§ 54.1-2105.04. Education Requirements; Reactivation of Licenses; Waiver +11Virginia · Real Estate · English

Licensees inactive for more than three years must meet remedial educational requirements. The Board may waive these requirements under specific conditions related to continued real estate knowledge or military service.

• ✓Board regulations require remedial education for salespersons/brokers inactive more than three years, meeting requirements in effect at time of reactivation
• ✓Waiver available if the license holder was engaged in an occupation retaining real estate knowledge during inactivity
• ✓Waiver available for armed forces members/spouses permanently assigned outside Virginia who remained current in real estate

The Board or its agent must verify identity before an applicant takes the state licensing examination.

• ✓Board or its agent shall require proof of identity prior to an applicant taking the state examination
• ✓Applies to all applicants regardless of prior licensure status

Applicants must have a good reputation for honesty, truthfulness, and fair dealing; be at least 18 years old; have a high school diploma or equivalent; meet educational requirements before examination; and be in good standing in all jurisdictions where licensed.

• ✓Applicant must be at least 18 years old
• ✓Applicant must have a high school diploma or equivalent
• ✓Applicant must have good reputation for honesty and fair dealing

Under § 54.1-204, each applicant must submit to fingerprinting and disclose all misdemeanor convictions involving moral turpitude, sexual offense, non-marijuana drug distribution, or physical injury within five years, and ALL felony convictions during their lifetime. A nolo contendere plea counts as a conviction.

• ✓Must disclose misdemeanors (specified types) within five years of application
• ✓Must disclose all felony convictions for lifetime
• ✓Nolo contendere plea is considered a conviction
• ✓Court record of conviction is prima facie evidence

The applicant must have passed a written examination provided by the board or its testing service within 12 months prior to submitting a complete application for a license, and must follow all examination conduct procedures.

• ✓Written exam must be passed within 12 months before complete application
• ✓Failure to follow exam conduct procedures may be grounds for denial

Every applicant must have a good reputation for honesty, truthfulness, and fair dealing; be competent to safeguard the public; be at least 18 years old; and have a high school diploma or its equivalent. The applicant must also meet current educational requirements before sitting for the exam.

• ✓Applicant must be at least 18 years old
• ✓Applicant must have a high school diploma or its equivalent
• ✓Applicant must have a good reputation for honesty, truthfulness, and fair dealing

An applicant must pass a written examination provided by the board or a testing service within 12 months prior to submitting a complete application for a license. Applicants must follow all procedures for exam conduct; failure may be grounds for denial.

• ✓Exam must be passed within 12 months before submitting a complete application
• ✓Failure to follow exam conduct procedures may be grounds for denial

Under § 54.1-204, each applicant must submit to fingerprinting and disclose all misdemeanor convictions involving moral turpitude, sexual offense, non-marijuana drug distribution, or physical injury within five years, plus all felony convictions during their lifetime. A nolo contendere plea counts as a conviction, and a court record is prima facie evidence.

• ✓Applicants must submit to fingerprinting under § 54.1-204
• ✓Disclose specified misdemeanor convictions within 5 years and all lifetime felonies
• ✓A plea of nolo contendere is treated as a conviction

The applicant must be in good standing as a licensed broker/salesperson in every jurisdiction where licensed and must not have had a license suspended, revoked, or surrendered in connection with disciplinary action. The applicant must comply with all board orders including paying penalties, costs, interest, and completing imposed education.

• ✓Applicant must be in good standing in all jurisdictions where licensed
• ✓Applicant must comply with all board orders including monetary penalties and imposed education

A licensee engaged by a tenant must perform per the brokerage agreement and promote the tenant's interests by seeking a lease at acceptable rent/terms, assisting in drafting/negotiating leases, letters of intent, and rental applications, timely presenting offers, and providing reasonable assistance to finalize the lease.

• ✓Seek a lease at rent and terms acceptable to the tenant
• ✓Present all written offers/counteroffers timely even when tenant is already under lease
• ✓Provide reasonable assistance to finalize the lease agreement

A tenant's licensee must perform per the brokerage agreement, seek a lease at acceptable rent/terms, assist with drafting/negotiating, maintain confidentiality, exercise ordinary care, account for money, and disclose material facts.

• ✓Must seek a lease at rent/terms acceptable to the tenant
• ✓Must present all written offers/counteroffers in a timely fashion even when tenant is already party to a lease
• ✓Must maintain confidentiality unless required by law or tenant consents in writing
• ✓Must disclose to prospective landlords honestly and disclose actual knowledge of defective drywall to the tenant
• ✓No written agreement required before showing properties to a prospective tenant

Licensees must treat prospective landlords honestly and not knowingly give false information. Actual knowledge of defective drywall (per § 36-156.1) in a residential property must be disclosed to the prospective tenant. The tenant's agent must maintain confidentiality, exercise ordinary care, and disclose material facts.

• ✓Treat prospective landlords honestly; no knowingly false information
• ✓Disclose actual knowledge of defective drywall to the prospective tenant
• ✓Maintain confidentiality unless required by law or tenant consents in writing

A tenant's agent may perform ministerial acts to assist a landlord without forming a brokerage relationship, and does not breach duty by showing properties to other tenants or representing landlords on other properties. No written agreement is required prior to showing properties to a prospective tenant.

• ✓Ministerial acts for a landlord do not form a brokerage relationship
• ✓No written agreement required before showing properties to a prospective tenant
• ✓Representing other tenants or landlords on other properties does not breach duty

Each place of business, branch office, and real estate team must be supervised by a supervising broker who exercises reasonable and adequate supervision of brokerage services. A broker may designate another to assist but remains responsible.

• ✓Every place of business, branch office, and real estate team must have a supervising broker
• ✓Designating another broker to assist does not relieve the supervising broker of responsibility for all licensees

Reasonable and adequate supervision includes availability to review/approve documents, providing training and written policies on escrow handling, fair housing, advertising, contracts, use of unlicensed individuals, agency relationships, regulatory updates, and property condition disclosures.

• ✓Supervising broker must be available to review and approve leases, contracts, brokerage agreements, and advertising
• ✓Training and written procedures must address escrow handling, fair housing, advertising, contracts, unlicensed individuals, agency, and disclosures

The supervising broker must ensure only licensees perform license-required activities: showing property, holding open houses, answering questions on listings/title/financing/contracts, discussing or negotiating contracts/leases with parties outside the firm, and negotiating commissions or fees.

• ✓Only licensees may show property, hold open houses, and answer questions on listings, financing, and contracts
• ✓Only licensees may discuss/negotiate contracts and negotiate commissions, splits, management, or referral fees

Unlicensed employees/assistants may perform clerical duties, submit MLS listings, follow up on loans, make keys, compute commission checks, place signs, act as courier, schedule appointments, record/deposit deposits, prepare forms/ads for approval, assemble closing documents, obtain public info, monitor files, and order routine repairs. They must be paid a predetermined rate not contingent on a transaction.

• ✓Unlicensed assistants may perform clerical, administrative, and support duties but nothing requiring a license
• ✓Unlicensed assistants must receive compensation at a predetermined rate not contingent on a real estate transaction

If a supervising broker is located more than 50 miles from the place of business or branch office where licensees regularly conduct business, the broker must certify compliance in writing quarterly on a board-provided form.

• ✓A supervising broker over 50 miles from the office must file a quarterly written compliance certification
• ✓The certification must be on a form provided by the board

The supervising broker must maintain required records for three years and furnish them to the board's agent upon request, ensure affiliated teams/entities operate in compliance, and ensure all brokerage agreements include the supervising broker's name and contact information.

• ✓Supervising broker must maintain required records for three years and produce them to the board's agent
• ✓All brokerage agreements must include the supervising broker's name and contact information

Each place of business, branch office, and real estate team must be supervised by a supervising broker who exercises reasonable and adequate supervision. Delegating to another broker does not relieve the supervising broker of responsibility. Factors include availability to review documents, training/written policies, and ensuring competent brokerage services.

• ✓Each office, branch, and team must have a supervising broker
• ✓Delegation does not relieve the supervising broker of responsibility
• ✓Supervising broker must ensure licensees hold active, current licenses

The supervising broker must ensure only licensees undertake activities requiring a license: showing property, holding open houses, answering questions on listings/financing/contracts, discussing/negotiating contracts and agreements with anyone outside the firm, and negotiating commissions or fees.

• ✓Only licensees may show property, hold open houses, and negotiate contracts
• ✓Only licensees may negotiate commissions, commission splits, or referral fees

Unlicensed employees/assistants may perform clerical duties, submit MLS listings/changes, follow up on loan commitments after ratification, have keys made, compute commission checks, place signs, schedule appointments, deposit earnest money, prepare forms for licensee approval, assemble closing documents, and receive predetermined non-transaction-contingent compensation.

• ✓Unlicensed assistants may do clerical and administrative support tasks
• ✓Unlicensed assistants must be paid a predetermined rate not contingent on a transaction
• ✓Unlicensed assistants may record and deposit earnest money and security deposits

If a supervising broker is located more than 50 miles from the place of business/branch and licensees regularly conduct business there, the supervising broker must certify quarterly in writing on a board form that they complied with supervision requirements. Records must be maintained for three years.

• ✓Supervising broker over 50 miles away must certify compliance quarterly
• ✓Supervision records must be maintained for three years

Licensees must have owner authorization to market or offer property and must properly identify their firm in advertising. Unauthorized listing or signage is improper dealing.

• ✓Cannot offer real property for sale or lease without knowledge and consent of the owner or authorized representative
• ✓Cannot offer property on terms other than those authorized by the owner
• ✓Cannot place a sign on property without the owner's or authorized representative's consent
• ✓All advertisements for sale, rent, or lease must include the name of the firm or sole proprietorship

Licensees must have owner consent before offering property or placing signs, and all advertisements must include the firm or sole proprietorship name.

• ✓Cannot offer property for sale/lease without owner's knowledge and consent or on unauthorized terms
• ✓Cannot place a sign on property without the owner's or authorized representative's consent
• ✓All advertisements for sale, rent, or lease must include the name of the firm or sole proprietorship

The Board must develop a residential property disclosure statement form and inform brokers about designating an agent in case of death or disability.

• ✓Board must develop a residential property disclosure statement form per the Virginia Residential Property Disclosure Act and maintain it on its website
• ✓Board must develop and maintain a one-page acknowledgment form signed by parties confirming the purchaser was advised of disclosures
• ✓Board must inform brokers of their ability to designate an agent under § 54.1-2109 in event of death or disability

Broker applicants must meet current educational requirements of § 54.1-2105 and must have been actively engaged as a real estate salesperson for 36 of the 48 months immediately preceding application. Experience must be verified by the principal or supervising broker. The experience requirement may be waived at board discretion.

• ✓Must be actively engaged as a salesperson for 36 of the preceding 48 months
• ✓Experience must be verified by the principal or supervising broker
• ✓Requirement may be waived at board discretion under § 54.1-2105

A broker applicant must meet the current educational requirements of § 54.1-2105 and must have been actively engaged as a real estate salesperson for 36 of the 48 months immediately preceding application. This experience requirement may be waived at board discretion. Experience must be verified by the principal or supervising broker for whom the licensee worked.

• ✓Broker applicants must have been actively engaged as a salesperson for 36 of the preceding 48 months
• ✓Experience must be verified by the principal or supervising broker
• ✓The experience requirement may be waived at board discretion under § 54.1-2105

Licensees must disclose material adverse facts, promptly present all offers, avoid bait-and-switch tactics, and never make false statements to lenders. Dual representatives must protect confidential information.

• ✓'Bait and switch' advertising with intent not to sell/rent at advertised terms is prohibited unless quantity/time limits are clearly stated
• ✓A seller's/landlord's standard agent must disclose to purchasers/tenants all known material adverse facts about the physical condition of the property
• ✓Must promptly tender to buyer and seller every written offer, counteroffer, and rejection
• ✓A dual representative shall not disclose confidential information from one client to the other client in the same dual representation
• ✓Knowingly making a false statement to influence a lender or any material misrepresentation is prohibited

Licensees must disclose material adverse facts, tender all offers promptly, and never make false statements. Dual representatives have special confidentiality duties overriding general disclosure requirements.

• ✓'Bait and switch' advertising with no intent to sell at advertised terms is prohibited unless quantity/time limits are clearly stated
• ✓A seller's/landlord's standard agent must timely disclose all known material adverse facts about the physical condition of the property to prospective buyers/tenants
• ✓Must promptly tender to buyer and seller every written offer, counteroffer, and rejection
• ✓A dual representative shall NOT disclose confidential transaction information obtained from one client to the other client
• ✓Knowingly making any material misrepresentation or false promise is prohibited

A licensee engaged to manage real estate must perform per the property management agreement, exercise ordinary care, timely disclose material facts about the property, maintain confidentiality, and account timely for all money/property in which the owner has an interest.

• ✓Perform in accordance with the property management agreement
• ✓Disclose material facts about the property of which agent has actual knowledge
• ✓Account timely for all money and property in which the owner has an interest

Residential property management agreements must be in writing and must have a definite termination date or duration (defaulting to 90 days after the date of the agreement if none specified), state the management fees and how/when paid, state the services rendered, and include other agreed terms. These requirements do not apply to commercial transactions.

• ✓Must be in writing with a definite termination date or duration; defaults to 90 days if unspecified
• ✓Must state management fees, payment terms, and services to be rendered
• ✓Provisions do not apply to commercial real estate transactions

A licensee engaged to manage real estate must perform per the property management agreement, exercise ordinary care, disclose material facts, maintain confidentiality, and account for money in a timely manner.

• ✓Must disclose material facts and defective drywall actually known concerning the property to the owner
• ✓Must maintain confidentiality and account in a timely manner for all money/property in which owner has interest
• ✓May represent other owners without breaching duty, except as provided in the management agreement
• ✓May represent the owner as seller/landlord only if the brokerage relationship so provides

Residential property management agreements must be in writing and contain specific required terms. These provisions do not apply to commercial transactions.

• ✓Must be in writing with a definite termination date or duration; if none specified, terminates 90 days after the agreement date
• ✓Must state management fees and how/when they are paid
• ✓Must state services to be rendered by the licensee
• ✓Provisions do not apply to licensees in commercial real estate transactions

A property manager may represent multiple owners without breaching duty unless the agreement provides otherwise. The licensee may also represent the owner as seller or landlord if the brokerage relationship so provides, and must disclose defective drywall known to the licensee.

• ✓May represent other owners without breaching duty unless the agreement provides otherwise
• ✓May represent owner as seller/landlord if the brokerage relationship so provides
• ✓Disclose actual knowledge of defective drywall to the owner

Salespersons and individual brokers must keep the board informed of current name and home address; changes must be reported in writing within 30 calendar days. A professional name may be used if filed with the board first; it must include the licensee's first or last name and no titles.

• ✓Name and address changes must be reported to the board in writing within 30 calendar days
• ✓A professional name must be filed before use, include the first or last name, and contain no titles

When a salesperson or broker is discharged or terminates active status, the sole proprietor or principal broker must return the license to the board within 10 calendar days of termination or notice, indicating the termination date and signing the license.

• ✓License must be returned to the board within 10 calendar days of termination of a salesperson or broker
• ✓The license must show the termination date and be signed before returning

When a principal broker is discharged or terminates active status, the firm must notify the board and return the license within three business days of termination or notice, indicating the termination date and signing the license.

• ✓Firm must notify the board and return the principal broker's license within three business days of termination
• ✓§ 54.1-2109 governs termination relating to death or disability of the principal broker

Principal brokers must keep the board informed of current firm and branch office name/addresses, reporting changes in writing within 30 calendar days. A physical address is required — a post office box is not accepted. Licenses are issued only to the place of business where the licensee is active.

• ✓Principal brokers must report firm/branch name and address changes within 30 calendar days
• ✓A physical address is required; a P.O. box is not accepted

The Board can issue cease and desist orders against unlicensed persons acting as brokers/salespersons and impose civil penalties for unlicensed activity.

• ✓Cease and desist order is effective upon entry and becomes final unless appealed within 21 days per the Administrative Process Act
• ✓Board may impose a civil penalty not to exceed $1,000 per real estate transaction or the compensation received, whichever is greater
• ✓Penalties collected are paid to the Literary Fund after deduction of administrative costs

If money is held in escrow, each firm or sole proprietorship must maintain one or more federally insured separate escrow accounts under its licensed name into which all deposits (down payments, earnest money, settlement funds, application deposits, rents, security deposits, advances) are deposited unless all principals agree otherwise in writing.

• ✓Escrow accounts must be federally insured, separate, and maintained in the firm's licensed name
• ✓All accounts, checks, and bank statements must be labeled 'escrow' and designated as escrow with the financial institution

The principal broker is held responsible for escrow accounts, including having signatory authority. The balance must be sufficient at all times to cover all designated funds. The supervising broker and any licensee with escrow authority may also be held responsible.

• ✓The principal broker is responsible for escrow accounts and must have signatory authority
• ✓The escrow balance must at all times be sufficient to account for all designated funds

Application deposits must be placed in escrow by the end of the fifth business banking day following landlord approval. Earnest money deposits must be placed in escrow by the end of the fifth business banking day following ratification. Security deposits and rents must be placed in escrow by the end of the fifth business banking day following receipt.

• ✓Earnest money must be deposited by the end of the fifth business banking day following ratification
• ✓Security deposits and rents must be deposited by the end of the fifth business banking day following receipt

If a transaction is not consummated, the broker must hold funds in escrow until: all principals agree in writing, a court orders disbursement, funds are interpleaded into court, or the broker releases funds per the contract's clear terms. A broker may send 15-day written notice of intended release absent a written protest.

• ✓Broker may release earnest money only by written agreement, court order, interpleader, or clear contract terms
• ✓Broker may give written notice that funds will be released unless a written protest is received within 15 calendar days

Improper escrow maintenance includes accepting non-negotiable value without acknowledgment, commingling funds, failing to deposit in a designated escrow account, failing to keep sufficient balances, and failing (as principal broker) to report suspected noncompliance to the board within three business days.

• ✓Commingling client funds with the broker's own or the firm's funds is prohibited
• ✓Principal broker must report suspected noncompliance-causing improper conduct to the board within three business days

Escrow funds may include money ultimately belonging to the licensee, but such must be separately identified and paid to the firm by check drawn on the escrow account. This is not commingling if withdrawals occur at intervals of not more than six months and the licensee can always identify the funds belonging to the licensee versus the firm.

• ✓Funds ultimately belonging to the licensee must be separately identified and withdrawn at least every six months
• ✓Escrow funds may not be paid directly to licensees; they must be paid to the firm by check drawn on the escrow account

If escrow funds purchase a certificate of deposit, pledging or hypothecating the certificate, or absence of the original certificate from the broker's direct control, constitutes prohibited commingling.

• ✓Pledging or hypothecating an escrow-funded certificate of deposit constitutes commingling
• ✓Keeping the original CD outside the broker's direct control constitutes commingling

A broker who complies with disbursement rules is immune from liability to contract parties and is not required to determine who is entitled to funds (except per clear contract terms). Brokers may use interpleader under § 16.1-77 for disputed or unclaimed funds and in foreclosure situations under § 54.1-2108.1.

• ✓A broker complying with the disbursement section is immune from liability to the parties
• ✓Brokers may interplead disputed or unclaimed escrow funds into court under § 16.1-77

Security deposits must be treated per the Virginia Residential Landlord and Tenant Act. Unless the landlord is entitled, a security deposit may not be removed from escrow without written tenant consent. On foreclosure, the deposit must be handled per applicable law requiring return to the tenant.

• ✓Security deposits generally may not be removed from escrow without written tenant consent
• ✓Security deposits must be treated in accordance with the Virginia Residential Landlord and Tenant Act unless exempted

Unless agreed in writing by all principals, a licensee is not entitled to any part of the earnest money or other transaction funds as commission until the purchase transaction has been consummated. Lease transaction commissions follow the lease or property management agreement terms.

• ✓A licensee earns no part of earnest money as commission until the purchase transaction is consummated (unless agreed in writing)
• ✓Lease commissions are governed by the lease or property management agreement terms

Written disclosure of interest disbursement must be made to principals for interest-bearing accounts at the time of contract/lease. A licensee may not disburse funds unless sufficient money is on deposit to the credit of the client. Closing expenses may not be deducted from a deposit or down payment unless agreed in writing.

• ✓A licensee may not disburse escrow funds unless sufficient money is on deposit to the client's credit
• ✓Closing expenses may not be deducted from a deposit/down payment unless agreed in writing by all principals