                                 CODE OF VIRGINIA

SETTLEMENT AGENT REGISTRATION REQUIREMENTS AND COMPLIANCE WITH UNAUTHORIZED
PRACTICE OF LAW GUIDELINES; CIVIL PENALTY (§ 55.1-1014)

A. Every settlement agent subject to the provisions of this chapter shall be
registered as such with the appropriate licensing authority. In conjunction
therewith, settlement agents shall furnish (i) their names, business addresses,
and telephone numbers and (ii) such other information as may be required. Each
such registration (a) shall be accompanied by a nonrefundable fee prescribed by
the appropriate licensing authority and (b) shall be renewed at least biennially
thereafter, except that (1) the registration of a person described in
subdivision A 2 of &#xA7; 55.1-1003 shall be renewed on or before May 1, 2021,
and biennially thereafter and (2) the registration of a person described in
subdivision A 3 of &#xA7; 55.1-1003 shall be renewed at the same time as renewal
of his title insurance agent license pursuant to &#xA7; 38.2-1825.1. When the
registration of a settlement agent is renewed, the appropriate licensing
authority shall notify the registrant of the provisions of &#xA7; 17.1-223.

B. The Commission shall retain the authority to enforce the provisions of and
impose any penalty or remedy authorized by this title and Title 38.2 against any
person who is under investigation by the Commission for or charged with a
violation of this title, even if the person&#8217;s license or registration has
been surrendered, terminated, suspended, or revoked or has lapsed by operation
of law.

C. The Virginia State Bar, in consultation with the Commission and the Real
Estate Board, shall adopt regulations establishing guidelines for settlement
agents designed to assist them in avoiding and preventing the unauthorized
practice of law in conjunction with providing escrow, closing, and settlement
services. Such guidelines shall be furnished by the appropriate licensing
authority to (i) each settlement agent at the time of registration and any
renewal thereof, (ii) state and federal agencies that regulate financial
institutions, and (iii) members of the general public upon request. Such
guidelines shall also be furnished by settlement agents to any party to a real
estate transaction in which such agents are providing escrow, closing, or
settlement services, upon request.

D. The Virginia State Bar shall receive complaints concerning settlement agent
or financial institution noncompliance with the guidelines established pursuant
to subsection C and shall (i) investigate such complaints to the extent they
concern the unauthorized practice of law or any other matter within its
jurisdiction and (ii) refer all other matters or allegations to the appropriate
licensing authority. The willful failure of any settlement agent to comply with
the guidelines shall be considered a violation of this chapter, and such agent
shall be subject to a civil penalty not exceeding $5,000 for each such failure
as the Virginia State Bar may determine.

HISTORY: 1997, c. 716, §§ 6.1-2.25, 6.1-2.26; 2004, cc. 336, 597; 2009, c.
256; 2010, c. 794, § 55-525.30; 2016, c. 619; 2019, cc. 675, 712; 2020, c. 225.