Section 60. Separate fiduciary trust account

A. Every settlement agent shall maintain a separate fiduciary trust account for the purpose of handling funds received in connection with escrow, closing, or settlement services involving real estate located only in this Commonwealth. No other funds may be included in this escrow account except funds deposited to guarantee the adequacy of the account. Such trust account shall be with a financial institution authorized to do business in the Commonwealth of Virginia.

B. If the settlement agent provides escrow, closing, or settlement services in transactions involving multiple parcels or tracts of real estate and any one of those tracts or parcels is located wholly or partially outside of this Commonwealth, the settlement agent shall maintain another separate fiduciary trust account for the purpose of handling funds received in connection with such transactions.

C. A settlement agent may utilize a general escrow account for the purpose of receiving funds in connection with an escrow, closing, or settlement involving real estate located in the Commonwealth, provided that the settlement agent (i) handles the funds in a fiduciary capacity and (ii) deposits the funds in a separate fiduciary trust account in compliance with subsection A of this section no later than the close of the second business day after receipt of the funds.

Historical Notes

Derived from Volume 13, Issue 25, eff. September 15, 1997; amended, Virginia Register Volume 16, Issue 04, eff. October 20, 1999; 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.