Key Takeaways
- Violations of Virginia license law can result in fines, suspension, or revocation
- Civil penalties may be up to $2,500 per violation
- Common violations include escrow mishandling, failure to supervise, and misrepresentation
- The Real Estate Board investigates complaints and conducts audits
- Licensees have the right to a hearing before disciplinary action is taken
Last updated: January 2026
Virginia License Law Violations and Discipline
The Virginia Real Estate Board has authority to discipline licensees for violations of the Real Estate License Law and Board regulations.
Types of Violations
Common Violations
| Category | Examples |
|---|---|
| Escrow Account | Failure to deposit timely, commingling, conversion |
| Supervision | Inadequate oversight of salespersons |
| Disclosure | Failure to disclose material facts |
| Misrepresentation | False statements about property or transaction |
| Advertising | Misleading ads, failure to identify broker |
| Unlicensed Activity | Practicing without valid license |
| Agency | Failure to provide required disclosures |
Specific Prohibited Acts
Under Virginia Code and regulations, violations include:
- Fraud or misrepresentation in obtaining a license
- Dishonest or fraudulent dealings
- False advertising or misleading statements
- Failure to account for funds or documents
- Commingling of client and personal funds
- Splitting fees with unlicensed persons
- Failure to disclose interest in property
- Violating fair housing laws
- Conviction of crime involving moral turpitude
- Practicing while impaired by drugs or alcohol
Disciplinary Process
Investigation
The REB initiates investigations based on:
- Consumer complaints
- Routine audits
- Referrals from other agencies
- Self-reporting by licensees
Resolution Options
| Severity | REB Action |
|---|---|
| Minor/Technical | Letter of warning or education |
| Moderate | Fine and/or probation |
| Serious | Suspension |
| Severe | License revocation |
Penalties and Sanctions
Civil Penalties
| Violation Type | Maximum Penalty |
|---|---|
| Per violation | $2,500 |
| Multiple violations | Cumulative penalties possible |
Other Sanctions
| Sanction | Description |
|---|---|
| Probation | License remains active with conditions |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Denial | Refusal to issue or renew license |
| Education | Required completion of courses |
| Audit | Required periodic escrow audits |
Hearing Rights
Licensees facing disciplinary action have the right to:
- Written notice of charges
- Formal hearing before the Board
- Present evidence and witnesses
- Legal representation
- Appeal adverse decisions
Transaction Recovery Fund
Virginia maintains a Transaction Recovery Fund to compensate victims of licensee misconduct:
| Feature | Detail |
|---|---|
| Maximum per transaction | Varies |
| Source of funds | Licensee fees |
| Condition | Licensee must be unable to pay judgment |
| Effect on License | Suspension until fund is reimbursed |
Grounds for Automatic Denial or Revocation
Certain offenses may result in automatic license action:
| Offense | Action |
|---|---|
| Felony conviction (certain types) | Denial or revocation |
| Fraud in obtaining license | Revocation |
| Practicing while suspended | Additional penalties |
| Failure to satisfy judgment from Recovery Fund | Automatic suspension |
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Test Your Knowledge
What is the maximum civil penalty per violation that the Virginia Real Estate Board can impose?
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Test Your Knowledge
What happens if the Transaction Recovery Fund pays a claim against a licensee?
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D