context otherwise requires, the words and terms defined in sections 3 to

10, inclusive, of this act have the meanings ascribed to them in those

sections.

owner and a real estate broker in which the owner agrees to pay a

commission to the real estate broker for services provided by the broker

relating to the disposition of commercial real estate as specified in the

agreement.

this state. The term does not include:

1. Improved real estate that consists of not more than four residential

units;

2. Unimproved real estate for which not more than four residential

units may be developed or constructed pursuant to any zoning

regulations or any development plan applicable to the real estate; or

3. A single-family residential unit, including a condominium,

townhouse or home within a subdivision, if the unit is sold, leased or

otherwise conveyed unit by unit, regardless of whether the unit is part of

a larger building or parcel that consists of more than four units.

upon by a real estate broker and an owner specified in a brokerage

agreement.

transfer of title or any interest of an owner in any commercial real estate

specified in a brokerage agreement.

NRS 645A.010.

5 of NRS 645A.010.

interest in any commercial real estate that is described in a brokerage

agreement, including, without limitation, any assignee in interest and

any agent of a person. The term does not include a mortgagee, trustee

under or beneficiary of a deed of trust or an owner or holder of a claim

that encumbers any real estate or any improvement on that real estate.

an owner is entitled upon the disposition of any commercial real estate

specified in a brokerage agreement. The term does not include:

1. Any money that is required to pay an encumbrance, claim or lien

that has priority over a claim recorded pursuant to the provisions of

section 14 of this act other than an encumbrance, claim or lien that the

person to whom the commercial real estate is conveyed or otherwise

transferred authorizes to remain after the disposition of the real estate;

or

2. Any costs incurred by the owner to close escrow for that

commercial real estate.

proceeds from the disposition of commercial real estate for any

commission earned by the real estate broker pursuant to a brokerage

agreement. For the purposes of this subsection, a commission shall be

deemed to be earned when the real estate broker has performed his duties

pursuant to the brokerage agreement.

2. The claim belongs to the real estate broker named in the

brokerage agreement and not to an employee or independent contractor

of the real estate broker.

3. A claim that is recorded pursuant to the provisions of section 14 of

this act:

(a) Is a claim upon personal property and does not attach to the title

of any real property.

(b) May be waived if, on or before the date the brokerage agreement is

executed, the real estate broker signs a written waiver of his right to

enforce the claim. The waiver must be printed in upper case letters and

must be limited to one transaction. A person other than the real estate

broker may not waive the rights of the real estate broker pursuant to this

section, regardless of whether that person may execute and bind the real

estate broker to a brokerage agreement.

(c) May not be enforced by a person other than the real estate broker

and the owner.

4. A claim of a third party may not be brought or otherwise

adjudicated pursuant to the provisions of sections 2 to 21, inclusive, of

this act.

5. The recording or enforcement of a claim by a real estate broker

pursuant to the provisions of sections 2 to 21, inclusive, of this act does

not relieve the owner of his obligation to close escrow for any

commercial real estate.

estate broker wishes to enforce a claim pursuant to the provisions of

sections 2 to 21, inclusive, of this act, he shall, within 7 days after a

commission is earned by the real estate broker pursuant to a brokerage

agreement, provide a written notice of the claim to:

(a) The owner of the commercial real estate specified in the brokerage

agreement; and

(b) The escrow agent closing the transaction for the commercial real

estate.

2. A real estate broker who fails to provide a notice of a claim within

the period specified in subsection 1 may not enforce the claim pursuant

to the provisions of sections 2 to 21, inclusive, of this act.

3. A real estate broker is not required to provide a written notice of a

claim to an escrow agent pursuant to this section if the identity of the

escrow agent is unknown to the real estate agent at the time the notice is

provided by the real estate broker to the owner pursuant to paragraph (a)

of subsection 1.

include:

(a) The name of the owner of the commercial real estate;

(b) The name of the person who executed the brokerage agreement, if

other than the owner;

(c) The name, business name, if any, and the license number of the

real estate broker;

(d) The amount claimed by the real estate broker;

(e) A detailed description of the commercial real estate; and

(f) A copy of the brokerage agreement pursuant to which the real

estate broker claims a commission.

2. The notice must:

(a) Be verified by the oath of the real estate broker who provides the

notice; and

(b) Include an acknowledgment by the real estate broker.

to section 12 of this act, the owner shall, within 5 days after service of the

notice but not later than 7 days before the disposition of the commercial

real estate:

(a) Confirm or deny the claim set forth in the notice; and

(b) Notify, in writing, the real estate broker who provided the notice to

the owner.

2. If the owner confirms the claim and notifies the real estate broker

of that fact pursuant to subsection 1, the owner may instruct the escrow

agent for the commercial real estate to pay to the real estate broker the

amount claimed by the real estate broker in the notice of the claim.

3. If the owner fails to notify the real estate broker within the period

specified in subsection 1 or notifies the real estate broker that he denies

the claim, the real estate broker may record the notice of the claim in the

office of the county recorder where the commercial real estate or any

portion of the commercial real estate is located.

(a) An escrow agent receives a notice of a claim pursuant to section

12 of this act;

(b) A notice of claim is recorded pursuant to section 14 of this act; or

(c) An escrow agent has actual notice of a claim specified in

paragraph (b),

the escrow agent shall reserve from the owner’s net proceeds an amount

that is equal to the amount claimed by the real estate broker in his

recorded claim. If the amount of the owner’s net proceeds is insufficient

to satisfy the amount of the claim, the escrow agent shall reserve the

entire amount of the owner’s net proceeds. In determining whether the

amount of the owner’s net proceeds is insufficient to satisfy the amount

of the claim, the escrow agent may consider any encumbrance, claim or

lien that has priority over the claim of the real estate broker pursuant to

section 18 of this act.

2. If the escrow agent determines that the amount of the owner’s net

proceeds is insufficient to satisfy the amount of the claim, the escrow

agent:

(a) Shall, within 3 days after making that determination but not later

than the close of escrow, notify the real estate broker of that fact in

writing; and

(b) Shall not release to the owner any portion of the owner’s net

proceeds unless the escrow agent receives a copy of the written

agreement executed by the owner and the real estate broker authorizing

the escrow agent to release those proceeds to the owner.

3. Except as otherwise provided in paragraph (b) of subsection 2 and

section 17 of this act, if an owner’s net proceeds or any portion of an

owner’s net proceeds are reserved pursuant to this section, the escrow

agent who reserves those proceeds shall not release the proceeds to any

person until the rights of the owner and the real estate broker are

determined pursuant to section 17 of this act.

4. A reservation of an owner’s net proceeds or any portion of an

owner’s net proceeds pursuant to this section does not relieve the owner

of his obligation to close escrow for the commercial real estate.

(a) A notice of a claim is recorded pursuant to section 14 of this act;

(b) An escrow agent has reserved an owner’s net proceeds or any

portion of an owner’s net proceeds pursuant to section 15 of this act; and

(c) Escrow for the disposition of the commercial real estate
has closed,

the escrow agent may, in accordance with the provisions of NRS

645A.177, deposit with the district court of the county where the claim is

recorded the amount of the owner’s net proceeds reserved by him

pursuant to section 15 of this act.

2. If an escrow agent deposits an owner’s net proceeds with a district

court pursuant to subsection 1, the escrow agent is discharged from any

further liability concerning those proceeds.

the owner against whom the claim is recorded may:

(a) File a civil action concerning the claim in the district court of the

county where the commercial real estate or a portion of the commercial

real estate is located; and

(b) At the time the summons is issued or at any time before the

complaint is answered by the real estate broker, apply to the district court

for an order directing the real estate broker to appear before the court to

show cause why the claim should not be dismissed.

2. If the court issues an order directing the real estate broker to

appear before the court, the order must:

(a) State that, if the real estate broker fails to appear at the time and

place specified in the order, the claim will be dismissed with prejudice

pursuant to subsection 3;

(b) Specify a time and date on which the court will conduct a hearing

on the matter; and

(c) Establish a period within which the owner must serve a notice of

the order on the real estate broker and the escrow agent.

3. If the real estate broker fails to appear at the time and place

specified in the order issued pursuant to subsection 2, the court shall

issue an order:

(a) Dismissing the claim with prejudice;

(b) Canceling the notice of the claim recorded pursuant to section 14

of this act; and

(c) Requiring the real estate broker to record in the office of the

county recorder of the county where the notice of the claim is recorded a

copy of the order of cancellation issued pursuant to paragraph (b).

An order issued pursuant to this subsection must state that the

cancellation of the notice of the claim has the same effect as an

expungement of that notice.

4. If a hearing is conducted pursuant to this section, the court shall

consider the showing made by the parties at the hearing and shall make a

preliminary determination of which party, with reasonable probability, is

entitled to the amount of the owner’s net proceeds claimed by the broker

pending final adjudication of the claims of the parties.

5. If, after the hearing, the district court determines there is a

reasonable probability that:

(a) The real estate broker is entitled to the amount of the owner’s net

proceeds claimed by him, the court shall, if those proceeds:

(1) Have been deposited with the court by the escrow agent

pursuant to section 16 of this act, release the proceeds to the real estate

broker; or

(2) Have not been deposited with the court by the escrow agent

pursuant to that section, order the escrow agent to release the proceeds to

the real estate broker; or

(b) The owner is entitled to the amount of the owner’s net proceeds

claimed by the real estate broker, the court shall, if those proceeds:

(1) Have been deposited with the court by the escrow agent

pursuant to that section, release the proceeds to the owner; or

(2) Have not been deposited with the court by the escrow agent,

order the escrow agent to release the proceeds to the owner.

6. If the owner believes the claim is frivolous and is made without

reasonable cause, the owner may include in the application submitted

pursuant to subsection 1 a request for an order directing the real estate

broker to appear and show cause why the claim should not be dismissed

on those grounds. If the court issues such an order, any hearing

conducted pursuant to that order must be conducted in the manner

provided in NRS 108.2275. In addition to any remedy set forth in that

section, the court may award compensatory damages to the owner.

7. The prevailing party in any civil action filed or hearing conducted

pursuant to this section is entitled to receive:

(a) Any costs incurred by that party for the civil action or hearing;

and

(b) A reasonable attorney’s fee.

8. Proceedings conducted pursuant to this section do not affect any

rights or remedies otherwise available to the owner or the real estate

broker.

that is recorded pursuant to the provisions of section 14 of this act has

priority over any other encumbrance, claim or lien, if the claim of the

real estate broker is recorded before the encumbrance, claim or lien.

2. The provisions of subsection 1 do not apply to a lien recorded

pursuant to the provisions of NRS 108.221 to 108.246, inclusive.

provisions of section 14 of this act and that claim is paid or otherwise

satisfied pursuant to that section, the real estate broker shall, within 3

days after the claim is paid or otherwise satisfied, record a written release

of that claim. The release must be recorded in the office of the county

recorder where the claim was recorded.

provisions of sections 2 to 21, inclusive, of this act must be served in the

manner provided in NRS 108.227.

1. Is not liable in any civil action for any action taken to comply with

the provisions of sections 2 to 21, inclusive, of this act.

2. May charge and collect a fee from an owner or real estate broker

for any services provided by the escrow agent to the owner or real estate

broker pursuant to sections 2 to 21, inclusive, of this act.

1. provisions of sections 2 to 21, inclusive, of this act that is determined by a

1. district court to be frivolous and made without reasonable cause

1. pursuant to section 17 of this act.