This time of year, you’re probably accustomed to seeing information from us about the new laws that will (mostly) become effective on July 1st. While that is still the case this year (and don’t worry, we’ll be putting out tons of info on new laws later in the spring), this year has a second opportunity for education: new regulations! 

First, a quick primer. As you’ve probably heard through any of your CE classes, your actions as a real estate licensee are governed by both the Virginia Code (aka the laws passed by the General Assembly) and the Virginia state regulations (regs). While the Code changes every year, the regulations don’t have such a consistent schedule. The regs must go to public comment, and then they go to the governor for signature before they are effective. This year’s changes will be the first changes to the real estate regs since 2019. 

Enough about process. You want to know what’s changed, right? Well, there quite a few changes (some big and some small), and we’ll get into this in much greater detail in the next few months. But here are a few big-ticket changes: 

• The regs are significantly shorter than they used to be. This comes from eliminating items that were duplicated in the Code and from cleaning up old language. 

• The regs refer to the Code more than before. For example, 18 VAC 135-20-165 used to have over twenty separate requirements for supervising and principal brokers. Now there are only four, because the regs simply refer to the duties already laid out in Virginia Code § 54.1-2110.1. 

• The maintenance of escrow accounts regulation (18 VAC 135-20-180) has been repealed and replaced with a new regulation (18 VAC 135-20-181). This new section will hopefully simplify the regulatory process and provide more clarity in an area that sees frequent violations. 

These regs will most likely become effective on April 1st of this year. There is a possibility that they could become effective later than that, but April 1st is the earliest date. We’ll have lots of guidance for you on what changed and how those changes will affect your business as that date draws closer. For now, if you have any questions on the regs (or anything else related to real-estate law), please reach out to us on the Virginia REALTORS^® Legal Hotline.