Becoming a real estate broker in Virginia represents a significant step up in professional authority and responsibility. This advanced license is governed by a strict set of regulatory requirements established by the Commonwealth to ensure a high standard of practice. Achieving broker status requires a demanding combination of prior experience, extensive education, and rigorous testing. This guide outlines the specific steps necessary for a licensed real estate professional to achieve broker status in Virginia.
Defining the Broker Role in Virginia
A real estate broker holds a position of greater independence and liability compared to a licensed real estate salesperson. Brokers are authorized to operate their own real estate firm, manage other licensees, and handle client funds directly. Salespersons, by contrast, must always work under the direct supervision of a licensed broker. This elevated status involves supervisory duties, financial oversight, and responsibility for the actions of affiliated salespersons or associate brokers.
Meeting Virginia’s Experience Prerequisites
The most substantial requirement is practical experience. To qualify, an applicant must demonstrate they have been actively engaged as a licensed real estate salesperson for a minimum of 36 of the 48 months immediately preceding the application submission date. The Virginia Real Estate Board (VREB) defines “actively engaged” as performing real estate activities for an average of at least 40 hours per week during the qualifying period. This requirement excludes individuals who maintained an active license but did not practice real estate full-time. Candidates must also meet foundational requirements, including being at least 18 years old and possessing a high school diploma or its equivalent.
Completing the Required Broker Education
Broker licensure requires candidates to complete a total of 180 hours of pre-licensing coursework. These courses must be taken through an education provider formally approved by the Virginia Real Estate Board. The 180 hours are divided into four separate 45-classroom hour courses, focusing on brokerage operations and advanced legal topics.
One mandatory course is Real Estate Brokerage, which covers the fundamentals of running a firm. The remaining three courses are selected from broker-specific subjects, such as:
- Real Estate Appraisal
- Real Estate Finance
- Real Estate Law
Candidates must pass a monitored final examination for each course, usually with a minimum score of 75%, to receive credit.
Passing the Virginia Broker Licensing Examination
After satisfying the experience and education requirements, candidates must pass the Virginia Broker Licensing Examination, administered by a third-party testing service such as PSI. This comprehensive, two-part test covers national real estate principles and Virginia-specific laws. The exam contains 125 questions: 75 in the national section and 50 in the state-specific section.
Candidates are allotted 160 minutes to complete the exam. To pass, applicants must correctly answer at least 60 questions on the national section and 38 questions on the Virginia state section. Passing score reports are valid for one year, during which the candidate must complete all remaining application steps and submit their package to the VREB.
The Final Steps of License Application
After passing the examination, applicants must complete a fingerprint-based background check, usually performed electronically at a PSI testing center or authorized vendor. The results are sent directly to the Virginia Real Estate Board (VREB) for review, ensuring applicants meet the state’s standards of character. The final application package, along with associated fees, is then submitted to the VREB for processing.
The broker license application fee is typically $210, plus a background check fee of approximately $50 to $52. The VREB must receive the entire application within 45 days of receiving the fingerprint results, or the applicant must be fingerprinted again. While Errors and Omissions (E&O) insurance is not mandated by the VREB, most brokerage firms require it for their affiliated licensees.
Understanding Broker Types and Firm Requirements
A newly licensed broker must decide on their operational designation, which generally falls into one of two categories: Principal Broker or Associate Broker.
Principal Broker
The Principal Broker is the individual designated to assume responsibility for the real estate firm. This role involves overseeing all operations and ensuring compliance with state regulations. This designation is necessary for anyone planning to open their own brokerage entity.
Associate Broker
The Associate Broker holds a broker’s license but chooses to work under the supervision of a Principal Broker, similar to a salesperson. This allows the individual to utilize their advanced knowledge without taking on the full supervisory and legal liability of running a firm.
Firm Requirements
A Principal Broker establishing a firm must meet additional requirements. These include maintaining a designated trust account for client funds and establishing a physical office location. This place of business must be separate from any residential living quarters, feature its own entrance, and be accessible to the public.
Maintaining Your Virginia Broker License
Maintaining an active Virginia broker license requires adherence to continuing education (CE) and renewal requirements. The license operates on a two-year renewal cycle, based on the end of the month in which the license was initially issued. Brokers must complete a total of 24 hours of Board-approved CE during each two-year cycle. The required 24 hours include a specific breakdown of mandatory topics designed to keep the broker current on legal and management aspects of the business.
These mandatory hours include subjects such as:
- Broker Management
- Broker Supervision
- Ethics and Standards of Conduct
- Fair Housing
- Updates on Real Estate Agency and Contracts
Failure to complete the required CE before the renewal deadline can result in the license lapsing, which necessitates a more complicated process to restore active status.