VA license law final exam
The Virginia Real Estate Board is NOT the same as the
"Virginia Association of Realtors" (VAR) or any local Association of Realtors
Designated representatives allow the brokerage firms to handle their transactions at their own place of business and represent both parties in the deal. "Dual agent" or "dual representative" is defined in Virginia law as
"a licensee who has a brokerage relationship with both seller and buyer, or both landlord and tenant, in the same real estate transaction." A licensee is allowed to act as a dual representative ONLY WITH THE WRITTEN CONSENT of all clients to the transaction. The dual representative 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.
As defined in the Virginia law, a common source information company is
"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."
According to Virginia law, an agency is
"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."
Board member terms are
4 years long
A brokerage relationship MUST have a specific date of termination. If it does not, the relationship will automatically terminate
90 days after it was begun.
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.
Then, 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 A
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.
The balance in the escrow accounts shall be sufficient at all times to account for all funds that are designated to be held by the firm or sole proprietor.
The supervising broker and any other licensee with escrow account authority may be held responsible for these accounts.
The Virginia Residential Landlord and Tenant Act is designed as
a protection for landlords' and tenants' rights in Virginia, with regard to rental agreements.
Funds cannot be taken from an escrow account until a transaction is consummated, unless otherwise
agreed upon by ALL principals in the transaction.
According to Virginia law, a complete record of 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
Salespersons' and brokers' licenses must be renewed
every two years by the last day of the month during which the license was issued.
All fees paid are
nonrefundable
Remember, the license always hangs in
the MAIN OFFICE of the broker, even in the case of a licensee working in a separate branch office.
Educationally, The Virginia Real Estate Board currently requires anyone wishing to obtain a real estate license
to complete and pass a state-approved 60-hour course on the principles of real estate. After this, the individual must take AND PASS the state examination. If he has passed the exam, he has 12 months to apply for a license. Past this time, he must retake and pass the exam again in order to then apply for his license.
In the main office, the 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. These licenses must be displayed
together, and in such a way that the public can easily see the names of the licensees.
Upon the death or disability of a licensed real estate broker who was engaged in a proprietorship or who was the only licensed broker in a corporation or partnership, the estate, an adult family member, or an 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.
Broker license educational criteria require
180 hours of board-approved real estate study. These courses will include real estate law and brokerage, as well as real estate finance, appraisal, and other related topics.
A written notice, accompanied by all the current licenses, must be given to the board in the event of any 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.
All broker applicants must have served as real estate salesperson for
36 of the previous 48 months before applying for a broker's license.
Under the Virginia Residential Landlord and Tenant Act:
A 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. Most leases have "automatic renewal" clauses, stating that the 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. Any changes to a lease at the time of renewal - specifically rent increases - must be agreed to by the tenant in writing. Failure to agree will be taken as a notice to vacate the property. If the tenant is allowed, within the lease, to sublease, the sub-lessee must be approved by the landlord within ten days of written notice. If there is no contact from the landlord within this time, this is taken as "no news is good news," and the lessee can be considered approved. 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.
Every 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.
Continuing education; relicensure of brokers and salespersons.
A. Board regulations shall include educational requirements as a condition for relicensure of brokers and salespersons to whom active licenses have been issued by the Board beyond those now specified by law as conditions for licensure. 1. Brokers to whom active licenses have been issued by the Board shall be required to satisfactorily complete courses of not less than 24 hours of classroom or correspondence or other distance learning instruction during each licensing term. Of the total 24 hours, the curriculum shall consist of: a. A minimum of eight required hours to include at least three hours of ethics and standards of conduct, two hours of fair housing, and the remaining three hours of legal updates and emerging trends, flood hazard areas and the National Flood Insurance Program, real estate agency, and real estate contracts; b. (Effective January 1, 2019) A minimum of eight hours of courses relating to supervision and management of real estate agents and the management of real estate brokerage firms as are approved by the Board, two hours of which shall include an overview of the broker supervision requirements under this chapter and the Board regulations; and c. Eight hours of general elective courses as are approved by the Board. The Board may, on a year-by-year basis, adjust the required hours and course topics specified in this subdivision for the next succeeding year, applicable to a licensee in the next renewal period for his license, including the addition of topics deemed by the Board to be essential. Such designation or adjustment by the Board shall be made prior to September 1 of any given calendar year. The action of the Board in making such adjustment shall be subject to § 2.2-4012.1. The fair housing requirements shall include an update on current cases and administrative decisions under fair housing laws. If the licensee submits a notarized affidavit to the Board that certifies that he does not practice residential real estate and shall not do so during the licensing term, training in fair housing shall not be required; instead, such licensee shall receive training in other applicable federal and state discrimination laws and regulations. 2. Salespersons to whom active licenses have been issued by the Board shall be required to satisfactorily complete courses of not less than 16 hours of classroom or correspondence or other distance learning instruction during each licensing term. Of the total 16 hours, the curriculum shall consist of: A minimum of eight required hours to include at least three hours of ethics and standards of conduct, two hours of fair housing, and the remaining three hours of legal updates and emerging trends, real estate agency, real estate contracts, and flood hazard areas and the National Flood Insurance Program; and b. Eight hours of general elective courses as are approved by the Board. The Board may, on a year-by-year basis, readjust the required hours and course topics specified in this subdivision for the next succeeding year, applicable to a licensee in the next renewal period for his license, including the addition of topics deemed by the Board to be essential. Such designation or adjustment by the Board shall be made prior to September 1 of any given calendar year. The action of the Board in making such adjustment shall be subject to § 2.2-4012.1. 3. The Board shall approve a continuing education curriculum of not less than three hours, and as of July 1, 2012, every applicant for relicensure as an active broker or salesperson shall complete at a minimum one three-hour continuing education course on the changes to residential standard agency effective as of July 1, 2011, to Article 3 (§ 54.1-2130 et seq.) prior to renewal or reinstatement of his license. If the licensee submits a notarized affidavit to the Board that certifies that he does not practice residential real estate and shall not do so during the licensing term, training in residential representation shall not be required. A licensee who takes one three-hour continuing education class on residential representation shall satisfy the requirements for continuing education and may, but shall not be required to, take any further continuing education on residential standard agency. The fair housing requirements shall include an update on current cases and administrative decisions under fair housing laws. If the licensee submits a notarized affidavit to the Board that certifies that he does not practice residential real estate and shall not do so during the licensing term, training in fair housing shall not be required; instead, such licensee shall receive training in other applicable federal and state discrimination laws and regulations. 4. For correspondence and other distance learning instruction offered by an approved provider, the Board shall establish the appropriate testing procedures to verify completion of the course and require the licensee to file a notarized affidavit certifying compliance with the course requirements. The Board may establish procedures to ensure the quality of the courses. The Board shall not require testing for continuing education courses completed through classroom instruction. B. Every applicant for relicensure as an active salesperson or broker shall complete the continuing education requirements prior to each renewal or reinstatement of his license. The continuing education requirement shall also apply to inactive licensees who make application for an active license. Notwithstanding this requirement, military personnel called to active duty in the armed forces of the United States may complete the required continuing education within six months of their release from active duty. C. The Board shall establish procedures for the carryover of continuing education credits completed by licensees from the licensee's current license period to the licensee's next renewal period. D. The Board may grant exemptions or waive or reduce the number of continuing education hours required in cases of certified illness or undue hardship as demonstrated to the Board.
Improper maintenance of escrow funds include:
Accepting any note, nonnegotiable instrument, or anything of value not readily negotiable, as a deposit on a contract, offer to purchase, or lease, without acknowledging its acceptance in an agreement. Commingling 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. Failure to deposit funds in an account or accounts designated to receive only such funds as required by 18 VAC 135-20-180.A-1. Failure to have sufficient balances in an escrow account or accounts at all times for funds that are designated to be held by the firm as required in Chapter 18 VAC 135-20-180. Failure, as principal broker, to report to the board within three business days, 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.
Here are some other license-related facts:
All 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
If there was a prior misdemeanor involving moral turpitude, sexual offense, drug distribution, physical injury or any felony, the license applicant must submit:
An official FBI record State police criminal record Relevant certified copies of all court records A written explanation of his part in the offense, including the current status and final resolution of the offense
The 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 following include cases in which a person does not need to have a real estate license:
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)
Current Virginia laws require that anyone wishing to become licensed as a real estate salesperson or broker in the state of Virginia meet the following criteria. The individual must:
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.)
Every corporation, LLC, association, or non-broker owner sole proprietorship must have a Virginia real estate firm license for its firm before transacting real estate business. This 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
Once a 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.
Brokers are NOT required to maintain escrow accounts. If they do NOT, then this regulation does not apply to them. In the event that they do 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
If a rental payment is past due, the landlord may issue one of the following:
Five-Day Pay-Or-Quit Notice, in which the tenant is given written notice to pay the rent within five days, or leave the property Unlawful Detainer Warrant, in which the tenant is still obligated to pay rent, but the landlord may begin eviction proceedings Eviction, in which if the 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.
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
According to Virginia laws, 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.
If displayed, the 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 The sign must also contain the words "real estate," "realty" or other words or phrases designating a member of an association of real estate brokers
Anyone involved in real estate brokerage dealings in Virginia MUST have a license issued by the Virginia board, whether or not this person is licensed elsewhere. If the person is licensed elsewhere as a salesperson or broker, the board does have the authority to waive PART of the pre-licensing requirements. However, this is only possible if the person:
Is at least 18 years old Has 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
There is no automatic renewal of real estate licenses.
It is the responsibility of the LICENSEE to renew her license, although the real estate board will send a renewal notice via mail, to the licensee, to her last known home address.
Under the Virginia Residential Landlord and Tenant Act:
Landlords ARE allowed to charge an application fee to a prospective tenant However, if a rental agreement is NOT made the fee must be refunded within ten days, unless paid by check. If paid by check, the refund must be made within 20 days. The landlord may withhold a $32 application fee to compensate for the cost of the paperwork If a rental agreement IS reached, but the tenant does not live in the property, the landlord may withhold either all of the fee, or a portion of the fee paid to compensate for the paperwork or related costs The landlord can require that a security deposit, to protect against non-payment for rent or damage made to the property by the tenant, be paid when the property is leased The security deposit may not be more than two months' rent A security deposit must be returned to the tenant within 45 days of vacating the premises If a portion of the deposit is withheld, the landlord must give the tenant a written, itemized list of the charges The final inspection of the property must be held within 72 hours of the tenant vacating the property
Escrow records -
MUST BE kept for three YEARS from the date of closing or ratification, if the 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.
Disclosure is necessary in regard to brokerage relationships. A licensee must disclose IN WRITING any broker relationship the licensee has with another party to the transaction. The disclosure must have happened, definitely, prior to the time at which specific real estate assistance is first given. This disclosure:
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.
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
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:
People Organizations LLCs (Limited Liability Corporations) Partnerships Associations Sole proprietorships which are not owned by a broker Principal brokers, associate brokers, and salespeople are issued individual licenses.
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
Fair Housing Under NO circumstances must a real estate licensee or others, even indirectly associated with real estate practices, 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
Application fees are as follows:
Salesperson by education and examination $150 Salesperson by reciprocity $150 Individual license - business entity $190 Broker by education and examination $190 Broker by reciprocity $190 Broker concurrent license $140 Firm license $250 Branch office license $190 Transfer application $60 Activate application $60 Bad check penalty $25
In other words, anyone who performs any of the following, for another person or entity, must have a real estate license in Virginia:
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 Performing one of the preceding acts even ONE TIME requires a real estate license in Virginia.
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
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
Educational requirements for all salespersons within one year of licensure
The Board shall establish guidelines for a post-license educational curriculum of at least 30 hours of classroom, or correspondence or other distance learning, instruction, in specified areas, which shall be required of all salespersons within the initial year of licensure. Failure of a new licensee to complete the 30-hour post-licensure curriculum within one year from the last day of the month in which his license was issued shall result in the license being placed on inactive status by the Board until the curriculum has been completed.
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
In the event a transaction is NOT consummated:
The principal broker or supervising broker will hold funds in escrow until all principals to the transaction have agreed in writing as to their disposition or a court of competent jurisdiction orders such disbursement of the funds. Or the broker can pay the funds to the principal to the transaction who is entitled to receive them in accordance with the clear and explicit terms of the contract which established the deposit. In the latter event, prior to disbursement, the broker shall give written notice to the principal to the transaction not to receive the deposit by either; hand delivery receipted for by the addressee, by certified mail return receipt requested with a copy to the other party that this payment will be made unless a written protest from that principal to the transaction is received by the broker within 30 days of the hand delivery or mailing, as appropriate of that notice. If the notice is sent within 90 days of the date of non-consummation, the broker may send the notice by receipt-able email or facsimile if such email address or facsimile information is stated in the contract or otherwise provided by the recipient.
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"
If the license is not renewed before the expiration date, the license is then EXPIRED. An expired license can be reinstated in two ways:
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.
A licensee representing a buyer or tenant cannot be said to have a brokerage relationship with
a seller, landlord or other licensee simply because of using a common source information company, according to Virginia real estate law.
A sole proprietor brokerage does NOT require
a separate firm license.
If the Virginia license applicant has had a license suspended or revoked in any jurisdiction because of association with disciplinary action, then
a very detailed explanation of the event/circumstances must be included with his license application.
A new license applicant may have his license issued as either
active or inactive
If the owner is selling his own property, he must clearly disclose that he is licensed in
ads, including both newspaper advertisements and signage on the property itself.
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, according to Virginia law. All institutional advertising must clearly state that the service being advertised is a REAL ESTATE BROKERAGE, and that each 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
Once a brokerage relationship is complete, the licensee 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.
Commingling is
an illegal activity in which a Virginia real estate licensee mixes earnest money with his own money.
Conversion, an even greater violation, is
an illegal activity in which the Virginia real estate licensee takes the money or property of others.
Unless it is otherwise agreed in writing by the principals to the lease, a licensee is not entitled to
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. The security deposit cannot be taken from an escrow account required by the lease without the written consent of the tenant.
The Board adopts a seal to use in
authenticating its acts
ALL advertisements 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.
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.
Another form of license is the
business entity salesperson license, under which 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. A business entity which is licensed as a salesperson 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.
Another type of license is a
concurrent license. This is a type of license issued to brokers active in more than one real estate firm or business. Salespeople are NOT allowed to have concurrent licenses. 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.
The payment or promise of payment or compensation to a real estate broker does NOT
create a brokerage relationship between any broker, seller, landlord, buyer or tenant.
If money is to be held in escrow, each firm or company shall maintain in the name by which it is licensed one or more federally insured separate escrow accounts in a federally insured depository in Virginia into which all
down payments, earnest money deposits, money received upon final settlement, rental payments, rental security deposits, money advanced by a buyer or seller for the payment of expenses in connection with the closing of real estate transactions, money advanced by the broker's client or expended on behalf of the client, or other escrow funds received by him or his associated on behalf of his client or any person shall be deposited unless all the principals to the transaction have agreed otherwise in writing.
In order to receive a Virginia license, Virginia non-residents who are not licensed in another jurisdiction must meet the same requirements as the residents of Virginia. They must also
file an irrevocable consent to suits and services, and agree to allow the Director of the DPOR to accept service of any legal process on the licensee's behalf.
In the case of a check returned because of insufficient funds, the 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(s).
The chairman is chosen from
its membership
Escrow is
money placed into a trust by a third party to be turned over to a grantee upon fulfillment of a contract. In this case, it is in reference to the process through which money and/or documents are held until the terms of the escrow instructions have been met. State law requires that the balance in the escrow accounts must be sufficient at ALL times to account for all the funds that are designated to be held by the firm.
Under the Virginia Residential Landlord and Tenant Act, if the rental property is in an area governed by either a county executive or a county manager, the total number of rental units cannot be
more than four. This only applies to those who are natural persons, but does not apply to corporations.
All apartments are covered under The Virginia Residential Landlord and Tenant Act. However, the following are not covered:
non-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).
Any broker with more than one real estate office in Virginia must designate one of their offices as the "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.
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.
An active license
one in which the 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.
Incidental closing expenses (e.g., 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.
Funds cannot be taken from an escrow account until a transaction is consummated, unless
otherwise agreed upon by ALL principals in the transaction. IF the transaction is NOT consummated, the funds will remain in escrow.
The Virginia Real Estate Board regulates businesses and individuals representing others in
real property transactions including condominiums, cooperatives, and time-shares.
No 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.
The Virginia Real Estate Board has nine members including
seven members who have been licensed real estate brokers or salespersons for at least five consecutive years before their appointment and two citizen members.
A licensee may not 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.
All active and inactive licensees must, by law, pay their fees to the Department to renew their licenses; ONLY ACTIVE licensees must
take the continuing education before they renew the licenses.
These disclosures are NOT necessary in
telephone communications, on signs at the property, in ads for a specific property (if the ad has less than 28 standard ad lines) or in a single, one-column phone directory ad.
The employee may NOT negotiate
the amounts of such security deposits or rentals, or any leases on behalf of the owner or broker.
A 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.
Any person licensed as a broker or salesperson in Virginia may prepare written contracts for
the sale, purchase, option, exchange, or rental of real estate, unless there is a contradictory court ruling. This is allowed provided that the preparation of such contracts is incidental to a real estate transaction in which the licensee is involved and does not charge a separate fee for preparing the contracts.
In escrow accounts, the funds do not need to be held in an account bearing interest. However, if they are in such an account, a written disclosure in the contract of sale or lease at the time of contract or lease writing must disclose
the specifics of any interest earned
Prior to entering into a brokerage relationship, the licensee must disclose both
the type of brokerage relationship proposed by the broker, and the broker's compensation, and whether this broker will be sharing his salary with another broker who could have his own brokerage relationship with another person involved in the transaction.
Branch offices must display both
this branch office license and a list of every salesperson and broker assigned to this office.
The date the fees were received by the Virginia Real Estate Board (or one of its agents) will be used in determining
whether or not the fee was paid on time.
Acts of brokerage may ONLY be performed through the broker and NOT
with the salesperson or associate broker.
If the LANDLORD is violating the lease or the law in some way, the tenant may notify the landlord in
writing, and allow the landlord 30 days to correct this violation, unless it's an emergency. If the landlord does not correct the violation, and the 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.
If the tenant violates the lease or in some way violates the law in Virginia, the landlord will notify him of such in
writing. The tenant will be given 21 days to correct this violation. If it is not corrected, the lease will terminate after 30 days. If repairs will correct said violation, the 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.
A 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.
