NAC645.913. General requirements; fees; background investigation.

     1. A licensee who wishes to obtain a permit must:

     (a) Submit to the Division:

          (1) A completed application on a form prescribed by the Division;

          (2) A fee of $40;

          (3) A fee of $75 for the examination required by paragraph (b); and

          (4) A certificate of completion, in a form satisfactory to the Division, indicating that the applicant has successfully completed the 24 hours of classroom instruction relating to business brokerage required by paragraph (a) of subsection 2 of NRS 645.863; and

     (b) Pass an examination which is prepared and administered by an organization designated by the Division, with a score of at least 75 percent. The examination must:

          (1) Include the subject matter presented in the hours of classroom instruction required pursuant to subsection 2; and

          (2) Consist of at least 50 multiple-choice questions.

     2. The 24 hours of classroom instruction relating to business brokerage required by paragraph (a) of subsection 2 of NRS 645.863 must include, without limitation:

     (a) Eight hours of instruction relating to financial statements, including, without limitation:

          (1) Income statements, balance sheets and cash flow statements;

          (2) Reformatting and recasting income statements and balance sheets; and

          (3) Terms and concepts used in financial statements;

     (b) Six hours of instruction relating to the valuation of a business, including, without limitation:

          (1) Business value and alternative purchase offers;

          (2) Cash equivalent value;

          (3) Business purchase price and seller carry-back notes;

          (4) Investment value and fair market value;

          (5) Determining the value of goodwill;

          (6) The significance of a business’s assets in creating market value;

          (7) The market value of a franchised business; and

          (8) The rules of thumb of business valuation;

     (c) Six hours of instruction relating to purchase offer and sale considerations, including, without limitation:

          (1) Structuring the transaction;

          (2) Describing the business;

          (3) Asset sales and stock sales;

          (4) Describing the tangible assets being acquired;

          (5) Describing the goodwill being acquired;

          (6) Including real property in the transaction;

          (7) Describing the assets included in the purchase;

          (8) Describing the assets excluded from the purchase;

          (9) Cash on hand;

          (10) Method and terms of payment;

          (11) Assumption by the buyer of liabilities of the seller;

          (12) Notification of creditors of the seller;

          (13) Method for the calculation of the purchase price of a business when the buyer of the business assumes the liabilities of the seller;

          (14) Adjustments at the close of escrow to the liabilities of the seller assumed by the buyer; and

          (15) Summarizing the structure of the transaction; and

     (d) Four hours of instruction relating to business brokerage and professional practices, including, without limitation:

          (1) Business opportunity contracts, agreements and disclosure forms;

          (2) Marketing, preparing a business for sale and advertising a business for sale;

          (3) Understanding the significance of the “potential” of a business;

          (4) Offering prospectus and confidentiality agreement;

          (5) Issues of business brokerage compensation;

          (6) Purchase offer and acceptance forms used for business opportunities; and

          (7) Business broker and business appraiser associations.

     3. The Division may accept a course in business brokerage from a nationally recognized or accredited organization to fulfill the educational requirements set forth in subsection 2 if the successful completion of that course would qualify the applicant to engage in business as a business broker pursuant to the requirements of that organization.

     4. Each applicant must pay a fee determined by the Division for the costs of an investigation of the applicant’s background.

     5. Each applicant must, as part of his or her application and at the applicant’s own expense:

     (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Division; and

     (b) Submit to the Division:

          (1) A completed fingerprint card and written permission authorizing the Division to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Division deems necessary; or

          (2) Written verification, on a form prescribed by the Division, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by other means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Division deems necessary.

     6. The Division may:

     (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 5, submit those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Division deems necessary; and

     (b) Request from each such agency any information regarding the applicant’s background as the Division deems necessary.

     (Added to NAC by Real Estate Comm’n by R123-06, eff. 6-1-2006)