Escrow Accounts
Seven of the fifty state items are escrow — more than three times the salesperson's two — because the broker controls the account and answers for it. PSI prints no subtopics under this heading, so the material is the statutes and the regulation themselves. Note that 18VAC135-20-180 now reads "(Repealed.)"; the same April 2026 action created 18VAC135-20-181, and reading only the repeal inverts the answer.
Maintaining the Account
Subdivision A 1 of 18VAC135-20-181 requires each firm or sole proprietorship holding money to maintain one or more federally insured escrow accounts into which all funds received in connection with a real estate transaction are deposited. The account must be in the name by which the firm is licensed; the principal broker is responsible for it and must have signatory authority; the supervising broker and any other licensee with signatory authority may also be held responsible; the accounts, checks and bank statements must be labeled "escrow" and designated as escrow with the financial institution; and the balance must be sufficient at all times for every fund the firm holds. Subdivision A 2 a lists what goes in: down payments, earnest money, money received at settlement, application deposits, rental payments, rental security deposits, and money advanced for closing expenses.
Deposits: The Five-Business-Banking-Day Clock
Subdivision 1 of Section 54.1-2108.2 requires an earnest money deposit that the firm will hold to be placed in escrow by the end of the fifth business banking day following ratification, unless the principals agree otherwise in writing, and to stay there until the transaction is consummated or terminated. Subdivision 2 applies the same five-day window to delivering a deposit to an escrow agent named in the contract where the firm will not hold it. On the leasing side, subsection B of Section 54.1-2108.1 places rent and security deposits in escrow by the end of the fifth business banking day following receipt, and application deposits within five business banking days after the landlord approves the application. Count business banking days, not calendar days.
Disbursement and Disputed Deposits
Subdivision B 1 a of 18VAC135-20-181 sends earnest money to Section 54.1-2108.2, and subdivision 3 of that statute gives the four lawful routes out of a disputed deposit: a written agreement of all principals, an order of a court of competent jurisdiction, a successful interpleader under Section 16.1-77, or release to the party entitled under the clear and explicit terms of the contract. For the last route the broker may send written notice that release will be made unless a written protest arrives within 15 calendar days, with the delivery methods the statute lists. Except as the contract clearly and explicitly provides, no broker is required to decide who is entitled to the money, and a broker who complies is immune from liability to the parties. Subdivision B 1 b bars the licensee from any part of the deposit as commission until the transaction is consummated.
Commingling, Conversion and the Board's Remedies
Subsection D of 18VAC135-20-181 defines improper maintenance: accepting a note or non-negotiable instrument as a deposit without acknowledging it in the agreement; commingling any person's funds with the broker's own or the firm's, including pledging or hypothecating a certificate of deposit bought with escrow money or letting the original certificate leave the broker's control; failing to deposit escrow funds in an account designated for them alone; and failing to keep the balance sufficient. Subdivision B 4 forbids disbursing more than is on deposit to the credit of that client or property, and subdivision B 5 forbids deducting appraisal, insurance or credit-report fees from a deposit unless all principals agreed in writing. Section 54.1-2108 lets the Board petition a court of equity to enjoin the licensee, conserve the funds and appoint a receiver where it has reason to believe client interests are at risk.
State-specific details
State exam facts
- State regulator
- Virginia Real Estate Board (DPOR)
- Exam vendor
- PSI
- Prelicensing education
- Not less than 12 semester hours of real estate courses (Va. Code § 54.1-2105(B)(2)(b))
- Passing score
- 60 of 80 points national; 38 of 50 state
- Scored questions
- 125
- Time limit
- 160 minutes
Who regulates real estate brokers in Virginia?
The Virginia Real Estate Board, within the Department of Professional and Occupational Regulation (DPOR), licenses brokers and salespersons. Va. Code § 54.1-2104 gives the Board nine members — seven licensees of at least seven consecutive years and two citizen members — and § 54.1-2105 gives it the power to regulate. DPOR contracts with PSI to administer the licensing exams.
What experience do I need before the Virginia broker exam?
Under 18VAC135-20-35(C), a broker applicant must have been “actively engaged … as a real estate salesperson for a period of 36 of the 48 months immediately preceding application,” verified by the principal or supervising broker for whom the applicant worked. 18VAC135-20-10 defines “actively engaged” as active licensure performing licensed activity for an average of at least 40 hours per week. Va. Code § 54.1-2105(B)(2) adds a high school diploma or equivalent and not less than 12 semester hours of real estate instruction, which subsection D specifies must be in real estate brokerage, finance, appraisal, law and related Board-approved subjects.
How is the Virginia broker exam structured?
PSI candidate information bulletin 466 gives the broker exam a national portion of 75 items scored to 80 points in 105 minutes and a Virginia state portion of 50 items worth 50 points in 55 minutes — 125 items in 160 minutes together. Passing is published as points correct rather than a percentage: 60 of 80 on the national portion and 38 of 50 on the state portion, and you must pass both. If you are applying for a reciprocal license you need only pass the state portion.
Sources: https://www.dpor.virginia.gov/Boards/Real-Estate/Pre-License, https://test-takers.psiexams.com/api/content/bulletin/466, https://law.lis.virginia.gov/admincode/title18/agency135/chapter20/, https://law.lis.virginia.gov/vacode/title54.1/chapter21/
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