Virginia

Virginia at a Glance

1. Mechanics' Lien Rules

Plain English

A Virginia mechanic's lien starts with a memorandum of lien recorded in the circuit court clerk's office. Timing is strict: the memorandum must be recorded within 90 days from the last day of the month in which the claimant last worked, and in any event no later than 90 days after the project is completed. The memorandum can't include work done more than 150 days before the last day of work (except retainage). Then the claimant must sue within 6 months of recording, or 60 days after completion, whichever is later. For new one- and two-family homes, the building permit may name a mechanics' lien agent; claimants who don't notify that agent within 30 days of first work lose lien rights on work before notice. Against an earlier deed of trust, the lienor is preferred only for the value of the improvement, not the land. Virginia also makes most advance lien waivers void.

Key Rules

Lien right (Va. Code § 43-3). Persons performing labor or furnishing materials of $150 or more for construction, removal, repair, or improvement have a lien. A contract term that waives or diminishes a general contractor's, subcontractor's, lower-tier subcontractor's or supplier's lien rights before any labor, services or materials are furnished is null and void (§ 43-3(C)). Waivers given after work is furnished are allowed, and a general contractor may agree in a signed writing to subordinate to prior and later recorded deeds of trust (§ 43-21).

General contractor perfection (§ 43-4). Record a memorandum of lien in the clerk's office where the land lies, at any time after work starts but not later than 90 days from the last day of the month of last work, and in no event later than 90 days from completion or termination. The memorandum can't include sums for work more than 150 days before the last day of work (retainage up to 10% excepted). A general contractor must also file a certification of mailing of the memorandum to the owner.

Subcontractors and suppliers (§§ 43-7, 43-9). Same memorandum deadlines under § 43-4, plus written notice of the amount and character of the claim to the owner (and, for those working for a subcontractor, to the general contractor). A subcontractor's lien can't exceed what the owner owes the general contractor.

Lien agent (§ 43-4.01). For one- and two-family residential dwellings, the building permit may name a mechanics' lien agent. A claimant must give the agent notice (registered or certified mail or physical delivery) within 30 days after first furnishing, or within 30 days after the permit issues if work began before it; otherwise the lien is limited to work after the notice. The rule does not apply if the permit names no agent, to memoranda recorded before the permit issues, or to site-improvement liens under § 43-3(B).

Suit (§ 43-17). Within 6 months after recording the memorandum, or 60 days after completion of the structure, whichever is later.

Priority (§ 43-21). A recorded deed of trust or other encumbrance existing before work begins is preferred to the value of the land (lienor preferred as to the improvement). For repairs or improvements to an existing structure, prior recorded liens have priority. The general contractor can subordinate its lien in writing.

Release (§§ 43-70, 43-71). The owner may release the lien by paying into court or posting a bond of double the amount of the lien, either after suit (§ 43-70) or before suit (§ 43-71).

Practice Points

1. Count the months. Work in the last 90 days, or a project not yet complete, means a lien can still be recorded. Get affidavits, lien waivers, and payoffs.
2. Lien agent? On a new one- or two-family home, check the building permit for a lien agent and ask whether any notices were received.
3. Expired memoranda: check § 43-17 timing and the court docket before treating a memorandum as unenforceable.
4. Repairs vs. new construction: prior recorded deeds of trust have priority for repair work under § 43-21. New construction is split by land vs. improvement value.

Citations

• Va. Code § 43-3 (lien; advance waivers void): https://law.lis.virginia.gov/vacode/43-3/
• Va. Code § 43-4 (memorandum of lien; deadlines): https://law.lis.virginia.gov/vacode/43-4/
• Va. Code § 43-4.01 (lien agent; permit posting): https://law.lis.virginia.gov/vacode/43-4.01/
• Va. Code § 43-17 (suit deadline): https://law.lis.virginia.gov/vacode/43-17/
• Va. Code § 43-21 (priority): https://law.lis.virginia.gov/vacode/43-21/
• Va. Code § 43-70 (release on bond after suit): https://law.lis.virginia.gov/vacode/43-70/
• Va. Code § 43-71 (release on bond before suit): https://law.lis.virginia.gov/vacode/43-71/

2. Execution and Notarization Requirements for Recording

Plain English

Virginia deeds and deeds of trust are acknowledged before a notary and recorded in the circuit court clerk's office where the land lies. Virginia's recording act protects purchasers for value without notice: an unrecorded deed is void as to them until it is recorded. Virginia allows remote online notarization by an electronic notary when the signer is not physically present (§ 47.1-2), under standards set by the Secretary of the Commonwealth (§ 47.1-6.1). Recording costs include state recordation taxes on deeds and deeds of trust, a local recordation tax of one-third of the state tax, and a grantor tax on sales. The filed case Harwood is a warning: a deed of trust signed under a forged power of attorney is void, even with a real-looking notarization.

Key Rules

• Recording act (Va. Code § 55.1-407). Every contract in writing, deed, or deed of trust conveying real estate is void as to purchasers for valuable consideration without notice, and lien creditors, until recorded. A quitclaim form doesn't stop the grantee from being a purchaser without notice, and mere possession isn't notice.
• Electronic and remote notarization (§§ 47.1-2, 47.1-6.1). Remote online notarization is an electronic notarization where the signer is not physically present; the Secretary of the Commonwealth sets the standards.
• State recordation tax on deeds (§ 58.1-801). $0.25 per $100 of consideration or value.
• Grantor tax (§ 58.1-802). $0.50 per $500 of value, paid by the grantor unless the parties arrange otherwise. In Northern Virginia Transportation Authority localities, the state also imposes a regional WMATA capital fee of $0.10 per $100, paid by the grantor (§ 58.1-802.3); the older congestion relief fee was repealed.
• Deeds of trust (§ 58.1-803). $0.25 per $100 of the amount secured; for credit line deeds of trust, the maximum amount. Above $10 million the rate steps down by tier (§ 58.1-803(F)).
• Local tax (§§ 58.1-814, 58.1-3800). Cities and counties may impose a tax equal to one-third of the state recordation tax.

Filed case notes

• Robert K. Harwood, L.C. v. Chinchilla (Va. Ct. App. 2025): loan and deed of trust signed under an altered, forged power of attorney were void ab initio, even though the POA and notarization looked genuine.

Practice Points

2. Calculate taxes correctly: state and local recordation taxes, grantor tax, and any regional fees. Use the clerk's current fee schedule.
3. Remote notarizations: confirm the notary holds a Virginia electronic notary commission.

Citations

• Va. Code § 55.1-407 (recording act): https://law.lis.virginia.gov/vacode/55.1-407/
• Va. Code § 47.1-2 (definitions; remote online notarization): https://law.lis.virginia.gov/vacode/47.1-2/
• Va. Code § 47.1-6.1 (electronic notarization): https://law.lis.virginia.gov/vacode/47.1-6.1/
• Va. Code § 58.1-802.3 (regional WMATA capital fee): https://law.lis.virginia.gov/vacode/58.1-802.3/
• Va. Code § 58.1-801 (recordation tax on deeds): https://law.lis.virginia.gov/vacode/58.1-801/
• Va. Code § 58.1-802 (grantor tax): https://law.lis.virginia.gov/vacode/58.1-802/
• Va. Code § 58.1-803 (deed of trust tax): https://law.lis.virginia.gov/vacode/58.1-803/
• Va. Code § 58.1-814 (local recordation tax): https://law.lis.virginia.gov/vacode/58.1-814/

3. Securing Future Advances

Plain English

Virginia's tool is the credit line deed of trust. To qualify, the deed of trust must say on its front page, in capital letters or underlined, "THIS IS A CREDIT LINE DEED OF TRUST," state the maximum principal that may be secured at any one time, and give the beneficiary's name and an address for notices. Advances then have priority from recording, over instruments unrecorded at that time (of which the beneficiary had no notice) and over later judgments. There is one catch, and it applies only to judgment creditors: once a judgment creditor gives written notice to the beneficiary at the address in the deed of trust, advances made from the next day on lose priority to that judgment, except advances unconditionally and irrevocably committed before then. A later deed of trust does not cut off priority this way, though the borrower may require a modification giving up priority for discretionary future advances over later deeds of trust. Recordation tax is paid on the maximum amount secured, not the amount drawn.

Key Rules

• Definition and legend (Va. Code § 55.1-318). A credit line deed of trust must bear on its front page, in capital letters or underscored, the words "THIS IS A CREDIT LINE DEED OF TRUST," state the maximum aggregate principal that may be secured at any one time, and give the beneficiary's name (or agent's) and notice address (§ 55.1-318(B), (E)).
• Priority (§§ 55.1-318(C)-(D), 55.1-407(B)). Advances have priority from recording over later-recorded instruments and later-docketed judgments. Only a judgment creditor's written notice to the beneficiary cuts off priority, for advances from the day after receipt (except those unconditionally and irrevocably committed before then).
• Borrower's modification (§ 55.1-318(F)). The grantor may require a modification surrendering priority over later deeds of trust for discretionary advances.
• Tax base (§ 58.1-803(A)(1)). Recordation tax is computed on the maximum amount that may be outstanding.

Practice Points

1. Check the first page. Without the legend and maximum amount, the deed of trust doesn't get § 55.1-318 treatment.
2. HELOC payoffs: get a written request to freeze and close the line with the payoff, and record the certificate of satisfaction.
3. Junior lenders: a later deed of trust does not cut off credit line priority by notice; get a payoff and a freeze or a § 55.1-318(F) modification. Only a judgment creditor's notice cuts off later advances.
4. Old credit line deeds of trust don't prove a balance is owed (see Refund Recovery Specialist v. City of Norfolk in the cases).

Citations

• Va. Code § 55.1-318 (credit line deeds of trust): https://law.lis.virginia.gov/vacode/55.1-318/
• Va. Code § 58.1-803 (tax on maximum amount): https://law.lis.virginia.gov/vacode/58.1-803/
• Va. Code § 55.1-407 (recording act; credit line priority): https://law.lis.virginia.gov/vacode/55.1-407/

4. Subdivision Statutes and Regulations

Plain English

Virginia localities must adopt subdivision ordinances. Once a locality has one, no one may subdivide land without recording an approved plat, and the clerk may not record a subdivision plat until it is approved. No one may sell or transfer a subdivided lot before the plat is approved and recorded. However, a deed that violates that rule is still recordable, and title still passes between the parties. The penalty is a fine of up to $500 per lot, and the seller must still comply. Describing the lot by metes and bounds doesn't avoid the rule. For title, this means an unapproved split is a marketability and permitting problem, not a void deed.

Key Rules

• After adoption of an ordinance (Va. Code § 15.2-2254):
  • No subdivision without making and recording a plat and complying with the ordinance.
  • No plat recorded until approved by the locality's designated agent.
  • No sale or transfer of subdivision land before the plat is approved and recorded (unless lawfully created before the ordinance). Recordation of the deed and passage of title between the parties are not prevented.
  • Fine of up to $500 per lot sold or transferred, plus compliance. A metes-and-bounds description doesn't exempt the transfer.
  • Clerks may not record unapproved subdivision plats.
• Local definitions. What counts as a "subdivision," and family-division exceptions, vary by locality.

Practice Points

1. New lot split? Confirm the plat was approved and recorded, or that the parcel predates the ordinance.
2. Unapproved split: title passes between the parties, but the seller faces fines and must comply with the ordinance.
3. Family subdivisions often carry holding-period restrictions. Check the plat notes and ordinance.

Citations

• Va. Code § 15.2-2254 (effect of subdivision ordinance): https://law.lis.virginia.gov/vacode/15.2-2254/

5. Title Premium Rates

Plain English

Virginia does not require title insurance rates to be filed: the general rate-filing chapter excludes title insurance, and only policy and binder forms must be filed with the State Corporation Commission. Each company sets its own rates. By statute, title insurance risk rates must be reasonable and adequate and not unfairly discriminatory. The "risk rate" covers the insurance risk only; search, examination, and closing charges are separate. A title insurer or agent may charge negotiated risk rates. Kickbacks and rebates are prohibited. Virginia also regulates settlement closely: settlement agents must be registered under the Real Estate Settlement Agents Act (RESAA), buyers can choose their settlement agent, and under the Wet Settlement Act the settlement agent must record and disburse within 2 business days of settlement.

Key Rules

• Rates (Va. Code § 38.2-4608). Rates must be reasonable and adequate and not unfairly discriminatory. The risk rate does not include charges for search, examination, closing, or other services (§ 38.2-4608(C)). Negotiated risk rates are presumed not unfairly discriminatory if they meet subsection A (§ 38.2-4608(E)).
• No rate filing (§ 38.2-1902(B)(7)). The rate-filing chapter does not apply to title insurance; forms are filed (§ 38.2-4606).
• Kickbacks (§ 38.2-4614). Prohibits payment or receipt of kickbacks, rebates, or inducements for title insurance business.
• RESAA (§ 55.1-1000 et seq.). Settlement agents must register and follow escrow rules. Escrow funds are held in a fiduciary capacity and deposited in a separate trust account no later than the close of the second business day (§ 55.1-1008).
• Choice of settlement agent (§ 55.1-1006). The purchaser or borrower has the right to select the settlement agent, and the seller may not require a particular one as a condition of sale.
• Wet Settlement Act (§ 55.1-903). The settlement agent must record the deed and deed of trust and disburse settlement proceeds within 2 business days of settlement, and may not disburse loan funds before recording except as the statute allows.

Practice Points

2. No inducements to realtors, lenders, or builders.
3. Wet settlement timing: record and disburse within 2 business days. Late recording is a frequent gap-coverage issue.
4. Settlement agent registration: confirm before using an outside agent.

Citations

• Va. Code § 38.2-4608 (title insurance rates): https://law.lis.virginia.gov/vacode/38.2-4608/
• Va. Code § 38.2-4614 (kickbacks and rebates): https://law.lis.virginia.gov/vacode/38.2-4614/
• Va. Code § 55.1-1006 (choice of settlement agent): https://law.lis.virginia.gov/vacode/55.1-1006/
• Va. Code § 55.1-1008 (settlement agent escrow conditions): https://law.lis.virginia.gov/vacode/55.1-1008/
• Va. Code § 55.1-903 (duty of settlement agent; wet settlement): https://law.lis.virginia.gov/vacode/55.1-903/
• Va. Code § 38.2-1902 (rate chapter scope; title excluded): https://law.lis.virginia.gov/vacode/38.2-1902/
• Va. Code § 38.2-4606 (forms filed): https://law.lis.virginia.gov/vacode/38.2-4606/

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Virginia calls its taxes recordation taxes. On a deed, there is a state recordation tax of 25 cents per $100 (often called the grantee tax; the statute doesn't say who pays, so the contract allocates it) plus a local tax equal to one-third of it where the locality imposes one, and the seller pays a separate grantor tax of 50 cents per $500 unless the parties arrange otherwise. In Northern Virginia the seller also pays a regional WMATA fee. A deed of trust pays 25 cents per $100 of the loan plus the local one-third. A refinance pays a lower rate of 18 cents per $100.

Key Rules

(a) Deed transfer, conveyance or excise tax

• Grantee tax. $0.25 per $100 or fraction of the consideration or the assessed value, whichever is greater (§ 58.1-801(A)).
• Local recordation tax. Cities and counties may impose a tax equal to one-third of the state tax (§ 58.1-3800).
• Grantor tax. $0.50 per $500 or fraction, excluding liens that remain on the property (§ 58.1-802(A)). The grantor pays, unless the parties arrange for the grantee to pay some or all.
• Regional WMATA capital fee. $0.10 per $100 in localities of the Northern Virginia Transportation Authority, paid by the grantor unless the parties agree otherwise (§ 58.1-802.3). The older congestion relief fee (§ 58.1-802.2) was repealed in 2018.
• No mansion tax or controlling-interest transfer tax found.

(b) Mortgage, indebtedness or intangible tax

• Rate. $0.25 per $100 on the amount secured, stepping down above $10 million: $0.22, $0.19, $0.16, then $0.13 per $100 on each later $10 million tier (§ 58.1-803(A), (F)).
• Credit lines. For an open, credit-line or revolving deed of trust, the amount is the maximum that may be outstanding at any one time (§ 58.1-803(A)(1)).
• Cap at value. If the amount secured cannot be determined or exceeds the property's fair market value, tax is on the fair market value (§ 58.1-803(A)(2)).
• Supplements and modifications. Tax only on the increase over the original debt on which tax was paid; the instrument must certify the original amount (§ 58.1-803(D)).
• Refinances. A deed of trust refinancing existing debt secured by a taxed deed of trust pays a reduced schedule: $0.18 per $100 on the first $10 million, then $0.16, $0.14, $0.12, and $0.10 above $40 million. The instrument must certify the book and page or instrument number of the prior deed of trust (§ 58.1-803(E)). Older Tax Commissioner rulings limited refinance relief to the same lender; the current text of subsection E does not mention the lender.
• Multistate collateral is apportioned by the value of the Virginia property (§ 58.1-803(B)).
• Local tax equal to one-third of the state tax also applies where the locality imposes it (§ 58.1-3800).

(c) Other recording taxes and fees

• Clerk's recording fees (§ 17.1-275(A)(2)). $18 for 10 or fewer pages, $32 for 11 to 30 pages, $52 for 31 or more; large plat sheets $17 each. Other add-on fees may apply.

Practice Points

1. Worked example (Fairfax County, $400,000 purchase, $320,000 loan): state grantee tax $1,000 plus local $333.33; deed of trust state tax $800 plus local $266.67; grantor tax $400 and WMATA fee $400 (seller).
2. Refinances: certify the prior instrument to get the $0.18 rate.
3. Credit lines: tax the maximum, not the first draw.

Citations

• Va. Code § 58.1-801: https://law.lis.virginia.gov/vacode/title58.1/chapter8/section58.1-801/
• Va. Code § 58.1-802: https://law.lis.virginia.gov/vacode/title58.1/chapter8/section58.1-802/
• Va. Code § 58.1-802.3 (WMATA fee): https://law.lis.virginia.gov/vacode/title58.1/chapter8/section58.1-802.3/
• Va. Code § 58.1-803 (deeds of trust): https://law.lis.virginia.gov/vacode/title58.1/section58.1-803/
• Va. Code § 58.1-3800 (local recordation tax): https://law.lis.virginia.gov/vacode/58.1-3800/
• Va. Code § 17.1-275 (clerk's fees): https://law.lis.virginia.gov/vacode/17.1-275/