CHAPTER
86
Sec. 4. NRS 645.350 is hereby amended to read as follows:
645.350 1. Application for license as a real estate broker, broker-salesman or salesman must be made in writing to the division upon blanks prepared or furnished by the division.
2. Every application for a real estate broker's, broker-salesman's or salesman's license must set forth the following information:
(a) The name, age and address of the applicant. If the applicant is a partnership or an association which is [doing] applying to do business as a real estate broker, the application must contain the name and address of each member thereof. If the application is for a corporation which is [doing] applying to do business as a real estate salesman, real estate broker-salesman or real estate broker, the application must contain the name and address of each officer and director thereof. If the applicant is a limited-liability company which is applying to do business as a real estate broker, the company's articles of organization must designate a manager, and the name and address of the manager and each member must be listed in the application.
(b) In the case of a broker, the name under which the business is to be conducted. The name is a fictitious name if it does not contain the name of the applicant or the names of the members of the applicant's company, firm, partnership or association. Except as otherwise provided in NRS 645.387, a license must not be issued under a fictitious name which includes the name of a real estate salesman or broker-salesman. A license must not be issued under the same fictitious name to more than one licensee within the state. All licensees doing business under a fictitious name shall comply with other pertinent statutory regulations regarding the use of fictitious names.
(c) In the case of a broker, the place or places, including the street number, [the] city and county , where the business is to be conducted.
(d) The business or occupation engaged in by the applicant for at least 2 years immediately preceding the date of the application, and the location thereof.
(e) The time and place of the applicant's previous experience in the real estate business as a broker or salesman.
(f) Whether the applicant has ever been convicted of or is under indictment for a felony or has entered a plea of guilty, guilty but mentally ill or nolo contendere to a charge of felony, and if so, the nature of the felony.
(g) Whether the applicant has been convicted of or entered a plea of nolo contendere to forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, engaging in the business of selling real estate without a license or any crime involving moral turpitude.
(h) Whether the applicant has been refused a real estate broker's, broker-salesman's or salesman's license in any state, or whether his license as a broker or salesman has been revoked or suspended by any other state, district or territory of the United States or any other country.
(i) If the applicant is a member of a limited-liability company, partnership or association, or an officer of a corporation, the name and address of the office of the limited-liability company, partnership, association or corporation of which the applicant is a member or officer.
3. An applicant for a license as a broker-salesman or salesman shall provide a verified statement from the broker with whom he will be associated, expressing the intent of that broker to associate the applicant with him and to be responsible for the applicant's activities as a licensee.
4. If a limited-liability company, partnership or association is to do business as a real estate broker, the application for a broker's license must be verified by at least two members thereof. If a corporation is to do business as a real estate broker, the application must be verified by the president and the secretary thereof.
Sec. 5. NRS 645.370 is hereby amended to read as follows:
645.370 1. [Every] Each limited-liability company doing business as a real estate broker must designate its manager, each partnership doing business as a real estate broker must designate one of its members, and [every] each corporation doing business as a real estate broker must designate one of its officers, to submit an application for a broker's license.
2. Upon such manager's, member's or officer's successfully passing the examination, and upon compliance with all other requirements of law by the limited-liability company, partnership or corporation, as well as by the designated manager, member or officer, the division shall issue a broker's license to the manager, member or officer on behalf of the limited-liability company, corporation or partnership, and thereupon the manager, member or officer so designated is entitled to perform all the acts of a real estate broker contemplated by this chapter; except:
(a) That the license entitles the manager, member or officer so designated to act as a real estate broker only as officer or agent of the limited-liability company, partnership or corporation, and not on his own behalf, except as otherwise provided in NRS 645.385; and
(b) That if in any case the person so designated is refused a license by the real estate division, or in case he ceases to be connected with the limited-liability company, partnership or corporation, the limited-liability company, partnership or corporation may designate another person who [shall make application] must apply and qualify as in the first instance.
Sec. 6. NRS 645.380 is hereby amended to read as follows:
645.380 Each member or officer of a limited-liability company, partnership or corporation who will perform or engage in any of the acts specified in NRS 645.030, other than the manager, member or officer designated for such purpose by the limited-liability company, partnership or corporation in the manner provided in NRS 645.370, [shall make application] must apply for and take out a separate broker's license in his own name individually. The license issued to any such member or officer of a limited-liability company, partnership or corporation entitles the member or officer to act as a real estate broker only as an officer or agent of the limited-liability company, partnership or corporation and not on his own behalf [.] except as otherwise provided in NRS 645.385.
Sec. 7. NRS 645.385 is hereby amended to read as follows:
645.385 The division may waive the requirements of NRS 645.370 and 645.380 by adopting regulations authorizing real estate brokers to act on their own behalf as well as on the behalf of a limited-liability company, corporation or partnership.
Sec. 8. NRS 645.387 is hereby amended to read as follows:
645.387 1. Any natural person who [:
(a) Meets] meets the qualifications of a real estate broker-salesman or salesman [; and
(b)] and:
(a) Except as otherwise provided in subsection 2, is the sole shareholder of a corporation organized [under] pursuant to the provisions of chapter 89 of NRS ; or
(b) Is the manager of a limited-liability company organized pursuant to the provisions of chapter 86 of NRS,
may be licensed on behalf of the corporation or limited-liability company for the purpose of associating with a licensed real estate broker in the capacity of a broker-salesman or salesman.
2. The spouse of the owner of the corporation who has a community interest in any shares of the corporation shall not be deemed a second shareholder of the corporation for the purposes of paragraph [(b)] (a) of subsection 1, if the spouse does not vote any of those shares.
3. A license issued [under] pursuant to this section entitles only the sole shareholder of the corporation or the manager of the limited-liability company to act as a broker-salesman or salesman, and only as an officer or agent of the corporation or limited-liability company and not on his own behalf. The licensee [may] shall not do or deal in any act, acts or transactions included within the definition of a real estate broker in NRS 645.030, except as that activity is permitted [under] pursuant to this chapter to licensed broker-salesmen and salesmen.
4. The corporation or limited-liability company shall, within 30 days after a license is issued on its behalf pursuant to this section and within 30 days after any change in its ownership, file an affidavit with the division stating :
(a) For a corporation, the number of issued and outstanding shares of the corporation and the names of all persons to whom the shares have been issued.
(b) For a limited-liability company, the names of members who have an interest in the company.
5. A license issued [under] pursuant to this section automatically expires upon:
(a) The death of the licensed shareholder [.] in the corporation or the manager of the limited-liability company.
(b) The issuance of shares in the corporation to more than one person other than the spouse.
6. Nothing in this section alters any of the rights, duties or liabilities which otherwise arise in the legal relationship between a real estate broker, broker-salesman or salesman and a person who deals with him.
Sec. 9. NRS 645.590 is hereby amended to read as follows:
645.590 If any real estate broker licensed [under] pursuant to the provisions of this chapter as a manager of a limited-liability company, member of a partnership, or as an officer of a corporation, discontinues his connections with the limited-liability company, partnership or corporation, and thereafter desires to act as an individual real estate broker, or become associated with any other limited-liability company, partnership or corporation, the broker must file an application and pay a transfer fee of $20 for a new license as an individual broker , as the manager of the new limited-liability company, or as a member of the new partnership or association, or as an officer of the new corporation. The payment of such a fee does not extend or otherwise alter the original license period.
Sec. 10. NRS 645.670 is hereby amended to read as follows:
645.670 In the event of the revocation or suspension of the license issued to [any] a manager of a limited-liability company, a member of a partnership or to any officer of a corporation, the limited-liability company, partnership or corporation [may] shall not conduct business unless the manager or member whose license has been revoked is severed and his interest in the limited-liability company or partnership and his share in its activities brought to an end, or if a corporation, the offending officer is discharged and has no further participation in its activities. The discharged or withdrawing manager, member or officer of such a limited-liability company, partnership or corporation may reassume his connection with, or be reengaged by the limited-liability company, partnership or corporation , upon termination of the suspension or upon reinstatement of his license.
Sec. 11. NRS 645.844 is hereby amended to read as follows:
645.844 1. Except as otherwise provided in subsection 2, when any person obtains a final judgment in any court of competent jurisdiction against any licensee or licensees [under] pursuant to this chapter, upon grounds of fraud, misrepresentation or deceit with reference to any transaction for which a license is required [under] pursuant to this chapter, that person, upon termination of all proceedings, including appeals in connection with any judgment, may file a verified petition in the court in which the judgment was entered for an order directing payment out of the fund in the amount of the unpaid actual damages included in the judgment, but not more than $10,000 per judgment. The liability of the fund does not exceed $20,000 for any person licensed pursuant to this chapter, whether he is licensed as a limited-liability company, partnership, association or corporation or as a natural person, or both. The petition must state the grounds which entitle the person to recover from the fund.
2. A person who is licensed pursuant to this chapter may not recover from the fund for damages which are related to a transaction in which he acted in his capacity as a licensee.
3. A copy of the:
(a) Petition;
(b) Judgment;
(c) Complaint upon which the judgment was entered; and
(d) Writ of execution which was returned unsatisfied,
must be served upon the administrator and the judgment debtor and affidavits of service must be filed with the court.
4. Upon the hearing on the petition, the petitioner must show that:
(a) He is not the spouse of the debtor, or the personal representative of that spouse.
(b) He has complied with all the requirements of NRS 645.841 to 645.8494, inclusive.
(c) He has obtained a judgment of the kind described in subsection 1, stating the amount thereof, the amount owing thereon at the date of the petition, and that the action in which the judgment was obtained was based on fraud, misrepresentation or deceit of the licensee in a transaction for which a license is required pursuant to this chapter.
(d) A writ of execution has been issued upon the judgment and that no assets of the judgment debtor liable to be levied upon in satisfaction of the judgment could be found, or that the amount realized on the sale of assets was insufficient to satisfy the judgment, stating the amount so realized and the balance remaining due.
(e) He has made reasonable searches and inquiries to ascertain whether the judgment debtor possesses real or personal property or other assets, liable to be sold or applied in satisfaction of the judgment, and after reasonable efforts that no property or assets could be found or levied upon in satisfaction of the judgment.
(f) He has made reasonable efforts to recover damages from each and every judgment debtor.
(g) The petition has been filed no more than 1 year after the termination of all proceedings, including reviews and appeals, in connection with the judgment.
5. The provisions of this section do not apply to owner-developers.
Sec. 12. NRS 645.850 is hereby amended to read as follows:
645.850 1. A person who:
(a) Obtains or attempts to obtain a license [under] pursuant to this chapter by means of intentional misrepresentation, deceit or fraud; or
(b) Sells or attempts to sell in this state any interest in real property by means of intentional misrepresentation, deceit or fraud,
is guilty of a category D felony and shall be punished as provided in NRS 193.130. In addition to any other penalty, the court shall order the person to pay restitution.
2. Any licensee or owner-developer who commits an act described in NRS 645.630, 645.633 or 645.635 shall be punished by a fine of not more than $5,000 for each offense.
3. A person who violates any other provision of this chapter, if a natural person, is guilty of a gross misdemeanor, and if a limited-liability company, partnership, association or corporation, shall be punished by a fine of not more than $2,500.
4. Any officer or agent of a corporation, or member or agent of a limited-liability company, partnership or association, who personally participates in or is an accessory to any violation of this chapter by the limited-liability company, partnership, association or corporation, is subject to the penalties prescribed in this section for natural persons.
5. Nothing in this section releases a person from civil liability or criminal prosecution [under] pursuant to the general laws of this state.
6. The administrator may prefer a complaint for violation of NRS 645.230 before any court of competent jurisdiction [,] and may take the necessary legal steps through the proper legal officers of this state to enforce the provisions thereof.
7. Any court of competent jurisdiction may try any violation of this chapter, and upon conviction the court may revoke or suspend the license of the person so convicted, in addition to imposing the other penalties provided in this section.
8. If discipline is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorney's fees, may be recovered by the administrator.
Sec. 13. The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.