On April 11, 2022, Virginia Gov. Glenn Youngkin signed into law H 1153, legislation which contains multiple provisions related to real estate brokerages, mortgage brokers, and dual compensation.
The dual compensation disclosure language required by Va. Code Ann. § 6.2-1616(B)(5) has been repealed, and beginning July 1, 2022, new dual compensation disclosure language will be required per Va. Code Ann. § 6.2-1616(C).
The new dual compensation disclosure language added to Va. Code Ann. § 6.2-1616(C) reads:
“YOU ARE HEREBY NOTIFIED THAT YOU ARE NOT REQUIRED TO ENTER INTO ANY ARRANGEMENT FOR REAL ESTATE BROKER OR REAL ESTATE SALESPERSON SERVICES WITH A REAL ESTATE BROKER OR REAL ESTATE SALESPERSON TO WHOM WE HAVE REFERRED YOU.
YOU ARE HEREBY NOTIFIED THAT [NAME OF MORTGAGE BROKER] WILL BE RECEIVING COMPENSATION FOR PROVIDING BOTH MORTGAGE BROKER SERVICES AND REAL ESTATE BROKER OR REAL ESTATE SALESPERSON SERVICES IN CONNECTION WITH THE SALE OF THE REAL ESTATE THAT SECURES THIS MORTGAGE LOAN.
YOU ARE HEREBY NOTIFIED THAT WE DO NOT REPRESENT ALL OF THE LENDERS IN THE MARKET AND THE LENDERS WE DO REPRESENT MAY NOT OFFER THE LOWEST INTEREST RATES OR BEST TERMS AVAILABLE TO YOU.”
To comply with this new requirement, the new dual compensation disclosure language will now appear on VA Notice (Cx3592) replacing the language previously required by Va. Code Ann. § 6.2-1616(B)(5).
These changes will be in effect on July 1, 2022 and are currently on Stage servers for testing. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.