By RVAR Counsel David Bullington

The Virginia Real Estate Board adopted revised Regulations effective April 1, 2008.  The revisions to the Regulations implement recent changes to the licensing statutes governing real estate agents and brokers (Chapter 21 of Title 54.1).  Some changes affect all licensees and others affect brokers and the oversight required of their agents and associate brokers.

Significant changes were made to the section (18VAC135-20-160) concerning the supervision of licensees and services by the supervising broker. The revised regulation contains new language specifying that the supervising broker may designate another broker to assist in administering the provisions of the section, but that the supervising broker “does not relinquish overall responsibility for the supervision” of the acts of the licensees.  This provision therefore limits the persons to whom responsibilities may be delegated and clarifies that the supervising broker remains responsible even where duties are delegated.

This provision also modifies and adds factors to be considered in determining whether the supervising broker’s supervision of licensees and services is “reasonable and adequate.”  The following new factors were added to the section:

• “The availability of the supervising broker in a timely manner to supervise the management of brokerage services;” 
• “The supervising broker “ensures the brokerage services are carried out competently and in accordance with the provisions of [the Regulation and licensing statutes];” and
• “The supervising broker undertakes reasonable steps to ensure compliance by all licensees assigned to the branch office.”

The factor addressing the availability of the supervising broker to “review and discuss” brokerage agreements, sales contracts, advertising and other important documents was modified.  The factor is now the availability of the supervising broker to “review and approve” such documents, suggesting a higher standard.

The section now requires supervising brokers to maintain required records for a period of three years, and also requires supervising brokers located more than 50 miles from a branch office to “certify in writing on a quarterly basis on a form provided by the Board that the supervising broker complied with the requirements in this subsection.”  The intent of these changes appears to be to increase responsibility and oversight of licensees by the supervising broker.

Some important changes were also made to the section (18 VAC 135-20—190) governing online advertising by licensees.  New provisions now require that online listings advertised “must be kept current and consistent.”  The new provisions require the online information to be consistent with the property description and the actual MLS status.  The licensee is also required to “update in a timely manner material changes to the listing status” when the licensee controls the online site.  Where the licensee does not control the online site and uses a third party service, the licensee must make “timely” written requests for updates reflecting such material changes.  The provision further requires that all listing information “indicate in a readily visible manner the date that the listing information shown was last updated.”  Compliance with these provisions may potentially be problematic in online advertising done with newspapers and other third party services.

Changes affecting all licensees were also made to continuing education requirements (18 VAC135-20-101).  These changes include new subject requirements for brokers in “supervision and management of real estate agents and the management of real estate brokerage firms.”  Minimum requirements for certain subject areas, such as fair housing and ethics, are established for all licensees.  The Regulations and a summary of all changes are available on the Real Estate Board website (www.dpor.virginia.gov/deporweb/reb_main.cfm ).