chapter 8
RENEWAL OF LICENSE
*expire every 2 yrs. on the last day of the month in which the license was issued (renewal applies to active and inactive) *application (renewal ) form and fees MUST BE RECEIVED by the REB before the expiration date appearing on the license. Licensee does not renew license prior to expiration date MUST apply for REINSTATEMENT (must have completed continuing education hours) NO PENALTY if received with 30 days of expiration. From 31st day to one year subject to current reinstatement fee. AFTER 12 MONTH reinstatement is not possible under any circumstances and they have to apply for licensure as a new applicant.
CIC Board (Community Interest Community) administers:
VA condo act VA Time Share Act VA Cooperative Act VA Property Owners' Association
ONLINE advertising disclosure
include the name of the FIRM, the city and state where the firm's MAIN office is located, and the JURISDICTION in which the firm holds a license; in the case of advertising by a LICENSEE, the name of the licensee, the name of the firm, the city ad state where the LICENSEE'S OFFICE IS LOCATED, and the jurisdiction in which the licensee holds a license must be clearly visible.
REFERRAL AGENT
is a real estate licensee who DOES NOT engage in real estate activities such as listing and selling property. They refer prospective buyers and sellers to the broker with whom affiliated and if a sale results they receive a referral fee. Their license maintained in the referral office or main office. The REB considers the referral agent to be active not inactive and is required to complete the 16 hr. continuing education with the 2-yr. licensing cycle. Usually not members of a Realtor association.
INACTIVE LICENSEE
licensee not affiliated with or employed by a broker and may not engage in acts of brokerage or earn compesation, including referral fees. The license is maintained by the REB
Who can hold earnest money
if broker must maintain an escrow account, though money can be held by settlement agent, attorney, or even a seller. This is a matter to be negotiated in the sales contract.
Operating without a license - REB may
impose CIVIL PENALTY up to $1,000 for each transaction or for the commission whichever is higher REB may refer to the COMMONWEALTH ATTORNEY: Class 1 misdemeanor - penalty up to $l,000 per violation Class 6 felony - 3rd subsequent violation within a 3 year period - civil penalties cannot exceed $10,000 per year
REB can do the following:
issue real estate licenses enforce license law take disciplinary action for violations of license law or rules and regulations by: suspending, or revoking a license, levying fines, or denying license renewal establishing requirements for real estate licensing approving schools for teaching authorized courses for real estate brokers and salespersons; determining license fees waiving all or part of the prelicensing requirements if an applicant for licensure is currently licensed in another state or D.C.
Applicant for Broker:
*actively engaged as a real estate salesperson for 36 of the previous 48 months (ACTIVELY ENGAGED means an average of 40 hours per week) - (3 of the last 4 years) *completed 12 classroom or correspondence semester credit hours (4 45 hours courses or 180 classroom hours) of study approved by the REB in subjects as brokerage, see pg 122. Must complete the 45-hour brokerage course
LICENSEE HAS ACTIVE LICENSE WHEN:
*affiliated with or employed by a broker *broker certifies license application *broker agrees to be responsible for the licensee's activities
POST LICENSING EDUCATION (PL or PLE) (1ST YEAR)
1st year licensee must complete 30-hour post-license education curriculum with one year of obtaining salesperson license, if do not complete automatically put on inactive status
CONTINUING EDUCATION FOR LICENSEES
Continuing Education (CE or CED) proscribed by the REB as that education required to obtain the SECOND and all subsequent renewals of a real estate license. 16 hours during each licensing term for salespersons and 24 hours for brokers. Active duty military must complete their educational requirements within 6 months of their release. *course or courses must be provided by an accredited university, college, community college, or other accredited institution of higher learning or other entity approved by the REB *8 of the 16 hours must include the subjects of ethics and standards of conduct, fair housing (2 hours), legal updates and emerging trends, real estate agency, and real estate contracts. The remaining 8 hours shall be on other approved subjects. See page 127 in state book. **Due to changes in VA Agency Law under HB 1907 the REB required to approve a 3 hours continuing education program which will be a prerequisite for renewal or reinstatement of an active broker or salesperson after July 1, 2012.
DPOR
Department of Professional and Occupational Regulation
VA Real Estate Transaction Recovery Fund
Important part for a licensee is that payment from the fund causes the licensee's license to be immediately revoked. The licensee may also be subject to other disciplinary action by the REB. The licensee cannot apply for a new license until fund has been repaid in full, plus interest at the judgment rate of interest from the date of payment from the fund. Repayment to the fund does not guarantee that the license will be issued and the REB can take disciplinary action.
Retaining proof of continuing education
Licensees must retain proof of continuing education for 3 years and the schools must maintain records for 5 years
BRANCH OFFICE LICESURE LOCATED WHERE
MAINTAINED AT THE BRANCH OFFICE
LICENSEE change of name or address
MUST inform the REB of these changes within 30 days
LICENSEE'S LICENSE (all licensees' licenses) located where:
Principal Broker responsible for maintaining the license of every salesperson or broker at the main office of the firm. **The license of an inactive licensee is maintained by the REB.
Transfer or termination of Active Status
Principal broker must sign and note the date of termination on the license and return to the REB certified mail and it must be received within 10 days of the date of termination or status change IF THE PRINCIPAL BROKER is discharged or terminates active status, the firm MUST notify the REB and return license by certified mail within 3 BUSINESS DAYS.
IMPROPER RECORD KEEPING
See page 134 failure of the principal broker to report to the REB within 3 BUSINESS DAYS of any circumstance where it is believe that the improper conduct of a licensee has caused an insufficient balance in an escrow account.
LICENSEE HAS ACTIVE STATUS WHEN:
after the REB approves application - license issued and sent to the principal broker and then licensee receives a pocket card
REB does not do the following
arbitrate disputes between salespersons and brokers become involved in disputes between brokers establish commission rates or commission splits standardize listing agreements, sales contracts, or many other forms used in the industry; **The REB could become involved in any of these matters in case of a violation of the license law or the rules and regulations
Requirements for Licensure
at least 18 yrs. old; min. high school diploma; be in good standing in every jurisdiction where licensed; have a good reputation for honesty; truthfulness, and fair dealing; safequard the public interest; not been found guilty of violating the fair housing laws of Virginia or any other jurisdiction, See pg. 121
Applicant for Licensure
must have completed 4 semester credit hours or a minimum of 60 classroom, correspondence or other distance learning; if pass must apply for licensure within 12 months
CONSENT TO SUITS AND SERVICES
non residents licensees is that they file an irrevocable "consent to suits and services". This is a binding legal agreement that allows the Director of the DPOR to accept service of any legal process or pleading on the nonresident licensee's behalf.
Institutional Advertising
refers to advertising where no specific real property is identified (ex. an ad placed by real estate firm to solicit new agents.
Brokers - concurrent licenses
yes they can have concurrent licenses (concurrent license does not refer to persons holding licenses in multiple states)
When should money be deposited into an escrow account and other escrow account information
Must be deposited by the fifth (5) business banking day following ratification of the sales contract, or receipt of lease. Each escrow account opened and maintained in a federally insured depository in Virginia. The account and all accompanying documents i.e. checks, deposit slips must be LABELLED "ESCROW" as part of the account name. This precludes attachment of the funds by the broker's creditors. Once money deposited in escrow account CANNOT be removed until transaction is consummated unless agreed to in writing. Also, no legal requirement that escrow funds be held in an interest-bearing account. Escrow account records must be maintained for 3 years from the date of consummation or termination of transaction.
Broker disbursal options of escrow money
broker distributed funds according to terms of contract: first give WRITTEN notice to principal not receiving the funds. Notice may be hand-delivered or by certified mail with return receipt requested, stating that "Payment will be made unless a written protest is received within 30 days of delivery of the notice". **If payment is to be made within 90 days of the date of "nonconsummation" of the contract, notice may be sent by receiptable e-mail or facsimile, if such information is provided in the contract.
DEATH or DISABILITY
sole proprietor or the only broker in a firm dies - REB may authorize an unlicensed individual to conclude the broker's business. This person could be an adult member of the broker's family, an employee of the broker or some other suitable person. This person can act only to conclude the business of the broker and may act in this capacity for no longer than 180 days (6 months). Two things happen by operation of law: 1) All listings are terminated 2) The licenses of any licensees active with the broker or firm must be returned to the REB because there is no longer a broker to be responsible for licensees, who are not allowed to operate in their own names. IF the principal broker of a LARGE real estate firm dies, the officers of the firm designate a new principal broker and immediately file the appropriate form with REB naming the new principal broker.
Real Estate Board - describe Board
9 members: 7 brokers/salespersons; 2 citizens (consumer) brokers/salesperson at least 5 yrs.consecutive years experience immediately prior to appointment; Term 4 yrs. appointed by Governor
REB Board (Real Estate Board) administers:
VA Fair Housing Act VA Real Estate Transaction Recovery Fund
