2014 Va. Legis. Serv. 763 was approved by Governor Terry McAuliffe (D) on March 27, 2014, with an effective date (for most of its provisions) of July 1, 2014.
Among the various sections of laws amended by this act is Va. Code Ann. § 17.1-223(A), which will require the following:
“Every writing authorized by law to be recorded, with all certificates, plats, schedules or other papers thereto annexed or thereon endorsed, upon payment of fees for the same and the tax thereon, if any, shall, when admitted to record, be recorded by or under the direction of the clerk on such media as are prescribed by § 17.1-239. However, unless a cover sheet is submitted with the writing in accordance with § 17.1-227.1, the clerk has the authority to reject any writing for recordation unless
(i) as to any individual who is a part to such writing, the surname only of such individual is underscored or written entirely in capital letters in the first clause of the writing that identifies the names of the parties;
(ii) each page of the writing is numbered consecutively;
(iii) in the case of a writing described in § 58.1-801 or 58.1-807, the amount of the consideration and the actual value of the property conveyed is stated on the first page of the writing;
(iv) The laws of the United States or the Commonwealth under which any exemption from recordation taxes is claimed is clearly stated on eth face of the writing; and
(v) the name of each party to such writing under whose name the writing is to be indexed as grantor, grantee, or both is listed in the first clause of the writing that identifies the names of the parties and identified therein as grantor, grantee, or both, as applicable.
Such writing, once recorded, may be returned to any party to such writing who is identified therein as a grantee unless otherwise indicated clearly on the face of the writing, or any cover sheet, including an appropriate current address to which such writing shall be returned.”
Due to the fact that each of the parties to the instrument must be “identified therein as grantor, grantee, or both, as applicable” in the first clause of the writing identifying such parties, we will be modifying the second standard paragraph in our conventional Virginia security instrument (Cx354) to state the following:
“This Deed of Trust is given by [Borrower], as Borrower (trustor/grantor), to [Trustee], as Trustee, for the benefit of [Lender], as beneficiary (grantee).”
“This Deed of Trust is given by [Borrower], as Borrower (trustor/grantor), to [Trustee], as Trustee, for the benefit of Mortgage Electronic Registration Systems, Inc., as beneficiary (grantee).”
The changes to this paragraph do cause it to deviate slightly from the language promulgated in FNMA/FHLMC Form 3047. However, such a change is allowed under Change #17, which allows a notice to be included in the instrument if required by applicable law (and identifying the parties to the transaction as “grantor/grantee” is a notice).
We will also be adding “and grantee” after reference is made to the beneficiary in our standard FHA and second lien instruments (Cx407 and Cx512), as well as the phrase “the grantee” in referencing the beneficiary in our most popular HELOC instrument (Cx1335). Reference is already made in these documents to the borrower being the “grantor.”
These changes will take effect on July 1, 2014. If you have any questions or concerns about this change please contact Client Support at 1.800.497.3584.
June 25, 2014