Update to Board Regulations Effective April 1
Please be aware of changes to Virginia Real Estate Board (VREB) Regulations effective Thursday, April 1.
Resources to prepare for these changes, including a redline of the previous regulations, FAQs, and a video update are available here.
Listed below are FAQs about the changes to the VREB Regulations (separated by categories).
What is the difference between statutes and regulations in Virginia real estate law?
Virginia real estate practice is governed by:
- Statutes (Code of Virginia) regulate the practice of real estate and consumer protections
- Regulations (18VAC135-20) govern licensing and operational requirements for real estate licensees
Statutes set the policy, and regulations provide specific, actionable instructions for compliance.
Why were the Virginia Real Estate Board (VREB) regulations updated?
The regulations are required to be reviewed and updated every 4 years. The purpose is to:
- Eliminate duplication with the Code of Virginia
- Modernize outdated provisions
- Streamline requirements affecting licensure
How is advertising now defined?
Advertising means any marketing or promotion of real estate and real estate-related services, regardless of the media.
What disclosure must appear in all advertising?
All advertising by a firm or affiliated licensee must contain a clear, legible, and conspicuous disclosure of both the firm’s name and office contact information.
What is “office contact information”?
Office contact information means a telephone number, email address, or web address of the firm or branch office, or a digital link thereto when used in digital advertising. The principal or supervising broker must determine what office contact information must appear in all advertising.
The contact information required by the principal or supervising broker must be clearly established in written brokerage office policy, including any additional information beyond the minimum regulatory disclosure that the firm may require.
What happened to the advertising categories in the old regulations?
The revised regulations eliminated the old categories of advertising, which previously treated various media differently. Now, one general advertising standard applies to all formats.
What happened to the “one-click rule” for websites?
The requirement that the brokerage name be “one click away” in electronic advertising has been removed. The disclosure of the firm name and office contact information must be included in all advertising regardless of the type of advertising. For online ads and posts, a digital link to the required office contact information must be used.
What has changed about operating a brokerage from a home office?
The requirements for home-based brokerages, including the prior requirement that offices be separate from living quarters and have a separate entrance, have been removed from the regulations.
What should firm brokers check before establishing a home-based office?
Brokers should verify whether their local zoning code allows home-based businesses. The enforcement of those rules is handled by local governments, not the VREB.
Are brokers still required to return licenses to DPOR when a licensee leaves a firm?
No. Brokers are no longer required to return physical license certificates to DPOR when a licensee leaves a firm. The brokerage must notify the VREB that the licensee is no longer affiliated with the firm to ensure the license status is properly updated.
Are there any changes to the duties of supervising brokers?
Yes. The regulations now explicitly state that supervising brokers must respond in a timely manner to the public, cooperating brokers, and affiliated licensees whom they supervise.
Were escrow requirements removed from the regulations?
Yes, the detailed escrow requirements were removed from the regulations and consolidated into the Virginia statutes. Escrow requirements still exist but are now located in the Code of Virginia instead of the VREB regulations.
When must brokerage self-audits be completed?
The audit must be completed within 90 days prior to the expiration of the firm’s license. This means it must be finished—not just started—during that timeframe.
Are there any new requirements concerning listing property for sale or for lease?
Yes, the VREB regulations now stipulate that real estate licensees must take reasonable steps to confirm the identity of a property owner or landlord before offering property for sale or for lease.
Can a licensee perform licensed activities for another brokerage?
No. The new regulations state a licensee may not perform licensed real estate activities, such as holding an open house or showing property for another firm, unless they hold a concurrent broker license with the other firm.