18 VAC 135-20-140 to 150. Reinstatement +17Virginia · Real Estate · English

If renewal requirements are not met within 30 days of expiration, a reinstatement fee applies (Salesperson $100, business entity $135, Broker $120, Concurrent Broker $120, Firm $245, Branch Office $135). A license may be reinstated for up to ONE YEAR after expiration. After one year, no reinstatement is possible and the applicant must apply as a new applicant.

• ✓Reinstatement fee required if not renewed within 30 days of expiration
• ✓License may be reinstated for up to one year after expiration
• ✓After one year, must apply as a new applicant meeting all current requirements

A licensee may not perform activities under §§ 54.1-2100 and 54.1-2101 with an expired license. Any real estate activity after expiration may constitute unlicensed activity subject to prosecution under Chapter 1 of Title 54.1.

• ✓Cannot perform licensed activities with an expired license
• ✓Activity with an expired license may constitute unlicensed activity subject to prosecution

All reinstatement applicants must meet the requirements of 18VAC135-20-101. Those wanting to activate their license must have completed CE to reinstate and activate; reinstatement of an inactive license does not require CE completion.

• ✓Reinstating to active status requires completed CE
• ✓Reinstating to inactive status does not require CE

Licenses for salespersons, brokers, and firms expire two years from the last day of the month in which they were issued, as indicated on the license. Concurrent broker licenses expire on the same date as the original broker license.

• ✓Licenses expire two years from the last day of the month of issuance
• ✓Concurrent broker licenses expire on the same date as the original broker license

A licensee may act as a dual agent or dual representative in a commercial transaction only with written consent of all clients. Consent and disclosure are presumed given against any client who signs the disclosure. Disclosure must be conspicuous if combined with other information, and follows a prescribed format. Withdrawal from a non-consenting client is permitted without liability.

• ✓Written consent of all clients required for commercial dual agency
• ✓Consent presumed given against any client who signs the disclosure
• ✓Licensee may withdraw without liability from a client refusing to consent

A licensee must respond to a board inquiry (other than record requests under 18VAC135-20-240) within 21 days.

• ✓General board inquiries must be answered within 21 days
• ✓This 21-day rule is separate from the 10-day record production rule under 18VAC135-20-240

Upon death or disability of a sole broker, the Board grants approval to conclude business for 180 days, following a strict order of authorized persons.

• ✓Board grants approval to carry on business for 180 days solely to conclude the deceased/disabled broker's business
• ✓Order of authority: (1) qualified personal representative, (2) agent under power of attorney referencing this section, (3) executor nominated in will, (4) adult family member, (5) employee/independent contractor
• ✓If none are available/suitable, the Board may appoint any other suitable person to terminate the business within 180 days

On a sole broker's death or disability, the Board grants 180 days to conclude business through a prescribed order of successors, from personal representative down to affiliated contractors.

• ✓The Board grants approval to carry on business for 180 days following the broker's death or disability
• ✓The order of authorized persons: personal representative, POA agent referencing the section, executor, adult family member, then employee/independent contractor
• ✓If none are suitable, the Board may appoint any other suitable person to terminate the business within 180 days

A licensee may act as dual agent/representative in commercial transactions only with the written consent of all clients. Disclosure must be conspicuous.

• ✓Written consent of all clients required for commercial dual agency
• ✓Consent is presumed against any client who signs the disclosure
• ✓Disclosure must be conspicuous—bold lettering, all capitals, underlined, or in a separate box
• ✓Licensee may withdraw without liability if a client refuses to consent

The board may withdraw approval of schools, courses, or instructors for failing to meet standards, exam misconduct, deceptive advertising, or improper exam participation.

• ✓Approval may be withdrawn if school, instructors, or courses no longer meet board standards
• ✓Soliciting or distributing examination questions without copyright owner approval is grounds for withdrawal
• ✓Deceptive advertising or officials/instructors sitting for licensing exams for purposes other than obtaining a license are grounds for withdrawal

The board may withdraw approval of schools, courses, or instructors for failing standards, exam misconduct, or fraudulent advertising.

• ✓Approval may be withdrawn if the school, instructors, courses, or subjects no longer meet board standards
• ✓Withdrawal applies if a school/instructor solicits or distributes examination questions without copyright owner approval
• ✓Fraudulent, deceptive, or misrepresentative advertising is grounds for withdrawal
• ✓Officials/instructors sitting for a licensing exam for any purpose other than to obtain a license is grounds for withdrawal

The board may fine, suspend, or revoke licenses for violations of Chapters 1, 2, 3, and 21 of Title 54.1, Chapter 10 of Title 55.1, or any board regulation. A licensee may be charged with a violation regardless of whether acts were in a personal capacity or as a real estate licensee.

• ✓Board may fine, suspend, or revoke licenses for statutory or regulatory violations
• ✓Violations apply whether acts are personal or in licensee capacity

A principal or supervising broker may assign different affiliated licensees as designated agents/representatives for different clients in the same residential transaction. This does not constitute dual agency if a designated agent represents only one client, but the supervising broker is considered a dual agent. Designated agents may not disclose confidential client information except to their broker.

• ✓Designated agents represent different clients; not dual agency if each represents only one client
• ✓The supervising principal/broker is considered a dual agent
• ✓Designated agents may not disclose confidential info except to their affiliated broker

A principal or supervising broker may assign different affiliated licensees as designated agents to represent different clients in the same transaction; this does not constitute dual agency for the designated agents but the supervising broker is a dual agent.

• ✓Assigning designated agents to represent different clients is not dual agency for the designated agents
• ✓The supervising/principal broker is considered a dual agent or representative
• ✓Designated agents may not disclose confidential client information except to the affiliated licensee's broker
• ✓Use of designated agents must be disclosed conspicuously, and licensee may withdraw without liability if consent is refused

Use of designated agents in a residential transaction must be disclosed per a prescribed conspicuous format identifying which party each designated agent represents and their agent type. The disclosure obligation does not relieve the written brokerage agreement requirement. Withdrawal from a non-consenting client is permitted without liability.

• ✓Must be disclosed in a conspicuous prescribed format
• ✓Disclosure does not relieve the written brokerage agreement requirement
• ✓Licensee may withdraw without liability from a client refusing consent

As a renewal condition under § 54.1-2105.03, active salespersons must complete 16 hours of instruction per licensing term, and active brokers must complete 24 hours. First-time renewing salespersons must complete 30 hours of post-license education regardless of active/inactive status. Inactive brokers and salespersons are not required to complete CE as a renewal condition.

• ✓Active salespersons need 16 CE hours; active brokers need 24 CE hours per term
• ✓First-time renewing salespersons need 30 hours of post-license education
• ✓Inactive licensees are not required to complete CE for renewal

For salespersons, 8 of the 16 hours must include: 2 hours fair housing laws; 3 hours ethics and standards of conduct; and a minimum of 1 hour each in legal updates/emerging trends (including flood zones and NFIP), real estate agency, and real estate contracts.

• ✓Salespersons need 2 hours fair housing and 3 hours ethics/standards of conduct
• ✓Minimum 1 hour each in legal updates, real estate agency, and real estate contracts

For brokers, 16 of the 24 hours must include: 8 hours in supervision and management of agents/brokerage firms (2 of which cover broker supervision requirements); 2 hours fair housing; 3 hours ethics/standards of conduct; and a minimum of 1 hour each in legal updates/emerging trends, real estate agency, and real estate contracts.

• ✓Brokers need 8 hours in supervision and management, including 2 hours on broker supervision requirements
• ✓Brokers need 2 hours fair housing and 3 hours ethics/standards of conduct

A licensee who submits a notarized affidavit certifying they do not practice residential real estate brokerage, management, or leasing—and will not during the term—is not required to complete fair housing training; instead they must receive training in other applicable federal and state discrimination laws.

• ✓A notarized affidavit is required to be exempt from fair housing CE
• ✓Exempt licensees must instead train in other federal and state discrimination laws

Licensees must retain proof of continuing education for three years and provide it on a board-prescribed form; failure may result in nonrenewal, discipline, or both. Excess CE credits obtained in the six months immediately prior to expiration carry over into the next two-year renewal period. Instructors who are licensees may earn CE credit for teaching.

• ✓Licensees must retain CE proof for three years
• ✓Excess CE earned in the six months before expiration carries over one renewal period
• ✓Failure to document CE may result in nonrenewal or discipline

Salespersons holding licenses in other jurisdictions must complete 8 hours including fair housing, legal updates/emerging trends (flood zones and NFIP), ethics, real estate agency, and contracts, and may substitute their jurisdiction's education for remaining hours. Brokers must complete 16 hours including supervision/management (2 hours broker supervision) and the same core topics.

• ✓Out-of-jurisdiction salespersons complete 8 required core hours; brokers complete 16
• ✓Remaining hours may be satisfied by education completed in the other jurisdiction

It is prohibited to be convicted/found guilty of a misdemeanor involving moral turpitude, sexual offense, non-marijuana drug distribution, or physical injury, or any felony. A nolo contendere plea counts as a conviction. Licensees must inform the board in writing within 30 days of pleading guilty/nolo or being convicted.

• ✓A plea of nolo contendere is considered a conviction for disciplinary purposes
• ✓Licensees must inform the board in writing within 30 days of a qualifying guilty/nolo plea or conviction

Having a license suspended, revoked, or surrendered in disciplinary action in any jurisdiction is prohibited, and must be reported to the board within 30 days. Being found to have violated fair housing laws (Virginia Fair Housing Act, Title VIII Civil Rights Act, Civil Rights Act of 1866) is also prohibited.

• ✓Disciplinary action in any jurisdiction must be reported to the board in writing within 30 days
• ✓A finding of violating Virginia or federal fair housing laws is a prohibited act

Prohibited acts include a broker failing to ensure supervision over financial dealings, escrow, and operations; failing to disburse/retain escrow documents; allowing licensees to practice with inactive licenses; failing to have signatory authority on all accounts; and licensees practicing with expired licenses or allowing unauthorized home access.

• ✓A broker must have signatory authority on all accounts and ensure licensees hold active licenses
• ✓A licensee may not practice real estate with an inactive or expired license, nor allow unsupervised home access without authorization

Prohibited fraudulent conduct includes diverting commission from the firm, fabricating/altering documents to mislead, signing documents for a client without written authorization, making earnest money deposits payable to oneself without authority, and misrepresenting property ownership.

• ✓Fabricating or altering documents with intent to mislead is prohibited
• ✓Signing documents on a client's behalf without proper written authorization is prohibited

Prohibited acts include furnishing substantially inaccurate/incomplete information to the board, holding more than one broker/salesperson license in Virginia, a currently licensed salesperson or broker sitting for the licensing exam, and improperly signing or refusing to sign an experience verification form.

• ✓Holding more than one Virginia broker or salesperson license is prohibited except as provided in the chapter
• ✓Signing an experience verification form without direct supervision/knowledge, or unreasonably refusing to sign, is prohibited

A licensee must inform the board in writing within 30 days of pleading guilty/nolo contendere or being convicted of specified crimes, and within 30 days of a disciplinary action in any jurisdiction. Fair housing law violations found by a court/administrative body are prohibited grounds.

• ✓Must inform board in writing within 30 days of a qualifying conviction
• ✓Must inform board in writing within 30 days of disciplinary action in any jurisdiction
• ✓Fair housing law violations are grounds for discipline

Prohibited: principal/supervising broker failing to ensure supervision over financial dealings and escrow; a broker failing to disburse escrow funds properly or retain documents; a broker failing to ensure licensees hold active licenses; a broker failing signatory authority on accounts; and a licensee practicing with an inactive/expired license or operating an unlicensed firm.

• ✓Broker must ensure proper supervision over financial dealings and escrow
• ✓Broker must ensure licensees hold active licenses while practicing
• ✓Licensee cannot practice with an inactive or expired license or operate an unlicensed firm

Prohibited: diverting commission from the firm to a licensee/unlicensed non-party; fabricating or altering documents to mislead; signing documents on a client's behalf without written authorization; making an earnest money deposit payable to oneself without authority; and misrepresenting property ownership.

• ✓Cannot fabricate or alter documents with intent to mislead
• ✓Cannot sign client documents without written authorization
• ✓Cannot divert commission from the firm to non-parties
• ✓Cannot make earnest money payable to oneself without written authority

Prohibited acts include furnishing inaccurate/incomplete information to the board; holding more than one broker/salesperson license except as provided; a licensed salesperson/broker sitting for the licensing exam; signing an experience verification form without direct supervision or knowledge; and being convicted of specified crimes.

• ✓Cannot furnish inaccurate or incomplete information to the board
• ✓Cannot hold more than one license except as provided in the chapter
• ✓Cannot sign an experience verification form without direct supervision or knowledge

Each place of business, branch office, and real estate team must be supervised by a supervising broker who provides reasonable and adequate supervision. The broker may delegate but cannot escape responsibility.

• ✓Each place of business, branch office, and real estate team must be supervised by a supervising broker
• ✓Supervising broker may designate another broker to assist but remains responsible for supervision of all assigned licensees
• ✓Reasonable and adequate supervision includes being available to review/approve documents, ensuring training and written policies, and undertaking steps to ensure licensees hold current licenses

Supervising brokers must ensure written procedures covering key areas and maintain records for a set period. Additional certification is required for distant supervision.

• ✓Written policies must cover: escrow handling, fair housing compliance, advertising/marketing, contract negotiation/drafting, unlicensed assistant oversight, agency/independent contractor relationships, law updates, and physical condition disclosures
• ✓Supervising broker must maintain required records for three years and furnish them to the Board's agent upon request
• ✓A supervising broker residing more than 50 miles from a branch office must certify compliance in writing quarterly on a Board form
• ✓At branch office license renewal, the supervising broker must provide the name and license number of each affiliated licensee

Every resident real estate broker must maintain a place of business within Virginia.

• ✓Every resident real estate broker shall maintain a place of business in the Commonwealth
• ✓Applies to resident brokers specifically

The Principles and Practices course covers 25 topic areas over at least 60 class hours. Brokerage is a required broker course of at least 45 class hours.

• ✓Principles course must include all 25 listed topic areas and not less than 60 class hours (four semester/six quarter hours)
• ✓Brokerage is a required specific broker course of three semester/six quarter hours but not less than 45 class hours
• ✓No more than 45 class hours of broker-related courses may be accepted in lieu of specific broker courses

The Principles and Practices of Real Estate course must cover 25 required topic areas over a minimum of 60 class hours (four semester hours/six quarter hours).

• ✓The Principles course must not be less than 60 class hours (four-semester-hour or six-quarter-hour)
• ✓Must include all 25 required topic areas (e.g., contracts, deeds, mortgages, leases, liens, financing, agency, fair housing statutes, Real Estate Board regulations)

Brokerage is a required specific course, and related subjects can substitute for a limited number of hours toward broker licensing.

• ✓Brokerage is a required specific course of three semester hours/six quarter hours, but not less than 45 class hours
• ✓No more than 45 class hours of broker-related courses may be accepted in lieu of specific broker courses
• ✓Related subjects include property management, land planning/use, business law, real estate economics, and investments

Defines the core participants and concepts in real estate practice including brokers, teams, supervising brokers, and distance learning.

• ✓'Real estate broker' means anyone who for compensation sells, buys, negotiates, leases, or rents real estate for others
• ✓'Real estate team' means two or more individuals working as a unit within the same brokerage, representing themselves as one unit, and using a fictitious name
• ✓'Supervising broker' is designated by a principal broker to supervise associate brokers/salespersons at a branch office or team
• ✓'Distance learning' is instruction delivered by an approved provider through a medium other than a classroom

The Code of Virginia defines core industry terms including broker, salesperson, real estate team, supervising broker, and distance learning, which are foundational to the exam.

• ✓A 'real estate broker' is any individual/business entity who, for compensation, sells, buys, negotiates, leases, or rents real estate for others
• ✓A 'real estate team' is two or more individuals (at least one licensed) working as a unit in the same brokerage, representing themselves as one unit under a fictitious name
• ✓A 'supervising broker' is designated by a principal broker to supervise associate brokers/salespersons at a branch office or team
• ✓'Distance learning' is instruction delivered by an approved provider through a medium other than a classroom setting

A place of business is an office where the principal broker regularly transacts real estate business and can receive/direct business calls. A place of business in a residence must be separate and distinct from living quarters with its own entrance and be publicly accessible.

• ✓Place of business must be where broker regularly transacts business and receives calls
• ✓Residence-based office must be separate with its own entrance and public access

Every principal broker must have readily available to the public at the main office the firm license, principal broker license, and licenses of every active salesperson and broker. The branch office license and roster of assigned licensees must be posted conspicuously in each branch office.

• ✓Firm, principal broker, and all active licenses must be available at main office
• ✓Branch office license and roster must be conspicuously posted in each branch

The payment or promise of payment or compensation to a real estate broker does not by itself create a brokerage relationship between any broker, seller, landlord, buyer, or tenant.

• ✓Payment or promise of compensation does not create a brokerage relationship
• ✓Applies among brokers, sellers, landlords, buyers, and tenants

The payment or promise of compensation to a real estate broker does not by itself create a brokerage relationship.

• ✓Payment or promise of compensation does not create a brokerage relationship between broker, seller, landlord, buyer, or tenant

Prior to the expiration date on the license, each licensee desiring renewal must return the renewal application forms and the appropriate fee. Failure to receive notices from the board does not relieve the licensee of the obligation to renew.

• ✓Renewal forms and fees must be submitted before the expiration date
• ✓Failure to receive board renewal notices does not excuse the obligation to renew

Brokers may audit their practices (via third party or self-audit) and enter a voluntary compliance program to correct noncompliance, gaining immunity from enforcement.

• ✓Broker must notify the Board of discovered noncompliance within 30 days and submit a written plan to bring practices into compliance
• ✓Voluntary compliance must be completed within 90 days from the date the plan is submitted
• ✓Certification by broker or auditor constitutes immunity from enforcement action, EXCEPT where noncompliance was intentional or a result of gross negligence

Nonresident applicants must file irrevocable consent that suits may be commenced against them in Virginia through service on the Director of DPOR.

• ✓Every nonresident applicant must file an irrevocable consent that suits may be commenced in Virginia by service on the Director of DPOR
• ✓Service on the Director is treated as valid and binding as if made upon the applicant in Virginia
• ✓Process served on the Director is forwarded by registered mail to the licensee's main office at the last known address