You Be the Commissioner.pptxYou Be the Commissioner.pptx

“YOU BE THE COMMISSIONER”
written By Joseph R. Fitzpatrick
CE #5955001-RE
3 Hours of Law and Legislation
approved by the Nevada Real Estate Division on behalf of the Commission

Housekeeping
• No phones or texting during the class.
• Please make sure that you sign in.
• Restrooms
• Direct attention to instructor.
• Refrain from distracting activities.
• Breaks
• Instructor Evaluations
• Attendance sign out
• Certificates of Completion
Copyright 2013 Real Estate School of Nevada, Inc. All Rights Reserved.
2

INTRODUCTION
• We have identified some of the most relevant laws and
statutes from NRS and NAC 645 as they pertain to the
practicing, Nevada, real estate licensee, and built them
into three case studies.
• Students will go through each case study, led by the
instructor, and identify the specific laws that were violated
by referring to the statutes and regulations included in the
handouts.
© Copyright 2021, Real Estate School of Nevada. All rights reserved. 3

Case Study #1
• Agent Harrison met Mr. and Mrs. Thomas at an open house he was conducting on
his team member’s listing. The “Champions Realty Group” yard sign was proudly
displayed and generated a lot of traffic through the open house. Mr. and Mrs.
Thomas were quite interested in the home, and Harrison thought he might have a
chance at a sale. Harrison knew of a prior flooding that resulted in mold and other
damage but chose not to discuss it with the Thomases so as to not scare them
off. Mr. and Mrs. Thomas asked the agent if he knew what price the sellers would
accept to which he replied, “They are on the market for $249,900, but I am fairly
sure they would take $240,000.” The couple proceeded to write an offer with
Harrison for $240,000 which did not include an earnest money deposit. The
sellers accepted the offer and Harrison opened escrow the following morning.
• The house is in a common interest community, but Harrison did not provide the
buyers with the “Did You Know?” form. The Thomases were satisfied with the
home inspection report and were approved for their FHA financing.
• On the day of closing, Harrison turned in his paperwork to his broker’s transaction
coordinator to be paid on time. While seated with the Thomases at closing,
Harrison asked the couple to sign for receipt of the Seller’s Real Property
Disclosure Statement and the Duties Owed. The Thomases were very
appreciative that Agent Harrison saved them $10,000 and gave him a personal
check in the amount of $500 to reward him for his efforts.

CASE STUDY #1:
• “Agent Harrison met Mr. and Mrs. Thomas at an open
house he was conducting on his team member’s listing…”
• You be the Commissioner!
• Discuss with the other commissioner's potential
violations of the real estate licensing laws.
• What specific statutes or regulations may have been
violated?
• What sanctions could be imposed?

CASE STUDY #1:
• Advertising as a team NAC 645.611
• Disclosure of material facts NRS 645.252,.254
• Earnest money is not required ---
• Confidential Information NRS 645.254
• Submitting paperwork to broker NAC 645.650
• Consent to Act
• Did You Know?
• Compensation from someone
other than the broker NRS 645.630 1(c)
• Negligent/incompetent dealings NAC 645.605
• Delivery of SRPD at least
10 days prior to closing NRS 113.130

CASE STUDY #1:
• The Commission may require a licensee, property
manager or owner-developer to pay an administrative fine
of not more than $10,000 for each violation he or she
commits or suspend, revoke, deny the renewal of or place
conditions upon his or her license, permit or registration,
or impose any combination of those actions…

Case Study #2
• Susan is a broker-salesperson for ERA Brownstone Realty. She
currently has a listing on Maple Avenue that is getting a lot of activity.
Susan, herself, is working with a married couple who is interested in
making an offer. Donna, from Gemstone Realty, emailed Susan an
offer, along with her Duties Owed and prequalification letter. Thinking
she might be writing an offer with her own clients; Susan holds off on
presenting Donna’s offer.
• Susan’s buyers do submit an offer which the sellers accept. Susan
also presents the offer from Donna’s buyers which the sellers ignore.
Susan informs Donna by email that her buyers’ offer was rejected.
• Upon a complaint filed by Donna’s clients, the chief investigator of the
Division appeared at Susan’s office and asked to see the transaction
records. The broker informed the investigator that he did not have
paperwork for the transaction as of yet. Donna’s clients alleged that
Susan violated her duty of absolute fidelity by not presenting the offer

CASE STUDY #2:
• “Susan is a broker-salesperson for ERA Brownstone
Realty. She currently has a listing on Maple Avenue that
is getting a lot of activity…”
• Discuss with the other commissioner's potential
violated?

CASE STUDY #2:
• Present all offers as soon NRS 645.254 (4),
as practicable NAC 645.630
• Written notice of rejection of offer NAC 645.632
• Maintenance of records NAC 645.655,
NAC 645.650
• Salesperson’s duty to
submit paperwork NAC 645.650
• Absolute fidelity NAC 645.605 (6)
• Failure to submit an offer NRS 645.645 (8)

CASE STUDY #2:

Case Study #3
• Albert is a Nevada real estate salesperson helping his brother to find a house in
Henderson. The brothers have looked at several properties and made a couple of offers but
keep getting beat out by other buyers as it is a multiple-offer environment. Albert shows his
brother a house Albert just listed and tells the brother the seller would be willing to take an
offer at $3,000 below list price. Although Albert presses his sibling to write offer
immediately, the brother informs him he needs a day to discuss it with his fiancée and allow
her an opportunity to see the house.
• Meanwhile, Albert receives an email from salesperson Jackie with a full-price offer and
prequalification letter on the listing. Albert holds off on contacting his seller client until he
hears back from his brother. The following day, after the brother and his fiancée have had
the opportunity to see the house and discuss, they ask Albert to write an offer. He writes an
offer to list price with the seller paying $3,000 towards the buyer’s closing costs. That
evening, he meets with the sellers to present his brother’s offer which the sellers accept
without any counteroffer. Jackie’s offer is not presented to the seller.
• Upon signatures on the purchase agreement, Albert delivers to both parties a Duties Owed
form disclosing he is a Nevada real estate licensee representing the buyer, a copy of the
SRPD signed by both parties, copies of each party’s brokerage agreements, along with the
fully executed RPA.
• The day before closing, Albert conducts a walk-through inspection with his brother and
fiancée. The seller is also present for the inspection. Albert’s seller client pulls him aside
and whispers, “the heating system is not presently working, but please don’t say anything.”

CASE STUDY #3:
• “Albert is a Nevada real estate salesperson helping his
brother to find a house in Henderson. The brothers have
looked at several properties and made a couple of offers,
but keep getting beat out by other buyers as it is a
multiple-offer environment…”
• Discuss with the other commissioners' potential
violated?

CASE STUDY #3:
• Negligent, incompetent dealings NAC 645.605
• Present all offers as soon NRS 645.254 (4),
as practicable NAC 645.630
• Absolute fidelity NAC 645.605 (6)
• Failure to submit an offer NRS 645.645 (8)
• Interest in a principal NRS 645.252 1(c),
NAC 645.640 1(a)
• Consent to Act NRS 645.252 1(d)
• Confidential information NRS 645.252 1(d)3
NRS 645.254 (2)
• Disclosure of material facts NRS 645.252, .254
• Delivery of brokerage agreements NRS 645.300
• Representing a price not authorized NRS 645.635 (1)

CASE STUDY #3:

TIME PERMITTING…
• Other NRS and NAC 645 statutes and provisions not
discussed in the case studies…

End-of-Course Quiz
• You are now ready to take the Quiz!!

End-of-Course Quiz
1. Smith, Johnson, and Kinson formed a real estate team.
Which of the following would be ab acceptable team name for
the group to advertise?
a. Century 2-1 Kinson Team
b. The Smith Real Estate Team
c. Realty Pros
d. The SJK Team

End-of-Course Quiz
2. A licensee who has knowledge of a material fact, must:
a. Disclose the material fact to his client only.
b. Disclose the material fact to all parties in the transaction.
c. Disclose the material fact on the SRPD.
d. None of the above

End-of-Course Quiz
3. The duty of confidentiality in a Nevada agency relationship
lasts:
a. Until the agency relationship is terminated.
b. For 6 months after termination of the agency.
c. For one year after termination of the agency.
d. Forever.

End-of-Course Quiz
4. A salesperson or broker-salesperson must submit all
transaction paperwork to the employing broker within:
a. One business day.
b. Three calendar days.
c. Five calendar days.
d. 10 days.

End-of-Course Quiz
5. A completed SRPD must be delivered to the buyer no later
than:
a. 4 days prior to the close of escrow.
b. 24 hours of acceptance.
c. The opening of escrow.
d. 10 days prior to closing.

End-of-Course Quiz
6. For each violation of the licensing law, the Commission may
impose an administrative fine for up to:
a. $500.
b. $5,000.
c. $10,000.
d. $25,000.

End-of-Course Quiz
7. Which of the following terms most closely resembles the
concept of fiduciary duties?
a. Absolute fidelity
b. Consent to act
c. Competency
d. Brokerage

End-of-Course Quiz
8. A broker must maintain records for inspection by the
Division for at least:
a. 3 years.
b. 5 years.
c. 7 years.
d. 10 years.

End-of-Course Quiz
9. A seller who knowingly fails to disclose a material fact could
be sued for:
a. Actual damages.
b. Treble damages.
c. Liquidated damages.
d. None of the above

End-of-Course Quiz
10. In addition to sanctioning an administrative fine, the
Commission may also take what disciplinary action against a
licensee?
a. Revocation
b. Suspension
c. Place conditions upon license
d. All the above

You Be the Commissioner.pptxYou Be the Commissioner.pptx

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