Bill > HB39

This bill amends Section 55.1-903 of the Virginia Code to expand the duties of a settlement agent during residential real estate transactions. Specifically, the bill requires settlement agents to not only perform their existing responsibilities of recording deeds and disbursing settlement proceeds within two business days, but also to provide two additional pieces of information to property purchasers: (1) notify the purchaser about the availability of owner's title insurance, and (2) inform the purchaser of their right to remove a restrictive covenant that was identified during the title search. A restrictive covenant is a legal provision in a property deed that limits how the property can be used, such as restrictions on building design, property modifications, or land use. By mandating that settlement agents proactively inform purchasers about these details, the bill aims to increase transparency and ensure buyers are fully aware of potential limitations or options related to their property's title. The bill does not change the existing restrictions on when settlement agents can disburse funds, maintaining the current protections around fund disbursement.

Business and Industry, Housing and Urban Affairs, Justice

https://lis.virginia.gov/bill-details/20261/HB39