VA Underwriting Summary

Search/Exam

• Minimum Search Requirements -- No statutory requirements. Accepted practice is 40 years constitutes a full search, although some attorneys still insist on 60 years.
• Plant or other search restrictions -- No
• Additional Requirements for REO Searches -- N/A
• Foreclosure Checklist -- N/A
• Special Searches Required (Code, HOA, Utilities)? -- N/A
• Survey Requirements -- Owners Policy – Yes; Loan Policy – No
• UPL Hot Button Issues -- Doc Prep is UPL

UPL

Attorneys must prepare legal documents; no other requirements.

Witness Requirements

Acknowledgment only; witnesses are not required on any deed or security instrument.

Mortgage/Transfer Tax

• Deeds generally: The tax rate is 25 cents on every $100 (or fraction of $100) of the consideration or the actual value of the property conveyed, whichever is greater. An additional tax may be imposed by the localities equal to one-third of the state tax. In addition to the tax on deeds, a grantor tax is imposed at the rate of 50 cents on every $500 (or fraction of $500) of the consideration or value of the interest exclusive of the value of any lien or encumbrance.
• Deeds of trust or mortgages: The tax rates on the bonds or other obligations secured by the deed of trust or mortgage are as follows:
  • on the first $10 million, 25 cents on every $100 or portion thereof;
  • on the next $10 million, 22 cents on every $100 or portion thereof;
  • on the next $10 million, 19 cents on every $100 or portion thereof;
  • on the next $10 million, 16 cents on every $100 or portion thereof; and,
  • on all over $40 million, 13 cents on every $100 or portion thereof.
• An additional tax may be imposed by the localities equal to one-third of the state tax.
• Tax Rate for Refinanced Deeds of Trust: Effective for deeds of trust or mortgages recorded beginning July 1, 2012, the recordation tax rates on the bonds or other obligations secured by the refinanced deed of trust or mortgage are as follows:
  • on the first $10 million, 18 cents on every $100 or portion thereof;
  • on the next $10 million, 16 cents on every $100 or portion thereof;
  • on the next $10 million, 14 cents on every $100 or portion thereof;
  • on the next $10 million, 12 cents on every $100 or portion thereof; and,
  • on all over $40 million, 10 cents on every $100 or portion thereof.
  • These rates apply regardless of whether the loan is refinanced with the same lender or with a different lender.
• Congestion Relief Fee: Effective July 1, 2013, a regional congestion relief fee is imposed on the recording of any deed or instrument conveying real property that is situated in a locality included in the Northern Virginia Region when the consideration or value of the interest in such property, whichever is greater, equals or exceeds $100. The fee, which is to be paid by the seller (grantor), is imposed on the consideration or value in addition to any other required recordation taxes and fees at the rate of $0.15 per $100 or fraction thereof. Affected localities are the Cities of Alexandria, Fairfax, Falls

Source: Virginia Tax Facts, January 2014

Spousal Joinder Requirements/Homestead

Spousal joinder Not Required

Who May Serve As Trustee On Deed Of Trust

• Deeds of Trust are prevailing security instrument, although Mortgages are acceptable.
• Trustees must be residents of the state. If corporation is to serve as trustee, VA must be principal place of business.

Time Limitations

• US Judgment Liens -- 20 years
• State Court Judgment Liens -- 20 years
• Federal Tax Liens -- 10 years (+ 30 days)
• State Tax Liens -- 20 years
• Estate Tax Lien -- 10 years
• State Inheritance Tax Liens --
• Mechanics Liens -- 6 months
• Financing Statements -- 5 years
• Mortgages --
• HOA Liens -- 3 years (2 years prior to 2005)
• Condominium assessments --
• Child Support Liens --