Licensees Flashcards
An applicant for a Nevada real estate salesperson license has had problems keeping up with his child support payments. The judge has ordered him to pay in a timely manner, but he has not complied. Can the Real Estate Division issue him a real estate license?
Yes. The Real Estate Division can’t refuse to issue him a license if he has completed his 120 hours of pre-licensing education.
No. If he is behind on his judge-ordered child support payments, the Real Estate Division probably won’t issue him a license.
No. If he is behind on his judge-ordered child support payments, the Real Estate Division probably won’t issue him a license.
Who is a Real Estate Salesperson?
A “real estate salesperson” is any person who, as an employee or as an independent contractor, is associated with a licensed real estate broker or registered owner-developer to do certain activities with the intention or expectation of receiving compensation. These acts are:
(a) Sells, exchanges, options, purchases, rents or leases, or negotiates or offers, attempts or agrees to negotiate the sale, exchange, option, purchase, rental or lease of, or lists or solicits prospective purchasers, lessees or renters of, any real estate or the improvements thereon or any modular homes, used manufactured homes, used mobile homes or other housing offered or conveyed with any interest in real estate; (b) Engages in or offers to engage in the business of claiming, demanding, charging, receiving, collecting or contracting for the collection of an advance fee in connection with any employment undertaken to promote the sale or lease of business opportunities or real estate by advance fee listing advertising or other offerings to sell, lease, exchange or rent property; (c) Engages in or offers to engage in the business of property management; or (d) Engages in or offers to engage in the business of business brokerage.
Who is a Real Estate Broker-Salesperson?
A “real estate broker-salesperson” is any person who holds a real estate broker’s license, or who has passed the real estate broker’s examination, but who, as an employee or as an independent contractor, for compensation or otherwise, is associated with:
(a) A licensed real estate broker in the capacity of a salesperson, to do or to deal in any act, acts or transactions included within the definition of a real estate broker. These acts are:
Sells, exchanges, options, purchases, rents or leases, or negotiates or offers, attempts or agrees to negotiate the sale, exchange, option, purchase, rental or lease of, or lists or solicits prospective purchasers, lessees or renters of, any real estate or the improvements thereon or any modular homes, used manufactured homes, used mobile homes or other housing offered or conveyed with any interest in real estate;
Engages in or offers to engage in the business of claiming, demanding, charging, receiving, collecting or contracting for the collection of an advance fee in connection with any employment undertaken to promote the sale or lease of business opportunities or real estate by advance fee listing advertising or other offerings to sell, lease, exchange or rent property;
Engages in or offers to engage in the business of property management; or
Engages in or offers to engage in the business of business brokerage.
Other Roles
A broker-salesperson who has at least 2 years of experience during the immediately preceding 4 years, can request the Division approve him/her to operate in the capacity of a sales manager for a:
Registered owner-developer (new home development),
Broker at a branch office, or
Project Broker (Time Share Resort) at a brance office.
Who is a Real Estate Broker?
A “Real estate broker” is a person who, for another and for compensation or with the intention or expectation of receiving compensation:
(a) Sells, exchanges, options, purchases, rents or leases, or negotiates or offers, attempts or agrees to negotiate the sale, exchange, option, purchase, rental or lease of, or lists or solicits prospective purchasers, lessees or renters of, any real estate or the improvements thereon or any modular homes, used manufactured homes, used mobile homes or other housing offered or conveyed with any interest in real estate; (b) Engages in or offers to engage in the business of claiming, demanding, charging, receiving, collecting or contracting for the collection of an advance fee in connection with any employment undertaken to promote the sale or lease of business opportunities or real estate by advance fee listing advertising or other offerings to sell, lease, exchange or rent property; (c) Engages in or offers to engage in the business of property management; or (d) Engages in or offers to engage in the business of business brokerage. 2. Any person who, for another and for compensation, aids, assists, solicits or negotiates the procurement, sale, purchase, rental or lease of public lands is a real estate broker within the meaning of this chapter. 3. The term does not include a person who is employed by a licensed real estate broker to accept reservations on behalf of a person engaged in the business of the rental of lodging for 31 days or less, if the employee does not perform any tasks related to the sale or other transfer of an interest in real estate.
A Broker’s Responsibility
Brokers are responsible for supervising their ‘employees’ activities in addition to the activities of their associated licensees.
A broker is responsible for making sure that paperwork is confidential and also reponsibile for the trust accounts and the finances of the office. If money disappears, even if the manager or someone else was reponsibile; the broker is ultimately responsible for replacing it.
The Division can inspect a brokerage office and brokerage finances at any time. Such an inspection must include, but need not be limited to:
(a) The address of the real estate office or time-share office. (b) The sign identifying the office. (c) The procedure used to deposit money. (d) The trust records. (e) The indexing or numbering system used in filing records. (f) Advertising, and (g) The availability of current statutes and regulations at the place of business.
Responsibilities for Licensees: Train, Monitor and Educate
Every real estate broker shall teach the licensees associated with him or her the fundamentals of real estate or time-share practice, or both, and the ethics of the profession. The broker shall supervise the activities of those licensees, the activities of his or her employees and the operation of his or her business. These responsibilities include the establishment of policies, rules, procedures and systems that allow the real estate broker to review, oversee and manage:
(a) The real estate transactions performed by a licensee who is associated with the real estate broker;
(b) Documents that may have a material effect upon the rights or obligations of a party to such a real estate transaction;
(c) The filing, storage and maintenance of such documents;
(d) The handling of money received on behalf of a real estate broker;
(e) The advertising of any service for which a real estate license is required; and
(f) The familiarization by the licensee of the requirements of federal and state law governing real estate transactions, including, without limitation, prohibitions against discrimination.
In establishing these policies, rules, procedures and systems, the real estate broker must consider the number of licensees associated with the real estate broker, the number of employees employed by the real estate broker and the number and locations of branch offices operated by the real estate broker. If there are more licensees and employees than the broker is able to manage and oversee or if offices are too spread out to be managed exclusively by the broker, managers must be hired and maintained.
A real estate broker is responsible for establishing a system for monitoring compliance with all policies, rules, procedures and systems. The real estate broker may use a real estate broker-salesperson to assist in administering the provisions as long as the real estate broker does not relinquish overall responsibility for the supervision of the acts of the licensees associated with the real estate broker.
A real estate broker should enter into a written agreement with each licensee associated with the real estate broker to retain the licensee as an independent contractor. If such an agreement is entered into, it must:
(a) Be signed and dated by the real estate broker and the licensee; and
(b) Include the material aspects of the relationship between the real estate broker and the licensee, including, without limitation, the supervision by the real estate broker of the activities of the licensee for which a real estate license is required.
Who is a Property Manager?
A “Property manager” is a person engaged in property management who, as an employee or independent contractor, is associated with a licensed real estate broker, whether or not for compensation.
It is needed if the licensee is planning to offer ongoing property management services. The permit is not needed for leasing agents. Leasing is an activity allowed under a real estate license.
“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 property management agreement.
The permit is needed if the licensee is going to be working on on-going property management.
Who is a Business Broker?
A “Business broker” is a person who, while acting for another and for compensation or with the intention or expectation of receiving compensation:
1. Sells, exchanges, options, purchases, rents or leases a business that is sold, exchanged, optioned, purchased, rented or leased as part of an interest or estate in real property;
2. Negotiates or offers, attempts or agrees to negotiate the sale, exchange, option, purchase, rental or lease of a business that is or is intended to be sold, exchanged, optioned, purchased, rented or leased as part of an interest or estate in real property; or
3. Lists or solicits prospective purchasers of a business if a component of the listing or solicitation is an interest or estate in real property.
- Listing or soliciting prospective purchasers of, any business, the individual assets of any business or any ownership interest in any business, including, without limitation, any stock, partnership interest or membership interest in a limited-liability company, for which income and expenses have been reported to the Internal Revenue Service in the previous calendar or fiscal year on Form 1040, Form 1065, Form 1120 or Form 1120S, or any combination thereof, unless 50 percent or more of the gross reported income, excluding net capital gain, was earned by the rental of real estate reported on Form 8825.
**A real estate licensee DOES NOT need a Business Broker Permit IF more than 50% of the business comes from the value of the real estate…ie…Hotel, Ranch, Commercial Building that leases space BUT, Licensees MUST ensure that they have the necessary expertise to perform the transaction.
Who is a Time Share Sales Agent?
A Time Share Sales Agent or “Sales agent” means a person who, on behalf of a developer and under the direct supervision of a Project Broker (a Project Broker is a licensed real estate Broker who accepts the responsibility of the title Project Broker for a Project Developer), sells or offers to sell a time share to a purchaser or works as a Time Share Representative as a representative who acts to induce other persons to attend a sales presentation on the behalf of a developer.
They can only sell NEW time shares!
When does a licensee report changes after 10 days?
Change of broker,
Change of employer or company,
Personal name change,
Status change (broker to broker-salesperson),
Professional corporation of LLC status change,
Status change from office manager or sales manager,
Designated property manager or designated business broker change,
Permit (property manager or business broker) change, and
Company name change.
When does a licensee report changes after 30 days?
If a licensee is terminated by a Broker, the licensee has 30-days to notify the Real Estate Division and become affiliated with another Broker.
A licensee, whose license has become inactive because of his broker’s license status, has 30 days to stabilize his license before he needs to provide additional requirements.
From the date of termination, a licensee has 30 days to become associated with another Broker or Owner Developer or request that the license be placed on inactive status.
When does a licensee report changes after 60 days?
When a Broker Dies…
Upon the death of real estate broker, a Nevada licensed real estate broker may submit to the Division an affidavit stating that he or she will act as the broker of that brokerage for not more than 60 days after the death of the person who was acting as the broker of the brokerage. Notice of such an appointment must be submitted to the Division, in writing, within 7 business days after the death of the person who was acting as the broker of the brokerage.
Licensee Diana’s broker forgot to renew his license. Are the licensee’s licenses affected? If so, how long does Diana have to move to another broker or re-affiliate with the original broker? Can Diana work at this point?
Yes. All licenses under that broker are affected. Diana has 30-days to re-affiliate with a broker. No, Diana cannot work until her license is back at the office.
