NAC645F.650. Contract to provide covered services: Disclosure of certain business and professional relationships required.

     1. If a licensee or a relative of the licensee is licensed as, conducts business as or holds a controlling interest or position in:

     (a) An escrow agency, a title or escrow agent, a title insurer or an escrow officer of a title agent or title insurer; or

     (b) A mortgage broker, mortgage agent, mortgage banker or real estate broker or agent,

Ê the licensee shall fully disclose, in writing, his or her status as, connection to or relationship with such a person or entity to each homeowner before entering into a contract for the provision of covered services. The licensee shall not require as a condition to a homeowner entering into a contract for the provision of covered services that the homeowner transact business with or use the services of any such person or entity or that the homeowner authorize the licensee to transact business with or use the services of such person or entity on behalf of the homeowner.

     2. For the purposes of this section, a person shall be deemed to hold a controlling interest or position if the person:

     (a) Owns or controls a majority of the voting stock or holds any other controlling interest, directly or indirectly, that gives the person the power to direct management or determine policy; or

     (b) Is a partner, officer, director or trustee.

     3. As used in this section, “licensee” means:

     (a) A licensee; and

     (b) If the licensee is not a natural person, any general partner, officer or director of the licensee.

     (Added to NAC by Comm’r of Mortgage Lending by R052-09, eff. 8-25-2009)