One notable recent change to Virginia’s real estate regulations deals with the compensation of unlicensed assistants. Previously, the regulations stated that unlicensed assistants could only be paid “at a predetermined rate that is not contingent upon the occurrence of a real estate transaction.” In practice, this meant that compensation had to be structured as an hourly wage, salary, or other fixed payment arrangement that was not tied to the successful completion of a real estate transaction.

This restriction has now been removed from the regulations. As a result, brokers and firms have the flexibility to determine how unlicensed assistants are compensated. Compensation is no longer required to be based solely on a predetermined rate independent of transaction activity. If a broker or firm prefers to compensate an unlicensed assistant on a per-transaction basis, that payment structure is now permitted under the revised regulation.

The change provides real estate firms with additional options for aligning compensation practices with operational needs and workload demands. For example, firms that experience fluctuating transaction volumes may find it beneficial to compensate assistants based on the number of transactions they help process rather than maintaining a fixed compensation structure.

While the change to the regulations expands compensation flexibility, it does not alter the limitations on the activities that unlicensed assistants may perform. Those are now contained in 18VAC135-20-335. Unlicensed assistants must continue to avoid activities that require a real estate license and must operate within the scope of duties permitted under Virginia law and regulation.

If you have questions about this article, please reach out to VAR’s Legal Team via the Virginia REALTORS^® Legal Hotline.