Real estate professionals in Nevada work in a variety of industries. There's the buying and selling of property, as well as inspecting and valuing it. Then there are those who don't own the property but help the owners manage it. These real estate professionals exist across the state, from Las Vegas to Carson City to Reno.
No matter where you practice or what you do in the real estate industry, if someone believes you've run afoul of your professional or legal duties, you could face a disciplinary process that risks your real estate license and livelihood. If this happens, you must contact the Professional License Defense Team from the Lento Law Firm. The longer you wait to reach out to us, the harder it will be for us to help you. Call us at 888-535-3686 or use our online contact form to schedule a consultation.
Nevada's Real Estate Licensing Authority
The Nevada Real Estate Division regulates licensed real estate professionals in Nevada. They do this by carrying out several tasks, including licensure, professional education, registration, and enforcement. This mandate exists to protect the general public from unethical, unprofessional, and unlawful conduct. Should such conduct occur, the Nevada Real Estate Division will investigate the allegations and impose discipline. The most common types of real estate professionals subject to the Nevada Real Estate Division's jurisdiction are:
- Real estate brokers and salespersons
- Real estate appraisers
- Structural inspectors
- Asset managers
Each group of professionals is subject to its own set of state statutes and regulations. The statutes establish the legal requirements for a given real estate practice while the regulations provide specificity to the Nevada Real Estate Division and the courts on how to interpret and enforce those laws.
Types of Prohibited Conduct That Could Lead To Discipline
Regardless of the type of real estate professional, there are similar prohibitions on certain types of behavior. These usually revolve around fraud, dishonesty, and unfairness. That being said, here are some of the more specific types of behavior that could result in disciplinary for each respective group of real estate professionals.
Real Estate Brokers and Salespersons
- Dealing with any party in a real estate transaction in a dishonest, deceitful, or fraudulent manner.
- Discriminating (based on race, religion, color, national origin, disability, sexual orientation, gender identity, ancestry, familial status, or sex) against anyone by denying them the opportunity to take part in a real estate transaction or participate in other services relating to a real estate transaction.
- Obtaining or attempting to obtain a real estate license through fraud, deceit, or misrepresentation.
- Selling or attempting to sell an interest in real property through deceit, misrepresentation, or fraud.
- Failing to report certain criminal convictions to the Nevada Real Estate Division within 10 days (or when applying for a license). These convictions include: any felony relating to the licensee's professional practice, any crime involving deceit, fraud, misrepresentation, or crime of moral turpitude.
- Failing to properly supervise certain employees.
Real Estate Appraisers
- Conducting an appraisal without the proper level of independence.
- Using fraud, deceit, or misrepresentation to obtain (or try to obtain) an appraisal certificate, license, or registration card.
- Holding oneself out as a licensed or certified appraiser without first obtaining the required license, certificate, or permit.
- Not practicing with the required level of professionalism or competence.
- Being convicted of any felony involving moral turpitude or relating to the appraisal practice.
- Having a license, certificate, or other appraisal credential suspended or revoked in another state.
Some of the prohibited conduct applies to individuals working for an appraisal management company. This company may not:
- Knowingly providing false information to the Nevada Commission of Appraisers of Real Estate when applying for an appraisal registration.
- Knowingly withhold or suppress information from the Nevada Commission of Appraisers of Real Estate when applying for an appraisal registration and that information would have made the applicant ineligible for registration.
- Trying to influence the outcome of an appraisal through the use of coercion, extortion, collusion, compensation, intimidation, inducement, or bribery.
- Using other methods of improperly trying to affect the outcome of an appraisal, such as withholding or threatening to withhold payment for the appraisal; withholding or threatening to withhold future business of an independent appraiser; ending a contract with an independent contractor without prior written notice; promising an independent contractor future business or higher pay; making a payment to an independent contractor on the condition that the contractor reaches a certain conclusion with the appraisal; asking the independent contractor to provide a desired valuation for the appraisal before the appraisal has been completed; and engaging in any other act that compromises or attempts to compromise the appraiser's impartiality and independence.
Structural Inspectors
- Practicing or attempting to practice as a licensed or certified inspector without first obtaining the required license or certification.
- Using the terms “licensed,” “registered,” “certified,” or any other words that imply a professional designation without first having obtained the relevant designation or credential.
- Assisting anyone else who is practicing or attempting to practice as a licensed or certified inspector without first obtaining the required license or certification.
- Using fraud, deceit, or misrepresentation to obtain (or try to obtain) a structural inspector certificate or license.
- Offering any service that's unlawful, including a service that requires a credential that the inspector lacks.
- Providing any guarantees or warranties.
- Calculating the efficiency, adequacy, or strength of any structural system or component.
- Entering an area or completing an inspection that may damage the structure or endanger others (including the inspector).
- Attempting to operate any system that's been shut down, is inoperable, or doesn't operate properly.
- Reaching a conclusion concerning the existence or lack of any adverse environmental hazard or condition, such as mold, radon, and toxins without the appropriate license or certification.
- Determining the adequacy of any system used to remove hazardous substances.
- Predicting the future condition of any component or system.
- Projecting the operating costs of any component or system.
- Repairing a defect observed during an inspection.
Asset Managers
- Conducting business as an asset manager without first obtaining the required permit.
- Evicting a real property owner or tenant before the foreclosure redemption period has passed (unless otherwise acting in accordance with a court order).
- Improperly disposing of a tenant or homeowner's personal property.
- Seizing real property for a client when it's not in foreclosure.
- Completing any repairs, maintenance, or renovations to property in foreclosure without the proper licenses or permits.
- Failing to provide proper disclosures to a buyer of a foreclosed home.
- Managing or collecting money that belongs to another person unless there's a property management agreement in effect that outlines this process.
- Performing or offering to perform any unlawful act, including any service that requires a license, certification, or other professional credential that the asset manager lacks.
- Offering any guarantees or warranties.
- Receiving any form of compensation from more than one interested party for the same service on the same real property.
The Real Estate Disciplinary Process in Nevada
The disciplinary process usually begins with someone filing a complaint with the Nevada Real Estate Division. After conducting its own investigation, the Nevada Real Estate Division will decide if disciplinary action is necessary. If so, the Real Estate Administrator will initiate a formal complaint and schedule a hearing.
In the case of real estate brokers and salespersons, as well as appraisers, the Real Estate Administrator must hold the hearing within 90 days of the filing of the complaint, although the licensee may delay the date of the hearing if they provide good cause. The licensee must also have at least 30 days written notice of the hearing, as well as receive copies of the complaint and information relevant to the complaint.
Within 30 days of receiving written notice of the complaint and hearing, the licensee must file an answer to the complaint. This answer consists of admissions or denials of each allegation in the complaint and any defenses of the real estate professional.
No record will be made of the hearing unless requested by a party to the action. The creation of a record is necessary if the licensee wants to appeal any adverse decision from the hearing. After the hearing, the Real Estate Commission (the five-member panel appointed by the Nevada Governor that conducts the disciplinary proceedings) will issue an informal decision within 15 days. A final written decision arrives within 60 days of the hearing.
After the hearing, if the licensee disagrees with the outcome, they may file an appeal by asking for judicial review by the district court. If the ruling is in favor of the licensee, then the state may not seek judicial review. This right to appeal an adverse ruling against the licensee only applies to real estate brokers and salespersons.
In some cases, there will be an informal conference before the main hearing. The informal conference only occurs if an advisory committee is formed to advise the Real Estate Administrator on the disciplinary action. Potential witnesses and the licensee will be given notice of this informal conference and may attend. One of the goals of this conference is to rule on the admissibility of certain evidence and provide an advisory report to the Real Estate Administrator.
The hearing process for structural inspectors and asset managers is similar, with a few differences. One difference is that there's only at least 20 days written notice of the hearing. Another difference is that the decision must come within 30 days of the hearing. The last major difference is that the Nevada Real Estate Division may schedule an informal meeting instead of a hearing. It may do this if it believes the disciplinary action can be settled without a hearing or that the formalities of a hearing aren't necessary for a particular case.
Potential Punishments for Real Estate Professionals
Violations of Nevada law may result in criminal prosecution. A conviction could lead to fines and a misdemeanor or felony conviction. However, regardless of whether criminal charges are brought or a conviction is obtained, the Nevada Real Estate Division and Commission of Appraisers of Real Estate reserve the right to impose their own administrative civil sanctions on real estate professionals they believe have breached their professional obligations and duties. Some of these sanctions include:
- Administrative fines
- License, certificate, or registration card suspension
- License, certificate, or registration card revocation
- Refusal to renew an expiring license, certificate, or registration card.
- Place limitations or conditions on the license, certificate, or registration card.
The severity of the sanctions will depend on the specific facts of each case. For example, in the case of structural inspectors, any administrative fine imposed on them will be the greater of $5,000 or the financial benefit the structural inspector received as a result of their wrongdoing. When deciding on the administrative fine, the Real Estate Administrator may consider:
- The amount and nature of the economic gain;
- The severity of the violation, including the amount of harm to others;
- Any prior history of professional misconduct; and
- Any other relevant facts and circumstances.
Using another example, the first time a real estate broker unlawfully discriminates, they may be subject to a $500 administrative fine. However, if it happens a second time, the Nevada Real Estate Commission may revoke the real estate broker's license unless the real estate broker can provide reasons as to why this sanction isn't warranted. In other words, if a real estate broker or salesperson is accused a second time of unlawful discrimination, the burden is on them to prove why they should keep their license.
Contact the Nevada Professional License Defense Team
Learning about a complaint or potential disciplinary action by the Nevada Real Estate Division is something you must take seriously. You need to understand that while the Nevada Real Estate Division wants to do what's right and what's fair, its primary mission is to protect the general public and the integrity of the real estate industry. Therefore, if you're facing the prospect of disciplinary action, contact the Professional License Defense Team immediately. Our legal professionals will act quickly to protect your legal and professional interests. Schedule a consultation by calling 888-535-3686 or submitting our online contact form.
