Broker’s Supervisory Requirements

Each place of business, each branch office, and each real estate team shall be supervised by a supervising broker. The supervising broker shall exercise reasonable and adequate supervision of the provision of real estate brokerage services by associate brokers and salespersons assigned to the branch office or real estate team.
 

1. The availability of the supervising broker to all licensees under the supervision of the broker to review and approve all documents, including leases, contracts affecting the firm's clients, brokerage agreements, and advertising;

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2. The availability of training and written procedures and policies that provide, without limitation, clear guidance in the following areas:

  a. Proper handling of escrow deposits;

  b. Compliance with federal and state fair housing laws and regulations if the firm engages in residential brokerage, residential leasing, or residential property management;

  c. Advertising;

  d. Negotiating and drafting of contracts, leases, and brokerage agreements;

  e. Use of unlicensed individuals;

  f. Agency or independent contractor relationships;

  g. Distribution of information on new or changed statutory or regulatory requirements;

  h. Disclosure of matters relating to the condition of the property

 

3. The availability of the supervising broker in a timely manner to supervise the management of the brokerage services;

 

5. The supervising broker undertakes reasonable steps to ensure compliance by all licensees assigned to the branch office, including ensuring the licensees have an active, current license;

 

6. The supervising broker undertakes reasonable steps to ensure only licensees undertake activities requiring a license, including:

  a. Show property;

  b. Hold an open house;

  c. Answer questions on listings, title, financing, closing, contracts, brokerage agreements, and legal documents;

  d. Discuss, explain, interpret, or negotiate a contract, listing, lease agreement, or property management agreement with anyone outside the firm; and

  e. Negotiate or agree to any commission, commission split, management fee, or referral fee.​

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Improper Financial Transactions 

• Offering to pay, paying, or providing valuable consideration to any person not licensed in this or any jurisdiction for services that require a real estate license.

• Accepting a commission, fee, compensation, or other valuable consideration, as a real estate salesperson or associate broker, for any licensed real estate activity from any person or entity except the licensee's principal broker or supervising broker at the time the licensed real estate activity was performed without the prior written consent of the licensee's principal broker.

• Receiving financial benefit from the use of any information about the property, the licensed real estate activity, or the parties to the transaction, when the information is gained as a result of the performance of licensed real estate activity without the prior written consent of the licensee's principal broker, the clients, and, when applicable, the parties to the transaction.

• Receiving financial benefit or other valuable consideration for any work or service related to a transaction without the prior written acknowledgment of the person paying for such work or service.

• Making a listing contract or lease which provides for a "net" return to the seller or lessor, leaving the licensee free to sell or lease the property at any price the licensee can obtain in excess of the "net" price named by the seller or lessor.

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Improper Dealing - Offering real property for sale or for lease without the knowledge and consent of the owner or the owner's authorized representative without taking reasonable steps to verify identity, or on any terms other than those authorized by the owner or the owner's authorized representative.

     

Record keeping requirements

The settlement agent shall retain records pertaining to each settlement handled for a minimum of five years after the settlement is completed. The appropriate licensing authority may prescribe the specific record entries and documents to be kept.

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Real Estate Activities requiring license

• Showing properties;

• Holding an open house;

• Answering questions on listings, title, financing, contracts, brokerage agreements, legal documents;

• Discussing, explaining, interpreting, or negotiating a contract, listing, lease agreement, or property management agreement with anyone outside the firm; and

• Negotiating or agreeing to any commission, commission split, management fee, or referral fee.

 

Post-License Education (PLE) Curriculum

Section 54.1-2105.01 of the Code of Virginia requires all active new salesperson licensees to complete a Board-approved 30-hour post-license education (PLE) curriculum within one year from the last day of the month in which the license was issued in order to remain on active status.  

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Failure to complete these 30 hours of PLE within the one year will result in automatic placement of your license on inactive status. 

1. Fair Housing, ADA and Civil Rights (2 hours)

2. Real Estate Law and Regulations (6 hours) 

3. Ethics and Standards of Conduct (3 hours)

4. Current Industry Issues and Trends (2 hours)

5. Agency Law (3 hours)

6. Contract Writing (6 hours)

7. Risk Management (3 hours)

8. Escrow Requirements (3 hours)

9. Real Estate-Related Finance (2 hours)

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Continuing education

Experienced Salespersons must complete 16 hours of Continuing Education to renew their licenses. Of these 16 hours, renewing experienced salespersons must take:

• Three (3) hours in Ethics & Standards of Conduct;

• Two (2) hours in Fair Housing;

• One (1) hour in Legal Updates and Emerging Trends;

• One (1) hour in Real Estate Agency; and

• One (1) hour in Real Estate Contracts.

 

The remaining 8 hours for both brokers and experienced salespersons may be in Real Estate Related Subjects (electives) or in the required Continuing Education subjects already referenced. These Continuing Education requirements also apply to inactive brokers and experienced salespersons who apply to activate their licenses.
 

License transfer
Any inactive licensee may activate that license with a licensed real estate firm or sole proprietorship by completing an activate form prescribed by the board. A licensee who submits an activate application to the board shall not conduct business with the real estate firm or sole proprietorship set forth in the application until the application is processed and the license is issued by the board.

   

Informing Board of changes

Salespersons and individual brokers shall at all times keep the board informed of their current name and home address. Changes of name and address must be reported to the board in writing within 30 calendar days of such change.