AMENDMENT PROPOSED BY THE HOUSE COMMITTEE ON CORPORATIONS, INSURANCE AND BANKING (REJECTED)

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§ 6.1-2.26. Settlement agent and financial institution registration with Virginia State Bar; guidelines.

A. Every settlement agent subject to the provisions of this Act, and every financial institution and affiliates or subsidiaries thereof providing escrow, closing or settlement services shall be registered as such with the Virginia State Bar within 90 days of the effective date of this Act. In conjunction therewith, such settlement agents and financial institutions shall furnish (i) their names, business addresses and telephone numbers, (ii) information pertaining to licenses issued them by any licensing authority, and (iii) such other information as may be required by the Virginia State Bar. The Virginia State Bar shall accept in satisfaction of the requirements of this subsection, licensing forms submitted by such settlement agents and financial institutions to any licensing authority, as defined in this Act, if such forms contain substantially the same information required hereby. Each such registration (i) shall be accompanied by a fee not to exceed $100, and (ii) shall be renewed at least biennially thereafter.

B. The Virginia State Bar, in consultation with the Virginia State Corporation Commission and the Virginia Real Estate Board, shall promulgate regulations establishing guidelines for settlement agents and financial institutions 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 Virginia State Bar to each settlement agent and financial institution at the time of registration and any renewal thereof, and shall also be furnished to members of the general public upon request. Such guidelines shall also be furnished by settlement agents and financial institutions to parties to real estate transactions and which such settlement agents or financial institutions are providing escrow, closing or settlement services, upon request.

C. The Virginia State Bar shall receive complaints concerning settlement agent or financial institution noncompliance with the guidelines established pursuant to subsection B and shall (i) investigate the same 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.

D. The willful failure of any settlement agent or financial institution to comply with the provisions of this section shall be a violation of this Act, and such settlement agent or financial institution shall be subject to a penalty of up to $5,000 for each such failure as the Virginia State Bar may determine.