§ 54.1-2101 & 2101.1. Salesperson Defined; Contract Preparation +23Virginia · Real Estate · English

A salesperson works for compensation by/with a broker to perform real estate acts. Licensees may prepare contracts incidental to a transaction without a separate fee and may assist with translation without charge.

• ✓A salesperson is employed directly/indirectly by or affiliated as an independent contractor with a real estate broker
• ✓Licensees may prepare written real estate contracts if incidental to a transaction in which they are involved and no separate fee is charged
• ✓A licensee may assist a party in obtaining a translator but shall not charge a fee and is not liable for translation inaccuracies

A salesperson works for compensation under a broker. Licensees may prepare real estate contracts incidental to their transaction without a separate fee and may assist with translations without charge.

• ✓A 'real estate salesperson' is employed directly/indirectly by or affiliated as an independent contractor with a broker for compensation
• ✓A licensee may prepare written contracts only if incidental to a transaction they are involved in and without charging a separate fee
• ✓A licensee may assist a party in obtaining a translator or refer to an electronic translation service but cannot charge a fee and is not liable for translation inaccuracies

The Virginia Real Estate Transaction Recovery Act defines key terms including regulant, claimant, improper/dishonest conduct, and verified claim used in fund recovery proceedings.

• ✓'Improper or dishonest conduct' includes only wrongful/fraudulent taking or conversion of money/property/value or material misrepresentation or deceit
• ✓'Regulant' means any person or entity licensed by the Board as a broker or salesperson
• ✓'Claimant' means a person with an unsatisfied judgment against a regulant who has filed a verified claim; a 'verified claim' is a notarized application on a Board form with supporting documentation
• ✓'Judgment' includes certain bankruptcy court orders (nondischargeable debt, extinguished claims with no/partial distribution) but an order of dismissal is not a judgment

A licensee representing a buyer/tenant is not deemed to have a brokerage relationship with a seller, landlord, or other licensee solely by using a common source information company (e.g., MLS). Such companies may require disclosure of the nature of the brokerage relationship and may assume standard agency absent disclosure.

• ✓Using a common source information company does not create a brokerage relationship
• ✓Companies may require disclosure of the nature of the brokerage relationship
• ✓Absent disclosure, a licensee may be assumed to be acting as a standard agent

Renewal fees are nonrefundable: Salesperson $65; Salesperson/broker business entity $90; Broker $80; Concurrent Broker $80; Firm $160; Branch Office $90. The date of receipt by the board determines timeliness.

• ✓All renewal fees are nonrefundable
• ✓Firm renewal is $160; broker renewal is $80; salesperson renewal is $65

A licensee representing a buyer/tenant is not deemed to have a brokerage relationship with a seller/landlord solely by using a common source information company (e.g., MLS).

• ✓Using a common source information company does not create a brokerage relationship with a seller/landlord/other licensee
• ✓A common source information company may require disclosure of brokerage relationship nature as a condition of participation
• ✓Absent disclosure, rules may assume a licensee is acting as a standard agent

Certain persons acting in specific capacities are exempt from real estate licensing requirements, including owners, attorneys, fiduciaries, and limited salaried property management employees.

• ✓Owners/lessors and their regular employees acting on their own property are exempt
• ✓Attorneys-at-law, receivers, trustees in bankruptcy, administrators, executors, and court-ordered sellers are exempt
• ✓Auctioneers selling real estate at public auction (bidding open no longer than 48 hours) are exempt but cannot advertise they are authorized to sell real estate generally
• ✓Salaried employees of a broker managing property may only exhibit units, provide factual lease info, accept applications, and accept deposits/rentals — they cannot negotiate amounts or leases
• ✓A Board licensee must comply with Board regulations even if otherwise exempt from licensure
• ✓An attorney-at-law referring a client cannot receive listing/cooperating broker compensation unless also licensed

Certain persons are exempt from the real estate chapter, including owners managing their own property, attorneys, court-appointed persons, trustees, and certain salaried employees performing limited leasing tasks.

• ✓Owners/lessors and their regular employees acting on their own property are exempt
• ✓Attorneys-at-law, receivers, trustees in bankruptcy, administrators, executors, and court-ordered sellers are exempt
• ✓Auctioneers selling at public auction (bidding open no longer than 48 hours) are exempt but may not advertise authorization to sell real estate
• ✓A licensee must comply with board regulations even if otherwise exempt from licensure
• ✓Salaried employees may only exhibit units, provide factual lease info, accept applications, and accept deposits/rentals without negotiating

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. Principal brokers must report firm/branch name and address changes within 30 calendar days; a physical address is required (no P.O. box). Professional names must be filed with the board before use and include the licensee's first or last name with no titles.

• ✓Name and address changes must be reported in writing within 30 calendar days
• ✓Principal brokers must provide a physical address, not a P.O. box
• ✓Professional name must be filed before use and include first or last name with no titles

When a salesperson or broker terminates active status, the principal broker/sole proprietor must return the license to the board within 10 calendar days of termination. When a principal broker terminates active status with a firm, the firm must notify the board and return the license within three business days.

• ✓Salesperson/broker license must be returned within 10 calendar days of termination
• ✓Principal broker license must be returned within three business days of termination

A client is not liable for a licensee's misrepresentation unless the client knew or should have known and failed to correct it, nor for the licensee's negligence/intentional acts. A broker who engages another broker is similarly protected. Knowledge is not imputed among clients and licensees—only actual knowledge is deemed possessed.

• ✓Client not liable for licensee's misrepresentation unless client knew/should have known and failed to correct
• ✓Knowledge or information is not imputed among clients and licensees; only actual knowledge counts
• ✓Liability limits do not apply to unlawful discriminatory housing practices

Clients are not liable for a licensee's misrepresentation unless they knew/should have known and failed to correct it. Knowledge is not imputed among clients and licensees.

• ✓Client not liable for licensee misrepresentation unless client knew/should have known and failed to correct timely
• ✓Client not liable for negligence, gross negligence, or intentional acts of any broker/licensee
• ✓A broker is not liable for an assisting broker's misrepresentation unless the broker knew/should have known
• ✓Clients and licensees possess actual knowledge only; knowledge is not imputed
• ✓Liability is not limited in matters involving unlawful discriminatory housing practices

Nothing in the article limits a person's right to rescind a transaction or the liability of clients or licensees for their own misrepresentation, negligence, gross negligence, or intentional acts. However, nothing in the article creates a civil cause of action against a licensee.

• ✓The article does not limit rescission rights or liability for one's own wrongful acts
• ✓Nothing in the article creates a civil cause of action against a licensee

The board may deny renewal for (i) the same reasons it may refuse initial licensure or discipline a licensee; (ii) failure to meet the terms of a licensure agreement or board order; or (iii) failure to fully pay monetary penalties and costs plus accrued interest.

• ✓Renewal may be denied for the same reasons as refusing initial licensure
• ✓Renewal may be denied for failure to pay board penalties, costs, and accrued interest

Each new regulant is assessed for the Recovery Fund, which must maintain a minimum balance. Additional assessments may be levied but are capped per biennial period.

• ✓Each initial regulant is assessed $20 at licensure, specifically assigned to the fund
• ✓The minimum balance of the fund is $400,000; if below, the Director informs the Board and interest transfers may be recommended
• ✓No regulant may be assessed more than $20 total during any biennial license period (biennium expiring June 30 of each even-numbered year)

Excess fund balances are transferred to the Virginia Housing Trust Fund. Failure to pay assessments results in license suspension.

• ✓When the fund exceeds $2 million at fiscal year close, the excess is transferred to the Virginia Housing Trust Fund
• ✓No license is renewed or reinstated until any outstanding assessments are paid
• ✓If a regulant fails to remit payment, the Director sends a second notice; failure to pay within 30 days of the second notice results in automatic license suspension, restored only upon receipt of the delinquent assessment

If money is to be held in escrow, each firm/sole proprietorship must maintain one or more federally insured separate escrow accounts under its licensed name for all deposits, rental payments, security deposits, and other client funds. Accounts, checks, and statements must be labeled 'escrow.' The principal broker is responsible and must have signatory authority.

• ✓Escrow accounts must be federally insured and labeled 'escrow'
• ✓Principal broker is responsible and must have signatory authority
• ✓Balance must be sufficient at all times to account for all designated funds

Upon ratification, an earnest money deposit to be held in the firm's escrow must be placed there by the end of the fifth business banking day following ratification, unless otherwise agreed in writing. If not held in the firm's escrow, it must be delivered to the named escrow agent by the fifth business banking day following receipt.

• ✓Earnest money deposits must be placed in escrow by the fifth business banking day after ratification
• ✓If not held by the firm, deposit must reach the named escrow agent within five business banking days

When a transaction is not consummated, the broker holds funds until: all principals agree in writing, a court orders disbursement, funds are interpleaded into court, or the broker releases funds per clear contract terms. The broker may send written notice of intent to release unless a written protest is received within 15 calendar days. A broker who complies is immune from liability.

• ✓Broker holds disputed funds until written agreement, court order, interpleader, or clear contract terms allow release
• ✓Broker may release funds after 15 calendar days if no written protest received
• ✓A broker who complies with the section is immune from liability

Security deposits must be placed in escrow by the fifth business banking day following receipt and treated under the Virginia Residential Landlord and Tenant Act. Security deposits cannot be removed from escrow without tenant's written consent unless the landlord is otherwise entitled. All rent must be placed in escrow by the fifth business banking day.

• ✓Security deposits must be escrowed by the fifth business banking day after receipt
• ✓Security deposits require tenant's written consent for removal unless landlord entitled
• ✓Application deposits must be escrowed by the fifth business banking day after rental application approval

Commingling client funds with the licensee's own or the firm's funds is prohibited. Licensee-owned funds in escrow must be separately identified and withdrawn at intervals of not more than six months. Pledging or hypothecating a CD purchased with escrow funds, or absence of the original certificate, constitutes commingling.

• ✓Commingling client funds with licensee/firm funds is prohibited
• ✓Licensee funds in escrow must be withdrawn at least every six months
• ✓Cannot disburse escrow funds unless sufficient funds exist for that client/property

A principal broker must report to the board within three business days instances where the principal broker reasonably believes improper conduct of a licensee, contractor, or employee has caused noncompliance with escrow rules. Interest-bearing account disbursement of interest must be disclosed in writing at contract/lease writing.

• ✓Principal broker must report escrow noncompliance within three business days
• ✓Interest disbursement on interest-bearing accounts must be disclosed in writing

The nine-member Real Estate Board sets education requirements. Salespersons need 60 hours of Principles; brokers need 12 semester hours. Reciprocity applicants must pass Virginia's exam.

• ✓The Board has nine members: seven licensed brokers/salespersons of at least five consecutive years and two citizen members; terms are four years
• ✓Initial salesperson applicants need a high school diploma and a Principles course of at least four semester hours/60 hours
• ✓Initial broker applicants need a high school diploma and at least 12 semester hours of real estate courses
• ✓Reciprocity applicants currently licensed elsewhere must pass Virginia's examination
• ✓The Board may waive education/experience requirements when equivalent education/experience is found

If renewal requirements including the fee are not completed within 30 days of expiration, a reinstatement fee is required: 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 following expiration; after one year it cannot be reinstated and the applicant must meet all current education/exam requirements and apply as a new applicant.

• ✓Reinstatement fee applies if renewal is not completed within 30 days of expiration
• ✓A license may be reinstated for up to one year after expiration
• ✓After one year, the applicant must reapply as a new applicant meeting current requirements

A licensee may not perform activities defined in §§ 54.1-2100 and 54.1-2101 with an expired license. Any real estate activity conducted after the expiration date may constitute unlicensed activity subject to prosecution under Chapter 1 (§ 54.1-100 et seq.) of Title 54.1.

• ✓No regulated real estate activity may be conducted with an expired license
• ✓Activity after expiration may constitute unlicensed activity subject to prosecution

All reinstatement applicants must meet the requirements of 18VAC135-20-101. Those who want to activate must have completed the CE requirement to reinstate and activate. Applicants reinstating an inactive license are not required to complete CE.

• ✓Reinstatement applicants wanting to activate must have completed CE
• ✓Applicants reinstating an inactive license need not complete CE

A licensee is not liable for providing false information if it came from the client, a governmental entity, a nongovernmental source relying on a governmental entity, or a licensed/certified/registered professional—provided the licensee did not have actual knowledge it was false and did not act in reckless disregard of the truth. This covers regulatory and civil actions.

• ✓No liability for false information from clients, government, or qualified professionals if relied upon in good faith
• ✓Protection lost if licensee had actual knowledge of falsity or acted in reckless disregard of the truth
• ✓Applies to both regulatory actions and civil actions

A licensee is not liable for providing false information obtained from specified reliable sources, provided the licensee had no actual knowledge of falsity and did not act with reckless disregard.

• ✓Not liable if information came from the client, a governmental entity, a source relying on government info, or a licensed professional
• ✓Protection applies only if licensee lacked actual knowledge of falsity and did not act in reckless disregard of the truth
• ✓Applies to both regulatory actions and civil actions filed

The Real Estate Board has a defined membership structure, member qualifications, and term lengths, and must elect a chairman and adopt a seal.

• ✓The Board is composed of nine members: seven licensed brokers/salespersons (licensed at least five consecutive years) and two citizen members
• ✓Board member terms are four years
• ✓The Board elects a chairman from its membership and adopts a seal

Only qualifying claimants with unsatisfied judgments for improper/dishonest conduct may recover from the fund, subject to strict procedural conditions.

• ✓Claimant cannot be a regulant, personal representative of a regulant, spouse/child of the judgment regulant, or a lending/financial institution/developer
• ✓A verified claim must be filed with the Director no later than 12 months after entry of the final judgment from which no further appeal exists
• ✓Prior to submitting a claim, the claimant must conduct (or attempt) debtor's interrogatories and take all legally available actions to apply the judgment debtor's assets

If the debtor filed bankruptcy, the claimant must first pursue the bankruptcy court. The Board can determine improper/dishonest conduct even if the judgment order is silent.

• ✓If the debtor filed bankruptcy, the claimant must file a bankruptcy claim; if no/insufficient distribution, may file with the Board within 12 months of discharge or dismissal
• ✓A claimant is not denied recovery merely because the judgment order lacks a specific finding of improper/dishonest conduct
• ✓The Board may determine whether conduct meets the definition by substantial evidence in the verified claim; Board findings are a 'case decision' with judicial review under § 2.2-4025

New salespersons must complete a 30-hour post-license curriculum within the first year of licensure or their license is placed on inactive status. This replaces continuing education for new licensees.

• ✓New salespersons must complete at least 30 hours of post-license curriculum within one year from the last day of the month license was issued
• ✓Failure to complete results in the license being placed on inactive status until completed
• ✓Post-license education is in lieu of continuing education for new licensees
• ✓Curriculum includes contract writing, deposits, listing, leasing, agency, fair housing/flood, association law, landlord-tenant law, and board regulations

The Board sets minimum education for licensure. Salespersons and brokers must meet diploma and coursework requirements, with reciprocity applicants completing comparable courses and passing Virginia's exam.

• ✓Salesperson applicants need a high school diploma/equivalent and a 60-hour (4 semester hour) principles of real estate course
• ✓Broker applicants need a high school diploma/equivalent and not less than 12 semester hours of real estate courses
• ✓Reciprocity applicants must complete comparable coursework and, if currently licensed elsewhere, pass Virginia's examination
• ✓The Board may waive education/experience requirements if the applicant has equivalent education or experience
• ✓Noncollegiate institutions cannot grant collegiate semester hours for academic credit

The Recovery Act imposes strict monetary caps on claims per transaction, per claimant, and per regulant, with proration when claims exceed limits.

• ✓Aggregate claims from one regulant's conduct in a single transaction are limited to $50,000, prorated among claimants if exceeded
• ✓Maximum claim of one claimant against the fund for a single transaction is limited to $20,000 regardless of judgment amount or number of claimants
• ✓Aggregate claims against the fund from one regulant across more than a single transaction is limited to $100,000 during any biennial license period

Interest and punitive damages are excluded from recoverable claims, while court costs and attorney fees may be included. Claims are paid in the order filed when the fund is insufficient.

• ✓Excluded from claims: interest and punitive damages; may include court costs and attorney fees
• ✓If the fund is insufficient, claims are paid in the order filed with the Board once sufficient funds exist
• ✓Failure to comply with certain notice/service provisions is not a bar to recovery if the claimant is otherwise entitled

A complete record of financial transactions under the principal broker's Virginia license must be maintained at the place of business or designated branch. Records must show from whom money was received, date of receipt, place and date of deposit, and final disposition of funds.

• ✓Financial records must be maintained at place of business or designated branch
• ✓Records must show source, receipt date, deposit details, and final disposition

Brokers must retain brokerage agreements and disclosure/consent forms for three years from execution; executed contracts, leases, property management agreements, and settlement statements for three years from closing or ratification (if failed); and receipt/disbursement records for three years.

• ✓Brokerage agreements and consent disclosures retained three years from execution
• ✓Contracts, leases, and settlement statements retained three years from closing or ratification
• ✓All required records must be retained for three years

The board may deny reinstatement for (i) the same reasons it may refuse initial licensure or discipline a licensee; (ii) failure to meet the terms of a licensure agreement or board order; or (iii) failure to fully pay monetary penalties and costs plus accrued interest.

• ✓Reinstatement may be denied for the same reasons as refusing initial licensure
• ✓Reinstatement may be denied for failure to pay board penalties, costs, and accrued interest

Virginia Real Estate Board regulations must be consistent with this article. The common law of agency relative to brokerage relationships is abrogated to the extent inconsistent. The article does not limit antitrust laws. Required documents may be maintained as electronic records under the Uniform Electronic Transactions Act.

• ✓Real Estate Board regulations must be consistent with the article
• ✓Common law of agency is abrogated where inconsistent with the article
• ✓Records may be maintained electronically under the Uniform Electronic Transactions Act

Real Estate Board regulations must be consistent with the article, the common law of agency is abrogated where inconsistent, antitrust laws are not limited, and required records may be electronic.

• ✓Virginia Real Estate Board regulations must be consistent with this article
• ✓Common law of agency is expressly abrogated to the extent inconsistent with the article
• ✓The article does not limit or supersede federal or state antitrust laws
• ✓Required documents/records may be maintained electronically under the Uniform Electronic Transactions Act

All advertising must be under the 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 supervised by the principal or supervising broker
• ✓Firm's licensed name must be clearly and legibly displayed on all advertising

Electronic media advertising (email, web pages) must contain disclosure viewable on the main page or no more than one click away. For firms, disclosure includes firm's licensed name plus city/state of office. Electronic listings must be kept current and consistent with property description and actual status.

• ✓Electronic disclosure must be viewable on main page or one click away
• ✓Electronic listings must be kept current and consistent with actual status

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 (telephone number or web address).

• ✓Signs must include firm name and firm's telephone number
• ✓Business cards must include licensee name, firm name, and contact information

Prohibited: implying listed/advertised property is for sale by owner or unlicensed person; failing to include notice that owner is a licensee if licensee has ownership interest; failing to include firm name on outside signs; advertising a specific property without written owner consent; and failing to identify services when advertising by general description.

• ✓Must disclose in advertising if the owner/licensee has an ownership interest in the property
• ✓Must obtain written owner consent before advertising a specific identifiable property
• ✓Firm's licensed name must appear on any outdoor place-of-business sign

Brokers need 24 hours and salespersons need 16 hours of CE per licensing term, with specified required hours in ethics, fair housing, and legal topics. CE must be completed before renewal.

• ✓Brokers must complete not less than 24 hours of CE per licensing term, including 8 required hours (3 ethics, 2 fair housing, 3 legal updates), 8 supervision/management hours, and 8 electives
• ✓Salespersons must complete not less than 16 hours of CE per licensing term, including 8 required hours (3 ethics, 2 fair housing, 3 legal updates) and 8 electives
• ✓A licensee submitting a notarized affidavit certifying no residential practice may skip fair housing training but must receive other discrimination law training
• ✓CE must be completed before each renewal/reinstatement; classroom courses do not require testing
• ✓Military personnel on active duty may complete CE within six months of release

Active brokers and salespersons must complete specific continuing education hours each licensing term, with mandatory topic breakdowns including ethics and fair housing.

• ✓Active brokers must complete not less than 24 hours per licensing term (8 required hours including 3 ethics + 2 fair housing, 8 broker supervision/management hours, and 8 elective hours)
• ✓Active salespersons must complete not less than 16 hours per licensing term
• ✓Fair housing training must include updates on current cases and administrative decisions
• ✓A licensee submitting a notarized affidavit that he does not practice residential real estate may substitute other discrimination law training for fair housing training