Old habits are hard to break.  Education may help. Let’s examine the issue.  Some property managers continue to do things the same old way. Uninformed property managers are still requesting and requiring a licensee, who is simply acting as a referring agent, to provide them with a Duties Owed form signed & dated by the tenant, in order to be paid the referral fee offered through the Multiple Listing Service (“MLS”).  This archaic practice has been deemed by the Nevada Real Estate Division (“NRED”) to be improper in most cases.  According to the NRED, the Duties Owed form should only be used when the licensee represents a party to a specific transaction.  However, in practically every case, the licensee who procures the tenant for the property manager is not representing the tenant in the rental agreement transaction.  They are merely showing rental properties and then acting as a referring agent once the consumer finds a suitable rental property. The referring agent then turns the consumer over to the property manager, who then takes over and completes all the necessary paperwork in the transaction.  In virtually every case, the property manager represents the landlord only and the tenant is “unrepresented.”  Thus, a Consent to Act form is not required. If the licensee is going to “represent” the tenant and intends to fulfill all the duties that would be owed to the tenant/client in the rental property transaction then a Duties Owed form would be required.  Danger lies in executing a Duties Owed form when the licensee does not “represent” the tenant and does not fulfill the Duties Owed to that client.  It is improper to use the Duties Owed form simply to establish “procuring case” for the referral fee.  Keep in mind, an executed Duties Owed gives the impression the licensee is representing the tenant and could open the licensee to unnecessary risks.  Finally, when a licensee is simply the referring agent the only paperwork the property manager should require is the licensee’s company IRS W-9 Form.  Some may also want a referral agreement signed while others may rely solely upon the “MLS” printout that offered the referral fee.  I recommend you read the Nevada Real Estate Division’s Analysis of the Issue and Advisory Conclusion.  If a property manager persists in asking you to provide a Duties Owed Form in order to get paid, forward them a copy of the NRED’s Advisory Opinion 15-01 dated April 29th, 2015.  If they continue to insist on a Duties Owed form, tell them they leave you no other choice than to file a complaint at the Association for failing to honor the referral fee offered.  It may take some time before old habits are broken and property managers do business in a new and proper way.  .

Source Material:  www.red.nv.gov   ~ Publications ~ Real Estate Division Advisory Opinions Chapter 645 No. 15-01 Duties Owed Forms for Referring Licensees
dated April 29th, 2015. 

 

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