{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-888.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-888.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-888.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-888.html"}],"law_id":69740,"edition_id":1,"section_id":69740,"structure_id":14189,"section_number":"6.2-888","catch_line":"Real estate brokerage business of controlled subsidiary","history":"2003, cc. 536, 558, \u00a7 6.1-58.3; 2006, c. 422; 2010, c. 794; 2022, cc. 400, 401.","full_text":"A\n\nIn addition to the types of business authorized in §§ 6.2-885 and 6.2-887, a controlled subsidiary corporation may be formed and licensed to transact business as a real estate brokerage firm in accordance with § 54.1-2106.1, provided such controlled subsidiary corporation transacts the real estate brokerage business and such services only in accordance with the specific provisions of this section. Such controlled subsidiary corporation shall be subject to the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 that are otherwise applicable to real estate brokerage companies transacting a comparable business.B\n\nA controlled subsidiary corporation of a state bank may own and transact business as a real estate brokerage firm and provide the services of a real estate brokerage firm, only upon the Commission’s determination that the state bank making application to do so is in full compliance with applicable law. The investment of any bank in the stock, securities, or other obligations of a controlled subsidiary corporation shall be approved by the Commission only upon a determination by the Commission that (i) the depositors of the bank are adequately protected from the risk of such ownership and (ii) the ownership is a safe and sound investment for the bank in accordance with applicable law. Such determination shall include but not be limited to providing written notice to the Virginia Real Estate Board and receiving written confirmation from the Virginia Real Estate Board that the real estate brokerage firm, to be owned, and its brokers, are in good standing in accordance with the requirements of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1.C\n\nA controlled subsidiary corporation of a state bank may own and transact business as a real estate brokerage firm only in compliance with the following:1\n\nThe controlled subsidiary corporation, or a state bank that owns a controlled subsidiary corporation, that engages in real estate brokerage, shall not:\n\t\t\t\ta. Impose a requirement, orally or in writing, that a borrower shall contract for or enter into any other arrangement for real estate services with its affiliated real estate brokerage firm;\n\t\t\t\tb. Impose a requirement, orally or in writing, that as a condition of approving a loan a borrower shall contract or enter into any other arrangement with its affiliated real estate brokerage firm;\n\t\t\t\tc. Impose a requirement, orally or in writing, that a real estate brokerage customer shall make application for a loan or any other service or services of a particular bank or any of its subsidiaries, affiliates, or service entities, except as otherwise permitted under the federal Real Estate Settlement Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder;\n\t\t\t\td. Impose a requirement, orally or in writing, that a condition of providing real estate brokerage services is that the customer shall make application for a loan or any other arrangement for other services of the bank or any of its subsidiaries, affiliates, or service entities, except as otherwise permitted under the federal Real Estate Settlement Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder;\n\t\t\t\te. Offer or provide more favorable consideration, terms, or conditions for any financial products or services to induce or attempt to induce a person to enter into any arrangement for real estate brokerage services with any particular real estate brokerage firm;\n\t\t\t\tf. Offer or provide more favorable terms or conditions for any real estate brokerage services to induce or attempt to induce a person to apply for a loan or obtain any other services of a particular bank or any of its subsidiaries, affiliates, or service entities;\n\t\t\t\tg. Conduct real estate brokerage activities in the same areas of a building where the bank routinely accepts retail deposits from the general public;\n\t\t\t\th. Conduct real estate brokerage activities in areas of a building that are identified as areas where banking activities occur;\n\t\t\t\ti. Conduct banking activities in areas of the building that are identified as areas where real estate brokerage activities occur;\n\t\t\t\tj. Make payment to its employees for any referrals of real estate brokerage business;\n\t\t\t\tk. Use confidential credit and other financial information available from the bank for solicitation purposes by a real estate brokerage affiliate, without first having obtained the written consent of the customer;\n\t\t\t\tl. Use or transfer from a bank to any affiliated real estate brokerage firm any financial information of or relating to any unaffiliated competing real estate brokerage firm that is an actual or prospective customer; or\n\t\t\t\tm. Use, directly or indirectly, nonpublic customer information that is held or obtained by the bank for the purpose of soliciting real estate business, without first having obtained the written consent of the customer;2\n\nA state bank that makes a referral to its affiliated real estate brokerage firm shall clearly and conspicuously disclose in writing, in a separate document, to any person who applies for credit related to a real estate transaction or applies for prequalification or preapproval for credit related to a real estate transaction, that the person is not required to consult with, contract for, or enter into an arrangement for real estate brokerage services with its affiliated real estate brokerage firm; and3\n\nA real estate brokerage firm that is affiliated with a bank shall clearly and conspicuously disclose in writing, in a separate document, before the time an agency agreement for real estate brokerage services is executed, that the person is not required to apply, contract for, or enter into any other arrangement for services of a particular bank or any of its subsidiaries, affiliates, or service entities.D\n\nThe requirements of this section are in addition to the requirements of the federal Real Estate Settlement Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder.E\n\nState banks owning and transacting business as real estate brokerage firms under this section are subject to the provisions of Chapter 9 (§ 55.1-900 et seq.) of Title 55.1.F\n\nA state bank that acts as a mortgage broker, as defined in § 6.2-1600, and that transacts business as a real estate brokerage through a controlled subsidiary corporation, is subject to subsection C of § 6.2-1616; however, a state bank that, pursuant to an executed originating agreement with the Virginia Housing Development Authority, acts or offers to act as an originating agent of the Virginia Housing Development Authority in connection with a mortgage loan shall not be deemed to be acting as a mortgage broker with respect to such mortgage loan but shall be deemed to be acting as a mortgage lender with respect to such mortgage loan, notwithstanding that the Virginia Housing Development Authority is or would be the payee on the note evidencing such mortgage loan and that the Virginia Housing Development Authority provides or would provide the funding of such mortgage loan prior to or at the settlement thereof.G\n\nIn the event of a violation of this section, the Commission may take such action as is authorized in accordance with § 6.2-946, including issuance of an order requiring the state bank to cease and desist the activity that violates this section and imposing penalties.","order_by":null,"text":{"0":{"id":252079,"text":"In addition to the types of business authorized in §§ 6.2-885 and 6.2-887, a controlled subsidiary corporation may be formed and licensed to transact business as a real estate brokerage firm in accordance with § 54.1-2106.1, provided such controlled subsidiary corporation transacts the real estate brokerage business and such services only in accordance with the specific provisions of this section. Such controlled subsidiary corporation shall be subject to the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 that are otherwise applicable to real estate brokerage companies transacting a comparable business.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":252080,"text":"A controlled subsidiary corporation of a state bank may own and transact business as a real estate brokerage firm and provide the services of a real estate brokerage firm, only upon the Commission’s determination that the state bank making application to do so is in full compliance with applicable law. The investment of any bank in the stock, securities, or other obligations of a controlled subsidiary corporation shall be approved by the Commission only upon a determination by the Commission that (i) the depositors of the bank are adequately protected from the risk of such ownership and (ii) the ownership is a safe and sound investment for the bank in accordance with applicable law. Such determination shall include but not be limited to providing written notice to the Virginia Real Estate Board and receiving written confirmation from the Virginia Real Estate Board that the real estate brokerage firm, to be owned, and its brokers, are in good standing in accordance with the requirements of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":252081,"text":"A controlled subsidiary corporation of a state bank may own and transact business as a real estate brokerage firm only in compliance with the following:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":252082,"text":"The controlled subsidiary corporation, or a state bank that owns a controlled subsidiary corporation, that engages in real estate brokerage, shall not:\n\t\t\t\ta. Impose a requirement, orally or in writing, that a borrower shall contract for or enter into any other arrangement for real estate services with its affiliated real estate brokerage firm;\n\t\t\t\tb. Impose a requirement, orally or in writing, that as a condition of approving a loan a borrower shall contract or enter into any other arrangement with its affiliated real estate brokerage firm;\n\t\t\t\tc. Impose a requirement, orally or in writing, that a real estate brokerage customer shall make application for a loan or any other service or services of a particular bank or any of its subsidiaries, affiliates, or service entities, except as otherwise permitted under the federal Real Estate Settlement Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder;\n\t\t\t\td. Impose a requirement, orally or in writing, that a condition of providing real estate brokerage services is that the customer shall make application for a loan or any other arrangement for other services of the bank or any of its subsidiaries, affiliates, or service entities, except as otherwise permitted under the federal Real Estate Settlement Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder;\n\t\t\t\te. Offer or provide more favorable consideration, terms, or conditions for any financial products or services to induce or attempt to induce a person to enter into any arrangement for real estate brokerage services with any particular real estate brokerage firm;\n\t\t\t\tf. Offer or provide more favorable terms or conditions for any real estate brokerage services to induce or attempt to induce a person to apply for a loan or obtain any other services of a particular bank or any of its subsidiaries, affiliates, or service entities;\n\t\t\t\tg. Conduct real estate brokerage activities in the same areas of a building where the bank routinely accepts retail deposits from the general public;\n\t\t\t\th. Conduct real estate brokerage activities in areas of a building that are identified as areas where banking activities occur;\n\t\t\t\ti. Conduct banking activities in areas of the building that are identified as areas where real estate brokerage activities occur;\n\t\t\t\tj. Make payment to its employees for any referrals of real estate brokerage business;\n\t\t\t\tk. Use confidential credit and other financial information available from the bank for solicitation purposes by a real estate brokerage affiliate, without first having obtained the written consent of the customer;\n\t\t\t\tl. Use or transfer from a bank to any affiliated real estate brokerage firm any financial information of or relating to any unaffiliated competing real estate brokerage firm that is an actual or prospective customer; or\n\t\t\t\tm. Use, directly or indirectly, nonpublic customer information that is held or obtained by the bank for the purpose of soliciting real estate business, without first having obtained the written consent of the customer;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":252083,"text":"A state bank that makes a referral to its affiliated real estate brokerage firm shall clearly and conspicuously disclose in writing, in a separate document, to any person who applies for credit related to a real estate transaction or applies for prequalification or preapproval for credit related to a real estate transaction, that the person is not required to consult with, contract for, or enter into an arrangement for real estate brokerage services with its affiliated real estate brokerage firm; and","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":252084,"text":"A real estate brokerage firm that is affiliated with a bank shall clearly and conspicuously disclose in writing, in a separate document, before the time an agency agreement for real estate brokerage services is executed, that the person is not required to apply, contract for, or enter into any other arrangement for services of a particular bank or any of its subsidiaries, affiliates, or service entities.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"6":{"id":252085,"text":"The requirements of this section are in addition to the requirements of the federal Real Estate Settlement Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"E"},"7":{"id":252086,"text":"State banks owning and transacting business as real estate brokerage firms under this section are subject to the provisions of Chapter 9 (§ 55.1-900 et seq.) of Title 55.1.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"8":{"id":252087,"text":"A state bank that acts as a mortgage broker, as defined in § 6.2-1600, and that transacts business as a real estate brokerage through a controlled subsidiary corporation, is subject to subsection C of § 6.2-1616; however, a state bank that, pursuant to an executed originating agreement with the Virginia Housing Development Authority, acts or offers to act as an originating agent of the Virginia Housing Development Authority in connection with a mortgage loan shall not be deemed to be acting as a mortgage broker with respect to such mortgage loan but shall be deemed to be acting as a mortgage lender with respect to such mortgage loan, notwithstanding that the Virginia Housing Development Authority is or would be the payee on the note evidencing such mortgage loan and that the Virginia Housing Development Authority provides or would provide the funding of such mortgage loan prior to or at the settlement thereof.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"9":{"id":252088,"text":"In the event of a violation of this section, the Commission may take such action as is authorized in accordance with § 6.2-946, including issuance of an order requiring the state bank to cease and desist the activity that violates this section and imposing penalties.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":14189,"edition_id":1,"name":"Investments and Loans","identifier":"9","label":"article","depth":4,"order_by":1,"parent_id":13791,"metadata":{},"date_created":"2026-06-26 03:47:11","date_modified":"2026-06-26 03:47:11","permalink":{"id":265643,"object_type":"structure","relational_id":14189,"identifier":"9","token":"6.2\/II\/8\/9","url":"\/6.2\/II\/8\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13791,"edition_id":1,"name":"Banks","identifier":"8","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:53","date_modified":"2026-06-26 03:45:53","permalink":{"id":265065,"object_type":"structure","relational_id":13791,"identifier":"8","token":"6.2\/II\/8","url":"\/6.2\/II\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":63411,"structure_id":14189,"section_number":"6.2-870","catch_line":"Limitation of amount invested in bank premises","url":"\/6.2-870\/","token":"6.2\/II\/8\/9\/6.2-870","metadata":false},{"id":64130,"structure_id":14189,"section_number":"6.2-871","catch_line":"Investment in stock or securities of bank service corporations","url":"\/6.2-871\/","token":"6.2\/II\/8\/9\/6.2-871","metadata":false},{"id":61248,"structure_id":14189,"section_number":"6.2-872","catch_line":"For what purpose banks may purchase, hold, and convey real estate","url":"\/6.2-872\/","token":"6.2\/II\/8\/9\/6.2-872","metadata":false},{"id":74353,"structure_id":14189,"section_number":"6.2-873","catch_line":"Additional permissible investments in real estate","url":"\/6.2-873\/","token":"6.2\/II\/8\/9\/6.2-873","metadata":false},{"id":82541,"structure_id":14189,"section_number":"6.2-874","catch_line":"Prohibited uses of bank's own stock; other investments or loans","url":"\/6.2-874\/","token":"6.2\/II\/8\/9\/6.2-874","metadata":false},{"id":57173,"structure_id":14189,"section_number":"6.2-875","catch_line":"Limitations on obligations of borrowers","url":"\/6.2-875\/","token":"6.2\/II\/8\/9\/6.2-875","metadata":false},{"id":55367,"structure_id":14189,"section_number":"6.2-876","catch_line":"Loans to executive officers or directors","url":"\/6.2-876\/","token":"6.2\/II\/8\/9\/6.2-876","metadata":false},{"id":85468,"structure_id":14189,"section_number":"6.2-877","catch_line":"Overdrafts by bank officer or director","url":"\/6.2-877\/","token":"6.2\/II\/8\/9\/6.2-877","metadata":false},{"id":76996,"structure_id":14189,"section_number":"6.2-878","catch_line":"Loans secured by real estate generally","url":"\/6.2-878\/","token":"6.2\/II\/8\/9\/6.2-878","metadata":false},{"id":80117,"structure_id":14189,"section_number":"6.2-879","catch_line":"Certain loans not considered loans secured by real estate","url":"\/6.2-879\/","token":"6.2\/II\/8\/9\/6.2-879","metadata":false},{"id":59260,"structure_id":14189,"section_number":"6.2-880","catch_line":"Construction loans","url":"\/6.2-880\/","token":"6.2\/II\/8\/9\/6.2-880","metadata":false},{"id":78478,"structure_id":14189,"section_number":"6.2-881","catch_line":"Investment in reverse annuity mortgages","url":"\/6.2-881\/","token":"6.2\/II\/8\/9\/6.2-881","metadata":false},{"id":60973,"structure_id":14189,"section_number":"6.2-882","catch_line":"Bank borrowing money or rediscounting its notes","url":"\/6.2-882\/","token":"6.2\/II\/8\/9\/6.2-882","metadata":false},{"id":87132,"structure_id":14189,"section_number":"6.2-883","catch_line":"Acceptance of drafts or bills of exchange; issuance of letters of credit","url":"\/6.2-883\/","token":"6.2\/II\/8\/9\/6.2-883","metadata":false},{"id":76682,"structure_id":14189,"section_number":"6.2-884","catch_line":"Ownership and lease of personal property","url":"\/6.2-884\/","token":"6.2\/II\/8\/9\/6.2-884","metadata":false},{"id":64536,"structure_id":14189,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","url":"\/6.2-885\/","token":"6.2\/II\/8\/9\/6.2-885","metadata":false},{"id":74671,"structure_id":14189,"section_number":"6.2-886","catch_line":"Regulation of controlled subsidiary corporations by Commission","url":"\/6.2-886\/","token":"6.2\/II\/8\/9\/6.2-886","metadata":false},{"id":73096,"structure_id":14189,"section_number":"6.2-887","catch_line":"Insurance business of controlled subsidiary","url":"\/6.2-887\/","token":"6.2\/II\/8\/9\/6.2-887","metadata":false},{"id":69740,"structure_id":14189,"section_number":"6.2-888","catch_line":"Real estate brokerage business of controlled subsidiary","url":"\/6.2-888\/","token":"6.2\/II\/8\/9\/6.2-888","metadata":false}],"previous_section":{"id":73096,"structure_id":14189,"section_number":"6.2-887","catch_line":"Insurance business of controlled subsidiary","url":"\/6.2-887\/","token":"6.2\/II\/8\/9\/6.2-887","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-888\/","history_text":"

This law was first created in 2003. The record of its establishment is cataloged in chapters 536<\/a> and 558<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2006, chapter 422<\/a>; in 2010, chapter 794<\/a>; in 2022, chapters 400<\/a> and 401<\/a>.<\/p>","references":[{"id":78611,"section_number":"6.2-814","catch_line":"Powers of banks","order_by":null,"url":"\/6.2-814\/"},{"id":64536,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","order_by":null,"url":"\/6.2-885\/"}],"refers_to":[{"id":74059,"section_number":"54.1-2100","catch_line":"Definitions","order_by":null,"url":"\/54.1-2100\/"},{"id":65670,"section_number":"54.1-2106.1","catch_line":"Licenses required","order_by":null,"url":"\/54.1-2106.1\/"},{"id":79247,"section_number":"55.1-900","catch_line":"Definitions","order_by":null,"url":"\/55.1-900\/"},{"id":71155,"section_number":"6.2-1600","catch_line":"Definitions","order_by":null,"url":"\/6.2-1600\/"},{"id":80723,"section_number":"6.2-1616","catch_line":"Other prohibitions applicable to mortgage brokers","order_by":null,"url":"\/6.2-1616\/"},{"id":64536,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","order_by":null,"url":"\/6.2-885\/"},{"id":73096,"section_number":"6.2-887","catch_line":"Insurance business of controlled subsidiary","order_by":null,"url":"\/6.2-887\/"},{"id":71872,"section_number":"6.2-946","catch_line":"Civil penalties for violation of Commission's orders","order_by":null,"url":"\/6.2-946\/"}],"permalink":{"id":265717,"object_type":"law","relational_id":69740,"identifier":"6.2-888","token":"6.2\/II\/8\/9\/6.2-888","url":"\/6.2-888\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-888\/","token":"6.2\/II\/8\/9\/6.2-888","dublin_core":{"Title":"Real estate brokerage business of controlled subsidiary","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-888","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In addition to the types of business authorized in §§ 6.2-885<\/a> and 6.2-887<\/a>, a controlled subsidiary corporation may be formed and licensed to transact business as a real estate brokerage firm in accordance with § 54.1-2106.1<\/a>, provided such controlled subsidiary corporation transacts the real estate brokerage business and such services only in accordance with the specific provisions of this section. Such controlled subsidiary corporation shall be subject to the provisions of Chapter 21 (§ 54.1-2100<\/a> et seq.) of Title 54.1 that are otherwise applicable to real estate brokerage companies transacting a comparable business. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A controlled subsidiary corporation of a state bank<\/span> may own and transact business as a real estate brokerage firm and provide the services of a real estate brokerage firm, only upon the Commission<\/span>’s determination that the state bank<\/span> making application to do so is in full compliance with applicable law<\/span>. The investment of any bank in the stock, securities, or other obligations of a controlled subsidiary corporation shall be approved by the Commission<\/span> only upon a determination by the Commission<\/span> that (i) the depositors of the bank are adequately protected from the risk of such ownership and (ii) the ownership is a safe and sound investment for the bank in accordance with applicable law<\/span>. Such determination shall include but not be limited to providing written notice to the Virginia Real Estate Board and receiving written confirmation from the Virginia Real Estate Board that the real estate brokerage firm, to be owned, and its brokers, are in good standing in accordance with the requirements of Chapter 21 (§ 54.1-2100<\/a> et seq.) of Title 54.1. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A controlled subsidiary corporation of a state bank<\/span> may own and transact business as a real estate brokerage firm only in compliance with the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The controlled subsidiary corporation, or a state bank<\/span> that owns a controlled subsidiary corporation, that engages in real estate brokerage, shall not:\n\t\t\t\ta. Impose a requirement, orally or in writing, that a borrower shall contract<\/span> for or enter into any other arrangement for real estate services with its affiliated real estate brokerage firm;\n\t\t\t\tb. Impose a requirement, orally or in writing, that as a condition of approving a loan a borrower shall contract<\/span> or enter into any other arrangement with its affiliated real estate brokerage firm;\n\t\t\t\tc. Impose a requirement, orally or in writing, that a real estate brokerage customer shall make application for a loan or any other service or services of a particular bank or any of its subsidiaries, affiliates, or service entities, except as otherwise permitted under the federal Real Estate Settlement<\/span> Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder;\n\t\t\t\td. Impose a requirement, orally or in writing, that a condition of providing real estate brokerage services is that the customer shall make application for a loan or any other arrangement for other services of the bank or any of its subsidiaries, affiliates, or service entities, except as otherwise permitted under the federal Real Estate Settlement<\/span> Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder;\n\t\t\t\te. Offer or provide more favorable consideration, terms, or conditions for any financial products or services to induce or attempt to induce a person<\/span> to enter into any arrangement for real estate brokerage services with any particular real estate brokerage firm;\n\t\t\t\tf. Offer or provide more favorable terms or conditions for any real estate brokerage services to induce or attempt to induce a person<\/span> to apply for a loan or obtain any other services of a particular bank or any of its subsidiaries, affiliates, or service entities;\n\t\t\t\tg. Conduct real estate brokerage activities in the same areas of a building where the bank routinely accepts retail deposits from the general public;\n\t\t\t\th. Conduct real estate brokerage activities in areas of a building that are identified as areas where banking activities occur;\n\t\t\t\ti. Conduct banking activities in areas of the building that are identified as areas where real estate brokerage activities occur;\n\t\t\t\tj. Make payment to its employees for any referrals of real estate brokerage business;\n\t\t\t\tk. Use confidential credit and other financial information available from the bank for solicitation purposes by a real estate brokerage affiliate, without first having obtained the written consent of the customer;\n\t\t\t\tl. Use or transfer from a bank to any affiliated real estate brokerage firm any financial information of or relating to any unaffiliated competing real estate brokerage firm that is an actual or prospective customer; or\n\t\t\t\tm. Use, directly or indirectly, nonpublic customer information that is held or obtained by the bank for the purpose of soliciting real estate business, without first having obtained the written consent of the customer; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A state bank<\/span> that makes a referral to its affiliated real estate brokerage firm shall clearly and conspicuously disclose in writing, in a separate document, to any person<\/span> who applies for credit related to a real estate transaction or applies for prequalification or preapproval for credit related to a real estate transaction, that the person<\/span> is not required to consult with, contract<\/span> for, or enter into an arrangement for real estate brokerage services with its affiliated real estate brokerage firm; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A real estate brokerage firm that is affiliated with a bank shall clearly and conspicuously disclose in writing, in a separate document, before the time an agency agreement for real estate brokerage services is executed, that the person<\/span> is not required to apply, contract<\/span> for, or enter into any other arrangement for services of a particular bank or any of its subsidiaries, affiliates, or service entities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The requirements of this section are in addition to the requirements of the federal Real Estate Settlement<\/span> Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> State banks<\/span> owning and transacting business as real estate brokerage firms under this section are subject to the provisions of Chapter 9 (§ 55.1-900<\/a> et seq.) of Title 55.1. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A state bank<\/span> that acts as a mortgage broker, as defined in § 6.2-1600<\/a>, and that transacts business as a real estate brokerage through a controlled subsidiary corporation, is subject to subsection C of § 6.2-1616<\/a>; however, a state bank<\/span> that, pursuant to an executed originating agreement with the Virginia Housing Development Authority, acts or offers to act as an originating agent of the Virginia Housing Development Authority in connection with a mortgage loan shall not be deemed to be acting as a mortgage broker with respect to such mortgage loan but shall be deemed to be acting as a mortgage lender with respect to such mortgage loan, notwithstanding that the Virginia Housing Development Authority is or would be the payee on the note evidencing such mortgage loan and that the Virginia Housing Development Authority provides or would provide the funding of such mortgage loan prior to or at the settlement<\/span> thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> In the event of a violation of this section, the Commission<\/span> may take such action as is authorized in accordance with § 6.2-946<\/a>, including issuance of an order<\/span> requiring the state bank<\/span> to cease and desist the activity that violates this section and imposing penalties. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREAL ESTATE BROKERAGE BUSINESS OF CONTROLLED SUBSIDIARY (\u00a7 6.2-888)\n\nA. In addition to the types of business authorized in §§ 6.2-885 and\n6.2-887, a controlled subsidiary corporation may be formed and licensed to\ntransact business as a real estate brokerage firm in accordance with §\n54.1-2106.1, provided such controlled subsidiary corporation transacts the real\nestate brokerage business and such services only in accordance with the specific\nprovisions of this section. Such controlled subsidiary corporation shall be\nsubject to the provisions of Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1\nthat are otherwise applicable to real estate brokerage companies transacting a\ncomparable business.\n\nB. A controlled subsidiary corporation of a state bank may own and transact\nbusiness as a real estate brokerage firm and provide the services of a real\nestate brokerage firm, only upon the Commission’s determination that the\nstate bank making application to do so is in full compliance with applicable\nlaw. The investment of any bank in the stock, securities, or other obligations\nof a controlled subsidiary corporation shall be approved by the Commission only\nupon a determination by the Commission that (i) the depositors of the bank are\nadequately protected from the risk of such ownership and (ii) the ownership is a\nsafe and sound investment for the bank in accordance with applicable law. Such\ndetermination shall include but not be limited to providing written notice to\nthe Virginia Real Estate Board and receiving written confirmation from the\nVirginia Real Estate Board that the real estate brokerage firm, to be owned, and\nits brokers, are in good standing in accordance with the requirements of Chapter\n21 (§ 54.1-2100 et seq.) of Title 54.1.\n\nC. A controlled subsidiary corporation of a state bank may own and transact\nbusiness as a real estate brokerage firm only in compliance with the following:\n\n 1. The controlled subsidiary corporation, or a state bank that owns a\n controlled subsidiary corporation, that engages in real estate brokerage,\n shall not:\n \t\t\t\ta. Impose a requirement, orally or in writing, that a borrower shall\n contract for or enter into any other arrangement for real estate services with\n its affiliated real estate brokerage firm;\n \t\t\t\tb. Impose a requirement, orally or in writing, that as a condition of\n approving a loan a borrower shall contract or enter into any other arrangement\n with its affiliated real estate brokerage firm;\n \t\t\t\tc. Impose a requirement, orally or in writing, that a real estate\n brokerage customer shall make application for a loan or any other service or\n services of a particular bank or any of its subsidiaries, affiliates, or\n service entities, except as otherwise permitted under the federal Real Estate\n Settlement Procedures Act of 1974 (12 U.S.C. § 2601 et seq.) and\n regulations adopted thereunder;\n \t\t\t\td. Impose a requirement, orally or in writing, that a condition of\n providing real estate brokerage services is that the customer shall make\n application for a loan or any other arrangement for other services of the bank\n or any of its subsidiaries, affiliates, or service entities, except as\n otherwise permitted under the federal Real Estate Settlement Procedures Act of\n 1974 (12 U.S.C. § 2601 et seq.) and regulations adopted thereunder;\n \t\t\t\te. Offer or provide more favorable consideration, terms, or conditions for\n any financial products or services to induce or attempt to induce a person to\n enter into any arrangement for real estate brokerage services with any\n particular real estate brokerage firm;\n \t\t\t\tf. Offer or provide more favorable terms or conditions for any real estate\n brokerage services to induce or attempt to induce a person to apply for a loan\n or obtain any other services of a particular bank or any of its subsidiaries,\n affiliates, or service entities;\n \t\t\t\tg. Conduct real estate brokerage activities in the same areas of a\n building where the bank routinely accepts retail deposits from the general\n public;\n \t\t\t\th. Conduct real estate brokerage activities in areas of a building that\n are identified as areas where banking activities occur;\n \t\t\t\ti. Conduct banking activities in areas of the building that are identified\n as areas where real estate brokerage activities occur;\n \t\t\t\tj. Make payment to its employees for any referrals of real estate\n brokerage business;\n \t\t\t\tk. Use confidential credit and other financial information available from\n the bank for solicitation purposes by a real estate brokerage affiliate,\n without first having obtained the written consent of the customer;\n \t\t\t\tl. Use or transfer from a bank to any affiliated real estate brokerage\n firm any financial information of or relating to any unaffiliated competing\n real estate brokerage firm that is an actual or prospective customer; or\n \t\t\t\tm. Use, directly or indirectly, nonpublic customer information that is\n held or obtained by the bank for the purpose of soliciting real estate\n business, without first having obtained the written consent of the customer;\n\n 2. A state bank that makes a referral to its affiliated real estate brokerage\n firm shall clearly and conspicuously disclose in writing, in a separate\n document, to any person who applies for credit related to a real estate\n transaction or applies for prequalification or preapproval for credit related\n to a real estate transaction, that the person is not required to consult with,\n contract for, or enter into an arrangement for real estate brokerage services\n with its affiliated real estate brokerage firm; and\n\n 3. A real estate brokerage firm that is affiliated with a bank shall clearly\n and conspicuously disclose in writing, in a separate document, before the time\n an agency agreement for real estate brokerage services is executed, that the\n person is not required to apply, contract for, or enter into any other\n arrangement for services of a particular bank or any of its subsidiaries,\n affiliates, or service entities.\n\nD. The requirements of this section are in addition to the requirements of the\nfederal Real Estate Settlement Procedures Act of 1974 (12 U.S.C. § 2601 et\nseq.) and regulations adopted thereunder.\n\nE. State banks owning and transacting business as real estate brokerage firms\nunder this section are subject to the provisions of Chapter 9 (§ 55.1-900\net seq.) of Title 55.1.\n\nF. A state bank that acts as a mortgage broker, as defined in § 6.2-1600,\nand that transacts business as a real estate brokerage through a controlled\nsubsidiary corporation, is subject to subsection C of § 6.2-1616; however,\na state bank that, pursuant to an executed originating agreement with the\nVirginia Housing Development Authority, acts or offers to act as an originating\nagent of the Virginia Housing Development Authority in connection with a\nmortgage loan shall not be deemed to be acting as a mortgage broker with respect\nto such mortgage loan but shall be deemed to be acting as a mortgage lender with\nrespect to such mortgage loan, notwithstanding that the Virginia Housing\nDevelopment Authority is or would be the payee on the note evidencing such\nmortgage loan and that the Virginia Housing Development Authority provides or\nwould provide the funding of such mortgage loan prior to or at the settlement\nthereof.\n\nG. In the event of a violation of this section, the Commission may take such\naction as is authorized in accordance with § 6.2-946, including issuance of\nan order requiring the state bank to cease and desist the activity that violates\nthis section and imposing penalties.\n\nHISTORY: 2003, cc. 536, 558, \u00a7 6.1-58.3; 2006, c. 422; 2010, c. 794; 2022, cc.\n400, 401.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}