Senate Bill No. 139–Senator Townsend

 

CHAPTER..........

 

AN ACT relating to real estate; making various changes to provisions governing certain real estate practices; revising provisions governing property management agreements; revising provisions which require real estate broker-salesmen and real estate salesmen to disclose in certain advertisements the name of the brokerage with whom they are associated; revising provisions relating to brokerage agreements which provide for exclusive agency representation; 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. Chapter 645 of NRS is hereby amended by adding

thereto a new section to read as follows:

    “Property management agreement” means a written contract

between a client and a broker in which the broker agrees to accept

valuable consideration from the client or another person for

providing property management for the client.

    Sec. 2.  NRS 645.0005 is hereby amended to read as follows:

    645.0005  As used in this chapter, unless the context otherwise

requires, the words and terms defined in NRS 645.001 to 645.040,

inclusive, and section 1 of this act have the meanings ascribed to

them in those sections.

    Sec. 3. NRS 645.005 is hereby amended to read as follows:

    645.005  “Brokerage agreement” means an oral or written

contract between a client and a [licensee] broker in which the

[licensee] broker agrees to accept valuable consideration from

the client or another person for assisting, soliciting or negotiating

the sale, purchase, option, rental or lease of real property. The term

does not include a property management agreement.

    Sec. 4.  NRS 645.009 is hereby amended to read as follows:

    645.009  “Client” means a person who has entered into a

brokerage agreement with a [licensee.] broker or a property

management agreement with a broker.

    Sec. 5.  NRS 645.019 is hereby amended to read as follows:

    645.019  “Property management” means the physical,

administrative or financial maintenance and management of real

property, or the supervision of such activities for a fee, commission

or other compensation or valuable consideration, pursuant to a

[brokerage] property management agreement.

 

 

 

    Sec. 6.  NRS 645.315 is hereby amended to read as follows:

    645.315  1.  In any advertisement through which a licensee

offers to perform services for which a license is required pursuant to

this chapter, the licensee shall:

    (a) If [he] the licensee is a real estate broker, disclose the name

of any brokerage under which [he] the licensee does business; or

    (b) If [he] the licensee is a real estate broker-salesman or real

estate salesman, disclose the name of the [broker] brokerage with

whom [he] the licensee is associated.

    2.  [A] If a licensee is a real estate broker-salesman or real

estate salesman , the licensee shall not advertise solely under [his]

the licensee’s own name when acting in the capacity as a broker-

salesman or salesman. All such advertising must be done under the

direct supervision of and in the name of the [broker] brokerage with

whom the [broker-salesman or salesman] licensee is associated.

    Sec. 7.  NRS 645.320 is hereby amended to read as follows:

    645.320  Every brokerage agreement which includes a

provision for an exclusive [listing] agency representation must:

    1.  Be in writing.

    2.  Have set forth in its terms a definite, specified and complete

termination.

    3.  Contain no provision which requires the client who signs the

brokerage agreement to notify the real estate broker of his intention

to cancel the exclusive features of [that listing] the brokerage

agreement after the termination of the [listing.] brokerage

agreement.

    4.  Be signed by both the client or his authorized representative

and the [listing agent] broker or his authorized representative in

order to be enforceable.

    Sec. 8.  NRS 645.6056 is hereby amended to read as follows:

    645.6056  1.  A real estate broker who holds a permit to

engage in property management shall not act as a property manager

unless the broker has first obtained a [written brokerage] property

management agreement signed by the broker and the client for

whom the broker will manage the property.

    2.  A [brokerage agreement for] property management

agreement must include, without limitation:

    (a) The term of the agreement [;] and, if the agreement is

subject to renewal, provisions clearly setting forth the

circumstances under which the agreement may be renewed and

the term of each such renewal;

    (b) A provision for the retention and disposition of deposits of

the tenants of the property during the term of the agreement [;] and,

if the agreement is subject to renewal, during the term of each

such renewal;

    (c) The fee or compensation to be paid to the broker; [and]

    (d) The extent to which the broker may act as the agent of the

client [.] ; and

    (e) If the agreement is subject to cancellation, provisions

clearly setting forth the circumstances under which the agreement

may be cancelled. The agreement may authorize the broker or the

client, or both, to cancel the agreement with cause or without

cause, or both, under the circumstances set forth in the

agreement.

    Sec. 9.  NRS 645.630 is hereby amended to read as follows:

    645.630  The Commission may require a licensee, property

manager or owner-developer to pay an administrative fine of not

more than $5,000 for each violation he commits or suspend, revoke,

deny the renewal of or place conditions upon his license, permit or

registration, or impose any combination of those actions, at any time

if the licensee, property-manager or owner-developer has, by false

or fraudulent representation, obtained a license, permit or

registration, or the licensee, property manager or owner-developer,

whether or not acting as such, is found guilty of:

    1.  Making any material misrepresentation.

    2.  Making any false promises of a character likely to influence,

persuade or induce.

    3.  Accepting a commission or valuable consideration as a real

estate broker-salesman or salesman for the performance of any of

the acts specified in this chapter or chapter 119 or 119A of NRS

from any person except the licensed real estate broker with whom he

is associated or the owner-developer by whom he is employed.

    4.  Representing or attempting to represent a real estate broker

other than the broker with whom he is associated, without the

express knowledge and consent of the broker with whom he is

associated.

    5.  Failing to maintain, for review and audit by the Division,

each brokerage agreement and property management agreement

governed by the provisions of this chapter and entered into by the

licensee.

    6.  Failing, within a reasonable time, to account for or to remit

any money which comes into his possession and which belongs to

others.

    7.  If he is required to maintain a trust account:

    (a) Failing to balance the trust account at least monthly; and

    (b) Failing to submit to the Division an annual accounting of the

trust account as required in NRS 645.310.

    8.  Commingling the money or other property of his clients with

his own or converting the money of others to his own use.

    9.  In the case of a broker-salesman or salesman, failing to place

in the custody of his licensed broker or owner-developer, as soon as

possible, any deposit or other money or consideration entrusted to

him by any person dealing with him as the representative of his

licensed broker.

    10.  Accepting other than cash as earnest money unless that fact

is communicated to the owner before his acceptance of the offer to

purchase and that fact is shown in the receipt for the earnest money.

    11.  Upon acceptance of an agreement, in the case of a broker,

failing to deposit any check or cash received as earnest money

before the end of the next banking day unless otherwise provided in

the purchase agreement.

    12.  Inducing any party to a brokerage agreement, property

management agreement, agreement of sale or lease to break it in

order to substitute a new brokerage agreement, property

management agreement, agreement of sale or lease with the same

or another party if the inducement to make the substitution is offered

to secure personal gain to the licensee or owner-developer.

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 [Board.] Division.

    Sec. 10.  NRS 645.633 is hereby amended to read as follows:

    645.633  1.  The Commission may take action pursuant to

NRS 645.630 against any person subject to that section who is

guilty of:

    (a) Willfully using any trade name, service mark or insigne of

membership in any real estate organization of which the licensee is

not a member, without the legal right to do so.

    (b) Violating any order of the Commission, any agreement with

the Division, any of the provisions of this chapter, chapter 116, 119,

119A, 119B, 645A or 645C of NRS or any regulation adopted

[thereunder.] pursuant thereto.

    (c) Paying a commission, compensation or a finder’s fee to any

person for performing the services of a broker, broker-salesman or

salesman who has not secured his license pursuant to this chapter.

This subsection does not apply to payments to a broker who is

licensed in his state of residence.

    (d) A felony, or has entered a plea of guilty, guilty but mentally

ill or nolo contendere to a charge of felony or any crime involving

fraud, deceit, misrepresentation or moral turpitude.

    (e) Guaranteeing, or having authorized or permitted any person

to guarantee, future profits which may result from the resale of real

property.

    (f) Failure to include a fixed date of expiration in any written

brokerage agreement or failure to leave a copy of [the] such a

brokerage agreement or any property management agreement with

the client.

    (g) Accepting, giving or charging any undisclosed commission,

rebate or direct profit on expenditures made for a client.

    (h) Gross negligence or incompetence in performing any act for

which he is required to hold a license pursuant to this chapter,

chapter 119, 119A or 119B of NRS.

    (i) Any other conduct which constitutes deceitful, fraudulent or

dishonest dealing.

    (j) Any conduct which took place before he became licensed,

which was in fact unknown to the Division and which would have

been grounds for denial of a license had the Division been aware of

the conduct.

    (k) Knowingly permitting any person whose license has been

revoked or suspended to act as a real estate broker, broker-salesman

or salesman, with or on behalf of the licensee.

    (l) Recording or causing to be recorded a claim pursuant to the

provisions of NRS 645.8701 to 645.8811, inclusive, that is

determined by a district court to be frivolous and made without

reasonable cause pursuant to NRS 645.8791.

    2.  The Commission may take action pursuant to NRS 645.630

against a person who is subject to that section for the suspension or

revocation of a real estate broker’s, broker-salesman’s or salesman’s

license issued to him by any other jurisdiction.

    3.  The Commission may take action pursuant to NRS 645.630

against any person who:

    (a) Holds a permit to engage in property management issued

pursuant to NRS 645.6052; and

    (b) In connection with any property for which the person has

obtained a [written brokerage agreement to manage the] property

management agreement pursuant to NRS 645.6056:

        (1) Is convicted of violating any of the provisions of

NRS 202.470;

        (2) Has been notified in writing by the appropriate

governmental agency of a potential violation of NRS 244.360,

244.3603 or 268.4124, and has failed to inform the owner of the

property of such notification; or

        (3) Has been directed in writing by the owner of the property

to correct a potential violation of NRS 244.360, 244.3603 or

268.4124, and has failed to correct the potential violation, if such

corrective action is within the scope of the person’s duties pursuant

to the [written brokerage] property management agreement.

    4.  The Division shall maintain a log of any complaints that it

receives relating to activities for which the Commission may take

action against a person holding a permit to engage in property

management pursuant to subsection 3.

    5.  On or before February 1 of each odd-numbered year, the

Division shall submit to the Director of the Legislative Counsel

Bureau a written report setting forth, for the previous biennium:

    (a) Any complaints included in the log maintained by the

Division pursuant to subsection 4; and

    (b) Any disciplinary actions taken by the Commission pursuant

to subsection 3.

 

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