Key Takeaways
- Virginia settlements (closings) may be conducted by attorneys, title companies, or lenders
- The closing disclosure must be provided to the buyer at least 3 business days before closing per federal law
- Virginia uses deeds (general warranty, special warranty, quitclaim) for property transfers
- Real estate transfer tax in Virginia is typically split between buyer and seller
- Recording fees are paid to the clerk of the circuit court to record deeds
Virginia Settlement Procedures
Virginia has specific requirements for real estate closings (called "settlements" in Virginia).
Who Conducts Settlements
In Virginia, settlements may be conducted by:
| Entity | Role |
|---|---|
| Title Company | Provides title insurance, may conduct settlement |
| Settlement Agent | Licensed or exempt party conducting closing |
| Attorney | May conduct settlement and provide legal advice |
| Lender | Provides loan documents and funds |
| Real Estate Agent | Coordinates, but does not conduct settlement |
Settlement Agent Requirements
Virginia regulates settlement agents through the Virginia Consumer Real Estate Settlement Protection Act (CRESPA):
- Settlement agents must be licensed or exempt
- Must maintain escrow accounts properly
- Must follow specific disclosure requirements
Pre-Settlement Requirements
Closing Disclosure (Federal TRID Rules)
| Document | Timing |
|---|---|
| Loan Estimate | Within 3 business days of application |
| Closing Disclosure | At least 3 business days before settlement |
| Changes requiring new 3-day wait | APR increase >0.125%, loan product change, prepayment penalty added |
Title Examination
The title examination typically:
- Searches public records for title defects
- Examines chain of title
- Identifies liens, encumbrances, easements
- Results in title insurance commitment
Types of Deeds in Virginia
General Warranty Deed
Provides the greatest protection to the buyer:
- Warrants title against all defects (past and present)
- Guarantees right to convey
- Covenants of quiet enjoyment
- Most common in residential sales
Special Warranty Deed
Provides limited protection:
- Warrants only against defects during seller's ownership
- Does not cover prior owners' actions
- Common in REO and foreclosure sales
Quitclaim Deed
Provides no warranty:
- Transfers only the interest the grantor has (if any)
- No promises about title quality
- Used between family members, to clear title issues
Settlement Costs and Prorations
Virginia Transfer Tax
Virginia has state and local transfer taxes:
| Tax | Rate | Typically Paid By |
|---|---|---|
| State Recordation Tax | $0.25 per $100 | Split buyer/seller |
| State Grantor's Tax | $0.50 per $500 | Seller |
| Regional Congestion Relief Fee | Varies by locality | As negotiated |
Property Tax Proration
Virginia property taxes are typically:
- Paid semi-annually or annually
- Prorated at settlement based on calendar year
- Direction of proration depends on payment status
Other Common Prorations
| Item | How Prorated |
|---|---|
| HOA dues (if prepaid) | Seller credited by buyer |
| Rent (if applicable) | Buyer credited by seller |
| Utilities | Usually not prorated; accounts transferred |
Recording Requirements
Where to Record
Deeds are recorded with the Clerk of Circuit Court in the city or county where the property is located.
Recording Fees
| Document | Fee Structure |
|---|---|
| Deed | Per page fee plus transfer tax |
| Deed of Trust (Mortgage) | Per page fee plus transfer tax |
| Other documents | Per page fee |
Priority
Recording establishes priority of interests - first to record has priority.
What federal rule requires the Closing Disclosure to be provided at least 3 business days before settlement?
Where are deeds recorded in Virginia?
Which party typically pays the Grantor's Tax in Virginia?