14VAC5-395 Rules Governing Settlement Agents

REGULATIONS

Vol. 27 Iss. 4 - October 25, 2010

TITLE 14. INSURANCE

STATE CORPORATION COMMISSION

Chapter 395

Final Regulation

REGISTRAR'S NOTICE: The following amendments are exempt from the Virginia Administrative Process Act pursuant to § 2.2-4002 C of the Code of Virginia, which provides that minor changes to regulations published in the Virginia Administrative Code under the Virginia Register Act, Chapter 41 (§ 2.2-4100 et seq.) of Title 2.2 of the Code of Virginia, made by the Virginia Code Commission pursuant to § 30-150, shall be exempt from the provisions of the Virginia Administrative Process Act.

Title of Regulation: 14VAC5-395. Rules Governing Settlement Agents (amending 14VAC5-395-10, 14VAC5-395-20, 14VAC5-395-25, 14VAC5-395-30, 14VAC5-395-80).

Statutory Authority: §§ 12.1-13, 55-525.28, and 55-525.30 of the Code of Virginia.

Effective Date: October 25, 2010.

Agency Contact: Steve Shipman, Senior Insurance Market Examiner, Bureau of Insurance, State Corporation Commission, P.O. Box 1157, Richmond, VA 3218, telephone [phone], FAX [phone], or email [e-mail].

Summary:

During the 2010 Session of the General Assembly, Title 6.1 of the Code of Virginia was repealed and recodified as Title 6.2 of the Code of Virginia. As a part of the recodification of Title 6.1, Code of Virginia statutes pertaining to settlement agents were renumbered and made a part of Title 55 of the Code of Virginia. The changes in these regulations repeal references to Title 6.1 of the Code of Virginia and conform code citations and chapter references to the current cites in Title 55 of the Code of Virginia.

14VAC5-395-10. Purpose.

A. The purpose of this chapter is to implement the Consumer Real Estate Settlement Protection Act (§ 6.1-2.19 et seq. of the Code of Virginia) Chapter 27.3 (§ 55-525.16 et seq.) of Title 55 of the Code of Virginia.

B. This chapter applies to all title insurance agents, title insurance agencies and title insurance companies providing escrow, closing or settlement services involving the purchase of or lending on the security of real estate containing not more than four residential dwelling units in the Commonwealth of Virginia.

C. The Bureau of Insurance shall issue the necessary forms to carry out the provisions of the Act Chapter 27.3 (§ 55-525.16 et seq.) of Title 55 of the Code of Virginia and this chapter.

14VAC5-395-20. Definitions.

As used in this chapter:

"Act" means the Consumer Real Estate Settlement Protection Act (§ 6.1-2.19 et seq. of the Code of Virginia). Unless otherwise defined herein, all terms used in this chapter shall have the meaning as set forth in the Act Chapter 27.3 (§ 55-525.16 et seq.) of Title 55 of the Code of Virginia.

"Agent" or "insurance agent" shall have the same meaning as set forth in § 38.2-1800 of the Code of Virginia.

"Bureau" means the State Corporation Commission Bureau of Insurance.

"Lay real estate settlement agent" means a person who (i) is not licensed as an attorney under Chapter 39 (§ 54.1-3900 et seq.) of Title 54.1 of the Code of Virginia, (ii) is not a party to the real estate transaction, (iii) provides escrow, closing or settlement services in connection with a transaction related to any real estate in this Commonwealth, and (iv) is listed as the settlement agent on the settlement statement for such transaction.

"Settlement agent" shall have the same meaning as set forth in § 6.1-2.20 55-525.16 of the Code of Virginia.

"Title insurance agency" means a business entity licensed in this Commonwealth as a title insurance agent.

"Title insurance agent" shall have the same meaning as set forth in § 38.2-1800 of the Code of Virginia.

"Title insurance company" means any company licensed to transact, or transacting, title insurance in this Commonwealth.

14VAC5-395-25. Lay real estate settlement agents.

Notwithstanding any provision of this chapter to the contrary, and pursuant to the Real Estate Settlement Agent Registration Act (§ 6.1-2.30 et seq.) of Title 6.1 § 55-525.18 of the Code of Virginia, a lay real estate settlement agent shall be required to comply with the provisions of this chapter, except as specifically set forth in 14VAC5-395-60.

14VAC5-395-30. Registration.

Every title insurance agent, title insurance agency and title insurance company that acts as a settlement agent shall be required to be registered with the bureau in accordance with the provisions of § 6.1-2.26 55-525.30 of the Code of Virginia.

14VAC5-395-80. Violations.

Any violation of this chapter shall be punished as provided for in the Act Chapter 27.3 (§ 55-525.16 et seq.) of Title 55 of the Code of Virginia.

VA.R. Doc. No. R11-2580; Filed October 5, 2010, 5:02 p.m.