§ 54.1-2105.01. Post-License Education Within One Year +19Virginia · Real Estate · English

All salespersons must complete a 30-hour post-license curriculum within one year of licensure or their license goes inactive. This replaces continuing education for the first year.

• ✓New salespersons must complete at least 30 hours of post-license education within one year from the last day of the month of license issuance
• ✓Failure to complete results in the license being placed on inactive status until completed
• ✓Curriculum covers topics like contract writing, handling deposits, agency, flood hazard areas, landlord-tenant law, and Board regulations
• ✓Post-licensure requirements are in lieu of continuing education requirements for new licensees

Payment from the fund requires the claimant to assign rights to the Board. The regulant's license is automatically revoked upon payment and cannot be reapplied for until repayment.

• ✓The Director pays the claimant only upon execution/delivery of an assignment of the claimant's rights against the regulant to the Board
• ✓Upon payment from the fund, the Board immediately revokes the license of the responsible regulant
• ✓The regulant is ineligible to reapply until repaying in full the amount paid from the fund plus interest at the judgment rate from the date of payment

The Board may intervene in proceedings against a regulant, and payment/repayment does not limit the Board's separate disciplinary authority.

• ✓Upon service of the complaint, the Board, Director, or authorized representatives may request leave of court to intervene
• ✓Nothing in the Recovery Act limits the Board's authority to take disciplinary action for violations
• ✓Repayment by a regulant of amounts paid from the fund does not nullify or modify the effect of any disciplinary proceeding

A licensee must disclose to an unrepresented actual/prospective buyer or seller (with whom the licensee has substantive discussions) whom the licensee represents. Disclosure must be in writing at the earliest practical time, no later than when specific real estate assistance is first provided.

• ✓Must disclose whom licensee represents to unrepresented parties in substantive discussions
• ✓Disclosure must be in writing no later than when specific assistance is first provided

A licensee acting as dual/designated agent or representative must obtain written consent from all clients at the earliest practical time. Consent is presumed when a client signs a disclosure complying with §§ 54.1-2139, 54.1-2139.01, and 54.1-2139.1. The buyer's consent must be obtained before an offer is presented, and the seller's before the offer is presented to them.

• ✓Dual/designated agents must obtain written consent from all clients
• ✓Buyer consent obtained before offer presented; seller consent before offer presented to seller
• ✓Combined disclosures must be conspicuous, bold, all caps, underlined, or boxed

A licensee must disclose in writing to an unrepresented landlord or tenant that the licensee has a brokerage relationship with another party. Disclosure must be included in the lease application or lease itself, whichever occurs first, and no later than lease signing. This does not apply to lease terms of less than two months.

• ✓Lease brokerage relationship disclosure must be in writing before or at lease signing
• ✓Disclosure requirement does not apply to lease terms of less than two months

Agency means a relationship where a licensee acts for a person by express authority. Licensees may act as agents or independent contractors, with different obligation sets defined by the brokerage agreement.

• ✓'Agency' means every relationship where a licensee acts for/represents a person by express authority unless a different legal relationship is agreed to in the brokerage agreement
• ✓A licensee acting as an independent contractor has only the obligations agreed to plus specified statutory subsections; otherwise no obligations under §§ 54.1-2131 through 54.1-2135
• ✓Any licensee representing a client in a residential agency relationship must represent them as either a standard agent or a limited service agent

A standard agent has full statutory obligations, while a limited service agent does not provide one or more of the standard duties but must provide certain mandatory disclosures.

• ✓A 'standard agent' has all obligations provided in the article plus any additional agreed obligations
• ✓A 'limited service agent' does not provide one or more duties set forth in subdivision A 2 but must provide required federal/state disclosures and specific written disclosures
• ✓Limited service agent must disclose in writing the client's rights/obligations under the Residential Property Disclosure Act, condominium resale certificate duties, and POA disclosure packet duties

Dual agents represent both parties in the same transaction; designated agents represent one client when a different client is represented by the same broker. Representatives act as independent contractors.

• ✓A 'dual agent/representative' has a brokerage relationship with both seller and buyer (or landlord and tenant) in the same transaction; a dual representative acts only as an independent contractor
• ✓A 'designated agent/representative' is assigned by the principal/supervising broker to represent a client when a different client is also represented by that broker; acts only as an independent contractor
• ✓A 'customer' is a person for whom a licensee performs ministerial acts but who has not entered a brokerage relationship; presumed a customer unless a brokerage relationship is entered

Commercial and residential real estate are distinctly defined, affecting which agency rules apply. Residential covers one to four dwelling units.

• ✓'Residential real estate' means property containing one to four residential dwelling units and the sale of lots containing one to four units
• ✓'Commercial real estate' means any real estate other than one-to-four residential units or property under § 58.1-3230; excludes single-family units leased unit-by-unit
• ✓'Ministerial acts' means routine acts not involving discretion or the licensee's own judgment

Licenses inactive more than three years require remedial education, though the Board may waive requirements for those who retained knowledge or served in the military. Identity proof is required before the state exam.

• ✓Licenses inactive more than three years require meeting current education requirements at reactivation
• ✓The Board may waive education requirements if the holder engaged in a knowledge-retaining occupation or is military assigned outside Virginia while staying current
• ✓The Board or its agent must require proof of identity before an applicant takes the state examination

The Board regulates real estate schools, sets application processing timelines for CE providers, and approves nationally developed course content.

• ✓The Board may regulate any school offering real estate courses except those regulated by another state agency
• ✓CE course applications must be acknowledged in writing within 10 calendar days and approved/disapproved within 75 calendar days
• ✓The Board must approve nationally published course titles/content/credit hours unless it determines in writing not to

A licensee engaged by a seller must perform per the brokerage agreement, promote the seller's interests, maintain confidentiality, exercise care, account for funds, and disclose material facts.

• ✓Must promote the seller's interests through marketing, drafting/negotiating offers, timely presenting all written offers/counteroffers, and facilitating settlement
• ✓Must maintain confidentiality of personal/financial information unless required by law or the seller consents in writing
• ✓Must exercise ordinary care, account for money/property in a timely manner, and disclose to the seller material facts of which the licensee has actual knowledge
• ✓Must comply with the article, all fair housing statutes/regulations, and other applicable laws not in conflict

A seller's agent must treat prospective buyers honestly and disclose known material adverse facts about the physical condition of the property, including defective drywall.

• ✓Licensees must treat all prospective buyers honestly and not knowingly give false information
• ✓Must disclose in writing all material adverse facts pertaining to the physical condition of the property that are actually known, including defective drywall as defined in § 36-156.1
• ✓'Physical condition of the property' does not include matters outside the boundaries, adjacent properties, land use regulations, or highways/public streets

A seller's agent may assist buyers with ministerial acts without forming a brokerage relationship and may represent other sellers without breaching duties.

• ✓Performing ministerial acts for a buyer (not inconsistent with statutory duties) does not violate the brokerage agreement or form a brokerage relationship with the buyer
• ✓A seller's agent does not breach any duty by showing alternative properties to prospective buyers or representing other sellers
• ✓No cause of action arises against a licensee for revealing information required by the article or applicable law

A seller's agent must perform per the brokerage agreement, promote the seller's interests, maintain confidentiality, exercise ordinary care, account for money, and disclose material facts. Buyers must be treated honestly.

• ✓Must promote the seller's interests, present all written offers/counteroffers timely even when under contract, and exercise ordinary care
• ✓Must maintain confidentiality of client information unless required by law or with written consent
• ✓Must treat all prospective buyers honestly and disclose all known material adverse facts about the physical condition of the property in writing
• ✓Must disclose known defective drywall to prospective buyers
• ✓Performing ministerial acts for a buyer does not create a brokerage relationship or violate the seller's brokerage agreement

The Board may order unlicensed persons to cease and desist and impose civil penalties for unlicensed real estate activity, with penalties paid to the Literary Fund.

• ✓The Board may issue a cease and desist order effective on entry, becoming final unless appealed within 21 days
• ✓The Board may impose a civil penalty not to exceed $1,000 per transaction or the compensation received, whichever is greater
• ✓Penalties are paid to the Literary Fund after deduction of administrative costs

A licensee must produce requested records (signature cards, bank records, transaction documents) to the board or its agents within 10 days of the request. The board may extend for extenuating circumstances. A licensee must respond to any other board inquiry within 21 days.

• ✓Records must be produced to the board within 10 days of request
• ✓Other board inquiries must be responded to within 21 days

On renewal of a firm or sole proprietorship license, the broker must certify an audit of operations, policies, and procedures for compliance, retaining the audit form on premises.

• ✓The principal or supervising broker must certify at renewal that the firm's operations, policies, and procedures were audited for compliance
• ✓The audit must be conducted at least once during each term of licensure
• ✓The completed signed audit form must be kept on premises and produced upon request by a board agent

Performing even one act of buying, selling, exchanging, leasing, or renting real estate for another for compensation makes a person a broker or salesperson, subject to statutory exceptions.

• ✓One act for compensation of buying/selling/exchanging/leasing/renting real estate for another constitutes broker or salesperson activity
• ✓Exceptions under § 54.1-2103 apply

Licensees may not divert or misuse escrow funds. If a licensee cannot protect funds, the Board may petition a court to enjoin activity and appoint a receiver.

• ✓No licensee or agent may divert or misuse funds held in escrow or for another
• ✓The Board may petition a court of equity to enjoin activity and appoint a receiver when interests are threatened
• ✓If a licensee is found without fault and no violations occurred, the receiver's expenses and fees are paid by the Board

In foreclosure situations, licensees have interpleader rights, can disburse earnest money to non-defaulting purchasers, and must handle security deposits and rents according to statutory timelines.

• ✓Foreclosure of a single-family unit deems the purchase contract terminated, allowing disbursement of earnest money to a non-defaulting purchaser without further consent
• ✓Rent, security deposits, and application deposits must be placed in escrow by the end of the fifth business banking day following receipt/approval
• ✓A managing agent must give a tenant occupying a foreclosed unit purchased for owner-occupancy at least 90 days written notice
• ✓Foreclosure converts a property management agreement into a month-to-month agreement terminable on 30 days written notice
• ✓A managing agent complying with the section has immunity absent gross negligence or intentional misconduct

Earnest money must be placed in escrow within five business banking days of ratification and held until the transaction is consummated or terminated, with specific procedures for disputed disbursements.

• ✓Earnest money must be placed in escrow by the end of the fifth business banking day following ratification
• ✓Upon non-consummation, funds are held until written agreement, court order, interpleader, or release per the contract's clear terms
• ✓A broker may send written notice that funds will be released unless a written protest is received within 15 calendar days
• ✓A broker who complies with the section is immune from liability to the parties to the contract

Resident brokers must maintain a Virginia place of business. Each office, branch, and team requires a supervising broker who must provide reasonable and adequate supervision as defined.

• ✓Every resident real estate broker must maintain a place of business in Virginia
• ✓Each place of business, branch office, and real estate team must be supervised by a supervising broker
• ✓Reasonable supervision includes availability to review documents, written policies on escrow/fair housing/advertising/contracts, and compliance oversight
• ✓Supervision records must be maintained for three years and furnished on request
• ✓A supervising broker residing more than 50 miles from a branch must certify compliance in writing quarterly

Nonresident applicants must consent to service of process on the DPOR Director. Brokers may use audits and voluntary compliance programs to correct noncompliance and gain immunity.

• ✓Nonresident applicants must file irrevocable consent for service of process on the DPOR Director
• ✓A broker discovering noncompliance via audit must notify the Board within 30 days and submit a compliance plan completed within 90 days
• ✓Certification of compliance grants immunity from enforcement unless noncompliance was intentional or grossly negligent

The Virginia Real Estate Transaction Recovery Fund compensates claimants for improper or dishonest conduct. Regulants are assessed to maintain a minimum fund balance.

• ✓'Improper or dishonest conduct' includes only wrongful/fraudulent taking or conversion of money/property or material misrepresentation or deceit
• ✓Each initial regulant is assessed $20 at licensure, assigned to the fund
• ✓The minimum fund balance is $400,000; no regulant is assessed more than $20 per biennial license period
• ✓When the fund exceeds $2 million at fiscal year close, the excess is transferred to the Virginia Housing Trust Fund
• ✓Failure to pay an assessment leads to automatic license suspension

Claimants with unsatisfied judgments for improper conduct may recover from the fund subject to procedural conditions and monetary caps per claimant, transaction, and biennial period.

• ✓A verified claim must be filed no later than 12 months after entry of the final judgment from which no appeal exists
• ✓Maximum recovery for one claimant against one regulant in a single transaction is $20,000
• ✓Aggregate claims for one regulant in a single transaction are limited to $50,000 (prorated if exceeded)
• ✓Aggregate claims for one regulant across multiple transactions are limited to $100,000 per biennial period
• ✓Interest and punitive damages are excluded, but court costs and attorney fees may be included

Payment from the fund requires assignment of the claimant's rights and results in automatic revocation of the regulant's license until full repayment with interest.

• ✓The claimant must assign rights against the regulant to the Board to the extent satisfied from the fund
• ✓Payment from the fund results in immediate revocation of the regulant's license
• ✓The regulant may not reapply for a license until repaying the fund in full plus interest at the judgment rate
• ✓Fund payment does not waive or limit the Board's authority to take disciplinary action

This section defines agency relationships, standard vs. limited service agents, dual and designated representatives, clients versus customers, and commercial versus residential real estate.

• ✓A residential agency licensee must represent the client as either a standard agent or a limited service agent
• ✓A 'dual agent/representative' has a brokerage relationship with both parties in the same transaction; a dual representative acts only as an independent contractor
• ✓A 'designated agent/representative' is assigned to represent a client when another client is also represented in the same transaction and acts only as an independent contractor
• ✓A 'customer' has not entered a brokerage relationship and is presumed a customer rather than a client
• ✓A 'limited service agent' does not provide one or more standard duties but must still provide required disclosures
• ✓'Commercial real estate' excludes real estate with one to four residential units