1
Q
State: Types of Identity
Cities and Town
A
Power: can tax, lic, regulate, in addition to stae taxes, lic and regs.
2
Q
State: Who is a Broker?
Who is a Broker?
A
Creates a real estate company that can be labled as a limited-liability, partership, corp or sole proprietorship entity. Manages, educates and monitors sales people.
3
Q
Licensee
What are LIcensee application rules?
A
- Personal information
- 2 year work history
- Notarized sig of sponsoring brokjer
- criminal records
- RE offense
- Fingerprint card.
4
Q
Licensee
How long will it take for the Division to issue a license?
A
It could take up to 60 days, greater than 60 days if incomplete.
5
Q
What are reasons that License will be denied?
A
- Not paying child support
6
Q
What are Real Estate License Exemptions?
A
- Owners of property selling or leasing their property themselves.
- Employees of owners of property selling or leasing the property directly for the owner and not working as an independent contractor for the owner.
- Employees that only collect rent on behalf of a real estate broker.
- On-premises property managers managing only one property
- Property managers who work for a common-interest community, a condominium project, a time share or planned-unit development if they are in good standing of, and if applicable, hold recognition from a nationally recognized organization or association approved by the real estate division by regulation. (may need a different license)
- Property managers who work for the government.
- The government.
7
Q
What do you do if your RE licese is denied by the Real Estate division?
A
The Candidate can appeal to the Real Estate comission but not reapply without the divisions permission.
8
Q
When should all copies of contracts to all parites be delivered?
A
- Promptly
2.
9
Q
When should all offers from the Seller be delivered?
A
- Promptly
10
Q
What are gounds for revoking a broker’s license?
A
- Being convicted of fraud in District Court
- Advertising in a newspaper that you are a member of the local assocation of realtors when you are not
- Despositing escrow money into person checking account.
- Failing to keep adequate records
- Helping another cheat on the examination
- display a for sale sign on a property without owner’s consent.
11
Q
Licensing
What happens if you are convicted of a felony?
A
- The conviction may cause further investigation by the division with a possible complaint filed with the commission.
- In Nevada, the commission may suspend or revoke a license only through the hearing process.
12
Q
Grounds to Revoke Broker’s License
A
- being convicted for fraud
- false advertising, and
- commingling of fund s.
13
Q
What can be considered unlawful pratice of the law?
A
- Discussing the condition of the seller’s title could be construed as the unlawful practice of law.
14
Q
Setting up A Company for Sales Person License?
A
- A salesperson may set up a one-shareholder corporation or a one-member LLC to associate with a broker .
- Can’t be more than one.
15
Q
An out of state Cooperative Broker may not:
A
- The California broker may not sell Nevada land to Nevada residents, and the cooperative certificate may be issued to a cor porati on.
16
Q
How many out of state brokers can a Nevada cooperate with?
A
- The Nevada broker may cooperate with several out-of-state brokers .
- The California broker may not sell Nevada land to Nevada residents, and the cooperative certificate may be issued to a cor porati on.
17
Q
When do Cooperative Certificates need to be renewed?
A
- Cooperative certificates must be renewed annually.
- The Nevada broker may cooperate with several out-of-state brokers . The California broker may not sell Nevada land to Nevada residents, and the cooperative certificate may be issued to a cor porati on.
18
Q
Continue Education
How much do you need to reactivate lic opf more than 2 years?
A
- A license on inactive status for more than two years requires an additional 24 hours of continuing education on top of the required 24 hour s: a total of 48 hours.
19
Q
Continue Education
How much do you need to renew license?
A
- Twenty-four hours of continuing education is required for the second and subsequent renewals of a license
20
Q
Prperty mangement Permint requirements
A
- A salesperson or broker/salesperson may hold a property management permit.
- A broker’s license is not required
- 24 hours of pre-permit schooling
- 3 hours of CD property mgt renew
21
Q
How many core classes are required to reinstate?
A
24
22
Q
Manger of a Common Interest Community Association must hold
A
- CICA managers may hold either a property manager permit in conjunction with a real estate license or
- a special exemption certificate from the Nevada Real Estate Division .
23
Q
What disqualifys an applicat from receiving a license?
A
- Being arrested is not enough grounds for disqualification.
- The person must have been convicted.
- Being delinquent in child support payments,
- a previous license suspension, and
- being guilty of practicing real estate without a license could–all result in disqualification of receiving a lice nse .
24
Q
Active Experience Requirement for Broker
A
- The experience required to becoming a broker or branch manager is two out of the last four years. This experience can be in any state or any level of real estate license, but it must be recent, not too outdated (i.e. , not two years, 20 years ago).
25
Can an Out of state disciplinary problem cause discipinary action against you in Nevada?
* Out-of-state disciplinary problems may cause disciplinary action against the licensee in Nevada as well.
* The Nevada Real Estate Division may disci pline the licensee, but such a course of action is not automatic.
* Licensees are required to notify the Nevada Real Estate Division of a real estate license suspension or revocation.
26
What is required in applying for a brokerage lic?
* **A two-year work history is required,**
* **not 3.**
* **The applicant must provide a business location,**
* **any fictitious names that are going to be used,**
* **and a statement of his or her previous real estate experience .**
* **Additionally, the applicant must disclose any past felony convictions or real estate license suspension or revocation.**
27
Sales person can affiliate with
* a broker or
* owner-developer .
28
Who is an owner Developer?
* "Owner developer" is a specific definition of the seller of housing units only. The owner-developer may register for and hire licensees to sell condominiums, townhouses, and/or sin gle-family residences.
29
When does a owner-developer not register?
* An owner-developer does not register to develop five or more retail spaces for lease.
* "Owner developer" is a specific definition of the seller of housing units only. The owner-developer may register for and hire licensees to sell condominiums, townhouses, and/or sin gle-family residences.
30
An owner developer can employ
* A broker desiring to work for an owner-developer must downgrade that license to that of a broker-salesperson.
* The owner-developer can hire a sales person, bro ker-sales person, and an unlicensed host ess.
31
Large lot exemption rule
* is that every lot in the subdivision must exceed 80 acres in area after subtracting the size of any easements on the lot .
32
A developer is exempt from registration if:
* Any subdivision with 34 or fewer lots is exempt from regist rat i on.
33
How do you collect comissions through the Court?
* In order to collect a commission through court action in Nevada,
* must prove first that he was licensed when the activity was performed that would result in a lawful commission being earned .
34
What business transactions require a Real Estate License?
* Includes negotiates the sale of an entire business, that includes their sock eqiuptment and building, for a pomised fee.
* Engaging in the practice of selling businesses falls within the defi nit ion of a real estate broker, thus requiring licensin g. Owners, resident managers, and those persons holding a power of attorney are exempt from licensing requirement s.
35
Does collecting rent from multiple clients e Require License?
* Yes
*
36
Does Reselling a Mobile Home and Land, real Estate Require License?
* Yes
* **and collecting rent for multiple clients all require a real estate license.**
37
Is an employee of Owener of Real Estate Exempt from LIcsening requirement?
* An employee of the owner of real estate is exempt from licensing requirements.
*
38
When does a license expire?
* Licenses expire at the end of the month 24 calendar months from date of issuance.
39
Is an officer manager exempt from a lic?
* Those employees performing only clerical duties are exempt from licensing requirements
40
cooperative certificate applicant must
* A cooperative certificate applicant must be a licensed broker and a resident of another state to be eligib le for the certificate. The applicant does not have to fulfill the Nevada course requirements, establish a principal place of business in Nevada, nor file an irrevocable consent agreement with the Commi ssi on.
41
What happens if you practice RE without a lic?
* The district attorney prosecutes unlicensed persons who perform activities for which a license is required .
42
What happens if you fail to renew your license?
* there will be a penalty of SO percent of the license fee to reinstate the license.
43
When must a Licensing Renew their License?
* Licenses must be renewed by the last day of the licensing period, or
44
Who makes and Enforces the Rule NAC 645?
* The commission makes and enforces the rules (NAC 645) and the operation of the commission is administered by the president of the commission who is selected from the commission members.
* The examination is administered by an independent testing company.
45
What is a ministerial duties?
* Handling day-to-day routine clerical duties on behalf of the broker or handing to prospective purchaser's information prepared and directed by a licensee is considered "ministerial duties."
46
Initial renewal of a lic. Requirement
The initial renewal for all licensees requires 30 hours of instruction in approved post licensing.
47
The purpose of the real estate education, research, and recovery fund is
to provide a means of compensating a consumer for actual damages suffered as a result of a licensee's illegal actions in a real estate t ransacti on.
48
A registered owner-developer must hire
a real estate broker-salesperson as the sales manager. The owner-developer registration is good for one year.
49
The licensee may be assessed an administrative fine in an amount not to exceed $10,000 for each viol at ion.
50
Corporate Broker
The corporation must designate one individual as the designated broker and the individual must be an officer of the cor porat i on.
51
. The showing of the house, its features and quoting prices to the public are activities that require licensing.
52
What is inactive Renewal?
indicates that fees to the Nevada Real Estate Division have been paid, but the license has been held, by the Division for more than 30 days.
53
# Consent to Act Form
What does the Consent to Act form Outline?
* for the client the consequences of the licensee’s multiple representation and
* requires the client’s written authorization before the licensee may proceed with such representation.
* Is designed with the seller/landlord and buyer/tenant relationship in mind but
* may be reasonably altered to reflect various combinations of conflicts of interests, i.e., buyer versus buyer.
54
# Brokerage Agreement
What happens to a brokerage agreement if the sales person or broker sales person dies?
1. Since the brokerage agreement is with the broker, if a broker-salesperson or salesperson dies, the brokerage agreement continues in place.
1. It is then between the broker and client to determine if the brokerage agreement should continue with the services of a different broker-salesperson or salesperson or whether the brokerage agreement will be canceled.
55
# Brokerage Agreement
A Licensee's breach of Duty, under Standard of Care?
* A licensee may breach a duty by not doing something one is obligated to do (“nonfeasance”);
* by doing something one is not supposed to do (“malfeasance”); or
* by doing something in a careless or haphazard manner (“misfeasance”).
1. *For example, it is nonfeasance if the licensee does not provide a copy of the brokerage agreement to the client (NRS 645.300); malfeasance if the licensee discloses a client’s confidences (NRS 645.254(2)); and misfeasance when a licensee overlooks some material term of the purchase agreement (NRS 645.254(4)).*
56
# Brokerage Agreement
Strict Liability
1. Under certain circumstances the law may impose liability strictly for violating a statute or regulation without anyone being harmed
1. For example, failing to put a definite termination date on an exclusive brokerage agreement eliminates the broker’s right to collect a commission regardless of whether the client was harmed
57
# Brokerage Agreement
Independent Contractor
1. 2. Independent Contractor – Most non-broker licensees (salesperson and broker-salesperson) are independent contractors; nevertheless, by law they cannot enter into their own brokerage agreements with clients.
Real Estate Nevada Law
flashcards
Decks in class (10)
# Cards
