requires two-thirds majority vote (§ 4)                                                   

                                                                                                  

 

Senate Bill No. 418–Senator Schneider

 

March 19, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes to provisions governing sale of real property. (BDR 54‑159)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to real property; clarifying the duties owed by a real estate salesman, broker-salesman and broker; establishing renewal requirements for the licensure of such real estate licensees; limiting the time for bringing certain civil actions; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1.  NRS 645.252 is hereby amended to read as follows:

1-2    645.252  A licensee who acts as an agent in a real estate transaction:

1-3    1.  Shall disclose to each party to the real estate transaction as soon as

1-4  is practicable:

1-5    (a) Any material and relevant facts, data or information which he

1-6  knows, or which by the exercise of reasonable care and diligence he should

1-7  have known, relating to the property which is the subject of the transaction.

1-8    (b) Each source from which he will receive compensation as a result of

1-9  the transaction.

1-10    (c) That he is a principal to the transaction or has an interest in a

1-11  principal to the transaction.

1-12    (d) Except as otherwise provided in NRS 645.253, that he is acting for

1-13  more than one party to the transaction. If a licensee makes such a

1-14  disclosure, he must obtain the written consent of each party to the

1-15  transaction for whom he is acting before he may continue to act in his

1-16  capacity as an agent. The written consent must include:

1-17      (1) A description of the real estate transaction.

1-18      (2) A statement that the licensee is acting for two or more parties to

1-19  the transaction who have adverse interests and that in acting for these

1-20  parties, the licensee has a conflict of interest.

1-21      (3) A statement that the licensee will not disclose any confidential

1-22  information for 1 year after the revocation or termination of any brokerage

2-1  agreement entered into with a party to the transaction, unless he is required

2-2  to do so by a court of competent jurisdiction or he is given written

2-3  permission to do so by that party.

2-4       (4) A statement that a party is not required to consent to the licensee

2-5  acting on his behalf.

2-6       (5) A statement that the party is giving his consent without coercion

2-7  and understands the terms of the consent given.

2-8    (e) Any changes in his relationship to a party to the transaction.

2-9    2.  Shall exercise reasonable skill and care with respect to all parties to

2-10  the real estate transaction.

2-11    3.  Shall provide to each party to the real estate transaction the

2-12  appropriate form prepared by the division pursuant to NRS 645.193.

2-13    4.  Unless otherwise agreed upon in writing, owes no duty to:

2-14    (a) Independently verify the accuracy of a statement made by:

2-15      (1) A party to a real estate transaction; or

2-16      (2) A source reasonably believed by the licensee to be reliable.

2-17    (b) Conduct an independent inspection of the financial condition of a

2-18  party to a real estate transaction.

2-19    Sec. 2.  NRS 645.257 is hereby amended to read as follows:

2-20    645.257  1.  [A] Except as otherwise provided in subsection 4, a

2-21  person who has suffered damages as the proximate result of a licensee’s

2-22  failure to perform any duties required by NRS 645.252, 645.253 or

2-23  645.254 or the regulations adopted to carry out those sections may bring an

2-24  action against the licensee for the recovery of his actual damages.

2-25    2.  In such an action, any knowledge of the client of the licensee of

2-26  material facts, data or information relating to the real property which is the

2-27  subject of the real estate transaction may not be imputed to the licensee.

2-28    3.  In an action brought by a person against a licensee pursuant to

2-29  subsection 1, the standard of care owed by a licensee is the degree of care

2-30  that a reasonably prudent real estate licensee would exercise and is

2-31  measured by the degree of knowledge required to be obtained by a real

2-32  estate licensee pursuant to NRS 645.343.

2-33    4.  An action brought to enforce the provisions of this section must be

2-34  commenced not later than 1 year after the date of recordation, the date of

2-35  the close of escrow or the date of occupancy, whichever occurs first.

2-36    Sec. 3.  NRS 645.259 is hereby amended to read as follows:

2-37    645.259  A licensee may not be held liable for [a] :

2-38    1.  A misrepresentation made by his client unless the licensee:

2-39    [1.] (a) Knew his client made the misrepresentation; and

2-40    [2.] (b) Failed to inform the person to whom the client made the

2-41  misrepresentation that the statement was false.

2-42    2.  The failure of the seller to make the disclosures required by NRS

2-43  113.130 and 113.135 if:

2-44    (a) The client engaged the services of an inspector certified pursuant

2-45  to chapter 645D of NRS or another appropriate licensed or certified

2-46  expert; or

2-47    (b) The information that would have been disclosed pursuant to NRS

2-48  113.130 and 113.135 is a public record which is readily available to the

2-49  client.

3-1    Sec. 4.  NRS 645.490 is hereby amended to read as follows:

3-2    645.490  1.  Upon satisfactorily passing the written examination and

3-3  upon complying with all other provisions of law and conditions of this

3-4  chapter, a license shall thereupon be granted by the division to the

3-5  successful applicant therefor as a real estate broker, broker-salesman or

3-6  salesman, and the applicant upon receiving the license may conduct the

3-7  business of a real estate broker, broker-salesman or salesman in this state.

3-8    2.  The division shall issue licenses as real estate broker, broker-

3-9  salesman or salesman to all applicants who qualify and comply with all

3-10  provisions of law and all requirements of this chapter.

3-11    3.  A real estate broker or broker-salesman shall renew his license

3-12  with the division every 2 years.

3-13    4.  A salesman shall renew his license with the division within 1 year

3-14  immediately after initial licensing and thereafter shall renew his license

3-15  every 2 years.

3-16    Sec. 5.  NRS 645.575 is hereby amended to read as follows:

3-17    645.575  1.  The commission shall prescribe standards for the

3-18  continuing education of persons licensed pursuant to this chapter by

3-19  adopting regulations which include:

3-20    (a) For renewal of a license which is on active status, a requirement for

3-21  the hours of attendance at any approved educational course, seminar or

3-22  conference of:

3-23      (1) Thirty hours within the [2-year period] first year immediately

3-24  after initial licensing; and

3-25      (2) Fifteen hours within each subsequent 2-year period before

3-26  renewal.

3-27  For each period, at least 6 of the hours must be devoted to ethics,

3-28  professional conduct or the legal aspects of real estate.

3-29    (b) For reinstatement of a license which has been placed on inactive

3-30  status, a requirement for total attendance at any approved educational

3-31  course, seminar or conference of:

3-32      (1) Thirty hours if the license was on inactive status for 2 years or

3-33  less during the initial license period;

3-34      (2) Fifteen hours if the license was on inactive status for a period of 2

3-35  years or less, no part of which was during the initial license period;

3-36      (3) Forty-five hours if the license was on inactive status for a period

3-37  of more than 2 years, part of which was during the initial license period; or

3-38      (4) Thirty hours if the license was on inactive status for a period of

3-39  more than 2 years, no part of which was during the initial
license period.

3-40  For each period, at least 6 of the hours must be devoted to ethics,

3-41  professional conduct or the legal aspects of real estate.

3-42    (c)A basis and method of qualifying educational programs and

3-43  certifying attendance which will satisfy the requirements of this section.

3-44    (d) A procedure for the evaluation of petitions based on a claim of

3-45  equivalency with the requirements of paragraph (a) or (b).

3-46    (e) A system of controlling and reporting qualifying attendance.

4-1    (f) A statement of the conditions for which an extension of time may be

4-2  granted to comply with the continuing education requirements as well as a

4-3  method of applying and qualifying for an extension.

4-4    2.  The standards prescribed in subsection 1 must permit alternatives of

4-5  subject material, taking cognizance of specialized areas of practice and

4-6  alternatives in sources of programs considering availability in area and

4-7  time. The standards must include, where qualified, generally accredited

4-8  educational institutions, private vocational schools, educational programs

4-9  and seminars of professional societies and organizations, other organized

4-10  educational programs on technical subjects, or equivalent offerings. The

4-11  commission shall qualify only those educational courses that it determines

4-12  address the appropriate subject matter and are given by an accredited

4-13  university or community college. Subject to the provisions of this section,

4-14  the commission has exclusive authority to determine what is an appropriate

4-15  subject matter for qualification as a continuing education course.

4-16    3.  Except as otherwise provided in this subsection, the license of a

4-17  broker, broker-salesman or salesman must not be renewed or reinstated

4-18  unless the administrator finds that the applicant for the renewal license or

4-19  for reinstatement to active status has completed the continuing education

4-20  required by this chapter. Any amendment or repeal of a regulation does not

4-21  operate to prevent an applicant from complying with this section for the

4-22  next licensing period following the amendment or repeal.

4-23    Sec. 6.  NRS 645.635 is hereby amended to read as follows:

4-24    645.635  The commission may take action pursuant to NRS 645.630

4-25  against any person subject to that section who is guilty of:

4-26    1.  Offering real estate for sale or lease without the knowledge and

4-27  consent of the owner or his authorized agent or on terms other than those

4-28  authorized by the owner or his authorized agent.

4-29    2.  Negotiating a sale, exchange or lease of real estate directly with [an

4-30  owner or lessor] a client if he knows that the [owner] client has a

4-31  brokerage agreement in force in connection with the property granting an

4-32  exclusive agency or an exclusive right to sell to another broker, unless

4-33  permission in writing has been obtained from the other broker.

4-34    3.  Failure to deliver within a reasonable time a completed copy of any

4-35  purchase agreement or offer to buy or sell real estate to the purchaser or to

4-36  the seller.

4-37    4.  Failure to deliver to the seller in each real estate transaction, within

4-38  10 business days after the transaction is closed, a complete, detailed

4-39  closing statement showing all of the receipts and disbursements handled by

4-40  him for the seller, failure to deliver to the buyer a complete statement

4-41  showing all money received in the transaction from the buyer and how and

4-42  for what it was disbursed, or failure to retain true copies of those

4-43  statements in his files. The furnishing of those statements by an escrow

4-44  holder relieves the broker’s, broker-salesman’s or salesman’s responsibility

4-45  and must be deemed to be compliance with this provision.

4-46    5.  Representing to any lender, guaranteeing agency or any other

4-47  interested party, verbally or through the preparation of false documents, an

4-48  amount in excess of the actual sale price of the real estate or terms differing

4-49  from those actually agreed upon.

5-1    6.  Failure to produce any document, book or record in his possession

5-2  or under his control, concerning any real estate transaction under

5-3  investigation by the division.

5-4    7.  Failure to reduce a bona fide offer to writing where a proposed

5-5  purchaser requests that it be submitted in writing.

5-6    8.  Failure to submit all written bona fide offers to a seller when the

5-7  offers are received before the seller accepts an offer in writing and until the

5-8  broker has knowledge of that acceptance.

5-9    9.  Refusing because of race, color, national origin, sex or ethnic group

5-10  to show, sell or rent any real estate for sale or rent to qualified purchasers

5-11  or renters.

5-12    10.  Knowingly submitting any false or fraudulent appraisal to any

5-13  financial institution or other interested person.

5-14    Sec. 7.  NRS 113.140 is hereby amended to read as follows:

5-15    113.140  1.  NRS 113.130 does not require a seller to disclose a defect

5-16  in residential property of which he is not aware.

5-17    2.  A completed disclosure form does not constitute an express or

5-18  implied warranty regarding any condition of residential property.

5-19    3.  Neither this chapter nor chapter 645 of NRS relieves a buyer or

5-20  prospective buyer of the duty to exercise reasonable care to protect

5-21  himself, including, without limitation, those facts which are known to or

5-22  are within the diligent attention and observation of the buyer or

5-23  prospective buyer.

 

5-24  H