NV Real Estate Law Flashcards
Definition of “Agency”
the relationship between a principal (client) and an agent (broker) arising out of a brokerage agreement in which the agent agrees to do certain acts on behalf of the principal in dealings with a third party.
Brokerage Agreement
an employment contract wherein the broker agrees to provide real estate related services for valuable consideration or compensation. It may be either oral or written.
Does Nevada recognize “Transactional agency”
No. Transactional agency is where the broker agrees he or she is not representing either party and is only hired to facilitate the transaction.
What is required when acting for more than one party (Multiple Representation)
-Consent to Act Form
-Approval from the clients
-If a Broker assigns to separate agents to represent either party, a consent to act form is not needed
True or False? The Duties Owed or Consent to Act Forms DO NOT constitute an agency agreement or an agreement for compensation
TRUE. These are disclosure forms.
When is the Consent to Act Form Used?
when a broker (broker- salesperson or salesperson), is acting for two or more parties to a transaction.
How to create a Brokerage Agreement to identify agency
A brokerage agreement is defined as an oral or written contract between a client and a broker in which the broker agrees to provide real estate related services in exchange for valuable consideration
What constitutes a material fact?
a fact is material if it is one which the agent should realize would be likely to affect the judgment of the principal in giving his consent to the agent to enter into the particular transaction on the specified terms.
nonfeasance
occurs when a licensee is supposed to act and does not.
malfeasance
a wrong or unlawful act
misfeasance
where a licensee performs a lawful act but in an unlawful or negligent manner.
how long is a licensee required to maintain confidentiality after the revocation or termination of an agency agreement?
1 year
RESPA (Real Estate Settlement Procedures Act)
prohibits referrals from one business to another business when owned by the same company unless there is full disclosure. These are affiliated business arrangements.
non-material facts (not required to disclose)
-homicide, suicide, or other death (unless the property caused the death)
-the owner has AIDS or another disease not caused by the property
-property was the site of a felony (unless manufacturing meth and was not remediated)
-property is located near another property used to provide transitional housing (unless halfway house for drug and alcohol abusers)
-sex offender lives or is expected to live nearby
how long do you have to maintain brokerage transaction files?
5 years
what four elements demonstrate negligence
- duty
- breach of duty
- causation
- damages and harm
what is gross negligence
negligent behavior with a reckless disregard for the consequences of one’s actions.
lis pendens
a notice recorded in the county Recorder’s Office that lets the world know there is litigation pending about the title to, or possession of, real property. It may only be recorded after a legal complaint is filed with the court
ADR (alternate dispute resolution)
mediation, arbitration, or conciliation
Open Brokerage Agreement
where the broker has no exclusive representation of the client – the client may hire any number of other brokers.
Implied Brokerage Agreements
If a seller is aware of the broker’s continuing efforts to secure a buyer and the seller does not affirmatively stop the broker, the seller cannot deprive the broker of a commission by ignoring (or firing) the broker and conducting the final negotiations.
General Exclusive Agency
representation occurs when the broker is the client’s sole real estate agent.
Exclusive Agreement - Exclusive Right to Sell
agency relationship where the broker will get paid regardless of who is the procuring cause of the sale
Exclusive Agreement - Exclusive Agency
agency relationship which the client hires the broker as an exclusive agent, but retains the right to sell or find a property without paying a commission
What is required for an enforceable Exclusive Agency Agreement?
- Agreement must be in writing
- It must be signed by both the broker and the client or their authorized representatives
- The contract must have a definite, specified, and complete termination date
- The agreement may not require the client to notify the broker of the client’s intention to cancel the exclusive features of the brokerage agreement once the agreement is terminated
what actions demonstrate “procuring cause”?
but those acts require the broker to demonstrate “conduct that is more than merely trifling.”74 To be the procuring cause of the sale, the broker must do more than contribute indirectly or incidentally to the sale. Merely introducing the buyer to the seller is not enough. Just imparting information about the property is insufficient. The broker must set in motion a chain of events which, without break in their continuity, cause the buyer and seller to come to terms.
what does RESPA stand for?
Real Estate Settlement Procedures Act
what does RESPA regulate?
It regulates the behavior of settlement service providers who deal with federally related loans in residential real estate transactions. No person may give or accept any fee, kickback, or thing of value involving a federally backed mortgage strictly for a referral to a settlement service provider.
What are the two sources of Anti-Trust Laws?
Sherman Act of 1890 and 1914 Federal Trade Commission and Clayton Acts)
What is the process for rebating part of a broker’s commission to a client?
the broker must acknowledge receipt of the full amount of the commission before refunding a portion back to the client (if this doesn’t happen, it is illegally documenting the broker’s income)
what is disposition
is the voluntary conveyance of any interest an owner has in the property.
net proceeds
the owner’s gross receipts from the disposition
of the property minus existing encumbrances, claims or liens and escrow costs.
when are broker’s authorized to sell mobile homes?
- when the mobile home sits on private property
- when the real property and the home are being sold together
the person who gives an offer
offerort
the person who receives an offer
offeree
bona fide
an offer made in good faith, without fraud or deceit where the offeror is sincere and genuine
when must an offer be presented
as soon as practicable
1968 Fair Housing Act
the act that makes it illegal to discriminate because of race, religion, color, sex, disability, familial status or family origin (while not part of the federal law, Nevada also recognizes sexual orientation and gender identity as protected classes)
how long before copies of signed purchase agreement must be delivered? how long must you keep records
5 days; 5 years
NRS
Nevada Revised Statutes - Nevada’s codified laws
NAC
Nevada Administrative Code -Each state agency that licenses a profession has a set of regulations which govern that profession.
a stigmatized property
a property considered “damaged” because of an event that occurred there; for example, a murder. Generally, it does not refer to actual physical damage or a property defect.
when must the SRPD be provided by seller to buyer
10 days before residential property is conveyed to purchaser
advertising requirements
- identification of licensees status
- disclosing when a licensee is a principal
- identifying the licensees brokerage and agents license #
what must be disclosed to each party in a transaction?
- material facts about the property
- licensees license status and any changes
- compensation sources
- licensees interest in the property if any
steering
occurs when a broker attempts to guide purchasers toward certain regions or neighborhoods using a protected class status.119
active steering
occurs when the licensee actually attempts to persuade persons away from or toward certain neighborhoods based on a protected class status.
passive steering
involves the licensee not showing or making available otherwise appropriate housing.
blockbusting
This is the practice by which a person frightens a homeowner into selling his property at less than market value by spreading rumors that certain racial groups will move into the neighborhood.
All escrow documents must be given to the purchaser within how many days after close of escrow:
10 business days
