2026 Virginia Escheat Guide
In Virginia, as of July 2016, Settlement Agents are required to file Annual Escheat reports with the Department of Treasury for those funds for which the owner is unlocatable. For example, the closing took place in June 2025, and you have mailed the $121.00 refund check twice to the customer, Mr. Coole, and it is still not cleared. And now you cannot find the consumer. The phone calls go unanswered, the emails get no reply, the check has come back twice. Your file is duly documented of the follow-up performed, now what? Mr. Coole is unlocatable and now it is time to file an escheat report for those funds.
What is Due Diligence?
§ 55.1-2500. Definitions
"Due diligence" includes the mailing of a letter by first-class mail to the last known address of the owner as indicated on the records of the holder.
Mail Due Diligence Letters no later than March 1st if reported by May 1st. (60-day notice required)
Minimum information needed for payees to file report: name, social security, or federal identification number, if known, and last known address, including zip code.
Question: May settlement agents remit funds for “Unknown” payees, in the event records have been lost or destroyed?
Answer: Yes, you are only required to report the information you have. If you do not have the owner's name you may use 'Unknown'. If you do not have the address information you may leave that blank.
Practical Escrow Matters
- Create ledger labeled “Escheat 2026” and move all funds under $100 which are over a year-old for unlocatable payees.
- Send "Due Diligence" letters to all payees with funds due over $100, which are over a year-old from the outstanding checks list and file balances. Does not need to be certified.
- While the Virginia Treasury will accept escheat report year-round, the filing date for title insurance companies is May 1st.
Helpful links and numbers
- Instructions for Reporting-Process
- If you have any questions, call 1-800-468-1088, or send an email to Report.Remit@trs.virginia.gov
- Virginia Escheat Requirement located in StarsLink.
14VAC5-395-50. Audits.
D. Every settlement agent shall make a good faith effort to disburse funds in its possession and return the funds to the rightful owner, and escheat annually to the Virginia Department of the Treasury those funds for which the owner is unlocatable.
Disburse all escrow funds to include outstanding checks and file balances.
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