How to verify a real estate license in Virginia

The five trades at a glance

Real estate agents and brokers

No one may act as a broker or salesperson without a license from the Real Estate Board. A business that acts as a real estate firm needs a firm license too, unless it is a sole proprietorship run by a licensed broker (§ 54.1-2106.1). On DPOR’s License Lookup, search the name or license number and look at the license type, status and any disciplinary record. Check that the person you are working with is licensed and that the firm is licensed, too.

Unlicensed brokering can bring a cease-and-desist order and a civil penalty of up to $1,000 per transaction, or the compensation received if that is greater (§ 54.1-2105.2). If a licensed agent steals money or commits fraud and you win a court judgment you cannot collect, the Virginia Real Estate Transaction Recovery Fund may pay. You must file a verified claim with DPOR within 12 months of the final judgment (§ 54.1-2114).

Mortgage loan originators (NMLS)

Anyone in business as a mortgage lender or broker in Virginia must first hold a license from the SCC, and each licensee must register with the Nationwide Multistate Licensing System, which the Code calls “the Registry” (§ 6.2-1601). The SCC’s Bureau of Financial Institutions lists mortgage lenders and brokers among the institutions it licenses.

The exemptions are real, so a missing license is not always a violation. They include banks, savings institutions and credit unions, insurance companies, government agencies and some nonprofits, plus lenders making three or fewer loans in 12 months (§ 6.2-1602). Search the company and the individual loan officer on NMLS Consumer Access (nmlsconsumeraccess.org), then ask the SCC if the name is not there. I could not open that site today, so this article does not describe its screens.

Home inspectors

Virginia licenses home inspectors through the Board for Asbestos, Lead, and Home Inspectors. A “home inspection” in the Code is one conducted by a licensed home inspector, and a license requires the education, experience and exam set by the Board (§§ 54.1-500, 54.1-517.2). DPOR’s lookup lists Home Inspectors as a profession. Costs are covered in what a home inspection costs.

Appraisers (state board and national registry)

It is unlawful to appraise real estate for pay in Virginia without a license from the Real Estate Appraiser Board, and unlicensed people cannot do an appraisal in a federally related transaction (§ 54.1-2011). Only licensed or certified people may call their work an “appraisal” (§ 54.1-2009). The license types are licensed residential, certified residential and certified general. Look the person up in DPOR’s lookup or on the Appraisal Subcommittee (ASC) Appraiser Registry, which lets you pick Virginia and a credential type. See what a home appraisal costs.

Land surveyors

A person must hold a license before practicing land surveying (§ 54.1-406). A business that uses the words “land surveying” without a license can face action under § 54.1-111. DPOR lists “Land Surveyors & Photogrammetrists” as a profession. Prices vary, see land survey cost.

Closing and settlement agents

Settlement agents register with their own licensing authority (the SCC, the Virginia State Bar or the Real Estate Board) and renew at least every two years (§ 55.1-1014). See do you need a real estate attorney in Virginia.

What to do if a license is expired or suspended

1. Do not sign or pay a deposit until the status is clear.
2. Ask the professional to explain the status in writing, then re-check the lookup.
3. For a DPOR-licensed trade, file a complaint with DPOR. For a mortgage lender or broker, contact the SCC Bureau of Financial Institutions.
4. If you have already lost money, talk to a lawyer before you pay anyone else.