1.1 Vermont Real Estate Commission (VREC)

What the Vermont Real Estate Commission Does

The Vermont Real Estate Commission (VREC) is the state board that licenses, regulates, and disciplines real estate brokers and salespersons under Title 26, Chapter 41 of the Vermont Statutes Annotated. Its single statutory mission is public protection — not protecting licensees, not promoting the industry. When an exam question asks "why" VREC takes an action, the correct answer is almost always tied to protecting consumers and the public.

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Commission Membership

VREC members are appointed by the Governor (under 26 V.S.A. § 2251 and 3 V.S.A. §§ 129b and 2004). Members serve staggered five-year terms and may not serve more than two consecutive full terms. A simple majority is a quorum, and decisions pass by majority vote of members present.

Common trap: some study materials describe a five-member board of "three brokers and two public members." That is wrong. Under 26 V.S.A. § 2251 the statutory composition is seven members — three brokers, one salesperson, one attorney, and two public members. The public members and the non-association broker requirement are deliberately included so the board is never controlled solely by the industry it regulates.

Powers of the Commission

• Licensing — set qualifications, approve applications, issue and deny licenses.
• Education — approve pre-license schools, courses, and continuing-education (CE) providers.
• Enforcement — investigate complaints of unprofessional conduct, subpoena records, hold hearings.
• Discipline — reprimand, impose conditions, suspend, or revoke a license; levy fines up to $5,000 per violation under OPR authority.
• Rulemaking — adopt administrative rules that interpret and implement the statute.

Exam Tip: Distinguish the statute (Title 26, Chapter 41 — passed by the Legislature) from the administrative rules (adopted by VREC). A licensee can be disciplined for violating either.

The Office of Professional Regulation (OPR)

VREC does not have its own staff or office. Instead, the Office of Professional Regulation (OPR), a division of the Secretary of State's office, provides every administrative function: it receives applications and renewals online, maintains the public license-lookup database, schedules board meetings, and houses the Administrative Prosecuting Attorney who brings formal charges. This split is heavily tested:

All licensing in Vermont is online only through the OPR portal — there is no paper application path for new salesperson licenses.

Contact and Logistics

Meetings, Transparency, and Discipline Flow

VREC meetings are open to the public under Vermont's Open Meeting Law; agendas and minutes are posted. Disciplinary matters proceed in a predictable sequence the exam likes to test:

1. Complaint filed with OPR by a consumer, licensee, or the board itself.
2. Investigation by OPR investigators; the licensee may be asked to respond.
3. Charges drafted by the Administrative Prosecuting Attorney if grounds exist.
4. Hearing before VREC (or an administrative law officer), where evidence is heard.
5. Decision and sanction — dismissal, reprimand, conditions, suspension, revocation, or fine.

Worked scenario: A salesperson commingles a buyer's earnest-money deposit with personal funds. A consumer complains to OPR. OPR investigates, the prosecutor files charges of unprofessional conduct, VREC holds a hearing, and the Commission revokes the license and imposes a fine. The driving rationale on the exam is always public protection, and the agency that prosecutes is OPR, while the body that decides the sanction is VREC.

Key Point: Memorize the division of labor — OPR investigates and prosecutes; VREC adjudicates and disciplines. A 7-member board (3 brokers, 1 salesperson, 1 attorney, 2 public members) appointed by the Governor and serving 5-year terms is the most commonly missed fact in this section.

Grounds for Discipline (Unprofessional Conduct)

The state exam expects you to recognize conduct that exposes a licensee to VREC sanction. The statute and rules treat the following as unprofessional conduct:

Worked example: A broker fails to disclose that she will personally profit from a buyer's purchase of an adjacent lot she owns. Even if the price is fair, the undisclosed self-dealing is unprofessional conduct because consumers were deprived of material information. The board's analysis returns to its mission — was the public protected?

Why Public Protection Is the Test Lens

Vermont, like other states, grants real estate licenses under its police power to protect public health, safety, and welfare. That principle answers many "best answer" questions: when two options seem plausible, the one that protects consumers wins. VREC does not exist to maximize licensee income, smooth transactions, or promote tourism; it exists to ensure that those who handle the public's largest financial transactions are competent and honest. Keep that lens for every Chapter 1 question.