Grounds include fraud, misrepresentation, improper handling of escrow, and unlicensed activity.
Before you read
Test yourself first: 5 questions
Question 1 of 5
A consumer who obtains a court judgment for a licensee's fraud in a real-estate transaction but cannot collect from the licensee may seek payment from which Virginia source?
Answer: A. Virginia maintains the Real Estate Transaction Recovery Fund to reimburse consumers with unsatisfied court judgments arising from a licensee's improper or dishonest conduct, subject to statutory limits and procedures.
Question 2 of 5
When the Virginia Real Estate Transaction Recovery Fund pays a claim on behalf of a licensee, what happens to that licensee's license?
Answer: C. A payment from the Recovery Fund automatically suspends the licensee's license. The license stays suspended until the licensee reimburses the Fund the amount paid plus interest.
Question 3 of 5
Following an investigation that supports charges, what must the Virginia Real Estate Board provide a licensee before imposing discipline such as suspension or revocation?
Answer: B. Administrative due process requires the Board to give the licensee notice of the charges and an opportunity to be heard before imposing discipline. This is an administrative hearing process, not a criminal jury trial.
Question 4 of 5
The Virginia Real Estate Board operates under which umbrella agency?
Answer: B. The Virginia Real Estate Board is one of several regulatory boards administered by the Department of Professional and Occupational Regulation (DPOR), which oversees licensing and discipline for the profession.
Question 5 of 5
A Virginia salesperson accepts a cash bonus directly from a happy buyer for a job well done, without the broker's knowledge. This is a prohibited practice because:
Answer: B. A Virginia salesperson works under and is paid through the supervising broker. Accepting compensation directly from a party rather than through the broker is a prohibited practice subject to discipline.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- The Real Estate Board may reprimand, fine, or suspend or revoke a license for violations.
- Grounds include fraud, misrepresentation, improper handling of escrow, and unlicensed activity.
- Virginia maintains a Real Estate Transaction Recovery Fund to reimburse qualifying consumer judgments.
- Recovery from the fund follows a court judgment against a licensee that goes unsatisfied.
- A claim paid from the fund results in automatic suspension of that licensee until repayment.
- Disciplinary cases proceed under the Administrative Process Act with notice and a right to a hearing.
- DPOR investigators handle complaints; the Board adjudicates and orders sanctions.
Virginia License Discipline, Penalties & Recovery Fund: FAQs
Is Virginia License Discipline, Penalties & Recovery Fund on the real estate exam?
Yes. State License Law is a scored domain on the Virginia real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Virginia test this differently?
Virginia applies its own license law on top of the national portion. This page covers the Virginia rules specifically, which is what the state section of your exam tests.
