Chap 25 Virginia Licensing Regulation

Question 1

What is the Code of Virginia?

Answer 1

The statutory law that regulates the practice of real estate professionals in Virginia.

It includes laws passed by the General Assembly and signed by the Governor.

Question 2

What titles in the Code of Virginia pertain to real estate?

Answer 2

• Title 54.1: Professions and Occupations
• Title 55.1: Property and Conveyances

Question 3

What is the purpose of the Code of Virginia regarding real estate?

Answer 3

To protect the public interest against fraud, misrepresentation, dishonesty, and incompetence in real estate transactions.

Question 4

How is the content of the Code of Virginia organized?

Answer 4

By titles, which are then organized into chapters based on subject matter.

Question 5

What powers does the Commonwealth have regarding the rights to engage in lawful professions?

Answer 5

The Commonwealth may use its police powers to modify or amend those rights when public health, safety, and welfare is at risk.

Question 6

What does Chapter 1 of Title 54.1 address?

Answer 6

Provisions that provide the right and protection for individuals to engage in any lawful profession.

Question 7

What is required for regulations in the Code of Virginia?

Answer 7

They must be reviewed at least annually for conflicts with the U.S. Constitution, Virginia Constitution, and applicable laws.

Question 8

What does Chapter 21 of Title 54.1 regulate?

Answer 8

Regulations for brokers, sales persons, and rental location agents within the practice of real estate.

Question 9

What types of license requirements are included in Chapter 21?

Answer 9

Licensure requirements including renewals, brokerage relationships, and regulations regarding the Real Estate Board.

Question 10

Fill in the blank: The practice of real estate in Virginia is regulated under Title _____ of the Code of Virginia.

Answer 10

54.1

Question 11

True or False: The General Assembly amends the Code of Virginia during its annual meeting.

Answer 11

True

Question 12

What does Virginia law include as real estate?

Answer 12

Real estate includes condominiums, leaseholds, timesharing, and any other interest in real property, including cooperative units treated as personal property

Cooperative members’ shares are considered personal property, distinguishing them from real estate interests.

Question 13

What is the mission of the Department of Professional and Occupational Regulation (DPOR)?

Answer 13

The DPOR’s mission is to serve and protect the public by licensing qualified individuals and businesses and enforcing laws regarding professional conduct

This includes oversight of various professions to ensure compliance with regulations.

Question 14

Who heads the Department of Professional and Occupational Regulation?

Answer 14

The DPOR is headed by a Director appointed by the Governor and confirmed by the General Assembly

The Director serves at the pleasure of the Governor for the same term.

Question 15

What powers does the Director of the DPOR have?

Answer 15

The Director supervises the Department, exercises powers, and performs duties as required by the Governor, including the authority to investigate statute and regulation violations

This includes appointing investigators to assist in these investigations.

Question 16

What is the title of Title 55.1?

Answer 16

Title 55.1 is titled Property and Conveyances

It includes regulations and laws related to property transactions and rights.

Question 17

What does Subtitle I of Title 55.1 cover?

Answer 17

Subtitle I covers estates, conveyances (fraudulent and voluntary), deeds, covenants, and several property regulations

This subtitle addresses foundational aspects of property law.

Question 18

What is included in Subtitle II of Title 55.1?

Answer 18

Subtitle II covers settlements and recordation, including the Virginia Residential Property Disclosure Act

This subtitle outlines the requirements for property disclosures in real estate transactions.

Question 19

What does Subtitle III of Title 55.1 address?

Answer 19

Subtitle III covers the Virginia Residential Landlord and Tenant Act, along with leases and other rental conveyances

This subtitle sets the legal framework for landlord-tenant relationships.

Question 20

What regulations are found in Subtitle IV of Title 55.1?

Answer 20

Subtitle IV covers regulations for property owners’ associations, condominiums, cooperatives, time-shares, and subdivided land sales

This subtitle governs the operation and management of various property ownership structures.

Question 21

What does Subtitle V of Title 55.1 include?

Answer 21

Subtitle V includes miscellaneous items such as escheats, unclaimed property, trespasses, and self-service storage facilities

This subtitle addresses various legal issues that may arise in property law.

Question 22

What defines an ‘active’ real estate broker or salesperson?

Answer 22

An active broker or salesperson is one performing real estate activities under the supervision of a principal or supervising broker

This status indicates ongoing engagement in real estate practices.

Question 23

What does ‘actively engaged’ mean in real estate?

Answer 23

Actively engaged means a broker or salesperson performs real estate activities for an average of at least 40 hours per week

This designation indicates a full-time commitment to real estate activities.

Question 24

What is an associate broker?

Answer 24

An associate broker is an individual who holds a broker’s license but has not been designated as the principal broker

This status allows for participation in real estate transactions without the full responsibilities of a principal broker.

Question 25

What is a branch office in the context of real estate?

Answer 25

A branch office is an office location other than the main office where business is conducted under the same brokerage name and registration ## Footnote This allows for expanded real estate operations under a single brokerage.

Question 26

Define a broker in real estate.

Answer 26

A broker is any individual or business entity who receives or expects to receive compensation for performing real estate activities pertaining to real estate or improvements for others and is appropriately licensed ## Footnote This includes a variety of activities such as selling, leasing, and managing properties.

Question 27

What is a business entity?

Answer 27

A partnership, association, corporation, or limited liability company

Question 28

What is a concurrent license?

Answer 28

A license issued by the board to brokers active in more than one firm

Question 29

Define a firm in real estate terms.

Answer 29

Any sole proprietorship (not owned by a broker), partnership, association, or corporation which is required to obtain a separate brokerage firm license

Question 30

What is the status of an inactive license?

Answer 30

License status of any broker or salesperson who is not under the supervision of a principal broker, not active with a firm or sole proprietorship, and not performing any real estate activities

Question 31

Who is considered a licensee?

Answer 31

Any appropriately licensed real estate broker, associate broker, salesperson, or real estate firm

Question 32

What is personal property?

Answer 32

Property that is located on land and is movable

Question 33

Who is the principal broker?

Answer 33

The individual broker designated by his or her firm to assure compliance with Chapter 21 and to receive communications from the REB

Question 34

What responsibilities does the principal broker have?

Answer 34

Responsibility for all activities of the firm and its licenses, and signatory authority on all of the firm's escrow accounts

Question 35

Who is the principal to a transaction?

Answer 35

A party to a real estate transaction, such as a seller, buyer, landlord, tenant, optionor, optionee, licensor, or licensee

Question 36

Define real property.

Answer 36

Consists of land and anything attached to the land that has become permanent and immovable; includes all rights and profits arising from the land

Question 37

What is reciprocity in real estate licensing?

Answer 37

An agreement between two states wherein real estate license qualifications from one state are recognized for licensure in the other state without retaking education coursework and the national examination

Question 38

What is a Salesperson in real estate?

Answer 38

An appropriately licensed individual or business entity employed by or affiliated as an independent contractor with a real estate broker performing real estate activities for compensation or valuable consideration.

Question 39

Define Sole proprietor.

Answer 39

Any individual trading under their own name or an assumed or fictitious name. A corporation, limited liability company, partnership, or association may not be a sole proprietor.

Question 40

Who is a Supervising broker?

Answer 40

An individual broker designated to supervise the provision of real estate brokerage services by associate brokers and salespersons assigned to branch offices or real estate teams.

Question 41

What is Valuable consideration?

Answer 41

The legal benefit that each party to a transaction receives or expects to receive, which can be monetary or non-monetary such as services, personal property, or a promise.

Question 42

How many Titles are in the Virginia Administrative Code?

Answer 42

24 Titles.

Question 43

What does Title 18 of the Virginia Administrative Code cover?

Answer 43

Professional and Occupational Licensing, including Virginia Real Estate Board licensing regulations within Agency 135, Chapter 20.

Question 44

What is the primary function of the Virginia Real Estate Board (REB)?

Answer 44

To certify and license individuals wishing to conduct real estate business and to enforce, amend, and promulgate rules and regulations.

Question 45

Under which department does the Virginia Real Estate Board operate?

Answer 45

The Department of Professional and Occupational Regulation (DPOR).

Question 46

True or False: A corporation can be a sole proprietor.

Answer 46

False.

Question 47

Fill in the blank: The REB has the authority to ________ rules and regulations to execute the law.

Answer 47

[promulgate]

Question 48

What does DPOR stand for?

Answer 48

Department of Professional and Occupational Regulation.

Question 49

What role does the Director of DPOR serve for the REB?

Answer 49

Acts as the secretary for the REB, maintains all REB records, and collects fees.