Escrow & Title
A Virginia settlement agent who disburses funds at closing before all conditions are met is:
AFollowing normal closing procedure
BEngaged in a serious breach of duty that may violate RESPA and state law✓ Correct
CProtected by title insurance
DOnly liable if the transaction fails
Explanation
A settlement agent must ensure all conditions are met before disbursing funds. Premature disbursement violates fiduciary duties, may violate RESPA, and can expose the agent to personal liability.
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