Court House Recording Costs to Increase $10 on July 1st in Virginia

A $10 increase in court house recordation costs for any type of deed, deed of trust, and certificates of satisfaction (those important documents that release liens of deeds of trust) flew under the radar during this year's Virginia General Assembly session. Although it was part of the original Budget Bill introduced, the increase must have seemed de minimus enough not to warrant discussion compared to other elements of the budget debate in Richmond. Until it was signed in to law in mid- May as part of the large biennial budget, it went largely unnoticed by those who will be most affected by it.

The increase will take effect July 1st for instruments recorded that day forward. Under the new RESPA Rules that went into effect this year, mortgage lenders are already permitted only a small margin of error in estimating closing costs for residential borrowers. For loans originated before July 1st, but recording after, this provides another red herring.

Settlement agents closing for first time homebuyers who close before the June 30th deadline for the tax credit (see post on this blog dated April 1, 2010) but who don't get to the court house to record by the end of June may be dinged for this additional $10 on July 1st.