Licensing

18 VAC 135-20-45. Additional qualifications for salesperson's or broker's license as a business entity. An applicant for a salesperson's license as a business entity shall meet the following requirements in addition to those set forth in 18 VAC 135-20-30:​​​​​​​

1. Every owner or officer who actively participates in the real estate business shall hold a license as a salesperson or broker. The business entity license does not replace the individual license. More than one licensee may be a participant of the business entity. 2. When one licensee is the owner or officer, the business entity shall be named in accordance with § 54.1-2106.1.C of the Code of Virginia.

18 VAC 135-20-170. Maintenance of licenses.

1. Salespersons and individual brokers shall at all times keep the board informed of their current name and home address. Changes of name and address must be reported to the board in writing within 30 calendar days of such change. The board shall not be responsible for the licensee's failure to receive notices, communications and correspondence caused by the licensee's failure to promptly notify the board of any change of address. A licensee may use a professional name other than a legal name if that professional name is filed with the board prior to its use. The professional name shall include the licensee's first or last name and shall not include any titles. 2. Salespersons and brokers shall be issued a license only to the place of business of the sole proprietorship or firm with which the salesperson or broker is active. 3. Principal brokers must at all times keep the board informed of their current firm and branch office name and addresses and changes of name and address must be reported to the board in writing within 30 calendar days of such change. A physical address is required. A post office box will not be accepted.

18 VAC 135-20-30. Qualifications for licensure.Every applicant to the Real Estate Board for an individual salesperson's or broker's license shall have the following qualifications:

1. The applicant shall have a good reputation for honesty, truthfulness, and fair dealing, and be competent to transact the business of a real estate broker or a real estate salesperson in such a manner as to safeguard the interests of the public. 2. The applicant shall meet the current educational requirements by achieving a passing grade in all required courses of §54.1-2105 of the Code of Virginia prior to the time the applicant sits for the licensing examination and applies for licensure.

Basic Licensing Terms

Unless a different meaning is provided or is plainly required by the context, the following words and terms when used in this section shall have the following meanings, according to the Real Estate Board Regulations and Statues: Basic Licensing Terms 1. Active Status: Describes any broker or salesperson that is legally engaging in regulated acts of real estate brokerage (some requirements, such as continuing education, differ for active and inactive licenses). 2. Actively Engaged: One with an active license, engaged at least 40 hours per week in regulated real estate activity. This applies to the broker experience requirement (salesperson for 36 of 48 months) and to licensees seeking reciprocity. 3. Applicant: One who applies to the Board for a real estate license. 4. Associate Broker: A licensed broker other than the person designated as principal broker at a firm. 5. Board: The Virginia Real Estate Board, or VREB. 6. Brokerage Agreement: Written agreement establishing the brokerage relationship between a client and a licensee, which must state whether the licensee will represent the client as an agent (standard or limited service) or as an independent contractor. 7. Brokerage Relationship: The contractual relationship between a client and a licensee. 8. Client: Person who has entered into a brokerage relationship with a licensee. 9. Firm: Partnership, association, corporation, limited liability company, or sole proprietorship (principal broker owner) engaged in the sale of real estate on behalf of others for profit. Firms must be licensed (unless the firm is a sole proprietor-principal broker owner). 10. Inactive Status: Describes a broker or salesperson who is not under the supervision of a principal or supervising broker, not active with a firm, and prohibited from performing any acts of brokerage (compare this to active status, above). 11. Independent Contractor: Licensee who enters into a brokerage agreement with a client, which specifically states that the licensee is acting as an independent contractor and not as an agent. An independent contractor has the obligations agreed upon by the parties in the brokerage agreement, as well as some of the duties (but not all) that a standard agent has towards a client. 12. Licensee: One who is licensed (salesperson, broker, or firm) by the Board 13. Limited Services Agent: Licensee who acts for a client pursuant to a brokerage agreement in a residential transaction, which states that the agent will not provide one or more of the duties that a standard agent is required to provide. A limited service agent has the obligations agreed upon by the parties in the brokerage agreement, as well as some disclosure obligations required by law. 14. Person: Any natural (person) or artificial (company) entity. 15. Principal Broker: Individual broker who must be designated by each firm to ensure compliance with the Virginia License Law, to receive communications from the Board, and to supervise affiliated licensee and firm activity. 16. Principal to a Transaction: A party to a real estate transaction, including without limitation: a seller or buyer, a landlord or tenant, or an optionor or optionee. For the purposes of Virginia License Law, the listing or selling broker, or both, are not principals to the transaction by virtue of their brokerage relationship. 17. Real Estate Team: Two or more individuals who work together as a unit within the same brokerage firm, represent themselves to the public as such unit, and designate themselves by a fictitious name. At least one member must be a licensee. 18. Regulant: One (salesperson or broker) who is regulated by the Board. 19. Sole Proprietor (Non-Broker Owner): Brokerage firm that requires a firm license, but which may be owned by an unlicensed individual under specified circumstances. 20. Sole Proprietor (Principal Broker Owner): Brokerage firm that does not require a firm license, as long as the individual broker/owner is licensed. Principal broker owners may operate under legal or fictitious names as approved by the Board. 21. Standard Agent: Licensee who acts for or represents a client in an agency relationship (other than as a limited service agent) in a residential transaction. 22. Supervising Broker: Either the broker appointed by the principal broker to supervise associate brokers and salespersons (could be the principal broker), or the broker appointed by the principal broker to supervise a designated agent/representative.

18 VAC 135-20-60. Qualifications for licensure by reciprocity.An individual who is currently licensed as a real estate salesperson or broker in another jurisdiction may obtain a Virginia real estate license by meeting the following requirements:

1. The applicant shall be at least 18 years of age. 2. The applicant shall have a high school diploma or its equivalent. 3. The applicant shall have received the salesperson's or broker's license by virtue of having passed in the jurisdiction of licensure a written examination deemed to be substantially equivalent to the Virginia examination. 4. The applicant shall sign a statement verifying that he has read and understands the provisions of this chapter and Chapter 21 (§54.1-2100 et seq.) of Title 54.1 of the Code of Virginia.5. The applicant, within 12 months prior to submitting a complete application for a license, shall have passed a written examination provided by the board or by a testing service acting on behalf of the board covering Virginia real estate license law and regulations of the Real Estate Board. 6. The applicant shall follow all procedures established with regard to conduct at the examination. Failure to comply with all procedures established by the board with regard to conduct at the examination may be grounds for denial of application. 7. The applicant shall be in good standing as a licensed real estate broker or salesperson in every jurisdiction where licensed and the applicant shall not have had a license as a real estate broker or real estate salesperson which was suspended, revoked, or surrendered in connection with a disciplinary action or which has been the subject of discipline in any jurisdiction prior to applying for licensure in Virginia. The applicant shall be in compliance with all the terms of all board orders, including but not limited to paying imposed monetary penalties and costs, plus any accrued interest and other fees, and completing imposed education. 8. At the time of application for a salesperson's license, the applicant must have met educational requirements that are substantially equivalent to those required in Virginia. At the time of application for a broker's license, the applicant must have met educational requirements that are substantially equivalent to those required in Virginia, and the applicant must have been actively engaged as defined by 18VAC135-20-10 for 36 of the preceding 48 months. The broker applicant's experience must be verified by an individual who has direct knowledge of the applicant's activities as defined in §§ 54.1-2100 and 54.1-2101 of the Code of Virginia. These requirements may be waived at the discretion of the board in accordance with §54.1-2105 of the Code of Virginia. 9. The applicant shall have a good reputation for honesty, truthfulness, and fair dealing, and be competent to transact the business of a real estate salesperson or broker in such a manner as to safeguard the interests of the public. 10. In accordance with §54.1-204 of the Code of Virginia, each applicant shall submit to fingerprinting and shall disclose the following information: a. All misdemeanor convictions involving moral turpitude, sexual offense, drug distribution or physical injury within five years of the date of the application; and b. All felony convictions during his lifetime. Any plea of nolocontendereshall be considered a conviction for purposes of this subsection. The record of a conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, in its discretion, may deny licensure to any applicant in accordance with §54.1-204 of the Code of Virginia. 11. Applicants for licensure who do not meet the requirements set forth in subdivisions 7 and 10 of this section may be approved for licensure following consideration by the board. c. Concurrent Broker's License: A concurrent broker's license is a license for brokers seeking to be active in multiple firms (only brokers may be active in multiple firms). Brokers must pay a fee, submit an application, and provide written verification that they have notified the principal broker of each firm. d. Transferring Individual Licenses: Active licensees (brokers and salespersons) may transfer licenses from one firm to another by applying to the Board and paying a fee.

Historical Notes: Derived from Virginia Register Volume 15, Issue 5, eff. January 1, 1999; amended, Virginia Register Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015. □ ​​​​​​​Take a moment to review the law as written in the Code of Virginia. 18 VAC 135-20-45. Additional qualifications for salesperson's or broker's license as a business entity. (cont.)An applicant for a salesperson's license as a business entity shall meet the following requirements in addition to those set forth in 18 VAC 135-20-30:

3. The board will consider the application of any partnership, association, corporation or limited liability company only after the entity is authorized to do business in accordance with §§ 59.1-69 through 59.1-76 of the Code of Virginia.

C. Qualifications and Requirements

Certain persons and firms must be licensed to engage in specified real estate activities. 1. License Required: Subject to the exemptions below, all persons and some firms must be licensed if, on behalf of another person for a fee, they: sell or offer to sell real estate; buy or offer to buy real estate; negotiate the purchase or exchange of real estate; or rent, lease or negotiate a lease for real estate. 2. License Exemptions: Persons and firms do not require a license solely because they: sell their own property; act without compensation under a power of attorney; resolve client issues as a licensed attorney; follow a court order (bankruptcy, wills, trusts, estates); auction property (auctioneers); or merely show rental property (rental agents). Also, sole proprietor-broker owned firms with a single location do not require a firm license (but the principal broker owner must be licensed).

18 VAC 135-20-50. Concurrent licenses.

Concurrent licenses shall be issued by the board to brokers active in more than one firm upon receipt of a concurrent license form and written statements verifying that written notice of the applicant's concurrent licensure status has been provided to the principal broker of each firm with which the applicant is and will be associated. Payment is required for each license. A concurrent license will not be issued to an individual applying to be associated with a firm if that individual has an expired license associated with the same firm and the expired license may be reinstated. B. Any licensee may transfer from one licensed real estate firm or sole proprietorship to another by completing and submitting to the board a transfer application and the fee as set forth in 18 VAC 135-20-80. The transfer application shall include the signature of the new principal broker or supervising broker with signature authority who will be responsible for the licensee's real estate activities and shall be effective upon the principal broker or supervising broker's execution of the transfer application. e. Exchange of Broker License: Brokers may exchange their current license for a lower license type by applying to the Board and paying a fee. However, if a broker does choose to downgrade to a salesperson license, his current broker license will cease to exist. The licensee would need to meet all education, experience, and examination requirements to become a licensed broker again. A broker who wants to exchange his license for that of a salesperson must submit a complete application with appropriate fee. When exchanging the license(s), the licensee agrees his current broker's license(s) ceases to exist, and if he chooses to become licensed as a broker again, he must pass the current broker examination and must meet the current education and experience requirements in effect at the time of application.

The Real Estate Board has authority to administer all of the following laws EXCEPT:

Land Tort Reform Act . Correct answer. The Real Estate Board has authority to administer all of the listed laws except the Land Tort Reform Act.

18 VAC 135-20-150. Board discretion to deny reinstatement.

The board may deny reinstatement of a license for (i) the same reasons as it may refuse initial licensure or discipline a current licensee; (ii) failure to meet the terms of an agreement for licensure or other board order; or (iii) failure to fully pay monetary penalties and costs imposed by the board, plus any accrued interest. iv. Education: Licensees must complete mandatory education during each renewal period as follows: 1) PLE for New Salespersons: All new salespersons (active or inactive) must complete 30 hours of post license education (PLE) within the initial year of licensure. 2) Continuing Education for all Other Licensees: All other active licensees (brokers, salespersons, reciprocity) must complete at least sixteen (16) credits of continuing education (CE) every renewal period (2 years). Salespersons are required to complete 16 credits, while Brokers are required to complete 24 credits.

1. Operating a Firm: Duties in addition to firm and branch licensing.

a. Place of Business i. Firm Location: Firms cannot operate on residential property unless the business office is separated from the living quarters (separate entrances). Virginia residents (brokers) must maintain at least one (1) location in Virginia. Non-Virginia residents do not need a Virginia location. 1) Main Office Records: The principal broker must keep the following records at the main firm office (and make them publicly available upon request): firm license (different from a branch license); principal broker's license; and the salesperson and associate broker licenses of all who are active at the main location and branch locations. The principal broker must also keep all financial records from all locations in one location (main or branch office). 2) Main Office Supervision: A supervising broker, who may be the principal broker or any other designated broker, must exercise reasonable supervision over real estate brokerage services performed by all licensees assigned to the main office. If designated, the supervising broker must provide his name and license number to the Board. iii. Branch Office Management: Each branch must be licensed and a single location must be designated as the "main" location. 1) Branch Office Records: The supervising broker must post the following records in a conspicuous place at the branch office: branch office license and a list of assigned licensees (not the actual licenses, which must be kept at the main office). 2) Branch Office Supervision: A supervising broker must exercise reasonable supervision over real estate brokerage services performed by all licensees assigned to the branch office. The supervising broker must provide his name and license number to the Board, as well as the names and license numbers of all licensees assigned to the branch office (upon renewal of the branch office license). i. Principal Brokers: All firms must have one (1) principal broker whose license is in good standing (if it is a broker owned firm, then it will be the broker-owner). Principal brokers have the following duties. 1) Ensure Compliance: Principal brokers must ensure firm and licensee compliance with all laws and regulations (at all locations). Principal broker may be disciplined for subordinate licensee violations if she knew or should have known of a violation and failed to take reasonable action to remedy it. If the principal broker's license is suspended, revoked, or denied renewal, all subordinate licenses must be returned to the Board. 2) Receive Board Communication: Board addresses all communications about the firm or licensees affiliated with the firm (all locations) to the principal broker. 3) Keep Records: Principal broker must keep all financial records (source of funds, disclosures, executed documents) for three (3) years (from date of closing or ratification) in one location (main or branch office). 4) Supervise Advertising: Principal broker must supervise all firm advertising. 5) Manage Escrow Accounts: Principal broker is responsible for all firm escrow accounts. ii. Supervising Brokers: Broker assigned (by principal broker) to supervise associate brokers, salespersons, and real estate teams at each branch office (or at the main office if the principal broker so chooses). 1) Supervision: Supervising brokers must provide reasonable and adequate supervision of all subordinate licensees under their charge. Supervising brokers may appoint another broker to assist in this process, but the supervising broker remains responsible for proper supervision. The Board considers the following in evaluating reasonable and adequate supervision: (i) general availability; (ii) specific availability to review and approve documents; (iii) the availability of training and procedures on escrow deposits, fair housing, advertising, negotiating and drafting contracts and agreements, unlicensed individuals, agency relationships, regulatory updates, property disclosures, and other matters; 1) Supervision (cont.): (iv) compliance with all laws and regulations; and (v) brokerage agreements should include the supervising broker's name and contact information. 2) Long-distance Supervision: Supervising brokers that are located more than 50 miles from a branch office must provide quarterly certifications to the Board. These certifications state that they have complied with the rules of supervision. 3) Designated Agents: The principal broker may also assign a supervising broker to supervise a designated agent. iii. Associate Brokers: Any licensee in a firm who holds a broker's license, but who is not the principal broker.

Which of the following persons must be licensed when selling real property for others?

an appraiser . Correct answer. An appraiser acting as an appraiser needs an appraiser's license. However, an appraiser selling real estate for others must be licensed. A trustee, executor, and receiver could qualify for an exception to the license law. We do not know whether an exception applies under this situation, but that fact that one could apply makes "appraiser" the best answer.

The real estate license of any person or firm may be revoked by which of the following entities?

c. Real Estate Board . Correct answer. Only the Board can revoke real estate licenses. If court action was brought against a licensee, the Attorney General may request that the Board revoke one's real estate license. Still, only the Board may actually revoke the license

The Real Estate Board regulates:

the real estate licensing examination . Correct answer. The Real Estate Board regulates the format, scheduling, and administration of the real estate licensing exam. The other choices are outside the Board's authority.

In addition to obtaining a Virginia Real Estate License, what else must a non-resident do in order to sell real estate in Virginia?

work for a licensed Virginia broker . Correct answer. In order to sell real estate in Virginia, one must either be a licensed Virginia broker or a licensed Virginia salesperson (that is active with a licensed Virginia broker). Although the facts do not specify whether we are dealing with a broker or a salesperson, there is no legal or regulatory requirement to obtain permission from the out-of-state brokers, to live in Virginia, or to post a surety bond. Therefore, choice C is the only correct statement.

8 VAC 135-20-30. Qualifications for licensure. (cont.)Every applicant to the Real Estate Board for an individual salesperson's or broker's license shall have the following qualifications:

3. The applicant shall be in good standing as a licensed real estate broker or salesperson in every jurisdiction where licensed and the applicant shall not have had a license as a real estate broker or real estate salesperson which was suspended, revoked or surrendered in connection with a disciplinary action or which has been the subject of discipline in any jurisdiction prior to applying for licensure in Virginia. The applicant shall be in compliance with all terms of all board orders, including but not limited to paying imposed monetary penalties and costs, plus any accrued interest and other fees, and completing imposed education.

54.1-2106.1. Licenses required.

§ 54.1-2106.1. Licenses required. A. No business entity, other than a sole proprietorship, shall act, offer to act, or advertise to act, as a real estate firm without a real estate firm license from the Board. Such firm may be granted a license in a fictitious name. No business entity shall be granted a firm license unless (i) every managing member of a limited liability company, officer of a corporation, partner within a partnership, or associate within an association who actively participates in the firm brokerage business holds a license as a real estate broker; and (ii) every employee or independent contractor who acts as a salesperson for such business entity holds a license as a real estate salesperson or broker. § 54.1-2106.1. Licenses required. A. (cont.) An individual holding a broker's license may operate a real estate brokerage firm which he owns as a sole proprietorship without any further licensure by the Board, although such individual shall not operate the brokerage firm in a fictitious name. However, nothing herein shall be construed to prohibit a broker operating a brokerage firm from having a business entity separate from the brokerage firm for such broker's own real estate business, provided that such separate business entity otherwise complies with this section. A non-broker-owned sole proprietorship shall obtain a license from the Board. B. No individual shall act as a broker without a real estate broker's license from the Board. An individual who holds a broker's license may act as a salesperson for another broker. A broker may be an owner, member, or officer of a business entity salesperson as defined in subsection C. § 54.1-2106.1. Licenses required. C. No individual shall act as a salesperson without a salesperson's license from the Board. A business entity may act as a salesperson with a separate business entity salesperson's license from the Board. No business entity shall be granted a business entity salesperson's license unless every owner or officer who actively participates in the brokerage business of such entity holds a license as a salesperson or broker from the Board. The Board shall establish standards in its regulations for the names of business entity salespersons when more than one licensee is an owner or officer. D. No group of individuals consisting of one or more real estate brokers or real estate salespersons, or a combination thereof, shall act as a real estate team without first obtaining a business entity salesperson's license from the Board. A real estate team may hire one or more unlicensed assistants as otherwise provided by law. § 54.1-2106.1. Licenses required. (1996, c. 993; 1998, c. 265; 1999, cc. 82, 105; 2008, c. 319; 2012, c. 750; 2018, cc. 223, 224.) E. If any principal broker maintains more than one place of business within the Commonwealth, such principal broker shall be required to obtain a branch office license from the Board for each place of business maintained. A copy of the branch office license shall be kept on the premises of the branch office.

□ ​​​​​​​Take a moment to review the law as written in the Real Estate Licensing Law. § 54.1-2103. Exemptions from chapter.A. The provisions of this chapter shall not apply to

1. Any person, partnership, association or corporation, or their regular employees, who as owner or lessor perform any of the acts enumerated in §§ 54.1-2100 and 54.1-2101 with reference to property owned or leased by them, where the acts are performed in the regular course of or incident to the management of the property and the investment therein. For property governed by Chapter 21 (§ 55-360 et seq.) of Title 55, the term "owner" for purposes of this subdivision shall include affiliated entities, provided that (i) the owner has a controlling interest in the affiliated entity or (ii) the affiliated entity and the owner have a common parent company; 2. Any person acting without compensation as attorney-in-fact under a power of attorney issued by a property owner solely for the purpose of authorizing the final performance required of such owner under a contract for the sale, lease, purchase, or exchange of real estate; 3. Service rendered by an attorney-at-law in the performance of his duties as such; 4. A person acting as a receiver, trustee in bankruptcy, administrator or executor, or any person selling real estate under order of any court; 5. A trustee acting under a trust agreement, deed of trust, or will, or the regular salaried employees thereof; 6. Any corporation managing rental housing when the officers, directors, and members in the ownership corporation and the management corporation are the same and the management corporation manages no other property for other persons, partnerships, associations, or corporations; 7. Any existing tenant of a residential dwelling unit who refers a prospective tenant to the owner of the unit or to the owner's duly authorized agent or employee and for the referral receives, or is offered, a referral fee from the owner, agent or employee; 8. Any auctioneer licensed in accordance with Chapter 6 (§ 54.1-600 et seq.) of this title selling real estate at public auction when employed for such purpose by the owner of the real estate and provided the bidding at such auction is held open for no longer than forty-eight hours. An auctioneer shall not advertise that he is authorized to sell real estate. An auctioneer may advertise for sale at public auction any real estate when employed to do so as herein provided, and may advertise that he is authorized to auction real estate at public auction; 9. [Expired.] 10. Any person who is licensed and is in good standing as a real estate broker or salesperson in another state, and who assists a prospective purchaser, tenant, optionee, or licensee located in another state to purchase, lease, option, or license an interest in commercial real estate, as defined in § 55-526, in the Commonwealth. Such real estate licensee from another state may be compensated by a real estate broker in the Commonwealth. Nothing in this subdivision shall be construed to permit any person not licensed and in good standing as a real estate broker or salesperson in the Commonwealth to otherwise act as a real estate broker or salesperson under this chapter. B. The provisions of this chapter shall not prohibit the selling of real estate (i) by an attorney-at- law in the performance of his duties as such, (ii) by a receiver, trustee in bankruptcy, administrator or executor, a special commissioner or any person selling real estate under order of court, or (iii) by a trustee acting under the trust agreement, deed of trust or will, or the regular salaried employees thereof. C. The provisions of this chapter shall not apply to any salaried person employed by a licensed real estate broker for and on behalf of the owner of any real estate or the improvements thereon which the licensed broker has contracted to manage for the owner if the actions of such salaried employee are limited to (i) exhibiting residential units on such real estate to prospective tenants, if the employee is employed on the premises of such real estate; (ii) providing prospective tenants with factual information about the lease of residential real estate; (iii) accepting applications for lease of such real estate; and (iv) accepting security deposits and rentals for such real estate. Such deposits and rentals shall be made payable to the owner or the broker employed by such owner. The salaried employee shall not negotiate the amounts of such security deposits or rentals and shall not negotiate any leases on behalf of such owner or broker. D. A licensee of the Board shall comply with the Board's regulations, notwithstanding the fact that the licensee would be otherwise exempt from licensure under subsection A. Nothing in this subsection shall be construed to require a person to be licensed in accordance with this chapter if he would be otherwise exempt from such licensure. E. An attorney-at-law referring a client to a licensee shall not be entitled to receive any compensation from a listing firm or offered by a common source information company to cooperating brokers, unless the attorney is also licensed under this chapter as a real estate broker or salesperson.

18 VAC 135-20-70. Activation or transfer of license.

A. Any inactive licensee may activate that license with a licensed real estate firm or sole proprietorship by completing an activate form prescribed by the board. . A licensee who submits an activate application to the board shall not conduct business with the real estate firm or sole proprietorship set forth in the application until the application is processed and the license is issued by the board. Continuing education pursuant to § 54.1-2105.03 of the Code of Virginia shall be completed within two years prior to activation of a license when the license has been inactive for more than 30 days. Any licensee who has not been active with a licensed real estate firm or sole proprietorship for a period of greater than three years shall be required to meet the existing pre-license educational requirements. 18 VAC 135-20-70. Activation or transfer of license. Historical Notes: Derived from VR585-01-1 §2.6, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015. ii. Application Deadline: A license application (either active or inactive) must be submitted within 12 months of passing the state exam or the applicant must retake the exam. iii. Fictional Names: Licensees may be licensed under fictional or professional names so long as the legal name is properly registered with the Board. iv. Non-Residents: Non-residents applying for a Virginia license must file an irrevocable consent to suits and services (agreement which allows the Board to receive notice of any in-state lawsuit on the licensee's behalf). Fictional Names - EXAMPLE: William Robert Smith (legal name) wants to do business as Billy-Bob Smith (professional name). In this case, his real estate license would be issued in the name of William Robert "Billy-Bob" Smith. b. License by Reciprocity: A license by reciprocity is intended for those already licensed in another state. i. Compared to Initial License: Unlike the applicant for an initial license, the Board may waive pre-license education and may waive the national portion of the exam. ii. Qualifications: Same personal attributes and personal conduct standards as initial licensure (high school, age, honesty, standing, reputation, fair housing, and criminal violations). 1) Broker Experience: Brokers must be actively engaged as salespersons or brokers for 36 of the 48 months preceding application. iii. Education: Applicants (brokers and salespersons) must have passed exams substantially equivalent to the Virginia exam, and must certify they have read and understand Virginia license law. iv. Testing: All (active and inactive) applicants (broker and salesperson) must pass the state portion (Virginia Law) of the license exam before applying for a reciprocal license. v. Fee: Applicants must pay an application fee for license reciprocity.

8. Applying for Business Entity Salesperson Licenses:

License available to salespersons and/or associate brokers who are associated with a firm, but who want to reduce personal liability and obtain tax advantages (sales teams) by forming a business entity (corporation, partnership, limited liability company). Note that an individual can choose whether to operate under a business entity salesperson license. However, if a group wants to operate as a real estate team, they must obtain a business entity salesperson license before working as a unit at the brokerage firm. a. Limitations: Does not replace the requirement for an individual or firm license, and does not authorize brokerage activity (which would require a broker license). b. Qualifications for a Business Entity Salesperson License: Applicant must satisfy all the individual license qualifications, as well as the following: i. Active Participation: Owners or officers who are active participants must hold a license (salesperson, associate broker). ii. Authorized to Do Business in Virginia: The business entity must be authorized to do business in Virginia by the Virginia State Corporation Commission.

B. The Virginia Real Estate Board (VREB or Board):

Virginia State Government body authorized to regulate the real estate profession in Virginia. 1. Composition: The VREB consists of nine (9) members: seven (7) licensed brokers or salespersons with five consecutive years of experience, and two (2) citizens. ​​​​​​​Take a moment to review the law as written in the Real Estate Licensing Law. § 54.1-2104. Real Estate Board; membership; chairman; seal.The Real Estate Board shall be composed of nine members as follows: seven members who have been licensed real estate brokers or salespersons for at least five consecutive years before their appointment and two citizen members. The terms of Board members shall be four years. The Board shall elect a chairman from its membership. The Board shall adopt a seal by which it shall authenticate its proceedings.

7. Applying for Firm Licenses

a. Broker Owned Sole Proprietor: Firms owned by a single licensed broker (sole proprietor) with a single location (no branch offices) do not need a firm license. i. Branch Offices: All branch offices must be licensed (and supervised by a broker), even if owned by a single licensed broker. Branch licenses must be posted at the licensed branch office. ii. Names: All firms may operate under fictitious names. However, licensed (single) broker owners must first register their legal name with the Board, along with their fictitious name, and their residential and business addresses. b. All Other Firms: All other firms owned by multiple brokers, non-brokers, or organized as a corporation, partnership, association, or limited liability company (LLC) must have a firm license (in addition to individual licenses). The firm must also be authorized to do business in Virginia by the Virginia State Corporation Commission. i. Branch Offices: All branch offices must be licensed (and supervised by a broker). Branch licenses must be posted at the licensed branch office. ii. Names: All firms may operate under fictitious names. However, non-broker owned firms may only be licensed in the company's legal name (which may be fictitious).

6. Applying for Individual Licenses (Salesperson and Broker)

a. Initial Licenses: An initial license is intended for those without a license in any state. i. Active/Inactive Status: Initial applicants must choose an active or inactive license. 1) Active Status: License issued to one who is affiliated with a broker. Issued to Broker: The Board issues active licenses directly to the applicant's principal broker (not the licensee), who must make the license publicly available at the main office (no requirement to display the license). Property of the Board: Licenses belong to the Board, not the licensee or the principal broker, and must be returned to the Board if the licensee is terminated from a firm, becomes inactive, or has his license revoked. 2) Inactive Status: License issued to one who is not affiliated with a broker, which carries the following limitations: Prohibited Activity: Inactive licensees cannot engage in any acts requiring a real estate license. Limited Period: Licensees with inactive licenses must apply for active status within three (3) years or re-qualify (repeat the pre-license education and exam), subject to the Board's discretion (waiver for related experience and military members or spouses).

18 VAC 135-20-40. Additional qualifications for brokers.An applicant for an individual license as a real estate broker shall meet the following requirements in addition to those set forth in 18 VAC 135-20-30:

1. The applicant shall meet the current educational requirements of § 54.1-2105 of the Code of Virginia. 2. The applicant shall have been actively engaged as defined in 18 VAC 135-20-10 as a real estate salesperson for a period of 36 of the 48 months immediately preceding application. This requirement may be waived at the discretion of the board in accordance with § 54.1-2105 of the Code of Virginia. 3. The applicant's experience must be verified by the principal or supervising broker for whom the licensee worked at the time of obtaining that experience. Other Qualifications 4. Minimum Qualifications for Firm Licenses: All firms, except those owned by a single licensed broker with a single location (known as a sole proprietor-principal broker owner), must be (separately) licensed and must also be registered to do business in Virginia pursuant to Virginia Law (Corporation, LLC, Partnership, etc.). 5. Minimum Qualifications for Business Entity Salesperson License: Licensed salespersons and brokers may apply for a separate "business entity" salesperson's license. A business entity salesperson's license permits the individually licensed salesperson(s) and/or broker(s) to work under a principal broker as a business entity (corporation, partnership, LLC) and to benefit from the accompanying limitations on personal liability. Like non-broker owned firms, the business entity must first be registered under Virginia Law.

18 VAC 135-20-170. Maintenance of licenses. (cont.)

1. When any salesperson or broker is discharged or in any way terminates his active status with a sole proprietorship or firm, it shall be the duty of the sole proprietor or principal broker to return the license to the board so that it is received within 10 calendar days of the date of termination or being notified of the status change. The sole proprietor or principal broker shall indicate on the license the date of termination, and shall sign the license before returning it. 2. When any principal broker is discharged or in any way terminates his active status with a firm, it shall be the duty of the firm to notify the board and return the license to the board within three business days of termination or being notified of the status change. The firm shall indicate on the license the date of termination, and shall sign the license before returning it. See §54.1-2109 of the Code of Virginia for termination relating to the death or disability of the principal broker. c. Renewing Licenses: All licenses (firm and individual, active and inactive) must be renewed every two (2) years (from date of receipt) by the license holder. To do so, the license holder must pay a renewal fee and complete all mandatory education (extensions are available for military personnel). As with initial licensure, the Board has discretion to deny a renewal application. i. Expiration: Licenses not timely renewed (every 2 years) will expire. Once expired, the licensee cannot engage in regulated activity. ii. Reinstatement: Expired licenses may be reinstated for up to one (1) year following expiration (within 30 days by paying renewal fee; 31 days to 1 year by paying extra reinstatement fee). As with renewal and initial licensure, the Board has discretion to deny reinstatement. ii. Reinstatement: Expired licenses may be reinstated for up to one (1) year following expiration (within 30 days by paying renewal fee; 31 days to 1 year by paying extra reinstatement fee). As with renewal and initial licensure, the Board has discretion to deny reinstatement. iii. Lapse: Licenses not timely reinstated (over 1 year from expiration) will lapse. Once lapsed, the licensee must reapply for an initial license.

18 VAC 135-20-160. Place of business.

18 VAC 135-20-160. Place of business. 1. The principal broker, either through his own efforts or through the efforts of his employees or associates, regularly transacts the business of a real estate broker as defined in §54.1-2100 of the Code of Virginia; and 2. The principal broker and his employees or associates can receive business calls and direct business calls to be made. B. No place of business shall be in a residence unless it is separate and distinct from the living quarters of the residence and is accessible by the public. □ ​​​​​​​Take a moment to review the law as written in the Code of Virginia. 18 VAC 135-20-160. Place of business.A. Within the meaning and intent of §54.1-2110 of the Code of Virginia, a place of business shall be an office where:

18 VAC 135-20-30. Qualifications for licensure. (cont.)Every applicant to the Real Estate Board for an individual salesperson's or broker's license shall have the following qualifications

4. In accordance with §54.1-204 of the Code of Virginia, each applicant shall submit to fingerprinting and shall disclose the following information: a. All misdemeanor convictions involving moral turpitude, sexual offense, drug distribution or physical injury within five years of the date of the application; and b. All felony convictions during his lifetime. Any plea of nolocontendereshall be considered a conviction for purposes of this subsection. The record of a conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, in its discretion, may deny licensure to any applicant in accordance with §54.1-204 of the Code of Virginia. 5. The applicant shall be at least 18 years old. 6. The applicant shall have a high school diploma or its equivalent. 7. The applicant, within 12 months prior to submitting a complete application for a license, shall have passed a written examination provided by the board or by a testing service acting on behalf of the board. 8. The applicant shall follow all procedures established with regard to conduct at the examination. Failure to comply with all procedures established with regard to conduct at the examination may be grounds for denial of application. 9. Applicants for licensure who do not meet the requirements set forth in subdivisions 3 and 4 of this section may be approved for licensure following consideration by the board.Historical Notes: Derived from VR585-01-1 §2.2, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Errata, 19:14 VA.R. 2176, 2177 March 24, 2003; amended, Virginia Register Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015.

18 VAC 135-20-140. Failure to renew; reinstatement required.

A. All applicants for reinstatement must meet all requirements set forth 18 VAC 135-20-101. Applicants for reinstatement who want to activate their license must have completed the continuing education requirement in order to reinstate and activate the license. Applicants for reinstatement of an inactive license are not required to complete the continuing education requirement for license reinstatement. B. If the requirements for renewal of a license, including receipt of the fee by the board, are not completed by the licensee within 30 days of the expiration date noted on the license, a reinstatement fee is required as follows: C. A license may be reinstated for up to one year following the expiration date with payment of the reinstatement fee. After one year, the license may not be reinstated under any circumstances and the applicant must meet all current educational and examination requirements and apply as a new applicant. D. A licensee may not perform activities defined in §§ 54.1-2100 and 54.1-2101 of the Code of Virginia with an expired license. Any real estate activity conducted subsequent to the expiration date may constitute unlicensed activity and be subject to prosecution under Chapter 1 (§54.1-100 et seq.) of Title 54.1 of the Code of Virginia.

18 VAC 135-20-101. Qualification for renewal; continuing education requirements.

As a condition of renewal, and pursuant to §54.1-2105.03 of the Code of Virginia, all active salespersons, resident or nonresident, except those called to active duty in the Armed Forces of the United States, shall be required to satisfactorily complete a course or courses of not less than a total of 16 classroom, correspondence, or other distance learning instruction hours during each licensing term, except for salespersons who are renewing for the first time and are required to complete 30 hours of post-license education regardless of whether his license is active or inactive. All active brokers, resident or nonresident, except those called to active duty in the Armed Forces of the United States, shall be required to satisfactorily complete a course or courses of not less than a total of 24 classroom, correspondence, or other distance learning instruction hours during each licensing term. Active licensees called to active duty in the Armed Forces of the United States may complete these courses within six months of their release from active duty. Inactive brokers and salespersons are not required to complete the continuing education course as a condition of renewal (see 18 VAC 135-20-70, Activation of license).

3. Minimum Qualifications for Individual Licenses:

The Board is guided by (but has discretion to override) the following qualifications for initial licensure (broker or salesperson). a. Personal Attributes: Candidates for a real estate license must have a high school diploma or its equivalent, be at least 18 years old, be in good standing in all other jurisdictions where licensed, and be reputed to act honestly, truthfully, fairly, and competently. Broker candidates must have experience as licensed active salespersons for 36 of the preceding 48 months before application. b. Prior Convictions: Candidates for a real estate license must disclose convictions of certain misdemeanors that occurred within 5 years of application (moral turpitude, sexual offense, drug distribution, physical injury) and must also disclose any felony convictions that occurred within the candidate's lifetime. Candidates must also submit a set of fingerprints to the Virginia Central Criminal Records Exchange so the Board may procure a state and national fingerprint-based criminal history record. Additionally, candidates must not have had a license suspended, revoked, or surrendered in any state. c. Education: Candidates for a real estate license must pass an approved pre-license education course. Candidates must also sit for and pass the state examination (National and State portions) following successful completion of their pre-license education.

Authority

The Board may only regulate the real estate profession as authorized by the Virginia legislature. a. Licensing Oversight: The Board regulates real estate licenses through the following powers. i. Rulemaking: The Board may create and enforce its own administrative rules. ii. Licensing: The Board may issue and renew real estate licenses. iii. Enforcement: The Board may enforce the license law (in addition to its own regulations). Enforcement authority includes the power to withdraw a license temporarily (suspension) or permanently (deny renewal, revocation), and to impose monetary penalties (fines) for violating the law and regulations (no criminal authority). iv. Education: Consistent with the law, the Board regulates educational requirements for all license candidates (pre-licensing education) and existing licensees (post licensing education and continuing education—PLE and CE). The Board also regulates real estate education providers (schools). b. Authority Under Other Real Estate Laws: The Board may enforce the Virginia Fair Housing Act in cases involving real estate licensees and their employees. The Board may promulgate real estate forms if specifically directed by the state legislature, as in the case of the Property Disclosure forms under the Virginia Residential Property Disclosure Act. The Board also has authority to administer the Virginia Real Estate Transaction Recovery Fund. c. Lack of Authority: The Board may not arbitrate disputes between licensees, and the Board may not establish commission rates or standardized agreements (such as sales contracts). d. Compared to Trade Organizations: Trade organization membership and standards (such as NVAR) are voluntary and do not affect licensure; VREB rules and orders are mandatory.

9. Maintaining Individual and Firm Licenses

a. Reporting Changes: License changes must be reported within either ten (10) or thirty (30) days as follows. Termination of the principal broker must be reported in three (3) days. i. Change in Status—10 Days: A change in active or inactive status (termination or voluntary separation) must be reported to the Board within ten (10) days (measured from date of receipt). 1) Termination of Salesperson or Associate Broker: If the firm terminates a licensee, the principal broker must return the license to the Board within ten (10) days. 2) Voluntary Inactivation: The licensee must notify the Board within ten (10) days when voluntarily placing one's license on inactive status. ii. Change in Personal Information—30 Days: Licensees must report changes in personal information (name, address) to the Board within thirty (30) days (measured from the date of receipt). iii. Change in Firm Information—30 Days: Principal broker must report changes in firm information (firm and branch address, ownership) to the Board within thirty (30) days. iv. Termination of Principal Broker—3 Days: If the firm terminates the principal broker, the firm must return the license within three (3) days. b. Certification of Firm's Compliance with Law: When submitting the renewal of any of any firm or sole proprietor license, the principal or supervising broker must certify that he or she has audited the operations, policies, and procedures of the firm to assure compliance with the license law and the Board regulation