Real Estate Office Management | NevadaCE.com

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.

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.

I’m a Nevada real estate salesperson. Does the Nevada Real Estate Division require me to maintain any real estate transaction documents or is that solely the responsibility of the broker?

Steven Kitnick — Thu, 04 Jul 2019 16:38:48 +0000

According to Jan Holle, Chief Compliance/Audit Investigator for the Nevada Real Estate Division, salespeople and broker salespeople are required to submit transaction documents within the required time frame to their broker that will ultimately make up the broker’s official transaction file that must be held and maintained by the broker for the required time frame. Some salespeople and broker salespeople will keep their own files, however, there is no requirement for salespeople or broker salespeople to maintain transaction documents.

For further information about Audits and Inspections, Transaction Files, and Time Requirements for Record Keeping – see pp. 17-21, inclusive, of the 54-page Trust Fund Accounting and Record Keeping for Nevada Brokers ~ CLICK HERE!

Which documents does the Nevada Real Estate Division require a broker to maintain in every residential transaction files?

Steven Kitnick — Thu, 04 Jul 2019 16:07:45 +0000

You’ll find your answer on page 20 of 54 in the reference manual published by the Education Section of the Nevada Real Estate Division. Click on: TRUST FUND ACCOUNTING AND RECORD KEEPING FOR NEVADA BROKERS.

Is a Broker Required to Have a “hard copy” of NRS 645 & NAC 645 in their Office?

Steven Kitnick — Sat, 02 Dec 2017 18:19:48 +0000

I was recently asked whether I was aware of any legal authority that required a real estate broker to have a “hard copy” of NRS 645 and/or NAC 645, along with any other pertinent and relevant NRS / NAC chapters in their real estate office. I contacted Mr. Jan R. Holle, Chief Compliance/Audit Investigator, Nevada Real Estate Division, who referenced NAC 645.600 Responsibilities of broker regarding associated licensees, employees, and operation of business. “The broker is required to establish policies, procedures, etc. to allow them to oversee and manage the licensees’ understanding with the applicable real estate law, but there is no provision here [NAC 645.600] or anywhere requiring brokers to have hard copies of the statutes available. That’s what the Internet is for.”

Visit the NRED link to Real Estate & CIC Statutes and Regulations

Can an agent send out holiday cards to past clients offering money to them if they refer a prospect to the agent?

Steven Kitnick — Sat, 23 Sep 2017 19:50:21 +0000

According to Nevada Real Estate Division Chief Compliance/Audit Investigator Jan Holle, “As long as payment is not contingent on the referral closing a transaction, then it would be okay. Agents pay for leads all the time… Zillow, etc.”

Note: Paying an unlicensed person a referral fee or commission [my bold] would be in violation of Nevada law.

NRS 645.280 Association with or compensation of unlicensed broker, broker-salesperson or salesperson unlawful; payment of commission other than through broker or owner-developer unlawful.
1. It is unlawful for any licensed real estate broker, or broker-salesperson or salesperson to offer, promise, allow, give or pay, directly or indirectly, any part or share of his or her 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-salesperson or salesperson, 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-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.
3. It is unlawful for any licensed real estate broker-salesperson or salesperson to pay a commission to any person except through the broker or owner-developer under whom he or she is licensed at the time of the real estate transaction.

Is a Licensee Who is Solely a Referring Agent Required to Complete a Duties Owed Form

Steven Kitnick — Thu, 31 Aug 2017 14:35:09 +0000

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.