{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/59.1-265.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/59.1-265.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/59.1-265.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/59.1-265.html"}],"law_id":61483,"edition_id":1,"section_id":61483,"structure_id":13983,"section_number":"59.1-265","catch_line":"Seller required to obtain bond or establish escrow account; action for damages against bond or account; limitation on liability of surety or escrow agent","history":"1979, c. 523; 1996, c. 77.","full_text":"Before the business opportunity seller makes any of the representations set forth in \u00a7 59.1-263, the seller shall either have obtained a surety bond issued by a surety company authorized to do business in this Commonwealth or have established an escrow account with any credit union or any licensed and insured commercial bank or savings institution located in the Commonwealth of Virginia. The amount of the bond or escrow account shall be an amount not less than $50,000. Any person who is damaged by any violation of this chapter or by the business opportunity seller’s breach of the contract for the business opportunity sale or of any obligation arising therefrom may bring an action against the bond or escrow account to recover damages suffered; provided, however, that the aggregate escrow liability of the surety or escrow agents under any such bond or escrow account shall be only for actual damages and in no event shall exceed the amount of the bond or escrow account.","order_by":null,"text":{"0":{"id":224546,"text":"Before the business opportunity seller makes any of the representations set forth in \u00a7 59.1-263, the seller shall either have obtained a surety bond issued by a surety company authorized to do business in this Commonwealth or have established an escrow account with any credit union or any licensed and insured commercial bank or savings institution located in the Commonwealth of Virginia. The amount of the bond or escrow account shall be an amount not less than $50,000. Any person who is damaged by any violation of this chapter or by the business opportunity seller’s breach of the contract for the business opportunity sale or of any obligation arising therefrom may bring an action against the bond or escrow account to recover damages suffered; provided, however, that the aggregate escrow liability of the surety or escrow agents under any such bond or escrow account shall be only for actual damages and in no event shall exceed the amount of the bond or escrow account.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":13983,"edition_id":1,"name":"Business Opportunity Sales Act","identifier":"21","label":"chapter","depth":2,"order_by":1,"parent_id":12809,"metadata":{},"date_created":"2026-06-26 03:46:30","date_modified":"2026-06-26 03:46:30","permalink":{"id":260279,"object_type":"structure","relational_id":13983,"identifier":"21","token":"59.1\/21","url":"\/59.1\/21\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12809,"edition_id":1,"name":"Trade and Commerce","identifier":"59.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":259521,"object_type":"structure","relational_id":12809,"identifier":"59.1","token":"59.1","url":"\/59.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78004,"structure_id":13983,"section_number":"59.1-262","catch_line":"Short title","url":"\/59.1-262\/","token":"59.1\/21\/59.1-262","metadata":false},{"id":59290,"structure_id":13983,"section_number":"59.1-263","catch_line":"Definitions","url":"\/59.1-263\/","token":"59.1\/21\/59.1-263","metadata":false},{"id":72650,"structure_id":13983,"section_number":"59.1-264","catch_line":"Written disclosure statement required","url":"\/59.1-264\/","token":"59.1\/21\/59.1-264","metadata":false},{"id":61483,"structure_id":13983,"section_number":"59.1-265","catch_line":"Seller required to obtain bond or establish escrow account; action for damages against bond or account; limitation on liability of surety or escrow agent","url":"\/59.1-265\/","token":"59.1\/21\/59.1-265","metadata":false},{"id":55055,"structure_id":13983,"section_number":"59.1-266","catch_line":"Prohibited acts","url":"\/59.1-266\/","token":"59.1\/21\/59.1-266","metadata":false},{"id":74129,"structure_id":13983,"section_number":"59.1-267","catch_line":"Contracts required to be in writing; contents","url":"\/59.1-267\/","token":"59.1\/21\/59.1-267","metadata":false},{"id":58503,"structure_id":13983,"section_number":"59.1-268","catch_line":"Purchaser's remedies","url":"\/59.1-268\/","token":"59.1\/21\/59.1-268","metadata":false},{"id":69026,"structure_id":13983,"section_number":"59.1-269","catch_line":"Penalty; limitation","url":"\/59.1-269\/","token":"59.1\/21\/59.1-269","metadata":false}],"previous_section":{"id":72650,"structure_id":13983,"section_number":"59.1-264","catch_line":"Written disclosure statement required","url":"\/59.1-264\/","token":"59.1\/21\/59.1-264","metadata":false},"next_section":{"id":55055,"structure_id":13983,"section_number":"59.1-266","catch_line":"Prohibited acts","url":"\/59.1-266\/","token":"59.1\/21\/59.1-266","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/59.1-265\/","history_text":"

This law was first created in 1979. The record of its establishment is cataloged in chapter 523 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. Unfortunately, the 1979 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. 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. That modification is as follows: in 1996, chapter 77<\/a>.<\/p>","references":[{"id":72650,"section_number":"59.1-264","catch_line":"Written disclosure statement required","order_by":null,"url":"\/59.1-264\/"}],"refers_to":[{"id":59290,"section_number":"59.1-263","catch_line":"Definitions","order_by":null,"url":"\/59.1-263\/"}],"permalink":{"id":260293,"object_type":"law","relational_id":61483,"identifier":"59.1-265","token":"59.1\/21\/59.1-265","url":"\/59.1-265\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/59.1-265\/","token":"59.1\/21\/59.1-265","dublin_core":{"Title":"Seller required to obtain bond or establish escrow account; action for damages against bond or account; limitation on liability of surety or escrow agent","Type":"Text","Format":"text\/html","Identifier":"\u00a7 59.1-265","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Before the business opportunity seller makes any of the representations set forth in \u00a7 59.1-263<\/a>, the seller shall either have obtained a surety<\/span> bond<\/span> issued by a surety<\/span> company authorized to do business in this Commonwealth or have established an escrow account with any credit union or any licensed and insured commercial bank or savings institution located in the Commonwealth of Virginia. The amount of the bond<\/span> or escrow account shall be an amount not less than $50,000. Any person who is damaged by any violation of this chapter or by the business opportunity seller’s breach of the contract<\/span> for the business opportunity sale or of any obligation arising therefrom may bring an action against the bond<\/span> or escrow account to recover damages<\/span> suffered; provided, however, that the aggregate escrow liability of the surety<\/span> or escrow agents under any such bond<\/span> or escrow account shall be only for actual damages<\/span> and in no event shall exceed the amount of the bond<\/span> or escrow account.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSELLER REQUIRED TO OBTAIN BOND OR ESTABLISH ESCROW ACCOUNT; ACTION FOR DAMAGES\nAGAINST BOND OR ACCOUNT; LIMITATION ON LIABILITY OF SURETY OR ESCROW AGENT (\u00a7\n59.1-265)\n\nBefore the business opportunity seller makes any of the representations set\nforth in \u00a7 59.1-263, the seller shall either have obtained a surety bond issued\nby a surety company authorized to do business in this Commonwealth or have\nestablished an escrow account with any credit union or any licensed and insured\ncommercial bank or savings institution located in the Commonwealth of Virginia.\nThe amount of the bond or escrow account shall be an amount not less than\n$50,000. Any person who is damaged by any violation of this chapter or by the\nbusiness opportunity seller’s breach of the contract for the business\nopportunity sale or of any obligation arising therefrom may bring an action\nagainst the bond or escrow account to recover damages suffered; provided,\nhowever, that the aggregate escrow liability of the surety or escrow agents\nunder any such bond or escrow account shall be only for actual damages and in no\nevent shall exceed the amount of the bond or escrow account.\n\nHISTORY: 1979, c. 523; 1996, c. 77.","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}}