WBK Industry News - State Regulatory Developments

Virginia Passes Amendments Regarding Settlement Agent Fees

Recently, Virginia passed amendments to its real estate settlement law regarding settlement agent fees.  The amendments prohibit settlement agents from collecting fees from sellers represented by counsel without the counsel’s written consent.  Additionally, the following is required to be added to the disclosure required in any contract for the purchase of real estate containing one to four unit dwellings:  “No settlement agent may collect any fees from a represented seller payable to the settlement agent or its subsidiaries, affiliates, or subcontractors without first obtaining the written consent of the seller’s counsel.”

These changes become effective on July 1, 2023.