NRS 645.610-645.625 - Investigations and Records +20Nevada · Real Estate · English

A licensee, property manager, or owner-developer must notify the Division in writing of any conviction or plea of guilty/nolo contendere to a felony relating to their practice or any crime involving fraud, deceit, misrepresentation, or moral turpitude. Notification must occur within 10 days and when renewing.

• ✓Must report convictions/pleas for a felony relating to practice or crimes involving fraud, deceit, misrepresentation or moral turpitude
• ✓Notification required not more than 10 days after conviction or entry of the plea
• ✓Must also report when submitting a renewal application

A complaint filed with the Division and investigation documents are confidential, disclosed only as necessary to administer the chapter or to a licensing/law enforcement agency. However, complaints filed with the Commission to initiate disciplinary action and considered documents are public records.

• ✓Complaints and investigation documents are confidential during the investigation stage
• ✓Complaints and documents considered by the Commission when imposing discipline are public records

The Commission may fine up to $10,000 per violation, and suspend, revoke, deny renewal, or condition a license. Grounds include material misrepresentation, false promises, commingling, converting client funds, failing to account for others' money, and accepting commissions from anyone except one's own broker.

• ✓Commission may impose an administrative fine of up to $10,000 for each violation
• ✓Grounds include material misrepresentation, false promises, commingling, and converting client funds
• ✓Associates may only accept commission from their own licensed broker or owner-developer

Grounds for discipline include failing to maintain/balance a trust account monthly, failing to submit an annual trust accounting, failing to place deposits in the broker's custody, accepting non-cash earnest money without disclosure, and (for brokers) failing to deposit earnest money before the end of the next banking day.

• ✓Must balance the trust account at least monthly and submit an annual accounting
• ✓Broker must deposit earnest money check/cash before end of the next banking day unless the purchase agreement provides otherwise
• ✓Non-cash earnest money must be communicated to the owner before acceptance and shown in the receipt

The Division uses standard complaint forms/affidavits. Upon complaint or request, the Administrator appoints staff to investigate. Licensees must disclose all pertinent facts and documents. The Administrator reviews reports and may dismiss, fine, negotiate resolution, create an advisory committee, or schedule a hearing.

• ✓Investigator submits written report to Administrator describing results
• ✓Licensee must disclose all pertinent facts and documents to investigators
• ✓Administrator may dismiss, fine, negotiate, form committee, or schedule hearing
• ✓Investigation initiated by complaint need not be limited to the complaint's matter

The Administrator may impose administrative fines per violation with specific maximum amounts: e.g., $500 for NRS 645.252, $1,000 for NRS 645.310 subsections 4-6, $100 per license for NRS 645.530, $1,000 for NAC 645.650 and 645.655, and $2,000 for NAC 645.855.

• ✓Fines are per-offense with statute-specific maximums
• ✓NRS 645.633 paragraph (i) violations carry $1,000 fine
• ✓NAC 645.855 (broker attendance) violations carry $2,000 fine
• ✓Administrator may also recommend suspension/revocation or require CE

The Division may grant up to 10 days to correct advertising, business location, office operation, or broker sign deficiencies. Failure to comply is grounds for suspension/revocation. Extensions may be granted where correction requires additional time.

• ✓Division may grant up to 10 days to correct deficiencies
• ✓Failure to correct is grounds for suspension or revocation
• ✓Notice must state deficiencies, recommended action, and correction deadline

The Commission may discipline for using unauthorized trade names, violating orders/agreements/laws (including chapters 116, 119, 119A, 645A, 645C), paying commissions to unlicensed persons, felony/fraud convictions, guaranteeing resale profits, undisclosed profits, gross negligence, and dishonest dealing. Reciprocal discipline applies to out-of-state license suspension/revocation.

• ✓Paying commission to unlicensed persons is prohibited (except brokers licensed in their state of residence)
• ✓Gross negligence or incompetence and any deceitful, fraudulent or dishonest dealing are grounds for discipline
• ✓Commission may take reciprocal action based on suspension/revocation of a license in another jurisdiction
• ✓Must include a fixed date of expiration in any brokerage agreement and leave a copy with the client

An owner-developer must obtain a registration for each recorded subdivision they intend to sell. Applications require fingerprint cards, arrest/conviction statements, business history, legal property description, sales office locations, financial condition, and bankruptcy history.

• ✓Registration required for each recorded subdivision intended for sale
• ✓Application requires fingerprint cards and criminal history statement
• ✓Application requires financial condition statement and bankruptcy history
• ✓Original registration fee is non-refundable after registration

Registration is not a licensure; registrants cannot use 'licensed' except 'licensed contractor'. A copy of the registration letter must be kept at each sales office. Changes must be reported within 10 days. Registration is annulled if the developer fails to employ licensed salespersons.

• ✓Registration is not licensure; cannot use term 'licensed'
• ✓Must report name/address/status changes within 10 days
• ✓Registration annulled if fails to employ licensed salespersons
• ✓Inactive status is not available for owner-developers

Registration is effective for 1 year with unlimited annual renewals. Licensees associated with owner-developers may only sell the registered development and cannot associate with a real estate broker simultaneously. Records must be maintained at the principal place of business.

• ✓Registration effective 1 year with unlimited annual renewals
• ✓Associated licensees may only sell the registered development
• ✓Licensee employed by owner-developer cannot also associate with a broker
• ✓Real estate brokers working for owner-developers must become broker-salespersons

To obtain a property management permit, a person must submit an application, a $40 fee, and a certificate of completing 24 classroom hours of property management instruction per NRS 645.6052. The permit is effective on application submission or fee payment, whichever is later.

• ✓Requires application, $40 fee, and 24-hour instruction certificate
• ✓Instruction covers contracts, leases, credit laws, trust accounts, disclosures, fair housing
• ✓'Successful completion' means passing a 50-question exam with 75% score ($75 fee)
• ✓Certain hours (disclosure, fair housing) must be completed at accredited Nevada institution

The 24 hours include: 4 hours on contracts/leases/credit laws, 3 hours on trust account records, 1 hour computerized bookkeeping, 2 hours Nevada law, 3 hours disclosures, 5 hours ADA/Landlord-Tenant/Fair Housing/discrimination, 1 hour broker duties, 2 hours risk management, 3 hours commercial property.

• ✓24 hours total with specified topic breakdown
• ✓5 hours cover ADA, Residential Landlord and Tenant Act, Nevada Fair Housing Law
• ✓3 hours cover disclosure of required information including NRS 645.252
• ✓Division may accept nationally recognized courses for some requirements

The Division may renew a property management permit with a renewal request accompanying the license renewal, a $40 renewal fee, and documentation of 9 hours of property management continuing education. The permit expires on the same date as the holder's license.

• ✓Renewal requires $40 fee and 9 hours of property management CE
• ✓Permit expires on the same date as the holder's license
• ✓Renewal effective on application submission or fee payment, whichever later

If a designated property manager ceases association, the entity cannot conduct property management unless another is designated within 30 days. The broker must request a bank statement within 5 days and submit trust account reconciliation within 15 days.

• ✓New property manager must be designated within 30 days of departure
• ✓Broker must request bank statement within 5 days of departure
• ✓Trust account reconciliation must be submitted within 15 days
• ✓Administrator may grant extension for severe hardship beyond entity's control

Brokers receiving money must provide annual trust account reconciliation by license expiration, or file an exemption declaration if not required. Property management records must be kept 5 years. A broker-salesperson holding a permit may sign trust checks with written broker permission.

• ✓Annual reconciliation due by broker's license expiration date
• ✓Non-applicable brokers must file exemption declaration annually
• ✓Property management trust records must be kept at least 5 years
• ✓Broker-salesperson may sign trust checks with written broker permission (no rubber stamp)

Grounds include offering property without owner consent, negotiating with a client bound by an exclusive brokerage agreement without permission, failing to deliver copies of agreements/offers, failing to deliver a detailed closing statement within 10 business days, and misrepresenting sale prices to lenders.

• ✓Must deliver a detailed closing statement to the seller within 10 business days after closing
• ✓Must not offer real estate for sale/lease without knowledge and consent of the owner
• ✓Must not negotiate directly with a client bound by an exclusive brokerage agreement without written permission from the other broker

It is a ground for discipline to refuse, because of race, color, national origin, sex, sexual orientation, gender identity or expression, or ethnic group, to show, sell, or rent real estate to qualified purchasers or renters. Submitting false or fraudulent appraisals is also prohibited.

• ✓Refusing to show, sell, or rent to qualified persons based on protected classes is prohibited
• ✓Protected classes include race, color, national origin, sex, sexual orientation, gender identity or expression, and ethnic group
• ✓Knowingly submitting false or fraudulent appraisals to financial institutions is prohibited

Licensees must reduce bona fide offers to writing when requested and submit all written bona fide offers to the seller until an offer is accepted in writing and the broker has knowledge of that acceptance.

• ✓Must submit all written bona fide offers to the seller until acceptance in writing is known
• ✓Must reduce a bona fide offer to writing when the proposed purchaser requests it

The Commission is not bound by technical evidence rules but evidence must be material and relevant. Respondents must provide documents to the Division at least 5 working days before hearing. The broker of record and current broker of an accused salesperson/broker-salesperson must attend disciplinary hearings.

• ✓Commission not bound by technical rules of evidence
• ✓Respondent must provide documents to Division at least 5 working days before hearing
• ✓Broker of record and current broker must attend disciplinary hearings ($2,000 fine)
• ✓Respondent must provide 10 copies of each document at hearing

The presiding officer administers oaths, hears preliminary motions, and manages evidence presentation. The Division presents first, followed by the respondent, with cross-examination and rebuttal. If a respondent receives notice but fails to file an answer within the prescribed time, default may be entered and decision based on the complaint's allegations.

• ✓Division may not submit evidence before hearing except complaint and answer
• ✓Respondent may cross-examine witnesses in order presented
• ✓Respondent's default may be entered for failure to answer after proper notice
• ✓Date of decision is when written decision is signed or filed, whichever is later

A licensee may petition for rehearing within 10 days of receiving a decision, stating overlooked points of law/fact. Rehearing is granted for irregularity, accident/surprise, newly discovered evidence, or legal error. Continuances require good cause and cannot be merely for delay.

• ✓Rehearing petition must be filed within 10 days of decision receipt
• ✓Petition cannot exceed 10 pages; oral argument not permitted
• ✓Rehearing grounds: irregularity, surprise, newly discovered evidence, legal error
• ✓Petition does not stop 30-day district court appeal period under NRS 645.760

The Commission may accept voluntary surrender of a license, permit, registration, or certificate in lieu of other discipline. The Commission may report disciplinary actions or application denials to national repositories, other state real estate agencies, and Nevada agencies.

• ✓Commission may accept voluntary surrender in lieu of discipline
• ✓Disciplinary actions may be reported to national repositories and other states
• ✓Any person may petition Commission to adopt/amend/repeal regulations

The Commission may discipline persons who misrepresent home protection insurance or misappropriate its premiums. The Commission/Division may refuse, suspend, or revoke licenses for failure to pay money owed. Licenses may be suspended for failure to pay child support pursuant to a court order.

• ✓Misrepresenting or misappropriating home protection insurance is grounds for discipline
• ✓Commission/Division may refuse to issue or renew a license for failure to pay money owed to it
• ✓License is suspended 30 days after a child-support court order unless compliance is shown

An associate's violation is not cause to discipline others unless they knew or should have known. A broker may face suspension/revocation and up to $5,000 civil penalty for failure to adequately supervise associates. When an entity's manager/officer license is revoked, the entity cannot conduct business unless that person is severed.

• ✓Broker may be fined up to $5,000 for failure to maintain adequate supervision of associates who commit violations
• ✓Owner-developer knowing of violations may face registration suspension and up to $5,000 civil penalty
• ✓An entity cannot conduct business if its manager/officer's license is revoked unless that person is severed

Expiration, revocation, or voluntary surrender of a license does not prohibit the Administrator, Commission, or Division from investigating or continuing disciplinary proceedings, nor prevent imposition or collection of fines or penalties.

• ✓Surrender or expiration of a license does not stop disciplinary proceedings or investigations
• ✓Fines and penalties may still be imposed and collected after license surrender or expiration

'Business broker' has meaning per NRS 645.0075. 'Engaging in business as a business broker' includes selling, negotiating, or listing businesses/assets/ownership interests reported to the IRS, but excludes real property with related business where over 50% of gross income derives from the real property use.

• ✓Applicant must hold a real estate license to obtain a business broker permit
• ✓Includes selling/negotiating businesses reported on IRS Forms 1040, 1065, 1120, 1120S
• ✓Excludes real property transactions where over 50% gross income from property use

A licensee must submit an application, $40 fee, $75 exam fee, and certificate of 24 hours of business brokerage instruction, and pass a 50-question exam with 75%. Instruction covers financial statements (8 hrs), business valuation (6 hrs), purchase/sale considerations (6 hrs), and brokerage practices (4 hrs).

• ✓Requires $40 permit fee, $75 exam fee, and 24 hours of instruction
• ✓Must pass 50-question exam with at least 75% score
• ✓Applicant must submit fingerprints for background investigation
• ✓Division may accept nationally recognized business brokerage courses

A business broker permit expires on the same date as the holder's license. Renewal requires a request with the license renewal, a $40 renewal fee, and documentation of completing required continuing education under NRS 645.863.

• ✓Permit expires on same date as holder's license
• ✓Renewal requires $40 fee and continuing education documentation
• ✓Renewal effective on application submission or fee payment, whichever later

Upon complaint by the Administrator, a hearing is scheduled before the Commission within 90 days. The licensee must receive at least 30 days' written notice of the hearing with a copy of the complaint. The answer must be filed within 30 days. Notice is complete on personal delivery or certified mail to the last known address.

• ✓Commission must hold the hearing within 90 days after filing of the complaint
• ✓Licensee must be given at least 30 days' written notice of the hearing with a copy of the complaint
• ✓Licensee must file an answer within 30 days after service of the notice

A proceeding to suspend, revoke, or deny renewal must be commenced by notice within 5 years after the act charged. For misrepresentation or failure to disclose, the period does not commence until discovery of facts leading to discovery.

• ✓Disciplinary proceedings must be commenced within 5 years after the date of the act charged
• ✓For misrepresentation/failure to disclose, the period starts upon discovery of facts leading to discovery

The Commission may administer oaths, issue subpoenas, and compel witnesses through district courts. It must render an informal decision within 15 days after the final hearing and give written notice within 60 days by certified mail. Adverse rulings take effect no less than 30 days after notice.

• ✓Commission must render an informal decision within 15 days after the final hearing
• ✓Written notice of the ruling must be given within 60 days after the final hearing
• ✓Adverse rulings become effective no less than 30 days after the date of notice

A Commission ruling favoring the licensee is final; if against the licensee, judicial review is available under chapter 233B. After revocation, no new license may be issued to the same person within 1 year, and thereafter only at the Division's sole discretion and by satisfying all original license requirements.

• ✓A ruling in favor of the licensee is final; an adverse ruling is subject to judicial review under chapter 233B
• ✓No new license may be issued to a revoked licensee within 1 year of the revocation
• ✓After 1 year, a new license is only at the Division's sole discretion and requires meeting all original requirements

Licenses expire at midnight on the last day of the license period. The initial license period for a broker/broker-salesperson/salesperson is 12 months; subsequent periods are 24 months. Other licenses have 24-month periods. The Division may offer online renewal for an additional fee.

• ✓Initial license period for original broker/broker-salesperson/salesperson license is 12 consecutive months
• ✓Subsequent license periods are 24 consecutive months
• ✓Licenses expire at midnight on the last day of the last month of the license period

If a licensee fails to renew before expiration, no license may be issued except by new original application, unless within 1 year of expiration a renewal is issued with an added $100 fee. For permits, the added late fee is $20 within 1 year.

• ✓Failure to renew requires a new original application unless renewed within 1 year of expiration
• ✓Late renewal within 1 year requires an additional $100 fee for a license
• ✓Late permit renewal within 1 year requires an additional $20 fee

Key fees include: original broker/broker-salesperson/corporate broker license $105; original salesperson license $85; branch office $120; broker renewal $180; salesperson renewal $140; change of name/address $20; transfer of association $20; cooperative certificate $150. A $15 technology fee applies to broker/salesperson license issuance/renewal.

• ✓Original broker license is $105; original salesperson license is $85
• ✓Broker renewal is $180; salesperson renewal is $140
• ✓A $15 technology fee applies to issuance or renewal of broker/broker-salesperson/salesperson licenses
• ✓Government and Nevada System of Higher Education entities are exempt from certain course fees

After obtaining a final judgment against a licensee for fraud, misrepresentation, or deceit, a person may petition for payment from the Fund up to $25,000 per judgment, with total liability not exceeding $100,000 per licensee. The petition must be filed within 1 year after termination of all proceedings. Licensees cannot recover for their own licensed transactions.

• ✓Recovery is limited to $25,000 per judgment and $100,000 total liability per licensee
• ✓Petition must be filed within 1 year after termination of all proceedings including appeals
• ✓Judgment must be based on fraud, misrepresentation, or deceit in a transaction requiring a license
• ✓A licensee may not recover from the Fund for a transaction where they acted as a licensee

The Real Estate Education, Research and Recovery Fund is a special revenue fund maintaining not less than $300,000, used to satisfy claims against licensees for fraud, misrepresentation, or deceit. Balances over $300,000 may fund education and research. Every broker/associate pays into the Fund; owner-developers need not contribute.

• ✓A balance of not less than $300,000 must be maintained in the Fund
• ✓Every licensed broker, broker-salesperson, and salesperson pays an additional fee for the Fund
• ✓Owner-developers need not contribute to the Fund

If the Administrator pays from the Fund on a claim against a licensee, that license is automatically suspended upon the court's payment order. The license cannot be reinstated until the licensee repays the Fund in full plus interest (prime rate plus 2 percent).

• ✓License is automatically suspended when the court orders payment from the Fund on the licensee's account
• ✓License cannot be reinstated until full repayment plus interest is made to the Fund
• ✓Interest is prime rate at the largest Nevada bank plus 2 percent

A licensed broker/broker-salesperson/salesperson may apply for a permit to engage in business as a business broker, requiring at least 24 hours of instruction relating to business brokerage. Permits expire with the license. Renewal requires at least 3 hours of CE relating to business brokerage. Entities must designate a qualified person similar to property management rules.

• ✓Must complete at least 24 hours of instruction relating to business brokerage for a permit
• ✓Permit expires on the same date as the holder's license expires
• ✓Renewal requires at least 3 hours of continuing education relating to business brokerage
• ✓Designated business broker must have 2 years active experience within the 4 preceding years

A 'brokerage agreement' is a written contract where an owner agrees to pay commission for services relating to disposition of commercial real estate. 'Commercial real estate' excludes improved property of four or fewer residential units, unimproved land for four or fewer units, and single-family residential units sold unit by unit.

• ✓Brokerage agreement must be a written contract for commission relating to disposition of commercial real estate
• ✓Commercial real estate excludes property with four or fewer residential units
• ✓Single-family residential units (condo, townhouse, home) sold unit by unit are excluded

A broker has a claim on the owner's net proceeds from disposition of commercial real estate for earned commission. The commission is earned when the broker has performed duties under the agreement. The claim is on personal property, does not attach to real property title, and belongs only to the named broker.

• ✓Commission is deemed earned when the broker performs duties under the brokerage agreement
• ✓The claim is upon personal property and does not attach to title of real property
• ✓The claim belongs to the named broker, not to an employee or independent contractor

To enforce a claim, the broker must give written notice within 7 days after the commission is earned to the owner and the escrow agent. Failure to provide timely notice bars enforcement. The notice must be verified by oath and acknowledged, and include specific required information.

• ✓Broker must provide written notice of the claim within 7 days after the commission is earned
• ✓Failure to provide notice within 7 days bars enforcement of the claim
• ✓Notice must include broker/owner names, license number, amount claimed, property description, and a copy of the brokerage agreement

An owner served with notice must confirm or deny the claim within 5 days (but no later than 7 days before disposition) and notify the broker in writing. If denied or unanswered, the broker may record the claim. The escrow agent must reserve the claimed amount from the owner's net proceeds. Escrow may deposit reserved proceeds with the district court to discharge liability.

• ✓Owner must confirm or deny the claim within 5 days but no later than 7 days before disposition
• ✓If denied or unanswered, the broker may record the notice in the county recorder's office
• ✓Escrow agent must reserve the claimed amount from the owner's net proceeds
• ✓A recorded claim has priority over later encumbrances but not over mechanics' liens under NRS 108.221-108.246

Obtaining a license by intentional misrepresentation, deceit, or fraud, or selling any real property interest by such means, is a category D felony with mandatory restitution. Licensees committing acts under NRS 645.630, 645.633, or 645.635 face fines up to $5,000 per offense. Other violations are gross misdemeanors (or up to $2,500 fine for entities).

• ✓Obtaining a license or selling property by intentional misrepresentation, deceit, or fraud is a category D felony
• ✓Committing acts under NRS 645.630, 645.633, or 645.635 carries a fine of up to $5,000 per offense
• ✓Other violations by natural persons are gross misdemeanors; entities face fines up to $2,500
• ✓Filing false documents or willful material misstatements with the Division is a gross misdemeanor