| Remmoo | Virginia Real Estate · Legal Alert |
Virginia’s General Assembly passed companion bills HB 163 and SB 316 in the 2026 session with unanimous bipartisan support. Key provisions take effect July 1, 2026 and impose new legal obligations on settlement agents and notaries across the Commonwealth.
If you own property in Virginia — whether it’s your primary home, a rental, or a vacant lot — the law just changed in ways that directly affect how your deed is protected, who can notarize your sale, and what a settlement agent must verify before closing.
Deed fraud has quietly become one of the fastest-growing property crimes in the United States, and Virginia is now fighting back with a comprehensive legislative response. After a year-long statewide study and unanimous passage in both chambers, the Virginia General Assembly delivered two landmark companion bills — HB 163 and SB 316 — that fundamentally overhaul how property identities are verified and how fraud attempts are caught before they destroy someone’s ownership rights.
These bills amend three major titles of Virginia law — covering land records, notarial acts, and settlement agent duties — and create a layered system of protections that simply did not exist before. Here is everything Virginia property owners, buyers, sellers, and real estate professionals need to know.
|
3
Virginia Code Titles Amended |
7/1
Key Effective Date, 2026 |
100%
Bipartisan Vote Margin |
Why Virginia Acted — and Why Now
The roots of this legislation trace back to 2025, when the General Assembly passed HB 2396 and SB 1270, directing the Virginia Housing Development Authority to convene a statewide technical advisory group to study deed fraud. The group’s final report, submitted November 1, 2025, found that deed fraud disproportionately targets unencumbered and vacant properties — land with no mortgage and no lender monitoring the title.
Fraudsters exploit publicly available data — tax records, online property searches, deed images — combined with forged notarizations to impersonate owners and sell property out from under them. Victims are often older adults, out-of-state owners, or those who simply don’t monitor their land records regularly.
Deed fraud increasingly affects landowners and buyers across the Commonwealth and primarily targets unencumbered, vacant properties. Fraudsters use information available on the internet and digital tools to forge signatures and impersonate property owners, often advertising rushed, cash-only sales.
What Changes on July 1, 2026
The legislation is structured in two staggered phases. The first wave — covering notary journals and settlement agent duties — takes effect July 1, 2026. The second wave — covering notary education, seal requirements, and mandatory statewide property alerts — takes effect July 1, 2027.
Notary Journals Required for All Acts: Every Virginia notary must maintain a detailed journal of all notarial acts for a minimum of five years, capturing date, time, type of act, document description, principal identity, and fee charged.
Settlement Agent Identity Verification Duty: Settlement agents now bear a statutory obligation to exercise ordinary care in verifying the identity of any seller before closing, with approved verification methods and a liability safe harbor codified in law under §55.1-903.
Notary Curriculum Developed: The Secretary of the Commonwealth must develop or approve a standardized notary education curriculum focusing on identity verification, real estate fraud prevention, and financial exploitation of older adults.
Mandatory Notary Education and Seal Requirements: New commissions require a 4-hour pre-commission course and exam. Recommissions require a 2-hour course. Notaries must provide proof of commission before obtaining a seal.
Free Property Alert System Mandatory Statewide: Every circuit court clerk with electronic land records must establish a no-cost property alert notification system, allowing owners to enroll and receive instant notifications of any filing affecting their property.
Is Your Virginia Property Protected?Our agents can walk you through what these new laws mean for your specific situation — at no cost. |
Talk to an Agent → |
The Notary Journal Requirement — What Must Be Recorded
Effective July 1, 2026, every Virginia notary must maintain a journal entry for each notarial act containing all of the following:
- ✓Date and exact time of day of the notarial act
- ✓Type of notarial act performed
- ✓Description of the document or proceeding
- ✓Printed name and full address of each principal
- ✓Evidence of identity verification method used for each principal
- ✓Any fee charged for the notarial act
These records must be retained for at least five years. This creates a comprehensive, auditable paper trail that dramatically increases the risk of detection and prosecution for fraudulent deed schemes that rely on forged or unverifiable notarizations.
Settlement Agents: A New Statutory Duty to Verify Seller Identity
The most significant change for active transactions is the new duty imposed on settlement agents under §55.1-903(A). Before settlement on any real property sale, agents must now exercise ordinary care to reasonably verify the identity of the seller. Approved methods include:
|
Accepted Method
Government-Issued Photo IDUnexpired US Passport, foreign passport, state driver’s license, state ID card, or US Military identification card. |
Accepted Method
Multiple Photo ID FormsRequiring two or more forms of photo identification from the seller adds a second layer that is difficult to simultaneously fabricate. |
|
Accepted Method
Attorney CertificationA written statement from the seller’s own attorney confirming they have reasonably ascertained and verified the identity of the seller. |
Accepted Method
Additional Cross-ChecksReviewing land records, comparing signatures, performing a credit check, or asking detailed questions about the specific property and its history. |
The statute also provides a safe harbor under §55.1-903(C): settlement agents who follow an approved method in good faith are protected from liability unless they had actual knowledge the information was false, or acted with gross negligence or willful misconduct.
What Was Proposed But Not Adopted
Several stronger recommendations from the Virginia Deed Fraud Study were not enacted, including felony classifications for deed fraud, enhanced civil remedies for victims, agent-level listing verification requirements, and clerk authority to reject suspected fraudulent instruments. Property owners should not assume the new laws provide complete protection — proactive monitoring remains essential.
Practical Steps for Virginia Property Owners Right Now
- 1Contact your local Circuit Court Clerk and enroll in any available property alert system today — don’t wait for the mandatory 2027 statewide system
- 2Review your land records online via the Virginia Circuit Court Electronic Filing System to confirm title details are current and accurate
- 3If you own vacant land or an out-of-state investment property in Virginia, ask your title insurance provider about deed monitoring services
- 4If selling in 2026 or later, expect your settlement agent to request additional identity documentation — bring multiple forms of photo ID to closing
- 5If you receive unexpected communications regarding your property, consult a Virginia real estate attorney before taking any action
Buying or Selling in Virginia in 2026?Work with agents who understand the new compliance landscape and can protect your transaction from start to finish. |
Get Expert Guidance → |
Frequently Asked Questions
Has Governor Spanberger signed HB 163 and SB 316 into law?
Both bills passed unanimously with bipartisan support and were awaiting the Governor’s signature as of April 2026, with a review deadline of April 13, 2026. Funding was included in both chambers’ adopted budgets. The legislation is widely expected to be enacted with the staggered effective dates intact.
Does this affect my existing deed or mortgage?
No. The new laws apply prospectively to future transactions and notarial acts. Your existing recorded deed is unaffected. However, any sale, refinance, or property transfer in 2026 or beyond will be subject to the new requirements.
What should I do if I suspect someone is trying to fraudulently sell my property?
Contact your local Circuit Court Clerk’s Office immediately to request a review of your land records. File a report with Virginia State Police and consult a real estate attorney without delay. Deed fraud schemes often move quickly once initiated.
Will the free property alert system be available everywhere in Virginia?
The mandatory system applies to circuit court clerks with electronic land records filing systems, effective July 1, 2027. Several Virginia clerks already offer voluntary alert services. Contact your local clerk’s office to find out what is available now.
I’m a Virginia notary — what do I need to do before July 1, 2026?
Begin maintaining a detailed journal for all notarial acts effective July 1, 2026. The new education and seal requirements do not apply until July 1, 2027, giving you additional time to prepare for those changes.
My property is vacant land — am I at higher risk?
Yes. The Virginia Deed Fraud Study explicitly identified unencumbered vacant properties as the primary targets. Without a lender monitoring the title, fraudulent transactions can go undetected for longer. Owners of vacant land should prioritize property alert enrollment and title monitoring services.
- →HB 163 and SB 316 passed unanimously — deed fraud prevention is now a Virginia legislative priority
- →Settlement agents must verify seller identity before closing, effective July 1, 2026
- →All Virginia notaries must maintain detailed journals for every notarial act beginning July 1, 2026
- →Free property alert systems become mandatory statewide by July 1, 2027
- →Vacant land and unencumbered properties remain the highest-risk targets for deed fraud
- →Enroll in local clerk alert systems now — it is your single most effective immediate protection step
Virginia Real Estate
Deed Fraud
Property Law 2026
Title Protection
HB 163 SB 316