HB 1237 — Real estate brokers; definitions, prohibits certain locations from being used as places of business.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2024 SESSION CHAPTER E327 An Act to amend and reenact §§ 54.1-2100, 54.1-2106.1, and 54.1-2110 of the Code of Virginia, Nrelating business;to Department of Professional and Occupational Regulation;

prohibited locations.ssional and Occupational Regulation;

plaResplaces of Obusiness; [H 1237] L Approved L Be it enacted by the General Assembly of Virginia:

Eprohibited 1.locations.

That[H §§1237] 54.1-2100,Approved 54.1-2106.1,April and2, 54.1-21102024 ofBe theit Codeenacted ofby Virginiathe areGeneral amendedAssembly andof DVirginia: ree§ 54.1-2100.

1.

That §§ 54.1-2100, 54.1-2106.1, and 54.1-2110 of the Code of Virginia are amended and reenacted as follows:

§ 54.1-2100.

"Branch office" means any place of business of a principal broker in the Commonwealth that is not hishis"Distance primarylearning" placemeans ofinstruction business.delivered by an approved provider through a medium other than a classroom setting.

"DistanceSuch learning"courses meansshall instructionbe deliveredthose offered by an approvedaccredited providerinstitution throughof ahigher mediumeducation, high school offering adult distributive education courses, other thanschool aor classroomeducational setting.institution, or real estate professional association or related entities.

Such"Place coursesof shallbusiness" bemeans thosea offeredlocation bywhere anthe accreditedprincipal institutionbroker, ofor higherindividuals education,or highbusiness schoolentities offeringemployed adultby distributiveor educationaffiliated courses,as otheran schoolindependent orcontractor educationHlwith institution,the orprincipal broker, regularly transacts the business of a real estate professionalbroker association or relatedsalesperson. entities.

1 employed by or affiliated as an independent contractor with the principal broker, regularly transacts the business of a real estate broker or salesperson.

R "Real estate broker" means any individual or business entity, including a partnership, association, corporation, or limited liability company, who, for compensation or valuable consideration, (i) sells or offers for sale, buys or offers to buy, or negotiates the purchase or sale or exchange of real estate, including units or interest in condominiums, cooperative interest as defined in § 55.1-2100, or time-shares in a time-share program even though they may be deemed to be securities or (ii) leases or off"Realoffers estateto team"lease, means two or morerents individuals, one or moreoffers offor whomrent, isany a real estate salesperson or broker, who (i) work together as a unit within the sameimprovements brokeragethereon firm,for (ii)others. represent themselves to the public as working together as one unit, and (iii) designate themselves by a fictitious name.

"Real estate team" means two or more individuals, one or more of whom is a real estate salesperson or broker, who (i) work together as a unit within the same brokerage firm, (ii) represent themselves to the public as working together as one unit, and (iii) designate themselves by a fictitious name.

No business entity, other than a sole proprietorship, shall act, offer to act, or advertise to act, as a real estate firm without a fictitiousreal name.estate firm license from the Board.

NoSuch businessfirm entitymay shall be granted a firm license unless (i) every managing member in of a limitedfictitious liabilityname. company, officer of a corporation, partner within a partnership, or associate within an association who actively participates in the firm brokerage business holds a license as a real estate broker;

No business entity shall be granted a firm license unless (i) every managing member of a limited liability company, officer of a corporation, partner within a partnership, or associate within an association who actively participates in the firm brokerage business holds a license as a real estate broker;

However, nothing herein shall be construed to prohibit a broker operating a brokerage firm from having a business entity separate from the brokerage firm for such broker's own real estate business, provided that such separate business entity otherwise complies with this section.

A non-broker-owned solerovidedsole proprietorship shall obtain a license from the Board.

No business entity shall be granted a business entity salesperson's license unless every owner or officer who actively participates in the brokerage business of such entity holds a license as a salesperson or broker from the Board.

The Board shall establish standards in its regulations for the names of business entityerentity salespersons when more than one licensee is an owner or officer.

of 2 D.

No group of individuals consisting of one or more real estate brokers or real estate salespersons, or a combination thereof, shall act as a real estate team without first obtaining a business entity of 2 salesperson's license from the Board.