Brokerage Audits

Question 1

Requires that all brokerage firms be audited per licensing period

Answer 1

VREB

Question 2

Licensing period length

Answer 2

Two years

Question 3

Why is an audit important

Answer 3

To ensure that brokerage firms are complying with VREB regulations

Question 4

Auditor needs to document:

The proper handling of

Escrow

Answer 4

Deposits

Question 5

Auditor needs to document:

That all financial transactions

Answer 5

Have proper records

Question 6

Auditor needs to document:

That all fair housing laws are being followed if it’s a

Answer 6

Residential Brokerage

Question 7

Auditor needs to document:

That all advertising complies with

Answer 7

Federal Laws

Question 8

Auditor needs to document:

How contracts | brokerage agreements | leases are

Answer 8

Documented

Question 9

Auditor needs to document:

The kind of work done by people at the brokerage who are

Answer 9

Unlicensed

Question 10

Auditor needs to document:

How the brokerage handles

Answer 10

Independent brokerage relationships

Question 11

Auditor needs to document:

That all disclosures are documented

Answer 11

Correctly

Question 12

If an audit uncovers noncompliance - principle brokers must do the following within 30 days:

Notification of noncompliance to the

Answer 12

VREB

Question 13

If an audit uncovers noncompliance - principle brokers must do the following within 30 days:

Submit a statement of how noncompliance is to be

Answer 13

Fixed
– OR –
Submit a plan to fix the noncompliance problem

Question 14

If a plan in is submitted to the VREB with a noncompliance mitigation plan then that plan has to be submitted within

Answer 14

90 Days

Question 15

What principal broker must do post-audit

Answer 15

Submit findings to VREB

Question 16

What principal broker must do post-audit:

A copy of the audit must be kept at their brokerage in case

Answer 16

The VREB wants to see it

Question 17

What principal broker must do post-audit:

If a board member or investigator requests it, the audit form or any records or documents must be submitted within

Answer 17

10 Days

Question 18

Principle brokers receive immunity from VREB enforcement actions

Answer 18

By submitting successful audit reports every two years

Question 19

Principle brokers will not receive immunity from VREB enforcement actions

Answer 19

If they are intentionally noncompliant.