Included in this year’s General Assembly session was SB 533 sponsored by Senator Lynwood Lewis from the Eastern Shore of Virginia. The bill unanimously passed both the House of Delegates and the State Senate and has been sent to the Governor for his consideration.
The bill reduces broker liability by clarifying that a broker cannot be held responsible for escrow violations when a third party is delivering and/or hold escrow monies. The current process leaves brokers vulnerable to DPOR sanctions when there are escrow violations, even if the broker is not actually holding those escrow monies. The bill is expected to be signed by the Governor and would go into effect on July 1, 2022.