State Practice, Closing, and Escrow (Virginia)
This topic covers how Virginia transactions are closed, how escrow funds are handled, and the role of the settlement agent.
Escrow and Trust Accounts
Virginia licensees must deposit client escrow funds, such as earnest money, into a separate escrow account and keep accurate records, disbursing only as the contract and law permit. Commingling escrow money with the broker's own funds or converting it is prohibited and can result in discipline. Proper escrow handling protects the parties' deposits.
Settlement and Closing Customs
Virginia residential closings are commonly conducted by a licensed settlement agent or a real estate attorney who prepares closing documents, coordinates title work, and disburses funds. At closing, taxes and other items are prorated, the deed is recorded in the local land records, and title transfers. Understanding the settlement process helps licensees guide clients smoothly to completion.