Real Estate Law
all financial transactions conducted under the Virginia-licensed broker must...
--be held in the principal broker's place of business, which can be a designated branch office. (VA office)
payment or compensation to a real estate broker does NOT
--create a brokerage relationship between any broker, seller, landlord, buyer or tenant. **Licensee representing a buyer or tenant shall be deemed to have a brokerage relationship with a seller, landlord or other licensee solely by reason of using a common source information company.
Salespersons' and brokers' licenses renewal:
--renewed every two years by the last day of the month during which the license was issued --no automatic renewal -- up to LICENSEE to renew her license -- license is not renewed before the expiration date, the license is then EXPIRED.
licensed as a broker or salesperson in Virginia may prepare written contracts?
--sale, purchase, option, exchange, or rental of real estate, unless there is a contradictory court ruling. **does not charge a separate fee for preparing the contracts.
Business entity salesperson license
--salespeople and associate brokers who do not establish a brokerage firm, but wish to have the liability protection and tax benefits of a corporation or LLC can register.
Virginia Real Estate Board also:
-9 members -least five consecutive years before their appointment, and two citizen members **Board member terms are four years long **The chairman is chosen from its membership **The Board adopts a seal to use in authenticating its acts **The Virginia Real Estate Board is NOT the same as the "Virginia Association of Realtors" (VAR) or any local Association of Realtors
18 VAC 135-20-180.A-1.
Failure to deposit funds in an account or accounts designated to receive only such funds as required
Chapter 18 VAC 135-20-180.
Failure to have sufficient balances in an escrow account or accounts
"no news is good news"
and the lessee can be considered approved.
Principal brokers, associate brokers, and salespeople
issued individual licenses.
Broker license educational criteria
require 180 hours of board-approved real estate study
FEDERAL Fair Housing Act of 1968
which made it illegal to discriminate based on a person's Race, Color, Religion, or National Origin in: -The sale or rental of housing or residential lots -Advertising the sale or rental of housing -The financing of housing -The provisions of real estate brokerage services
Event that Broker does hold money or documentation for others in an escrow account, they must:
--Establish an escrow account in the name by which the business is licensed --Deposit or hold such money as earnest money, down payments, security deposits, or advance money for closing costs
These businesses must have Virginia real estate firm license for its firm before transacting real estate business?
--Every corporation, LLC, association, or non-broker owner sole proprietorship
In escrow accounts
--Funds cannot be taken from an escrow account until a transaction is consummated --do not need to be held in an account bearing interest. **IF the transaction is NOT consummated, the funds will remain in escrow.** --All the principals agree in writing, to the disposition of the funds --The funds are disbursed through court order --The broker will decide to whom the funds belong
LANDLORD is violating the lease or the law
--tenant may notify the landlord in writing, and allow the landlord 30 days to correct this violation --
security deposit
--protect against non-payment or rent or damage made to the property by the tenant --may not be more than two months' rent --returned to the tenant within 45 days of vacating the premises --deposit is withheld, the landlord must give the tenant a written, itemized list of the charges --final inspection of the property must be held within 72 hours of the tenant vacating the property***
obtain a real estate license
--state-approved 60-hour course on the principles of real estate. --Take AND PASS the state examination --he has 12 months to apply for a license.
sublease?
--tenant is allowed, within the lease, to sublease, the sub-lessee must be approved by the landlord within ten days of written notice. --
A broker's salaried employee may do the following WITHOUT a real estate license:
-Show residential units -Provide the prospective tenants with factual information about the lease -Accept applications for lease, security deposits and rentals for such real estate
Informal Fact Finding Conference (IFFC)
during which a member of the board listens to all involved parties, and makes a decision. He may dismiss the case, or allow the respondent to enter a consent order. Both of these "decisions" MUST have the ratification of the entire board membership. ***Hearing Officer WILL NOT assign sanctions, but the board CAN, after reviewing the case, either dismiss it or assign sanctions (and cite violations). A penalty of up to $1,000 per violation may be imposed. At this point, the board MAY ALSO SUSPEND, REVOKE, or DENY RENEWAL of the licensee's license.
agency
every relationship in which the real estate licensee acts for or represents a person by such person's express authority in a real estate transaction.
Commingling
** illegal activity in which a Virginia real estate licensee mixes earnest money with his own money the funds of any person by a principal or supervising broker or his employees or associates or any licensee with his own funds, or those of his corporation, firm, or association.
alleged discriminatory act has occurred
--attempt to resolve, --administrative hearing may be held to determine whether to revoke..etc, --least ten days before the conference, the Board write a report explaining their findings and conclusions of the investigation conducted --violated any Fair Housing laws, and the Board agrees with this finding, the Board, after notification to the licensee, will have to take appropriate action --board will begin proceedings within 30 days, and within 100 days, must decide if there is reasonable cause to back up the discrimination allegations
licensed elsewhere as a salesperson or broker?
--board does have the authority to waive PART of the pre-licensing requirements --18 years old --received her license by passing an exam basically equivalent to the Virginia exam Has kept the Fair Housing laws in any jurisdiction --Has not been convicted anywhere in the United States for a misdemeanor involving moral turpitude, sexual offense, drug distribution, physical injury or any felony. (There cannot be an appeal pending, or the time for the appeal has to have passed.) --Is in good standing in every jurisdiction where she is licensed --Has not had her license suspended, revoked, or surrendered in connection with any disciplinary action (including the person being the reason for the disciplinary action) --Has taken and passed the Virginia portion of the licensing examination
license-related facts
--certificates of licensure belong to the Virginia Real Estate Board --The Virginia Real Estate Board MUST be kept up to date as to name, address, or other personal information changes --Upon termination of a licensee, closing of a firm, death of a licensee, change of license status, change of licensee name or address or both, such licenses must be returned with proper instruction to the board within ten calendar days --Changes that are not on the license such as personal information, legal name, and change of ownership of the brokerage partnership, or change of officers in a corporation require that the board receive notification within 30 calendar days
continuing education during each two year licensing term.
-24 hours of continuing education shall include the following, --3 hours of ethics and standards of conduct, --2 hours of fair housing, --1 hour of legal updates and emerging trends, --1 hour of real estate agency, --1 hour of real estate contracts, --8 hours of courses relating to supervision and management of real estate agents and the management of real estate brokerage firms, and --8 hours in real estate related subjects.
broker's records should include the following:
-Any funds received, and the source of said funds -The date the funds were received -The date of the deposit of the funds -The place of the deposit -The final disposition of the funds
The Virginia Real Estate Board does NOT:
-Handle disputes between either salespeople and brokers, OR between brokers -Standardize listing sales contracts, listing agreements, or any other forms used in real estate practice -Establish commission rates or commission splits
The Virginia Real Estate Board administers the following:
-The Virginia Fair Housing Act -The Virginia Condominium Act -The Virginia Time-Share Act -The Consumer Real Estate Settlement -Protection Act as it applies to licensed real estate brokers -Common Interest Community Management Information Fund -The Virginia Transaction Recovery Fund
Common Interest Community Association Liaison
-deal with the administration, regulation and operation of common interest communities. -ssists those who live in, manage, or maintain CIC --it is allowed to give non-binding interpretations of the laws affecting such communities ***-Specifically on the Condominium Act and the Property Owners' Association Act
The following are not eligible to receive payments from the fund
Licensees The spouse, children, or representatives of either, of the person against whom the judgment was made A financial/lending institution A person whose business involves the construction/development of real property
HUD and EPA disclosure rules do not apply to the sale or lease of target housing are the following
Target housing foreclosure sales Lease transactions with lead-based paint-free target housing Lease renewals in which the tenant has already received the pertinent information The sale or lease of a 0-bedroom property Sale or lease of housing for the elderly or disabled, unless a child under 6 lives in the building Leases of 100 days or less, in which there will NOT be a renewal
fee simple" ownership in his unit
UNTIL ANY UNIT IS SOLD, it is the responsibility of the declarant. After a unit is sold, it becomes the responsibility of the buyer. Also, once 75% or more of the units are sold, the declarant is no longer responsible for the units, and instead, the responsibilities fall to the association of unit owners.
Virginia Residential Property Disclosure Act
either provide a residential property disclosure statement (regarding the physical condition of the property) --Water and sewer systems, insulation, structural systems, plumbing, electrical, heating and air conditioning systems, any wood-destroying insect infestation, land use matters, possible hazardous or regulated materials, such as asbestos, lead-based paint, radon and underground storage tanks, and other material defects. The disclosure form will also inform prospective purchasers and owners that
owner will not be held liable
for incorrect information supplied to him by a reliable third party, including surveyors, engineers, appraisers, public authorities, or home inspectors.
by-laws may be changed
if 33 1/3% of the voting members of the condominium vote for a change. This number is not always consistent, though - certain by-laws may require a different percentage - but by no means will be less than 25%.
Voluntary transfers
in between relatives, co-owners of the property, as the result of a divorce settlement, or for new homes
Megan's Law
information about released sex offenders and "violent sex offenders" available to the public. --BUYER'S responsibility to look into this "Megan's Law" information, if he/she so chooses.
declarant
is a natural or legal owner who "declares" his intention to commit a property to a condo regime.
payment is made from the Transaction Recovery Fund FOR a licensee,,,
the licensee's license will be REVOKED AUTOMATICALLY!
post license curriculum
--30 hour --within one year of the Board issuing their license. --
death or disability of a licensed real estate broker
--Employee of the licensee may conclude the broker's business for 180 days following the death or disability of the broker **If no one else is available, the Board may appoint any other suitable person to terminate the business within 180 days.
"automatic renewal"
--lease will automatically renew with the same terms unless one of the parties notifies the other party in writing within a specified number of days before the termination of the lease.
NOT covered under VA Residential Landlord & Tenant Act
--on-residential rentals single family houses (in the case that the owner rents less than ten of them), and condominiums (if the landlord rents a maximum of four units).
does not need to have a real estate license to:
-Any owner, lessor, or their employees dealing with their own property -Anyone acting without pay as attorney-in-fact or power of attorney for another -An attorney in the final dealings with the property -A receiver, trustee in bankruptcy, administrator or executor, or anyone selling real estate because of a court order -Any trustee or his employees, if performing according to a trustee agreement, deed of trust, or will -A corporation managing rental housing, if the officers, directors and members in the ownership corporation and the management corporation are the same, AND the management corporation manages no other property -An auctioneer selling real estate at a public auction for the owner (provided that the auction is open only 48 hours and he does not advertise that he is authorized to sell real estate)
rights have been violated
-File a complaint within ONE YEAR with the Virginia Real Estate Board -File a complaint within TWO YEARS with the state court
suspended or revoked =
1) a very detailed explanation of the event/circumstances must be included with his license application. *if there was a prior misdemeanor involving moral turpitude, sexual offense, drug distribution, physical injury or any felony, the license applicant must submit 1)An official FBI record 2) State police criminal record 3) Relevant certified copies of all court records 4) A written explanation of his part in the offense, including the current status and final resolution of the offense
All broker applicants must have served as real estate salesperson for
36 of the previous 48 months before applying for a broker's license
People Organizations LLCs (Limited Liability Corporations) Partnerships Associations Sole proprietorships which are not owned by a broker
Any person or organization, that either performs or advertises brokerage services, for another person or entity, must be licensed by the Virginia Real Estate Board. Licenses may also be issued to
Must have a real estate license in Virginia to:
Sells or offers to sell real estate Buys or offers to buy real estate Negotiates the purchase or the exchange of property Rents, leases, or negotiates a lease of real estate
licensed firm or sole proprietorship displaying or using the service mark is an independently owned and operated business. Such disclosures are mandated in:-
Television Newspaper Radio Telephone directory Oral advertising ***NOT necessary in telephone communications
Steering
The channeling of prospective homebuyers to or away from particular neighborhoods, thereby limiting their choices. A licensee cannot assume that a prospective home seeker expects to be directed to certain neighborhoods or properties.
Escrow records
MUST BE kept for three YEARS from the date of closing or ratification **transaction does not close, and they must include complete copies of each contract, agreement and closing statements in regard to the real estate transaction and any other related documentation.
A business entity which is licensed as a salesperson MUST
Must NOT act as a broker. If there is only one licensee who is the owner or officer, an applicant for this type of license, MAY NOT have a fictitious name as the business name
"bona fide"
Refuse to rent, lease, sell, or finance with a "bona fide" offer
common source information company
any person, firm, or corporation that is a source, compiler, or supplier of information regarding real estate for sale or lease and other data and includes, but is not limited to, multiple listing services
Incidental closing expenses
appraisal fees, and insurance --may NOT be deducted from a deposit or down payment unless otherwise agreed to in writing by all principals to the transaction.
The security deposit cannot
be taken from an escrow account required by the lease without the written consent of the tenant.
Fair Housing
discriminate on the basis of: Race, Color, Religion, National Origin, Sex Elderliness (anyone 55 or over, according to this law). Familial Status (including pregnant women and those adopting or in the process of obtaining custody of a child or children). Handicap **Deny membership in MLS
sole proprietor brokerage or principal broker owner brokerage business CAN...
either be in the name of the broker owner or can be under a fictitious name. **A sole proprietor brokerage does NOT require a separate firm license.
Conversion
even greater violation, is an illegal activity in which the Virginia real estate licensee takes the money or property of others
If a payment has to be made from the Transaction Recovery Fund
his license will be REVOKED AUTOMATICALLY
If he doesn't pay the assessment to the Transaction Recovery Fund
his license will be SUSPENDED AUTOMATICALLY
check returned because of insufficient funds
landlord can give the tenant a notice mandating payment via cash, cashier's check, or certified check, within five days. If the payment is not made in this time, the landlord may take the appropriate above action
concurrent license
license issued to brokers active in more than one real estate firm or business. ***Salespeople are NOT allowed to have concurrent licenses.*** --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.
An active license
licensee is associated with a broker, who must certify the new licensee's license application that he has agreed to be associated with this new licensee; the license will be sent DIRECTLY TO THE BROKER, and is immediately valid. **the license always hangs in the MAIN OFFICE of the broker
rent increases?
must be agreed to by the tenant in writing. Failure to agree will be taken as a notice to vacate the property.
owner is selling his own property.
must clearly disclose that he is licensed in ALL ads, including both newspaper advertisements and signage on the property itself.
An inactive license
one in which the broker or salesperson is not affiliated with a supervising broker, firm, or sole proprietorship; he/she may NOT act as a real estate agent in any capacity.
Virginia Real Estate Board
regulates businesses and individuals representing others in real property transactions, including condominiums, cooperatives, and time-shares.
brokerage relationship must have
specific date of termination. If it does not, the relationship will automatically terminate 90 days after it was begun. **brokerage relationship is complete =must still provide the client with an accounting of the monies and properties related to the brokerage agreement and maintain confidentiality regarding any personal and/or financial information about the client received during the client/brokerage relationship.
Five-Day Pay-Or-Quit Notice
tenant is given written notice to pay the rent within five days, or leave the property
Unlawful Detainer Warrant
tenant is still obligated to pay rent, but the landlord may begin eviction proceedings
new salesperson fails to complete the course work within the one year?
the Board must place the license on inactive status until the curriculum is completed.
Brokers are NOT required
to maintain escrow accounts.
Redlining
The practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the economic qualifications of the applicants is known as redlining. Keep in mind that a LENDING INSTITUTION CAN refuse a loan solely on sound economic grounds.
Blockbusting
The unlawful activity of inducing or attempting to induce a person to sell or rent a dwelling by making representations regarding the entry or prospective entry into the neighborhood of a person in one of the protected classes
Institutional Advertising
advertising in which neither the licensed name nor any other identification of any licensed individual is disclosed --no real property is identified, and a service mark is identified -- state that the service being advertised is a REAL ESTATE BROKERAGE --
continuing edu?
July 1, 2007 all salespeople must complete 16 hr course. --At least eight of these hours must include courses in Fair Housing Laws (2 hours), Ethics and Standards of Conduct (3 hours), Legal Updates and emerging Trends (1 hour), and 1 hour of real estate contracts. --The remaining eight hours must be in real estate-related topics approved by the Virginia Real Estate Board (refer to Code of VA 54.1-2105-E). Note: VA 54.1-2105 has the correct requirements. The VREB has not yet updated 18 VAC 135-20-100. The correct number of required hours for CE is 16).
Va Real Estate Firm License Must
--Be separate from any license issued to any single member of the firm --Hold the name by which the public will know this firm and be issued in this name --Receive board certification in the event of a change of ownership of a partnership or association, or a change in the officers of a corporation (the board must be notified of these changes within 30 days of the change taking place) --A certificate must be filed detailing the specifics and principles
Lead-based paint disclosure is necessary for any residential structures built prior to 1978.
--Disclosure of any known lead in the dwelling --HUD pamphlet --Risk assessment opportunity (which gives right to rescind contract for ten days).
contract is ratified?
***any earnest money or down payments MUST be put into the escrow account by the END OF THE FIFTH BUSINESS BANKING DAY, unless otherwise agreed to in writing. This money must remain in the account until the transaction has been completed - either by consummation or termination
Failure to comply with this act, under the EPA, could result in civil penalties
***maximum of $10,000 PER VIOLATION. In addition to (or instead of) civil penalties, criminal penalties of up to $10,000 PER VIOLATION, or IMPRISONMENT for a maximum of ONE YEAR, could be mandated!! As if that weren't enough, HUD may also assess penalties of up to $10,000 per violation! ***Liable to the purchaser or lessee, for an amount equal to THREE TIMES THE AMOUNT OF DAMAGES INCURRED
Disclosure
**IS necessary for Internet advertising. -Disclosure" in the context of online advertising means advertising that contains the firm's licensed name, city and state where the main office is located, the name of the firm with which the licensee is active, the city and state of the licensee's office --May be given in combination with other disclosures or provided with other information --IF the disclosure IS given with other disclosures, this disclosure must be conspicuous, printed in bold lettering, all capitals, underlined, or within a separate box!! --If at some point the licensee's relationship to a client or customer changes, the licensee shall disclose that fact in writing to all clients and customers --Copies of any disclosures regarding a fully executed purchase contract must be held by the licensee THREE YEARS --A licensee may disclose to an actual or prospective landlord or tenant, if this person is NOT the client of the licensee nor represented by another licensee, that the licensee has a brokerage relationship with another party or parties to the transaction. There is an exception to this requirement - **this disclosure rule does NOT apply to lessors or lessees in single or multi-family residential units if the lease term is less than TWO MONTHS.
licensee is not entitled to...
**Unless it is otherwise agreed by principal to lease.. --any part of the security deposit --or to any other money paid to the licensee in connection with any real estate lease as part of the licensee's commission EXCEPT in conjunction with the terms of the lease or the property management agreement, as applicable.
"Dual agent" or "dual representative"
**a licensee who has a brokerage relationship with both seller and buyer, or both landlord and tenant, in the same real estate transaction --ONLY WITH THE WRITTEN CONSENT of all clients to the transaction. --MUST be able to remain neutral when dealing with the two parties --Confidences shared with the licensee from any of the involved parties must be kept confidential.
Concurrent licenses
**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. **may ONLY be performed through the broker and NOT with the salesperson or associate broker. **licensee may NOT act for more than one client in a single transaction UNLESS he's received a written consent of all clients. Without the consent, this is ILLEGAL.
Virginia Residential Landlord and Tenant Act:
**landlord cannot release the tenant's financial information to a third party, with the exception of rental amounts and record of payments, without the written consent of the tenant. The exception to this is the prospective buyer of the rental property - he may have access to all records. **A landlord is allowed to access rental properties, provided he's given the tenant reasonable notice of his intent to visit the property (except in the case of emergency). --The tenant may not deny "reasonable" requests, but if he feels that the requests are not reasonable, he may seek an injunction from the circuit court of Virginia.** --If the tenant is away from the rental property for longer than seven days, the landlord has the right to enter the property to make sure everything is protected.** --Tenants can install security devices, provided that it's at their own expense, they restore the property to its original condition before vacating the property, and the landlord is given operating instructions and keys for any and all equipment installed.
Consumer Real Estate Protection Act
**mandates that a specific disclosure be given IN BOLD-FACED TYPE regarding the choice of settlement agent and the unauthorized practice of law. This applies to transactions: --Involving the purchase of or lending on the security of real estate located in Virginia --Containing a maximum of FOUR residential units
In the event a transaction is NOT consummated:
-- principal broker or supervising broker will hold funds in escrow until all principals to the transaction have agreed --or a court of competent jurisdiction orders such disbursement of the funds. --receive them in accordance with the clear and explicit terms of the contract which established the deposit. --prior to disbursement,written notice to the principal to the transaction not to receive the deposit hand or mail --transaction is received by the broker within 30 days of the hand delivery or mailing --sent within 90 days of the date of non-consummation --
main office vs. Branch office
--"main office," and the other offices as "branch offices." Separate licenses MUST BE obtained for **EACH branch office. These applications will include the name of the brokerage, branch office address, and the name of the appropriate supervisory broker. **Branch offices must display both this branch office license and a list of every salesperson and broker assigned to this office.
resident real estate broker must have a place of business in Virginia.
--A place of business can only be in a residence in which it is separate and distinct from the living quarters of the residence and is accessible by the public. --For each firm or sole proprietor, there is only one principle broker, no matter how many offices or agents are affiliated with that firm. --Brokers and salespeople's licenses are issued to the place of business where they are employed, once the principle broker requests the license. ----The request must be made in writing on a board form. --Each place of business and each branch office must be supervised and personally managed by an on-premises real estate broker who supervises only that office.
IF the transaction is NOT consummated, the funds will remain in escrow. At this point, one of three things will happen:
--All the principals agree in writing to the disposition of the funds --The funds are disbursed through court order --The broker will decide to whom the funds belong.
broker in the state of Virginia meet the following criteria is:
--Be at least 18 years of age --Be in good standing in any state where licensed, if licensed in another state --Have a good reputation for honesty, truthfulness, and fair dealing and be competent to transact real estate business in such a manner as to safeguard the public interest --Not have been found guilty of violating the fair housing laws of ANY jurisdiction --Must follow all board rules and rules of the testing service in taking the examination (Those who do not follow the rules may have their applications denied!) --Pass a written license examination approved by the Virginia Real Estate Board within 12 months of license application --Not have had a real estate license revoked or suspended in any state --Not have been convicted anywhere in the United States for a misdemeanor involving moral turpitude, sexual offense, drug distribution, physical injury or any felony (There cannot be an appeal pending, or the time for the appeal has to have passed.)
Committing following acts disciplined by the Virginia Real Estate Board
--Failing to comply with the rules of the Code of Virginia and board regulations (could be charged with "improper dealings") --Not responding to a board inquiry within 21 days --Failing to produce for the board any documentation regarding a real estate transaction in which the licensee was involved or for which he was required to keep records --Obtaining a license fraudulently, allowing someone else to take the exam in the "licensee's" place, or falsifying the application --Sitting for a real estate licensing exam once the person is ALREADY a currently licensed broker --Being convicted or found guilty of a misdemeanor involving moral turpitude, a sexual offense, drug dealing or physical injury, or ANY ---FELONY, if there is no appeal pending. Failing to notify the board within 30 days of pleading guilty or nolo contender of any of the preceding offenses --Violating any Fair Housing Laws --Failing to safeguard the public in one's work as a real estate licensee --Failing to act in a proper, honest, and upstanding manner as a real estate licensee
2 receive a payment from the fund, the complainant must
--Have a judgment of "improper and dishonest conduct" from a Virginia court --Take legal action against the licensee to prove he doesn't have the assets available to pay the claim --If it's determined his assets are not sufficient, the claimant should file a claim with the Director of the DPOR requesting payment from the Fund for the unpaid portion of the claim. This must be filed within six months of the final judgment, and accompanying the claim should be an affidavit regarding the licensee's improper conduct, and proof of the court judgment.
ARE NOT REQUIRED to be disclosed:
--If the property was the site of an accident which DID NOT affect the physical structure or environment --If a homicide, suicide, or felony occurred on the site --**If an occupant is/was affected with HIV (in fact, IF information regarding an HIV-infected individual IS disclosed, the licensee could face Fair Housing Law and Federal Privacy Act violations!)
repairs will correct said violation?
--Landlord may correct it and charge the tenant the cost of said repair. This must be done within 14 days of written notice, unless an emergency exists, in which case it should be done as soon as possible
Brokerage relationships began when the licensee is engaged by the client. The relationship is considered terminated:
--Once the brokerage relationship agreement is completed --Upon the date of expiration mandated in the brokerage agreement --When it's mutually decided to terminate the relationship --When any part defaults under the terms of the relationship --If/when a client refuses to agree to disclosed dual representation --WHICHEVER of these is EARLIEST
According to Virginia law, the licensee is expected to
--Perform under the terms of the brokerage relationship --Seek a sale at the price and terms established in the brokerage relationship, or at another price/terms acceptable to the seller --Present all written offers and counteroffers IN A TIMELY MANNER, even after the property has been placed under contract --Disclose to the seller all material facts to which the licensee has actual knowledge, related either to the property or the transaction itself --Account in a timely manner for all money and/or property received in which the seller could have an interest --Maintain confidentiality of all personal and/or financial information received from the client during the brokerage relationship (this includes any information the client specified as "confidential"), unless the client provides a written consent for the release of information, OR the information is court-ordered to be released. --Exercise ordinary care --Comply with all applicable laws, including Fair Housing Statutes and Regulations
Mechanic's Lien Notice
--Required to be included in the sales contract --labor or furnishing materials in connection with the property within 120 days prior to settlement have been paid in full or to provide the name, address, and amount claimed by each person performing labor or furnishing materials. --not later than the earlier of 90 days from the last day of the month in which the lienor last performed work or furnished materials or 90 days from the time the construction, removal, repair or improvement is terminated
In advertising or marketing a time share interest that might include free prizes, the following must be CLEARLY disclosed:
--Retail value of the gift --Condition under which the gift is being offered --Odds of winning a prize (if one is offered) --The expiration date of the offer --A statement clearly telling the consumer that the offer is being made for the purpose of soliciting the purchase of time-shares --The organization responsible for the management of a time share operation is known as the Time Share Owners Association.
The Virginia Real Estate Board also
--Sets standards for licensure and conduct --Administers and enforces license laws --Issues, renews, or denies renewal of real estate licenses --Suspends and revokes real estate licenses --Establishes license fees and the requirements for real estate licenses --Approves schools to teach broker/salespeople courses in real estate --Develops criteria for evaluating and approving continuing education course credits and for awarding credit hours for such courses --Enforces fines for license law or regulation violations --Develops and distributes an association annual report form for use --Develops a residential property disclaimer statement form and a residential property disclosure statement form for use --Waives educational or experience requirements when the broker/salesperson has an equivalent of that requirement
Any advertising must be done:
--Under the supervision of the principal broker or supervising broker --In the name of the firm --To ensure that the name under which the broker does business and the manner in which the broker advertises shall not imply that the property listed or marketed by the broker for others is "for sale by owner" --MUST disclose broker or salesperson status, and the brokerage name MUST be clearly displayed in ALL advertising of any type. Advertisements may NOT be published with only P.O. box, phone number, or street address.
Renew after Expiration
--Within 30 days, if the licensee pays the normal renewal fee and has completed the necessary continuing education. --From the 31st day to one year, if the licensee pays a reinstatement fee, and completes the necessary continuing education, the licensee may practice real estate once the license is reinstated. (The reinstatement fee is a flat fee, and NOT in addition to the regular renewal fees.) --If the license remains expired after 12 months, the license MAY NOT!! be reinstated, for any reason. The former licensee must become a new applicant, taking the necessary educational requirements and examinations.
Va condo Act Rules.
--declarant must pay assessments on unsold condominium units. --The declarant, its predecessors or principal officer must undergo a debtor's relief proceeding. --The condo must be governed by a unit owners' association. --The declarant will retain control of the unit owners' association for an initial period. Some unit owners' association decisions will be made by an executive organ. --The unit owners must pay the expenses of operating the unit owners' association on the basis of a periodic budget. --Each unit owner must pay a periodic assessment, which cannot be reduced by the owner's refraining from use of the common elements. --If the unit owner fails to pay this assessment when due, the unit owners' association will have a lien against his condominium unit. He may also face other penalties. --The regular operations of the unit owners' association will be taken care of by the managing agent, who is related to the declarant, director or officer of the unit owners' association. --The declarant may rent unsold condominium units; however, the right of any unit owner to rent his unit may be subject to restrictions. --The declarant may expand or contract the condominium or convert convertible land or space without the consent of any unit owner. --The unit owner's right to resell his condominium unit is subject to restrictions. --All condo units are restricted to residential use ONLY. --The unit owner may not alter the structure of his unit or modify the exterior of his unit without the approval of the declarant or unit owners' association. --The unit owners' association will obtain certain insurance benefiting the unit owner, but the unit owner should obtain other insurance on his own. --The unit owner will pay real estate taxes on his condominium unit. --Marketing and sale of condominium units must be pursued in accord with the Virginia Fair Housing Law and the Virginia Condominium Act. --A Public Offering Statements or POS, must be provided by the declarant with any contract for the initial sale of a condominium. --The initial purchaser of the condo has ten DAYS to rescind the contract WITHOUT REASON, and WITHOUT PENALTY, and this 1 ten-day period begins on the date the contract is ratified, or the POS is received, whichever is later.
Every Individual, partnership, association, limited liability company, or corporation acting as a real estate broker may...
--display signage on the outside of each place of business maintained in Virginia for the purpose of working as a real estate broker **sign shall state the name of such individual, partnership, association, limited liability company, or corporation, as set forth in the license issued by the board **sign must also contain the words "real estate," "realty" or other words or phrases designating a member of an association of real estate brokers
Virginia Real Estate Cooperative Act
--governs the corporations or associations formed by cooperatives. A cooperative is an apartment building or group of dwellings owned by a corporation; the stockholders are the residents of the structure(s). Each stockholder has an exclusive right to use his/her individual unit and must pay his portion of the debt for the entire building.
Eviction
--if full payment of rent has not been made within 5 days, the landlord may file a suit to have the tenant evicted from the property. REMEMBER that this does NOT give the landlord the right to remove or keep the tenant from the property ****UNTIL THE COURT takes eviction action on the matter.
Under the Virginia Residential Landlord and Tenant Act:
--if rental agreement is NOT made the fee must be refunded within ten days --paid by check, the refund must be made within 20 days. --landlord may withhold a $32 application fee to compensate for the cost of the paperwork --
Failure, as principal broker, to report to the board within three business days results..
--instances where the principal broker reasonably believes the improper conduct of a licensee has caused noncompliance of maintaining the escrow fund balance at all times.
Tenant violates the lease or in some way violates the law in Virginia
--landlord will notify him of such in writing -- given 21 days to correct this violation --not corrected, the lease will terminate after 30 days --
Escrow
--money placed into a trust by a third party to be turned over to a grantee upon fulfillment of a contract. **held until the terms of the escrow instructions have been met --sufficient at ALL times
VA Condo Act
--name of the condo --legal description of the property --plats and/or plans which specify each unit within the boundaries of the property --EXACT description of each unit's boundaries --desc. common elements and limited common elements --specific provisions of the interest in the common elements --names of current lessees --details regarding any easements or proposed alterations.
main office?
--principal broker must have the firm license, the principal broker license and the license of every salesperson and broker associated with or employed by the entity or firm. --licenses must be displayed together --change of business name or location within 30 calendar days of the change of name or location. The board will then reissue the licenses for the unexpired period.
Virginia Residential Landlord and Tenant Act
--protection for landlords' and tenants' rights in Virginia, with regard to rental agreements. --All apartments are covered under this act. --if governed by either a county executive or a county manager, the total number of rental units cannot be more than four. **his only applies to those who are natural persons, but does not apply to corporations.
Virginia Property Owners' Association Act
--provides a set of rules and regulations for a group of property owners linked together by the development in which they reside. The act states that if any one lot in the development is subject to the provisions of the act, then every lot is also subject.
civil action is taken by the attorney general, the following may be court-ordered:
--temporary or permanent injunction preventative relief against the respondent to refrain from discriminatory practices --Award other relief as the court sees fit, such as compensatory or punitive damages --Award the complainant attorney fees and costs, within reason --Award civil penalties of up to $50,000 FOR THE FIRST VIOLATION --Award up to $100,000 for any SUBSEQUENT VIOLATIONS
If the landlord does not correct the violation?
--tenant still decides to remain living on the property, the tenant must still make rental payments!! **.HOWEVER, these payments should be deposited with the GENERAL DISTRICT COURT!!! ***If the tenant decides to terminate the lease, he should also file a claim with the General District Court.
rental agreement IS reached but the tenant does not live in the property? then..
--the landlord may withhold either all of the fee, or a portion of the fee paid to compensate for the paperwork or related costs
withdraw money from an escrow or property management escrow account?
--unless sufficient money is on deposit in that account to the credit of the individual client or property involved. --State Law requires that the balance in the escrow must be sufficient at ALL times to account for all funds that are designated to be held by the firm.
Virginia Non-Stock Corporations Act
Time Share --may cancel the purchase contract for seven calendar days after execution -- Payments made by the buyer before the cancellation must be refunded within 45 days
Virginia Real Estate Transaction Recovery Fund
only pays ACTUAL losses and not interest or punitive damages --"improper or dishonest conduct" means "only the wrongful and fraudulent taking or conversion of money, property or other things of value or material misrepresentation or deceit." **fund is overseen by the Director of the DPOR **new licensee must pay $20 **minimum balance is $400,000. **if the Fund balance is higher than $2,000,000, the funds over that amount will be transferred into the Virginia Housing Partnership Fund. **falls below $400,000, the board may determine that all licensees **If an assessment is needed, the licensee will be notified by mail, and must send payment within 45 days **Those who do not pay will be sent another notice and be allowed 30 more days to pay. If payment is not made by the end of this time, the licensee's license will be AUTOMATICALLY SUSPENDED!--------------------- **A single claim is limited to $20,000.00 **Multiple claims involving one regulant are limited to $50,000.00 per year **Multiple claims involving one regulant may not exceed $100,000.00 per two-year period, **claims involving one regulant, payment of claims will be delayed for a maximum of one year
Court-ordered transfers
order to settle an estate, handle a foreclosure, process a writ of execution, or handle eminent domain
owner is not required
provide any independent inspection of the property in order to make the disclosures required by this regulation.
