§ 54.1-2106.1. Licenses Required +18Virginia · Real Estate · English

Business entities (other than sole proprietorships) must obtain a real estate firm license. Managing members/officers/partners actively participating must be licensed brokers, and salespersons must hold licenses.

• ✓No business entity (except sole proprietorship) may act as a real estate firm without a firm license; may be granted in a fictitious name
• ✓Every managing member, officer, partner, or associate actively participating in firm brokerage business must hold a broker's license
• ✓Every employee/independent contractor acting as a salesperson must hold a salesperson or broker license
• ✓A broker may operate a sole proprietorship brokerage without further licensure, but not under a fictitious name; a non-broker-owned sole proprietorship must obtain a license

No individual may act as a broker or salesperson without the proper license. Business entities and real estate teams have distinct licensing requirements.

• ✓No individual may act as a broker without a broker's license; a broker may act as a salesperson for another broker
• ✓No individual may act as a salesperson without a salesperson's license
• ✓A business entity may act as a salesperson only with a separate business entity salesperson's license, requiring every actively participating owner/officer to be licensed

Real estate teams must obtain a business entity salesperson's license. Principal brokers with multiple business locations must license each branch office.

• ✓A group acting as a real estate team must first obtain a business entity salesperson's license; may hire unlicensed assistants
• ✓A team may hire unlicensed assistants as employees or independent contractors as provided by law
• ✓A principal broker maintaining more than one place of business must obtain a branch office license for each; a copy must be kept on the branch premises

Business entities acting as firms need firm licenses; individuals need broker or salesperson licenses. Teams need business entity salesperson licenses, and additional business locations require branch office licenses.

• ✓No business entity other than a sole proprietorship may act as a real estate firm without a firm license
• ✓Every managing member/officer/partner actively participating in firm brokerage must hold a broker's license
• ✓No individual may act as a broker without a broker's license or as a salesperson without a salesperson's license
• ✓A real estate team must obtain a business entity salesperson's license
• ✓A principal broker maintaining more than one place of business must obtain a branch office license for each location

For a business entity license, every owner or officer who actively participates in the real estate business must hold a salesperson or broker license — the business entity license does not replace the individual license. The entity must be authorized to do business under §§ 59.1-69 through 59.1-76.

• ✓Every actively participating owner/officer must hold an individual license
• ✓Business entity license does not replace the individual license
• ✓Entity must be authorized to do business under Title 59.1

Licensees must promptly deliver required disclosures, agreements, and accurate settlement statements to principals, provide notice of material changes, and surrender documents to rightful owners on demand.

• ✓Must make prompt delivery to each principal of copies of required disclosures, listings, leases, offers, counteroffers, addenda, and ratified agreements
• ✓Must provide timely written notice to all principals of material changes to the transaction
• ✓Must deliver a signed and certified statement of receipts and disbursements at completion unless a settlement agent discloses disbursement on the settlement statement
• ✓Cannot refuse without just cause to surrender documents to the rightful owner on demand

Licensees must promptly deliver copies of required disclosures and agreements to principals, notify of material changes, and provide accurate financial statements at closing, unless handled by a settlement agent.

• ✓Must make prompt delivery of complete, legible copies of required disclosures, listings, leases, offers, counteroffers, addenda, and ratified agreements to each principal
• ✓Must provide timely written notice of any material changes to all principals
• ✓Must deliver a complete/accurate statement of receipts and disbursements at completion, signed by the broker (unless disclosed on a settlement statement by another settlement agent)
• ✓Cannot refuse without just cause to surrender documents/instruments to the rightful owner upon demand

Before entering any brokerage relationship, a licensee must advise the prospective client of the type of brokerage relationship proposed and the broker's compensation, including whether the broker will share salary/compensation with another broker who may have a brokerage relationship with another party.

• ✓Disclose the type of brokerage relationship proposed prior to entering it
• ✓Disclose broker's compensation and any compensation-sharing with another broker

Before entering any brokerage relationship, a licensee must advise the prospective client of the type of relationship proposed and the broker's compensation, including any fee-sharing.

• ✓Must disclose the type of brokerage relationship proposed by the broker
• ✓Must disclose the broker's compensation and whether it will be shared with a broker representing another party

For a business entity license, every owner or officer who actively participates in the real estate business must hold a salesperson or broker license; the business entity license does not replace the individual license. When one licensee is the owner/officer, the entity must be named per § 54.1-2106.1 C. The board considers the entity only after it is authorized to do business under §§ 59.1-69 through 59.1-76.

• ✓Every actively participating owner or officer must hold an individual license
• ✓The business entity license does not replace the individual license
• ✓The entity must be authorized under §§ 59.1-69 through 59.1-76 before board consideration

Brokerage agreements must be in writing and have a definite termination date (defaulting to 90 days if none specified), state the brokerage fees and how/when paid, state the services rendered, include other agreed terms, and include dual representation disclosures when consenting to dual representation.

• ✓Must be in writing with a definite termination date; defaults to 90 days if unspecified
• ✓Must state brokerage fees, payment terms, and services to be rendered
• ✓Must include dual representation disclosures when applicable

Brokerage relationships commence when a client engages a licensee and continue until performance is complete or a listed termination event occurs. Brokerage agreements must be in writing with required terms.

• ✓Relationship terminates upon completion, expiration date, mutual agreement, default, or termination under § 54.1-2139(G)
• ✓Brokerage agreements must be in writing with a definite termination date; if none, terminates 90 days after the agreement date
• ✓Must state brokerage fees, services rendered, and other agreed terms
• ✓After termination, licensee owes no further duties except to account for money/property and maintain confidentiality

A brokerage relationship commences when a client engages a licensee and continues until completion of performance or the earlier of an agreed expiration date, mutual termination, default, or termination under § 54.1-2139(G). It ends per the terms of the agreement.

• ✓Relationship commences when client engages the licensee
• ✓Continues until performance is complete or earlier of expiration, mutual termination, default, or § 54.1-2139(G) termination

After termination, expiration, or completion, unless otherwise agreed in writing, a licensee owes no further duties except to account for all money/property and to keep confidential all personal/financial and requested confidential information unless required by law or client consents in writing.

• ✓Must account for all moneys and property after termination
• ✓Must keep confidential information confidential after termination unless law requires or client consents in writing

Improper recordkeeping includes failing to retain for three years: brokerage agreements and agency disclosures (from execution date), contracts/leases/property management agreements/settlement statements (from closing or ratification if failing to close), receipt/disbursement records, and any records required by the section.

• ✓Brokerage agreements and agency disclosures must be retained three years from the date of execution
• ✓Contracts, leases, and settlement statements must be retained three years from closing or from ratification if the deal fails to close

A complete record of financial transactions under the principal broker's Virginia license must be maintained at the place of business or designated branch. If the main office is out of state with a Virginia branch, a copy must be kept in Virginia. Records must show from whom money was received, date of receipt, place and date of deposit, and final disposition.

• ✓Financial records must show source of money, receipt date, deposit place/date, and final disposition of funds
• ✓Out-of-state main offices with a Virginia branch must keep a copy of records in the Virginia office

The principal broker must maintain a bookkeeping/recordkeeping system that accurately and clearly discloses full compliance, with accounting records in sufficient detail to determine compliance.

• ✓A bookkeeping system must accurately and clearly disclose full compliance
• ✓Accounting records must be sufficiently detailed to determine compliance

Concurrent licenses are issued to brokers active in more than one firm upon receipt of a concurrent license form and written statements verifying notice to each firm's principal broker. Payment is required for each license. A concurrent license will not be issued if the individual has a reinstatable expired license with the same firm.

• ✓Concurrent licenses allow brokers to be active in more than one firm
• ✓Written notice must be given to each firm's principal broker
• ✓Separate payment required for each license

A broker exchanging for a salesperson's license must submit a complete application with fee. The broker's license ceases to exist upon exchange; to become a broker again, the person must pass the current broker exam and meet current education and experience requirements.

• ✓Broker's license ceases to exist upon exchange to salesperson
• ✓Re-licensing as broker requires passing current exam and meeting current requirements

A principal or supervising broker is generally not disciplined for a subordinate's unlawful acts unless the broker knew or should have known of the violation and failed to take reasonable remedial action.

• ✓Broker is not liable for subordinate violations unless it appears the broker knew or should have known of the act
• ✓Broker must fail to take reasonable action to remedy the situation to be held responsible

Concurrent licenses are issued to brokers active in more than one firm upon receipt of a concurrent license form and written statements verifying that written notice of the concurrent status was provided to the principal broker of each firm. Payment is required for each license. A concurrent license will not be issued if the individual has a reinstatable expired license with the same firm.

• ✓Brokers active in multiple firms may obtain concurrent licenses
• ✓Written notice must be given to the principal broker of each firm
• ✓Payment is required for each concurrent license

A principal or supervising broker is not automatically liable for the unlawful acts of subordinates unless they knew or should have known and failed to take reasonable remedial action.

• ✓A broker is not subject to discipline for a subordinate's violation unless the broker knew or should have known of the act
• ✓Liability attaches when the broker fails to take reasonable action to remedy the situation

When renewing a firm or sole proprietorship license, the principal or supervising broker must certify that an audit of operations, policies, and procedures has been conducted to ensure compliance.

• ✓Broker must certify he audited (or caused to be audited) the firm's operations, policies, and procedures for compliance
• ✓Audit must be conducted at least once during each term of licensure
• ✓Completed and signed audit form must be kept on the premises and produced for Board inspection/copying upon request

Upon a substantive discussion about a specific property with an actual/prospective buyer or seller who is not the licensee's client and not represented by another licensee, the licensee must disclose any brokerage relationship with another party. Disclosure must be in writing at the earliest practical time, no later than when specific real estate assistance is first provided, and must be conspicuous (bold, all caps, underlined, or in a separate box) if combined with other information.

• ✓Disclose brokerage relationship upon substantive discussion with an unrepresented party
• ✓Disclosure must be in writing no later than when specific real estate assistance is first provided
• ✓Disclosure must be conspicuous (bold/all caps/underlined/separate box) if combined with other info

Licensees must disclose existing brokerage relationships to unrepresented actual/prospective buyers or sellers, in writing, at the earliest practical time. Disclosures must be conspicuous.

• ✓Must disclose brokerage relationship upon substantive discussion of a specific property with an unrepresented party
• ✓Disclosure must be in writing no later than when specific real estate assistance is first provided
• ✓Combined disclosures must be conspicuous—bold, all capitals, underlined, or in a separate box
• ✓Copies of disclosures for executed purchase contracts must be kept for three years
• ✓Lease disclosure requirement does not apply to leases of less than two months

For landlords/tenants who are not clients and not represented, disclosure must be in writing in the lease application or lease, no later than lease signing; this does not apply to residential lease terms under two months. If a licensee's relationship changes, it must be disclosed in writing to all involved. Disclosure copies for executed purchase contracts must be kept three years.

• ✓Lease disclosure in writing no later than signing; exempt for residential lease terms under two months
• ✓Disclose relationship changes in writing to all clients/customers already involved
• ✓Keep disclosure copies for executed purchase contracts for three years

If a licensee's relationship to a client or customer changes, that fact must be disclosed in writing to all clients and customers involved.

• ✓Must disclose in writing to all clients/customers already involved in the transaction if the relationship changes
• ✓A limited service agent must also make the disclosure required by § 54.1-2138.1

All advertising must be under direct supervision of the principal or supervising broker, in the name of the firm, and comply with disclosure required by § 54.1-2138.1. The firm's licensed name must be clearly and legibly displayed on all advertising.

• ✓All advertising must be under the direct supervision of the principal or supervising broker and in the firm's name
• ✓The firm's licensed name must be clearly and legibly displayed on all advertising

Prohibited acts include implying listed property is for sale by owner/unlicensed person, failing to disclose licensee ownership interest, omitting the firm's licensed name on office signs, advertising a specific property without written owner consent, and failing to identify services offered in general-description ads.

• ✓A licensee must disclose in all advertising if the licensee owns or has any ownership interest in the advertised property
• ✓Written consent of the owner/landlord must be obtained before advertising a specific identifiable property

'Advertising' is all forms of representation, promotion, and solicitation for licensed real estate activity. 'Contact information' means telephone number or web address. 'Disclosure' in electronic media requires the firm's licensed name and city/state (or licensee name, firm name, city/state) viewable on or one click from the main page.

• ✓Electronic media disclosure must be viewable on the main page or no more than one click away
• ✓Firm advertising disclosure requires the firm's licensed name; affiliated licensee ads require the licensee's name and firm name

Electronic media advertising for licensed activity is subject to the chapter. Listings must be kept current and consistent with property description and actual status. Licensees must update controlled sites timely and make timely written update requests to third-party listing services.

• ✓Electronic media listings must be kept current and consistent with the property description and actual status
• ✓When a third party controls the listing website, the licensee must make timely written requests for updates

For sale/for lease signs on property must include the firm's name and the firm's primary or branch office telephone number. Business cards must include the licensee's name, firm name, and contact information.

• ✓Property signs must include the firm's name and firm's primary or branch office telephone number
• ✓Business cards must include the licensee's name, firm name, and contact information

An individual currently licensed in another jurisdiction may obtain a Virginia license by being at least 18, having a high school diploma, having passed a substantially equivalent exam in their jurisdiction, signing a statement they understand Virginia law, and passing a Virginia law/regulations exam within 12 months prior to application.

• ✓Must be at least 18 with high school diploma
• ✓Must have passed a substantially equivalent exam in home jurisdiction
• ✓Must pass Virginia law/regulations exam within 12 months of application
• ✓Must sign statement acknowledging understanding of Virginia law

For a broker's license by reciprocity, the applicant must have met substantially equivalent educational requirements and have been actively engaged for 36 of the preceding 48 months. Experience must be verified by an individual with direct knowledge of the applicant's activities.

• ✓Broker reciprocity requires 36 of preceding 48 months actively engaged
• ✓Experience must be verified by someone with direct knowledge
• ✓May be waived at board discretion under § 54.1-2105

An individual currently licensed in another jurisdiction may obtain a Virginia license by being at least 18, having a high school diploma or equivalent, and having received their license by passing a written exam deemed substantially equivalent to Virginia's. They must sign a statement verifying they read and understand Chapter 21 and the regulations.

• ✓Applicant must be at least 18 and have a high school diploma or equivalent
• ✓Applicant must have passed a substantially equivalent written exam in the licensing jurisdiction
• ✓Applicant must sign a statement verifying they read and understand Chapter 21 and this chapter

Within 12 months prior to submitting a complete application, the reciprocity applicant must pass a written exam covering Virginia real estate license law and Real Estate Board regulations. The applicant must follow all exam conduct procedures.

• ✓Reciprocity applicants must pass a Virginia law and regulations exam within 12 months
• ✓Failure to follow exam conduct procedures may be grounds for denial

For a reciprocity broker's license, the applicant must have met substantially equivalent educational requirements and have been actively engaged for 36 of the preceding 48 months, verified by an individual with direct knowledge of the applicant's activities. These requirements may be waived at board discretion under § 54.1-2105.

• ✓Reciprocity broker applicants need 36 of the preceding 48 months actively engaged
• ✓Experience must be verified by someone with direct knowledge of the applicant's activities

Revocation, suspension, or denial of renewal of a principal broker or sole proprietor triggers return of subordinate licenses to the board. Discipline on one broker license affects concurrent broker licenses of the same individual.

• ✓Discipline against a principal broker/sole proprietor automatically returns all affiliated individuals' licenses to the board until reissued
• ✓The board shall suspend, revoke, or deny renewal of concurrent broker licenses when it does so to another broker license held by the same individual

Discipline against a principal broker or sole proprietor cascades to affiliated licensees, and discipline of one broker license affects concurrent broker licenses held by the same individual.

• ✓Revocation, suspension, or denial of renewal of a principal broker/sole proprietor's license automatically returns all affiliated individuals' licenses to the board until reissued
• ✓The board shall suspend, revoke, or deny renewal of concurrent broker licenses when it does so to another broker's license held by the same individual

Even one act for compensation involving buying, selling, exchanging, leasing, or renting real estate for another constitutes acting as a broker or salesperson.

• ✓One act for compensation of buying, selling, exchanging, leasing, or renting real estate for another constitutes being a broker/salesperson
• ✓Applies except as specifically excepted in § 54.1-2103
• ✓Applies to persons, firms, partnerships, associations, and corporations performing, offering, or attempting such acts

A broker who wants to exchange his license(s) for a salesperson's license must submit a complete application with the appropriate fee. Upon exchange, the current broker's license ceases to exist; to become a broker again, the licensee must pass the current broker exam and meet current education and experience requirements at the time of application.

• ✓Exchanging causes the broker's license to cease to exist
• ✓Regaining broker status requires passing the current broker exam and meeting current requirements

A licensee may act as a limited service agent in a residential transaction only under a written brokerage agreement that discloses limited service status, lists the specific services provided, and lists the specific standard agent duties NOT provided. The disclosure must be conspicuous (bold or all caps, and underlined or in a separate box) and include acknowledgment language of informed consent. A limited service agent must also disclose dual agency per § 54.1-2139.

• ✓Only permitted under a written brokerage agreement disclosing limited service status
• ✓Must list specific services provided and specific standard-agent duties not provided
• ✓Disclosure must be conspicuous and include informed consent acknowledgment

A licensee may act as a limited service agent only under a written brokerage agreement that discloses the limited service role, lists services provided, and lists standard-agent duties NOT provided.

• ✓Written agreement must disclose limited service status, list services provided, and list standard-agent duties not provided
• ✓Disclosure must be conspicuous—bold or all capitals, and underlined or in a separate box
• ✓A limited service agent must disclose dual agency in accordance with § 54.1-2139
• ✓Client must acknowledge informed consent that other parties/licensees have no obligation to perform the undersigned's duties

A licensee dealing with an unrepresented party or a party of a limited service agent who provides information or assistance without additional compensation is not liable except for gross negligence or willful misconduct, and does not create a brokerage relationship. A licensee may charge a fee for such services, which does not create a brokerage relationship, but is held to the ordinary standard of care.

• ✓No liability for assisting the other party except gross negligence or willful misconduct
• ✓Providing assistance or charging a fee does not create a brokerage relationship
• ✓Licensee providing paid services is held to the ordinary standard of care

A licensee helping an unrepresented party or a party of a limited service agent, without additional compensation, incurs limited liability and does not create a brokerage relationship.

• ✓No liability for assisting the other party except for gross negligence or willful misconduct
• ✓Providing such assistance does not create a brokerage relationship
• ✓A licensee may charge a fee to a limited service agent's client for services; this does not create a brokerage relationship but requires ordinary standard of care