Chap. 461.—An ACT to define, regulate, and license real estate brokers and real
estate salesmen; to create a State real estate commission; and to provide a
penalty for a violation of the provisions hereof. [(S B 155}

‘ Approved March 21, 1924.

1. Enactment and prohibition clause.—Be it enacted by the gen-
eral assembly of Virginia, that on and after January first, nineteen hun-
dred and twenty-five, it shall be unlawful for any person, copartnership,
association or corporation, to act as a real estate broker or real estate
salesman, or to advertise or assume to act as such real estate broker or
real estate salesman, without a license issued by the (Virginia real estate
commission). No copartnership, association or corporation shall be
granted a license, unless every member or officer of such copartnership,
association or corporation, who actively participates in the brokerage
business of such copartnership, association or corporation, shall hold a
license as a real estate broker, and unless every employee who acts as a
salesman for such copartnership, association or corporation shall hold a
license as a real estate salesman.

2. Definitions and exceptions.—A real estate broker within the
meaning of this act 1s any person, firm, partnership, copartnership, as-
sociation or corporation, who for a compensation or valuable considera-
tion sells or offers for sale, buys or offers to buy, or negotiates the pur-
chase or sale or exchange of real estate, or who leases or offers to lease,
or rents or offers for rent, any real estate or the improvements thereon
for others, as a whole or partial vocation. A real estate salesman within
the meaning of this act is any person who for a compensation or valu-
able consideration 1s employed either directly or indirectly by a real
estate broker, to sell or offer to sell, or to buy or offer to buy, or to nego-
tiate the purchase or sale or exchange of real estate, or to lease, to rent
or offer for rent any real estate, or to negotiate leases thereof, or of the
improvements thereon, as a whole or partial vocation. One act for a
compensation or valuable consideration of buying or selling real estate
of or for another, or offering for another to buy or sell or exchange real
estate, or leasing, or renting, or offering to rent real estate except as
herein specifically excepted, shall constitute the person, firm, partner-
ship, copartnership, association or corporation, performing, offering or
attempting to perform any of the acts enumerated herein, a real estate
broker or a real estate salesman within the meaning of this act. The
provisions of this act shall not apply to any person, copartnership, asso-
ciation or corporation, who as owner or lessor shall perform any of the
acts aforesaid with reference to property owned or Jeased by them, or
to the regular employees thereof, with respect to the property so owned
or leased, where such acts are performed in the regular course of, or as
an incident to, the management of such property and the investment
therein, nor shall the provisions of this act apply to persons acting as
attorney-in-fact under a duly executed power of attorney from the
owner authorizing the final consummation by performance of any con-
tract for the sale, leasing, or exchange of real estate, nor shall this act be
construed to include in any way the service rendered by an attorney-at-
law in the performance of his duties as such attorney-at-law; nor shall
be held to include, while acting as such, a receiver, trustee in bank-
ruptcy, administrator or executor, or any person selling real estate under
order of any court, nor to include a trustee acting under a trust agree-
ment, deed of trust, or will, or the regular salaried employees thereof.

3. Creation of commission—details of same.—There is hereby
created the (Virginia) real estate commission. The governor shall ap-
point three persons, whose vocation for a period of at least five years
prior to the date of their appointment, shall have been that of a real es-
tate broker or a real estate salesman; one member shall be appointed for
a term of two years; one member shall be appointed for a term of four
years; one member for a term of six years; and until their successors are
appointed and qualify, thereafter the term of the members of said com-
mission shall be for six years and until their successors are appointed
and qualify. Members to fill vacancies shall be appointed for the un-
expired term. The commission immediately upon the qualification of
the member appointed in each year shall organize by selecting from its
members a chairman, and may do all things necessary and convenient
for carrying into effect the provisions of this act and may from time to
time promulgate necessary rules and regulations.

Each member of the commission shall receive as full compensation
for each day actually spent on the work of said commission the sum of
ten dollars ($10.00) per day and his actual and necessary expenses in-
curred in the performance of duties pertaining to this office.

The commission shall employ, and at its pleasure discharge, a secre-
tary and a clerk to discharge the duties imposed by the provisions of this
act, and shall outline their duties and fix their compensation, subject to
the general laws of the State. The commission shall obtain such office
space, furniture, stationery, fuel, light, and other proper conveniences
1s shall be reasonably necessary for carrying out the provisions of this
act after first deducting the actual expense of operation of the commis-
sion.

The commission shall adopt a seal with such design as the commis-
sion may prescribe engraved thereon, by which it shall authenticate its
proceedings. Copies of all records and papers in the office of the com-
mission, duly certified and authenticated by the seal of said commission
shall be received in evidence in all courts equally and with like effect as
the original. All records kept in the office of the commission under
authority of this act shall be open to public inspection under such rules
and regulations as shall be prescribed by the commission.

All fees and charges collected by the commission under the provisions
of this act shall be paid into the (general) fund in the (State treasury) ;
it being expressly provided, however, that the total expense for every
purpose incurred shall not exceed the total fees and charges collected
and paid into the commission.

4. Qualification for license.—A license'shall be granted only to per-
sons who bear a good reputation for honesty, truthfulness and fair deal-
ings and are competent to transact the business of a real estate broker
or a real estate salesman in such rhanner as to safeguard the interests of
the public.

5. Application for license.—Every applicant for a real estate
broker’s license shall apply therefor in writing upon blanks prepared or
furnished by the real estate commission. Such application shall be
accompanied by the recommendation of at least two citizens, real estate
owners, not related to the applicant, who have owned real estate for a
period of one year or more, in the county or city in which said applicant
resides, or has his place of business, which recommendation shall certify
that the applicant bears a good reputation for honesty, truthfulness,
fair dealing and competency, and recommending that a license be
granted to the applicant. Every applicant for a broker’s license shal]
state the name of the person, firm, partnership, copartnership, asso-
ciation or corporation with which he will be associated in the business of
real estate, and the location of the place, or places, for which said license
ig desired, and set forth the period of time, if any, which said applicant
has been engaged in the real estate business.

Every applicant for license shall furnish a sworn statement setting
forth his present address, both of business and residence, a complete list
of all former places and firms where he may have resided or been en-
gaged in business for a period of sixty days or more, during the last five
years, accounting for such entire period, and the length of such resi-
dence, together with the name and address of at least one real estate
owner in each of said counties or cities where he may have resided or have
been engaged in business.

Every applicant for a salesman’s license shall, in addition to the re-
quirements of this section, also set forth the period of time, if any, dur-
ing which he has been engaged in the real estate business, stating the
name and address of his last employer, and the name and the place o:
business of the person, firm, partnership, copartnership, association 01
corporation then employing him, or into whose service he is about to
enter. The application shall be accompanied by a written statement
by the broker in whose service he is about to enter, stating that in his.
opinion the applicant is honest, truthful, and of good reputation, and
recommending that the license be granted to the applicant.

Every application for a license, under the provisions of this act shall
be accompanied by the license fee herein prescribed. In the event that
the commission does not issue the license, the fee shall be returned to the
applicant.

Every application for a license shall be accompanied by a bond to be
kept in the office of the commission herein created in the sum of one
thousand ($1,000) dollars, running to the (State of Virginia), executed
by two (2) good and sufficient sureties to be approved by the commis-
sion or executed by.a surety company duly authorized to do business in
this State. Said bond to be in form approved by the commission, and
conditioned that the applicant shall conduct his business in accordance
with the requirements of this act. Provided, however, that the above
prescribed bond shall not be required of any licensed real estate agent
residing and conducting a real estate business in any rural section of the
State at the time this act takes effect.

The commission may require such other proof as shall be deemed
desirable with due regard to the paramount interests of the public as to
the honesty, truthfulness, integrity, and competency of the applicant.
The commission is expressly vested with the power and authority to
make and enforce any and all such reasonable rules and regulations con-
nected with the application for any license as shall be deemed necessary
to administer and enforce the provisions of this act.

6. Procedure when license is refused applicant.—The commission,
after an application in proper form has been filed, shall, before refusing
to issue a license, set the application down for a hearing and determina-
tion as hereinafter provided in section nine.

7. Details relating to license.—The commission shall issue to each
licensee a license in such form and size as shall be prescribed by the com-
mission. ‘This license shall show the name and address of the licensee
and in case of a real estate salesman’s license, shall show the name of the
real estate broker by whom he is employed. Each license shall have
imprinted thereon the seal of the commission and in addition to the
foregoing shall contain such matters as shall be prescribed by the com-
mission. The license of each real estate salesman shall be delivered or
mailed to the real estate broker by whom such real estate salesman 1s
employed and shall be kept in the custody and control of such broker.
It shall be the duty of each real estate broker to conspicuously display
his license in his place of business.

The commission shall prepare and deliver to each licensee a pocket
card, which card, among other things, shall contain an imprint of the
seal of the commission and shall certify that the person whose name ap-
pears thereon is a licensed real estate broker or real estate salesman, as
the case may be, and if it is a real estate salesman’s card it shall also
contain the name and address of his employer, the matter to be printed
on such pocket card, except as above set forth, shall be prescribed by
the commission.
The original fee for each real estate broker’s license shall be ten
$10.00) dollars, and the annual renewal fee shall be five ($5.00) dollars.
The original fee for each real estate salesman’s license shall be two
$2.00) dollars and the annual renewal fee shall be one ($1.00) dollar.
Provided, that when a copartnership, association or corporation shall
nave paid an original fee of ten ($10.00) dollars, or a renewal fee of five
($5.00) dollars and shall have designated one of its members or officers
as hereinafter provided in this section, the fees payable by any other
member or officer actively engaged in the real estate business of such
copartnership, association or corporation, shall be two ($2.00) dollars
for the first registration fee and one ($1.00) dollar for the renewal fee.
When a real estate broker’s license is granted to any copartnership or
association, consisting of more than one person, or to any corporation,
this shall entitle the copartnership, association or corporation to des-
ignate one of its members or officers, who, upon compliance with the
terms of this act, shall, without payment of any further fee, upon is-
suance of said broker’s license, be entitled to perform all of the acts of
a real estate salesman contemplated by this act. The person so desig-
nated, however, must make application for a salesman’s license, which
application shall accompany the application of the real estate broker,
and be filed with the commission, at the same time. If, in any case, the
person so designated by a real estate broker shall be refused a license by
the commission, or in case such person ceases to be connected with such
real estate broker, said broker shall have the right to designate another
person, who shall make application as in the first instance. Each real
estate broker’s license, which may be granted to an individual, shall
entitle such individual to perform all of the acts contemplated by this
act without any application upon his part and without payment of any
fee other than the real estate broker’s annual fee.

Every license shall expire on the (thirty-first day of December) of
each year. The commission shall issue a new license for each ensuing
year, in the absence of any reason or condition which might warrant the
refusal of the granting of a license, upon receipt of the written request of
the applicant and the annual fee therefor, as herein required. The revo-
cation of a broker’s license shall automatically suspend every real estate
-salesman’s license granted to any person by virtue of his employment by
the broker whose license has been revoked, pending a change of em.
ployer and the issuance of a new license. Such new license shall be
issued without charge, if granted during the same year in which origina!
license was granted.

Every real estate broker shall maintain a place of business in thi:
State. If the real estate broker maintains more than one place of busi:
ness within the State, a duplicate license shall be issued to such broke:
for each branch office maintained. Provided, that if such broker be :
copartnership, association or corporation, a duplicate shall be issued t
the members or officers thereof, and a single fee of one ($1.00) dollar it
each case shall be paid for each duplicate license.

Notice in writing shall be given to the commission by each license
of any change of principal business location, whereupon the commis
sion shall issue a new license for the unexpired period without charge
The change of business location without notification to the commissio!
shall automatically cancel the license theretofore issued.
When any real estate salesman shall be discharged or shall terminate
his employment with the real estate broker by whom he is employed, it
shall be the duty of such real estate broker to immediately deliver or
mail by registered mail to the commission such real estate salesman’s
license. The real estate broker shall at the time of mailing such real
estate salesman’s license to the commission, address a communication
to the last known residence address of such real estate salesman, which
communication shall advise such real estate salesman that his license
has been delivered or mailed to the commission. A copy of such com-
munication to the real estate salesman shall accompany the license when
mailed or delivered to the commission. It shall be unlawful for any
real estate salesman to perform any of the acts contemplated by this
act, either directly or indirectly, under authority of said license from and
after the date of receipt of the said license from said broker by the com-
mission. Provided, that another license shall not be issued to such real
estate salesman until he shall return his former pocket card to the com-
mission or shall satisfactorily account to it for the same. Provided,
further, that not more than one license shall be issued to any real estate
salesman for the same period of time.

8. Suspension or revocation of license for causes enumerated.—
The commission may upon its own motion and shall upon the verified
complaint in writing of any person, provided such complaint, or such
complaint together with evidence, documentary or otherwise, pre-
sented in connection therewith, shall make out a prima facie case, in-
vestigate the actions of any real estate broker or real estate salesman, or
any person who shall assume to act in either capacity within this State
and shall have the power to suspend or to revoke any license issued
under the provisions of this act, at any time where the licensee has by
false or fraudulent representation obtained a license, or where the lh-
censee in performing or attempting to perform any of the acts men-
tioned herein, is deemed to be guilty of:

(a) Making any substantial misrepresentation, or

(b) Making any false promises of a character likely to influence,
persuade or induce, or |

(c) Pursuing a continued and flagrant course of misrepresentation,
or making of false promises through agents or salesmen or advertising
or otherwise, or

(d) Acting for more than one party in the transaction without the
knowledge of all parties for whom he acts, or

(e) Accepting a commission or valuable consideration as a real
estate salesman for the performance of any of the acts specified in this
act, from any person, except his employer, who must be a licensed real
estate broker, or

(f) Representing or attempting to represent a real estate broker
other than the employer, without the express knowledge and consent of
the employer, or

(g) Failing, within a reasonable time, to account for or to remit any
moneys coming into his possession which belongs to others, or

(h) Being unworthy or incompetent to act as a real estate broker
or salesman in such a manner as to safeguard the interest of the public,
or
(i) Paying a commission or valuable consideration to any person
for acts or services performed in violation of this act, or .

(j) Any other conduct, whether of the same or a different charac-
ter from that hereinbefore specified, which constitutes improper, fraudu-
lent, or dishonest dealing.

e Any unlawful act or violation of any of the provisions of this act by
any real estate salesman, employee, or partner or associate of a licensed
real estate broker, shall not be cause for the revocation of a license of
any real estate broker, partial or otherwise, unless it shall appear to
the satisfaction of the commission that said employer, partner or
associate had guilty knowledge thereof. |

9. Provision for hearing before application is refused or license
suspended or revoked.—The commission shall, before denying an
application for license, or before suspending or revoking any license,
‘get the matter down for a hearing, and at least ten days prior to the
date set for the hearing, it shall notify in writing the applicant, or
licensee, of any charges made, and shall afford said applicant, or licensee,
an opportunity to be heard in person or by counsel in reference thereto.
Such written notice may be served by delivery of same personally to the
applicant, or licensee, or by mailing same by registered mail to. the
last known business address of. such applicant, or licensee, if said
gpplicant .or licensee be a salesman, the commission shall also notify
the broker employing him, or in whose employ he is about to enter,
‘by mailing notice by registered mail to the broker’s last known busi-
mess address. The hearing on such charges shall be at such time and
place as the commission shall prescribe. _The commission shall have
the power to subpoena and bring before it any .person in. this State,
or take testimony of any such person by deposition with the same fees
and mileage in the same manner as prescribed by law in judicial pro-
cedure in courts of this State in civil cases. Any party to any hearing
‘before the commission shall have the right to the attendance of witnesses
in his behalf at such hearing, upon making request therefor to the
commission and designating the person or persons sought to be sub-
poenaed. If the commission shall determine that any applicant is
not qualified to receive a license, a license shall not be granted to said
applicant, and if the commission shall determine that any licensee is
guilty of a violation of any of the provisions of this act, his or its license
shall be suspended or revoked. The findings of fact made by the
commission, acting within its powers shall in the absence of fraud be
conclusive, but the supreme court shall have the power to review ques-
tions of law involved in any final decision or determination of the com-
Mission; provided, that application is made by the aggrieved party
within thirty days after such determination, by certiorari, mandamus,
or by any other method permissible under the rules and practices of
said court, or the laws of this State, and said court may make such
further orders in respect thereto as justice may require.

10. Non-resident brokers and salesmen.—A non-resident of this
State may become a real estate broker or a real estate salesman by
conforming to all of the conditions of this paragraph and this act.

In its discretion the commission may recognize in lieu of the recom-
Mendations and statements required to accompany an application
for license, the license issued to a non-resident broker, or salesman in
such other State, upon payment of the license fee and the filing by the
applicant with the commission of a certified copy of applicant’s license
issued by such other State.

(1) Provided that such applicant, if a broker, shall maintain an
active place of business in the State by which he is originally licenséd ;
an

(2) Provided, further, that every non-resident applicant shall file
an irrevocable consent that suits and actions may be commenced
against such applicant in the proper court of any county or city of
this State in which a cause of action may arise in which the plaintiff
may reside, by the service of any process or pleading authorized by the
laws of this State on the secretary of the commission, said consent
stipulating and agreeing that such service of such process or pleadings
on said secretary shall be taken and held in all courts to be as valid and
binding as if due service had been made upon said applicant in the
State of Virginia. Said instrument containing such consent shall
be authenticated by the seal thereof, if a corporation, or by the acknowl
edged signature of a member or officer thereof, if otherwise. All such
applications, except from individuals, shall be accompanied by the
duly certified copy of the resolution of the proper officers or managing
board, authorizing the proper officer to execute the same. In case
any process or pleadings mentioned in the case are served upon the
secretary of the commission, it shall be by duplicate copies, one of
which shall be filed in the office of the commission and the other im-
mediately forwarded by registered mail to the main office of the appli-
cant against which said process or pleadings are directed.

(3) Provided, further, however, that every non-resident of this
State shall file a bond in form and content the same as is required of
applicants under section five (5) in this act.

11. Publication of list of licensees.—The commission shall at least
semi-annually publish a list of the names and addresses of all licensees
licensed by it under the provision of this act, and of all persons whose
license has been suspended or revoked within one (1) year; together
with such other information relative to the enforcement of the provi-
sions of this act as it may deem of interest to the public. One of such
lists shall be mailed to the county clerk or clerk of the corporation
court in each county or city of the State and shall be held by said
county clerk or clerk of the corporation court as a public record. Such
lists shall also be mailed by the commission to any person in this State
upon request. ae _

12. Penalties—Any person or corporation violating a provision
of this act shall upon conviction thereof, if a person, be punished by a
fine of not more than five hundred ($500) dollars, or by imprisonment
for a term not to exceed (six months) or by both such fine and im-
prisonment, in the discretion of the court, and if a corporation, be
punished by a fine of not more than one thousand ($1,000) dollars.
Any officer or agent of a corporation, or member or agent of a copart-
nership or association, who shall personally participate in or be acces-
sory to any violation of this act by such corpartnership, association
or corporation, shall be subject to the penalties herein prescribed for
individuals.

All fines and penalties shall inure to the general fund. |

This law shall not be construed to release any person from civil
liability or criminal prosecution under the general laws of this State.

The commission may prefer a complaint for violation of section
one (1) of this act before any court of competent jurisdiction, and it
may take the necessary legal steps through the proper legal officers of
this State to enforce the provisions hereof and collect the penalties
herein provided.

13. Saving clause.—If any section, subsection, sentence, clause,
phrase, or requirement of this act, is for any reason held to be uncon-
stitutional, such decision shall not affect the validity of the remaining
portions thereof. The legislature hereby declares that it would have
passed this act, and each section, subsection, sentence, clause, phrase
and requirement thereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or requirements be
declared unconstitutional.

14. Repealing clause.—All laws or parts of laws in conflict with
this act, be and the same are hereby repealed.

15. Interpretation of act.—Nothing in this act contained shall
affect the power of cities to tax, license and regulate real estate brokers.
The requirement hereof shall be in addition to the requirements of any
existing or future ordinance of any State, city or county so taxing,
hcensing or regulating real estate brokers.

16. Date effective-—This act shall become effective on the first
day of January, nineteen hundred and twenty-five.