Virginia Amends Provisions Relating to Notaries, Appraisers, and Rescission of Deeds Fees
by: Louis Danastorg
Virginia’s legislature has enacted amendments to the VA Code relating to notary advertising prohibitions, appraisal management company licensure and civil actions to rescind deeds proven to have been obtained by fraud or undue influence.
Senate Bill 503: Notaries
Section 47.1-15.1: Addition Prohibition on Advertising
No notary may offer or provide legal advice on immigration or other legal matters, or represent any person in such matters. Further, no notary public may assume, use or advertise the title of “notario publico,” “licenciado” or any word in a language other than English that indicates that the notary is authorized to practice law or provide legal advice. Such improper advertising carries a civil penalty not to exceed $500 for the first violation; $1000 for any subsequent violations. Notaries authorized or licensed to practice law in VA are precluded from these prohibited acts.
Section 47.1-23: Grounds for Removal from Office
The Secretary has the discretion to revoke the commission of any notary when that notary:
1. Submits an application for commission and appointment as a notary public, which contains a substantial and material misstatement of fact;
2. Is convicted or has been convicted of any felony under federal or VA law without being pardoned, having the conviction vacated or having his or her rights restored;
3. Commits official misconduct;
4. Fails to perform the duties of a notary public or has been found liable in a VA court in any action arising out of fraud, misrepresentation, impersonation, or violation of VA notary laws;
5. Performs a prohibited act;
6. Is convicted of unauthorized practice of law or, as a licensed attorney, has his or her license revoked or suspended;
7. Ceases to be a US resident;
8. Becomes unable to read or write English;
9. Found mentally incompetent;
10. Fails to keep exclusive control over the official seal, journal, device, or password used to affix the notary’s official electronic signature or seal.
House Bill 762: Real Estate Appraisers
Section 54.1-2013: General Powers of Real Estate Appraiser Board; Educational Requirements for Licensure
The Board shall have all of the powers of a regulatory board and may do all things necessary and convenient to effectuate or enforce its provisions. The amended provision removes the Director’s emergency regulation powers, providing the Board the discretion to promulgate any necessary regulations. These regulations must include: educational and experience requirements as conditions for licensure, requirements for the supervision of appraiser practices, enforcement of professional standards, and referrals of improper appraiser conduct.
The Board is authorized to set different qualifications and standards for licensed residential real estate appraisers, certified residential real estate appraisers and certified general real estate appraisers. All applicants must meet any applicable education and experience requirements, and successfully complete a Board administered or approved examination prior to licensure. The Board’s regulations shall meet the minimum requirements established by the federal financial institution regulatory agencies to recognize and accept licenses issued by the Board for licensed residential real estate appraisers, certified residential real estate appraisers, certified general real estate appraisers, and appraisal management companies.
Section 54.1-2021.1: Appraisal Management Companies
No person or entity shall act as an appraisal management company without a Board issued licensed. The Board may grant a license to conduct business as an appraisal management company to any applicant that submits a complete application and provides evidence that he or she has:
1. Completed all Board requirements;
2. Certified to the Board: the name, address and contact information of the person or entity; contact information of any agent acting in VA or person owning ten or more percent of the company; proof of registration with the VA Corporation Commission; proof that anyone owning ten or more percent has never had an appraiser license that had been refused, denied, cancelled or revoked; proof of a system to periodically review appraiser work and ensure compliance with section 129E of the Truth in Lending Act.
3. Maintained a detailed record each request for appraisal service the companies has received, name of each independent appraiser, physical address of the subject property, name of the client for the appraisal, and the amounts to be paid specifically to the appraiser and appraisal management company.
Any controlling person of an appraisal management company (owning 10 or more percent) seeking licensure must be of good moral character, as determined by the Board, and submit to a background check. Separate from the application fee, each applicant must post a bond or letter of credit in an amount determined by the Board, at least $100,000. The bond or letter of credit must be in a Board prescribed form-letters of credit must be irrevocable-and accrue to VA for the benefit of a claimant against the licensee to secure faithful performance of the licensee’s obligations or an appraiser that performs an appraisal for the licensee without receiving payment. The amount of bond shall be restored or new letter of credit provided upon payment or draw from the account within 15 days, unless the Board shall immediately revoke the licensee’s license.
House Bill 312: Rescission of Deed Fees
Section 8.01-221.2: Rescission; Undue Influence; Attorney Fees
Courts may award plaintiffs reasonable attorney fees and costs associated with bringing a civil action to rescind a deed, contract or other instrument when, by clear and convincing evidence, the instrument was obtained by the defendant’s fraud or undue influence.
About the Author
Louis Danastorg, J.D., M.B.A. is Regulatory Compliance Consultant at Bankers Advisory, Inc. He is a graduate of Vanderbilt University and earned his Juris Doctor and Masters of Business Administration from Suffolk University. He can be reached at Louis@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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