Nevada Real Estate Division Complaints
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1 Nevada Real Estate Division Complaints CE RE * 3 Hours * Broker Management Forrest L. Barbee The Current Commissioners RICHARD JOHNSON Vice President Washoe County SHERRIE CARTINELLA Commissioner Washoe County DAVID BOYER President Clark County NEIL SCHWARTZ Commissioner Clark County NORMA JEAN OPATIK Secretary Nye County 11/01/ /12/ /01/ /12/ /29/2013 Term Expires 10/31/2015 Term Expires 10/31/2016 Term Expires 10/31/2014 Term Expires 10/31/2016 Expires 10/31/2015 How Complaints are Filed Statement of Fact, Form 514 Request for Record of Complaints, Form 638 Division vs local REALTOR Board Complaints 1
2 The Complaint Process Complaint submitted to NRED Compliance Staff The Complaint Process The Investigation phase The Complaint Process The role of the Broker Broker s Response to Complaints Broker s Attendance at Hearings NAC Attendance of certain brokers required at disciplinary hearing. (NRS ) If a person licensed as a real estate salesperson or real estate broker salesperson is accused of violating any provision of this chapter or chapter 645 of NRS, the broker of record with whom the person licensed as a real estate salesperson or real estate broker salesperson at the time of the alleged violation and the broker with whom the person licensed as a real estate salesperson or real estate brokersalesperson is shall attend any disciplinary hearing before the Commission concerning that licensee. 2
3 The Complaint Process The role of the Attorney General s office Civil and Criminal actions Steven Grimm Brett Depue Real Estate Education, Research and Recovery Fund Relief Nevada Real Estate Division Compliance Outcomes Administrative Fines Summary Suspensions Stipulated Settlements Full Commission Hearing Referring to other authorities 3
4 13. Broker Salespersons / Salespersons conducting real estate activity outside the brokerage and receiving compensation directly from clients or associates (NRS ; NRS ). 12. Failure to provide a written notice of offer rejection. (NAC ) 1. If a licensee represents a seller in a transaction, and if the seller does not accept an offer within a reasonable time after an offer has been presented to the seller, the licensee shall provide to the buyer or the representative of the buyer written notice signed by the seller which informs the buyer that the offer has not been accepted by the seller. 2. If a licensee represents a buyer in a transaction, and if the buyer does not accept a counteroffer within a reasonable time after a counteroffer has been presented to the buyer, the licensee shall provide to the seller or the representative of the seller written notice signed by the buyer which informs the seller that the counteroffer has not been accepted by the buyer. 11. Failing to report a conviction or guilty plea to the Division (NRS ). 1. A licensee, property manager or owner developer shall notify the Division in writing if he or she is convicted of, or enters a plea of guilty, guilty but mentally ill or nolo contendere to: (a) A felony relating to the practice of the licensee, property manager or owner developer; or (b) Any crime involving fraud, deceit, misrepresentation or moral turpitude. 2. A licensee, property manager or owner developer shall submit the notification required by subsection 1: (a) Not more than 10 days after the conviction or entry of the plea of guilty, guilty but mentally ill or nolo contendere; and (b) When submitting an application to renew a license, permit or registration issued pursuant to this chapter. 4
5 10. Failure to disclose status as a real estate licensee when licensee has an interest in the transaction (NRS ; NAC ). In each real estate transaction involving a licensee, as agent or principal, the licensee shall clearly disclose, in writing, to his or her client and to any party not represented by a licensee, the relationship of the licensee as the agent of his or her client or the status of the licensee as a principal. The disclosure must be made as soon as practicable, but not later than the date and time on which any written document is signed by the client or any party not represented by a licensee, or both. 9. Failure to submit offers including licensees holding offers in order to submit a more desirable offer or an offer where the licensee can represent both sides of the transaction (NRS ). This is also an NAR Code of Ethics Violation Article 1 SoP 1 6: REALTORS shall submit offers and counter offers objectively and as quickly as possible. 5
6 8. Unlicensed real estate activity including those without the appropriate Nevada licensure and out of state licensees (NRS ; NRS ) Side Note: Acting as a General Contractor without a license (NRS ) 7. Unlicensed property management activity (NRS ). Division Information Bulletin #012, PM Information Bulletin Division Information Bulletin #010, Unlicensed Assistant / Virtual Assistants. 6. Mismanagement of property by property managers (NRS ). 6
7 5. Trust account embezzlement and commingling (Trust Fund Accounting manual). Almost $2,000,000 Missing from Trust Accounts Commingling A Disaster Waiting to Happen A Recent Commission Case Turnberry Embezzlement 4. Managers failing to account for or remit funds (Trust Fund Accounting manual; NRS 118A ). 3. Trust account reconciliations submitted by brokers indicating suspicious, questionable or non compliant handling of monies belonging to others. Form 546 7
8 2. Brokers failing to submit their Trust Account Reconciliations Form 546 In Lieu of Form 546A 1. Licensees not submitting their midpoint education or submitting midpoint education late. (NRS ). Additional False information in Marketing Materials; e.g., not disclosing that the property is in foreclosure. 8
9 Additional Failure to exercise reasonable skill and care Passive misrepresentation Failure to respond to other agents False promises Working outside one s level of expertise Sign Out Please Sign Out and Turn In Your Evaluations 9
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