We’ve already touched on the new regs in a previous blog, and hopefully, you were able to join us for our webinar last week (if not, you can watch a replay of it here). But since this is the first real, comprehensive reg review in almost a decade, we thought it might make sense to have a follow-up blog to provide you with a little more insight into what will change come April 1st. 

One important change in the new “Activities to be performed by licensees; activities to be performed by non-licensees” section (18VAC135-20-335) is a removal of the prohibition on paying unlicensed assistants on a per-transaction basis. Now, a broker can choose to pay unlicensed assistants per transaction rather than just paying them a salary (though you can still choose to pay a salary or hourly wage if you choose). However, this doesn’t mean that unlicensed persons can now perform licensed activity; that prohibition is still present in the new section 335. 

Another big change was an addition to 18VAC135-20-280, titled Improper financial transactions and dealings. This new addition prohibits “offering real property for sale or for lease without the knowledge and consent of the owner . . . without taking reasonable steps to verify identity, or on any terms other than those authorized by the owner . . ..” (emphasis added). This is one of the steps the Board has taken to try to combat scams involving the sale of property that have become increasingly prevalent. You must take reasonable steps to ensure that the person who hired you to sell or lease their property is actually who they say they are. That means doing things like asking for in-person meetings, pushing back on suspicious data or documentation, and—perhaps most importantly—walking away from a potential listing if you are not comfortable. 

One other big change is that a licensee can now perform regulated activities (i.e., real estate-related activities) outside of the licensee’s firm ONLY in situations where a licensee has an ownership interest in the property. If an agent wants to sell their own house, the regs now allow them to do so on their own and not through their brokerage. This includes situations where the agent has an interest in a business entity (like an LLC) that owns the property. However, the principal broker of the firm may still prohibit agents from doing this in the office policy manual or independent contractor agreement. 

A final update is to the mandatory audit regulation. 18VAC135-20-225 now requires that the mandatory once-per-term audit be completed within 90 days of the license expiration date. The requirement is the same, but the timeline has been narrowed. 

For more information on the new regs, make sure you visit the Virginia REALTORS® New Regs web page.