General Provisions - Definitions (NAC 645.005-645.052) +9Nevada · Real Estate · English

Active experience for purposes of NRS 645.343 means experience gained while engaged in real estate activities described in NRS 645.030, 645.035 and 645.040. This defines the minimum work threshold that counts toward experience requirements for advanced licensing.

• ✓Active experience requires at least 30 hours a week
• ✓Must be during at least 48 weeks of any 12-month period
• ✓Applies to activities described in subsections 1 and 2 of NRS 645.030 and NRS 645.035 and 645.040

The regulations define three key agreement types: Exclusive agency listing agreement, Exclusive right to sell or lease listing agreement, and Exclusive buyer's brokerage agreement. Each must meet NRS 645.320 requirements and grant the broker exclusive representation rights with compensation expectations.

• ✓All exclusive agreements must meet the requirements of NRS 645.320
• ✓Exclusive agency listing: seller pays no commission if property sold solely through seller's own efforts
• ✓Exclusive right to sell: broker earns compensation regardless of who produces the buyer during the term
• ✓Exclusive buyer's brokerage: broker represents purchaser/tenant with compensation expectation per agreement terms

Active status means a person holds a current license, is in good standing with the Division, and may engage in real estate business. Inactive renewed status means a licensee holds a current unsuspended/unrevoked license but has cancelled it and may not transact business until reinstated to active status.

• ✓Active status requires a current license and good standing with the Division
• ✓Inactive renewed status prohibits transacting any real estate business
• ✓When a licensee is on inactive renewed status, the Division keeps the license

Involuntarily inactivate means to transfer a license from active status to inactive renewed status at the initiative of the Division, not at the request of the licensee. Reinstatement means the return to active status.

• ✓Involuntary inactivation is initiated by the Division, not the licensee
• ✓Reinstatement means return to active status

Postlicensing education means the postlicensing curriculum of continuing education that, pursuant to NRS 645.575, a person is required to complete within the first year after his or her initial licensing.

• ✓Postlicensing education must be completed within the first year after initial licensing
• ✓It is required pursuant to NRS 645.575

Sign means to affix a signature to a record. Signature means a name, word, symbol or mark executed or adopted, or a record encrypted, by a person with present intent to identify themselves and adopt or accept a record, including electronic signatures under NRS 719.100.

• ✓Signature includes electronic signatures as defined in NRS 719.100
• ✓A signature requires present intent to identify oneself and adopt a record

A branch office is an office operated by a licensed real estate broker or corporation, separate from the principal location, for engaging in general real estate business. Principal place of business means the principal office of a licensed broker used to conduct general real estate business.

• ✓A branch office is separate from the broker's principal location
• ✓A branch office excludes a nearby sales office used only for development sales activities

A real estate broker is a person who, for another and for compensation (or expectation of compensation), sells, exchanges, options, purchases, rents, leases, or negotiates real estate; engages in advance fee listing activities; engages in property management; or engages in business brokerage. It also includes those who aid in transactions involving public lands.

• ✓Broker activity requires acting 'for another' AND 'for compensation or expectation of compensation'
• ✓Includes property management and business brokerage as broker activities
• ✓Excludes employees taking reservations for lodging rentals of 31 days or less who do no sale-related tasks

A real estate broker-salesperson holds a broker's license or passed the broker's exam but works as an employee/independent contractor associated with a broker or registered owner-developer. A real estate salesperson is associated with a licensed broker or owner-developer to perform broker acts for compensation.

• ✓A broker-salesperson has passed the broker exam but works under another broker
• ✓The term 'real estate salesperson' includes 'real estate broker-salesperson' when applicable
• ✓Salespersons must be associated with a licensed broker or registered owner-developer

A brokerage agreement is a written contract between a client and broker where the broker agrees to accept valuable consideration for assisting, soliciting, or negotiating the sale, purchase, option, rental, or lease of real property or a business. It excludes property management agreements.

• ✓Must be a WRITTEN contract between client and broker
• ✓Does not include a property management agreement
• ✓Covers real property and business transactions

Agency is the relationship between principal and agent arising from a brokerage or property management agreement whereby the agent acts on behalf of the principal with third parties. A client is a person who has entered into a brokerage agreement or property management agreement with a broker.

• ✓Agency arises from a brokerage agreement or property management agreement
• ✓A client must have entered into a brokerage or property management agreement
• ✓Agency excludes relationships arising solely from negotiations with another broker's client with written permission

An owner-developer is a person who owns five or more lots within a recorded subdivision (or approved parcel map/county-approved parceling), on each of which there is a single-family residence not previously sold.

• ✓Requires ownership of five or more lots
• ✓Each lot must have a single-family residence not previously sold
• ✓Must be within a recorded subdivision or approved parcel map

An advance fee is a fee charged for an advance fee listing, advertisement, or offer to sell/lease property to promote a sale/lease or referral, collected before issuance (other than newspaper of general circulation). An advance fee listing includes names/lists of owners or prospective buyers or brokerage agreements to promote sales for an advance fee.

• ✓Advance fees are collected before the sale/lease is completed
• ✓Excludes publications intended for general circulation
• ✓A license is required to accept an advance fee listing

Property management means the physical, administrative, or financial maintenance and management of real property for a fee pursuant to a property management agreement. A property manager is a person engaged in property management associated with a licensed broker. A property management agreement is a written contract for providing property management.

• ✓Property management must be done pursuant to a written property management agreement
• ✓A property manager must be associated with a licensed real estate broker
• ✓Property management is distinct from a brokerage agreement

Chapter 645 does not apply to owners/lessors managing their own property, employees collecting rent for a broker, on-site property managers for a single property, common-interest community managers, subsidized housing managers, banks/financial institutions, corporations acting through officers, attorneys, court-appointed fiduciaries, trustees, mining claim transactions, and the State of Nevada.

• ✓Owners/lessors managing their own property are exempt (management excludes sales activities)
• ✓Attorneys performing their legal duties are exempt
• ✓Banks, financial institutions, and court-appointed fiduciaries are exempt

A real estate license only authorizes the specific person named on the license to perform acts under the chapter, and only from the place of business specified in the license. A license cannot be shared or used by others.

• ✓No license gives authority to any person other than the licensee named
• ✓No act may be performed from any place of business other than that specified in the license

A licensee who is 65 or older and has been licensed in good standing for 30 years or longer at the time of application may apply to the Division for an exemption from standard continuing education requirements under NAC 645.448. The application must be on a form prescribed by the Division.

• ✓Must be 65 years of age or older
• ✓Must have 30 years or longer of good standing licensure as broker, broker-salesperson or salesperson
• ✓Application must be made on a Division-prescribed form

If approved, exempt licensees must still complete reduced continuing education focused on ethics, professional conduct or legal aspects: 12 hours for salespersons, 15 hours for brokers/broker-salespersons, with 3 hours in each specified area.

• ✓Salespersons must complete 12 hours; brokers/broker-salespersons 15 hours
• ✓Must include 3 hours each in agency relationships, Nevada law, contracts, and ethics
• ✓Broker management (3 hours) also required for brokers/broker-salespersons
• ✓Exemption does not exempt permit holders under NRS 645.6052 or 645.863 from permit CE

The Division may deny any application for owner-developer registration, license, or permit for reasons sufficient under NRS 645.330 or listed conditions including improper form, missing fees, incomplete forms, false statements, deficiencies, failure to show qualifications, willful violations, or dishonored check.

• ✓An application may be denied if it contains a false statement
• ✓An application may be denied if investigation fails to show good moral character and financial responsibility
• ✓Willful violation of chapters 113, 116, 119, 119A, 645, 645A, 645C or 645D of NRS is grounds for denial
• ✓Denied applications receive no refund of fees paid

If a person submits a check or draft to the Division that is returned for insufficient funds or stopped payment, any authorization already obtained is involuntarily inactivated, or the Division may refuse to issue/reinstate the authorization. A fee is charged per returned check.

• ✓A returned check results in involuntary inactivation of the authorization obtained
• ✓The Division charges a $25 fee (or amount required by NRS 353C.115/NAC 353C.400) per returned check
• ✓The Division may refuse to issue or reinstate authorization if not yet obtained

The Administrator may require proof of an applicant's moral character, considering investigation results, any history of arrest and conviction, the nature and history of the applicant's business, and any past failure to comply with applicable NRS chapters.

• ✓Administrator considers arrest and conviction history in determining moral character
• ✓Administrator considers past failures to comply with real estate related NRS chapters
• ✓An applicant denied by the Division may appeal to the Commission per NRS 645.440

The Division issues each licensee a license showing name and address, and for broker-salespersons/salespersons, the associated broker's name. It must bear the Division seal. Critically, a broker-salesperson or salesperson may only work under ONE broker or owner-developer at a time.

• ✓Each license must show name/address and (for associates) the broker's name
• ✓License must have the Division seal imprinted
• ✓No broker-salesperson or salesperson may be associated with or employed by more than one broker or owner-developer at the same time

A continuing education course must contain current real estate information improving professional knowledge and enabling better service to the public, plus information relating to Nevada laws and regulations governing real estate transactions.

• ✓Must contain current information improving professional knowledge
• ✓Must include Nevada laws and regulations relating to real estate transactions

Certain courses do not meet CE standards: cram courses, clerical/office skill courses (typing, computers, speed-reading), sales promotion meetings, orientation courses, and instructor development courses (except as provided in NAC 645.456(3)).

• ✓Cram courses designed to prepare for examination do not qualify
• ✓Clerical/office skills courses unrelated to NRS 645.030-645.040 do not qualify
• ✓Sales promotion meetings and orientation courses do not qualify
• ✓Instructor development courses excluded except per NAC 645.456(3)

The Division will not approve more than 7 full hours of credit per day of classroom instruction if no final exam is given, or 8 full hours per day if a final exam is given.

• ✓Maximum 7 hours/day without final examination
• ✓Maximum 8 hours/day with final examination

Numerous topics qualify for CE credit including ethics, legislative issues, real estate law administration, financing, market evaluation, brokerage administration, mathematics, property management, exchanges, zoning, securities, taxation, land development, agency, technology, contracts, personal development, international transactions, antitrust, consumer protection, disclosures, commercial real estate, environmental issues, and risk reduction.

• ✓Acceptable areas include ethics, financing, agency, disclosures, and risk reduction
• ✓Disclosures include information under NRS 116.4103, 116.4109 and 116B.760
• ✓Environmental issues include energy/water conservation topics

The Real Estate Commission consists of five members appointed by the Governor. It acts in an advisory capacity to the Division, adopts regulations, and conducts hearings. It must adopt regulations establishing standards for licensees' offices, business conduct, and ethics.

• ✓The Commission has five members appointed by the Governor
• ✓The Commission acts in an advisory capacity to the Real Estate Division
• ✓The Commission may delegate authority to the Administrator by regulation

The Division must regularly inspect transaction files, trust records, and business accounts of brokers and owner-developers. Division records are open to public inspection, but the Division may refuse to make public (unless ordered by a court) examinations and the criminal/financial records of licensees and applicants.

• ✓The Division regularly inspects broker/owner-developer transaction files and trust records
• ✓Examinations and criminal/financial records may be withheld from public inspection unless ordered by a court
• ✓Certified copies of Division records are admissible in court as originals

The Division must prepare and distribute forms setting forth duties owed by licensees acting for one party, more than one party, and by brokers assigning different licensees to separate parties. The Division must also prepare a booklet on required disclosures in residential property sales.

• ✓The Division prepares agency duties disclosure forms for one-party, multi-party, and split-agency scenarios
• ✓Licensees must distribute the residential disclosure booklet to prospective buyers and sellers
• ✓The Commission approves the format and content of the disclosure booklet

Members must be U.S. citizens, Nevada residents for at least 5 years, and actively engaged as a broker for 3 years or broker-salesperson for 5 years before appointment. Members serve no more than 6 consecutive years, then must wait 3 years before reappointment. Residency requirements distribute members across Clark, Washoe, and other counties.

• ✓Members cannot serve more than 6 consecutive years
• ✓Members need 3 years as a broker or 5 years as a broker-salesperson before appointment
• ✓Members must have been Nevada residents for at least 5 years

The Division may bring an action to enjoin a person violating chapter provisions. No preliminary injunction may be granted without at least 5 days' notice. The Division may investigate fraud/deceit/false advertising in transactions involving unimproved land or subdivisions outside city limits and refer to the Attorney General or district attorney.

• ✓No preliminary injunction/TRO may be granted without at least 5 days' notice
• ✓The Division may investigate fraud in unimproved land/subdivision transactions outside city limits
• ✓Restitution must be made and fraud eliminated before enjoined transactions resume

An applicant for a real estate salesperson license must be at least 18 years of age and include with the application: fingerprint card, proof of educational requirements, the required child support statement, proof of passing grade, verified statement, proof of good character, and required fees.

• ✓Applicant must be at least 18 years of age
• ✓Must submit fingerprint card as required by NRS 645.355
• ✓Must provide proof of passing grade and satisfying educational requirements per NRS 645.343
• ✓Must include proof of honesty, truthfulness and good reputation

Broker-salesperson and broker applicants must satisfy salesperson requirements except substitute the appropriate higher educational proof. Broker applicants must additionally obtain financial condition approval before applying and prove experience requirements under NRS 645.330(4).

• ✓Broker applicants must obtain approval of financial condition from the Division before applying
• ✓Broker applicants must prove experience requirements per subsection 4 of NRS 645.330
• ✓Broker-salesperson applicants must prove the educational requirements specific to that license

Applicants must submit a certificate proving completion of required instruction. For NRS 645.343 purposes, each 2 years' active experience substitutes for 16 semester units of college level courses; no substitution for periods less than 2 years. Mere classroom attendance does not constitute course completion.

• ✓Each 2 years' active experience substitutes for 16 semester units of college courses
• ✓No substitution may be made for any period less than 2 years
• ✓Mere attendance in a classroom does not constitute successful completion of a course
• ✓Experience applies to salesperson/broker work in Nevada, any other state, or DC

Examinations cover Principles, Practices, and Procedures/Ethics including federal laws like Fair Housing Act, RESPA, Truth in Lending, ADA, and Equal Credit Opportunity Act. Passing requires at least 75 percent. Results are accepted for only 12 months.

• ✓An applicant must achieve a grade of at least 75 percent to pass
• ✓The Division accepts examination results for only 12 months after issuance
• ✓The examination period must not exceed 4 hours without prior written consent
• ✓Examination fee is $100
• ✓Cheating or unfair methods result in denial of the application and license

Each application must be completed personally by the applicant. Members of the Commission or employees of the Division are expressly prohibited from helping a person prepare his or her license application.

• ✓Each application must be completed personally by the applicant
• ✓Commission members and Division employees are prohibited from helping prepare license applications

The broker is responsible for all branch offices. A branch office license may only be issued in the name the broker is licensed under. Every branch office must be supervised by a broker or broker-salesperson with 2 years active experience within the preceding 4 years.

• ✓A supervisor of a branch office may not manage more than one branch office
• ✓Branch office supervisor must have 2 years active experience within the preceding 4 years in the US
• ✓If a branch trust account is established, one signature must be the branch office supervisor's
• ✓A broker-salesperson supervising a branch has all duties and penalties of a broker

An out-of-state licensed broker wanting to cooperate with a Nevada broker must apply on a Division form with extensive documentation. A Nevada resident holding an out-of-state license is NOT eligible. Only a natural person broker may hold a cooperative certificate — not an association, partnership, or corporation.

• ✓A Nevada resident holding an out-of-state license cannot hold a cooperative certificate
• ✓Only a natural person who is a broker may be issued a cooperative certificate
• ✓The cooperative certificate is valid for the earlier of 12 months or completion/termination of the single transaction
• ✓The Nevada broker must be in charge of the transaction from beginning to end and handle all money
• ✓The out-of-state broker cannot use the certificate to represent a Nevada property owner selling — only to represent a non-Nevada buyer

A silent, cordless, electronic calculator may be used during the examination if it is not programmable, does not print on paper tape, and does not have a keyboard containing the alphabet.

• ✓Calculator must not be programmable
• ✓Calculator must not have paper tape printing capability
• ✓Calculator must not have an alphabetical keyboard

It is unlawful to act as a real estate broker, broker-salesperson, or salesperson without the appropriate license; act as a property manager without a license plus a property management permit; act as a designated property manager without complying with NRS 645.6055; act as a business broker without a license plus a business broker permit; or act as a designated business broker without complying with NRS 645.867.

• ✓Property managers need BOTH a real estate license AND a property management permit
• ✓Business brokers need BOTH a real estate license AND a business broker permit
• ✓District attorneys or the Attorney General prosecute violations

A licensee acting as agent must disclose material facts about the property, sources of compensation, principal interest, and dual agency (with written consent). The licensee must exercise reasonable skill and care with all parties and provide the appropriate Division duties form. Written dual-agency consent must include specific statements about conflict of interest and confidentiality.

• ✓Licensees must disclose material facts, compensation sources, and any principal interest as soon as practicable
• ✓Dual agency requires written consent from each party for whom the licensee is acting
• ✓Confidential information cannot be disclosed for 1 year after termination unless court-ordered or permitted

A licensee representing a client must exercise reasonable skill and care, keep confidential information for 1 year after termination, seek transactions at the client's price/terms, present all offers promptly (unless waived in writing), disclose material facts, advise obtaining expert advice, and account for all money/property.

• ✓Must present all offers as soon as practicable unless the client signs a written waiver
• ✓Must not disclose confidential client information for 1 year after termination
• ✓Must account for all money and property in which the client has an interest

A licensee shall not deal with any party in a manner that is deceitful, fraudulent, or dishonest. Discrimination based on race, religion, color, national origin, disability, sexual orientation, gender identity/expression, ancestry, familial status, or sex is unlawful in real estate transactions and services. Penalty is a $500 fine for first offense; second offense may result in license revocation.

• ✓Deceitful, fraudulent, or dishonest dealing with any party is prohibited
• ✓Discrimination penalty is $500 for first offense; second offense may cause license revocation
• ✓Protected classes include familial status, disability, sexual orientation, and gender identity/expression

Every brokerage agreement with an exclusive agency provision must have a definite, specified, complete termination date; contain no provision requiring the client to notify the broker to cancel exclusive features after termination; and be signed by both client and broker to be enforceable.

• ✓Must have a definite, specified, and complete termination date
• ✓Cannot require client notice to cancel exclusive features after termination
• ✓Must be signed by both client and broker to be enforceable

It is unlawful for a licensee to pay commission or finder's fees to unlicensed persons for services. A broker may pay a commission to a licensed broker of another state. Salespersons/broker-salespersons can only accept compensation from and pay commissions through the broker/owner-developer under whom they are licensed.

• ✓Commissions may not be paid to unlicensed persons for licensed services
• ✓Salespersons can only be paid by and pay through their own broker/owner-developer
• ✓A Nevada broker may pay a commission to a licensed broker of another state

A broker must not commingle client money with their own. Client money must be promptly deposited in a designated trust account in a Nevada bank or credit union with the broker as trustee. Records must be kept, accounts balanced monthly, and an annual reconciliation provided to the Division. Salespersons must promptly pay received money to the broker.

• ✓Brokers must not commingle client funds with their own
• ✓Trust accounts must be in a Nevada bank/credit union with the broker as trustee
• ✓Trust accounts must be balanced monthly and reconciled annually to the Division

The Commission may impose an administrative fine on anyone who knowingly engages in or assists activity requiring a license/permit/registration without holding it. The fine cannot exceed the greater of the gain/economic benefit derived or $5,000. Notice, opportunity to be heard, and judicial review are provided.

• ✓The maximum administrative fine is the greater of the gain derived or $5,000
• ✓The person must be given notice and an opportunity to be heard
• ✓Judicial review is available under chapter 233B of NRS

No duty of a licensee under NRS 645.252/645.254 or property manager under 645.6057 may be waived (except the offer-presentation duty). A person damaged by failure to perform duties may recover actual damages. The standard of care is that of a reasonably prudent licensee measured by required education.

• ✓Licensee/property manager duties generally cannot be waived (except offer presentation)
• ✓Damaged parties may recover actual damages for breach of statutory duties
• ✓Client's knowledge of material facts is not imputed to the licensee

When a broker assigns different licensees affiliated with the same brokerage to separate parties in a transaction (or property management agreement), the licensees need not obtain dual-agency written consent. However, each licensee must not disclose confidential client information except to the broker.

• ✓Assigned licensees from the same brokerage need not obtain dual-agency written consent
• ✓Each assigned licensee must keep client confidential information from the other party
• ✓Confidential information may be disclosed only to the real estate broker

An active, good-standing licensee may prepare and charge for a broker's price opinion (BPO) for sellers, buyers, third parties, or lienholders. A BPO cannot substitute for an appraisal for mortgage loan approval. It must include the intended purpose, property description, basis, assumptions, date, interest disclosure, license number/signature, and a required 14-point bold disclaimer that it is not an appraisal.

• ✓A BPO cannot be used in lieu of an appraisal to approve a mortgage loan
• ✓The BPO must include a 14-point bold disclaimer stating it is not an appraisal
• ✓Only an active, good-standing licensee may prepare and charge for a BPO

In any advertisement offering licensed services, a licensee must include their license number and disclose their brokerage name. Broker-salespersons/salespersons cannot advertise solely under their own name and must advertise under the brokerage's name and supervision. The Commission regulates nickname advertising.

• ✓Advertisements must include the licensee's license number and brokerage name
• ✓Broker-salespersons/salespersons cannot advertise solely under their own name
• ✓Advertising must be under the direct supervision and name of the brokerage

When a licensee prepares a brokerage agreement authorizing the purchase or sale of real estate for compensation, the licensee must deliver a copy to the signing client at the time of signing if possible, or within a reasonable time thereafter. Receipt may be made on the face of the agreement.

• ✓A copy of the brokerage agreement must be delivered to the client at signing when possible
• ✓If not at signing, delivery must occur within a reasonable time
• ✓Receipt can be documented on the face of the brokerage agreement

The Division may investigate and audit all financial accounts related to a broker's business if it has reasonable cause to believe insolvency, financial risk, or need for enforcement. The Commission may discipline brokers who impede audits or who are insolvent. The Administrator may charge audit costs if a broker fails to produce required documentation.

• ✓The Division may audit non-trust financial accounts if it suspects insolvency or for enforcement
• ✓Failure to cooperate with an audit is grounds for disciplinary action
• ✓Insolvency means inability to meet business liabilities as due, risking public/consumer harm