---
title: "Document Updates: Virginia Choice of Settlement Agent Notice (Cx5101)"
description: Join the First American network of trusted title agents with comprehensive tools and resources.
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# Document Updates: Virginia Choice of Settlement Agent Notice (Cx5101)
Jun 26, 2023
Topics: [Document Updates](https://compliance.docutech.com/tag/document-updates)
On March 24, 2023, Governor Glenn Youngkin approved Virginia House Bill 1888 which requires the written consent of the seller’s counsel before a settlement agent or its subsidiaries, affiliates, or subcontractors can collect any fees payable to such settlement agent or its subsidiaries, affiliates, or subcontractors from a represented seller. Virginia House Bill 1888 becomes effective July 1, 2023.
Va. Code Ann. § 55.1-1007 has been amended to include an additional disclosure sentence at the end of the “Choice of Settlement Agent” section:
All contracts involving the purchase of real estate containing not more than four residential dwelling units shall include in at least 10-point boldface type the following language:
“Choice of Settlement Agent: Chapter 10 (§ 55.1-1000 et seq.) of Title 55.1 of the Code of Virginia provides that the purchaser or borrower has the right to select the settlement agent to handle the closing of this transaction. The settlement agent’s role in closing this transaction involves the coordination of numerous administrative and clerical functions relating to the collection of documents and the collection and disbursement of funds required to carry out the terms of the contract between the parties. If part of the purchase price is financed, the lender for the purchaser will instruct the settlement agent as to the signing and recording of loan documents and the disbursement of loan proceeds. No settlement agent can provide legal advice to any party to the transaction except a settlement agent who is engaged in the private practice of law in Virginia and who has been retained or engaged by a party to the transaction for the purpose of providing legal services to that party. ***No settlement agent may collect any fees from a represented seller payable to the settlement agent or its subsidiaries, affiliates, or subcontractors without first obtaining the written consent of the seller’s counsel.***
“Variation by agreement: The provisions of Chapter 10 (§ 55.1-1000 et seq.) of Title 55.1 of the Code of Virginia may not be varied by agreement, and rights conferred by this chapter may not be waived. The seller may not require the use of a particular settlement agent as a condition of the sale of the property.
“Escrow, closing, and settlement services guidelines: The Virginia State Bar issues guidelines to help settlement agents avoid and prevent the unauthorized practice of law in connection with furnishing escrow, settlement, or closing services. As a party to a real estate transaction, the purchaser or borrower is entitled to receive a copy of these guidelines from his settlement agent, upon request, in accordance with the provisions of Chapter 10 (§ 55.1-1000 et seq.) of Title 55.1 of the Code of Virginia.”
As such, the additional disclosure sentence has been added to Cx5101 – Virginia Choice of Settlement Agent Notice.
This change will be in effect on July 1, 2023. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
*LEG-1102*
###### The preceding is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.
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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.
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