{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/55.1-805.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/55.1-805.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/55.1-805.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/55.1-805.html"}],"law_id":370035,"edition_id":2,"section_id":370035,"structure_id":52700,"section_number":"55.1-805","catch_line":"Prohibited acts","history":"2010, c. 409, \u00a7 55-525.6; 2019, c. 712.","full_text":"A\n\nA person who engages in the business of an exchange facilitator is prohibited from:\n\n1\n\nMaking any material misrepresentations concerning any exchange facilitator transaction that are intended to mislead another;\n\n2\n\nPursuing a continued course of misrepresentation or making false statements through advertising or otherwise;\n\n3\n\nFailing, within a reasonable time, to account for any moneys or property belonging to others that may be in the possession or under the control of the exchange facilitator;\n\n4\n\nEngaging in any conduct constituting fraudulent or dishonest dealings;\n\n5\n\nCommitting any crime involving fraud, misrepresentation, deceit, embezzlement, misappropriation of funds, robbery, or other theft of property;\n\n6\n\nMaterially failing to fulfill its contractual duties to the exchange client to deliver property or funds to the exchange client unless such failure is due to circumstances beyond the control of the exchange facilitator; or\n\n7\n\nMaterially violating any of the provisions of this chapter.\n\nB\n\nA person who is an owner, officer, director, or employee of an exchange facilitator is prohibited from committing any crime involving fraud, misrepresentation, deceit, embezzlement, misappropriation of funds, robbery, or other theft of property; however, the commission of such crime by an officer, director, or employee of an exchange facilitator shall not be considered a violation of this chapter if the employment or appointment of such officer, director, or employee has been terminated and no clients of the exchange facilitator were harmed or full restitution has been made to all harmed clients within a reasonable period of time.\n\n","order_by":null,"text":{"0":{"id":1380463,"text":"A person who engages in the business of an exchange facilitator is prohibited from:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":1380464,"text":"Making any material misrepresentations concerning any exchange facilitator transaction that are intended to mislead another;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":1380465,"text":"Pursuing a continued course of misrepresentation or making false statements through advertising or otherwise;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":1380466,"text":"Failing, within a reasonable time, to account for any moneys or property belonging to others that may be in the possession or under the control of the exchange facilitator;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":1380467,"text":"Engaging in any conduct constituting fraudulent or dishonest dealings;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":1380468,"text":"Committing any crime involving fraud, misrepresentation, deceit, embezzlement, misappropriation of funds, robbery, or other theft of property;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":1380469,"text":"Materially failing to fulfill its contractual duties to the exchange client to deliver property or funds to the exchange client unless such failure is due to circumstances beyond the control of the exchange facilitator; or","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":1380470,"text":"Materially violating any of the provisions of this chapter.","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"B"},"8":{"id":1380471,"text":"A person who is an owner, officer, director, or employee of an exchange facilitator is prohibited from committing any crime involving fraud, misrepresentation, deceit, embezzlement, misappropriation of funds, robbery, or other theft of property; however, the commission of such crime by an officer, director, or employee of an exchange facilitator shall not be considered a violation of this chapter if the employment or appointment of such officer, director, or employee has been terminated and no clients of the exchange facilitator were harmed or full restitution has been made to all harmed clients within a reasonable period of time.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A7"}},"ancestry":[{"id":52700,"edition_id":2,"name":"Exchange Facilitators Act","identifier":"8","label":"chapter","depth":3,"order_by":3,"parent_id":52604,"metadata":{"child_laws":7,"child_structures":0},"date_created":"2026-08-02 03:03:23","date_modified":"2026-08-02 12:35:24","permalink":{"id":1472821,"object_type":"structure","relational_id":52700,"identifier":"8","token":"55.1\/II\/8","url":"\/55.1\/II\/8\/","edition_id":2,"permalink":0,"preferred":1}},{"id":52604,"edition_id":2,"name":"Real Estate Settlements and Recordation","identifier":"II","label":"subtitle","depth":2,"order_by":2,"parent_id":52600,"metadata":{"child_laws":121,"child_structures":14},"date_created":"2026-08-02 03:01:36","date_modified":"2026-08-02 12:35:22","permalink":{"id":1472371,"object_type":"structure","relational_id":52604,"identifier":"II","token":"55.1\/II","url":"\/55.1\/II\/","edition_id":2,"permalink":0,"preferred":1}},{"id":52600,"edition_id":2,"name":"Property and Conveyances","identifier":"55.1","label":"title","depth":1,"order_by":120,"parent_id":null,"metadata":{"child_laws":875,"child_structures":101},"date_created":"2026-08-02 03:01:36","date_modified":"2026-08-02 12:35:20","permalink":{"id":1471771,"object_type":"structure","relational_id":52600,"identifier":"55.1","token":"55.1","url":"\/55.1\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":370030,"structure_id":52700,"section_number":"55.1-800","catch_line":"Definitions","url":"\/55.1-800\/","token":"55.1\/II\/8\/55.1-800","metadata":false},{"id":370031,"structure_id":52700,"section_number":"55.1-801","catch_line":"Change in control","url":"\/55.1-801\/","token":"55.1\/II\/8\/55.1-801","metadata":false},{"id":370032,"structure_id":52700,"section_number":"55.1-802","catch_line":"Separately identified accounts, or qualified escrows or qualified trusts","url":"\/55.1-802\/","token":"55.1\/II\/8\/55.1-802","metadata":false},{"id":370033,"structure_id":52700,"section_number":"55.1-803","catch_line":"Errors and omissions insurance; cash or letters of credit","url":"\/55.1-803\/","token":"55.1\/II\/8\/55.1-803","metadata":false},{"id":370034,"structure_id":52700,"section_number":"55.1-804","catch_line":"Accounting for moneys and property","url":"\/55.1-804\/","token":"55.1\/II\/8\/55.1-804","metadata":false},{"id":370035,"structure_id":52700,"section_number":"55.1-805","catch_line":"Prohibited acts","url":"\/55.1-805\/","token":"55.1\/II\/8\/55.1-805","metadata":false},{"id":370036,"structure_id":52700,"section_number":"55.1-806","catch_line":"Penalty; attorney fees","url":"\/55.1-806\/","token":"55.1\/II\/8\/55.1-806","metadata":false}],"previous_section":{"id":370034,"structure_id":52700,"section_number":"55.1-804","catch_line":"Accounting for moneys and property","url":"\/55.1-804\/","token":"55.1\/II\/8\/55.1-804","metadata":false},"next_section":{"id":370036,"structure_id":52700,"section_number":"55.1-806","catch_line":"Penalty; attorney fees","url":"\/55.1-806\/","token":"55.1\/II\/8\/55.1-806","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-805\/","history_text":"

This law was first created in 2010. The record of its establishment is cataloged in chapter 409<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2019, chapter 712<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1472843,"object_type":"law","relational_id":370035,"identifier":"55.1-805","token":"55.1\/II\/8\/55.1-805","url":"\/55.1-805\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/55.1-805\/","token":"55.1\/II\/8\/55.1-805","dublin_core":{"Title":"Prohibited acts","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-805","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A person<\/span> who engages in the business of an exchange facilitator<\/span> is prohibited from: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Making any material<\/span> misrepresentations concerning any exchange facilitator<\/span> transaction that are intended to mislead another; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Pursuing a continued course of misrepresentation or making false statements through advertising or otherwise; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Failing, within a reasonable time, to account for any moneys or property belonging to others that may be in the possession<\/span> or under the control of the exchange facilitator<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Engaging in any conduct constituting fraudulent or dishonest dealings; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Committing any crime<\/span> involving fraud<\/span>, misrepresentation, deceit, embezzlement<\/span>, misappropriation of funds, robbery<\/span>, or other theft of property; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Materially failing to fulfill its contractual duties to the exchange client<\/span> to deliver property or funds to the exchange client<\/span> unless such failure is due to circumstances beyond the control of the exchange facilitator<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Materially violating any of the provisions of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A person<\/span> who is an owner, officer, director, or employee of an exchange facilitator<\/span> is prohibited from committing any crime<\/span> involving fraud<\/span>, misrepresentation, deceit, embezzlement<\/span>, misappropriation of funds, robbery<\/span>, or other theft of property; however, the commission of such crime<\/span> by an officer, director, or employee of an exchange facilitator<\/span> shall not be considered a violation of this chapter if the employment or appointment of such officer, director, or employee has been terminated and no clients of the exchange facilitator<\/span> were harmed or full restitution<\/span> has been made to all harmed clients within a reasonable period of time. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROHIBITED ACTS (\u00a7 55.1-805)\n\nA. A person who engages in the business of an exchange facilitator is prohibited\nfrom:\n\n 1. Making any material misrepresentations concerning any exchange facilitator\n transaction that are intended to mislead another;\n\n 2. Pursuing a continued course of misrepresentation or making false statements\n through advertising or otherwise;\n\n 3. Failing, within a reasonable time, to account for any moneys or property\n belonging to others that may be in the possession or under the control of the\n exchange facilitator;\n\n 4. Engaging in any conduct constituting fraudulent or dishonest dealings;\n\n 5. Committing any crime involving fraud, misrepresentation, deceit,\n embezzlement, misappropriation of funds, robbery, or other theft of property;\n\n 6. Materially failing to fulfill its contractual duties to the exchange client\n to deliver property or funds to the exchange client unless such failure is due\n to circumstances beyond the control of the exchange facilitator; or\n\n 7. Materially violating any of the provisions of this chapter.\n\nB. A person who is an owner, officer, director, or employee of an exchange\nfacilitator is prohibited from committing any crime involving fraud,\nmisrepresentation, deceit, embezzlement, misappropriation of funds, robbery, or\nother theft of property; however, the commission of such crime by an officer,\ndirector, or employee of an exchange facilitator shall not be considered a\nviolation of this chapter if the employment or appointment of such officer,\ndirector, or employee has been terminated and no clients of the exchange\nfacilitator were harmed or full restitution has been made to all harmed clients\nwithin a reasonable period of time.\n\nHISTORY: 2010, c. 409, \u00a7 55-525.6; 2019, c. 712.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}