Virginia Law

Chapter 20. Virginia Real Estate Board Licensing Regulations

Part I
General

18VAC135-20-10. Definitions.

The following words and terms when used in this chapter have the following meanings unless a different meaning is provided or is plainly required by the context:

"Accredited university, college, community college, or educational institution" means (i) institutions of higher learning approved by the State Council of Higher Education for Virginia; (ii) those institutions listed in the Transfer Credit Practices of Designated Educational Institutions, published by the American Association of Collegiate Registrars and Admissions Officers; or (iii) any state-accredited secondary school that offers adult distributive education courses.

"Active" means any broker or salesperson, who is in good standing, who is under the supervision of a principal or supervising broker of a firm or sole proprietor, and who is performing those activities defined in § 54.1-2100 of the Code of Virginia.

"Actively engaged" means active licensure with a licensed real estate firm or sole proprietorship in performing those activities as defined in § 54.1-2100 of the Code of Virginia for an average of at least 40 hours per week.

"Advertising" means all communication disseminated through any medium to consumers for any purpose related to licensed real estate activity.

"Affiliated licensee" means any broker, salesperson, business entity, or real estate team that has an active license.

"Another state" means the same as the term is defined in § 54.1-205 of the Code of Virginia.

"Application deposit" means the same as the term is defined in § 55.1-1200 of the Code of Virginia.

"Associate broker" means any individual licensee of the board holding a broker's license other than one who has been designated as the principal broker.

"Board" means the Real Estate Board.

"Branch office" means the same as the term is defined in § 54.1-2100 of the Code of Virginia.

"Brokerage relationship" means the same as the term is defined in § 54.1-2130 of the Code of Virginia.

"Brokerage services" means the same as the term is defined in § 54.1-2130 of the Code of Virginia.

"Class hour or clock hour" means 50 minutes of instruction.

"Client" means a person who has entered into a brokerage relationship with a licensee as defined by § 54.1-2130 of the Code of Virginia.

"Contact information" means telephone number, email address, or web address of the firm or branch office, or a digital link thereto when used in digital advertising.

"Cooperating broker" means the broker representing the client on the other side of the existing or contemplated real estate transaction.

"Firm" means any business entity or sole proprietorship (nonbroker owner) that transacts real estate business required by 18VAC135-20-20 B to obtain a separate brokerage firm license.

"Inactive status" means any broker or salesperson who is not under the supervision of a principal broker or supervising broker and who is not performing any of the activities defined in § 54.1-2100 of the Code of Virginia.

"Independent contractor" means a licensee who acts for or represents a client other than as a standard agent and whose duties and obligations are governed by a written contract between the licensee and the client.

"Licensee" means real estate brokers and salespersons as defined in Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or real estate firms.

"MLS" means Multiple Listing Service.

"Neighboring state" means the same as the term is defined in § 54.1-205 of the Code of Virginia.

"Place of business" means the same as the term is defined in § 54.1-2100 of the Code of Virginia.

"Principal broker" means the individual broker designated by each firm to ensure compliance with Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia and this chapter and to receive communications and notices from the board regarding such compliance. In the case of a sole proprietorship, the licensed broker who is the sole proprietor is the principal broker.

"Principal to a transaction" means a party to a real estate transaction, including a seller or buyer, landlord or tenant, optionor or optionee, or licensor or licensee. For the purposes of this chapter, the listing or selling broker are not by virtue of their brokerage relationship principals to the transaction.

"Proprietary school" means (i) a privately owned school, (ii) a real estate professional association, or (iii) a related entity, which is not under the authority of the Department of Education, but approved by the board to teach real estate courses.

"Provider" means an (i) accredited university, college, community college; (ii) a high school offering adult distributive education courses; or (iii) a proprietary school.

"Sole proprietor" means any individual who is trading under the individual's name or under an assumed or fictitious name pursuant to the provisions of Chapter 5 (§ 59.1-69 et seq.) of Title 59.1 of the Code of Virginia.

"Standard agent" means a licensee who acts for or represents a client in an agency relationship. A standard agent will have the obligations as provided in Article 3 (§ 54.1-2130 et seq.) of Chapter 21 of Title 54.1 of the Code of Virginia.

"Supervising broker" means (i) the individual broker designated by the principal broker to supervise the provision of real estate brokerage services by the associate brokers and salespersons assigned to branch offices or real estate teams; or (ii) the broker, who may be the principal broker, designated by the principal broker to supervise a designated agent as stated in § 54.1-2130 of the Code of Virginia.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 1.1, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 35, Issue 17, eff. June 1, 2019; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 4, eff. November 5, 2025; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-13. General fee requirements.

A. All fees are nonrefundable and will not be prorated. The date of receipt by the board or its agent is the date that will be used to determine whether a fee is on time.

B. The fee for examination is subject to contracted charges to the board by an outside vendor. These contracts are competitively negotiated and bargained for in compliance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia). Fees may be adjusted and charged to the candidate in accordance with these contracts.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-15. Fee schedule.

The following fees apply:

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

Part II
Entry

18VAC135-20-20.  Requirements for firm license.

A. Sole proprietor (principal broker owner). In accordance with § 54.1-2106.1 of the Code of Virginia, broker owned sole proprietorships are not required to hold a firm license. An individual operating under a fictitious or assumed name must register any trade or fictitious names with the State Corporation Commission in accordance with Chapter 5 (§ 59.1-69 et seq.) of Title 59.1 of the Code of Virginia and must provide the address for the individual's residence and address for the individual’s place of business.

B. Sole proprietor (nonbroker owner), partnership, association, limited liability company, or corporation.

1. Every firm must secure a firm license before transacting real estate business. This license is separate and distinct from the licenses required of the individuals or business entities who are active in the firm's brokerage business.

2. Each applicant must disclose the name under which the applicant holds itself out to the public. Firms must register any trade or fictitious names with the State Corporation Commission in accordance with Chapter 5 of Title 59.1 (§ 59.1-69 et seq.) of the Code of Virginia.

3. Each applicant must disclose the address of the place of business for the firm.

4. Firms must be organized as business entities under the laws of the Commonwealth of Virginia or otherwise authorized to transact business in Virginia.

C. Each real estate firm is required to have a principal broker whose license is active.

D. Branch office license in accordance with § 54.1-2106.1 of the Code of Virginia. If a principal broker maintains more than one place of business within the state, the principal broker must secure a branch office license for each additional place of business maintained other than the broker's primary place of business noted on the firm license application.

1. No branch office license will be required for:

a. A location that the principal broker or those employed by or affiliated as an independent contractor with the principal broker does not own, lease, or maintain exclusive access to, maintenance of, and control of, unless it is held out to the public as a location where such persons or entities are regularly engaging in the activities of a real estate broker or salesperson;

b. A motor vehicle or watercraft;

c. A place that is solely devoted to advertising real estate matters of a general nature or to making a real estate broker's business name generally known, such as a trade show or expo;

d. A residence, unless it is held out to the public as a location where the principal broker or those employed by or affiliated as an independent contractor with the principal broker is regularly engaging in the activities of a real estate broker or salesperson;

e. A post office box, mail drop location, or other similar facility; or

f. A public location, such as a coffee shop or restaurant.

2. Each application must disclose the name of the firm, the location of the branch office, and the name of the supervising broker for that branch office.

3. The branch office license must be maintained at the branch office location.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 2.1, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015; Volume 36, Issue 15, eff. May 1, 2020; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-30. Qualifications for individual licensure.

Every applicant to the board for an individual salesperson or broker license must have the following qualifications:

1. The applicant must be at least 18 years of age.

2. The applicant must have a high school diploma or equivalent.

3. The applicant must report any action taken by any board or administrative body in any jurisdiction against a professional or occupational license, certification, or registration issued to the applicant, to include any suspension, revocation, or surrender of a license, certification, or registration, imposition of a monetary penalty, or requirement to take remedial education or other corrective action. The board, in its discretion, may deny licensure to any applicant for any prior action taken by any board or administrative body in any jurisdiction. The applicant has the right to request further review of any such action by the board under the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia).

4. In accordance with § 54.1-204 of the Code of Virginia, each applicant must submit to fingerprinting and must disclose the following information:

a. All misdemeanor convictions involving fraudulent or dishonest acts, sexual offense, non-marijuana drug distribution, or battery within five years of the date of the application; and

b. All felony convictions.

The board, in its discretion, may deny licensure to any applicant in accordance with § 54.1-204 of the Code of Virginia.

5. The applicant must sign a statement verifying that the applicant has read and understands the provisions of this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia.

6. Applicants for licensure who do not meet the requirements set forth in subdivisions 3 and 4 of this section may be approved for licensure following consideration by the board.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 2.2, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Errata, 19:14 VA.R. 2176, 2177 March 24, 2003; amended, Virginia Register Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 38, Issue 2, eff. November 1, 2021; Volume 42, Issue 4, eff. November 5, 2025; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-35. Additional qualifications for individual licensure.

A. In addition to the requirements in 18VAC135-20-30, an applicant for an individual license as a real estate salesperson, real estate broker, or as an applicant by reciprocity must meet the requirements established in this section as applicable.

B. Applicants for initial licensure must achieve a passing grade in all courses required by § 54.1-2105 of the Code of Virginia applicable to the license being sought prior to sitting for the licensing examination and applying for licensure.

C. Applicants for licensure as a real estate broker must have been actively engaged as defined in 18VAC135-20-10 as a real estate salesperson for a period of 36 of the 48 months immediately preceding application. The applicant's experience must be verified by the principal or supervising broker for whom the applicant worked at the time of obtaining that experience.

D. Applicants for initial licensure, within 12 months prior to submitting a complete application for a license, must have passed a written examination provided by the board or by a testing service acting on behalf of the board. The applicant must follow all procedures established with regard to conduct at the examination. Failure to comply with all such procedures established with regard to conduct at the examination may be grounds for denial of application.

E. Applicants for licensure as a real estate salesperson or real estate broker by reciprocity must meet the following requirements as applicable to the license sought:

1. Applicants must, within 12 months prior to submitting a complete application for a license, have passed a written examination provided by the board or a testing service acting on behalf of the board covering real estate license law and regulations of the board.

2. Applicants must have received the salesperson or broker license by virtue of having passed in the jurisdiction of licensure a written examination deemed to be substantially equivalent to the Virginia examination.

3. An applicant for a salesperson license must have met educational requirements that are substantially equivalent to those required in Virginia.

4. An applicant for a broker license must have met educational requirements that are substantially equivalent to those required in Virginia, and the applicant must have been actively engaged as defined by 18VAC135-20-10 for 36 of the preceding 48 months. The broker applicant's experience must be verified by an individual who has direct knowledge of the applicant's activities as defined in § 54.1-2100 of the Code of Virginia.

F. In accordance with § 54.1-2105 of the Code of Virginia, the board, at its discretion, may waive the education and experience requirements of this section.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-40. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 2.3, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-45. Additional qualifications for  salesperson or broker license as a business entity.

In addition to the applicable requirements in 18VAC135-20-30 and 18VAC135-20-35, an applicant for a salesperson or broker license as a business entity must meet the following requirements:

1. Every owner or officer who actively participates in the real estate business must hold a license as a salesperson or broker. The business entity license does not replace the individual license. More than one licensee may be a participant of the business entity.

2. Business entities must be organized under the laws of the Commonwealth of Virginia or otherwise authorized to transact business in Virginia and must register any trade or fictitious names with the State Corporation Commission in accordance with Chapter 5 of Title 59.1 (§ 59.1-69 et seq.) of the Code of Virginia.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 15, Issue 5, eff. January 1, 1999; amended, Virginia Register Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-50. Concurrent licenses.

A. In order to be active as a broker in more than one firm at the same time, brokers must obtain concurrent licenses by submitting the concurrent license application, which must be approved by the principal broker of each firm.

B. Payment of the fee specified in 18VAC135-20-15 is required for each concurrent license.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 2.4, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-55. Exchange to salesperson license.

A broker seeking to exchange the broker license for that of a salesperson must submit a complete application to the board with the appropriate fee specified in 18VAC135-20-15. When exchanging a license, the licensee agrees any current broker licenses cease to exist, and if the licensee chooses to become licensed as a broker again, the licensee must pass the current broker examination and must meet the current education and experience requirements in effect at the time of application.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 31, Issue 26, eff. November 1, 2015; amended, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-60. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 2.5, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Errata, 19:14 VA.R. 2176, 2177 March 24, 2003; amended, Virginia Register Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 38, Issue 2, eff. November 1, 2021; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 4, eff. November 5, 2025; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-65. Universal license recognition.

A. Licensed in a neighboring state. The board will issue a salesperson or broker license under universal license recognition to an individual who meets the following qualifications:

1. The individual holds a current and valid license with a similar scope of practice in a neighboring state;

2. The individual's other license is in good standing with no reported pending complaints;

3. The individual has met the requirements set in subdivision 4 of 18VAC135-20-30;

4. The individual has not been subject to professional discipline involving harm to the public or license probation, suspension, or revocation;

5. The individual pays the reciprocity application fee as listed in 18VAC135-20-15; and

6. The individual successfully passes the Virginia Real Estate Exam.

B. Licensed in another state. The board will issue a salesperson or broker license under universal license recognition to an individual who meets the following qualifications:

1. The individual holds a current and valid license with a similar scope of practice in another state, territory, possession, or jurisdiction of the United States for at least three years;

2. The individual was licensed in the other state after having passed a state required exam and met education, training, or experience requirements to obtain the license;

3. The individual's other license is in good standing with no reported pending complaints;

4. The individual has met the requirements set in subdivision 4 of 18VAC135-20-30;

5. The individual has not been subject to professional discipline involving harm to the public or license probation, suspension, or revocation;

6. The individual pays the reciprocity application fee as listed in 18VAC135-20-15; and

7. The individual successfully passes the Virginia Real Estate Exam.

C. Experience in a state that does not require licensure. The board will hold an individual to have met all experience, training, and education requirements if the applicant has three years of experience in a state that does not require licensure.

1. To be exam eligible under universal license recognition, an individual must have:

a. Demonstrated at least three years of experience as a salesperson or broker in another state that does not issue an occupational or professional license for that respective profession;

b. Met the requirements set in subdivision 4 of 18VAC135-20-30;

c. Not been subject to professional discipline involving harm to the public or license probation, suspension, or revocation; and

d. Paid the applicable application fee as listed in 18VAC135-20-15.

2. Under this subsection, individuals are required to pass all exams required of initial applicants for the license under 18VAC135-20-35.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024; amended, Virginia Register Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-70. Activation or transfer of license.

A. 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.

1. A licensee who submits an activate application to the board must not conduct licensed activity with the real estate firm or sole proprietorship set forth in the application until the license is issued by the board.

2. Continuing education pursuant to § 54.1-2105.03 of the Code of Virginia must be completed within two years prior to activation of a license when the license has been inactive for more than 30 days.

3. Any licensee who has not been active with a licensed real estate firm or sole proprietorship for a period of greater than three years will be required to meet the existing prelicense educational requirements.

B. Any licensee may transfer from one licensed real estate firm or sole proprietorship to another by completing and submitting to the board a transfer application and the fee as set forth in 18VAC135-20-15.

1. The transfer application must include the signature of the new principal broker or supervising broker with signature authority who will be responsible for the licensee's real estate activities.

2. The transfer will be effective upon the new principal broker or supervising broker's execution of the transfer application.

3. For the transfer of a license between branch offices within the same licensed real estate firm or sole proprietorship, including from such firm's or sole proprietorship's primary place of business to one of its branch offices or from a branch office to another branch office under the same primary place of business, no fee will be charged.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 2.6, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 4, eff. November 5, 2025; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-80. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 2.9, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 14, Issue 6, eff. January 8, 1998; Volume 15, Issue 5, eff. January 1, 1999; Volume 15, Issue 18, eff. July 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 20, Issue 23, eff. September 1, 2004; Volume 31, Issue 26, eff. November 1, 2015; Volume 41, Issue 1, eff. October 1, 2024; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

Part III
Renewal of License

18VAC135-20-90. Renewal required.

Licenses issued under this chapter for salespersons, brokers, and firms will expire two years from the last day of the month in which the licenses were issued, as indicated on the license, except concurrent broker licenses that will expire on the same date as the original broker license.

Statutory Authority

§ 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 3.1, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-95. Post-license education requirements for salespersons.

A. In accordance with § 54.1-2105.01 A of the Code of Virginia, a salesperson who is renewing a license for the first time is required to have completed 30 hours of post-license education as outlined in subsection B of this section within the first year of licensure , regardless of whether the salesperson's license is active or inactive. Failure to complete the 30-hour post-licensure curriculum within one year from the last day of the month in which the license was issued will result in the license being placed on inactive status by the board until the curriculum has been completed.

B. A salesperson within the first year of licensure must complete the following education:

1. Two hours of fair housing, Americans with Disabilities Act (42 USC § 12101 et seq.), and civil rights;

2. Six hours of real estate law and regulations;

3. Three hours of ethics and standards of conduct;

4. Two hours of current industry issues and trends;

5. Three hours of agency law;

6. Six hours of contract writing;

7. Three hours of risk management;

8. Three hours of escrow requirements; and

9. Two hours of real estate-related finance.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-100. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 3.2, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; repealed, Virginia Register Volume 31, Issue 26, eff. November 1, 2015.

18VAC135-20-101. Qualification for renewal; continuing education requirements.

A. Continuing education requirements at renewal.

1. Subsequent salesperson renewals. As a condition of renewal, and pursuant to § 54.1-2105.03 of the Code of Virginia, all active salespersons are required to satisfactorily complete a course of not less than a total of 16 classroom, correspondence, or other distance learning instruction hours during each licensing term.

For salespersons, 11 of the required 16 hours must include:

a. Two hours in fair housing laws;

b. Three hours in ethics and standards of conduct;

c. Two hours in real estate agency;

d. Two hours in real estate contracts, including contract principles, contract forms, and escrow deposits and accounts; and

e. Two hours in legal updates and emerging trends, to include flood zone areas and the National Flood Insurance Program.

The remaining elective hours must be obtained in subject areas listed in subsection B of this section.

2. Broker renewals. All active brokers are required to satisfactorily complete a course of not less than a total of 24 classroom, correspondence, or other distance learning instruction hours during each licensing term. For brokers, 19 of the 24 required hours must include:

a. Eight hours in supervision and management of real estate agents and the management of real estate brokerage firms, including oversight of contracts and agency, two hours of which must include an overview of the broker supervision requirements under this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia;

b. Two hours in fair housing laws;

c. Three hours in ethics and standards of conduct;

d. Two hours in real estate agency;

e. Two hours in real estate contracts, including contract principles, contract forms, and escrow deposits and accounts; and

f. Two hours in legal updates and emerging trends, to include flood zone areas and the National Flood Insurance Program.

The remaining elective hours must be obtained in subject areas listed in subsection B of this section.

3. Armed Forces of the United States renewals. If an active licensee is called to active duty or deployed in the Armed Forces of the United States, such licensee may complete the courses required by this section within six months of the licensee's release from active duty or deployment.

4. Inactive licenses. Inactive brokers and salespersons are not required to complete the continuing education course as a condition of renewal.

5. If the licensee submits a notarized affidavit to the board that certifies that the licensee does not practice residential real estate brokerage, residential management, or residential leasing and will not do so during the licensing term, training in fair housing is not required; instead, such licensee must receive training in other applicable federal and state discrimination laws and regulations.

B. Any elective hours not specified in subsection A of this section must be on subjects from the following list:

1. Property rights;

2. Contracts;

3. Deeds;

4. Financing, types of mortgages , and deeds of trust;

5. Leases;

6. Liens;

7. Real property and title insurance;

8. Taxes in real estate;

9. Closing disclosures;

10. Brokerage and agency contract responsibilities;

11. Real property management;

12. Search, examination, and registration of title;

13. Title closing;

14. Appraisal of real property;

15. Planning subdivision developments and condominiums;

16. Fair housing;

17. Real estate statutes and board regulations;

18. Business law;

19. Real estate markets and economics;

20. Real estate investments;

21. Federal real estate law;

22. Commercial real estate;

23. Americans with Disabilities Act;

24. Environmental issues, sustainability, and energy efficiency;

25. Building codes and design;

26. Land use, zoning, and local laws;

27. Escrow accounts and deposits;

28. Ethics and standards of conduct;

29. Common interest communities, including the Resale Disclosure Act (Chapter 23.1 of Title 55.1 of the Code of Virginia);

30. Cyber security and data protection; and

31. Social responsibility in real estate, including affordable housing, multicultural market, gentrification, diversity, multigenerational, and cultural competency.

C. Salespersons and brokers holding active licenses in multiple jurisdictions.

1. Salespersons holding licenses in multiple jurisdictions must complete 16 hours of continuing education, 11 of which are mandatory board-approved courses, that must include two hours in fair housing laws; three hours in ethics and standards of conduct; two hours in real estate agency; two hours in real estate contracts; and two hours of legal updates and emerging trends, to include flood zone areas and the National Flood Insurance Program. Such salespersons may substitute education completed in their jurisdiction for the remaining five elective hours required by subsection B of this section.

2. Brokers holding licenses in multiple jurisdictions must complete 24 hours of continuing education, 19 of which are mandatory board-approved courses that must include eight hours in supervision and management of real estate agents and the management of real estate brokerage firms, two hours of which must include an overview of the broker supervision requirements under this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia; two hours in fair housing laws; three hours in ethics and standards of conduct; two hours in real estate agency; two hours in real estate contracts; and two hours in legal updates and emerging trends, to include flood zone areas and the National Flood Insurance Program. Such brokers may substitute education completed in their jurisdiction for the remaining five elective hours required by subsection B of this section.

D. In its discretion, and in accordance with § 54.1-2105.03 of the Code of Virginia, the board may approve additional subjects toward fulfillment of the elective continuing education hours required by this section.

E. Credit for continuing education course completion is given for each class hour or clock hour.

F. Licensees are responsible for retaining for three years and providing proof of continuing education to the board or the board's duly authorized agents upon request. Failure to provide documentation of completion as directed by the board may result in the license not being renewed or disciplinary action pursuant to this chapter.

G. Instructors who are also licensees of the board may earn continuing education credit for teaching continuing education courses.

H. Any continuing education credits completed by the licensee in excess of that required in the current license term that are obtained in the six months immediately prior to the license expiration date will carry over into the next two-year renewal period.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 24, Issue 11, eff. April 1, 2008; amended, Virginia Register Volume 31, Issue 26, eff. November 1, 2015; Volume 35, Issue 17, eff. June 1, 2019; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-105. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 19, Issue 12, eff. April 1, 2003; amended, Virginia Register Volume 24, Issue 11, eff. April 1, 2008; repealed, Virginia Register Volume 31, Issue 26, eff. November 1, 2015.

18VAC135-20-110. Procedures for renewal.

A. Prior to the expiration date of the license, the board will send a renewal notice to the licensee.

B. Prior to the expiration date of the license, each licensee desiring to renew the license must return to the board the appropriate fee specified in 18VAC135-20-15.

C. Failure to receive notices from the board regarding license renewal does not relieve the licensee of the obligation to renew.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 3.3, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-120. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 3.4, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 14, Issue 6, eff. January 8, 1998; Volume 15, Issue 5, eff. January 1, 1999; Volume 15, Issue 18, eff. July 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 20, Issue 23, eff. September 1, 2004; Volume 31, Issue 26, eff. November 1, 2015; Errata, 32:1 VA.R. 242 September 7, 2015; amended, Virginia Register Volume 41, Issue 1, eff. October 1, 2024; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-130. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 3.5, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 19, Issue 12, eff. April 1, 2003; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

Part IV
Reinstatement

18VAC135-20-140. Failure to renew; reinstatement required.

A. All applicants for reinstatement must meet the applicable education requirements in 18VAC135-20-95 or 18VAC135-20-101. Applicants for reinstatement who want to activate a license must have completed the education requirement to reinstate and activate the license. Applicants for reinstatement of an inactive license are not required to complete the continuing education requirement for license reinstatement.

B. If the requirements for renewal of a license, including receipt of the fee by the board, are not completed by the licensee within 30 days of the expiration date noted on the license, the applicable reinstatement fee specified in 18VAC135-20-15 is required.

C. A license may be reinstated for up to one year following the expiration date with payment of the reinstatement fee. When a license is reinstated, the licensee will continue to have the same license number and will be assigned an expiration date two years from the previous expiration date of the license. After one year, the license may not be reinstated under any circumstances and the applicant must meet all current educational and examination requirements and apply as a new applicant.

D. An individual, business entity, or firm may not perform activities defined in § 54.1-2100 of the Code of Virginia with an expired license. Any real estate activity conducted subsequent to the expiration date may constitute unlicensed activity and be subject to prosecution under Chapter 1 (§ 54.1-100 et seq.) of Title 54.1 of the Code of Virginia.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 4.1, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 14, Issue 6, eff. January 8, 1998; Volume 15, Issue 18, eff. July 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 20, Issue 23, eff. September 1, 2004; Volume 31, Issue 26, eff. November 1, 2015; Errata, 32:1 VA.R. 242 September 7, 2015; Errata, 32:2 VA.R. 296 September 21, 2015; amended, Virginia Register Volume 41, Issue 1, eff. October 1, 2024; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-145. Status of licensee during the period prior to reinstatement.

A licensee who reinstates a license will be regarded as having been continuously licensed without interruption and will remain under the disciplinary authority of the board during this entire period and will be held accountable for activities during this period.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-150. Board discretion to deny renewal or reinstatement.

The board may deny renewal or reinstatement of a license for (i) the same reasons as it may refuse initial licensure or discipline a current licensee; (ii) failure to meet the terms of an agreement for licensure or other board order; or (iii) failure to fully pay monetary penalties and costs imposed by the board, plus any accrued interest.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 4.2, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 42, Issue 14, eff. April 1, 2026.

Part V
Standards of Practice and Conduct

18VAC135-20-155. Grounds for disciplinary action.

A. The board has the power to impose a monetary penalty against any licensee or certificate holder and to suspend or revoke any license or certificate issued under the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia and this chapter in accordance with subdivision A 7 of § 54.1-201 and § 54.1-202 of the Code of Virginia and the provisions of the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia), where the licensee or certificate holder has been found to have violated or cooperated with others in violating any provision of Chapters 1 (§ 54.1-100 et seq.), 2 (§ 54.1-200 et seq.), 3 (§ 54.1-300 et seq.), and 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia, Chapter 10 (§ 55.1-1000 et seq.) of Title 55.1 of the Code of Virginia, or any regulation of the board.

B. Any licensee failing to comply with the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or the regulations of the board in performing any acts covered by § 54.1-2100 of the Code of Virginia may be charged with a violation, regardless of whether those acts are in the licensee's personal capacity or in the licensee's capacity as a real estate licensee.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 19, Issue 12, eff. April 1, 2003; amended, Virginia Register Volume 31, Issue 26, eff. November 1, 2015; Volume 36, Issue 8, eff. January 15, 2020; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-160. Place of business.

A. Every principal broker must have the following readily available to the public in the primary place of business:

1. The firm license;

2. The principal broker license; and

3. The license of every salesperson and broker active with the firm.

B. Each branch office must have readily available to the public the branch office license and a roster of every salesperson or broker assigned to that branch office.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 5.1, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-165. Duties of supervising broker.

In addition to the duties of supervising brokers set forth in § 54.1-2110.1 of the Code of Virginia, supervising brokers must:

1. Provide supervision of brokerage services in a timely manner.

2. Undertake reasonable steps to ensure only licensees undertake activities requiring a license, to include such activities described in 18VAC135-20-335 A.

3. Provide adequate supervision over all unlicensed individuals or entities associated with the firm or the firm's licensees, to include such activities described in 18VAC135-20-335 B.

4. Act with reasonable diligence and promptness in responding to inquiries from cooperating brokers.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from subsection D of 18VAC135-20-160, Virginia Register Volume 31, Issue 26, eff. November 1, 2015; amended, Virginia Register Volume 35, Issue 17, eff. June 1, 2019; Volume 42, Issue 4, eff. November 5, 2025; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-170. Maintenance of licenses.

A. Name and address.

1. Salespersons and individual brokers must 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. The board is not responsible for the licensee's failure to receive notices, communications, and correspondence caused by the licensee's failure to promptly notify the board of any change of address.

2. A licensee may use a professional name other than a legal name if that professional name is filed with the board prior to its use. An individual may use a professional name, which must include the first or last name and must not include any titles.

3. Salespersons and brokers will be issued a license only to the place of business of the sole proprietorship or firm with which the salesperson or broker is active.

4. Principal brokers must at all times keep the board informed of their current firm, branch office, and business entity name and addresses and changes of name and address must be reported to the board in writing within 30 calendar days of such change. A physical address is required.

B. Discharge or termination of active status.

1. When any salesperson or broker is discharged or in any way terminates active status with a sole proprietorship or firm, it is the duty of the sole proprietor or principal broker to notify the board with the licensee name, license number, and date of termination within 10 calendar days of the date of termination or being notified of the status change.

2. When any principal broker is discharged or in any way terminates active status with a firm, it is the duty of the firm to notify the board with the licensee name, license number, and date of termination within 10 calendar days of the date of termination. See § 54.1-2109 of the Code of Virginia for termination relating to the death or disability of the principal broker.

C. When a firm or business entity is no longer authorized to conduct business in the Commonwealth, the board has the authority to terminate that firm or business entity's license until such time as the firm or business entity provides evidence that it is again authorized to conduct business in the Commonwealth.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 5.2, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-180. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 5.3, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 34, Issue 5, eff. December 1, 2017; Volume 35, Issue 3, eff. November 1, 2018; Volume 36, Issue 8, eff. January 15, 2020; Volume 36, Issue 26, eff. October 1, 2020; Volume 38, Issue 2, eff. November 1, 2021; Volume 39, Issue 1, eff. October 1, 2022; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-181. Maintenance and management of escrow accounts.

A. Maintenance of escrow accounts.

1. General escrow account requirements. 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. The escrow account must be in the name by which the firm or sole proprietorship is licensed.

b. The principal broker will be held responsible for these accounts, including having signatory authority on these accounts.

c. The supervising broker and any other licensee with signatory authority may be held responsible for these accounts.

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 where such accounts are established.

e. The balance in the escrow accounts must be sufficient at all times to account for all funds that are designated to be held by the firm or sole proprietorship.

2. Escrow deposits.

a. All 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 the payment of expenses in connection with the closing of real estate transactions, 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.

b. Funds to be deposited in the escrow account may include moneys that will ultimately belong to the licensee in the escrow account, provided such money is separately identified in the escrow account records and paid to the firm from the escrow account when funds become due to the licensee. Funds in an escrow account must not be paid directly to the licensees of the firm.

c. The fact that an escrow account contains money that may ultimately belong to the licensee does not constitute "commingling of funds" as set forth by subdivision D 2 of this section, provided that there are periodic withdrawals of the funds at intervals of not more than six months, and that the licensee can at all times accurately identify the total funds in that account which belong to the licensee and the firm.

B. Handling and disbursement of funds from escrow accounts.

1. Purchase transactions.

a. Upon the ratification of a contract, an earnest money deposit received by the principal broker or supervising broker or the broker's associates must be deposited, handled, and disbursed in accordance with § 54.1-2108.2 of the Code of Virginia.

b. Unless otherwise agreed in writing by all principals to the transaction, a licensee will not be entitled to any part of the earnest money deposit or to any other money paid to the licensee in connection with any real estate transaction as part of the licensee's commission until the transaction has been consummated.

2. Lease transactions:

a. Any application deposit, security deposit, rent, or other money paid to the licensee acting on behalf of a landlord client in connection with the lease must be deposited in an escrow account in accordance with § 54.1-2108.1 of the Code of Virginia.

b. Security deposits must be treated in accordance with the security deposit provisions of the Virginia Residential Landlord and Tenant Act, Chapter 12 (§ 55.1-1200 et seq.) of Title 55.1 of the Code of Virginia, unless exempted therefrom, in which case the terms of the lease or other applicable law will control.

c. Prepaid rent must be treated in accordance with the prepaid rent provisions of the Virginia Residential Landlord and Tenant Act, Chapter 12 (§ 55.1-1200 et seq.) of Title 55.1 of the Code of Virginia.

d. Escrow funds must remain in an escrow account until disbursed in accordance with the terms of the lease, the property management agreement, or the applicable statutory provisions.

e. Unless otherwise agreed in writing by the principals to the lease or property management agreement, as applicable, a licensee will not be entitled to any part of the security deposit or to any other money paid to the licensee in connection with any real estate lease as part of the licensee's commission except in accordance with the terms of the lease or the property management agreement, as applicable.

f. Except in the event of a foreclosure, if a licensee elects to terminate the property management agreement with the landlord, the licensee may transfer any funds held in escrow on behalf of the landlord in accordance with § 54.1-2108.1 B 5 of the Code of Virginia.

3. On funds placed in an account bearing interest, written disclosure in the contract of purchase or lease at the time of contract or lease writing must be made to the principals to the transaction regarding the disbursement of interest.

4. A licensee must not disburse or cause to be disbursed moneys from an escrow account unless sufficient money is on deposit in that account to the credit of the individual client or property involved.

5. Unless otherwise agreed in writing by all principals to the transaction, expenses incidental to closing a transaction (e.g., fees for appraisal, insurance, credit report) must not be deducted from a deposit or down payment.

C. Escrow and foreclosure.

1. Purchase transactions. If a principal broker or supervising broker is holding escrow funds for the owner of real property and such property is foreclosed upon, the principal broker or supervising broker must comply with the provisions of § 54.1-2108.1 A 1 and A 2 of the Code of Virginia.

2. Lease transactions.

a. If a single-family residential dwelling unit is foreclosed upon and there is a tenant in the dwelling unit on the date of the foreclosure sale and the landlord is holding a security deposit of the tenant, the landlord must handle the security deposit in accordance with § 54.1-2108.1 A 3 of the Code of Virginia.

b. If there is at the date of the foreclosure sale a tenant in a residential dwelling unit foreclosed upon and the rent is paid to a licensee acting on behalf of the landlord pursuant to a properly executed property management agreement, the licensee may collect the rent in accordance with § 54.1-2108.1 A 4 of the Code of Virginia.

c. If a single-family residential dwelling unit is foreclosed upon, and at the date of the foreclosure sale there is a written property management agreement between a licensee and a landlord, the property management agreement must continue in accordance with § 54.1-2108.1 A 5 of the Code of Virginia.

D. Improper maintenance of escrow funds includes:

1. Accepting any note, nonnegotiable instrument, or anything of value not readily negotiable, as a deposit on a contract, offer to purchase, or lease without acknowledging its acceptance in the agreement;

2. Commingling the funds of any person by a principal or supervising broker or the broker's employees or associates or any licensee with the broker's own funds, or those of the broker's corporation, firm, or association. If escrow funds are used to purchase a certificate of deposit, the pledging or hypothecation of such certificate, or the absence of the original certificate from the direct control of the principal or supervising broker, will constitute commingling;

3. Failing to deposit escrow funds in an account designated to receive only such funds as required by subdivision A 1 of this section; and

4. Failing to have sufficient balances in an escrow account at all times for all funds that are designated to be held by the firm or sole proprietorship as required by this chapter.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-185. Maintenance and management of records.

A. The principal broker must maintain financial records regarding any real estate transactions under the authority of the broker's license. Such records must be readily accessible from the broker's place of business. The records must contain:

1. From whom money was received;

2. The date of receipt;

3. The place of deposit;

4. The date of deposit;

5. The final disposition of the funds; and

6. Any other information required in this chapter.

When a principal broker's office is located outside of Virginia and the firm has a branch office in Virginia, a copy of these records must be readily accessible in the Virginia office.

B. The principal broker must maintain a bookkeeping or recordkeeping system that must accurately and clearly disclose full compliance with the requirements outlined in this section. Accounting records that are in sufficient detail to provide necessary information to determine such compliance must be maintained.

C. A principal broker or supervising broker must maintain and retain the following records:

1. Each brokerage agreement must be retained for three years from the date of execution. Each disclosure and consent to dual agency or dual representation and disclosure and consent to designated agency or designated representation must be retained for three years from the date of execution.

2. All documents pertaining to a transaction, including a complete and legible copy of each executed contract of sale, any executed release from contract, any executed lease agreement, any executed property management agreement, each settlement statement related to a real estate transaction, and unrepresented party in disclosure in the broker's control or possession unless prohibited by law. Such records must be retained for three years from the date of closing or from ratification if the transaction fails to close.

3. A complete and accurate record of such receipts and their disbursements for moneys received on behalf of others. Such records must be retained for a period of three years from the date of the closing or termination of a sales transaction, or the termination of a lease or conclusion of the licensee's involvement in a lease.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 19, Issue 12, eff. April 1, 2003; amended, Virginia Register Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-190. Advertising by licensees.

A. All advertising must be under the direct supervision of the principal broker or supervising broker, in the name of the firm and, when applicable, comply with the disclosure required by § 54.1-2138.1 of the Code of Virginia. The firm's licensed name must be clearly and legibly displayed on all advertising.

B. Advertising disclosure.

1. All advertising by a firm or affiliated licensee must contain a clear, legible, and conspicuous advertising disclosure, which must include (i) the firm's name and (ii) the office contact information. The office contact information and any additional required information will be specified by the principal or supervising broker in the firm's written policies.

2. All advertising by an affiliated licensee must be done under the policies of a principal or supervising broker.

3. Any property information provided by and in control of the licensee in any advertising must be consistent with the property condition and the property's current contract status. A licensee who knows or discovers that a third party controls the advertising must make a timely written request for changes to be made.

4. All advertising must be updated in a timely manner whenever there is a material change to the listing status or property descriptions. A licensee who knows or discovers that a third party controls the advertising must make a timely written request for changes to be made.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 5.4, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-200. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 6.1, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; repealed, Virginia Register Volume 19, Issue 12, eff. April 1, 2003.

18VAC135-20-210. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 6.2, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; repealed, Virginia Register Volume 39, Issue 1, eff. October 1, 2022.

18VAC135-20-220. Disclosure of brokerage relationships.

A. Purchase transactions.

1. A licensee must disclose whom the licensee represents to an actual or prospective buyer or seller who is not the client of the licensee and who is not represented by another licensee and with whom the licensee has substantive discussions about a specific property pursuant to § 54.1-2138 A of the Code of Virginia.

2. Except as otherwise provided in subdivision 3 of this subsection, such disclosure must be made in writing at the earliest practical time, but in no event later than the time specific real estate assistance is first provided. Any disclosure complying with the provisions of § 54.1-2138 A of the Code of Virginia will be deemed in compliance with this disclosure requirement.

3. A licensee acting as a dual or designated agent or as a dual or designated representative must obtain the written consent of all clients to the transaction at the earliest practical time. Such consent will be presumed to have been given by a client who signs a disclosure complying with the provisions of §§ 54.1-2139, 54.1-2139.01, and 54.1-2139.1 of the Code of Virginia. Such disclosure must be given to, and consent obtained from, (i) the buyer not later than the time an offer to purchase is presented to the licensee who will present the offer to the listing agent or seller, and (ii) the seller not later than the time the offer to purchase is presented to the seller.

4. Any disclosure required by this subsection may be given in combination with other disclosures or information, but, if so, the disclosure must be conspicuous, printed in bold lettering, all capitals, underlined, or within a separate box or as otherwise provided by § 54.1-2138 of the Code of Virginia.

B. Lease transactions.

1. Unless disclosure has been previously made by a licensee, a licensee must disclose to an actual or prospective landlord or tenant who is not the client of the licensee and who is not represented by another licensee, that the licensee has a brokerage relationship with another party to the transaction. Such disclosure must be in writing and included in the application for lease or the lease itself, whichever occurs first. If the terms of the lease do not provide for such disclosure, the disclosure must be made in writing not later than the signing of the lease.

2. This disclosure requirement will not apply to lessors or lessees in single or multi-family residential units for lease terms of less than two months.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.3, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-225. Audits.

A. Procedures for mandatory audit.

1. A principal broker or supervising broker must conduct or have a third party conduct an audit within 90 days prior to the expiration of the firm license. Such audit must be documented on a form developed by the board.

2. In conducting an audit of practices, policies, and procedures of the firm or sole proprietorship, the principal broker or supervising broker or a third party must examine and document all matters regarding the compliance by the firm or sole proprietorship with law and regulation regarding:

a. Proper handling of escrow deposits and maintenance of a complete record of financial transactions;

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

c. Advertising in all forms and media;

d. Negotiation 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. Proper documentation of required disclosures; and

i. Such other matters as necessary to ensure the competence of licensees to comply with this chapter and Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia.

3. If at the conclusion of a mandatory audit the principal broker or supervising broker or third party believes there is noncompliance with the provisions of board regulations or law, the principal broker or supervising broker may use the procedures for voluntary compliance described in subsection B of this section.

B. Procedures for voluntary compliance, self-audit, or third-party audit; broker immunity.

1. A broker will have immunity from board discipline for matters self-reported when the following conditions are met:

a. A principal broker or supervising broker has conducted, or had another person conduct, an audit of the practices, policies, and procedures of the firm or sole proprietorship in accordance with § 54.1-2111.1 of the Code of Virginia.

b. The principal broker or supervising broker has signed the report conducted in accordance with this subsection.

c. A principal broker or supervising broker notifies the board in writing within 30 days following the conclusion of a self-audit, or within 30 days from the receipt of the final report of a third-party audit, of any matter the principal broker or supervising broker believes to constitute noncompliance with the provisions of board regulations or law and submits (i) a statement that such noncompliance has been remediated or (ii) a plan to correct such noncompliance within 90 days.

2. Immunity from enforcement action provided by this section will not apply if the noncompliance with provisions of board regulations or law by the principal broker or supervising broker was intentional or was the result of gross negligence by the principal broker or supervising broker , including any actions by an unlicensed employee negotiating the provisions of a rental agreement as prohibited under § 54.1-2103 C of the Code of Virginia.

3. Immunity from enforcement action provided by this section will apply only to the principal broker and supervising broker who conducts an audit and submits a voluntary compliance plan in accordance with this section and will not extend to any other broker or salesperson who may not be in compliance with board regulations or law.

4. Failure to complete the voluntary compliance program within 90 days from the date of plan submission will result in the loss of immunity from regulatory enforcement action. Repeated instances of a violation found as a result of a subsequent audit that was subject to the voluntary compliance program may be deemed by the board to constitute a failure to complete the prior voluntary compliance program.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 31, Issue 26, eff. November 1, 2015; amended, Virginia Register Volume 42, Issue 4, eff. November 5, 2025; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-230. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 6.4, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; repealed, Virginia Register Volume 19, Issue 12, eff. April 1, 2003.

18VAC135-20-240. Provision of information to the board.

A. Unless otherwise specified by the board, or as set forth in § 54.1-2108 of the Code of Virginia, a licensee of the board must produce to the board or any of the board's agents within 10 days of the request evidence of signature cards or bank records, any document, book, or record concerning any real estate transaction in which the licensee was involved, or for which the licensee is required to maintain records for inspection and copying by the board or the board's agents. The board may extend such timeframe upon a showing of extenuating circumstances prohibiting delivery within such 10-day period.

B. A licensee must respond to any other inquiry by the board or the board's agents within 21 days.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.5, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-250. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 6.6; Virginia Register Volume 11, Issue 18, eff. June 28, 1995; amended, Virginia Register Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-260. Prohibited acts.

The following are prohibited acts:

1. Obtaining or attempting to obtain, renew, reinstate, or maintain a license or certification by false or fraudulent representation;

2. Holding more than one license as a real estate broker or salesperson in Virginia, except as provided in this chapter;

3. Signing an experience verification form without direct supervision or actual knowledge of the applicant's activities as defined in § 54.1-2100 of the Code of Virginia or unreasonably refusing to sign an experience verification form;

4. Having been convicted or found guilty regardless of the manner of adjudication in any jurisdiction of the United States of a misdemeanor involving fraudulent or dishonest acts, sexual offense, non-marijuana drug distribution, or battery, or any felony, there being no appeal pending therefrom or the time for appeal having elapsed. Review of convictions will be subject to the requirements of § 54.1-204 of the Code of Virginia;

5. Failing to inform the board in writing within 30 days of any convictions as described in subdivision 4 of this section;

6. Having a professional or occupational license that was suspended, revoked, or surrendered in connection with a disciplinary action or that has been the subject of discipline in any jurisdiction;

7. Failing to inform the board in writing within 30 days of a disciplinary action as described in subdivision 6 of this section;

8. Having been found in a court or an administrative body of competent jurisdiction to have violated the Virginia Fair Housing Act, the Fair Housing Laws of any jurisdiction of the United States, including Title VIII of the Civil Rights Act of 1968 (82 Stat. 73) or the Civil Rights Act of 1866 (14 Stat. 27), there being no appeal therefrom or the time for appeal having elapsed;

9. Knowingly providing false, misleading, or incomplete information to an inquiry by the board or any of its agents;

10. Violating, inducing another to violate, cooperating with another to violate, or combining or conspiring with or acting as agent, partner, or associate for another to violate any of the provisions of Chapter 1 (§ 54.1-100 et seq.), 2 (§ 54.1-200 et seq.), 3 (§ 54.1-300 et seq.) , or 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia, or any of the regulations of the board;

11. Failing to act as a real estate broker or salesperson in such a manner as to safeguard the interests of the public, which includes the following:

a. A principal broker or supervising broker failing to ensure proper supervision and accountability over the firm's day-to-day financial dealings, escrow account, and daily operations;

b. A broker failing to disburse funds from an escrow account according to the regulations or failing to properly retain documents relating to the basis for disbursal;

c. A broker failing to ensure the licensees for whom the broker has oversight responsibility hold active licenses while practicing real estate;

d. A broker failing to have signatory authority on all accounts;

e. A broker failing to account for or remit any moneys coming into the broker’s possession that belong to another;

f. A licensee failing to submit to the broker in a timely manner, all escrow money, contracts, brokerage and other representation agreements, leasing agreements, disclosures, and any other documents for which the broker has oversight responsibility;

g. A licensee performing regulated activities outside the licensee's brokerage firm or sole proprietorship, except for instances in which the licensee has an ownership interest in a property;

h. A licensee operating an unlicensed firm or acting as a principal broker;

i. A licensee practicing real estate with an inactive or expired license;

j. A licensee knowingly providing the broker with an earnest money deposit check from an account with insufficient funds;

k. A licensee providing access to a property without the owner's authorization; and

l. A licensee submitting unauthorized altered copies of a contract to the broker; and

12. Engaging in improper, fraudulent, or dishonest conduct, which includes the following:

a. A licensee attempting to divert commission from the firm or sole proprietorship and direct payment to a licensee or an unlicensed individual who is not a party to the transaction;

b. A licensee fabricating or altering any document with the intent to mislead;

c. A licensee signing any documents on a client's behalf without first obtaining the proper legal authorization to sign the documents on the client's behalf;

d. A licensee making an escrow deposit payable to the licensee or negotiating the check without written authority;

e. A licensee knowingly misrepresenting ownership of a property;

f. A licensee submitting copies of the same earnest money deposit check for inclusion with multiple offers;

g. A licensee entering into agreements to be compensated for real estate services without an active license;

h. A licensee representing in offers that the licensee received an earnest money deposit when the licensee has not received such deposit or knows the payment is worthless;

i. A licensee misrepresenting who is holding an escrow deposit; and

j. A licensee sitting for an examination for a license the licensee already obtained or taking an examination on behalf of another.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.7, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Errata, 19:14 VA.R. 2176, 2177 March 24, 2003; amended, Virginia Register Volume 31, Issue 26, eff. November 1, 2015; Volume 38, Issue 2, eff. November 1, 2021; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 4, eff. November 5, 2025; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-270. Conflict of interest.

Actions constituting a conflict of interest include:

1. Being active with a real estate broker other than the licensee's principal broker, without the written consent of the principal broker; and

2. Acting for more than one client in a transaction governed by the provisions of §§ 54.1-2139, 54.1-2139.01, and 54.1-2139.1 of the Code of Virginia without first obtaining the written consent of all clients.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.8, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-280. Improper  financial transactions and dealings.

A. Improper financial transactions and dealings include:

1. 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;

2. 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;

3. 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;

4. 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; and

5. 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.

B. Actions constituting improper dealing include 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.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.9, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-290. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 6.10, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 31, Issue 26, eff. November 1, 2015; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-300.  Misrepresentation or omission.

Actions constituting misrepresentation or omission include:

1. Using "bait and switch" tactics by advertising or offering real property for sale or rent with the intent not to sell or rent at the price or terms advertised, unless the advertisement or offer clearly states that the property advertised is limited in specific quantity or for a specified time period and the licensee did in fact have at least that quantity for sale or rent at that price or terms at the time of advertising, including listing status and condition of property;

2. Failing as a licensee representing a seller or landlord as a standard agent to disclose in a timely manner to a prospective purchaser or tenant all material adverse facts pertaining to the physical condition of the property that are actually known by the licensee;

3. Failing as a licensee to tender promptly to the client or unrepresented party every written offer, every written counteroffer, and every written rejection to purchase, option, or lease obtained on the property involved;

4. Failing as a licensee to disclose in a timely manner to the licensee's client all material facts related to the property or concerning the transaction when the failure to so disclose would constitute failure by the licensee to exercise ordinary care;

5. Failing to provide in a timely manner to all principals to the transaction written notice of any material changes to the transaction;

6. Disclosing to one client represented in the dual representation confidential information relating to the transaction obtained during the representation of another client in the same dual representation unless otherwise provided by law when acting as a dual agent or dual representative;

7. Failing to include the complete terms and conditions of the real estate transaction, including any lease, property management agreement, or offer to purchase;

8. Failing to include in any application, lease, or offer to purchase identification of all those holding any deposits;

9. Knowingly making any false statement or report, or willfully misstating the value of any land, property, or security for the purpose of influencing in any way the action of any lender upon:

a. Applications, advance discounts, purchase agreements, repurchase agreements, commitments, or loans;

b. Changes in terms or extensions of time for any of the items listed in subdivision 9 a of this section whether by renewal, deferment of action, or other means without the prior written consent of the principals to the transaction;

c. Acceptance, release, or substitution of security for any of the items listed in subdivision 9 a of this section without the prior written consent of the principals to the transaction;

10. Knowingly making any material misrepresentation; and

11. Making a false promise through agents, salespersons, advertising, or other means.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.11, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-310. Improper delivery of instruments.

Actions constituting improper delivery of instruments include:

1. Failing to make prompt delivery to each principal to a transaction, complete and legible copies of any written disclosures required by §§ 54.1-2138, 54.1-2139, 54.1-2139.01, and 54.1-2139.1 of the Code of Virginia, listings, leases, offers to purchase, counteroffers, addenda and ratified agreements, and other documentation required by the agreement;

2. Failing to deliver to the seller and buyer, at the time a real estate transaction is completed, a complete and accurate statement of receipts and disbursements of moneys received by the licensee, duly signed and certified by the principal or supervising broker or the broker's authorized agent; provided, however, if the transaction is closed by a settlement agent other than the licensee or the licensee's broker, and if the disbursement of moneys received by the licensee is disclosed on the applicable settlement statement, the licensee will not be required to provide the separate statement of receipts and disbursements; and

3. Refusing or failing without just cause to surrender to the rightful owner, upon demand, any document or instrument that the licensee possesses.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.12, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 31, Issue 26, eff. November 1, 2015; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-320. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 6.12, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; repealed, Virginia Register Volume 19, Issue 12, eff. April 1, 2003.

18VAC135-20-330. Principal and supervising broker's responsibility for acts of licensees and employees.

Any unlawful act or violation of any of the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 or of Chapter 5.1 (§ 36-96.1 et seq.) of Title 36 of the Code of Virginia or of the regulations of the board by any real estate salesperson, employee, partner or affiliate of a principal broker, supervising broker, or both, may not be cause for disciplinary action against the principal broker, supervising broker, or both, unless it appears to the satisfaction of the board that the principal broker, supervising broker, or both, knew or should have known of the unlawful act or violation and failed to take reasonable action under the circumstances to remedy the situation.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.14, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 19, Issue 12, eff. April 1, 2003.

18VAC135-20-335. Activities to be performed by licensees; activities permitted to be performed by non-licensees.

A. The following activities may only be performed by an individual or business entity licensed in accordance with this chapter:

1. Showing property;

2. Holding an open house;

3. Answering questions on listings, title, financing, closing, contracts, brokerage agreements, and legal documents;

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

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

B. The following activities may be performed by an unlicensed individual or entity:

1. Performing general clerical duties, including answering telephones, responding by electronic media, and providing information shown on the listing;

2. Submitting listings and changes to MLS;

3. Following up on loan commitments after contracts have been ratified;

4. Having keys made for listings;

5. Computing commission checks;

6. Placing signs on properties;

7. Acting as a courier service;

8. Scheduling appointments;

9. Recording and depositing escrow funds;

10. Accepting security deposits, periodic rent, and other payments as contracted for in a rental agreement;

11. Preparing contract forms for approval of the licensee and supervising broker;

12. Accepting and signing broker-approved rental agreements, state or federal required disclosures, and any documents required for compliance with Chapter 5.1 (§ 36-96.1 et seq.) of Title 36 of the Code of Virginia related to a rental transaction;

13. Preparing promotional materials and advertisements for approval of the licensee and supervising broker;

14. Assembling closing documents;

15. Obtaining required public information from governmental entities;

16. Monitoring license and personnel files;

17. Ordering routine repairs as directed by licensee; and

18. Performing any other activities undertaken in the regular course of business for which a license is not required.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-340. Effect of disciplinary action on subordinate licensees.

Action by the board resulting in the revocation, suspension, or denial of renewal of the license of any principal broker or sole proprietor will automatically result in an order that the licenses of any and all individuals active with the affected firm be returned to the board until such time as the licenses are reissued upon the written request of a sole proprietor or principal broker pursuant to 18VAC135-20-170 B.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 6.15, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 19, Issue 12, eff. April 1, 2003; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-345. Effect of disciplinary action on certificates, approvals, and concurrent licenses.

The board will suspend, revoke, or deny renewal of existing concurrent broker licenses when the board suspends, revokes, or denies renewal of another broker's license held by the same individual. The board will suspend, revoke, or deny renewal of existing instructor certificates and instructor approval when the board suspends, revokes, or denies renewal of a license held by the same individual.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 24, Issue 11, eff. April 1, 2008; amended, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

Part VI
Schools

18VAC135-20-350. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 7.1, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-360.  Certification of proprietary schools.

Every applicant to the board for a proprietary school certificate must meet the standards provided in subsection A of § 54.1-2105.02 of the Code of Virginia by submitting a CPA-certified (i) letter attesting to the applicant's net worth or (ii) a balance sheet or financial statement. Such applicant must show a minimum net worth of $2,000.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 7.2, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 24, Issue 11, eff. April 1, 2008; Volume 31, Issue 26, eff. November 1, 2015; Volume 41, Issue 2, eff. November 1, 2024; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-361. Certification of instructors.

A. Every applicant to the board for certification as an instructor for prelicense education must meet two of the qualifications outlined in subdivisions 1 through 7 of this subsection:

The board may waive the requirements of subdivisions 1 through 7 of subsection A upon review of proof of substantially equivalent qualifications.

B. Every applicant to the board for certification as an instructor for continuing education and post-license education must have expertise in a specific field of real estate with at least three years of active experience in that field in the five years immediately preceding the date of application and must teach only in the area of such applicant's expertise. Such applicants must furnish proof of expertise. Proof of expertise may include (i) educational transcripts, (ii) professional certificates, (iii) no more than three letters of reference, (iv) a resume, or (v) any other type of documentation that verifies an applicant's experience.

C. The board has discretion to deny an applicant who has been the subject of a disciplinary action.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-362. Approval of courses.

A. Prelicense courses must be acceptable to the board, be taught by a certified prelicense instructor, and are required to have a monitored, final written assessment. All courses offered by an approved provider must include a mechanism designed to ensure reasonably that licensees are actively engaged for each class hour. Schools applying for approval to offer prelicense education courses must (i) electronically submit an application on a form prescribed by the board; (ii) gain approval by the board prior to initially offering the course; and (iii) supply the following information:

1. Course syllabus;

a. All Principles and Practices of Real Estate courses must include the topic areas specified in 18VAC135-20-400.

b. All requests to offer broker courses must include a course syllabus acceptable to the board;

2. Name of the course text and any research materials used for study assignments;

3. Description of any research assignments;

4. Copies of proficiency assessments, tests, or quizzes; and

5. Information about recordkeeping for the type of course delivery.

B. Continuing education and post-license education course requirements.

1. Schools applying for approval to teach continuing education and post-license education courses must electronically submit an application on a form prescribed by the board and gain approval by the board prior to initially offering the course.

2. All courses offered by an approved provider must include a mechanism designed to ensure reasonable that licensees are actively engaged for each class hour.

3. Correspondence and other distance learning courses offered by an approved provider must include appropriate testing procedures to verify completion of the course, including requiring licensees who complete correspondence or other distance learning courses to file a notarized affidavit certifying compliance with the course requirements with the education provider or with the licensee's own records.

4. The board will approve courses and the number of hours approved for each course based on the relevance of the subject to the performance of the duties set forth in § 54.1-2100 of the Code of Virginia.

5. Course content must be specific to the current laws and regulations of Virginia where applicable.

C. Approval of prelicense, continuing education, and post-license education courses, as well as post-license and continuing education instructors, will expire three years from the last day of the month in which the approval was granted by the board.

D. All schools must establish and maintain a record for each student. The record must include:

1. The student's name and address;

2. The course name and clock hours attended;

3. The course syllabus or outline;

4. The name of the instructor;

5. The date of successful completion; and

6. The board's course code.

Records must be available for inspection during normal business hours by authorized representatives of the board. Schools must maintain all student and class records for a minimum of five years.

E. All schools must provide each student with a certificate of course completion or other documentation that the student may use as proof of course completion. Such documentation must contain:

1. The student's name;

2. School name;

3. Course name;

4. Course approval number;

5. Course completion date;

6. Hours of credit completed; and

7. A statement that the course is "Approved by the Real Estate Board."

F. All providers of prelicense, continuing education, or post-license education courses must electronically transmit course completion data to the board in an approved format and method within five business days of the completion of each individual course.

G. All schools must appropriately update their course materials to reflect changes in applicable law or regulation when those changes take effect. Such changes do not require separate approval.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-370. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 7.3, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 14, Issue 6, eff. January 8, 1998; Volume 15, Issue 5, eff. January 1, 1999; Volume 15, Issue 18, eff. July 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 20, Issue 23, eff. September 1, 2004; Volume 24, Issue 11, eff. April 1, 2008; Volume 41, Issue 1, eff. October 1, 2024; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-380. (Repealed.)

Historical Notes

Derived from VR585-01-1 § 7.4, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; repealed, Virginia Register Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-390. Withdrawal of approval.

The board may withdraw approval of any school, course, or instructor for the following reasons:

1. The school, instructors, courses, or subjects no longer meet the standards established by the board.

2. The school or instructor solicits information from any person for the purpose of discovering past examination questions or questions that may be used in future examinations.

3. The school or instructor distributes to any person copies of examination questions, or otherwise communicates to any person examination questions, without receiving the prior written approval of the copyright owner to distribute or communicate those questions.

4. The school, through an agent or otherwise, advertises the school's services in a fraudulent, deceptive, or misrepresentative manner.

5. Officials, instructors, or designees of the school sit for a real estate licensing examination for any purpose other than to obtain a license as a broker or salesperson.

6. A school or instructor fails to ensure the timely and accurate electronic transmission of course completion data.

Statutory Authority

§ 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 7.5, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 24, Issue 11, eff. April 1, 2008; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-400. Course content of real estate principles and practices.

The following must be included in the four-semester-hour or six-quarter-hour course. Such course must be at least 60 class hours:

1. Economy and social impact of real estate,

2. Real estate market and analysis,

3. Property rights,

4. Contracts,

5. Deeds,

6. Mortgages and deeds of trust,

7. Types of mortgages,

8. Leases,

9. Liens,

10. Home ownership,

11. Real property and title insurance,

12. Investment,

13. Taxes in real estate,

14. Real estate financing,

15. Brokerage agreements and agency contract responsibilities,

16. Real estate marketing,

17. Real property management,

18. Search, examination, and registration of title,

19. Title closing,

20. Appraisal of residential and income producing property,

21. Planning subdivision developments and condominiums,

22. Regulatory statutes,

23. Housing legislation,

24. Fair housing statutes, and

25. Real Estate Board regulations.

Statutory Authority

§ 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 7.6, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-410. Broker courses.

A. Brokerage must be a required specific course with three semester hours or six quarter hours, but at least 45 class hours, constituting a complete course.

B. "Related subjects," as referred to in § 54.1-2105 of the Code of Virginia, must be real estate related, including courses in property management, land planning and land use, business law, real estate economics, and real estate investments.

C. No more than 45 class hours of broker-related courses will be accepted in lieu of specific broker courses set forth in § 54.1-2105 of the Code of Virginia.

Statutory Authority

§§ 54.1-201 and 54.1-2105 of the Code of Virginia.

Historical Notes

Derived from VR585-01-1 § 7.7, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; Volume 15, Issue 5, eff. January 1, 1999; Volume 19, Issue 12, eff. April 1, 2003; Volume 42, Issue 14, eff. April 1, 2026.

18VAC135-20-420. (Repealed.)

Historical Notes

Derived from VR585-01-1 §§ 7.8 to 7.10, eff. July 15, 1987; amended, Virginia Register Volume 5, Issue 23, eff. October 1, 1989; Volume 7, Issue 14, eff. May 15, 1991; Volume 8, Issue 13, eff. May 15, 1992; Volume 11, Issue 18, eff. June 28, 1995; repealed, Virginia Register Volume 15, Issue 5, eff. January 1, 1999.

Forms (18VAC135-20)

License Exchange to Salesperson License Application, A490-0225EXCHG-v6 (rev. 4/2026)

Pre-License Education Instructor Certification Application, A490-0230INSTR-v10 (rev. 4/2026)

Proprietary School Certification Application, A490-0211SCHL-v5 (rev. 4/2026)

Real Estate Firm/Sole Proprietorship Audit, F490-02AUD-v4 (rev. 7/2014)

Individual - Name/Address Change Form, A954640-02NACHG-v5 (rev. 4/2026)

Firm License Application, A490-0226FLIC-v7 (rev. 4/2026)

Branch Office License Application, A490-0226BRLIC-v7 (rev. 4/2026)

Business Entity License Transfer Application, A490-0226BETR-v7 (rev. 4/2026)

Business Entity License/Reinstatement Application, A490-0226BELIC-v10 (rev. 4/2026)

Business Entity Change Application, A490-0226ARBEM-vs8 (rev. 4/2026)

Salesperson License Application, A490-0225SLIC-v13 (rev. 4/2026)

Salesperson - Universal License Recognition (ULR) Application - A490-0225S-ULR-v5 (rev. 4/2026)

Salesperson Activate/Transfer Application, A490-0225SAT-v10 (rev. 4/2026)

Place License Inactive Application, A490-0225INACT-v1 (rev. 1/2013)

Concurrent Broker License Application, A490-0225CONCUR-v9 (rev. 4/2026)

Broker License Application, A490-0225BLIC-v14 (rev. 4/2026)

Broker - Universal License Recognition (ULR) Application - A490-0225B-UNIV-v6 (rev. 4/2026)

Broker - Activate/Transfer Application, A490-0225BAT-v11 (rev. 4/2026)

Online Approval - Broker Acknowledgment Form, A490-0225BACK-v1 (rev. 12/2014)

In-State Experience Verification Form, A490-02VAEXP-v4 (rev. 11/2015)

Signature Authority Form, A460-02SIG_AUT-v3 (rev. 11/2015)

Branch Office - Supervising Broker Change Form, A490-02SBCHG-v8 (rev. 4/2026)

Firm Principal Broker/Officer Change Form, A490-02PBOCHG-v5 (rev. 4/2026)

Out-of-State Experience Verification Form, A490-02OSEXP-v3 (rev. 11/2015)

Firm Name or Address Change Form, A490-02FNACHG-v5 (rev. 4/2026)

Prelicense Education Course Approval Application, A490-0214PRE-v9 (rev. 4/2026)

Additional Instructor Approval Application, A490-0214ADD-v3 (rev. 5/2013)

Continuing Education/Post License Course Approval Application, A490-214CE_PLE-vs11 (rev. 4/2026)

Branch Affiliation Application, A490-0225BRAFF-v5 (rev. 4/2026)

Branch Office - Address Change Form, A490-0226BOA_CHGv-2 (rev. 4/2026)

Settlement Agent Registration Application, A490-0227SAR-v3 (rev. 4/2026)

Termination of Branch Office Affiliation Application, A490-0225TERM-v1 (rev. 11/2016)

Post License Education (PLE)/Continuing Education (CE) Instructor Approval Application, A490-0230APPR-v6 (rev. 4/2026)