Published October 25, 2026
Nothing in the Code sections we read requires a buyer who purchases a house to own it to hold a real estate license. A person who, for compensation, deals in real estate contracts, including assignable contracts, on two or more occasions in any 12-month period falls within the Code’s definition of a real estate broker, and brokers need a license. The text is in Code of Virginia 54.1-2100, and the licensing rule is in 54.1-2106.1.
This article explains what those sections say, what the owner exemption in 54.1-2103 covers, and the questions to put to a buyer before you sign. It is general information, not legal advice, and it does not say that any buyer is doing anything wrong. Many sellers get a cash offer in the mail or by text. Whether the home is in the city of Richmond, Henrico County or Chesterfield County, the state rules are the same. If a contract is on the table, ask a Virginia real estate attorney to read it first.
Three kinds of buyer, three different questions
| Who is buying | What the Code text says | What to ask |
|---|---|---|
| A buyer who will take title and close | 54.1-2103 exempts owners performing listed acts on property they own, when done in the regular course of managing and investing in it. | Will you take title yourself? Who is the buyer on the contract? |
| A buyer who plans to assign the contract to someone else | 54.1-2100 defines a real estate broker to include someone who, for compensation or valuable consideration, deals in real estate contracts, including assignable contracts, on two or more occasions in any 12-month period. 54.1-2106.1 says no individual may act as a broker without a broker’s license. | Does the contract allow assignment? Who is the end buyer, and when will you tell me? |
| A buyer who is a licensed agent | 54.1-2138.2 requires written disclosure of licensee status and ownership interest when the licensee is a party. | Where is the written disclosure? |
We are not saying any of these buyers does anything wrong. The point is that the contract and the Code answer different questions from the offer letter. A price in a text message tells you nothing about who will own the house.
Check the offer against the value of your home
The first number to know is what your home would likely sell for on the open market, so you can compare it to any offer. A fast cash offer may be right for you, for reasons like timing, condition or a move you cannot delay. It may also leave money on the table. You cannot tell which without a comparison.
Get your instant home value
Get your instant home value, built from recent sales near you. It is a quick way to see how an investor offer compares before you sign anything.
Read the contract for these five things
- Who is the buyer, by legal name. Is it a person, an LLC, or “and/or assigns”? A contract that lets the buyer assign it is the situation the Code’s broker definition speaks to.
- The assignment clause. If the contract allows the buyer to assign it, ask whether you will be told who the new buyer is and whether you must consent.
- The earnest money and who holds it. If the money is going to a licensed broker, Virginia rules on escrow accounts and timing apply.
- Closing costs and taxes. See what a seller pays at a Virginia closing in our guides to grantor tax and recordation fees and seller concessions. Ask who pays for what, in writing.
- Your possession date. If you need time after closing to move, a rent-back after closing is one option to raise before you sign.
Why the wording “two or more occasions in any 12-month period” matters
The definition does not say that every person who signs a purchase contract is a broker. It names three things together: the person must act for compensation or valuable consideration, must deal in real estate contracts, including assignable contracts, and must do so on two or more occasions in any 12-month period. All three pieces have to fit before the definition applies. That is also why a single question to a buyer (“Will you take title and close on this house yourself?”) is more useful than a general suspicion. If the answer is yes and the contract says so, you have a clearer picture. If the answer is vague, ask for it in writing and show it to your attorney.
Two cautions. First, we are reading the text of the Code, not deciding how a court or the Real Estate Board would apply it to a particular buyer. Second, an attorney is an exception worth knowing about: 54.1-2103 says the chapter does not apply to services rendered by an attorney-at-law in the performance of his duties as such. That is another reason to have one read the contract.
Questions to put to any cash buyer
- Is the buyer named on the contract the person or company that will own the house after closing?
- May the contract be assigned, and if so, will I be told and asked to consent?
- Where will the earnest money be held, and by whom?
- Who pays the closing costs and taxes, and is that written in the contract?
- What happens to the deal if the buyer cannot close on the date promised?
How to check a buyer’s license, and what can be done if one is missing
Use the DPOR License Lookup to see whether a name or license number shows as licensed, and keep a dated screenshot. DPOR says its lookup is meant to verify license status and check disciplinary history. If a person who needed a license was acting without one, Code of Virginia 54.1-2105.2 lets the Real Estate Board order the person to cease and desist, with a 21-day appeal window, and impose a civil penalty up to $1,000 per transaction or the compensation received, whichever is greater. DPOR’s complaint page explains how to report a licensee and notes that DPOR cannot require a refund or other personal remedy, so for your own contract, you will need your attorney.
If you decide to list instead
Listing with an agent lets you compare an investor’s offer against what the open market produces. Before you sign a listing agreement, read what a Richmond listing agreement commits you to. Our seller page explains how we work with sellers, and if you are buying your next home at the same time, a saved property search and our preferred lenders can help with timing.
Get your instant home value
Get your instant home value, built from recent sales near you. Run it before you answer a cash offer.
Frequently asked questions
Does the Code of Virginia use the word wholesaling?
Not in the sections we read. The relevant text is the definition of a real estate broker in 54.1-2100, which reaches a person who, for compensation or valuable consideration, deals in real estate contracts, including assignable contracts, on two or more occasions in any 12-month period. Whether a particular buyer’s business fits that wording is a question for a Virginia real estate attorney.
Does an investor who buys a house to keep or resell it need a license?
The Code exempts owners and lessors who perform the listed acts with reference to property owned or leased by them, when the acts are in the regular course of or incident to managing the property and investing in it (54.1-2103). Whether a given buyer fits that exemption depends on the facts. Ask the buyer to explain in writing whether the buyer will take title, and ask your attorney what to do with the answer.
What if the buyer is a licensed real estate agent?
Under 54.1-2138.2, a licensee who knows or should have known that the licensee, a family member, the firm, a member of the firm or an entity the licensee owns an interest in is acquiring or selling the property, and the licensee is a party to the transaction, must disclose in writing that the person is a licensee and has or will have an ownership interest. The disclosure is due when substantive discussions about the specific property begin.
What can Virginia do about unlicensed brokerage activity?
The Real Estate Board may issue an order requiring a person to cease and desist from acting as a broker or salesperson without a license. The order takes effect on entry and becomes final unless the person appeals within 21 days. The Board may also impose a civil penalty of up to $1,000 for any real estate transaction or the compensation received, whichever is greater (54.1-2105.2).
Can a license lookup tell me whether a buyer is licensed?
It can tell you whether a name or license number appears as licensed and what the disciplinary history shows. DPOR describes the tool as a way to verify license status and check disciplinary history. See our guide to checking a Virginia license on DPOR. A buyer who is not a licensee may be legitimate, so the lookup is one check, not a verdict.
Where does the buyer’s earnest money go?
It depends on the contract. When a licensed broker receives an earnest money deposit, Virginia law requires it to go into the firm’s escrow account or to the escrow agent named in the contract by the end of the fifth business banking day. If the deal ends early, the statute sets out how the broker must hold or release it.
