Senate Bill No. 418–Senator Schneider

 

CHAPTER..........

 

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; revising the schedule of fees paid to the real estate division of the department of business and industry; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

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

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

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

 is practicable:

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

 knows, or which by the exercise of reasonable care and diligence he

 should have known, relating to the property which is the subject of the

 transaction.

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

 the transaction.

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

 principal to the transaction.

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

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

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

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

 capacity as an agent. The written consent must include:

     (1) A description of the real estate transaction.

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

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

 parties, the licensee has a conflict of interest.

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

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

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

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

 permission to do so by that party.

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

 acting on his behalf.

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

 and understands the terms of the consent given.

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

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

 the real estate transaction.

   3.  Shall provide to each party to the real estate transaction the

 appropriate form prepared by the division pursuant to NRS 645.193.

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

   (a) Independently verify the accuracy of a statement made by an

 inspector certified pursuant to chapter 645D of NRS or another

 appropriate licensed or certified expert.

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

 party to a real estate transaction.

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

   645.257  1.  A person who has suffered damages as the proximate

 result of a licensee’s failure to perform any duties required by NRS

 645.252, 645.253 or 645.254 or the regulations adopted to carry out those

 sections may bring an action against the licensee for the recovery of his

 actual damages.

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

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

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

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

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

 care that a reasonably prudent real estate licensee would exercise and is

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

 estate licensee pursuant to NRS 645.343 and 645.345.

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

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

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

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

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

 misrepresentation that the statement was false.

   2.  Except as otherwise provided in this subsection, the failure of the

 seller to make the disclosures required by NRS 113.130 and 113.135 if

 the information that would have been disclosed pursuant to NRS

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

 client. Notwithstanding the provisions of this subsection, a licensee is

 not relieved of the duties imposed by paragraph (a) of subsection 1 of

 NRS 645.252.

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

   645.490  1.  Upon satisfactorily passing the written examination and

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

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

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

 salesman, and the applicant upon receiving the license may conduct the

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

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

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

 provisions of law and all requirements of this chapter.

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

 license with the division within 1 year immediately after initial licensing

 and thereafter shall renew his license every 2 years.

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

   645.575  1.  The commission shall prescribe standards for the

 continuing education of persons licensed pursuant to this chapter by

 adopting regulations which include:

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

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

 conference of:

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

 after initial licensing; and

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

renewal.

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

 professional conduct or the legal aspects of real estate.

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

 status, a requirement for total attendance at any approved educational

 course, seminar or conference of:

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

 less during the initial license period;

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

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

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

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

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

 more than 2 years, no part of which was during the initial

license period.

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

 professional conduct or the legal aspects of real estate.

   (c)A basis and method of qualifying educational programs and

 certifying attendance which will satisfy the requirements of this section.

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

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

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

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

 granted to comply with the continuing education requirements as well as a

 method of applying and qualifying for an extension.

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

 subject material, taking cognizance of specialized areas of practice and

 alternatives in sources of programs considering availability in area and

 time. The standards must include, where qualified, generally accredited

 educational institutions, private vocational schools, educational programs

 and seminars of professional societies and organizations, other organized

 educational programs on technical subjects, or equivalent offerings. The

 commission shall qualify only those educational courses that it determines

 address the appropriate subject matter and are given by an accredited

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

 the commission has exclusive authority to determine what is an

 appropriate subject matter for qualification as a continuing education

 course.

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

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

 unless the administrator finds that the applicant for the renewal license or

 for reinstatement to active status has completed the continuing education

 required by this chapter. Any amendment or repeal of a regulation does

 not operate to prevent an applicant from complying with this section for

 the next licensing period following the amendment or repeal.

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

   645.635  The commission may take action pursuant to NRS 645.630

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

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

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

 authorized by the owner or his authorized agent.

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

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

 brokerage agreement in force in connection with the property granting an

 exclusive agency or an exclusive right to sell to another broker, unless

 permission in writing has been obtained from the other broker.

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

 purchase agreement or offer to buy or sell real estate to the purchaser or to

 the seller.

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

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

 closing statement showing all of the receipts and disbursements handled

 by him for the seller, failure to deliver to the buyer a complete statement

 showing all money received in the transaction from the buyer and how and

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

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

 holder relieves the broker’s, broker-salesman’s or salesman’s

 responsibility and must be deemed to be compliance with this provision.

   5.  Representing to any lender, guaranteeing agency or any other

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

 amount in excess of the actual sale price of the real estate or terms

 differing from those actually agreed upon.

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

 or under his control, concerning any real estate transaction under

 investigation by the division.

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

 purchaser requests that it be submitted in writing.

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

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

 the broker has knowledge of that acceptance.

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

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

 or renters.

   10.  Knowingly submitting any false or fraudulent appraisal to any

 financial institution or other interested person.

    Sec. 7. NRS 645.830 is hereby amended to read as follows:

   645.830  1.  The following fees must be charged by and paid to the

 division:

 

For each original real estate broker’s, broker-salesman’s or

 corporate broker’s license.......... [$170] $85

For each original real estate salesman’s license.......................................... [130] 65

For each original branch office license..... 100

For real estate education, research and recovery to be

 paid at the time an original application for a license is

 filed....................................................... 20

For real estate education, research and recovery to be paid

at the time an application for a license [is filed or at the

 time a license] is renewed......................... 40

For each renewal of a real estate broker’s, broker

-salesman’s or corporate broker’s license170

For each renewal of a real estate salesman’s license................................................. 130

For each renewal of a real estate branch office license....................................... 100

For each penalty for late filing of a renewal for a broker’s,

 broker-salesman’s or corporate broker’s license................................................... 85

For each penalty for late filing of a renewal for a

 salesman’s license................................... 65

For each change of name or address......... 10

For each transfer of a real estate salesman’s or broker

-salesman’s license and change of association or

 employment............................................ 10

For each duplicate license where the original license is lost

 or destroyed, and an affidavit is made thereof.................................................. 10

For each change of status from broker to broker-salesman,

 or the reverse.......................................... 10

For each reinstatement to active status of an inactive real

 estate broker’s, broker-salesman’s or salesman’s license................................. 10

For each reinstatement of a real estate broker’s license

 when the licensee fails to give immediate written notice to

 the division of a change of name or business location................................................. 20

For each reinstatement of a real estate salesman’s or

 broker-salesman’s license when he fails to notify the

 division of a change of broker within 30 days of

 termination by previous broker................. 20

For each original registration of an owner-developer............................................ 100

For each annual renewal of a registration of an owner

-developer.............................................. 100

For each enlargement of the area of an owner-developer’s

 registration.............................................. 15

For each cooperative certificate issued to an out-of-state

 broker licensee for 1 year or fraction thereof............................................................. 40

For each original accreditation of a course of continuing

 education................................................ 50

For each renewal of accreditation of a course of continuing

 education................................................ 10

           

   2.  The fees prescribed for courses of continuing education do not apply

 to any university or community college of the University and Community

 College System of Nevada.

   Sec. 8.  NRS 113.140 is hereby amended to read as follows:

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

 in residential property of which he is not aware.

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

 implied warranty regarding any condition of residential property.

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

prospective buyer of the duty to exercise reasonable care to protect

 himself.

   Sec. 9.  1.  This section and sections 1, 2, 3, 6 and 8 of this act

 become effective on October 1, 2001.

   2.  Sections 4, 5 and 7 of this act become effective on July 1, 2002.

 

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