Notary Signing Agents Professional Liability Insurance in Virginia

Notary Signing Agents in Virginia at a glance

Commissioning Authority

Secretary of the Commonwealth of Virginia

Handles applications and maintains the registry of all Virginia notaries.

Surety Bond Requirement

None (Standard Notary)

Virginia does not require a bond for traditional notaries, unlike most other states.

Settlement Agent Regulation

CRESPA (Consumer Real Estate Settlement Protection Act)

Governs individuals who provide escrow or settlement services in Virginia.

Journal Practice

Recommended (Traditional) / Required (Electronic)

Signing agents should keep a journal to document identification for every loan package.

Virginia Commissioning and CRESPA Requirements

Virginia notaries are appointed by the Governor and commissioned by the Secretary of the Commonwealth for a four-year term. For signing agents, simply holding a notary commission may not be enough if they are performing 'settlement services.' Under Virginia's CRESPA regulations, individuals who handle funds or provide certain escrow services must be registered and may need to meet additional bonding and insurance requirements beyond those of a standard notary.

This regulatory environment makes Virginia unique; signing agents must be careful not to engage in the unauthorized practice of law or perform settlement duties they are not registered for. Most active Virginia signing agents focus strictly on the notarial act and document presentation to stay within the bounds of their commission while maintaining high levels of professional liability coverage to satisfy lender demands.

E&O Insurance versus Bonding in Virginia

Unlike many other states, Virginia does not mandate a surety bond for its traditional notaries. This lack of a state-required bond makes Errors and Omissions (E&O) insurance even more vital for a Virginia signing agent. Without a bond or E&O policy, a notary is personally liable for any damages resulting from a signing error, such as a missed initial on a Right to Cancel form that causes a loan to be rescinded.

Title companies and signing services operating in Virginia typically set their own insurance standards, often requiring lender-specified limits in E&O coverage. This insurance protects the signing agent's personal finances by paying for legal defense and settlements, providing a safety net that the state government does not provide through mandatory bonding.

Journal Practices and Electronic Notarization

Virginia law does not require a traditional notary to keep a journal for paper-based signings, but it is strongly recommended by the Secretary of the Commonwealth. For signing agents, a journal is an indispensable tool for documenting that all signers were properly identified and that the signing took place according to state law. In the event of a dispute, the journal is the notary's first line of defense.

If a Virginia signing agent is also commissioned as an electronic notary (eNotary), the requirements change significantly. Electronic notaries in Virginia are required to maintain a secure electronic journal of all electronic notarial acts. As Remote Online Notarization (RON) becomes more common in Virginia closings, signing agents must ensure their digital recordkeeping meets these strict statutory standards.

Notary Signing Agents FAQs for Virginia