Licensed Activities in a Personal Capacity

There is incredible licensee confusion surrounding this issue. The Code states in 54.1-2103.D. that "A licensee of the Board shall comply with the Board's regulations, notwithstanding the fact that the licensee would be otherwise exempt from licensure under subsection A."  This implies that even if a licensee is acting in his personal capacity (e.g. selling her own home, renting/managing her own rental property) she must still follow the regs and work through her firm, under supervision from her broker, and use her broker's escrow account. The regs even state in 18VAC135-20-155.B.? that Any licensee failing to comply with the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or the regulations of the?Real Estate Board? in performing any acts covered by § 54.1-2100 of the Code of Virginia may be charged with a violation, regardless of whether those acts are in the licensee's personal capacity or in the licensee's capacity as a real estate licensee.

However, the regs contradict this statement later in 18VAC135-20-260.11.g.?Prohibited acts: A licensee??performing regulated activities for any third party, except for entities in which the licensee has an ownership interest, outside the licensee’s brokerage firm or sole proprietorship. 

The distinction between what a licensee can do when they have an ownership interest and what constitutes "personal capacity" must be clarified. It is impossible for a broker to enforce this with her agents and puts additional liability on the firm. Licensees are opening their own escrow accounts for their personal rental properties and the brokers are unaware. If the intention is that all of real estate transactions on properties where the agent has an ownership interest must run through the broker this requirement needs to be clearer.