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.