Source: http://register.dls.virginia.gov/details.aspx?id=3639
Timestamp: 2019-05-24 01:39:45
Document Index: 686688699

Matched Legal Cases: ['§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 2', '§ 54', '§ 54', '§ 54', '§ 54', '§ 6', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 2601', '§ 54']

Vol. 29 Iss. 22 (Proposed Regulation) 18VAC135-20, Virginia Real Estate Board Licensing Regulations July 01, 2013
Title of Regulation: 18VAC135-20. Virginia Real Estate Board Licensing Regulations (amending 18VAC135-20-10 through 18VAC135-20-45, 18VAC135-20-60, 18VAC135-20-70, 18VAC135-20-80, 18VAC135-20-101, 18VAC135-20-120, 18VAC135-20-140 through 18VAC135-20-240, 18VAC135-20-260 through 18VAC135-20-310, 18VAC135-20-360; adding 18VAC135-20-55, 18VAC135-20-165, 18VAC135-20-225; repealing 18VAC135-20-100, 18VAC135-20-105).
August 7, 2013 - 9 a.m. - Department of Professional and Occupational Regulation, 9960 Mayland Drive, Suite 200, Board Room 2, Richmond, VA
Basis: Section 54.1-201 of the Code of Virginia provides the general authority for the regulatory boards to promulgate regulations to administer the regulatory system. Section 54.1-2105 of the Code of Virginia provides that the Real Estate Board may do all things necessary and convenient for carrying into effect the provisions of its duties, including promulgating necessary regulations.
Purpose: Changes are made annually to the Real Estate Board's statutes by the General Assembly. Since the regulations have not undergone substantial revision since 2008, a thorough review was necessary to ensure the regulations complement the Real Estate Board's laws, provide minimum burdens on the regulants, protect the public, and reflect current procedures and policies of the board and the Department of Professional and Occupational Regulation.
Substance: Proposed changes are intended to improve the clarity of the regulations and ensure consistency with current practices and legal requirements and standards of practice in the industry. As a result of this thorough review, it was determined that sections pertaining to previous education requirements and additional qualifications for renewal of reciprocal license were no longer relevant. The subsection on duties of a supervising broker was moved from the place of business section to its own section to complement changes in the law. A new section was added on voluntary compliance to address a new section in the Code of Virginia. The board also amended 18VAC135-20-260 to clarify what actions constitute failure to safeguard the interests of the public and engaging in improper, fraudulent, or dishonest conduct.
Issues: The primary advantage to the public is that the revisions will improve the clarity of the regulations and ensure consistency with current board practices, legal requirements, and standards of practice in the industry—all to better protect the health, safety, and welfare of citizens of the Commonwealth.
The primary advantage to the Commonwealth is that the revisions to the regulations reflect the importance that Virginia places on ensuring regulations are not burdensome but provide protection to the citizens of the Commonwealth. No disadvantages to the Commonwealth could be identified.
Summary of the Proposed Amendments to Regulation. The Real Estate Board (the Board) proposes to 1) incorporate statutory voluntary audit and compliance procedures, 2) require a reciprocity licensee to pass the Board's written examination within 12 months prior to applying for a license pursuant to the changes in law, 3) require initial license applicants to submit to fingerprinting pursuant to changes in law, 4) allow a licensee to carry over excess continuing education credits into the next renewal period pursuant to changes in law, 5) allow a broker to downgrade his license to that of a salesperson, 6) remove the $90 cap on the license examination fee, and 7) require that a proprietary school applicant demonstrate a minimum net worth and offer more options to qualify for pre-license instructor certification.
Result of Analysis. There is insufficient data to accurately compare the magnitude of the benefits versus the costs for some of the proposed changes. The benefits exceed the costs for other proposed changes. Detailed analysis of the benefits and costs can be found in the next section.
Estimated Economic Impact. The proposed amendments mainly incorporate numerous changes made to the related statues since 2008. Pursuant to the Chapters 373 and 637 of the 2010 Acts of Assembly, one of the proposed changes incorporates voluntary audit and compliance procedures. This change requires a principal broker or a supervising broker to audit the practices, policies, and procedures of his firm or sole proprietorship at least once every two years. If the results of self audit indicate non-compliance with regulations or law, the broker is required to remedy the non-compliance. When such a report is submitted, it provides immunity to the broker from enforcement.
This requirement introduces additional compliance costs on the principal or supervising brokers in terms of added self audit costs. However, it also affords an opportunity to them to identify problematic practices and correct deficiencies voluntarily without risking enforcement action from the Board. The voluntary audit and compliance procedures are expected to improve compliance with the regulations and law without increasing the administrative costs of the Board. While the proposed voluntary audit and compliance procedures represent a significant change, they have already been implemented in practice under the statutory language. Thus, the proposed incorporation of the voluntary audit and compliance procedures in the regulations are not expected to create a significant economic impact upon incorporation of these amendments in the regulations.
Pursuant to the Chapters 373 and 637 of the 2010 Acts of Assembly, another proposed change requires a reciprocity licensee to pass the Boards written examination within 12 months prior to applying for a license. Previously, a reciprocity licensee could wait up to two years to pass the written test. This change shortens the time frame a reciprocity licensee can perform as a real estate salesperson or broker in Virginia from two years to 12 months. According to the Department of Professional Occupational Regulation (DPOR), a few hundred reciprocity licenses are granted in a year. Since this requirement has already been implemented under the statutory authority, no significant economic effect is expected from this proposed language upon its promulgation.
The proposed changes also require initial license applicants to submit to fingerprinting pursuant to Chapter 667 of the 2009 Acts of Assembly. This change is expected to affect approximately 3,000 individuals applying for licensure every year. The fingerprinting is estimated to cost $62 per case, of which $37 goes to the State Police and $25 goes to the vendor. This additional cost is paid by the applicant. The main benefit of this requirement is likely improved compliance with the Boards existing background requirements.
Pursuant to Chapter 750 of the 2012 Acts of Assembly, the proposed changes allow a licensee to carry over excess continuing education credits into the next renewal period if they are obtained six months prior to the license expiration date. This change is expected to benefit regulants who have taken more than the required amount of continuing education credits for renewal.
The proposed changes also allow a broker to downgrade his license to that of a salesperson. Such applicants are required to submit a complete application package for the salesperson license and be subject to the requirements of the broker license if he wishes to become licensed as a broker again. According to DPOR, some brokers no longer want to meet the continuing education requirements to maintain the broker license. While brokers are required to have 24 hours of continuing education per year, salespersons are required to have only 16 hours of continuing education per year. The additional 8 hours of continuing education is estimated to cost approximately $50. Of the 11,835 brokers, how many may choose this option is not known. The Board has already implemented this requirement. Thus, no significant economic effect is expected from this proposed language upon its promulgation.
One of the proposed changes removes the $90 cap on the license examination fee. The exam is administered by a contracted vendor. The current fee amount negotiated with the Board is $60 which is in effect until 2015. Currently, the regulations allow the exam fee to be adjusted according to proper procurement procedures not to exceed $90. The proposed removal of the cap will allow the Board to contract with a vendor with a negotiated price above $90 per exam when the contract needs to be renewed. Approximately, 6,300 individuals take this test every year.
The proposed changes require that a proprietary school applicant demonstrate a minimum net worth of $2,000 by a Certified Public Accountant certified letter and include more options to qualify for pre-license instructor certification. The net worth requirement has been established in guidance documents for three years. It was added to the regulation to require evidence of financial responsibility. Under the proposed changes, there are more options to qualify for pre-license instructor certification, but the applicant must meet two of the six options listed instead of one of the three. The Board receives 80 100 applications per year for pre-license instructor certification. The goal of this change is to make the instructor a more effective teacher. The board has also added a provision that would allow the board to waive the requirements if proof of experience in related field of real estate can be demonstrated.
The proposed changes also update the requirements for maintenance and management of financial records and actions that constitute an improper dealing pursuant to Chapter 461 of the 2011 Acts of Assembly; and the requirements for maintenance and management of escrow accounts pursuant to Chapter 181 of the 2010 Acts of Assembly.
Businesses and Entities Affected. This regulation change will affect all brokers, salespersons, business entities and firms. As of March 1, 2013, 55,753 individuals and 6,199 firms/sole proprietorships are regulated by the Board.
Projected Impact on Employment. While some of the changes discussed above are expected to have a positive impact on employment, some others are expected to have a negative impact. For example, voluntary audit and compliance procedures are likely to add to demand for labor. Shortening the time frame a reciprocity licensee can perform as an agent or broker in Virginia is likely to reduce supply of real estate professionals in Virginia. Fingerprinting requirements are likely to add to the demand for fingerprinting services. Being able to carryover excess continuing education credits are likely to reduce demand for continuing education services. Allowing a broker to downgrade his license to that of a salesperson is likely to reduce demand for continuing education services. The net impact of these opposing effects on employment is not known.
Effects on the Use and Value of Private Property. While some of the changes discussed above are expected to reduce compliance costs, some others are expected to increase them. For example, voluntary audit and compliance procedures, shortening the time frame a reciprocity licensee can perform as an agent or broker in Virginia, and fingerprinting requirements are likely to add to the compliance costs. Being able to carryover excess continuing education credits and allowing a broker to downgrade his license to that of a salesperson is likely to reduce the compliance costs. The net impact of these opposing effects on compliance costs and consequently on asset value of affected firms is not known.
Small Businesses: Costs and Other Effects. Most of the 6,199 firms/sole proprietorships are likely to be small businesses. Costs and other effects discussed above apply to them.
Small Businesses: Alternative Method that Minimizes Adverse Impact. Shortening the time frame a reciprocity licensee can perform as an agent or broker in Virginia and fingerprinting requirements are the changes with probably the most significant adverse impact. There is no known alternative that minimizes these adverse impacts.
Agency's Response to Economic Impact Analysis: The Real Estate Board concurs with approval with the economic impact analysis performed by the Department of Planning and Budget.
The proposed amendments (i) incorporate statutory voluntary audit and compliance procedures (Chapters 373 and 637 of the Acts of Assembly of 2010), (ii) require a reciprocity licensee to pass the board's written examination within 12 months prior to applying for a license (Chapters 373 and 637 of the Acts of Assembly of 2010), (iii) require initial license applicants to submit to fingerprinting (Chapter 667 of the Acts of Assembly of 2009), (iv) allow a licensee to carry over excess continuing education credits into the next renewal period (Chapter 750 of the Acts of Assembly of 2012), (v) allow a broker to downgrade his license to that of a salesperson, (vi) remove the $90 cap on the license examination fee, (vii) require that a proprietary school applicant demonstrate a minimum net worth, (viii) offer more options to qualify for prelicense instructor certification, (ix) change requirements for maintenance and management of financial records and amend the list of actions that constitute improper dealing (Chapter 461 of the Acts of Assembly of 2011), and (x) change the requirements for maintenance and management of escrow accounts (Chapter 181 of the Acts of Assembly of 2010).
"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.
7. The applicant, within 12 months prior to making complete application for a license, shall have passed a written examination provided by the board or by a testing service acting on behalf of the board.
18VAC135-20-55. Downgrade to salesperson's license.
A broker who wants to downgrade his license(s) to that of a salesperson must submit a complete application with appropriate fee. When downgrading the license(s), the licensee agrees his current broker's license(s) ceases to exist, and if he chooses to become licensed as a broker again, he must pass the current broker examination and must meet the current education and experience requirements in place at the time of application.
5. The applicant, within 12 months prior to making a complete application for a license, shall have passed a written examination provided by the board or by a testing service acting on behalf of the board covering Virginia real estate license law and regulations of the Real Estate Board.
7. 8. At the time of application for a salesperson's license, the applicant must have been actively engaged as defined by 18VAC135-20-10 for 12 of the preceding 36 months or have met educational requirements that are substantially equivalent to those required in Virginia. At the time of application for a broker's license, the applicant 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 and 54.1-2101 of the Code of Virginia. These requirements may be waived at the discretion of the board in accordance with § 54.1-2105 of the Code of Virginia.
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. Continuing education pursuant to § 54.1-2105 54.1-2105.03 of the Code of Virginia shall be completed within two years prior to activation of a license when the license has been inactive for more than 30 days. Any licensee who has not been active with a licensed real estate firm or sole proprietorship for a period of greater than three years shall 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 18VAC135-20-80.
C. A licensee who submits an activate application to the board shall not conduct business with the real estate firm or sole proprietorship set forth in the application until the application is processed and the license is issued by the board.
2. For salespersons, eight of the required 16 hours shall include two hours of training in fair housing laws, three hours in ethics and standards of conduct and a minimum of one hour each in state real estate laws and regulations legal updates and emerging trends, real estate agency and real estate contracts. For brokers, 16 of the 24 required hours shall include eight hours in supervision and management of real estate agents and the management of real estate brokerage firms, two hours of training in fair housing laws, three hours in ethics and standards of conduct and a minimum of one hour each in state real estate laws and regulations legal updates and emerging trends, real estate agency and real estate contracts. If the licensee submits a notarized affidavit to the board that certifies that he does not practice residential real estate brokerage, residential management or residential leasing and shall not do so during the licensing term, training in fair housing shall not be required; instead such licensee shall receive training in other applicable federal and state discrimination laws and regulations. The remaining hours shall be on subjects from the following list:
3. Salespersons holding licenses in other jurisdictions must complete eight hours, which shall include fair housing laws, state real estate laws and regulations legal updates and emerging trends, ethics and standards of conduct, and real estate agency and real estate contracts and may substitute education completed in their jurisdiction for the remaining hours required by subdivision 2 of this subsection section. Brokers holding licenses in other jurisdictions must complete 16 hours that shall include supervision and management of real estate agents and the management of real estate brokerage firms, fair housing laws, state real estate laws and regulations legal updates and emerging trends, ethics and standards of conduct, and real estate agency and real estate contracts and may substitute education completed in their jurisdiction for the remaining hours required by subdivision 2 of this subsection section.
D. 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.
The board has the power to fine any licensee and to suspend or revoke any license 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, Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2 of the Code of Virginia, where the licensee has been found to have violated or cooperated with others in violating any provision of Chapter 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 1.3 27.3 (§ 6.1-2.19 55-525.16 et seq.) of Title 6.1 55 of the Code of Virginia, or any regulation of the board. 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 Real Estate Board in performing any acts covered by §§ 54.1-2100 and 54.1-2101 of the Code of Virginia may be charged with improper dealings a violation, regardless of whether those acts are in the licensee's personal capacity or in his capacity as a real estate licensee.
B. No place of business shall be in a physical residence unless it is separate and distinct from the living quarters of the residence with its own entrance and is accessible by the public.
5. The supervising broker undertakes reasonable steps to ensure compliance by all licensees assigned to the branch office;, including but not limited to ensuring the licensees have an active, current license:
6. The supervising broker ensures only licensees undertake activities requiring a license, including but are not limited to:
7. A supervising broker shall provide adequate supervision over the unlicensed employee(s) or assistants under the supervision of a broker as they perform the following permitted activities:
a. Perform general clerical duties, including answering the phones and reading information shown on the listing;
2. When any principal broker is discharged or in any way terminates his active status with a firm, it shall be the duty of the firm to notify the board and return the license by certified mail to the board within three business days of termination or status change. The firm shall indicate on the license the date of termination, and shall sign the license before returning it. See § 54.1-2109 of the Code of Virginia for termination relating to the death or disability of the principal broker.
1. If money is to be held in escrow, each firm or sole proprietorship shall maintain in the name by which it is licensed one or more federally insured separate escrow accounts in a federally insured depository in Virginia into which all down payments, earnest money deposits, money received upon final settlement, 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 expended on behalf of the client, or other escrow funds received by him or his associates on behalf of his client or any other person shall be deposited unless all principals to the transaction have agreed otherwise in writing. The balance in the escrow accounts shall be sufficient at all times to account for all funds that are designated to be held by the firm or sole proprietorship. The principal broker shall be held responsible for these accounts, including having signatory authority on these accounts. The supervising broker and any other licensee with escrow account authority may be held responsible for these accounts. All such accounts, checks and bank statements shall be labeled "escrow" and the account(s) shall be designated as "escrow" accounts with the financial institution where such accounts are established.
1. a. Purchase transactions. Upon the ratification of a contract, earnest money deposits and down payments received by the principal broker or supervising broker or his associates must be placed in an escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the parties principals to the transaction, and shall remain in that account until the transaction has been consummated or terminated. In the event the transaction is not consummated (nonconsummation), the principal broker or supervising broker shall hold such funds in escrow until (i) all principals to the transaction have agreed in writing as to their disposition, and the money shall be returned to the agreed upon principal within 30 days of the agreement, or (ii) a court of competent jurisdiction orders such disbursement of the funds, or (iii) the funds are successfully interpleaded into a court of competent jurisdiction pursuant to this section, or (iv) the broker can pay the funds to the principal to the transaction who is entitled to receive them in accordance with the clear and explicit terms of the contract which established the deposit. In the latter event, prior to disbursement, the broker shall give written notice to the principal to the transaction not to receive the deposit by either (i) hand delivery receipted for by the addressee, or (ii) by certified mail return receipt requested, with a copy to the other party, that this payment will be made unless a written protest from that principal to the transaction is received by the broker within 30 days of the hand delivery or mailing, as appropriate, of that notice. If the notice is sent within 90 days of the date of nonconsummation, the broker may send the notice by receiptable email or facsimile if such email address or facsimile information is set forth in the contract or otherwise provided by the recipient. In all events, the broker may send the notice to the notice address, if any, set forth in the contract. If the contract does not contain a notice address and the broker does not have another address for the recipient of the notice, the broker may send it to the last known address of the recipient. No broker shall be required to make a determination as to the party entitled to receive the earnest money deposit. The broker shall not be deemed to violate any obligation to any client by virtue of making such a determination. A broker who has carried out the above procedure shall be construed to have fulfilled the requirements of this chapter.
1. Failing, as a principal or supervising broker, to retain for a period of three years from the date of the closing or ratification, if the transaction fails to close, a complete and legible copy of each disclosure of a brokerage relationship, and each executed contract, agreement, and closing statement related to a real estate transaction, in the broker's control or possession, unless prohibited by law execution, each brokerage agreement, each disclosure of a brokerage relationship to an unrepresented party, each disclosure and consent to dual agency or dual representation, and each disclosure and consent to designated agency or designated representation;
"Disclosure" in the context of online electronic media advertising means (i) advertising that contains the firm's licensed name, the city and state in which the firm's main office is located and the jurisdiction in which the firm holds a license or (ii) advertising that contains the licensee licensee's name, and the name of the firm with which the licensee is active, the city and state in which the licensee's office is located and the jurisdiction in which the licensee holds a license and is one click away from the main page. "Disclosure" in the context of other advertising means (a) (i) advertising by the firm that contains the firm's licensed name and the firm's address or (b) (ii) advertising by an affiliated licensee that contains the licensee's name, and the name of the firm with which the licensee is active and the firm's address.
2. All online electronic media advertising that can be viewed or experienced as a separate unit (i.e., e-mail email messages and web pages) must contain disclosure as follows:
b. E-mail, newsgroups, discussion lists, bulletin boards. All such formats shall include disclosure at the beginning or end of each message. The provisions of this subsection do not apply to correspondence in the ordinary course of business All other electronic media. Firm's name, licensee's name and license number, and contact information. The disclosure must be prominently displayed on the viewable page.
1. Signage shall include but not be limited to the firm's name and the firm's primary or branch office telephone number.
If a licensee knows or should have known that he, any member of his family, his firm, any member of his firm, or any entity in which he has an ownership interest, is acquiring or attempting to acquire or is selling or leasing real property through purchase, sale, or lease and the licensee is a party to the transaction, the licensee must disclose in writing that information he is a licensee and that he, any member of his family, his firm, any member of his firm, or any entity in which he has an ownership interest has or will have an ownership interest to the owner, purchaser or lessee in writing in the offer to purchase, the application, the offer to lease or lease other parties to the transaction. This disclosure shall be made to the purchaser, seller or lessee upon having substantive discussions about specific real property.
3. A licensee acting as a dual or designated agent or as a dual or designated representative shall obtain the written consent of all clients to the transaction at the earliest practical time. Such consent shall be presumed to have been given by a client who signs a disclosure complying with the provisions of §§ 54.1-2139 and 54.1-2139.1 of the Code of Virginia. Such disclosure shall 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.
18VAC135-20-225. Voluntary compliance.
A. Procedures for self audit or third-party audit; broker immunity.
1. A principal broker or supervising broker may conduct, or may have another person conduct, an audit of the practices, policies, and procedures of his firm or sole proprietorship in accordance with § 54.1-2111.1 of the Code of Virginia. A principal broker or supervising broker shall conduct an audit at least once during each license term in accordance with § 54.1-2106.2 of the Code of Virginia. The methods and findings of the audit shall be documented as described in this subsection.
5. Immunity from enforcement acton provided by this section shall apply only to the principal broker and supervising broker who conduct an audit and submit a voluntary compliance plan in accordance with this section and shall not extend to any other broker or salesperson who may not be in compliance with Real Estate Board regulations or law.
B. Information needed for audit. In conducting an audit of practices, policies, and procedures of a broker, the principal broker or supervising broker or a third party shall examine and document all matters regarding the compliance by the firm or sole proprietorship with law and regulation regarding:
1. Proper handling of escrow deposits and maintenance of a complete record of financial transactions;
2. 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;
3. Advertising in all forms and media;
4. Negotiation and drafting of contracts, leases, and brokerage agreements;
5. Use of unlicensed individuals;
6. Agency relationships;
7. Distribution of information on new or changed statutory or regulatory requirements;
8. Proper documentation of required disclosures; and
9. Such other matters as necessary to assure 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.
5. Signing an experience verification form without direct supervision or actual knowledge of the applicant's activities as defined in §§ 54.1-2100 and 54.1-2101 of the Code of Virginia;
6. Having been convicted or found guilty regardless of the manner of adjudication in any jurisdiction of the United States of a misdemeanor involving moral turpitude, sexual offense, drug distribution or physical injury, or any felony, there being no appeal pending therefrom or the time for appeal having elapsed. Review of convictions shall be subject to the requirements of § 54.1-204 of the Code of Virginia. Any plea of nolo contendere shall be considered a conviction for the purposes of this subdivision. The record of a conviction certified or authenticated in such form as to be admissible in evidence under the laws of the jurisdiction where convicted shall be admissible as prima facie evidence of such conviction or guilt;
a. A broker failing to ensure proper supervision and accountability over the firm's day-to-day financial dealings, escrow account or accounts, and daily operations;
b. A broker failing to ensure the transaction was properly released and the money disbursed according to the regulations;
c. A broker failing to ensure salespersons working at the firm or sole proprietorship hold active licenses while practicing real estate;
g. A licensee failing to submit to the broker in a timely manner, all earnest money deposits, contracts, listing agreements, deeds of lease, or any other documents for which the broker has oversight duites;
h. A salesperson negotiating leases, collecting security deposits, and receiving management fees for managing properties through an unlicensed firm without a principal broker;
i. A salesperson operating an unlicensed firm acting as a principal broker;
j. A licensee practicing real estate with an inactive license;
k. A licensee providing the broker with an earnest money deposit check from an account with insufficient funds causing an escrow shortage;
l. A licensee providing lockbox codes to an unlicensed person allowing unsupervised access to a home;
n. A licensee submitting altered copies of a contract or contracts to the broker; and
c. A licensee failing to obtain a client's written or legal permission or authorization to sign documents;
d. A licensee making an earnest money deposit payable to himself or cashing the check without written authorization;
h. A licensee representing in offers he received the earnest money deposit when he knows the check is worthless; and
3. Acting Performing regulated activities as a standard agent, limited service agent, or independent contractor for any client outside the licensee's brokerage firm(s) or sole proprietorship(s) without the written consent of the principal broker.
2. Accepting a commission, fee, or other valuable consideration, as a real estate salesperson or associate broker, for any real estate services from any person or entity except the licensee's principal broker at the time of the transaction, for the performance of any of the acts specified in Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or the regulations of the board or related to any real estate transaction, without the consent of that broker. Unless he has notified the broker in writing of the activity or activites to be pursued and obtained the prior written consent of the principal broker, no salesperson or associate broker shall (i) use any information about the property, the transaction or the parties to the transaction, gained as a result of the performance of acts specified in Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or (ii) act as an employee of a company providing real estate settlement services as defined in the Real Estate Settlement Procedures Act (12 USC § 2601 et seq.) or pursuant to a license issued by the Commonwealth of Virginia to provide real estate settlement services to clients or customers of the firm;
9. Knowingly making any material misrepresentation or making a material misrepresentation; and
18VAC135-20-310. Delivery of instruments.
D. Prelicense courses must be acceptable to the board, be taught by a certified prelicense instructor, and are required to have a monitored, final written examination. Distance learning prelicense courses may be considered as meeting the board's standard of quality if they have Association of Real Estate License Law Officials (ARELLO) distance education certification, or a substantially equivalent distance education certification, and online distance learning courses must include a timer requiring licensees to be actively engaged online learning course content for at least 50 minutes to receive one hour of credit. Those schools which propose to offer prelicensing courses (Principles and Practices of Real Estate, Real Estate Brokerage, Real Estate Finance, Real Estate Law or Real Estate Appraisal, etc.) must submit a request, in writing, to the board prior to offering the course(s) and supply the following information:
E. Providers of continuing education and post license education courses shall submit all subjects to the board for approval prior to initially offering the course. 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. Distance learning continuing education and post license education courses may be considered as meeting the board's standard of quality if they have Association of Real Estate License Law Officials (ARELLO) distance education certification, or a substantially equivalent distance education certification, and online distance learning courses must include a timer requiring licensees to be actively engaged online learning course content for at least 50 minutes to receive one hour of credit. The board shall 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 and 54.1-2101 of the Code of Virginia.
VA.R. Doc. No. R12-3250; Filed June 7, 2013, 1:24 p.m.