2006 Code of Virginia § 54.1-2105 - (Effective until July 1, 2007) General powers of Real Estate Board; regulations; educational and ex...

54.1-2105. (Effective until July 1, 2007) General powers of Real EstateBoard; regulations; educational and experience requirements for licensure;continuing education.

A. The Board may do all things necessary and convenient for carrying intoeffect the provisions of this chapter and may promulgate necessaryregulations.

B. The Board shall include in its regulations educational requirements asconditions for licensure to ensure the protection of the public interest,including a requirement that an applicant have, at a minimum, a high schooldiploma or its equivalent. The Board is authorized to regulate any schoolthat is established to offer real estate courses except such schools as areregulated by another state agency. Such authority shall include, but not belimited to, qualification of instructors, approval of course curricula, andrequirement that such schools submit evidence of financial responsibility toensure that these schools protect the public health, safety, and welfare. TheBoard shall have the discretion to waive any requirement under theregulations relating to education or experience when the broker orsalesperson is found to have education or experience equivalent to thatrequired. No regulation imposing educational requirements for initiallicensure beyond those specified by law shall apply to any person who waslicensed prior to July 1, 1975, and who has been continuously licensed sincethat time, except that licensure as a salesperson prior to such time shallnot exempt a salesperson who seeks to be licensed as a broker from theeducational requirements established for brokers. Regulations promulgated bythe Board shall include the following requirements:

1. a. Every applicant to the Board for an initial license as a real estatesalesperson shall have completed a course in the principles of real estatethat carried an academic credit of at least three semester hours or sixquarter hours (but not less than 45 hours of classroom or correspondence orother distance learning instruction in any case). The course shall be oneoffered by an accredited university, college, community college, high schooloffering adult distributive education courses, or other school or educationalinstitution offering an equivalent course.

b. However, on and after January 1, 1991, the academic credit required forthe initial license as a real estate salesperson shall be at least foursemester hours, but not less than 60 hours of classroom, correspondence, orother distance learning instruction.

2. Every applicant to the Board for an initial license as a real estatebroker shall have completed not less than 12 semester hours of classroom orcorrespondence or other distance learning instruction in real estate coursesoffered by an accredited university, college, community college, or otherschool or educational institution offering equivalent courses.

C. The Board shall establish criteria to ensure that prelicensure and brokerlicensure courses meet the standards of quality deemed by the Board to benecessary to protect the public interests. For correspondence and otherdistance learning instruction offered by an approved provider, such criteriamay include appropriate testing procedures. The Board may establishprocedures to ensure the quality of the courses.

Noncollegiate institutions shall not be authorized to grant collegiatesemester hours for academic credit.

The specific content of the real estate courses shall be in real estatebrokerage, real estate finance, real estate appraisal, real estate law, andsuch related subjects as are approved by the Board.

D. The Board shall establish guidelines for an educational curriculum of atleast 30 hours of classroom, or correspondence or other distance learning,instruction, in specified areas, which shall be required of all licenseeswithin the first two years of issuance of a license by the Board. Failure ofa new licensee to complete the 30-hour curriculum within two years ofobtaining a real estate salesperson's license shall result in nonrenewal bythe Board of such license until the curriculum has been completed.

To establish the guidelines required by this subsection, the Board shallestablish an industry advisory group to focus on the following three practicetracks: (i) residential real estate, (ii) commercial real estate, and (iii)property management. The industry advisory group shall consist of licensedreal estate salespersons and real estate brokers, and meet at the directionof the Board, at least annually, to update the guidelines in each of thethree educational practice tracks. The Board shall review and may approveeducational curriculum developed by an approved school or other provider ofreal estate education authorized by this chapter. The industry advisorygroups shall serve at no cost to the Board.

The guidelines in each of the three practice tracks for new licensees shallinclude topics that new licensees need to know in their respective practices,including, but not limited to, contract writing, handling customer deposits,listing property, leasing property, agency, current industry issues andtrends, property owners' and condominium association law, landlord-tenantlaw, Board regulations, and such other topics as designated by the Board. Thecontinuing education requirements of this subsection for new licensees shallbe in lieu of the continuing education requirements otherwise specified inthis chapter and Board regulations.

E. The Board shall include in its regulations educational requirements as acondition for relicensure of brokers and salespersons to whom active licenseshave been issued by the Board beyond those now specified by law as conditionsfor licensure. Brokers and salespersons to whom active licenses have beenissued by the Board shall be required to satisfactorily complete courses ofnot less than 16 hours of classroom or correspondence or other distancelearning instruction during each licensing term. Of the total 16 hours, thecurriculum shall include a minimum of eight required hours to include ethicsand standards of conduct, fair housing, legal updates and emerging trends,real estate agency, and real estate contracts. Fair housing requirementsshall consist of a minimum of two hours including an update on current casesand administrative decisions under fair housing laws. If the licensee submitsa notarized affidavit to the Board that certifies that he does not practiceresidential real estate and shall not do so during the licensing term,training in fair housing shall not be required; instead, such licensee shallreceive training in other applicable federal and state discrimination lawsand regulations. The remaining eight hours shall be elective and shallinclude real estate-related subjects as are approved by the Board. Forcorrespondence and other distance learning instruction offered by an approvedprovider, the Board shall establish the appropriate testing procedures toverify completion of the course and require the licensee to file a notarizedaffidavit certifying compliance with the course requirements. The Board mayestablish procedures to ensure the quality of the courses. The Board shallnot require testing for continuing education courses completed throughclassroom instruction. For purposes of this chapter, "distance learning"means instruction delivered by an approved provider through a medium otherthan a classroom setting. Such courses shall be those offered by anaccredited university, college, community college, high school offering adultdistributive education courses, other school or educational institution, orreal estate professional association or related entities.

F. The Board shall include in its regulations a procedure for processingapplications of educational institutions, real estate professionalassociations, or related entities, to provide continuing education courses,which procedure, at a minimum, shall (i) provide for a broad range of subjectmatters suitable for the continuing education of licensed professionals in amultifamily residential and commercial office, as well as single-familyresidential, sales, leasing and property management; (ii) acknowledge, inwriting, receipt of such applications within 10 calendar days after receipt;and (iii) provide written notification to the applicant, within 75 calendardays of receipt of the application, whether the application has been approvedor disapproved, and if disapproved, the reasons therefor. In addition, theBoard shall prepare a comprehensive listing of courses, pre-approved by theBoard, related to the professional competency requirements for themultifamily residential and commercial office industries.

The Board, through regulation, shall develop criteria for evaluating andapproving continuing education course credits and for awarding credit hoursfor such courses. The Board shall approve recommended course titles, content,and hours of continuing education credit developed and published by nationalprofessional real estate trade associations, unless the Board determines inwriting that such titles, content, or credit hours should not be approved andspecifies the reasons therefor.

G. As of July 1, 1990, every applicant for relicensure as an activesalesperson or broker shall complete the continuing education requirementsprior to each renewal or reinstatement of his license. The continuingeducation requirement shall also apply to inactive licensees who makeapplication for an active license. Notwithstanding this requirement, militarypersonnel called to active duty in the Armed Forces of the United States maycomplete the required continuing education within six months of their releasefrom active duty.

H. The Board shall also include in its regulations remedial educationalrequirements for any salesperson or broker who has been inactive for morethan three years. The regulations shall require the applicant to meet theeducational requirements for a salesperson or broker in effect at the timeeither becomes active.

I. When the license has been inactive for more than three years, the Boardmay waive the educational requirements for reactivation of a license underthe following conditions: (i) during the time the license has been inactive,the holder of such inactive license has been engaged in an occupation wherebythe knowledge of real estate would be retained or (ii) the holder of suchlicense is a member or the spouse of a member of the Armed Forces of theUnited States who has been permanently assigned outside Virginia for aportion of the time the license has been inactive, and the holder of theinactive license remained current in the field of real estate anddemonstrates this fact to the satisfaction of the Board.

(Code 1950, 54-740; 1974, c. 663; 1977, c. 3; 1980, c. 571; 1981, c. 117;1984, cc. 201, 283; 1985, c. 116; 1988, cc. 9, 765; 1989, c. 244; 1991, c.576; 1992, cc. 65, 446, 624, 717; 1995, c. 125; 1996, cc. 890, 903; 1997, c.389; 1998, c. 268; 2000, c. 759; 2003, cc. 998, 1027; 2006, c. 61.)

54.1-2105. (Effective July 1, 2007) General powers of Real Estate Board;regulations; educational and experience requirements for licensure;continuing education.

A. The Board may do all things necessary and convenient for carrying intoeffect the provisions of this chapter and may promulgate necessaryregulations.

B. The Board shall include in its regulations educational requirements asconditions for licensure to ensure the protection of the public interest,including a requirement that an applicant have, at a minimum, a high schooldiploma or its equivalent. The Board is authorized to regulate any schoolthat is established to offer real estate courses except such schools as areregulated by another state agency. Such authority shall include, but not belimited to, qualification of instructors, approval of course curricula, andrequirement that such schools submit evidence of financial responsibility toensure that these schools protect the public health, safety, and welfare. TheBoard shall have the discretion to waive any requirement under theregulations relating to education or experience when the broker orsalesperson is found to have education or experience equivalent to thatrequired. No regulation imposing educational requirements for initiallicensure beyond those specified by law shall apply to any person who waslicensed prior to July 1, 1975, and who has been continuously licensed sincethat time, except that licensure as a salesperson prior to such time shallnot exempt a salesperson who seeks to be licensed as a broker from theeducational requirements established for brokers. Regulations promulgated bythe Board relating to initial licensure shall include the followingrequirements:

1. a. Every applicant to the Board for an initial license as a real estatesalesperson shall have completed a course in the principles of real estatethat carried an academic credit of at least three semester hours or sixquarter hours (but not less than 45 hours of classroom or correspondence orother distance learning instruction in any case). The course shall be oneoffered by an accredited university, college, community college, high schooloffering adult distributive education courses, or other school or educationalinstitution offering an equivalent course.

b. However, on and after January 1, 1991, the academic credit required forthe initial license as a real estate salesperson shall be at least foursemester hours, but not less than 60 hours of classroom, correspondence, orother distance learning instruction.

2. Every applicant to the Board for an initial license as a real estatebroker shall have completed not less than 12 semester hours of classroom orcorrespondence or other distance learning instruction in real estate coursesoffered by an accredited university, college, community college, or otherschool or educational institution offering equivalent courses.

C. The Board shall establish criteria to ensure that prelicensure and brokerlicensure courses meet the standards of quality deemed by the Board to benecessary to protect the public interests. For correspondence and otherdistance learning instruction offered by an approved provider, such criteriamay include appropriate testing procedures. The Board may establishprocedures to ensure the quality of the courses.

Noncollegiate institutions shall not be authorized to grant collegiatesemester hours for academic credit.

The specific content of the real estate courses shall be in real estatebrokerage, real estate finance, real estate appraisal, real estate law, andsuch related subjects as are approved by the Board.

D. The Board shall establish guidelines for an educational curriculum of atleast 30 hours of classroom, or correspondence or other distance learning,instruction, in specified areas, which shall be required of all licenseeswithin the first two years of issuance of a license by the Board. Failure ofa new licensee to complete the 30-hour curriculum within two years ofobtaining a real estate salesperson's license shall result in nonrenewal bythe Board of such license until the curriculum has been completed.

To establish the guidelines required by this subsection, the Board shallestablish an industry advisory group to focus on the following three practicetracks: (i) residential real estate, (ii) commercial real estate, and (iii)property management. The industry advisory group shall consist of licensedreal estate salespersons and real estate brokers, and meet at the directionof the Board, at least annually, to update the guidelines in each of thethree educational practice tracks. The Board shall review and may approveeducational curriculum developed by an approved school or other provider ofreal estate education authorized by this chapter. The industry advisorygroups shall serve at no cost to the Board.

The guidelines in each of the three practice tracks for new licensees shallinclude topics that new licensees need to know in their respective practices,including, but not limited to, contract writing, handling customer deposits,listing property, leasing property, agency, current industry issues andtrends, property owners' and condominium association law, landlord-tenantlaw, Board regulations, and such other topics as designated by the Board. Thecontinuing education requirements of this subsection for new licensees shallbe in lieu of the continuing education requirements otherwise specified inthis chapter and Board regulations.

E. The Board shall include in its regulations educational requirements as acondition for relicensure of brokers and salespersons to whom active licenseshave been issued by the Board beyond those now specified by law as conditionsfor licensure. Brokers and salespersons to whom active licenses have beenissued by the Board shall be required to satisfactorily complete courses ofnot less than 16 hours of classroom or correspondence or other distancelearning instruction during each licensing term. Of the total 16 hours, thecurriculum shall include a minimum of eight required hours to include ethicsand standards of conduct, fair housing, legal updates and emerging trends,real estate agency, and real estate contracts. Fair housing requirementsshall consist of a minimum of two hours including an update on current casesand administrative decisions under fair housing laws. If the licensee submitsa notarized affidavit to the Board that certifies that he does not practiceresidential real estate and shall not do so during the licensing term,training in fair housing shall not be required; instead, such licensee shallreceive training in other applicable federal and state discrimination lawsand regulations. The Board shall approve a continuing education curriculum ofnot less than two hours, and as of July 1, 2007, every applicant forrelicensure as an active salesperson or broker shall complete at a minimumone two-hour continuing education course on limited service agency prior torenewal or reinstatement of his license. If the licensee submits a notarizedaffidavit to the Board which certifies that he has taken a two-hourcontinuing education course on limited service agency between July 1, 2006,and June 30, 2007, offered by a school approved by the Board, which, in thedetermination of the Board, covered substantially the information in acontinuing education course approved by the Board subsequent to July 1, 2007,the licensee may receive credit for the two hours of continuing education. Ifthe licensee submits a notarized affidavit to the Board which certifies thathe does not practice residential real estate and shall not do so during thelicensing term, training in limited service agency shall not be required. Alicensee who takes one two-hour continuing education class on limited serviceagency shall satisfy the requirements for continuing education and may butshall not be required to take any further continuing education on limitedservice agency.

The remaining eight hours shall be elective and shall include realestate-related subjects as are approved by the Board.

For correspondence and other distance learning instruction offered by anapproved provider, the Board shall establish the appropriate testingprocedures to verify completion of the course and require the licensee tofile a notarized affidavit certifying compliance with the courserequirements. The Board may establish procedures to ensure the quality of thecourses. The Board shall not require testing for continuing education coursescompleted through classroom instruction.

For purposes of this chapter, "distance learning" means instructiondelivered by an approved provider through a medium other than a classroomsetting. Such courses shall be those offered by an accredited university,college, community college, high school offering adult distributive educationcourses, other school or educational institution, or real estate professionalassociation or related entities.

F. The Board shall include in its regulations, a procedure for processingapplications of educational institutions, real estate professionalassociations, or related entities, to provide continuing education courses,which procedure, at a minimum, shall (i) provide for a broad range of subjectmatters suitable for the continuing education of licensed professionals in amultifamily residential and commercial office, as well as single-familyresidential, sales, leasing and property management; (ii) acknowledge, inwriting, receipt of such applications within 10 calendar days after receipt;and (iii) provide written notification to the applicant, within 75 calendardays of receipt of the application, whether the application has been approvedor disapproved, and if disapproved, the reasons therefor. In addition, theBoard shall prepare a comprehensive listing of courses, pre-approved by theBoard, related to the professional competency requirements for themultifamily residential and commercial office industries.

The Board, through regulation, shall develop criteria for evaluating andapproving continuing education course credits and for awarding credit hoursfor such courses. The Board shall approve recommended course titles, content,and hours of continuing education credit developed and published by nationalprofessional real estate trade associations, unless the Board determines inwriting that such titles, content, or credit hours should not be approved andspecifies the reasons therefor.

G. Every applicant for relicensure as an active salesperson or broker shallcomplete the continuing education requirements prior to each renewal orreinstatement of his license. The continuing education requirement shall alsoapply to inactive licensees who make application for an active license.Notwithstanding this requirement, military personnel called to active duty inthe Armed Forces of the United States may complete the required continuingeducation within six months of their release from active duty.

H. The Board shall also include in its regulations remedial educationalrequirements for any salesperson or broker who has been inactive for morethan three years. The regulations shall require the applicant to meet theeducational requirements for a salesperson or broker in effect at the timeeither becomes active.

I. When the license has been inactive for more than three years, the Boardmay waive the educational requirements for reactivation of a license underthe following conditions: (i) during the time the license has been inactive,the holder of such inactive license has been engaged in an occupation wherebythe knowledge of real estate would be retained or (ii) the holder of suchlicense is a member or the spouse of a member of the Armed Forces of theUnited States who has been permanently assigned outside Virginia for aportion of the time the license has been inactive, and the holder of theinactive license remained current in the field of real estate anddemonstrates this fact to the satisfaction of the Board.

(Code 1950, 54-740; 1974, c. 663; 1977, c. 3; 1980, c. 571; 1981, c. 117;1984, cc. 201, 283; 1985, c. 116; 1988, cc. 9, 765; 1989, c. 244; 1991, c.576; 1992, cc. 65, 446, 624, 717; 1995, c. 125; 1996, cc. 890, 903; 1997, c.389; 1998, c. 268; 2000, c. 759; 2003, cc. 998, 1027; 2006, c. 61, 627.)