title insurance agent under Title 38.2 shall also provide a copy of the audit report to each title insurance company that it represents. In lieu of such annual audit, a settlement agent that is licensed as a title insurance agent under Title 38.2 shall allow each title insurance company for which it has an appointment to conduct an analysis of its escrow accounts in accordance with regulations adopted by the Commission or guidelines issued by the Bureau of Insurance of the Commission, as appropriate, at least once each consecutive 12-month period, and each title insurance company conducting such analysis shall submit a copy of its analysis report to the appropriate licensing authority no later than 60 days after the date on which the analysis is completed. With the consent of the title insurance agent, a title insurance company may share the results of its analysis with other title insurance companies that will accept the same in lieu of conducting a separate analysis. A title insurance company shall retain a copy of the analysis or audit report, as applicable, for each title insurance agent it has appointed and such reports and other records of the insurance company’s activities as a settlement agent shall be made available to the appropriate licensing authority when examinations are conducted pursuant to provisions in Title 38.2.","order_by":null,"text":{"0":{"id":247603,"text":"A settlement agent shall exercise reasonable care and comply with all applicable requirements of this chapter and its licensing authority regarding licensing, financial responsibility, errors and omissions or malpractice insurance policies, fidelity bonds, employee dishonesty insurance policies, audits, escrow account analyses, and record retention.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":247604,"text":"A settlement agent who is not (i) a person described in subdivision A 5 of \u00a7 55.1-1003 or (ii) a title insurance company as defined in \u00a7 38.2-4601 shall maintain the following to the satisfaction of the appropriate licensing authority:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":247605,"text":"An errors and omissions or malpractice insurance policy providing a minimum of $250,000 in coverage;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":247606,"text":"A blanket fidelity bond or employee dishonesty insurance policy covering persons employed by the settlement agent providing a minimum of $100,000 in coverage. When the settlement agent has no employees except the owners, partners, shareholders, or members, the settlement agent may apply to the appropriate licensing authority for a waiver of this fidelity bond or employee dishonesty requirement; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":247607,"text":"A surety bond of not less than $200,000.\n\t\t\t\tNotwithstanding the provisions of § 55.1-1016, the Commission may share information collected from a settlement agent or agency under subdivisions 1 and 3 with any party to the real estate transaction in connection with the actions of such agent or agency arising out of a settlement.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":247608,"text":"A settlement agent, other than an attorney or a title insurance company if such company’s financial statements are audited annually by an independent certified public accountant, shall, at its expense, have an audit of its escrow accounts conducted by an independent certified public accountant at least once each consecutive 12-month period. The appropriate licensing authority shall require the settlement agent to provide a copy of its audit report to the licensing authority no later than 60 days after the date on which the audit is completed. A settlement agent that is a licensed title insurance agent under Title 38.2 shall also provide a copy of the audit report to each title insurance company that it represents. In lieu of such annual audit, a settlement agent that is licensed as a title insurance agent under Title 38.2 shall allow each title insurance company for which it has an appointment to conduct an analysis of its escrow accounts in accordance with regulations adopted by the Commission or guidelines issued by the Bureau of Insurance of the Commission, as appropriate, at least once each consecutive 12-month period, and each title insurance company conducting such analysis shall submit a copy of its analysis report to the appropriate licensing authority no later than 60 days after the date on which the analysis is completed. With the consent of the title insurance agent, a title insurance company may share the results of its analysis with other title insurance companies that will accept the same in lieu of conducting a separate analysis. A title insurance company shall retain a copy of the analysis or audit report, as applicable, for each title insurance agent it has appointed and such reports and other records of the insurance company’s activities as a settlement agent shall be made available to the appropriate licensing authority when examinations are conducted pursuant to provisions in Title 38.2.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3"}},"ancestry":[{"id":15275,"edition_id":1,"name":"Real Estate Settlement Agents","identifier":"10","label":"chapter","depth":3,"order_by":1,"parent_id":13524,"metadata":{},"date_created":"2026-06-26 03:53:31","date_modified":"2026-06-26 03:53:31","permalink":{"id":245371,"object_type":"structure","relational_id":15275,"identifier":"10","token":"55.1\/II\/10","url":"\/55.1\/II\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13524,"edition_id":1,"name":"Real Estate Settlements and Recordation","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12707,"metadata":{},"date_created":"2026-06-26 03:45:07","date_modified":"2026-06-26 03:45:07","permalink":{"id":245369,"object_type":"structure","relational_id":13524,"identifier":"II","token":"55.1\/II","url":"\/55.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12707,"edition_id":1,"name":"Property and Conveyances","identifier":"55.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":244769,"object_type":"structure","relational_id":12707,"identifier":"55.1","token":"55.1","url":"\/55.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":80642,"structure_id":15275,"section_number":"55.1-1000","catch_line":"Definitions","url":"\/55.1-1000\/","token":"55.1\/II\/10\/55.1-1000","metadata":false},{"id":83132,"structure_id":15275,"section_number":"55.1-1001","catch_line":"Limitation on applicability of chapter","url":"\/55.1-1001\/","token":"55.1\/II\/10\/55.1-1001","metadata":false},{"id":79138,"structure_id":15275,"section_number":"55.1-1002","catch_line":"Scope of chapter; lay real estate settlement agents","url":"\/55.1-1002\/","token":"55.1\/II\/10\/55.1-1002","metadata":false},{"id":77232,"structure_id":15275,"section_number":"55.1-1003","catch_line":"Persons who may act as a settlement agent","url":"\/55.1-1003\/","token":"55.1\/II\/10\/55.1-1003","metadata":false},{"id":68373,"structure_id":15275,"section_number":"55.1-1004","catch_line":"Duties of settlement agents","url":"\/55.1-1004\/","token":"55.1\/II\/10\/55.1-1004","metadata":false},{"id":69907,"structure_id":15275,"section_number":"55.1-1005","catch_line":"Persons prohibited from assisting or being employed by settlement agents","url":"\/55.1-1005\/","token":"55.1\/II\/10\/55.1-1005","metadata":false},{"id":73624,"structure_id":15275,"section_number":"55.1-1006","catch_line":"Choice of settlement agent","url":"\/55.1-1006\/","token":"55.1\/II\/10\/55.1-1006","metadata":false},{"id":58611,"structure_id":15275,"section_number":"55.1-1007","catch_line":"Disclosure","url":"\/55.1-1007\/","token":"55.1\/II\/10\/55.1-1007","metadata":false},{"id":58141,"structure_id":15275,"section_number":"55.1-1008","catch_line":"Conditions for providing escrow, closing, or settlement services and for maintaining escrow accounts","url":"\/55.1-1008\/","token":"55.1\/II\/10\/55.1-1008","metadata":false},{"id":82868,"structure_id":15275,"section_number":"55.1-1009","catch_line":"Falsifying settlement statements prohibited","url":"\/55.1-1009\/","token":"55.1\/II\/10\/55.1-1009","metadata":false},{"id":72074,"structure_id":15275,"section_number":"55.1-1009.1","catch_line":"Prohibition against payment or receipt of settlement services kickbacks, rebates, commissions, and other payments","url":"\/55.1-1009.1\/","token":"55.1\/II\/10\/55.1-1009.1","metadata":false},{"id":69513,"structure_id":15275,"section_number":"55.1-1010","catch_line":"Separate charge for reporting transactions limited","url":"\/55.1-1010\/","token":"55.1\/II\/10\/55.1-1010","metadata":false},{"id":84855,"structure_id":15275,"section_number":"55.1-1011","catch_line":"Record retention requirements","url":"\/55.1-1011\/","token":"55.1\/II\/10\/55.1-1011","metadata":false},{"id":71946,"structure_id":15275,"section_number":"55.1-1012","catch_line":"Regulations and orders","url":"\/55.1-1012\/","token":"55.1\/II\/10\/55.1-1012","metadata":false},{"id":59279,"structure_id":15275,"section_number":"55.1-1013","catch_line":"Accounting by title insurance companies","url":"\/55.1-1013\/","token":"55.1\/II\/10\/55.1-1013","metadata":false},{"id":70071,"structure_id":15275,"section_number":"55.1-1014","catch_line":"Settlement agent registration requirements and compliance with unauthorized practice of law guidelines; civil penalty","url":"\/55.1-1014\/","token":"55.1\/II\/10\/55.1-1014","metadata":false},{"id":65576,"structure_id":15275,"section_number":"55.1-1015","catch_line":"Penalties and liabilities","url":"\/55.1-1015\/","token":"55.1\/II\/10\/55.1-1015","metadata":false},{"id":69153,"structure_id":15275,"section_number":"55.1-1015.1","catch_line":"Civil penalties; attorney fees","url":"\/55.1-1015.1\/","token":"55.1\/II\/10\/55.1-1015.1","metadata":false},{"id":79216,"structure_id":15275,"section_number":"55.1-1016","catch_line":"Confidentiality of information obtained by the Commission","url":"\/55.1-1016\/","token":"55.1\/II\/10\/55.1-1016","metadata":false}],"previous_section":{"id":77232,"structure_id":15275,"section_number":"55.1-1003","catch_line":"Persons who may act as a settlement agent","url":"\/55.1-1003\/","token":"55.1\/II\/10\/55.1-1003","metadata":false},"next_section":{"id":69907,"structure_id":15275,"section_number":"55.1-1005","catch_line":"Persons prohibited from assisting or being employed by settlement agents","url":"\/55.1-1005\/","token":"55.1\/II\/10\/55.1-1005","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-1004\/","history_text":"

This law was first created in 1997. The record of its establishment is cataloged in chapter 716<\/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 7 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 1998, chapter 69<\/a>; in 2000, chapter 549<\/a>; in 2002, chapter 464<\/a>; in 2007, chapter 898<\/a>; in 2008, chapter 92<\/a>; in 2010, chapter 794<\/a>; in 2019, chapter 712<\/a>.<\/p>","references":false,"refers_to":[{"id":61532,"section_number":"38.2-4601","catch_line":"Title insurance company defined","order_by":null,"url":"\/38.2-4601\/"},{"id":77232,"section_number":"55.1-1003","catch_line":"Persons who may act as a settlement agent","order_by":null,"url":"\/55.1-1003\/"},{"id":79216,"section_number":"55.1-1016","catch_line":"Confidentiality of information obtained by the Commission","order_by":null,"url":"\/55.1-1016\/"}],"permalink":{"id":245389,"object_type":"law","relational_id":68373,"identifier":"55.1-1004","token":"55.1\/II\/10\/55.1-1004","url":"\/55.1-1004\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/55.1-1004\/","token":"55.1\/II\/10\/55.1-1004","dublin_core":{"Title":"Duties of settlement agents","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-1004","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A settlement agent<\/span> shall exercise reasonable care and comply with all applicable requirements of this chapter and its licensing authority<\/span> regarding licensing, financial responsibility, errors and omissions or malpractice insurance policies, fidelity bonds<\/span>, employee dishonesty insurance policies, audits, escrow<\/span> account analyses, and record retention. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A settlement agent<\/span> who is not (i) a person described in subdivision A 5 of \u00a7 55.1-1003<\/a> or (ii) a title insurance company as defined in \u00a7 38.2-4601<\/a> shall maintain the following to the satisfaction of the appropriate licensing authority<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> An errors and omissions or malpractice insurance policy providing a minimum of $250,000 in coverage; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A blanket fidelity bond<\/span> or employee dishonesty insurance policy covering persons employed by the settlement agent<\/span> providing a minimum of $100,000 in coverage. When the settlement agent<\/span> has no employees except the owners, partners, shareholders, or members, the settlement agent<\/span> may apply to the appropriate licensing authority<\/span> for a waiver<\/span> of this fidelity bond<\/span> or employee dishonesty requirement; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A surety<\/span> bond<\/span> of not less than $200,000.\n\t\t\t\tNotwithstanding the provisions of § 55.1-1016<\/a>, the Commission<\/span> may share information collected from a settlement agent<\/span> or agency under subdivisions 1 and 3 with any party<\/span> to the real estate transaction in connection with the actions of such agent or agency arising out of a settlement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A settlement agent<\/span>, other than an attorney or a title insurance company if such company’s financial statements are audited annually by an independent certified public accountant, shall, at its expense, have an audit of its escrow<\/span> accounts conducted by an independent certified public accountant at least once each consecutive 12-month period. The appropriate licensing authority<\/span> shall require the settlement agent<\/span> to provide a copy of its audit report to the licensing authority<\/span> no later than 60 days after the date on which the audit is completed. A settlement agent<\/span> that is a licensed title insurance agent under Title 38.2 shall also provide a copy of the audit report to each title insurance company that it represents. In lieu of such annual audit, a settlement agent<\/span> that is licensed as a title insurance agent under Title 38.2 shall allow each title insurance company for which it has an appointment to conduct an analysis of its escrow<\/span> accounts in accordance with regulations adopted by the Commission<\/span> or guidelines issued by the Bureau of Insurance of the Commission<\/span>, as appropriate, at least once each consecutive 12-month period, and each title insurance company conducting such analysis shall submit a copy of its analysis report to the appropriate licensing authority<\/span> no later than 60 days after the date on which the analysis is completed. With the consent of the title insurance agent, a title insurance company may share the results of its analysis with other title insurance companies that will accept the same in lieu of conducting a separate analysis. A title insurance company shall retain a copy of the analysis or audit report, as applicable, for each title insurance agent it has appointed and such reports and other records of the insurance company’s activities as a settlement agent<\/span> shall be made available to the appropriate licensing authority<\/span> when examinations are conducted pursuant to provisions in Title 38.2. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDUTIES OF SETTLEMENT AGENTS (\u00a7 55.1-1004)\n\nA. A settlement agent shall exercise reasonable care and comply with all\napplicable requirements of this chapter and its licensing authority regarding\nlicensing, financial responsibility, errors and omissions or malpractice\ninsurance policies, fidelity bonds, employee dishonesty insurance policies,\naudits, escrow account analyses, and record retention.\n\nB. A settlement agent who is not (i) a person described in subdivision A 5 of \u00a7\n55.1-1003 or (ii) a title insurance company as defined in \u00a7 38.2-4601 shall\nmaintain the following to the satisfaction of the appropriate licensing\nauthority:\n\n 1. An errors and omissions or malpractice insurance policy providing a minimum\n of $250,000 in coverage;\n\n 2. A blanket fidelity bond or employee dishonesty insurance policy covering\n persons employed by the settlement agent providing a minimum of $100,000 in\n coverage. When the settlement agent has no employees except the owners,\n partners, shareholders, or members, the settlement agent may apply to the\n appropriate licensing authority for a waiver of this fidelity bond or employee\n dishonesty requirement; and\n\n 3. A surety bond of not less than $200,000.\n \t\t\t\tNotwithstanding the provisions of § 55.1-1016, the Commission may\n share information collected from a settlement agent or agency under\n subdivisions 1 and 3 with any party to the real estate transaction in\n connection with the actions of such agent or agency arising out of a\n settlement.\n\nC. A settlement agent, other than an attorney or a title insurance company if\nsuch company’s financial statements are audited annually by an independent\ncertified public accountant, shall, at its expense, have an audit of its escrow\naccounts conducted by an independent certified public accountant at least once\neach consecutive 12-month period. The appropriate licensing authority shall\nrequire the settlement agent to provide a copy of its audit report to the\nlicensing authority no later than 60 days after the date on which the audit is\ncompleted. A settlement agent that is a licensed title insurance agent under\nTitle 38.2 shall also provide a copy of the audit report to each title insurance\ncompany that it represents. In lieu of such annual audit, a settlement agent\nthat is licensed as a title insurance agent under Title 38.2 shall allow each\ntitle insurance company for which it has an appointment to conduct an analysis\nof its escrow accounts in accordance with regulations adopted by the Commission\nor guidelines issued by the Bureau of Insurance of the Commission, as\nappropriate, at least once each consecutive 12-month period, and each title\ninsurance company conducting such analysis shall submit a copy of its analysis\nreport to the appropriate licensing authority no later than 60 days after the\ndate on which the analysis is completed. With the consent of the title insurance\nagent, a title insurance company may share the results of its analysis with\nother title insurance companies that will accept the same in lieu of conducting\na separate analysis. A title insurance company shall retain a copy of the\nanalysis or audit report, as applicable, for each title insurance agent it has\nappointed and such reports and other records of the insurance company’s\nactivities as a settlement agent shall be made available to the appropriate\nlicensing authority when examinations are conducted pursuant to provisions in\nTitle 38.2.\n\nHISTORY: 1997, c. 716, \u00a7 6.1-2.21; 1998, c. 69; 2000, c. 549; 2002, c. 464;\n2007, c. 898; 2008, c. 92; 2010, c. 794, \u00a7 55-525.20; 2019, c. 712; 2021, Sp.\nSess. I, c. 324.","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}}