14 Va. Admin. Code § 5-395-75

Current through Register Vol. 41, No. 4, October 8, 2024

Section 14VAC5-395-75 - Operating requirements

A settlement agent shall comply with the following requirements:

1. A settlement agent shall continuously maintain the requirements and standards for licensure and registration.

2. A settlement agent shall reconcile its escrow accounts monthly.

3. A settlement agent shall not provide any information to the bureau or a consumer that is false, misleading, or deceptive.

4. A settlement agent shall not charge duplicative or padded fees for escrow, closing, or settlement services.

5. A settlement agent shall not engage in any activity that directly or indirectly results in an evasion of the provisions of Chapter 10 or this chapter.

6. Any person, other than a party to the transaction, who conducts the settlement conference and receives or handles money, including possessing wire transfer authority, shall be deemed a "settlement agent" subject to the applicable requirements of Chapter 10 and this chapter.

7. A designated licensed producer shall be appointed by the same title insurance company as its employer settlement agent.

8. A settlement agent shall not use or accept the services of a title insurance agent who is an independent contractor unless the title insurance agent is licensed and appointed. A settlement agent that permits an independent contractor to conduct one or more settlement conferences on behalf of the settlement agent shall ensure that the independent contractor is properly insured and bonded as required by Chapter 10 and this chapter.

9. A settlement agent that uses the services of a title insurance agent who is an independent contractor shall be considered the legal principal of the independent contractor and shall be liable for any violations of Chapter 10 or this chapter committed by the independent contractor, including unintentional conduct, within the scope of engagement.

10. A former settlement agent shall remain subject to the provisions of Chapter 10 and this chapter in connection with all settlements that the settlement agent performed while licensed and registered, notwithstanding the occurrence of any of the following events:

a. The settlement agent's license is surrendered, terminated, suspended, or revoked or has lapsed by operation of law; or

b. The settlement agent ceases conducting settlements.

11. If a settlement agent or former settlement agent disposes of records containing a consumer's personal financial information or copies of a consumer's identification documents, such records and copies shall be disposed of in a secure manner.

14 Va. Admin. Code § 5-395-75

Derived From Virginia Register Volume 32, Issue 22, eff. 7/1/2016; Amended, Virginia Register Volume 36, Issue 04, eff. 10/14/2019.

Statutory Authority: §§ 12.1-13 and 55.1-1012 of the Code of Virginia.