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Housekeeping Amendment to CRESPA Regulations
and UPL Guidelines for Real Estate Settlement Agreements

The Consumer Real Estate Settlement Protection Act regulations and the UPL Guidelines for Real Estate Settlement Agents need to be conformed to the statute governing the amount of the surety bond for settlement agents.  You will recall that Senate Bill 149 was passed by the 2008 General Assembly, increasing the CRESPA surety bond from $100,000 to $200,000, effective July 1, 2008.  This housekeeping amendment, as set forth in the attached, will conform the regulations and the guidelines to the statute.

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15 VAC 5-80-50.  Attorney Settlement Agent Compliance.

A.  Attorney Settlement Agent Certification.

Each attorney settlement agent shall, at the time of initial registration and each subsequent reregistration, certify on the form available from the Bar for that purpose, that the attorney settlement agent has in full force and effect the following insurance and bond coverages, and that such coverages will be maintained in full force and effect throughout the time the attorney settlement agent acts, offers or intends to act in that capacity:

1.    A lawyer’s professional liability insurance policy issued by a company authorized to write such insurance in Virginia providing first dollar coverage and limits of at least $250,000 per claim covering the licensed attorney acting, offering or intending to act as a settlement agent. The policy may also cover other attorneys practicing in the same firm or legal entity.

2.    A blanket fidelity bond or employee dishonesty insurance policy issued by a company authorized to write such bonds or insurance in Virginia providing limits of at least $100,000 covering all other employees of the attorney settlement agent or the legal entity in which the attorney settlement agent practices.

3.    A surety bond issued by a company authorized to write such bonds in Virginia, on a form approved by the Virginia State Bar, providing limits of at least $200,000 covering the licensed attorney acting, offering or intending to act as a settlement agent.  A copy of the approved bond form is available from the Bar. The bond may also cover other attorney settlement agents practicing in the same firm or legal entity.  The original surety bond must be attached to the attorney settlement agent's certification form and furnished to the Bar; a surety bond on which a law firm is named as principal may be furnished by the firm or any one attorney settlement agent in the firm, with other such attorney settlement agents in the same firm attaching a copy to their forms.

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posted 7/11/08 

Updated: Jul 11, 2008