Posted by RickinVA on 5/19/06 11:18am
Msg #121033

CRESPA in VA

Called my lawyer to ask him if I would be in violation of anything if I was O/Nd a check and a receipt and delivered it to a person who owned a house that I closed for someone who had been buying on a land contract from this person. The 'buyer' was able to get a conventional loan, and this will be the proceeds to the previous owner. While I was talking to him, we got into CRESPA a little and he said I would NOT be in violation of the CRESPA rules if I was to pick up a CHECK or M/O for any amount from a borrower, as long as I was not the payee. I could not pick up CASH, though. The act means I couldn't have any "constructive receipt", such as an escrow account. Any imput on this from a CRESPA Notary? Should I find a new attorney?
Hope this question is clear.

Rick

Reply by ReneeK_MI on 5/20/06 4:19am
Msg #121225

Definitely not an attorney, Rick - but you didn't get much response, so thought I'd give this my own two cents.

I don't see how you would be acting as anything but a courier in this situation. It's not any different than including a borrower's check to the Settlement Agent in a pkg. back. You're not cutting the check, you're not disbursing, the funds aren't going to you, you're merely acting as a delivery service.

Odd that they'd transact things this way, instead of wiring - perhaps the proceeds aren't all that sizable? No big deal, really - just seems that wiring is the more often used means of transacting.

What's a "CRESPA Notary"?

Reply by RickinVA on 5/20/06 4:47am
Msg #121226

Thanks for the confirmation. I suspect it is similar to the several different laws in places like MD
and IN. In VA, it's the Consumer Real Estate Settlement Protection Act.
http://www.vsb.org/crespa/index.html

Rick