This case examines a scenario in which a real estate salesperson decides to run a brokerage business on their own. Real estate salespersons must ensure that their broker knows of any real estate activities for which their broker may be held accountable. In short, real estate salespersons cannot run a firm without a broker’s license.

The Situation:

On September 1, 2019, Johny Leo Fletcher was issued a real estate salesperson license.

On February 3, 2026, the Department of Professional and Occupational Regulation received a complaint against Fletcher.

The Investigation:

On January 1, 2025, Fletcher’s salesperson license was with Miracle Homes LLC, a Real Estate Firm. Fletcher asked her then broker if he could, in addition to sales, engage in property management, a request which was declined. Fletcher then asked for a transfer to Real Homes LLC, a Real Estate Firm.

During the transfer, Fletcher asked his attorney to incorporate a business, Managed Homes Right, LLC (MHR). Meanwhile, Fletcher opened four escrow accounts with the bank. Fletcher signed property management agreements with three different clients to manage their properties.

The agreements made it clear that MHR was the firm, and Fletcher was going to act as the agent for the property. At no point was Fletcher’s brokerage Miracle Homes mentioned or implicated.

After signing on these new clients and beginning to manage their properties, the transfer to Real Homes, LLC was completed. Real Homes informed Fletcher they do not engage in property management at all, and they prohibit their salespersons from doing so completely while under their firm.

The investigation found that at no point neither Miracle Homes nor Real Homes knew of the existence of Managed Homes Right. Fletcher never disclosed the property management agreements nor the escrow accounts.

Once discovered, Fletcher was reported to DPOR. The investigation uncovered the property management contracts, escrow accounts, and the lack of knowledge by both brokerages. The investigation also uncovered that Fletcher believed that he did not have to disclose anything because he was never directly asked by either of the principal brokers.

Fletcher was found to have violated Section 18 VAC 135-20-260.11.i of the Administrative Code due to operating an unlicensed real estate firm. The Board voted to have Fletcher’s license revoked.