NAC645.605. Considerations in determining certain misconduct by licensee.

In determining whether a licensee has been guilty of gross negligence or incompetence under paragraph (h) of subsection 1 of NRS 645.633 or conduct which constitutes deceitful, fraudulent or dishonest dealing under paragraph (i) of that subsection, the Commission will consider, among other things, whether the licensee:

     1. Has done his or her utmost to protect the public against fraud, misrepresentation or unethical practices related to real estate or time shares.

     2. Has ascertained all pertinent facts concerning any time share or property for which the licensee accepts an agency.

     3. Has attempted to provide specialized professional services concerning a type of property or service that is outside the licensee’s field of experience or competence without the assistance of a qualified authority unless the facts of such lack of experience or competence are fully disclosed to his or her client.

     4. Has disclosed, in writing, his or her interest or contemplated interest in any property or time share with which the licensee is dealing. The disclosure must include, but is not limited to, a statement of:

     (a) Whether the licensee expects to receive any direct or indirect compensation, dividend or profit from any person or company that will perform services related to the property and, if so, the identity of the person or company;

     (b) The licensee’s affiliation with or financial interest in any person or company that furnishes services related to the property;

     (c) If the licensee is managing the property, his or her interest in or financial arrangement with any person or company that provides maintenance or other services to the property;

     (d) If the licensee refers one of his or her clients or customers to another person or company, such as a contractor, title company, attorney, engineer or mortgage banker, the licensee’s expectation of a referral fee from that person or company; and

     (e) If the licensee receives compensation from more than one party in a real estate transaction, full disclosure to and consent from each party to the real estate transaction. A licensee shall not accept compensation from more than one party in a real estate transaction, even if otherwise permitted by law, without full disclosure to all parties.

     5. Has kept informed of current statutes and regulations governing real estate, time shares and related fields in which he or she attempts to provide guidance.

     6. Has breached his or her obligation of absolute fidelity to his or her principal’s interest or his or her obligation to deal fairly with all parties to a real estate transaction.

     7. Has ensured that each agreement for the sale, lease or management of property or time shares is contained in a written agreement that has been signed by all parties and that his or her real estate broker and each party to the real estate transaction has a copy of the written agreement.

     8. Has obtained all changes of contractual terms in writing and whether such changes are signed or initialed by the parties concerned.

     9. Understands and properly applies federal and state statutes relating to the protection of consumers.

     10. Has acquired knowledge of all material facts that are reasonably ascertainable and are of customary or express concern and has conveyed that knowledge to the parties to the real estate transaction.

     11. Has impeded or attempted to impede any investigation of the Division by:

     (a) Failing to comply or delaying his or her compliance with a request by the Division to provide documents;

     (b) Failing to supply a written response, including supporting documentation, if available;

     (c) Supplying false information to an investigator, auditor or any other officer of the Division;

     (d) Providing false, forged or altered documents; or

     (e) Attempting to conceal any documents or facts relating to a real estate transaction.

     (Added to NAC by Real Estate Comm’n, eff. 8-21-81; A 8-26-83; 4-27-84; 6-3-86; A by Real Estate Div., 3-31-94; 3-1-96; A by Real Estate Comm’n by R111-01, 12-17-2001; R031-04, 11-30-2004)