Virginia Real Estate Broker Exam - State Portion

Key Concepts

Entry qualifications. Salesperson applicants need a high school diploma or equivalent and a principles of real estate course of at least four semester hours but not less than 60 hours of instruction (§ 54.1-2105(B); course content, 18VAC135-20-400). Broker applicants need a diploma or equivalent plus not less than 12 semester hours of real estate courses (§ 54.1-2105(B)), with brokerage as a required specific course of three semester hours or six quarter hours but at least 45 class hours (18VAC135-20-410 A). Broker applicants must have been actively engaged as a salesperson 36 of the 48 months immediately preceding application, verified by the principal or supervising broker (18VAC135-20-35 C). The written exam must be passed within 12 months prior to submitting a complete application (18VAC135-20-35 D). All applicants submit to fingerprinting and disclose all felony convictions plus misdemeanors involving fraudulent or dishonest acts, sexual offense, non-marijuana drug distribution, or battery within five years of application (18VAC135-20-30).

Entity and team licensing. A real estate team is two or more individuals who (i) work together as a unit within the same brokerage firm, (ii) represent themselves to the public as one unit, and (iii) designate themselves by a fictitious name (§ 54.1-2100); no group may act as a team without first obtaining a business entity salesperson's license (§ 54.1-2106.1(D)). Business entities register trade or fictitious names with the State Corporation Commission (18VAC135-20-45 2). Concurrent…

Key Concepts

Opening and naming the account (18VAC135-20-181 A 1). If money is to be held in escrow, each firm or sole proprietorship must maintain one or more federally insured escrow accounts into which all funds received in connection with a real estate transaction must be deposited. - The account must be in the name by which the firm or sole proprietorship is licensed (A 1 a) — not the broker's personal name. A firm that operates under a fictitious name must still establish the account in the name by which it is licensed. - The principal broker is responsible for these accounts, including having signatory authority on them (A 1 b); the supervising broker and any other licensee with signatory authority may also be held responsible (A 1 c). - All such accounts, checks, and bank statements must be labeled "escrow," and the accounts must be designated as "escrow" with the financial institution (A 1 d). - The balance must be sufficient at all times to account for all funds designated to be held (A 1 e). - A broker failing to have signatory authority on all accounts is a failure to safeguard the public's interests (18VAC135-20-260 11 d).

Key Concepts

Residential Property Disclosure Act — scope and exemptions - The Act applies only to transfers by sale, exchange, installment land sales contract, or lease with option to buy of residential real property of not less than one nor more than four dwelling units, whether or not a licensed broker or salesperson assists (§ 55.1-701). - Transfers involving the first sale of a dwelling are excluded, but that exemption does not apply to the disclosures required by § 55.1-704 (§ 55.1-702(A)(9)). Notwithstanding the first-sale exemption, the builder of a new dwelling shall disclose in writing all known material defects that would constitute a violation of any applicable building code (§ 55.1-702(B)). If no defects are known to the builder, no written disclosure is required under that subsection. - Notwithstanding the § 55.1-702 exemptions, an owner with actual knowledge of a pending Uniform Statewide Building Code enforcement action of which the locality gave written notice, or of an unabated local zoning ordinance violation, must disclose in writing on a Real Estate Board form (§ 55.1-706).

Key Concepts

Brokerage agreements (§ 54.1-2130; § 54.1-2137) - A "brokerage agreement" is the written agreement creating a brokerage relationship, and it must state whether the licensee will represent the client as an agent or an independent contractor (§ 54.1-2130). - Brokerage agreements must be in writing and have a definite termination date. If no definite termination date is specified, the agreement terminates 90 days after the date of the brokerage agreement (§ 54.1-2137 C). The same 90-day default applies to residential property management agreements under § 54.1-2135 E. - A brokerage agreement is required before providing brokerage services, except that a licensee need not have one before preparing property-specific materials with the intent to obtain a brokerage relationship (§ 54.1-2137 B). - A licensee engaged by a buyer must enter into a brokerage agreement with the prospective buyer prior to showing property to that buyer (§ 54.1-2132 A 1; tenants, § 54.1-2134 A 1).

Residential property management agreements (§ 54.1-2135 E) must be in writing and state: a definite termination date or duration; the amount of management fees and how and when paid; the services to be rendered; and such other terms as the owner and property manager agree to. Specific rental rates are not a required term.

Key Concepts

Protected classes. Race, color, religion, national origin, sex, elderliness, familial status, source of funds, sexual orientation, gender identity, military status, and disability (§ 36-96.1 B; 18VAC135-50-50; 18VAC135-50-80). Marital status is not on the list.

Definitions (§ 36-96.1:1). "Elderliness" means an individual who has attained his fifty-fifth birthday. "Familial status" covers individuals under 18 domiciled with a parent or legal custodian (or that person's written designee), plus a pregnant person or one in the process of securing legal custody. "Disability" excludes current, illegal use of or addiction to a controlled substance. An "assistance animal" is not required to be individually trained or certified and is not a pet. "Source of funds" means any source lawfully providing funds to or on behalf of a renter or buyer, including any assistance, benefit, or subsidy program.

"Person in the business of selling or renting dwellings" (18VAC135-50-10). Participated as principal in three or more transactions in the preceding 12 months; or as agent in two or more (other than sale of his own personal residence); or owns a dwelling designed for or occupied by five or more families.

Key Concepts

Condominium Act — creation, alteration, termination - Amendment of instruments: If any unit is restricted exclusively to residential use and there is any unit owner other than the declarant, the instruments may be amended only by agreement of owners of units to which two-thirds of the votes appertain, or a larger majority if the instruments specify (§ 55.1-1934(B)). If there is no unit owner other than the declarant, the declarant may amend unilaterally, effective on recordation (§ 55.1-1934(A)). An action challenging the validity of an association-adopted amendment may not be brought more than one year after the amendment is recorded (§ 55.1-1934(C)). - Termination: Except for a taking of all units by eminent domain, where a unit is restricted exclusively to residential use and there is a unit owner other than the declarant, termination requires agreement of owners holding four-fifths of the votes, or a larger majority if the instruments so specify (§ 55.1-1937(B)). - Merger/consolidation: Must be approved by owners of units to which are allocated the percentage of votes in each condominium required to terminate that condominium; the agreement must be recorded in every locality where part of the condominium lies and is not effective until recorded (§ 55.1-1936(B)). - Subdivision of units: Only if the instruments expressly permit (§ 55.1-1933(A)). New plats must be certified as to accuracy and compliance by a licensed land surveyor; plans by…