Virginia Real Estate Board Regulations (effective April 1, 2008)

by Lem Marshall
VAR Special Counsel

(All references are to 18 VAC 135-20)

• 18 VAC 135-20-10: Defines "actively engaged in the brokerage business" to include everyone holding an active license.

• -30 and -60: Amends the requirements for initial licensure and licensure by reciprocity to include a high school diploma or equivalent; clarifies the disclosures required concerning convictions for criminal activity and limits the disclosure period for misdemeanor convictions to those occurring during the preceding five years.

• -100 and -101: Incorporates last year's changes regarding educational requirements for license renewal.

• -105: Requires salespersons licensed by reciprocity to take the state portion of the salesperson's exam when upgrading to broker's license before renewal.

• -160: Requires posting branch office license and roster of agents in a conspicuous place in each branch office. (This changes the previous requirement that such license and roster be available to the public.) Also imposes important new supervision requirements on brokers:

§ Review and approve all documents, including leases, contracts, brokerage agreements, advertising;

§ Be available in timely manner to supervise management of brokerage services;

§ Ensure that brokerage services are carried out competently and in accordance with the law;

§ Take reasonable steps to ensure compliance by all licensees assigned to the branch office;

§ If the broker is located more than 50 miles from the branch, broker must certify compliance with REB regulations by quarterly report to REB;

§ Maintain records for three years.  

• -170: Requires licensee professional name to include first or last name and not include any titles.

• -180: Expands broker obligations to report escrow violations; now requires reporting of any violation of board's escrow regulations.

• -190: Requires online listings to be kept current and consistent. Listing information must be consistent with description and status of listing, must be updated in a timely manner, and must state clearly the date of last update.

• -210: Extends broader requirements regarding disclosure of interest to all transactions in which the licensee is a party.

• -220: Amends disclosure of brokerage relationship requirements for short-term leases.

• -280: Requires salespersons or associate brokers to obtain the prior written consent of the broker before (a) using information about the firm's clients, properties or transactions, or (b) being employed by a settlement service provider providing services to clients of the firm.

• -300: Expands requirement to include terms of transactions in written agreements to property management agreements, and tightens rules regarding misrepresentation.

• -345: Allows the board to suspend, revoke, or refuse to renew any or all licenses held by a broker as a result of a disciplinary action.

• -360: Amends provisions for pre-licensure instructor qualifications and proprietary school and course requirements.

• -370: Amends provisions for renewal of proprietary school and instructor certificates.

• -390: Amends provisions by which the board may withdraw its education approval.