Nevada Real Estate Division | NevadaCE.com

What’s the Difference Between NRED Advisory Opinions, Informational Bulletins, & Position Statements?

Steven Kitnick — Mon, 17 May 2021 17:15:59 +0000

Advisory Opinions
Generated in response to a petition filed with the Division Administrator. Advisory opinions are intended to provide information concerning the applicability and to clarify potential confusion regarding specific statutory provisions, agency regulations or decisions of the agency.

Informational Bulletins
Published to address operational and technical issues and highlight best practices. These are not declaratory in nature but rather serve a clarifying/educational role in terms of the Division’s expectations concerning the law and regulation. Nevada’s real estate industry takes them to be directional in nature and rely on this clarifying guidance concerning their business practices and educational materials.

Position Statements
Regulatory positions of the Division, Division Administrator, and the Commission. Equivalent in scope and impact to Advisory Opinions. Usually prepared in consultation with the Nevada Attorney General’s Office and serves to clarify the standard that will be enforced. These position statements may encompass any area of law/regulation under the Division’s jurisdiction.

Source: Nevada Real Estate Division – Administrator
May 17th, 2021

Can a Nevada Real Estate Licensee Be Paid Their Commission Directly From Escrow?

Steven Kitnick — Sat, 26 Dec 2020 18:39:08 +0000

Let’s examine NRS 645.280(2) “A real estate broker-salesperson or salesperson shall not be associated with or accept compensation from any person other than the broker or owner-developer under whom he or she is licensed at the time of the real estate transaction.” However, I am aware that several real estate and escrow companies do provide for the direct payment of a real estate licensee’s commission upon written approval from the licensee’s broker. I can certainly understand why some brokers will not allow for the direct payment of their licensee’s commission due to the plain language contained in NRS 645.280(2) “….accept compensation from any person other than the broker or owner-developer under whom he or she is licensed at the time of the real estate transaction.”

Recently, this direct payment of licensee’s real estate commissions from escrow has become an important issue. I have received dozens of phone calls and emails from real estate licensees from a certain real estate company whose broker/owner is not paying his agents according to the terms and conditions of the Independent Contractor Agreement he entered into with his licensees.

I’ll address in a future post what can be done about this! In the meantime, could this be avoided if the broker gave written permission to the escrow company to pay his licensee’s directly from escrow at the close of escrow?

On December 24th, 2020 I emailed Mr. Jan Holle, Chief Compliance/Audit Investigator, Nevada Real Estate Division, a man dedicated in his position as an important public servant and who is always quick to reply to my queries. I was looking for an opinion that would confirm my understanding that a broker could authorize escrow to pay its licensees directly from escrow. Mr. Holle’s replies are in red.

1) Are you aware of any Nevada real estate laws and/or regulations that would preclude an escrow company from paying a real estate licensee’s
commission directly from escrow with the broker’s written permission? “No. there is nothing specific prohibiting this. I did run this same scenario by our legal counsel early last year due to another inquiry and the requirement in NRS 645.280(2). Our legal counsel‘s thoughts were as long as the broker was directing the agent’s commission to be paid in this manner that it would not be a violation of the statute. Our legal counsel viewed the intent of the statute was to prohibit someone other than the agent’s broker paying commissions to the agent. Whether it actually is the agent’s broker paying the commission or the agent’s broker directing the commission to be paid to the agent isn’t really an issue. The key point is that the agent’s broker is authorizing the payment to the agent. Of course there would be no proof of the broker authorizing the payment unless it was written.”

2) If it is allowable, must the total commission be shown on the commission instruction and/or closing statement that the money first went to the broker but then passed through to the licensee? “There is nothing in 645 about what amount is shown where. However, the documents should not misrepresent the amount of commission paid or who it was paid to. The broker can authorize payment as stated. Whether it is a check, direct deposit, or other I don’t think is an issue as long as it is not an attempt to evade any other local, state, and federal law.”

Disclaimer: I am not an attorney and thus cannot offer legal opinions or legal advice. Mr. Holle is not an attorney and you’ll note he cited NRED’s counsel on their thoughts pertaining to NRS 645.280(2).

Steve’s News Bulletin – Education, License & Permit Renewals, NRED Announcements

Steven Kitnick — Tue, 31 Mar 2020 00:26:26 +0000

Live instruction now includes method(s) of course delivery where the instructor and the students interact in real-time, either at the same physical location (classroom instruction is where the instructor is alive and the student is alive and both instructor and student are in the same classroom together) or through the use of digital technology. Put another way, live stream video conferencing is now considered to be “live classroom instruction.” It is not to be confused with online courses. Online courses are a form of “distance learning.”

Other delivery methods of distance education include:
• Internet: web-based content requiring the use of a computer and network browser. Sponsor provides student with a login to access the course material electronically.
• Correspondence: usually refers to a printed workbook being provided to the student and does not require the use of a PC/laptop or any other digital or electronic equipment.
• CBT or computer-based technology: this refers to written or pre-recorded course content provided on a CD or DVD which may be played back on a computer or DVD-player without the need to go online.• Video: this would include pre-recorded audio/visual instruction to be viewed using conventional VHS/VCR-type equipment.

Source: Real Estate Division Course Manual: A reference guide for real estate education providers on the requirements for education programs and the course application process.

The regulation that you must take at least half of your continuing education requirements in a live classroom setting still applies. However, digital technology delivery is now considered as live classroom instruction!

License Renewal Requirements
Real Estate Salesperson
Real Estate Broker-Salesperson
Real Estate Broker
Permit Renewal Requirements
Business Broker Permit
Property Manager

IMPORTANT ANNOUNCEMENTS
3/27/2020 NRED Post-Licensing & Continuing Education Guidance
3/23/2020 NRED NEW Guidance – Renewal Extensions
3/13/2020 Temporary Licensing Guidance in Response to COVID-19

Real Estate Division FAQ re: CE class extension, license renewal extension, new license applications, transferring brokerages, etc.

Steven Kitnick — Wed, 25 Mar 2020 19:24:49 +0000

I have been receiving numerous emails, texts, and phone calls regarding the recent Nevada Real Estate Division announcements. Here’s some answers to your questions.

1. Licensees renewing in March and April must still pay their renewal fees online in the month it is due. The licensee can request an extension for completing their CE classes until May 2020 using the form provided by NRED.

2. Any person who has passed RE exam and has all other requirements will not be able to process an application for a real estate license until the NRED is accepting snail mail or open their office for business.

3. Any licensee wishing to terminate from a brokerage and transfer to another brokerage will be unable to do so until the NRED is accepting snail mail or open their office for business.

4. A licensee may terminate from a brokerage and snail mail their termination to the NRED who will process the termination whenever the NRED resumes snail mail operations.

5. A broker may terminate a licensee from their brokerage and snail mail the termination to the NRED who will process the termination whenever the NRED resumes snail mail operations.

Source: Steven Kitnick & Jan O’Brien 03/24/2020

Can I be paid my commission from my previous broker after I move to a new broker?

Steven Kitnick — Thu, 05 Mar 2020 18:04:32 +0000

I asked Chief Compliance/Audit Investigator at the Nevada Real Estate Division Jan Holle to offer his opinion on whether a licensee may be paid commission owed to them by either their previous broker or their new broker. I also asked him to comment on brokers who have been difficult to deal with and in the worst cases have refused to pay.

Chief Holle replied, “It’s in statute NRS 645.280. They just need to be paid by their broker. If the transaction is not completed by the time they transfer to a new broker, then they could be paid by the old broker or by the old broker through the new broker. It’s not difficult or complicated.

I understand some brokers may be difficult in paying or refusing to pay, but that’s not an issue the Division has any authority. There’s no requirement in statute or regulation requiring the broker to pay anyone.

Source: March 5th, 2020 E-mail. Permission to Post was granted by Mr. Holle.

House Flipping in Las Vegas

Steven Kitnick — Sun, 19 Jan 2020 22:47:51 +0000

https://youtu.be/x1SX39KMECE

There are more cases of consumers going after these Real Estate Agents who are either part of the LLC or some type of the arrangement worked out with them. What the consumer needs to know is that it might be a buried on them because these people are just trying to make money, they are getting the work done cheaply or they are not getting licensed contractors when flipping the property. We recommend that you always do a home inspection and let that inspector be very thorough. But the only problem is that it excludes a lot of things and some buyer agents don’t want it to make too difficult on themselves and they are having clients waive roof and structural inspections.

Check out radio show website: https://lvrealestateradio.com/

Do I need 36 CE hours or 24 to renew my license in January 2020?

Steven Kitnick — Wed, 10 Jul 2019 04:21:19 +0000

24!
SB230 was effective July 1, 2019, however, “the Division anticipates the Commission will adopt regulations that prescribe the standards for the continuing education by December 2019.”

“If the Commission adopts regulations in December 2019, then by June 1, 2020, all of the licensees will be notified that the additional hours decided on by the Commission will be required as part of that licensee’s NEXT RENEWAL PERIOD. At minimum, licensees will have almost a year to be put on notice of these possible changes.”
[Note: The timelines are estimates and are subject to change.]

Sources: SB230 and Nevada Association of REALTORS® article entitled “Nicknames and Education – New Laws by Tiffany Banks, General Counsel – June 17, 2019.

What happens if I misplace my CE Certificate?

Steven Kitnick — Mon, 08 Jul 2019 19:36:03 +0000

If you misplace your CE certificate you must contact the school, the course sponsor, or the instructor who presented the course and request a duplicate certificate. The Division does not maintain copies of CE certificates.

We recommend you scan and save a copy of your CE certificates to a
CE folder on your electronic device. Regretfully, we have been forced to charge a minimal $10 service fee per certificate to prepare and email an attendee a new certificate.

Additionally, if you notice a mistake on your certificate (incorrect name spelling, license number, etc.), you must contact the school, the course sponsor, or the instructor who presented the course and request another certificate.

Is my education history as reflected on “My Account” on the Division’s website proof of completion of my education requirements?

Steven Kitnick — Sat, 06 Jul 2019 21:56:34 +0000

NO! The education history reflected on your My Account on the Division’s website is not proof of completion and should be used for reference ONLY! You are required to submit copies of your Continuing Education (CE) certificates to the Division upon renewal, regardless of whether you renew in person, online, or by mail. [see: NAC 645.313]

Source: Open House – A newsletter for Nevada Real Estate Licensees May/June/July/August 2019 – Education Corner – pp. 6

Is a broker required to submit an annual Nevada Real Estate Division Form 546A even if the broker does not provide property management services AND does not maintain a property management permit?

Steven Kitnick — Thu, 04 Jul 2019 18:14:46 +0000

According to Jan Holle, Chief Compliance/Audit Investigator for the Nevada Real Estate Division, “Yes. Every broker has to fill out either Form 546 or 546A. Technically, neither form has anything to do with property management or whether a broker has a permit or not. Which form to submit has everything to do with whether a broker is handling monies. Some brokers do property management and never handle any money. Therefore, that property manager would complete Form 546A. Some brokers handle client monies that are not rents or security deposits. That broker would be required to have a trust account and submit Form 546 every year.

The confusion for many brokers is that they assume that both forms are related to property management only. That would be a false assumption. Again, which form the broker is required to complete and submit every year is determined by whether or not the broker has handled any client monies during the past year.

I wrote an article on this subject for the last Open House Newsletter of 2018.
[see: September/October/November 2018 Open House Newsletter]

The minimum fine for not submitting Form 546 by the due date is $1,000.
The minimum fine for not submitting Form 546A by the due date is $250.00.