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NRS 645 and NAC 645

ABC Real Estate School Nevada Law Nov 2009 Page 93

What are the rules for all licensees? Licensees need a license in Nevada prior to transacting real estate for a

commission.

Brokers and owner-developers are accountable for all deposits.

Salespeople and broker-salespeople need to furnish their broker or owner-

developer, or the escrow business or company designated in the contract,

any money promptly – more specifically within 1 business day.

Licensees need to disclose to all parties any ownership in any escrow

business that will benefit from the transaction.

Referral fees between licensees licensed as salespeople and broker-

salespeople (not between brokers using a „cooperating certificate‟ –

discussed later in this course) are illegal.

Referral fees to unlicensed individuals are illegal.

Salespeople and broker-salespeople shall not accept compensation from

anyone except the Broker and owner-developer that hangs their license.

Brokers may pay a commission to a licensed broker from another state.

Brokers or owner-developers may accept a commission from their

salespeople to pay to a legal party.

Licensees must provide copies of any contracts to their client signing it at

the time of signing or otherwise within a reasonable time thereafter.

Brokers shall keep all records for at least 5 years after the date of the closing

or the last activity involving the property; even offers that were not accepted

and transactions that were not completed.

Salespeople and Broker-salespeople must provide all executed contract to

their Broker within 5 calendar days.

The District Attorney or Attorney General must represent the Division when

they prosecute any offenders of NRS and NAC 645.

Licensee must disclose their licensing status and not use words in

advertising such as, “for sale/lease by owner”.

NRS 645 and NAC 645


The brokerage firm name must be prominent in any licensee advertising,

even the brokers advertising.

Licensees must not advertise any property listed with another broker unless

the licensee obtains prior written consent from the broker. The property

owner must be informed of the request and make the decision for the broker.

A licensee may use the term “team” or “group” if:

o It is not deceptively similar to another‟s.

o The team or group is composed of more than one licensee.

o The members are employed by the same broker.

o The team or group name contains the last name of at least one of the

members.

Advance fee means a real estate advertising fee and the contract must:

o Be in writing.

o Describe services.

o State the fee.

o Not guarantee results.

o Name a date.

o Provide for a refund.

Exclusive agency (including exclusive right-to-sell) agreements must:

o Be in writing.

o Have a termination date.

o Not be automatically renewing.

o Be signed by both the client/client representative and Broker/broker

representative.

o Not be negotiated by a licensee without the consent of the broker

holding an exclusive agency agreement with the owner.

o Cooperate with other brokers and share commission on a previously

agreed basis when it is in their clients‟ best interest.

Signs under an exclusive agency agreement must:

o Not represent another licensee without consent of the listing broker or

agent.

o Not be placed on a property by more than one licensee without the

owners consent in writing.

Licensees must promptly deliver:

o All offers to the seller.

o Copies of contracts to all parties.

NRS 645 and NAC 645


If a contract is not accepted within a reasonable time, a licensee must

provide written notice from:

o The seller informing the buyer that the offer was not accepted.

o The buyer informing the seller that the counteroffer was not accepted.

It is illegal to discriminate due to race, religious creed, color, national

origin, disability, ancestry, familial status, or sex and the penalty is:

o 1st offense: $500.

o 2nd

offense: Show cause why the license should not be revoked.

Investigative files are confidential, except to the investigating agencies.

A licensee must not represent a different broker other than his own without

the written consent of his broker.

A licensee must not accept earnest money in a form other than cash unless it

is communicated to the owner before acceptance and displayed on the

receipt for earnest money.

A broker must deposit all earnest money deposits before the end of the next

banking day unless otherwise agreed upon.

A licensee must not attempt to convince someone else‟s client to break a

contract.

A licensee must not lie.

A licensee must not use a trade organizations‟ logo, if not a member.

Disciplinary action can be taken against a licensee convicted of a crime or

license action before, or during licensing anywhere.

A licensee must not guarantee future profits from the resale of real property.

All written brokerage agreements must include an expiration date.

All clients must receive a copy of all brokerage agreements.

All compensation must be disclosed to all parties.

All licensees need to protect the public against fraud, misrepresentation, and

unethical practices.

All licensees need to obtain all information regarding properties within their

ability.

Licensees cannot provide specialized professional services outside their

field of experience or competence unless it is fully disclosed to their client.

Licensees must disclose:

o Any source of income relating to a transaction.

o Any ownership interest pertinent to the transaction.

All licensees must keep informed of current statutes and regulations in

which he attempts to provide guidance.

NRS 645 and NAC 645


Licensees must treat all parties fairly and show „absolute fidelity‟ to his/her

client.

Licensees acting to a client must make sure that all parties have signed and

have received a copy of all written agreements.

Licensees must make sure:

o Their broker receives a copy of all written agreements.

o All contract changes are in writing and signed or initialed by

concerned parties.

o They understand and properly apply federal and state statutes relating

to the protection of consumers.

Licensees must acquire knowledge of all material facts that are reasonably

attainable and are of customary or express concern and must convey that

knowledge to all parties.

All licensees must cooperate fully and honestly with any Division request.

The knowledge and consent of an owner or authorized agent must be

obtained before real estate is offered for sale or lease.

A licensee may not offer real estate for sale or lease on terms other than

those authorized by the owner or authorized agent.

Written permission must be obtained from the listing broker with an

exclusive agency or exclusive right to sell contract in place, before the

buyer‟s broker negotiates a sale, exchange or lease of real estate, or directly

communicates with the seller during the escrow period. Use Form 637;

„Authorization to Negotiate Directly with Seller‟

http://www.red.state.nv.us/forms/637.pdf.

All contracts must be delivered to clients at that time if possible or within a

reasonable time unless the licensee is not under contract to write, negotiate,

and or present all offers because the seller has waived the duty by signing

Form 636, „Waiver Form‟ and/or Form 637, „Authorization to Negotiate

Directly with Seller‟.

Brokers must retain a complete, detailed closing statement in their file.

A licensee must furnish a complete, detailed closing statement to the seller

and buyer within 10 business days after the transaction is closed unless it

has been done by the escrow holder.

Licensees must not represent to a lender, or insurer:

o An amount greater than the actual sales price.

o Terms different than those agreed upon.

o Any false or fraudulent appraisals.

http://www.red.state.nv.us/forms/637.pdf

NRS 645 and NAC 645


Licensee must write all offers, except when the seller has signed Form 636,

„Waiver Form‟ http://www.red.state.nv.us/forms/636.pdf.

Licensee must continue to submit offers received

o Until they have knowledge of a written acceptance.

o Before the client accepts any offer. NRS 645.635 (8)

Unless the seller has signed Form 636, „Waiver Form‟ and/or

Form 637, „Authorization to Negotiate Directly with Seller‟.

Licensees must not violate Fair Housing.

Licensees must not misrepresent home protection:

o Contract provisions, and/or

o Fees or premiums collected.

A license can be suspended for:

o Failure to pay child support.

o Failure to comply with subpoenas or warrants.

A licensee associated with a licensee or employee guilty of any unlawful act

or violation, is not also guilty, unless they knew or should have known of

the infraction.

A Broker must maintain „adequate supervision‟ of salespeople and broker-

salespeople associated with them or have their license revoked, denied, or

not renewed and be fined up to $10,000.

If they know or should have known of any unlawful act or violation, the

commission may:

o Suspend, revoke or deny renewal of an owner-developer‟s

registration and may fine them up to $5,000.

o Suspend, revoke or deny renewal of a Broker‟s license and fine them

up to $10,000.

http://www.red.state.nv.us/forms/636.pdf

NRS 645 and NAC 645


Supporting Law/Code:

NRS 645.260 One act constitutes action in capacity of broker or salesman. Any person, limited-liability company,

partnership, association or corporation who, for another, in consideration of compensation by fee, commission,

salary or otherwise, or with the intention or expectation of receiving compensation, does, offers or attempts or agrees

to do, engages in, or offers or attempts or agrees to engage in, either directly or indirectly, any single act or

transaction contained in the definition of a real estate broker in NRS 645.030, whether the act is an incidental part of

a transaction, or the entire transaction, is acting in the capacity of a real estate broker or real estate salesman within

the meaning of this chapter.

Rules and Regulations Required of Licensees

NRS 645.3205 Dealing with party to real estate transaction in manner which is deceitful, fraudulent or

dishonest prohibited. A licensee shall not deal with any party to a real estate transaction in a manner which is

deceitful, fraudulent or dishonest.

NRS 645.645 Grounds for disciplinary action against licensees: Acts relating to sale of insurance for home

protection. The commission may take action pursuant to NRS 645.630 against any person selling insurance for home

protection, as defined in NRS 690B.100, under the authority of a license issued pursuant to this chapter who:

1. Makes a misrepresentation in the sale of insurance for home protection.

2. Misrepresents the provisions of the contract of insurance for home protection.

3. Misappropriates any fees or premiums collected for the insurance for home protection.

Money

NRS 645.270 Allegation and proof of licensed status in action for compensation. A person, limited-liability

company, partnership, association or corporation engaged in the business or acting in the capacity of a real estate

broker or a real estate salesman within this state may not commence or maintain any action in the courts of this state

for the collection of compensation for the performance of any of the acts mentioned in NRS 645.030 without alleging

and proving that the person, limited-liability company, partnership, association or corporation was a licensed real

estate broker or real estate salesman at the time the alleged cause of action arose. (Note: Can‟t collect a commission

unless you are licensed and that license is hanging with a broker.)

NRS 645.310 Deposits and trust accounts: Accounting; commingling; records; inspection and audit.

1. All deposits accepted by every real estate broker or person registered as an owner-developer pursuant to this

chapter, which are retained by him pending consummation or termination of the transaction involved, must be

accounted for in the full amount at the time of the consummation or termination.

2. Every real estate salesman or broker-salesman who receives any money on behalf of a broker or owner-developer

shall pay over the money promptly to the real estate broker or owner-developer.

NRS 645 and NAC 645


Office Procedures.

A salesperson or broker-salesperson needs to be licensed to be able to accept compensation.

A salesperson or broker-salesperson needs to be licensed at the time “of the real estate transaction”.

A licensee who receives a deposit on any transaction in which he is engaged on behalf of a

broker or owner-developer shall pay over the deposit to that broker or owner-developer, or to the

escrow business or company designated in the contract, within 1 business day after receiving a

fully executed contract.

Earnest Money Treatment

Salesperson to Broker/O-D/Escrow -------------- within 1 business day/as soon as practicable

Broker to Escrow----------------------------------------by next banking day/promptly

Can‟t be something other than cash unless communicated to all parties before execution

(signing contracts).

Can be deposited elsewhere if all parties have agreed to it in writing.

Ownership Disclosure Required According to NAC 645.660; Disclosure of certain interests required before deposit of

money - a licensee shall not deposit money received by him in any escrow business or company

in which he or anyone associated with him in the real estate or time-share business has an interest

without disclosing this association to all parties to the transaction.

Supporting Law/Code: NAC 645.660 Disclosure of certain interests required before deposit of money.

A licensee shall not deposit money received by him in any escrow business or company in which

he or anyone associated with him in the real estate or time-share business has an interest without

disclosing this association to all parties to the transaction.

Learning Goals:

1. Complete broker‟s file within 5 calendar days.

2. Provide earnest money check to Title/Escrow Company or Broker within

1 business day1 business day/1 business day.

NAC 645.657 Payment of deposits. (NRS 645.050, 645.190, 645.310) A licensee who

receives a deposit on any transaction in which he is engaged on behalf of a broker or owner-

developer shall pay over the deposit to that broker or owner-developer, or to the escrow

business or company designated in the contract, within 1 business day after receiving a

fully executed contract.

http://www.leg.state.nv.us/NRS/NRS-645.html#NRS645Sec050



NRS 645 and NAC 645


Referral Fees (no, no..except between brokers)

It doesn‟t matter what you call it – every variation of „commission‟ has been tried –

finder‟s fee, facilitator fee, referral fee, etc. It is unlawful to share a commission with an

unlicensed person. Negotiating a commission with a client is very legal however. Please read

the following law – NRS 645.280 – next page.

According to NAC 645.525 Naming of false consideration in document - regardless of

disclosure or any agreement on the part of the seller; a licensee shall not lie about the

consideration (earnest money/loan, etc.) in any document, unless it is an obviously nominal

consideration. This should have been clear in pre-licensing when we all learned not to „blindly

obey‟.


NAC 645.525 Code of ethics: False consideration.

Regardless of disclosure or any agreement on the part of the seller, a licensee shall not participate

in the naming of a false consideration in any document, unless it is an obviously nominal.

NRS 645.280 Association with or compensation of unlicensed broker, broker-salesman or

salesman unlawful; payment of commission other than through broker or owner-developer

unlawful.

1. It is unlawful for any licensed real estate broker, or broker-salesman or salesman to

offer, promise, allow, give or pay, directly or indirectly, any part or share of his

commission, compensation or finder´s fee arising or accruing from any real estate

transaction to any person who is not a licensed real estate broker, broker-salesman or

salesman, in consideration of services performed or to be performed by the unlicensed person. A

licensed real estate broker may pay a commission to a licensed broker of another state.

2. A real estate broker-salesman or salesman shall not be associated with or accept

compensation from any person other than the broker or owner-developer under whom he

is licensed at the time of the real estate transaction.

3. It is unlawful for any licensed real estate broker-salesman or salesman to pay a

commission to any person except through the broker or owner-developer under whom he is

licensed at the time of the real estate transaction.

(Note: A salesperson can only receive a commission from his/her broker and

can’t share it with anyone!)

NRS 645 and NAC 645


Who needs to receive copies of contracts?

Licensees must present all offers and counteroffers to clients promptly unless this duty

has been waived by the seller in writing using a „Waiver Form‟ and/or an „Authorization to

Negotiate Directly with Seller‟ disclosure form. If writing and negotiating contracts, licensees

must also provide copies of contracts to:

1) All parties executing such contracts at the time of signing or within a reasonable time

thereafter.

2) Their Broker within 5 calendar days.

3) The Real Estate Division, if requested.

Supporting Law:

NRS 645.300 Delivery of copy of written brokerage agreement; receipt. When a licensee

prepares or has prepared a written brokerage agreement authorizing or employing him to

purchase or sell real estate for compensation or commission, he shall deliver a copy of the written

brokerage agreement to the client signing it at the time the signature is obtained, if possible, or

otherwise within a reasonable time thereafter. Receipt for the copy may be made on the face of

the written brokerage agreement.

(Note: A written brokerage agreement is a listing with the seller, or an agency agreement with

the buyer to pay a fee – clients must get a copy within a reasonable time)

NRS 645.324 Forms of brokerage agreements; reports and forms of accounting; regulations; maintenance of

agreements for review and audit; grounds for disciplinary action.

1. The commission may require such forms of brokerage agreements which include provisions for the payment of

advance fees to be used, and such reports and forms of accounting to be kept, made and submitted, and may adopt

such rules and regulations as the commission may determine to be necessary to carry out the purposes and intent of

NRS 645.322.

2. A licensee shall maintain, for review and audit by the division, each brokerage agreement that is entered into by

the licensee.

3. Any violation of the rules, regulations, orders or requirements of the commission constitutes grounds for

disciplinary action against a licensee.

NRS 645 and NAC 645

ABC Real Estate School Nevada Law Nov 2009 2

5 calendar days/5 calendar days/5 calendar days…..

A salesman or broker-salesman must provide any paperwork to the broker with whom he

is associated with within 5 calendar days after that paperwork is executed by all the parties. I

remember this one by renting a video to celebrate the signing of the deal. The video needs to be

returned in 5 days, and the contract needs to be with the broker within 5 calendar days. The

broker must still keep all files for 5 years after the date of the closing or the last activity

involving the property. This also includes real estate and property management offers that were

not accepted and transactions that were not completed. (i.e. NAC 645.650 Periods for

maintenance of certain records by broker and for provision of certain paperwork to broker. )

Supporting Code:

NAC 645.650 Time requirement for recordkeeping involving real estate transactions and

property management.

1. A broker shall keep complete real estate transaction and property management records for at

least 5 years after the date of the closing or the last activity involving the property, including,

without limitation, offers that were not accepted and transactions that were not completed,

unless otherwise directed by the division.

2. A salesman or broker-salesman must provide any paperwork to the broker with whom he is

associated within 5 calendar days after that paperwork is executed by all the parties.

Note: Brokers must keep records for 5 years after the date of the closing

or the last activity – even if they didn‟t close.

NRS 645 and NAC 645


Office Procedure Summary:

Licensees must provide all paperwork to his/her broker

within 5 calendar days after paperwork is signed by all

parties.

A licensee may pay a deposit directly to an escrow

business or company that is designated in a contract –

rather than requiring the deposit to be given first to the

broker/office.

The licensee has 1 business day after receiving a fully

executed contract to deliver the check to the broker,

owner-developer or escrow company designated in the

contract, unless the contract says otherwise.

NRS 645 and NAC 645


Advertising

Introduction

Advertising laws are specific. When a licensee is answering a question about this topic, it

can seem like common-sense if the licensee follows high ethical standards.

First, anyone advertising real estate for sale must be licensed (with the exceptions of

individuals previously mentioned.). The advertisement must include the name they are called on

their license, and they must prominently display the name of the brokerage firm on the

advertisement. If the licensee is an owner of the property or related to the owner of the property,

they must disclose it using „owner/broker‟, „for sale by owner-broker‟, „for lease by owner-

broker‟, „owner/licensee‟ or similar. They may use their own phone number in the

advertisement. They can‟t violate Fair Housing laws. They can‟t lie or attempt to mislead the

consumer. They need to honor „do not call‟ lists.

Internet/Web Advertising As are unsolicited broadcasts made by radio or television; internet „spam‟ (unwanted and

unsolicited advertising) is also considered advertising, and the spammer must comply with state

regulations and laws. For Web users that open attachments or otherwise answer such „spam‟, the

regulation specifically states that answering these emails by „clicking a box‟ does not in itself

create an agency relationship. If a Web advertiser wants to create an agency relationship, they

will need to present disclosures and obtain appropriate, legal signatures, as with any conventional

relationship. (i.e. NAC 645.613 Dissemination of certain unsolicited information through

Internet or electronic mail.)

Owner/Licensee Advertising

With the onslaught of owner/licensees in Nevada; NAC 645.610 now clarifies advertising

rules for real property owners that buy and sell their own real estate. When advertising their own

property, a licensee may not use his/her name and phone number in an advertisement containing

the words „for sale/lease by owner‟ or similar, but can use his/her name and phone number in an

advertisement that displays ownership and discloses license status. Licensees cannot advertise

using a nickname rather than the name on their license. A licensee hanging with a franchise firm

must make reference to the company name in addition to the franchise name and must also

include, “each office is independently owned and operated” in an advertisement.

If a licensee asks to advertise another agent‟s listing, a „no‟ answer is not adequate due to

the passing of a new regulation. A licensee may not advertise a specific property for sale without

the written consent of the listing broker who owns the listing but the listing broker cannot refuse

giving written consent without consulting the owner.

NRS 645 and NAC 645


This regulation also reiterates the definition of advertising to be all encompassing.

Advertising can be solicited or unsolicited and in writing, oral or on computer. It also includes

business cards, stationery, billboards and signs. Do you think a bus stop is advertising? Yes it

is! (i.e. NAC 645.610 Restrictions on advertising; use of name under which licensee is

licensed.)

Group/Team Advertising

If you are a planning on becoming a member of a team or group; your advertising has

been specifically differentiated. A licensee may use the term “team” or “group” to advertise the

services provided by the licensee if:

1. The use of the term does not constitute the unlawful use of a trade name and is not

deceptively similar to a name under which any other person is lawfully doing business;

2. The team or group is composed of more than one licensee;

3. The members of the team or group are employed by the same broker;

4. The name of the team or group contains the last name of at least one of the members of the

team or group; and

5. The advertising complies with all other applicable provisions.

(i.e. NAC 645.611 Advertisement of services: Use of terms “team” and “group.”)

NRS 645 and NAC 645



NRS 645.230 Unlawful to engage in certain conduct without license or permit or without complying with

certain provisions of chapter; power of Division to file complaint with court and assist in prosecution of

violation; prosecution by district attorney or Attorney General.

1. It is unlawful for any person, limited-liability company, partnership, association or corporation to engage in the

business of, act in the capacity of, advertise or assume to act as, a:

(a) Real estate broker, real estate broker-salesman or real estate salesman within the State of Nevada without first

obtaining the appropriate license from the Real Estate Division as provided for in this chapter;

(b) Property manager within the State of Nevada without first obtaining from the Real Estate Division as provided

for in this chapter a license as a real estate broker, real estate broker-salesman or real estate salesman and a permit to

engage in property management;

(c) Designated property manager within the State of Nevada without complying with the provisions of NRS

645.6055;

(d) Business broker within the State of Nevada without first obtaining from the Real Estate Division as provided for

in this chapter a license as a real estate broker, real estate broker-salesman or real estate salesman and a permit to

engage in business as a business broker issued pursuant to the provisions of NRS 645.863; or

(e) Designated business broker within the State of Nevada without complying with the provisions of NRS 645.867.

2. The Real Estate Division may prefer a complaint for a violation of this section before any court of competent

jurisdiction and may assist in presenting the law or facts upon any trial for a violation of this section.

3. The district attorney of each county shall prosecute all violations of this section in their respective counties in

which violations occur, unless prosecuted by the Attorney General. Upon the request of the Administrator, the

Attorney General shall prosecute any violation of this section in lieu of the district attorney.

NAC 645.610 Restrictions on advertising; use of name under which licensee is licensed.

1. In addition to satisfying the requirements set forth in NRS 645.315:

(a) An advertisement of the services of a licensee for which a license is required under chapter 645 of NRS must not

be false or misleading.

(b) Except as otherwise provided in this paragraph, a licensee shall not use his name or telephone number or the

name or telephone number of another licensee of the brokerage firm with which he is associated in any advertisement

which contains the words “for sale by owner,” “for lease by owner” or similar words. A licensee may use his name or

telephone number in an advertisement for property if the licensee has an ownership interest in the advertised property

and the advertisement contains:

(1) If the licensee is a real estate broker, the words “for sale by owner-broker,” “for lease by owner-broker” or

substantially similar words; or

(2) If the licensee is an agent, the words “for sale by owner-agent,” “for lease by owner-agent” or substantially

similar words.

(c) The name of a brokerage firm under which a real estate broker does business or with which a real estate broker-

salesman or salesman is associated must be clearly identified with prominence in any advertisement. In determining

whether the name of the brokerage firm is identified with prominence, the Division shall consider, without limitation,

the style, size and color of the type or font used and the location of the name of the brokerage firm as it appears in

the advertisement.

(d) A licensee shall not publish or cause to be published any advertisement or place any sign that makes any

reference to the availability of a specific property which is exclusively listed for sale by another broker unless the

licensee obtains the prior written consent of the broker with whom the property is listed. Such consent must not be

given or withheld by the listing broker without the knowledge of the owner of the property.

(e) A licensee shall not advertise or otherwise conduct business under a name, including a nickname, other than the

name under which he is licensed to engage in business.

2. If advertising under the name of a franchise, a broker shall incorporate in a conspicuous way in the advertisement

the real, fictitious or corporate name under which he is licensed to engage in business and an acknowledgment that

each office is independently owned and operated.

3. As used in this section, “advertisement” includes, without limitation:






NRS 645 and NAC 645


(a) Any unsolicited printed material and any broadcast made by radio, television or electronic means, including,

without limitation, by unsolicited electronic mail and the Internet, billboards and signs; and

(b) Business cards, stationery, forms and other documents used in a real estate transaction.

NAC 645.027 "Franchise" defined. "Franchise" means an agreement, whether expressed or implied, oral or

written, between two or more persons by which:

1. The holder is granted the right to engage in the business of offering, selling or distributing goods or services

under a marketing plan or system prescribed in substantial part by the grantor;

2. The operation of the holder‟s business pursuant to such a plan or system is substantially associated with the

grantor‟s trade-mark, service mark, trade name, logotype, advertising or other commercial symbol which identifies

the grantor or its affiliate; and

3. The holder is required to pay, directly or indirectly, a fee for this right.

NAC 645.611 Advertisement of services: Use of terms “team” and “group.”

A licensee may use the term “team” or “group” to advertise the services provided by the licensee if:

1. The use of the term does not constitute the unlawful use of a trade name and is not deceptively similar to a name

under which any other person is lawfully doing business;

2. The team or group is composed of more than one licensee;

3. The members of the team or group are employed by the same broker;

4. The name of the team or group contains the last name of at least one of the members of the team or group; and

5. The advertising complies with all other applicable provisions of this chapter and chapter 645 of NRS.

NAC 645.613 Dissemination of certain unsolicited information through Internet or electronic mail.

A licensee disseminating unsolicited information concerning real property or marketing real property through the

Internet or electronic mail:

1. Shall be deemed to be engaged in advertising and shall comply with the applicable provisions of this chapter and

chapter 645 of NRS relating to advertising.

2. Shall make all disclosures, obtain appropriate signatures and follow all requirements set forth in this chapter and

chapter 645 of NRS before entering into a relationship as the agent of a client. The clicking of an acceptance box

on the Internet or in an electronic mail is insufficient to create such a relationship between the licensee and

the client. As used in this subsection, “appropriate signature” means the legal signature of the client.

NRS 645.315 Conditions and limitations on certain advertisements; required disclosures; prohibited acts.

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 the licensee is a real estate broker, disclose the name of any brokerage under which the licensee does business;

or

(b) If the licensee is a real estate broker-salesman or real estate salesman, disclose the name of the brokerage with

whom the licensee is associated.

2. If a licensee is a real estate broker-salesman or real estate salesman, the licensee shall not advertise solely under

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 brokerage with whom the licensee is associated.

(Note: A licensee can‟t advertise “for sale by owner” – must say for sale by

owner/licensee or owner/broker not owner/Realtor (Realtor just says you are a member

of the Association, not a licensee.))

(Note: All licensees‟ ads must say the name of the office and it must stand

out. It must be dominant in size and impression upon the viewer! It doesn‟t

need the agent‟s name.)

NRS 645 and NAC 645


Key Ideas

What can and cannot be performed by an unlicensed assistant, also

known as a virtual assistant? ?

NRS 645 and NAC 645


NRS 645 and NAC 645


Advance Fee Advertising

Advance Fee Advertising is a type of advertising that is specifically regulated. It stems

back to the discussion about the different terms that can be used to mean „commission‟. The

author guesses that someone argued that they didn‟t need a real estate license, because they

weren‟t actually selling real estate for a fee, they were selling advertising for a fee. Hence,

advance fee advertising was created and laws were written to regulate it.

An individual needs a real estate license to sell real estate advertising – advance fee

advertising. An advance fee is a fee charged for advertising, or a fee charged for referring the

sale or lease of a business or real estate to a licensee. This includes selling lists of rentals

properties or homes available. Newspapers and home sale magazines are exempt.

Advance fees must:

Be in writing,

Contain a complete description of services,

Clearly state the fee and due date,

Not guarantee results,

Specify the date of full performance

Provide a refund policy if services aren‟t performed,

A full refund needs to be made to the client if the advance fee services contracted for are

not substantially or materially provided.

Furnish client with an accounting of the use of the money within 3 months of the

charge. (The Division may also require proof of this.)

Not publish information without prior approval from the owner,

Not include additional charges.


NRS 645.002 "Advance fee" defined. "Advance fee" means a fee contracted for, claimed, demanded, charged,

received or collected for an advance fee listing, advertisement or offer to sell or lease property, issued for the

purpose of promoting the sale or lease of a business or real estate or for referral to a business or real estate brokers or

salesmen, or both, before the last printing or other last issuance thereof, other than by a newspaper of general

circulation.

NRS 645 and NAC 645


NRS 645.323 License required for acceptance of advance fee listing. A person shall not accept an advance fee

listing unless he is licensed as a real estate broker, broker-salesman or salesman pursuant to this chapter.

NRS 645.004 "Advance fee listing" defined. (Note: A listing to sell an advance fee)

1. "Advance fee listing" includes, but is not limited to:

(a) The name or a list of the names of the owners, landlords, exchangers or lessors, or the location of property or a

business, or of an interest therein, offered for rent, sale, lease or exchange.

(b) The name, or a list of the names, or the location at which prospective or potential purchasers, buyers, lessees,

tenants or exchangers of property may be communicated with or found.

(c) A brokerage agreement by which a person who is engaged in the business of promoting the sale or lease of

businesses or real estate agrees to render to an owner or lessee of the property any services, to promote the sale or

lease of the property, for an advance fee.

(d) A brokerage agreement by which a person agrees to locate or promote the sale or lease of a business or real estate

for an advance fee.

2. The term does not include publications intended for general circulation.

(Note: An example of general circulation is classified advertising in the newspaper and magazines that can be

picked up free at the door of your local grocery store They are exempt from getting a license to collect a fee.)

NAC 645.675 Agreements for advance fees: General requirements.

1. Each agreement for an advance fee used in Nevada must:

(a) Be in writing;

(b) Contain a definite and complete description of the services to be rendered;

(c) Specify the total amount of the fee involved and clearly state when the fee is due;

(d) Not imply or purport to guarantee that the real property involved will be purchased, sold, rented, leased or

exchanged as a result of the services rendered;

(e) Specify the date of full performance of the services contracted for;

(f) Not imply or purport to represent to purchasers and prospective purchasers of the advertising or promotional

services offered that a buyer for the property is immediately or soon available; and

(g) Provide that a full refund will be made to the customer if the services for which the advance fee is being received

are not substantially or materially provided to the customer.

2. Any oral representation or promise made to a purchaser or a prospective purchaser of the advertising and

promotional services offered pursuant to an agreement for an advance fee to induce the purchaser or prospective

purchaser of the services to sign the agreement is incorporated into the agreement. The agreement must not relieve or

exempt the vendor of the services from any oral representation or promise incorporated into the agreement.

NRS 645.322 Accounting of use of advance fee charged or collected; division may demand accounting. Any

person or entity who charges or collects an advance fee shall, within 3 months after the charge or collection,

furnish to his client an accounting of the use of that money. The real estate division may also demand an

accounting by such person or entity of advance fees so collected.

NAC 645.678 Agreements for advance fees for rentals. A broker operating an agency which lists rentals for an

advance fee shall:

1. Not publish, advertise or distribute information concerning a rental without first receiving approval from the

owner of the rental.

2. Provide for full refunds to customers if the services for which payment was received was substantially or

materially not received by the customer.

3. Inform each customer in writing of the term for which the rental service is to be provided.

4. Make no additional charge for services rendered during the period for which the services were initially purchased.

NRS 645 and NAC 645


Advertising Summary:

A licensee may not use his/her name and phone number in an advertisement containing the

words „for sale/lease by owner‟ or similar, but can use his/her name and phone number in an

advertisement that displays ownership and discloses license status.

A licensee may not advertise a specific property for sale without the written consent of the

listing broker who owns the listing and the listing broker cannot refuse giving written consent

without consulting the owner.

Licensees cannot advertise using a nickname instead of the name on the licensee‟s license.

A licensee hanging with a franchise firm must make reference to the company name in

addition to the franchise name and must also include, “each office is independently owned

and operated” in an advertisement.

Advertising can be solicited or unsolicited and in writing, oral or on computer.

A client clicking a box in an email cannot create an agency relationship.

“Appropriate signature” means the legal signature of the client, which may consist of names,

words, symbols, marks, encrypted signatures and electronic signatures.

Licensees can advertise using the terms “team” and “group” if certain rules are followed.

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