People
Organizations
LLCs (Limited Liability Corporations)
Partnerships
Associations
Sole proprietorships which are not owned by a broker
Any person or organization, that either performs or advertises brokerage services, for another person or entity, must be licensed by the Virginia Real Estate Board. Licenses may also be issued to
Principal brokers, associate brokers, and salespeople
issued individual licenses.
Must have a real estate license in Virginia to:
Sells or offers to sell real estate
Buys or offers to buy real estate
Negotiates the purchase or the exchange of property
Rents, leases, or negotiates a lease of real estate
does not need to have a real estate license to:
-Any owner, lessor, or their employees dealing with their own property
-Anyone acting without pay as attorney-in-fact or power of attorney for another
-An attorney in the final dealings with the property
-A receiver, trustee in bankruptcy, administrator o
A broker's salaried employee may do the following WITHOUT a real estate license:
-Show residential units
-Provide the prospective tenants with factual information about the lease
-Accept applications for lease, security deposits and rentals for such real estate
suspended or revoked =
1) a very detailed explanation of the event/circumstances must be included with his license application.
*if there was a prior misdemeanor involving moral turpitude, sexual offense, drug distribution, physical injury or any felony, the license applicant m
Virginia Real Estate Board
regulates businesses and individuals representing others in real property transactions, including condominiums, cooperatives, and time-shares.
Virginia Real Estate Board also:
-9 members
-least five consecutive years before their appointment, and two citizen members
**Board member terms are four years long
**The chairman is chosen from its membership
**The Board adopts a seal to use in authenticating its acts
**The Virginia Rea
The Virginia Real Estate Board administers the following:
-The Virginia Fair Housing Act
-The Virginia Condominium Act
-The Virginia Time-Share Act
-The Consumer Real Estate Settlement -Protection Act as it applies to licensed real estate brokers
-Common Interest Community Management Information Fund
-The Virgin
The Virginia Real Estate Board also
--Sets standards for licensure and conduct
--Administers and enforces license laws
--Issues, renews, or denies renewal of real estate licenses
--Suspends and revokes real estate licenses
--Establishes license fees and the requirements for real estate lice
The Virginia Real Estate Board does NOT:
-Handle disputes between either salespeople and brokers, OR between brokers
-Standardize listing sales contracts, listing agreements, or any other forms used in real estate practice
-Establish commission rates or commission splits
broker in the state of Virginia meet the following criteria is:
--Be at least 18 years of age
--Be in good standing in any state where licensed, if licensed in another state
--Have a good reputation for honesty, truthfulness, and fair dealing and be competent to transact real estate business in such a manner as to saf
obtain a real estate license
--state-approved 60-hour course on the principles of real estate.
--Take AND PASS the state examination
--he has 12 months to apply for a license.
All broker applicants must have served as real estate salesperson for
36 of the previous 48 months before applying for a broker's license
Broker license educational criteria
require 180 hours of board-approved real estate study
An active license
licensee is associated with a broker, who must certify the new licensee's license application that he has agreed to be associated with this new licensee; the license will be sent DIRECTLY TO THE BROKER, and is immediately valid.
**the license always hangs
An inactive license
one in which the broker or salesperson is not affiliated with a supervising broker, firm, or sole proprietorship; he/she may NOT act as a real estate agent in any capacity.
Salespersons' and brokers' licenses renewal:
--renewed every two years by the last day of the month during which the license was issued
--no automatic renewal
-- up to LICENSEE to renew her license
-- license is not renewed before the expiration date, the license is then EXPIRED.
Renew after Expiration
--Within 30 days, if the licensee pays the normal renewal fee and has completed the necessary continuing education.
--From the 31st day to one year, if the licensee pays a reinstatement fee, and completes the necessary continuing education, the licensee m
licensed elsewhere as a salesperson or broker?
--board does have the authority to waive PART of the pre-licensing requirements
--18 years old
--received her license by passing an exam basically equivalent to the Virginia exam
Has kept the Fair Housing laws in any jurisdiction
--Has not been convicted
continuing edu?
July 1, 2007 all salespeople must complete 16 hr course.
--At least eight of these hours must include courses in Fair Housing Laws (2 hours), Ethics and Standards of Conduct (3 hours), Legal Updates and emerging Trends (1 hour), and 1 hour of real estate
continuing education during each two year licensing term.
-24 hours of continuing education shall include the following,
--3 hours of ethics and standards of conduct,
--2 hours of fair housing,
--1 hour of legal updates and emerging trends,
--1 hour of real estate agency,
--1 hour of real estate contracts,
--8 h
post license curriculum
--30 hour
--within one year of the Board issuing their license.
--
new salesperson fails to complete the course work within the one year?
the Board must place the license on inactive status until the curriculum is completed.
These businesses must have Virginia real estate firm license for its firm before transacting real estate business?
--Every corporation, LLC, association, or non-broker owner sole proprietorship
Va Real Estate Firm License Must
--Be separate from any license issued to any single member of the firm
--Hold the name by which the public will know this firm and be issued in this name
--Receive board certification in the event of a change of ownership of a partnership or association,
Business entity salesperson license
--salespeople and associate brokers who do not establish a brokerage firm, but wish to have the liability protection and tax benefits of a corporation or LLC can register.
A business entity which is licensed as a salesperson MUST
Must NOT act as a broker. If there is only one licensee who is the owner or officer, an applicant for this type of license, MAY NOT have a fictitious name as the business name
concurrent license
license issued to brokers active in more than one real estate firm or business.
**
Salespeople are NOT allowed to have concurrent licenses.
**
--not be issued to an individual applying to be associated with a firm, if that individual has an expired licens
license-related facts
--certificates of licensure belong to the Virginia Real Estate Board
--The Virginia Real Estate Board MUST be kept up to date as to name, address, or other personal information changes
--Upon termination of a licensee, closing of a firm, death of a licens
Virginia Residential Landlord and Tenant Act
--protection for landlords' and tenants' rights in Virginia, with regard to rental agreements.
--All apartments are covered under this act.
--if governed by either a county executive or a county manager, the total number of rental units cannot be more tha
NOT covered under VA Residential Landlord & Tenant Act
--on-residential rentals single family houses (in the case that the owner rents less than ten of them), and condominiums (if the landlord rents a maximum of four units).
Under the Virginia Residential Landlord and Tenant Act:
--if rental agreement is NOT made the fee must be refunded within ten days
--paid by check, the refund must be made within 20 days.
--landlord may withhold a $32 application fee to compensate for the cost of the paperwork
--
rental agreement IS reached but the tenant does not live in the property? then..
--the landlord may withhold either all of the fee, or a portion of the fee paid to compensate for the paperwork or related costs
security deposit
--protect against non-payment or rent or damage made to the property by the tenant
--may not be more than two months' rent
--returned to the tenant within 45 days of vacating the premises
--deposit is withheld, the landlord must give the tenant a written,
Five-Day Pay-Or-Quit Notice
tenant is given written notice to pay the rent within five days, or leave the property
Unlawful Detainer Warrant
tenant is still obligated to pay rent, but the landlord may begin eviction proceedings
Eviction
--if full payment of rent has not been made within 5 days, the landlord may file a suit to have the tenant evicted from the property. REMEMBER that this does NOT give the landlord the right to remove or keep the tenant from the property ****UNTIL THE COUR
check returned because of insufficient funds
landlord can give the tenant a notice mandating payment via cash, cashier's check, or certified check, within five days. If the payment is not made in this time, the landlord may take the appropriate above action
Tenant violates the lease or in some way violates the law in Virginia
--landlord will notify him of such in writing
-- given 21 days to correct this violation
--not corrected, the lease will terminate after 30 days
--
repairs will correct said violation?
--Landlord may correct it and charge the tenant the cost of said repair. This must be done within 14 days of written notice, unless an emergency exists, in which case it should be done as soon as possible
LANDLORD is violating the lease or the law
--tenant may notify the landlord in writing, and allow the landlord 30 days to correct this violation
--
If the landlord does not correct the violation?
--tenant still decides to remain living on the property, the tenant must still make rental payments!!
**.HOWEVER, these payments should be deposited with the GENERAL DISTRICT COURT!!!
***If the tenant decides to terminate the lease, he should also file a
Virginia Residential Landlord and Tenant Act:
**landlord cannot release the tenant's financial information to a third party, with the exception of rental amounts and record of payments, without the written consent of the tenant. The exception to this is the prospective buyer of the rental property -
automatic renewal
--lease will automatically renew with the same terms unless one of the parties notifies the other party in writing within a specified number of days before the termination of the lease.
rent increases?
must be agreed to by the tenant in writing. Failure to agree will be taken as a notice to vacate the property.
sublease?
--tenant is allowed, within the lease, to sublease, the sub-lessee must be approved by the landlord within ten days of written notice.
--
no news is good news
and the lessee can be considered approved.
agency
every relationship in which the real estate licensee acts for or represents a person by such person's express authority in a real estate transaction.
According to Virginia law, the licensee is expected to
--Perform under the terms of the brokerage relationship
--Seek a sale at the price and terms established in the brokerage relationship, or at another price/terms acceptable to the seller
--Present all written offers and counteroffers IN A TIMELY MANNER, e
licensed as a broker or salesperson in Virginia may prepare written contracts?
--sale, purchase, option, exchange, or rental of real estate, unless there is a contradictory court ruling.
**does not charge a separate fee for preparing the contracts.
death or disability of a licensed real estate broker
--Employee of the licensee may conclude the broker's business for 180 days following the death or disability of the broker
**If no one else is available, the Board may appoint any other suitable person to terminate the business within 180 days.
resident real estate broker must have a place of business in Virginia.
--A place of business can only be in a residence in which it is separate and distinct from the living quarters of the residence and is accessible by the public.
--For each firm or sole proprietor, there is only one principle broker, no matter how many off
sole proprietor brokerage or principal broker owner brokerage business CAN...
either be in the name of the broker owner or can be under a fictitious name.
**A sole proprietor brokerage does NOT require a separate firm license.
main office vs. Branch office
--"main office," and the other offices as "branch offices." Separate licenses MUST BE obtained for **EACH branch office. These applications will include the name of the brokerage, branch office address, and the name of the appropriate supervisory broker.
Every Individual, partnership, association, limited liability company, or corporation acting as a real estate broker may...
--display signage on the outside of each place of business maintained in Virginia for the purpose of working as a real estate broker
**sign shall state the name of such individual, partnership, association, limited liability company, or corporation, as se
main office?
--principal broker must have the firm license, the principal broker license and the license of every salesperson and broker associated with or employed by the entity or firm.
--licenses must be displayed together
--change of business name or location with
all financial transactions conducted under the Virginia-licensed broker must...
--be held in the principal broker's place of business, which can be a designated branch office. (VA office)
broker's records should include the following:
-Any funds received, and the source of said funds
-The date the funds were received
-The date of the deposit of the funds
-The place of the deposit
-The final disposition of the funds
Escrow
--money placed into a trust by a third party to be turned over to a grantee upon fulfillment of a contract.
**held until the terms of the escrow instructions have been met
--sufficient at ALL times
Escrow records
MUST BE kept for three YEARS from the date of closing or ratification
**transaction does not close, and they must include complete copies of each contract, agreement and closing statements in regard to the real estate transaction and any other related doc
Brokers are NOT required
to maintain escrow accounts.
Event that Broker does hold money or documentation for others in an escrow account, they must:
--Establish an escrow account in the name by which the business is licensed
--Deposit or hold such money as earnest money, down payments, security deposits, or advance money for closing costs
contract is ratified?
***any earnest money or down payments MUST be put into the escrow account by the END OF THE FIFTH BUSINESS BANKING DAY, unless otherwise agreed to in writing. This money must remain in the account until the transaction has been completed - either by consu
licensee is not entitled to...
**Unless it is otherwise agreed by principal to lease..
--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 conjunction with the terms of t
The security deposit cannot
be taken from an escrow account required by the lease without the written consent of the tenant.
In escrow accounts
--Funds cannot be taken from an escrow account until a transaction is consummated
--do not need to be held in an account bearing interest. *
IF the transaction is NOT consummated, the funds will remain in escrow.
*
--All the principals agree in writing, t
withdraw money from an escrow or property management escrow account?
--unless sufficient money is on deposit in that account to the credit of the individual client or property involved.
--State Law requires that the balance in the escrow must be sufficient at ALL times to account for all funds that are designated to be hel
Incidental closing expenses
appraisal fees, and insurance
--may NOT be deducted from a deposit or down payment unless otherwise agreed to in writing by all principals to the transaction.
Commingling
** illegal activity in which a Virginia real estate licensee mixes earnest money with his own money
the funds of any person by a principal or supervising broker or his employees or associates or any licensee with his own funds, or those of his corporation
Conversion
even greater violation, is an illegal activity in which the Virginia real estate licensee takes the money or property of others
Chapter 18 VAC 135-20-180.
Failure to have sufficient balances in an escrow account or accounts
18 VAC 135-20-180.A-1.
Failure to deposit funds in an account or accounts designated to receive only such funds as required
Failure, as principal broker, to report to the board within three business days results..
--instances where the principal broker reasonably believes the improper conduct of a licensee has caused noncompliance of maintaining the escrow fund balance at all times.
IF the transaction is NOT consummated, the funds will remain in escrow. At this point, one of three things will happen:
--All the principals agree in writing to the disposition of the funds
--The funds are disbursed through court order
--The broker will decide to whom the funds belong.
In the event a transaction is NOT consummated:
-- principal broker or supervising broker will hold funds in escrow until all principals to the transaction have agreed
--or a court of competent jurisdiction orders such disbursement of the funds.
--receive them in accordance with the clear and explicit
Any advertising must be done:
--Under the supervision of the principal broker or supervising broker
--In the name of the firm
--To ensure that the name under which the broker does business and the manner in which the broker advertises shall not imply that the property listed or market
owner is selling his own property.
must clearly disclose that he is licensed in ALL ads, including both newspaper advertisements and signage on the property itself.
Institutional Advertising
advertising in which neither the licensed name nor any other identification of any licensed individual is disclosed
--no real property is identified, and a service mark is identified
-- state that the service being advertised is a REAL ESTATE BROKERAGE
--
licensed firm or sole proprietorship displaying or using the service mark is an independently owned and operated business. Such disclosures are mandated in:-
Television
Newspaper
Radio
Telephone directory
Oral advertising
***NOT necessary in telephone communications
Disclosure
**IS necessary for Internet advertising. -Disclosure" in the context of online advertising means advertising that contains the firm's licensed name, city and state where the main office is located, the name of the firm with which the licensee is active, t
Brokerage relationships began when the licensee is engaged by the client. The relationship is considered terminated:
--Once the brokerage relationship agreement is completed
--Upon the date of expiration mandated in the brokerage agreement
--When it's mutually decided to terminate the relationship
--When any part defaults under the terms of the relationship
--If/when a
brokerage relationship must have
specific date of termination. If it does not, the relationship will automatically terminate 90 days after it was begun.
**brokerage relationship is complete =must still provide the client with an accounting of the monies and properties related to the brok
Dual agent" or "dual representative
**a licensee who has a brokerage relationship with both seller and buyer, or both landlord and tenant, in the same real estate transaction
--ONLY WITH THE WRITTEN CONSENT of all clients to the transaction.
--MUST be able to remain neutral when dealing wit
payment or compensation to a real estate broker does NOT
--create a brokerage relationship between any broker, seller, landlord, buyer or tenant.
**Licensee representing a buyer or tenant shall be deemed to have a brokerage relationship with a seller, landlord or other licensee solely by reason of using a commo
common source information company
any person, firm, or corporation that is a source, compiler, or supplier of information regarding real estate for sale or lease and other data and includes, but is not limited to, multiple listing services
Concurrent licenses
**issued by the board to brokers active in more than one firm upon receipt of a concurrent license form and written statements verifying that written notice of the applicant's concurrent licensure status has been provided to the principal broker of each f
Fair Housing
discriminate on the basis of:
Race, Color, Religion, National Origin, Sex Elderliness (anyone 55 or over, according to this law). Familial Status (including pregnant women and those adopting or in the process of obtaining custody of a child or children).
bona fide
Refuse to rent, lease, sell, or finance with a "bona fide" offer
Blockbusting
The unlawful activity of inducing or attempting to induce a person to sell or rent a dwelling by making representations regarding the entry or prospective entry into the neighborhood of a person in one of the protected classes
Steering
The channeling of prospective homebuyers to or away from particular neighborhoods, thereby limiting their choices. A licensee cannot assume that a prospective home seeker expects to be directed to certain neighborhoods or properties.
Redlining
The practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the economic qualifications of the applicants is known as redlining. Keep in mind that a LENDING INSTITUTION CAN refuse a loan solely on s
FEDERAL Fair Housing Act of 1968
which made it illegal to discriminate based on a person's Race, Color, Religion, or National Origin in:
-The sale or rental of housing or residential lots
-Advertising the sale or rental of housing
-The financing of housing
-The provisions of real estate
rights have been violated
-File a complaint within ONE YEAR with the Virginia Real Estate Board
-File a complaint within TWO YEARS with the state court
alleged discriminatory act has occurred
--attempt to resolve, --administrative hearing may be held to determine whether to revoke..etc,
--least ten days before the conference, the Board write a report explaining their findings and conclusions of the investigation conducted
--violated any Fair H
civil action is taken by the attorney general, the following may be court-ordered:
--temporary or permanent injunction preventative relief against the respondent to refrain from discriminatory practices
--Award other relief as the court sees fit, such as compensatory or punitive damages
--Award the complainant attorney fees and costs, w
Committing following acts disciplined by the Virginia Real Estate Board
--Failing to comply with the rules of the Code of Virginia and board regulations (could be charged with "improper dealings")
--Not responding to a board inquiry within 21 days
--Failing to produce for the board any documentation regarding a real estate tr
Informal Fact Finding Conference (IFFC)
during which a member of the board listens to all involved parties, and makes a decision. He may dismiss the case, or allow the respondent to enter a consent order. Both of these "decisions" MUST have the ratification of the entire board membership.
***He
If he doesn't pay the assessment to the Transaction Recovery Fund
his license will be SUSPENDED AUTOMATICALLY
If a payment has to be made from the Transaction Recovery Fund
his license will be REVOKED AUTOMATICALLY
Virginia Non-Stock Corporations Act
Time Share
--may cancel the purchase contract for seven calendar days after execution
-- Payments made by the buyer before the cancellation must be refunded within 45 days
In advertising or marketing a time share interest that might include free prizes, the following must be CLEARLY disclosed:
--Retail value of the gift
--Condition under which the gift is being offered
--Odds of winning a prize (if one is offered)
--The expiration date of the offer
--A statement clearly telling the consumer that the offer is being made for the purpose of solici
VA Condo Act
--name of the condo
--legal description of the property
--plats and/or plans which specify each unit within the boundaries of the property
--EXACT description of each unit's boundaries
--desc. common elements and limited common elements
--specific provisi
declarant
is a natural or legal owner who "declares" his intention to commit a property to a condo regime.
Va condo Act Rules.
--declarant must pay assessments on unsold condominium units.
--The declarant, its predecessors or principal officer must undergo a debtor's relief proceeding.
--The condo must be governed by a unit owners' association.
--The declarant will retain control
fee simple" ownership in his unit
UNTIL ANY UNIT IS SOLD, it is the responsibility of the declarant. After a unit is sold, it becomes the responsibility of the buyer. Also, once 75% or more of the units are sold, the declarant is no longer responsible for the units, and instead, the respo
by-laws may be changed
if 33 1/3% of the voting members of the condominium vote for a change. This number is not always consistent, though - certain by-laws may require a different percentage - but by no means will be less than 25%.
Virginia Property Owners' Association Act
--provides a set of rules and regulations for a group of property owners linked together by the development in which they reside. The act states that if any one lot in the development is subject to the provisions of the act, then every lot is also subject
Virginia Real Estate Cooperative Act
--governs the corporations or associations formed by cooperatives. A cooperative is an apartment building or group of dwellings owned by a corporation; the stockholders are the residents of the structure(s). Each stockholder has an exclusive right to use
Common Interest Community Association Liaison
-deal with the administration, regulation and operation of common interest communities.
-ssists those who live in, manage, or maintain CIC
--it is allowed to give non-binding interpretations of the laws affecting such communities
***-Specifically on the C
Virginia Residential Property Disclosure Act
either provide a residential property disclosure statement (regarding the physical condition of the property)
--Water and sewer systems, insulation, structural systems, plumbing, electrical, heating and air conditioning systems, any wood-destroying insect
owner is not required
provide any independent inspection of the property in order to make the disclosures required by this regulation.
ARE NOT REQUIRED to be disclosed:
--If the property was the site of an accident which DID NOT affect the physical structure or environment
--If a homicide, suicide, or felony occurred on the site
--**If an occupant is/was affected with HIV (in fact, IF information regarding an HIV-infecte
Court-ordered transfers
order to settle an estate, handle a foreclosure, process a writ of execution, or handle eminent domain
Voluntary transfers
in between relatives, co-owners of the property, as the result of a divorce settlement, or for new homes
owner will not be held liable
for incorrect information supplied to him by a reliable third party, including surveyors, engineers, appraisers, public authorities, or home inspectors.
Consumer Real Estate Protection Act
**mandates that a specific disclosure be given IN BOLD-FACED TYPE regarding the choice of settlement agent and the unauthorized practice of law.
This applies to transactions:
--Involving the purchase of or lending on the security of real estate located in
Megan's Law
information about released sex offenders and "violent sex offenders" available to the public.
--BUYER'S responsibility to look into this "Megan's Law" information, if he/she so chooses.
Lead-based paint disclosure is necessary for any residential structures built prior to 1978.
--Disclosure of any known lead in the dwelling
--HUD pamphlet
--Risk assessment opportunity (which gives right to rescind contract for ten days).
HUD and EPA disclosure rules do not apply to the sale or lease of target housing are the following
Target housing foreclosure sales
Lease transactions with lead-based paint-free target housing
Lease renewals in which the tenant has already received the pertinent information
The sale or lease of a 0-bedroom property
Sale or lease of housing for the elde
Failure to comply with this act, under the EPA, could result in civil penalties
***maximum of $10,000 PER VIOLATION. In addition to (or instead of) civil penalties, criminal penalties of up to $10,000 PER VIOLATION, or IMPRISONMENT for a maximum of ONE YEAR, could be mandated!! As if that weren't enough, HUD may also assess penalties
Virginia Real Estate Transaction Recovery Fund
only pays ACTUAL losses and not interest or punitive damages
--"improper or dishonest conduct" means "only the wrongful and fraudulent taking or conversion of money, property or other things of value or material misrepresentation or deceit."
**fund is ove
2 receive a payment from the fund, the complainant must
--Have a judgment of "improper and dishonest conduct" from a Virginia court
--Take legal action against the licensee to prove he doesn't have the assets available to pay the claim
--If it's determined his assets are not sufficient, the claimant should fil
The following are not eligible to receive payments from the fund
Licensees
The spouse, children, or representatives of either, of the person against whom the judgment was made
A financial/lending institution
A person whose business involves the construction/development of real property
payment is made from the Transaction Recovery Fund FOR a licensee,,,
the licensee's license will be REVOKED AUTOMATICALLY!
Mechanic's Lien Notice
--Required to be included in the sales contract
--labor or furnishing materials in connection with the property within 120 days prior to settlement have been paid in full or to provide the name, address, and amount claimed by each person performing labor
Failure to comply with this act, under the EPA, could result in civil penalties
...