Virginia Real Estate Salesperson

Key Concepts

Entry and qualifications - Initial salesperson license: high school diploma or equivalent plus a principles of real estate course of at least four semester hours but not less than 60 hours of classroom, correspondence, or distance learning instruction (§ 54.1-2105(B)). - Every applicant must submit to fingerprinting and disclose all felony convictions plus misdemeanor convictions involving fraudulent or dishonest acts, sexual offense, non-marijuana drug distribution, or battery within five years of the application date (18VAC135-20-30). - Initial applicants must have passed the written examination within 12 months prior to submitting a complete application (18VAC135-20-35 D). - A business entity salesperson/broker applicant must be organized under Virginia law or authorized to transact business here and must register trade or fictitious names with the State Corporation Commission (18VAC135-20-45 2). - No group of brokers or salespersons may act as a real estate team without first obtaining a business entity salesperson's license from the Board (§ 54.1-2106.1(D)).

License maintenance - Failure to complete the 30-hour post-licensure curriculum within one year from the last day of the month the license was issued places the license on inactive status until completed (§ 54.1-2105.01(A)). - Active salespersons: not less than 16 hours of instruction each licensing term (11 required, 5 elective); active brokers: 24 hours (§ 54.1-2105.03(A)). - Remedial education applies to any salesperson or broker inactive more than three years (§ 54.1-2105.04(A)); a licensee not…

Key Concepts

Account setup and labeling — 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. - A 1 a: the account must be in the name by which the firm or sole proprietorship is licensed. - A 1 b: the principal broker is responsible for these accounts, including having signatory authority. - A 1 c: the supervising broker and any other licensee with signatory authority may also be held responsible. - A 1 d: all such accounts, checks, and bank statements must be labeled "escrow," and the accounts must be designated as "escrow" accounts with the financial institution. - A 1 e: the balance must be sufficient at all times to account for all funds designated to be held by the firm or sole proprietorship.

What goes into escrow — 18VAC135-20-181 A 2 a. Down payments, earnest money deposits, money received upon final settlement, application deposits, rental payments, rental security deposits, money advanced by a buyer or seller for closing expenses, and money advanced by the broker's client or any other person must be deposited into an escrow account, in accordance with relevant law, unless all principals to the transaction have agreed otherwise in writing.

Key Concepts

Brokerage relationships (Va. Code Title 54.1, Ch. 21) - Brokerage agreements must be in writing with a definite termination date; with no definite date, the agreement terminates 90 days after its date (§ 54.1-2137(C)). The same 90-day default applies to residential property management agreements (§ 54.1-2135(E)). - A licensee engaged by a buyer must enter into a brokerage agreement before showing property to that prospective buyer (§ 54.1-2132(A)); "showing property" includes taking a buyer through a property or providing brokerage services while there (§ 54.1-2130). - A licensee engaged by a buyer in a residential transaction must disclose to the seller whether the buyer intends to occupy the property as a principal residence; the buyer's statement of intent in the contract satisfies this, and no cause of action arises against the licensee (§ 54.1-2132(B)). - Copies of disclosures relating to fully executed purchase contracts must be kept three years, whether or not the party acknowledged them in writing (§ 54.1-2138(D)). - Written disclosure of a brokerage relationship to an unrepresented landlord or tenant must be in the lease application or lease, but does not apply to residential units leased for terms of less than two months (§ 54.1-2138(B); 18VAC135-20-220 B 2). - A dual representation disclosure does not comply if it is unsigned by the client or given in a purchase agreement, lease, or other transaction document — it must…

Key Concepts

Definitions (§ 54.1-2130). A client has a brokerage relationship; a customer has not, and a person is presumed a customer unless a brokerage relationship is entered into. A dual agent has an agency relationship under the brokerage agreements with both clients; a dual representative has an independent contractor relationship and shall only act as an independent contractor. A designated agent/representative is assigned by a principal or supervising broker to represent a client when a different client is also represented by that broker in the same transaction. "Commercial real estate" excludes single family residential units — condominiums, townhouses, apartments, or homes in a subdivision — leased on a unit-by-unit basis, even if part of a building or parcel with more than four residential units.

Brokerage agreements (§ 54.1-2137). Must be written with a definite termination date; if none is specified, the agreement terminates 90 days after the date of the brokerage agreement. Under § 54.1-2137 B, no agreement is needed before preparing property-specific materials with intent to obtain a brokerage relationship. Under § 54.1-2137 D, after termination the only surviving duties (absent written agreement otherwise) are to account for moneys and property and to keep confidential information confidential.

Key Concepts

Protected classes. Virginia policy prohibits discrimination based on race, color, religion, national origin, sex, elderliness, familial status, source of funds, sexual orientation, gender identity, military status, or disability (Va. Code § 36-96.1 B; 18VAC135-50-50).

Key definitions (§ 36-96.1:1). - "Elderliness" = an individual who has attained his fifty-fifth birthday. - "Familial status" = one or more individuals under 18 domiciled with a parent/legal custodian or designee; also includes a pregnant person or one in the process of securing legal custody. - "Disability" = a physical or mental impairment substantially limiting a major life activity, a record of such impairment, or being regarded as having one; it does not include current, illegal use of or addiction to a controlled substance. - "Assistance animal" works, assists, or provides emotional support for a person with a disability; it is not required to be individually trained or certified and is not a pet. - "Source of funds" = any source that lawfully provides 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 within the preceding 12 months as principal in three or more sale/rental transactions; or as agent in two or more (other than sale of his own personal residence); or owns a dwelling designed or occupied by five or more families.

Key Concepts

Creating, amending, terminating a condominium

• Amendment of condominium instruments: if any unit is restricted exclusively to residential use and there is any unit owner other than the declarant, amendment requires agreement of unit owners holding two-thirds of the votes in the unit owners' association, or a larger majority if the instruments specify, except where the chapter provides a different method (§ 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)).
• Challenge window: an action to challenge the validity of an amendment adopted by the association may not be brought more than one year after the amendment is recorded (§ 55.1-1934(C)).
• Protected items: no amendment may change unit boundaries, the undivided interest in the common elements, liability for common expenses, or the number of votes appertaining to a unit, except as expressly permitted/required by the chapter or agreed to by 100 percent of the unit owners (§ 55.1-1934(E)).
• Corrective amendment: the declarant may unilaterally record a corrective amendment for a mathematical mistake, inconsistency, scrivener's error, or ambiguity as to an objectively verifiable fact — including recalculating undivided interests, common expense liability, or votes — within five years after recordation of the instrument containing the error, and it may not materially reduce the declarant's obligations (§ 55.1-1934(F)).
• Termination: except for a taking of all units…