Senate Bill No. 139–Senator Townsend

 

February 18, 2003

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Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes to provisions governing certain real estate practices. (BDR 54‑663)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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

 

AN ACT relating to real estate; making various changes to provisions governing certain real estate practices; revising provisions relating to certain civil actions brought against real estate brokers, real estate broker-salesmen and real estate salesmen; 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:

 

1-1  Section 1. NRS 645.005 is hereby amended to read as follows:

1-2  645.005  “Brokerage agreement” means an oral or written

1-3  contract between a client and a [licensee] broker in which the

1-4  [licensee] broker agrees to accept valuable consideration from

1-5  the client or another person for assisting, soliciting or negotiating

1-6  the sale, purchase, option, rental or lease of real property.

1-7  Sec. 2.  NRS 645.257 is hereby amended to read as follows:

1-8  645.257  1.  A person who has suffered damages as the

1-9  proximate result of a licensee’s failure to perform any duties

1-10  required by NRS 645.252, 645.253 or 645.254 or the regulations

1-11  adopted to carry out those sections may bring an action against the

2-1  licensee [for] in which the person’s exclusive remedy is the

2-2  recovery of his actual damages.

2-3  2.  In such an action, any knowledge of the client of the licensee

2-4  of material facts, data or information relating to the real property

2-5  which is the subject of the real estate transaction may not be

2-6  imputed to the licensee.

2-7  3.  In an action brought by a person against a licensee pursuant

2-8  to subsection 1, the standard of care owed by a licensee is the degree

2-9  of care that a reasonably prudent real estate licensee would exercise

2-10  and is measured by the degree of knowledge required to be obtained

2-11  by a real estate licensee pursuant to NRS 645.343 and 645.345.

2-12      Sec. 3.  NRS 645.315 is hereby amended to read as follows:

2-13      645.315  1.  In any advertisement through which a licensee

2-14  offers to perform services for which a license is required pursuant to

2-15  this chapter, the licensee shall:

2-16      (a) If [he] the licensee is a real estate broker, disclose the name

2-17  of any brokerage under which [he] the licensee does business; or

2-18      (b) If [he] the licensee is a real estate broker-salesman or real

2-19  estate salesman, disclose the name of the [broker] brokerage with

2-20  whom [he] the licensee is associated.

2-21      2.  [A] If a licensee is a real estate broker-salesman or real

2-22  estate salesman , the licensee shall not advertise solely under [his]

2-23  the licensee’s own name when acting in the capacity as a broker-

2-24  salesman or salesman. All such advertising must be done under the

2-25  direct supervision of and in the name of the [broker] brokerage with

2-26  whom the [broker-salesman or salesman] licensee is associated.

2-27      Sec. 4.  NRS 645.320 is hereby amended to read as follows:

2-28      645.320  Every brokerage agreement which includes a

2-29  provision for an exclusive [listing] agency representation must:

2-30      1.  Be in writing.

2-31      2.  Have set forth in its terms a definite, specified and complete

2-32  termination.

2-33      3.  Contain no provision which requires the client who signs the

2-34  brokerage agreement to notify the real estate broker of his intention

2-35  to cancel the exclusive features of [that listing] the brokerage

2-36  agreement after the termination of the [listing.] brokerage

2-37  agreement.

2-38      4.  Be signed by both the client or his authorized representative

2-39  and the [listing agent] broker or his authorized representative in

2-40  order to be enforceable.

 

2-41  H