Resources · October 2026

Virginia closing deadlines for title and settlement companies

Federal TRID sets the disclosure dates. Virginia adds its own: when the lender has to fund, when you have to disburse, how fast escrow money goes in the bank, and what you register, insure, audit and keep. Here is what the Code of Virginia says, with the section for each rule.

Funding, recording and disbursement

These rules are in Title 55.1, Chapter 9. They apply to loans secured by first deeds of trust or mortgages on real estate with no more than four residential dwelling units (§55.1-901).

The lender funds at or before loan closing. On a refinance or any other loan with a right of rescission, the lender must disburse loan funds to the settlement agent within one business day after the federal rescission period expires (§55.1-902).
The clock starts at “settlement.” Settlement is the time when you have the signed deed, loan funds, loan documents and the other documents and funds the contract requires, and you reasonably determine the prerecordation conditions are met (§55.1-900). It isn’t always the signing appointment.
Record and disburse. The settlement agent must cause the deed, deed of trust or other required documents to be recorded, and must cause settlement proceeds to be disbursed within two business days of settlement (§55.1-903(B)).
No disbursing before recording, except overpayments being returned, money needed to record, and funds the provider has directed in a separate writing to be paid out before recording (§55.1-903(B)).
Check the seller. Before settlement, the agent must use ordinary care to reasonably confirm the seller’s identity (§55.1-903(A)).

Who can conduct a settlement, and registration

Under §55.1-1003, a settlement agent must be one of these: a Virginia-licensed attorney, a licensed title insurance company, a licensed title insurance agent appointed by a Virginia-licensed title insurer, a licensed real estate broker, a financial institution authorized to do business in Virginia, or a subsidiary or affiliate of one. A person convicted of a felony can’t act as a settlement agent unless their civil rights have been restored or they have been granted a writ of actual innocence.

Every settlement agent must register with its licensing authority and renew at least every two years (§55.1-1014). The licensing authority is the State Corporation Commission, the Virginia State Bar or the Real Estate Board, depending on the agent (§55.1-1000). Title agents register with the SCC’s Bureau of Insurance and must send it their names, addresses, escrow account and bank details, staff lists and affiliates within 30 days of registering (14VAC5-395-30).

Unless you are a financial institution or a title insurance company, you must carry (§55.1-1004(B)):

Errors and omissions or malpractice insurance of at least $250,000
A blanket fidelity bond or employee dishonesty insurance of at least $100,000 (an office with no employees other than its owners can ask for a waiver)
A surety bond of at least $200,000

Escrow accounts need an independent CPA audit at least once every 12 months, with the report sent to the licensing authority within 60 days of completion. Attorneys and title companies with annually audited financials are excluded. A title agent can instead rely on an escrow account analysis by each title insurer that appointed it (§55.1-1004(C)).

Escrow account rules

Deposit settlement funds in a separate fiduciary trust account at a financial institution authorized to do business in Virginia, no later than the close of the second business day (§55.1-1008(A)).
Keep each file’s funds identifiable, and use them only as the instructions allow (§55.1-1008(A)).
Disburse only under a written instruction or agreement. A settlement statement or Closing Disclosure signed by the seller and the buyer or borrower counts (§55.1-1008(B)).
If you move title premiums to a separate premium escrow account, do it within two business days (§55.1-1008(B)).
You can’t keep interest earned on escrow funds (§55.1-1008(C)).
Title agents must reconcile escrow accounts monthly (14VAC5-395-75).

Recording and e-recording

Deeds and deeds of trust are recorded with the clerk of the circuit court (§55.1-600). Clerks may accept electronic documents for recording, but the law doesn’t require every clerk to offer it (§55.1-663). Check each clerk’s e-recording options and fees before the file closes.

Who pays the closing taxes

The grantor tax is paid by the grantor, but the grantor and grantee can agree that the grantee pays all or part of it (§58.1-802). For recordation tax, grantor tax and the regional fees in Northern Virginia and Hampton Roads, use our closing tax calculator.

Notices on residential closings

Choice of settlement agent. A contract to buy real estate with no more than four residential units must include the statement in §55.1-1007, in at least 10-point bold type. It says the buyer or borrower can choose the settlement agent and the seller can’t require a particular one.
Owner’s title insurance and covenants. On a residential purchase or sale, the settlement agent must notify the buyer that owner’s title insurance is available, and of the buyer’s right to remove a prohibited restrictive covenant found in the title search (§55.1-903(B)).
Land use assessment notice, starting January 1, 2027. If you know the property is taxed under a local land use program, give the buyer the written notice required by §58.1-3234.1 before settlement and get a signed acknowledgment at or before settlement. Keep it at least five years. A willful failure carries a civil penalty of up to $250 (§55.1-1008.1).

Dates to put on every Virginia file

Each escrow deposit: in the trust account by the close of the second business day (§55.1-1008(A))
Settlement, as defined in §55.1-900, and the date it actually happened
Disbursement: within two business days of settlement (§55.1-903(B))
Refinances: lender funding due one business day after rescission expires (§55.1-902)
Recording, and confirmation it happened before you disbursed (§55.1-903(B))
Land use notice delivered and acknowledgment signed, for settlements on or after January 1, 2027 (§55.1-1008.1)
Record retention: keep the file at least five years after the settlement is completed (§55.1-1011)

And for the office: monthly escrow reconciliation (14VAC5-395-75), the yearly escrow audit and its 60-day report (§55.1-1004(C)), and your two-year registration renewal (§55.1-1014).

Federal TRID dates still apply

None of this replaces the federal timing rules. The Closing Disclosure still has to be received three business days before consummation, and refinances still wait out the right of rescission. See TRID business days, explained, or count a file’s dates with the closing deadline calculator.

Keep every date in one place

Closing Desk tracks the deadlines on every open file and puts the ones that need someone today at the top. Our free tax calculator covers Virginia recordation and grantor taxes.

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Other state guides: Maryland · DC · All resources

This is a general summary of Virginia law as of October 2026, not legal advice. Lender instructions, underwriter requirements and later changes to the law can add to it; check the current Code of Virginia and your underwriter for each file.