Section 50. Audits

A. Every settlement agent other than a title insurance company shall, at its expense, have an audit of its escrow accounts conducted by an independent certified public accountant at least once each consecutive 12-month period. The audit month shall be prescribed by the bureau. Such audit shall conform with the standards established by the American Institute of Certified Public Accountants, AICPA Professional Standards, Volume 1, as of June 1, 2015, Special Considerations - Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement, and shall be filed by the settlement agent with the bureau no later than 60 days after the date on which the audit is completed. A title insurance company shall be subject to the requirements of this subsection unless such company's financial statements are audited annually by an independent certified public accountant.

B. Every settlement agent other than a title insurance company shall file a copy of its audit report with each title insurance company it represents.

C. In lieu of an audit conducted by a certified public accountant, a settlement agent other than a title insurance company shall allow each title insurance company for which it has an appointment to conduct an analysis of its escrow accounts at least once each consecutive 12-month period. The form of the analysis and the analysis month shall be prescribed by the bureau. The title insurance company shall submit a copy of its analysis to the bureau no later than 60 days after the date on which the analysis is completed. With the consent of the title insurance agent or agency, a title insurance company may share the results of its analysis with other title insurance companies that will accept the same in lieu of conducting a separate analysis.

D. Every settlement agent shall make a good faith effort to disburse funds in its possession and return the funds to the rightful owner, and escheat annually to the Virginia Department of the Treasury those funds for which the owner is unlocatable.

E. A settlement agent other than a title insurance company shall complete and file a close-out audit with the bureau in conformance with this chapter and the bureau's instructions within 180 days from the date the settlement agent ceases conducting settlements.

Historical Notes

Derived from Volume 13, Issue 25, eff. September 15, 1997; amended, Virginia Register Volume 14, Issue 26, eff. August 20, 1998; Volume 18, Issue 21, eff. June 3, 2002; Volume 32, Issue 22, eff. July 1, 2016.

Statutory Authority

§§ 12.1-13 and 55-525.28 of the Code of Virginia.