Do I need a lawyer to buy a house in Virginia?

Not legally. Virginia doesn’t require a lawyer to buy a house. What it requires is a licensed, registered settlement agent to run the closing, and that can be an attorney, a title insurance company or agent, a licensed real estate broker, or a financial institution, under Va. Code § 55.1-1003. As the buyer, you choose who it is. The catch is that only a settlement agent who is a Virginia attorney you’ve hired can give you legal advice.

So the real question is whether your purchase needs legal advice, not just a closing. Here’s how to tell.

Who runs a Virginia closing?

Virginia has a specific law for this, the Real Estate Settlement Agents Act (Chapter 10 of Title 55.1). It lets these types of businesses act as settlement agents, as long as they’re registered and meet the law’s requirements:

Settlement agent type	Licensed or regulated by
Virginia-licensed attorney	Virginia State Bar
Title insurance company or appointed title insurance agent	State Corporation Commission’s Bureau of Insurance
Licensed real estate broker	Virginia Real Estate Board
Bank or other financial institution (or its subsidiary or affiliate)	Its financial regulator

The Virginia State Bar explains the history: the Bar once proposed treating real estate closings as the practice of law, which would have limited closings to lawyers, and the General Assembly passed the settlement agents law in 1997 instead. That’s why many Virginia closings are handled by title companies, while others are handled by law firms.

Every settlement agent other than a bank or title insurance company has to carry at least $250,000 in errors and omissions or malpractice coverage, a $100,000 fidelity bond (some owner-only firms can get a waiver) and a surety bond of at least $200,000, under § 55.1-1004.

Who picks the settlement agent?

You do. Under § 55.1-1006, the purchaser or borrower has the right to choose the settlement agent, and the seller can’t make a particular settlement agent a condition of the sale. Virginia contracts for homes with one to four units have to print that right in bold, per § 55.1-1007, so look for the “Choice of Settlement Agent” paragraph in your contract.

Pick early. Your settlement agent orders the title search, coordinates with your lender and prepares the settlement figures, so the choice affects your timeline.

What can a non-lawyer settlement agent do, and not do?

The required contract language says it plainly: the settlement agent’s role “involves the coordination of numerous administrative and clerical functions,” and no settlement agent can give legal advice unless it’s a Virginia attorney retained by a party to provide legal services.

The Virginia State Bar’s unauthorized practice rules draw the line in more detail:

A non-lawyer settlement agent can	A non-lawyer settlement agent can’t
Order the title search, survey, inspections and payoff figures	Explain your legal obligations under the contract or loan documents
Calculate tax, rent and interest prorations	Advise you on how to take title (for example, with a spouse or in a trust)
Prepare the settlement statement	Explain the legal effect of an exception in your title commitment
Receive and disburse funds	Draft deeds, deeds of trust or deed of trust notes
Fill in form documents the parties selected	Answer “What should I do?” or “What are my rights under this document?”

Your real estate agent is in a similar position. Virginia licensees can prepare purchase contracts as part of a deal they’re involved in, without a separate fee, under § 54.1-2101.1, but they aren’t your lawyer either.

When is it worth hiring a lawyer?

For many straightforward purchases with a lender, a title company closing works well. These are the situations where I’d tell a buyer to talk to a Virginia real estate attorney before signing or before settlement:

• The title commitment shows exceptions you don’t understand, such as easements, unreleased liens, boundary issues or old restrictions. A non-lawyer can’t explain their legal effect.
• You’re deciding how to hold title, whether jointly with someone who isn’t your spouse, in a trust or in an LLC.
• The deal isn’t standard: a for-sale-by-owner purchase without agents, an estate or court-ordered sale, a land contract, seller financing, a new-construction contract written by the builder, or a property with more than four units.
• Something’s in dispute, like a contract deadline, an earnest money disagreement or a repair the seller won’t make.

If you want a lawyer and a convenient closing in one, you can choose an attorney settlement agent and engage them to represent you. Confirm in writing that they’re representing you, not only closing the deal, because only then can they give you legal advice.

Sellers have their own option. Virginia law lets a seller hire an attorney to represent them, including deed preparation, fee negotiation and document review, under § 55.1-1006. Because a non-lawyer settlement agent can’t draft the deed, ask early who is preparing it.

What does Virginia law protect at settlement?

A few protections apply no matter who you choose:

• Two business days to record and disburse. Virginia’s settlement law requires the settlement agent to record the deed and deed of trust and disburse settlement proceeds within two business days of settlement, under § 55.1-903.
• Owner’s title insurance notice. The same section requires the settlement agent to tell you that owner’s title insurance is available. Your lender’s policy protects the lender, not you. Our guide to what title insurance covers in Virginia walks through the difference.
• Restrictive covenant removal. If the title search turns up a discriminatory restrictive covenant prohibited by Virginia law, the settlement agent has to tell you about your right to remove it.
• Seller identity checks. Settlement agents must use ordinary care to confirm the seller’s identity before settlement, one defense against deed fraud.
• You can ask for the guidelines. You’re entitled to a copy of the Virginia State Bar’s guidelines for settlement agents on request.

Questions to ask a settlement agent before you choose

1. Are you an attorney, a title agency or a broker, and where are you registered?
2. If you’re a law firm, will you represent me, or only conduct the closing?
3. What are your settlement and title fees, and which title insurer do you use?
4. How do you deliver wiring instructions, and how will you confirm them by phone?
5. Can you close in person, by mail-away or with a remote notary if I’m out of town?

Our article on buyer closing costs in Virginia covers what the settlement fee and title charges typically include, and what happens at a Virginia home closing covers the day itself.

This article is general information, not legal advice. For questions about your own contract or title, talk to a Virginia attorney.

What should you do next?

If you’re getting ready to buy in the Richmond, Charlottesville or Lynchburg area, Daniel Keeton, Broker & Founder of Keeton & Co Real Estate, and our team can walk you through the contract, the choice of settlement agent and the timeline before you make an offer. Start your home search with us or contact our team.