Is a licensee permitted to leave her employing broker to go join another broker?

[Rev. 11/28/2017 2:31:02 PM]

[NAC-645 Revised Date: 11-17]

CHAPTER 645 - REAL ESTATE BROKERS AND SALESPERSONS

GENERAL PROVISIONS

645.005������������� Definitions.

645.007������������� �Active experience� defined.

645.010������������� �Active status� defined.

645.011������������� �Administrator� defined.

645.0115����������� �Advisory committee� defined.

645.013������������� �Approved course� defined.

645.017������������� �Branch office� defined.

645.020������������� �Commission� defined.

645.021������������� �Distance education� defined.

645.022������������� �Division� defined.

645.025������������� �Employment� defined.

645.0255����������� �Exclusive agency listing agreement� defined.

645.026������������� �Exclusive buyer�s brokerage agreement� defined.

645.0265����������� �Exclusive right to sell or lease listing agreement� defined.

645.027������������� �Franchise� defined.

645.040������������� �Inactive renewed status� defined.

645.042������������� �Involuntarily inactivate� defined.

645.043������������� �Licensee� defined.

645.045������������� �Owner-developer� defined.

645.046������������� �Postlicensing education� defined.

645.047������������� �Principal place of business� defined.

645.050������������� �Reinstatement� defined.

645.051������������� �Sign� defined.

645.0515����������� �Signature� defined.

645.052������������� �Single-family residence� defined.

645.055������������� �Voluntary cancellation� defined.

645.070������������� Severability of provisions.

ADMINISTRATION

645.075������������� Distribution of booklet concerning certain disclosures required in sale of residential property.

645.080������������� Investigations of background: Fee.

645.085������������� Check or draft returned to Division for lack of payment: Sanctions; fee.

645.095������������� Denial of application, license or permit; proof of moral character; appeal.

LICENSES, CERTIFICATES AND EXAMINATIONS

645.100������������� Applicant for license as real estate salesperson: Minimum age; requirements.

645.101������������� Applicant for license as real estate broker-salesperson: Requirements.

645.102������������� Applicant for license as real estate broker: Requirements.

645.105������������� Preparation of application.

645.115������������� Application by partnership, limited-liability company or corporation.

645.120������������� Financial condition of applicant for license as real estate broker.

645.140������������� Requirement of instruction.

645.141������������� Requirement of active experience.

645.150������������� Investigation of financial responsibility of applicant for license as real estate broker; proof of good character of any applicant.

645.175������������� Licensing of branch offices.

645.177������������� Supervision of branch office.

645.178������������� Management of principal and branch offices.

645.180������������� Cooperative certificate: Application.

645.183������������� Cooperative certificate: Denial, cancellation, suspension or revocation; appeal.

645.185������������� Cooperative certificate: Use of certificate.

645.205������������� Availability of handbook on examinations.

645.207������������� Fee for examination.

645.210������������� Scope of examination.

645.215������������� Length and confidentiality of examination.

645.220������������� Passing grade on examination.

645.225������������� Period for acceptance of results of examination.

645.230������������� Examination aids.

645.305������������� Change in license.

645.310������������� Real estate broker-salesperson or salesperson: Termination of association or employment with real estate broker or owner-developer.

645.313������������� Proof of compliance with requirements for continuing education requisite to renewal of license.

645.315������������� Renewal of license: Failure to file application before license expires.

645.320������������� Inactive renewed status: Placement; renewal of license required.

645.325������������� Inactive renewed status: Requirements for reinstatement.

645.330������������� Review of application for reinstatement.

645.335������������� Appeal from a denial of a request for reinstatement.

645.340������������� Activation of license after approval of reinstatement.

645.345������������� Failure of broker to renew license.

645.350������������� Involuntary inactivation, suspension or revocation of broker�s license; expiration of license upon death of licensee; death of person acting as broker of brokerage.

645.355������������� Loss of license.

645.360������������� Involuntary inactivation of license: Grounds; reinstatement of license.

645.380������������� Brokers designated by certain business organizations; members or officers of certain business organizations acting as brokers; service of certain business organizations as salespersons or broker-salespersons.

EDUCATION IN REAL ESTATE

General Provisions

645.400������������� �School� defined.

645.403������������� Approval of school: Application.

645.404������������� Approval of school: Conditions of approval; evidence of licensure required from certain schools.

645.407������������� Approval of school: Notice of material change in information provided in application; annual renewal of approval; denial of renewal.

645.410������������� Approved schools: General requirements for certification of students.

645.412������������� Approved schools: Certification of students taking courses by correspondence.

645.420������������� Approved schools: Misrepresentation in advertising prohibited.

645.425������������� Approved schools: Instructors; guest lecturers; statement required in advertisements.

645.426������������� Instructors: Requirements for and restrictions on approval; appeal of denial of approval; periodic review and evaluation.

645.427������������� Instructors: Withdrawal of approval.

645.428������������� Instructors: Duties.

645.430������������� Satisfaction of requirement for course in principles of real estate to obtain original license as broker or broker-salesperson.

645.435������������� Course required to obtain original license as salesperson.

645.437������������� Approval of course in broker management required to obtain original license as broker or broker-salesperson; exception.

645.440������������� Courses required for original licensing: Approval of school.

645.441������������� Courses required for original licensing: Unacceptable courses.

645.442������������� Real estate examination: Restrictions on persons associated with school.

645.443������������� Approval of distance education course.

645.4432����������� Duties of sponsor of approved course; period and renewal of approval of course; review and audit by Division; grounds for withdrawal of or refusal to renew approval of course; disciplinary action against licensee who sponsors approved course.

645.4434����������� Approved courses: Withdrawal of approval.

645.4436����������� Approved courses: Reapproval.

645.4438����������� Approved courses: Award of certificate of completion and inclusion of name on roster of attendees.

645.444������������� Approved courses: Evaluation by students.

Postlicensing Education

645.4442����������� Courses required for first-time licensees; exempt licensees; standards for courses; effect of noncompliance.

645.4444����������� Approval and accreditation of courses; certificate of completion.

645.4446����������� Information required on course materials; restriction on attendance.

645.4448����������� Notice of policy of sponsor concerning cancellations and refunds.

Continuing Education

645.445������������� General requirements for renewal or reinstatement of license.

645.448������������� Specific requirements for renewal of license other than initial license and for reinstatement of license.

645.450������������� Standards for courses.

645.455������������� Approval and accreditation of courses; certificate of completion; appeal of denial of approval of course; hearing.

645.457������������� Information required on course materials; restriction of attendance.

645.458������������� Notice of policy of sponsor concerning cancellations and refunds.

645.463������������� Restrictions on receipt of credit for course.

645.467������������� Credit for attendance at meeting of Commission.

REAL ESTATE EDUCATION, RESEARCH AND RECOVERY FUND

645.470������������� Annual financial statement and budget.

645.475������������� Request for showing that judgment debtor has been examined by person who files petition against Fund.

645.480������������� �Unpaid actual damages� interpreted.

645.485������������� Compromise of claim.

ADVISORY COMMITTEE

645.490������������� Establishment and purpose; list of persons approved to serve; appointment of members; restrictions on service; allowance and expenses.

645.493������������� Review of matter investigated as result of complaint or upon request of Division: Duties of advisory committee and Administrator.

645.497������������� Review of matter investigated as result of complaint or upon request of Division: Informal conference; report to Administrator.

645.500������������� Informal conference upon review of matter investigated by Administrator; report to Administrator; confidentiality.

STANDARDS OF PRACTICE

645.525������������� Naming of false consideration in document.

645.535������������� Exclusive agency agreements; placement of signs.

645.541������������� Authorization of licensee to negotiate directly with client of broker with exclusive authority to represent client.

645.546������������� Representation of clients under brokerage agreements: �Present all offers� and �exclusive agency representation� interpreted.

645.551������������� Exclusive buyer�s brokerage agreements: Inclusion of certain provisions regarding compensation of broker.

645.600������������� Responsibilities of broker regarding associated licensees, employees and operation of business; agreement to retain licensee as independent contractor.

645.605������������� Considerations in determining certain misconduct by licensee.

645.610������������� Restrictions on advertising; use of name under which licensee is licensed.

645.611������������� Advertisement of services: Use of terms �team� and �group.�

645.613������������� Dissemination of certain unsolicited information through Internet or electronic mail.

645.615������������� Use of sign to identify business.

645.620������������� Use of fictitious name.

645.627������������� Location of office.

645.630������������� Prompt tender of offers.

645.632������������� Notification of rejection of offer or counteroffer.

645.635������������� Disclosure of unmerchantable title.

645.637������������� Disclosure of relationship as agent or status as principal.

645.640������������� Disclosure of interest of licensee in certain transactions.

645.645������������� Inspections and audits by Division: Cooperation by broker; form for permission.

645.650������������� Periods for maintenance of certain records by broker and for provision of certain paperwork to broker.

645.655������������� Records of transactions; trust accounts.

645.657������������� Payment of deposits.

645.660������������� Disclosure of certain interests required before deposit of money.

645.665������������� Absence of broker from business for prolonged period.

645.670������������� Conduct of inspections by Division.

645.675������������� Agreements for advance fees.

645.678������������� Duties of broker operating agency which lists rentals for advance fee.

645.680������������� Form for complaints; investigations of licensees; action by Administrator on report of investigation.

645.690������������� Correction of certain deficiencies upon notice and request by Division.

645.695������������� Administrative fines and other sanctions.

REGULATION OF OWNER-DEVELOPERS

645.700������������� Registration required.

645.710������������� Application for registration.

645.730������������� Status of registration; required notices.

645.740������������� Expiration of registration.

645.750������������� Limitations on licensees.

645.760������������� Records of sales; limitation on sales.

645.770������������� Disciplinary action; investigation of financial status.

REGULATION OF PROPERTY MANAGERS

645.799������������� Applicability of certain provisions regarding management of common-interest communities.

645.800������������� Permit to engage in property management: General requirements; fees; effective date.

645.8005����������� Permit to engage in property management: Additional requirements for person designated to apply on behalf of certain organizations.

645.802������������� Permit to engage in property management: Requirements and fee for renewal; effective date of renewal; date of expiration.

645.804������������� Approval of courses for educational requirements.

645.805������������� Termination of association of person designated to apply on behalf of certain organizations.

645.806������������� Trust accounts: Annual accounting required; declaration of exemption; maintenance of records; administrative fine for violation.

645.807������������� Trust accounts: Execution of checks by certain broker-salespersons.

PROCEEDINGS BEFORE COMMISSION

645.810������������� Procedure at hearing; receipt of evidence; date of decision.

645.820������������� Procedures for rehearing.

645.830������������� Procedures for obtaining and granting continuances.

645.835������������� Amendment or withdrawal of complaint.

645.840������������� Motions.

645.845������������� Rules of evidence; informality of proceedings.

645.850������������� Submission or exclusion of documentary evidence of respondent.

645.855������������� Attendance of certain brokers required at disciplinary hearing.

645.860������������� Failure of party to appear at hearing.

645.865������������� Voluntary surrender of license, permit, registration or certificate.

645.870������������� Reporting of disciplinary action or denial of application.

645.875������������� Petitions for regulations.

PERMIT TO ENGAGE IN BUSINESS AS BUSINESS BROKER

645.901������������� Definitions.

645.903������������� �Applicant� defined.

645.905������������� �Business broker� defined.

645.907������������� �License� defined.

645.909������������� �Permit� defined.

645.911������������� �Engage in business as a business broker� interpreted.

645.913������������� General requirements; fees; background investigation.

645.915������������� Expiration date; requirements and fee for renewal.

645.917������������� Effective date of renewal.

645.919������������� Approval of courses for educational requirements.

GENERAL PROVISIONS

���� NAC 645.005Definitions. NRS 645.190)As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 645.007 to 645.055, inclusive, have the meanings ascribed to them in those sections.

���� [Real Estate Adv. Comm�n, part � I, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R146-99, 1-21-2000; R031-04, 11-30-2004; R123-06, 6-1-2006; R165-07, 4-17-2008)

���� NAC 645.007�Active experience� defined. (NRS 645.190, 645.343)�Active experience� for the purposes of NRS 645.343 means experience gained while engaged in those activities described in subsections 1 and 2 of NRS 645.030 and NRS 645.035 and 645.040 for at least 30 hours a week during at least 48 weeks of any 12-month period.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81; A by R146-99, 1-21-2000)

���� NAC 645.010�Active status� defined. (NRS 645.190)�Active status� means that a person holds a current license, is otherwise in good standing with the Division and may engage in the real estate business.

���� [Real Estate Adv. Comm�n, � I subsec. 1, eff. 10-31-75]

���� NAC 645.011�Administrator� defined. (NRS 645.190)�Administrator� means the Real Estate Administrator.

���� (Added to NAC by Real Estate Comm�n by R146-99, eff. 1-21-2000)

���� NAC 645.0115�Advisory committee� defined. (NRS 645.190)�Advisory committee� means a committee established pursuant to NAC 645.490.

���� (Added to NAC by Real Estate Comm�n by R146-99, eff. 1-21-2000)

���� NAC 645.013 �Approved course� defined. (NRS 645.190)�Approved course� means a course of education that has been approved as a course for continuing education pursuant to NAC 645.455 or as a course for postlicensing education pursuant to NAC 645.4444.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.017�Branch office� defined. (NRS 645.190)�Branch office� means an office operated by a licensed real estate broker or corporation, separate from the principal location of the broker, for the purpose of engaging in a general real estate business. It does not include a sales office within the same or a nearby community which is used only for sales activities pertaining to the development.

���� [Real Estate Adv. Comm�n, � I subsec. 12 + � VI subsec. 17, eff. 12-20-75]

���� NAC 645.020�Commission� defined.�Commission� means the Real Estate Commission.

���� (Supplied in codification)

���� NAC 645.021�Distance education� defined. (NRS 645.190)�Distance education� means instruction that is delivered by video, computer, television, correspondence, the Internet or other electronic means of communication, or any combination thereof, in such a manner that the person supervising or providing the instruction and the student receiving the instruction are separated by distance or by time, or by both distance and time.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.022�Division� defined. �Division� means the Real Estate Division of the Department of Business and Industry.

���� (Supplied in codification)

���� NAC 645.025�Employment� defined. (NRS 645.190)�Employment� means the relationship between a salesperson and the broker with whom the salesperson is associated. It includes any employee-employer relationship as well as any independent contractor relationship.

���� [Real Estate Adv. Comm�n, � I subsec. 4, eff. 10-31-75]

���� NAC 645.0255�Exclusive agency listing agreement� defined. (NRS 645.190) �Exclusive agency listing agreement� means an agreement between a broker and a seller or lessor that:

���� 1. Meets the requirements of NRS 645.320;

���� 2. Grants the broker the exclusive right to represent the seller or lessor in the sale or lease of any property; and

���� 3. Provides the broker with the expectation of receiving compensation if the broker or any other person produces a purchaser or tenant in accordance with the terms of the exclusive agency listing agreement or if the property is sold or leased during the term of the exclusive agency listing agreement, unless the property is sold or leased solely through the efforts of the seller or lessor or to a person who is specifically exempted under the exclusive agency listing agreement.

���� (Added to NAC by Real Estate Comm�n by R165-07, eff. 4-17-2008)

���� NAC 645.026�Exclusive buyer�s brokerage agreement� defined. (NRS 645.190)�Exclusive buyer�s brokerage agreement� means an agreement between a broker and a purchaser or tenant that:

���� 1. Meets the requirements of NRS 645.320;

���� 2. Grants the broker the exclusive right to represent the purchaser or tenant in the purchase or lease of any property; and

���� 3. Provides the broker with the expectation of receiving compensation in accordance with the terms specified in the exclusive buyer�s brokerage agreement or if any property is purchased or leased by the purchaser or tenant during the term of the exclusive buyer�s brokerage agreement, unless the property is specifically exempted in the exclusive buyer�s brokerage agreement.

���� (Added to NAC by Real Estate Comm�n by R165-07, eff. 4-17-2008)

���� NAC 645.0265�Exclusive right to sell or lease listing agreement� defined. (NRS 645.190)�Exclusive right to sell or lease listing agreement� means an agreement that:

���� 1. Meets the requirements of NRS 645.320;

���� 2. Grants the broker the exclusive right to represent the seller or lessor in the sale or lease of any property; and

���� 3. Provides the broker with the expectation of receiving compensation if the broker, the seller or any other person produces a purchaser or tenant in accordance with the terms specified in the exclusive right to sell or lease listing agreement or if the property is sold or leased during the term of the exclusive right to sell or lease listing agreement to any person other than a person who is specifically exempted under the exclusive right to sell or lease listing agreement.

���� (Added to NAC by Real Estate Comm�n by R165-07, eff. 4-17-2008)

���� NAC 645.027�Franchise� defined. (NRS 645.190)�Franchise� means an agreement, whether expressed or implied, oral or written, between two or more persons by which:

���� 1. The holder is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by the grantor;

���� 2. The operation of the holder�s business pursuant to such a plan or system is substantially associated with the grantor�s trademark, service mark, trade name, logotype, advertising or other commercial symbol which identifies the grantor or its affiliate; and

���� 3. The holder is required to pay, directly or indirectly, a fee for this right.

���� [Real Estate Adv. Comm�n, � I subsec. 13, eff. 12-30-76] — (NAC A by Real Estate Comm�n, 8-21-81; 8-26-83)

���� NAC 645.040�Inactive renewed status� defined. (NRS 645.190)�Inactive renewed status� means that a licensee holds a current unsuspended or unrevoked license, but has cancelled the license and may not transact any real estate business until the licensee reinstates the license to active status. When a licensee is on inactive renewed status, the Division shall keep his or her license.

���� [Real Estate Adv. Comm�n, � I subsec. 6, eff. 10-31-75]

���� NAC 645.042�Involuntarily inactivate� defined. (NRS 645.190)�Involuntarily inactivate� means to transfer a license from active status to inactive renewed status at the initiative of the Division and not at the request of the licensee.

���� [Real Estate Adv. Comm�n, � I subsec. 7, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R031-04, 11-30-2004)

���� NAC 645.043�Licensee� defined. (NRS 645.190)�Licensee� means any person who holds a license as a real estate broker, broker-salesperson or salesperson pursuant to chapter 645 of NRS.

���� (Added to NAC by Real Estate Comm�n, eff. 12-16-82)

���� NAC 645.045�Owner-developer� defined. (NRS 645.190)�Owner-developer� has the meaning ascribed to it by NRS 645.018.

���� [Real Estate Adv. Comm�n, � I subsec. 8, eff. 10-31-75]

���� NAC 645.046�Postlicensing education� defined. (NRS 645.190)�Postlicensing education� means the postlicensing curriculum of continuing education that, pursuant to NRS 645.575, a person is required to complete within the first year after his or her initial licensing.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.047�Principal place of business� defined. (NRS 645.190)�Principal place of business� means the principal office of a licensed real estate broker which he or she uses to conduct a general real estate business.

���� [Real Estate Adv. Comm�n, � I subsec. 11, eff. 12-20-75]

���� NAC 645.050�Reinstatement� defined. (NRS 645.190)�Reinstatement� means the return to active status.

���� [Real Estate Adv. Comm�n, � I subsec. 9, eff. 10-31-75]

���� NAC 645.051�Sign� defined. (NRS 645.190)�Sign� means to affix a signature to a record.

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

���� NAC 645.0515�Signature� defined. (NRS 645.190)�Signature� means a name, word, symbol or mark executed or otherwise adopted, or a record encrypted or similarly processed in whole or in part, by a person with the present intent to identify himself or herself and adopt or accept a record. The term includes, without limitation, an electronic signature as defined in NRS 719.100.

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

���� NAC 645.052�Single-family residence� defined. (NRS 645.018, 645.190)�Single-family residence,� for the purposes of NRS 645.018, includes, without limitation, an attached residential dwelling, a condominium, a cooperative apartment, a manufactured home and a townhouse unit.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81; A by R031-04, 11-30-2004)

���� NAC 645.055�Voluntary cancellation� defined. (NRS 645.190)�Voluntary cancellation� means the transferring of a license from active status to inactive renewed status by a licensee.

���� [Real Estate Adv. Comm�n, � I subsec. 10, eff. 10-31-75]

���� NAC 645.070Severability of provisions. (NRS 645.190)If any provision of these regulations, or the application thereof to any person, thing, or circumstance is held invalid, such invalidity does not affect the provisions or application of these regulations which can be given effect without the invalid provision or application, and to this end the provisions of these regulations are declared to be severable.

���� [Real Estate Adv. Comm�n, � II subsec. 2, eff. 10-31-75] — (Substituted in revision for NAC 645.920)

ADMINISTRATION

���� NAC 645.075Distribution of booklet concerning certain disclosures required in sale of residential property. (NRS 645.190, 645.194)

���� 1. The Division shall make copies of the booklet prepared pursuant to NRS 645.194 available to licensees using one or more of the following methods of distribution:

���� (a) Making a printable version of the booklet available on the Internet website maintained by the Division.

���� (b) Providing an electronic copy of the booklet to each approved sponsor of real estate education courses.

���� (c) Authorizing any person to reproduce the most recent version of the booklet without obtaining the approval of the Division.

���� (d) Providing to schools or instructors approved by the Commission printed copies of the booklet for use in courses to fulfill the educational requirements for issuance of an original license pursuant to chapter 645 of NRS, courses for postlicensing education and courses for continuing education which are devoted to the legal aspects of real estate.

���� (e) Providing at no cost not more than 10 printed copies of the booklet upon request at an office of the Division, if a sufficient supply of booklets is available at the office.

���� (f) Mailing a printed copy of the booklet to any licensee upon the request of the licensee.

���� (g) Any other method of distribution deemed appropriate by the Division.

���� 2. Upon the request of any person at an office of the Division, the Division shall provide the person a printed copy of the booklet prepared pursuant to NRS 645.194.

���� (Added to NAC by Real Estate Comm�n by R090-09, eff. 4-20-2010)

���� NAC 645.080Investigations of background: Fee. (NRS 645.190, 645.6052, 645.830)The fee for the investigation of the background of an applicant, licensee, certificate holder, registrant or permit holder will not exceed the actual cost to conduct the investigation.

���� (Added to NAC by Real Estate Comm�n by R050-04, eff. 8-25-2004)

���� NAC 645.085 Check or draft returned to Division for lack of payment: Sanctions; fee. (NRS 645.190)

���� 1. If a person submits a check or draft to the Division to obtain a certificate, approval, accreditation or other type of authorization to engage in an activity for which authorization is required pursuant to this chapter, or chapter 645 of NRS, and the check or draft is returned to the Division because the person had insufficient money or credit with the drawee to pay the check or draft or because the person stopped payment on the check or draft:

���� (a) The certificate, approval, accreditation or other type of authorization obtained by the person from the Division is involuntarily inactivated; or

���� (b) If the person has not obtained the certificate, approval, accreditation or other type of authorization from the Division, the Division may refuse to issue or reinstate the authorization.

���� 2. In accordance with NRS 353C.115 and NAC 353C.400, the Division shall charge a person, for each check or draft returned to the Division because the person had insufficient money or credit with the drawee to pay the check or draft or because the person stopped payment on the check or draft, a fee of $25 or such other amount as may subsequently be required by NRS 353C.115 and NAC 353C.400.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.095Denial of application, license or permit; proof of moral character; appeal. (NRS 645.190, 645.285, 645.330, 645.400, 645.6052)

���� 1. The Division may deny any application for registration as an owner-developer, a license or a permit issued by the Division pursuant to this chapter or chapter 645 of NRS for any reason which is sufficient to deny a license pursuant to NRS 645.330 or when one or more of the following conditions exist:

���� (a) The application is not in proper form;

���� (b) The application is not accompanied by the required fees;

���� (c) The accompanying forms are incomplete or otherwise unsatisfactory;

���� (d) The application contains a false statement;

���� (e) Other deficiencies appear in the application;

���� (f) An investigation fails to show affirmatively that the applicant possesses the necessary qualifications, including, without limitation, good moral character and financial responsibility;

���� (g) The applicant has willfully acted or attempted to act in violation of chapter 113, 116, 119, 119A, 645, 645A, 645C or 645D of NRS or the regulations adopted pursuant thereto, or has willfully aided and abetted another to act or attempt to act in violation of those chapters or regulations;

���� (h) The check used in paying the required fees for the registration, license or permit is not honored by the financial institution upon which it is drawn; or

���� (i) If the application is for registration as an owner-developer, the applicant fails to verify that he or she is a licensed contractor in this State.

���� 2. The Administrator may require proof of the applicant�s moral character. In determining that character, the Administrator shall consider:

���� (a) The results of the Division�s investigation of matters stated in the application and other matters that have come to the attention of the Division as a result of the investigation of the Division;

���� (b) Any history of arrest and conviction of the applicant;

���� (c) The nature and history of the business of the applicant; and

���� (d) Any past failure of the applicant to comply with any applicable requirements of chapter 113, 116, 119, 119A, 645, 645A, 645C or 645D of NRS.

���� 3. An applicant whose application is denied by the Division may appeal the denial to the Commission in the manner set forth in NRS 645.440. If the Commission reverses the original decision and determines that the petitioner qualifies for registration, a license or a permit, the application may be accepted as of the date the application was originally submitted or the date on which the fee for the registration, license or permit was paid, whichever is later. The Division shall not charge an additional fee.

���� 4. If the Division denies an application pursuant to this section, the Division will not refund any fees paid pursuant to that application.

���� (Added to NAC by Real Estate Comm�n by R111-01, eff. 12-17-2001)

LICENSES, CERTIFICATES AND EXAMINATIONS

���� NAC 645.100Applicant for license as real estate salesperson: Minimum age; requirements. (NRS 645.190, 645.330, 645.400)An applicant for a license as a real estate salesperson must:

���� 1. Be at least 18 years of age; and

���� 2. Include with an application submitted to the Division pursuant to NRS 645.350:

���� (a) His or her fingerprint card as required pursuant to NRS 645.355;

���� (b) Proof that the applicant has satisfied the educational requirements for a license as a real estate salesperson as set forth in NRS 645.343;

���� (c) In accordance with NRS 645.358, the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520;

���� (d) Proof that the applicant has received a passing grade as described in NAC 645.220 on the examination for the license;

���� (e) The verified statement required by NRS 645.350;

���� (f) Any information required pursuant to NAC 645.150, including, without limitation, proof of honesty, truthfulness and good reputation; and

���� (g) The required fees.

���� (Added to NAC by Real Estate Comm�n by R111-01, eff. 12-17-2001)

���� NAC 645.101Applicant for license as real estate broker-salesperson: Requirements. (NRS 645.190, 645.400)An applicant for a license as a real estate broker-salesperson must satisfy the requirements for a license as a real estate salesperson as set forth in NAC 645.100 except the educational requirements set forth in paragraph (b) of subsection 2 of NAC 645.100. In lieu of providing proof that he or she has satisfied the educational requirements for a license as a real estate salesperson, the applicant must include with an application submitted to the Division pursuant to NRS 645.350 proof that he or she has satisfied the educational requirements for a license as a real estate broker-salesperson as set forth in NRS 645.343.

���� (Added to NAC by Real Estate Comm�n by R111-01, eff. 12-17-2001)

���� NAC 645.102Applicant for license as real estate broker: Requirements. (NRS 645.190, 645.400)

���� 1. Before a person who wishes to apply for a license as a real estate broker submits an application for the license pursuant to NRS 645.350, the person must obtain approval of his or her financial condition from the Division pursuant to NAC 645.120.

���� 2. An applicant for a license as a real estate broker must satisfy the requirements for a license as a real estate salesperson as set forth in NAC 645.100 except the educational requirements set forth in paragraph (b) of subsection 2 of NAC 645.100. In lieu of providing proof that he or she has satisfied the educational requirements for a license as a real estate salesperson, the applicant must include with an application submitted to the Division pursuant to NRS 645.350 proof that he or she has satisfied the educational requirements for a license as a real estate broker as set forth in NRS 645.343.

���� 3. In addition to satisfying the requirements set forth in subsection 2, an applicant for a license as a real estate broker must include with the application he or she submits to the Division pursuant to NRS 645.350 proof that the applicant has satisfied the experience requirements for a license as a real estate broker as set forth in subsection 4 of NRS 645.330.

���� (Added to NAC by Real Estate Comm�n by R111-01, eff. 12-17-2001; A by R025-10, 12-16-2010)

���� NAC 645.105Preparation of application. (NRS 645.190, 645.400)Each application must be completed personally by the applicant. Members of the Commission or employees of the Division are expressly prohibited from helping a person prepare his or her license application.

���� [Real Estate Adv. Comm�n, � III part subsec. 1 � subsec. 2, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-26-83)

���� NAC 645.115Application by partnership, limited-liability company or corporation. (NRS 645.190, 645.400)If an applicant for a license is a partnership, limited-liability company or corporation, the applicant must file with the Division a certified or verified copy of the partnership agreement, articles of organization or articles of incorporation, as appropriate.

���� [Real Estate Adv. Comm�n, � III subsec. 5, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 6-3-86; R031-04, 11-30-2004)

���� NAC 645.120Financial condition of applicant for license as real estate broker. (NRS 645.190, 645.400)

���� 1. Before a person who wishes to apply for a license as a real estate broker submits an application for the license pursuant to NRS 645.350, the Division shall consider the financial condition of the person and require the person to submit to the Division the following financial information:

���� (a) The person�s current employer and the employer�s address;

���� (b) The person�s checking accounts with amounts;

���� (c) The person�s savings accounts with amounts; and

���� (d) Such other information concerning the person�s finances as the Division deems pertinent.

���� 2. A person may not apply for a license as a real estate broker unless the person has submitted to the Division the information required by this section and the Division has approved the financial condition of the person.

���� [Real Estate Adv. Comm�n, � III subsec. 1 par. a, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; R031-04, 11-30-2004; R025-10, 12-16-2010)

���� NAC 645.140Requirement of instruction. (NRS 645.190, 645.343, 645.345, 645.400)

���� 1. An applicant for an original license must submit a certificate from an accredited educational institution or an institution approved by the Commission as proof that the applicant has successfully completed the course or courses of instruction required in NRS 645.343. If the applicant states in his or her application that he or she has completed any of the courses at a university or community college the applicant must have the college or university furnish the Division with a transcript of his or her record. The Division may allow substitution of those courses already completed and may require additional instruction as is necessary to complete the course of instruction required in NRS 645.343.

���� 2. Mere attendance in a classroom does not constitute successful completion of a course.

���� 3. Proof of active experience as a real estate salesperson must be made on a form provided by the Division and attested by the applicant�s broker or brokers.

���� 4. For the purposes of subsection 4 of NRS 645.343, the substitution of each 2 years� active experience for 16 semester units of college level courses applies to experience as a real estate salesperson or broker in this State, any other state or the District of Columbia. No substitution may be made for any period which is less than 2 years.

���� [Real Estate Adv. Comm�n, � III subsecs. 21-23, eff. 1-4-78; A 4-20-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 8-26-83; 4-27-84)

���� NAC 645.141Requirement of active experience. (NRS 645.190, 645.400)

���� 1. The Division will require a verified statement from an employing broker or a real estate broker-salesperson who is acting as manager of a principal or branch office pursuant to NAC 645.178 indicating extended experience of any licensee associated with the broker or broker-salesperson in order to determine the extent of experience the licensee has gained while associated with the broker or broker-salesperson.

���� 2. This information must be reported on a form provided by the Division which must request the following information:

���� (a) The period of association with the broker or broker-salesperson.

���� (b) The average number of hours worked per week for, or under the supervision of, the broker or broker-salesperson.

���� (c) Any other information concerning the activities of the licensee which should be considered as contributing towards the licensee�s experience while associated with the broker or broker-salesperson.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81; A by R097-14, 4-4-2016)

���� NAC 645.150Investigation of financial responsibility of applicant for license as real estate broker; proof of good character of any applicant. (NRS 645.190, 645.400)

���� 1. The Division may investigate the financial responsibility of each applicant for a license as a real estate broker. If the Division determines that an applicant is not financially responsible, it may require that the applicant be licensed as a real estate broker-salesperson until he or she meets the requirements of financial responsibility as determined by the Commission. The Division may require an applicant for a license as a real estate broker to submit a credit report to the Division at his or her own expense.

���� 2. An applicant for a license as a real estate broker shall be deemed financially responsible if the applicant can show liquid assets sufficient to maintain an office for at least 180 days. The applicant�s cash on hand must be on deposit at least 90 days before the date of the application. Anyone denied a license for lack of financial responsibility does not waive his or her right to appeal pursuant to NRS 645.440 by acceptance of a license as a real estate broker-salesperson.

���� 3. The Administrator may require other proof of the honesty, truthfulness and good reputation of any applicant, including the officers and directors of any corporation, or the members of any partnership or association making an application, before accepting an application for a license.

���� 4. As used in this section, �liquid assets� means assets that are the equivalent of cash or easily converted into cash. The term:

���� (a) Includes, without limitation, money in a checking, savings or money market account and certificates of deposit.

���� (b) Does not include a line of credit.

���� [Real Estate Adv. Comm�n, � III subsecs. 12 & 13, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; A by Real Estate Div., 3-1-96; A by Real Estate Comm�n by R111-01, 12-17-2001; R031-04, 11-30-2004; R025-10, 12-16-2010)

���� NAC 645.175Licensing of branch offices. (NRS 645.050, 645.190, 645.530)

���� 1. The real estate broker to whom the license is issued is responsible for all branch offices operated by the real estate broker.

���� 2. A license for a branch office may only be issued in the name in which the real estate broker is licensed to conduct business at his or her main office.

���� 3. A supervisor of a branch office may not manage more than one branch office.

���� 4. A branch office is not required to establish a trust account, but if one is established, one of the signatures required on the account must be that of the supervisor of the branch office.

���� [Real Estate Adv. Comm�n, � VI subsecs. 9-12 & 14, eff. 12-20-75] — (NAC A by Real Estate Comm�n by R111-01, 12-17-2001)

���� NAC 645.177Supervision of branch office. (NRS 645.050, 645.190)

���� 1. Every branch office of a real estate broker must be under the supervision of a broker or a broker-salesperson who, within the preceding 4 years, has had 2 years of active experience as a broker, broker-salesperson, or salesperson in the United States.

���� 2. While supervising a branch office, a broker-salesperson has all the duties of and is subject to the penalties applicable to a broker under chapter 645 of NRS and this chapter.

���� [Real Estate Adv. Comm�n, � VI subsec. 7, eff. 12-20-75] — (NAC A 12-16-82; A by Real Estate Div., 3-1-96)

���� NAC 645.178Management of principal and branch offices. (NRS 645.050, 645.190)

���� 1. A real estate broker-salesperson with at least 2 years of active experience within the immediately preceding 4 years of having a licensed status may act as an office manager for the principal office or a branch office operated by a real estate broker.

���� 2. A real estate broker-salesperson who is acting as manager of a principal or branch office must notify the Division that he or she is acting in that capacity.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81; A by Real Estate Div., 3-1-96; A by Real Estate Comm�n by R111-01, 12-17-2001)

���� NAC 645.180Cooperative certificate: Application. (NRS 645.190, 645.605)

���� 1. A real estate broker who is licensed in another state and wishes to work in cooperation with a Nevada real estate broker must apply to do so on a form provided by the Division. The application must be accompanied by:

���� (a) A copy of his or her current license issued in the other state;

���� (b) A history of his or her employment for the past 10 years;

���� (c) Information identifying him or her and the Nevada broker with whom the applicant wishes to cooperate;

���� (d) Information identifying the client whom the applicant will be representing;

���� (e) Information identifying the real property which will be the subject of the transaction conducted under the cooperative certificate;

���� (f) A history of any disciplinary, criminal or other legal proceeding involving the real estate salesperson or broker-salesperson who will be working for the applicant under the cooperative certificate;

���� (g) A list of other cooperative agreements currently in effect with the Nevada broker;

���� (h) A photograph of the applicant;

���� (i) A copy of the license of the real estate salesperson or broker-salesperson who will be working for the applicant; and

���� (j) A statement of consent by the Nevada broker to the cooperative agreement.

���� 2. The Nevada broker and out-of-state broker must verify the truth of the contents of the application.

���� 3. The application must be completed personally by the out-of-state broker, and no licensed Nevada broker or employee of the Division may assist in the preparation of any part of the application.

���� 4. The required fee must be paid at the time of filing. If the Administrator does not issue the certificate as applied for, the fee will not be refunded.

���� 5. The applicant must furnish proof satisfactory to the Administrator that:

���� (a) The applicant has a current active real estate broker�s license or certificate issued by another state or territory of the United States or the District of Columbia;

���� (b) The jurisdiction which issued the license or certificate is the jurisdiction in which his or her principal place of business is located; and

���� (c) The applicant is in good standing with the authority which issued the license or certificate.

���� 6. A person who resides in this State and holds a real estate license issued by another state is not eligible to hold a cooperative certificate or act on behalf of a holder of a certificate.

���� 7. The Administrator may require proof of the applicant�s moral character. In determining that character, the Administrator may consider:

���� (a) The results of the Division�s investigation of matters stated in the application and other matters that have come to the attention of the Division as a result of the investigation;

���� (b) Any history of arrest and conviction of the applicant;

���� (c) The nature and history of the business of the applicant; and

���� (d) Any past failure of the applicant to comply with:

��������� (1) Any requirement of chapter 113, 116, 119, 119A, 645, 645A, 645C or 645D of NRS or any other specific statute that is applicable to real estate transactions;

��������� (2) Any similar statutory or regulatory requirement of another jurisdiction that is applicable to real estate transactions; or

��������� (3) Any order imposing penalties that was issued by the licensing authority of another jurisdiction and was in effect at the time the applicant applied for the cooperative certificate.

���� [Real Estate Adv. Comm�n, � XI, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 4-27-84; R111-01, 12-17-2001; R031-04, 11-30-2004; R097-14, 4-4-2016)

���� NAC 645.183Cooperative certificate: Denial, cancellation, suspension or revocation; appeal. (NRS 645.190, 645.605)

���� 1. The Administrator may deny an application for a cooperative certificate for any reason which is sufficient to deny an application for a license, permit or registration pursuant to NAC 645.095 or to initiate disciplinary proceedings pursuant to NRS 645.630 to 645.645, inclusive.

���� 2. An applicant whose application for a cooperative certificate has been denied by the Administrator or an out-of-state real estate broker whose cooperative certificate has been cancelled, suspended or revoked by the Administrator may appeal the denial, cancellation, suspension or revocation to the Commission in the manner set forth in NRS 645.440. The Commission will review the decision by the Administrator in the manner set forth in NRS 645.440, except that the hearing need not be held at a time or place other than that set for the next regular meeting of the Commission.

���� 3. If the Commission reverses a decision by the Administrator to deny an application for a cooperative certificate and determines that the petitioner qualifies for a certificate, the application may be accepted as of the date the application was originally submitted or the date on which the fee for the certificate was paid, whichever is later. The Division shall not charge an additional fee.

���� [Real Estate Adv. Comm�n, � XIII, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 4-27-84; R111-01, 12-17-2001)

���� NAC 645.185Cooperative certificate: Use of certificate. (NRS 645.050, 645.190, 645.605)

���� 1. A certificate authorizing an out-of-state broker to cooperate with a Nevada broker is valid for the earlier of 12 months after the date of issuance or the completion or termination of the single transaction identified in the application for the certificate and expires automatically when the transaction has been completed or has been terminated. The fee paid for the issuance covers only that period or transaction, as applicable. The certificate is not transferable.

���� 2. A Nevada broker working with an out-of-state broker holding such a certificate shall immediately report any change in his or her license status or address or the license status or address of the out-of-state broker to the Division. Any violation of this subsection subjects the certificate to revocation.

���� 3. If, at any time during which a cooperative certificate is in effect, the out-of-state broker or the Nevada broker wishes to terminate the relationship, he or she must give written notice of the termination to the Division and the broker with whom he or she has been cooperating and the out-of-state broker shall immediately surrender his or her certificate to the Division.

���� 4. If the license of the out-of-state broker expires or is inactivated, suspended, revoked or cancelled, the out-of-state broker shall immediately give written notice to the Division of each Nevada broker with whom he or she is cooperating and surrender his or her cooperative certificate to the Division.

���� 5. The Administrator may not issue a cooperative certificate to an out-of-state association, partnership or corporation which is licensed as a broker. Only a natural person who is a broker may be issued such a certificate.

���� 6. When acting under a cooperative certificate, an out-of-state broker shall work through the cooperating Nevada broker or a licensee associated with a Nevada broker. The Nevada broker is in charge of the transaction from beginning to end.

���� 7. Any money received in a cooperative transaction may be handled only by the cooperating Nevada broker in accordance with NRS 645.310.

���� 8. Each out-of-state broker, while cooperating with a Nevada broker, is governed by the provisions of this chapter and chapter 645 of NRS. Any violation of such a provision by the out-of-state broker subjects his or her cooperative certificate and the Nevada broker�s license to fine or suspension, or both, or revocation. By accepting a cooperative certificate, the out-of-state broker shall be deemed to have appointed the Nevada broker as his or her agent for service of all notices and process in any proceeding initiated by the Division pursuant to chapter 645 of NRS related to the transaction for which the cooperative certificate was issued.

���� 9. A cooperating out-of-state broker may authorize only one broker-salesperson or one salesperson employed by him or her to act in his or her behalf. The authorization must be on a form supplied by the Division, and a copy must be sent to the Division before the authorized representative of the out-of-state broker may conduct any transaction. The authorized representative shall carry the completed form with him or her whenever the authorized representative is in Nevada for the purpose of conducting his or her real estate business.

���� 10. An out-of-state broker may cooperate with more than one Nevada broker and a Nevada broker may cooperate with more than one out-of-state broker. Each arrangement is considered a separate agreement for which the appropriate form must be completed and submitted, the appropriate fee paid and a separate cooperative certificate obtained.

���� 11. An out-of-state broker may not use a cooperating broker�s certificate as authority to sell or attempt to sell real estate in Nevada on behalf of the owner of that real estate. Such a certificate may be used only for the purpose of allowing the out-of-state broker or salesperson to represent a person other than a resident of Nevada in the purchase of real estate in Nevada.

���� [Real Estate Adv. Comm�n, � XII, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 4-27-84; R031-04, 11-30-2004; R097-14, 4-4-2016)

���� NAC 645.205 Availability of handbook on examinations. (NRS 645.190) An applicant may obtain the handbook on candidate examinations that is currently approved by the Division at an office of the Division at no cost.

���� [Real Estate Adv. Comm�n, � IV subsecs. 1, 3 & 4, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; R146-99, 1-21-2000; R031-04, 11-30-2004)

���� NAC 645.207Fee for examination. (NRS 645.190, 645.410)The fee for an examination for an original license or the reinstatement of a license as a real estate broker, broker-salesperson or salesperson is $100.

���� (Added to NAC by Real Estate Comm�n by R111-01, eff. 12-17-2001; A by R031-04, 11-30-2004)

���� NAC 645.210Scope of examination. (NRS 645.190, 645.460)The examination for salespersons may be a different examination from the examination for brokers. Each of the examinations will consist of questions covering any or all of the following subjects:

���� 1. Principles:

���� (a) Contract law;

���� (b) Real estate law and conveyancing;

���� (c) Listing property and services to the seller;

���� (d) Selling property and services to the buyer; and

���� (e) Deposits.

���� 2. Practices:

���� (a) Land economics and appraising;

���� (b) Land descriptions;

���� (c) Financing and insurance;

���� (d) Mathematics;

���� (e) Escrows and closings;

���� (f) Subdivisions and developments;

���� (g) Property management;

���� (h) Environmental issues; and

���� (i) Tax issues that affect real estate ownership.

���� 3. Procedures and ethics:

���� (a) NRS 113.060 to 113.150, inclusive, 116.4109 and 116.41095, and chapters 119, 119A, 119B and 645 of NRS and the regulations adopted pursuant to them;

���� (b) Federal laws, including, without limitation:

��������� (1) Fair Housing Act, 42 U.S.C. �� 3601 et seq.;

��������� (2) Interstate Land Sales Full Disclosure Act, 15 U.S.C. �� 1701 et seq.;

��������� (3) Truth in Lending Act, 15 U.S.C. �� 1601 et seq.;

��������� (4) Americans with Disabilities Act of 1990, 42 U.S.C. �� 12101 et seq.;

��������� (5) Real Estate Settlement Procedures Act, 12 U.S.C. �� 2601 et seq.;

��������� (6) Equal Credit Opportunity Act, 15 U.S.C. �� 1691 et seq.; and

��������� (7) The Residential Lead-Based Paint Exposure Reduction Act of 1992, 42 U.S.C. �� 4851 et seq.; and

���� (c) Real estate brokerage and ethics, professional responsibility, fair practice and the duties listed in any form prepared by the Division pursuant to NRS 645.193. A copy of a form prepared by the Division pursuant to NRS 645.193 may be obtained from the Division.

���� [Real Estate Adv. Comm�n, � IV subsec. 2, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R146-99, 1-21-2000)

���� NAC 645.215Length and confidentiality of examination. (NRS 645.190)The examination period must not exceed 4 hours without prior written consent of the Division. An applicant may not retain any examination materials. Examinations must not be made public except as provided in NRS 645.180.

���� [Real Estate Adv. Comm�n, � IV subsec. 5, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R146-99, 1-21-2000; R031-04, 11-30-2004)

���� NAC 645.220 Passing grade on examination. (NRS 645.190) To pass an examination, an applicant must achieve a grade of at least 75 percent on each section of the examination.

���� [Real Estate Adv. Comm�n, � IV subsec. 6, eff. 10-31-75; A 2-20-76] — (NAC A by Real Estate Comm�n by R031-04, 11-30-2004)

���� NAC 645.225Period for acceptance of results of examination. (NRS 645.190) The Division shall only accept results of an examination taken during the 12 months, to the day, immediately preceding the date of application for a license.

���� [Real Estate Adv. Comm�n, � IV subsecs. 7 & 10 eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 6-3-86; R031-04, 11-30-2004)

���� NAC 645.230Examination aids. (NRS 645.190)

���� 1. The use or possession of any unfair methods or notes, the giving or receiving of aid of any kind, or the failure to obey instructions during the examination will result in a denial of the application and license.

���� 2. A silent, cordless, electronic calculator may be used by an applicant during the examination if the calculator:

���� (a) Is not programmable;

���� (b) Does not have the capability to print on paper tape; and

���� (c) Does not have a keyboard containing the alphabet.

���� [Real Estate Adv. Comm�n, � IV subsec. 8, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; R031-04, 11-30-2004)

���� NAC 645.305Change in license. (NRS 645.190, 645.570)

���� 1. Within 10 days after a change of his or her association with a real estate broker, other than termination, or a change of his or her name, business location or status, the licensee shall:

���� (a) Submit a request to the Division to change his or her license on a form provided by the Division; and

���� (b) Pay the required fees.

���� 2. If a licensee requests a change and pays the required fee, the receipt issued by the Division constitutes a temporary working permit pending receipt of the requested license.

���� 3. A real estate broker may change his or her status to that of a real estate broker-salesperson by filing an application on a form supplied by the Division.

���� 4. Licensees associated with a real estate broker licensed pursuant to chapter 645 of NRS as a manager of a limited-liability company, member of a partnership or officer of a corporation are not considered to have changed their association with the real estate broker if the corporation, limited-liability company or partnership designates a new real estate broker to act in the capacity of a manager of the limited-liability company, member of the partnership or officer of the corporation on or before the last date that the former real estate broker works in that capacity.

���� [Real Estate Adv. Comm�n, � V subsecs. 1, 2 & 8, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.310Real estate broker-salesperson or salesperson: Termination of association or employment with real estate broker or owner-developer. (NRS 645.190, 645.580)

���� 1. If a real estate broker-salesperson or salesperson terminates, for any reason, his or her association with the real estate broker with whom he or she is associated, or his or her employment with the owner-developer by whom he or she is employed, the real estate broker or owner-developer shall, in addition to complying with the requirements of NRS 645.580, file with the Division:

���� (a) A notice of termination on a form provided by the Division; and

���� (b) Any other pertinent information the Division requests.

���� 2. A real estate broker-salesperson or salesperson whose association or employment with a real estate broker or owner-developer is terminated may personally deliver his or her broker-salesperson or salesperson license to the Division on behalf of the real estate broker or owner-developer if the real estate broker-salesperson or salesperson, at the time he or she submits the license, also submits to the Division the original notice of termination that has been completed and signed by the real estate broker or owner-developer. The original notice of termination must include the signature of the broker or owner-developer, as appropriate, in any designated area on the notice which is required to be completed for the personal delivery of the license.

���� 3. If a real estate broker or owner-developer does not comply with subsections 1 and 2 and NRS 645.580 in a timely manner, the licensee may apply for an administrative termination on a form provided by the Division.

���� [Real Estate Adv. Comm�n, � V subsec. 5, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.313Proof of compliance with requirements for continuing education requisite to renewal of license. (NRS 645.190, 645.575)The Division shall not renew the license of an active broker, broker-salesperson or salesperson unless the Division has received proof of compliance with the requirements for continuing education set forth in NRS 645.575 and the regulations adopted pursuant thereto.

���� [Real Estate Adv. Comm�n, � V subsec. 27, eff. 4-20-78] — (NAC A by Real Estate Comm�n, 5-14-96; R097-14, 4-4-2016) — (Substituted in revision for NAC 645.390)

���� NAC 645.315Renewal of license: Failure to file application before license expires. (NRS 645.190, 645.577, 645.785)If a licensee fails to file an application for the renewal of his or her license before it expires, the licensee shall not engage in the business of real estate until the license is reinstated. To have his or her license reinstated, the licensee must:

���� 1. Apply on the appropriate form;

���� 2. Pay the required fees;

���� 3. If required, pass the examination; and

���� 4. Submit any other information required by the Administrator, including, without limitation, current fingerprint cards.

���� [Real Estate Adv. Comm�n, � V subsec. 11, eff. 10-31-75; A and renumbered as subsec. 9, 2-20-76] — (NAC A by Real Estate Comm�n by R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.320Inactive renewed status: Placement; renewal of license required. (NRS 645.190, 645.577)

���� 1. A licensee may be placed on inactive renewed status by applying to the Division on the appropriate form. The licensee is not entitled to a refund of any part of the fees paid for the unexpired term of his or her license.

���� 2. A licensee who is on inactive renewed status must apply for renewal of his or her license on or before each anniversary of the license.

���� [Real Estate Adv. Comm�n, � V part subsecs. 9 & 10, eff. 10-31-75; A and renumbered as subsecs. 10 & 11, 2-20-76]

���� NAC 645.325Inactive renewed status: Requirements for reinstatement. (NRS 645.190)Except as otherwise provided in NAC 645.345:

���� 1. A licensee who is in good standing with the Division and whose license is on inactive renewed status may apply to the Division to have his or her license reinstated to active status. The application must:

���� (a) Be on a form supplied by the Division;

���� (b) Be accompanied by the required fees;

���� (c) Contain evidence that the licensee has paid the required fee for the Real Estate Education, Research and Recovery Fund;

���� (d) If the application is for reinstatement of a real estate broker�s license, be accompanied by a completed financial statement that is prepared on the form prescribed by the Division;

���� (e) Contain evidence that requirements for continuing education have been met; and

���� (f) Include any other information required by the Administrator, including, without limitation, current fingerprint cards.

���� 2. If a license has been on inactive renewed status for more than 2 years, the licensee must, in addition to fulfilling the requirements of subsection 1:

���� (a) Show, to the Administrator�s satisfaction, that he or she has the competency to engage in the business of real estate; and

���� (b) Complete an examination, including payment of the appropriate examination fees, and attain a score of at least 75 percent.

���� 3. If the licensee fails the examination, he or she may retake the examination after paying the appropriate examination fee.

���� 4. A license placed on inactive status for the holder�s failure to comply with NRS 645.570 or for any of the reasons listed in NRS 645.577 remains inactive until an application for reinstatement has been approved by the Division.

���� [Real Estate Adv. Comm�n, � V part subsecs. 9 & 12, eff. 10-31-74; A and renumbered as subsecs. 12 & 13, 2-20-76] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 4-27-84; 6-3-86; R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.330Review of application for reinstatement. (NRS 645.190)In reviewing the application for reinstatement, the Division shall apply the same standards as are applied for original applicants. The Division shall determine whether the application is accepted or denied within 10 days after the later of:

���� 1. The determination by the Division that the applicant has passed the examination, if required; and

���� 2. The receipt by the Division of the following, if required:

���� (a) The FBI report;

���� (b) A completed financial statement that is prepared on a form prescribed by the Division;

���� (c) The required fees and forms; and

���� (d) Such other information as may be requested by the Division.

���� [Real Estate Adv. Comm�n, � V subsec. 14, eff. 2-20-76] — (NAC A by Real Estate Comm�n by R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.335Appeal from a denial of a request for reinstatement. (NRS 645.190)If the Division denies an application for any reason, the licensee may appeal the denial pursuant to the provisions of NRS 645.440.

���� [Real Estate Adv. Comm�n, � V subsec. 15, eff. 2-20-76] — (NAC A by Real Estate Comm�n, 8-21-81)

���� NAC 645.340Activation of license after approval of reinstatement. (NRS 645.190)The licensee must activate his or her license within 30 days after receiving notice from the Division that his or her application for reinstatement has been approved.

���� [Real Estate Adv. Comm�n, � V subsec. 9 par. c, eff. 10-31-75]

���� NAC 645.345Failure of broker to renew license. (NRS 645.190)

���� 1. If a real estate broker fails to renew his or her license, the license of a licensee with whom he or she is associated who has renewed that license will immediately be placed on inactive renewed status. A licensee associated with the real estate broker may:

���� (a) Within 30 calendar days, apply for a transfer to the association of another real estate broker, and pay any required fees; or

���� (b) If the real estate broker with whom the licensee was associated reinstates and renews his or her license within 30 calendar days, reactivate his or her license with that real estate broker.

���� 2. If the licensee fails to reassociate with a broker within 30 days after the license of the broker with whom the licensee was associated became inactive, the licensee may only reinstate his or her license pursuant to NAC 645.325.

���� [Real Estate Adv. Comm�n, � V subsec. 13, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.350Involuntary inactivation, suspension or revocation of broker�s license; expiration of license upon death of licensee; death of person acting as broker of brokerage. (NRS 645.050, 645.190)

���� 1. If the license of a real estate broker is involuntarily inactivated, suspended or revoked, the real estate broker shall deliver his or her license to the Division with the license of each licensee with whom he or she is associated. A licensee who is associated with the real estate broker may, upon proper application and payment of the required fee, transfer to the association of another real estate broker. No refund will be made when a license is involuntarily inactivated, suspended or revoked.

���� 2. Upon the death of a licensee, the license held by that licensee automatically expires.

���� 3. Upon the death of a person who was licensed as a real estate broker and who was acting as the broker of a brokerage, a person who is licensed as a real estate broker in the State of Nevada may submit to the Division an affidavit stating that he or she will act as the broker of that brokerage for not more than 60 days after the death of the person who was acting as the broker of the brokerage. Notice of such an appointment must be submitted to the Division, in writing, within 7 business days after the death of the person who was acting as the broker of the brokerage.

���� [Real Estate Adv. Comm�n, � V subsec. 14, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R111-01, 12-17-2001; R031-04, 11-30-2004; R123-06, 6-1-2006)

���� NAC 645.355Loss of license. (NRS 645.190)If a license must be surrendered and it is not, the licensee shall file an affidavit with the Division showing that the license has been lost, destroyed or stolen. The affidavit must contain the licensee�s promise to return the license if it is recovered.

���� [Real Estate Adv. Comm�n, � V subsec. 15, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81)

���� NAC 645.360Involuntary inactivation of license: Grounds; reinstatement of license. (NRS 645.190)

���� 1. The Division may involuntarily inactivate a license if:

���� (a) A real estate broker has discontinued business at the address at which he or she is registered;

���� (b) A licensee is no longer associated with a real estate broker under whom he or she is shown to be licensed;

���� (c) A licensee, whether active or inactive, fails to inform the Division within 10 days after a change in the address of his or her business;

���� (d) A licensee has not paid the renewal fee;

���� (e) A licensee fails to comply with subsection 2 of NRS 645.580 in a timely manner; or

���� (f) A licensee fails to submit a request to the Division as required by NAC 645.305 to change his or her license within 10 days after the licensee changes his or her name, business location or status.

���� 2. A licensee whose license is involuntarily inactivated pursuant to this section must satisfy the applicable requirements for reinstatement as set forth in NAC 645.325 to have his or her license reinstated.

���� [Real Estate Adv. Comm�n, � V subsec. 16, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 4-27-84; R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.380Brokers designated by certain business organizations; members or officers of certain business organizations acting as brokers; service of certain business organizations as salespersons or broker-salespersons. (NRS 645.050, 645.190, 645.385, 645.400)

���� 1. A broker designated by a partnership, limited-liability company or corporation pursuant to NRS 645.370 or a broker who has obtained a license pursuant to NRS 645.380 may also obtain an individual license to act on his or her own behalf. To obtain an individual license, a broker must complete and submit forms as supplied by the Division and must pay an original license fee and any other required fees.

���� 2. The Division will issue an additional license to such a broker and subject him or her to the same rights and duties as any other licensed Nevada broker. He or she may maintain an office separate from the offices of the partnership, limited-liability company or corporation and shall maintain separate records and a separate trust account so that the business of the partnership, limited-liability company or corporation remains separate from his or her independent business.

���� 3. The partnership, limited-liability company or corporation must submit a statement, on a form supplied by the Division, indicating that it is fully aware of the intention of the broker to maintain an independent business.

���� 4. Revocation, suspension, or any other penalty of the Commission or the Division applies to both licenses of a broker who is licensed pursuant to this section.

���� 5. A partnership, limited-liability company or corporation may not serve as a salesperson or broker-salesperson except as otherwise provided by a specific statute.

���� 6. A broker who is licensed individually and as a partnership, limited-liability company or corporation, even though he or she has been issued two licenses by the Division, is considered to be only one licensee for the purposes of disciplinary action or claims against the Real Estate Education, Research and Recovery Fund.

���� [Real Estate Adv. Comm�n, � V subsec. 20, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 4-27-84; A by Real Estate Div., 3-31-94; R126-04, 10-31-2005)

EDUCATION IN REAL ESTATE

General Provisions

���� NAC 645.400�School� defined. (NRS 645.190, 645.343, 645.575)For the purposes of NAC 645.400 to 645.467, inclusive, �school� includes:

���� 1. Any university, school or community college which is a part of the Nevada System of Higher Education, or any other university or college bearing the same or an equivalent accreditation.

���� 2. Any professional school or college licensed by the Nevada Commission on Postsecondary Education.

���� [Real Estate Adv. Comm�n, � X subsec. 3, eff. 10-31-75; A and renumbered as subsec. A par. 3, 1-4-78] — (NAC A by Real Estate Comm�n by R031-04, 11-30-2004; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.403Approval of school: Application. (NRS 645.190, 645.343)A school that wishes to offer a course to meet the educational requirements for original licensing under chapter 645 of NRS must apply to the Commission annually for approval on a form prescribed by the Division and pay the appropriate fees. The application must include, without limitation:

���� 1. The name and address of the school;

���� 2. The type of school and a description of its facilities;

���� 3. Information concerning the ownership of the school, including the business organization and the names and addresses of all directors, principals, officers and others having interests as owners;

���� 4. A list of the instructors, including, without limitation, any guest lecturers;

���� 5. A list of the courses to be offered and the title, objectives and topical syllabus for each course;

���� 6. A proposed schedule of each course for 1 year that includes, without limitation, the dates, times and locations of each class;

���� 7. An explanation for how each course meets the educational requirements for original licensing;

���� 8. The allotment of time for each subject;

���� 9. If a course is a distance education course, any information required by the Commission to determine whether the course satisfies the requirements of NAC 645.443;

���� 10. The titles, authors, publishers, dates of publication and editions of all required textbooks;

���� 11. A copy of any manual, handout or other course material to be used by the instructor or students;

���� 12. A copy of each examination to be used and the correct answer for each question;

���� 13. A statement of:

���� (a) The purpose of the school;

���� (b) The fees to be charged;

���� (c) The days, times and locations of classes;

���� (d) The number of quizzes and examinations;

���� (e) The grading systems, including the methods of testing and standards of grading;

���� (f) The requirements for attendance; and

���� (g) The location of the students� records;

���� 14. A statement as to whether the school or any instructor employed by the school has been disciplined by any governmental agency in this or any other state; and

���� 15. A statement of the requirement that to pass a course, a student must earn at least 75 percent of the points possible for the entire course.

���� (Added to NAC by Real Estate Comm�n, eff. 12-16-82; A by R031-04, 11-30-2004; R123-06, 6-1-2006; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.404Approval of school: Conditions of approval; evidence of licensure required from certain schools. (NRS 645.190, 645.343)

���� 1. If a school has applied for and received the Commission�s approval to offer courses to meet requirements for licensure under chapter 645 of NRS, the school shall, as a condition of the approval:

���� (a) Maintain a record of each student�s attendance and certification in any of those courses for 7 years after the student�s enrollment and shall have such records open to inspection by the Division, upon its request, during the school�s business hours.

���� (b) Upon a transferring student�s request, furnish the school to which the student is transferring a copy of his or her attendance record and certification for each of those courses which he or she has completed.

���� (c) Upon a student�s request, furnish the Division a transcript of the record of his or her grades and attendance.

���� 2. A school that does not meet the definition of a �school� set forth in subsection 1 of NAC 645.400 must provide evidence to the Division that the school is licensed to operate by the Commission on Postsecondary Education.

���� (Added to NAC by Real Estate Comm�n, eff. 12-16-82; A 12-27-91; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.407Approval of school: Notice of material change in information provided in application; annual renewal of approval; denial of renewal. (NRS 645.190, 645.343)

���� 1. Within 15 days after the occurrence of any material change in the information provided by the school in its application pursuant to NAC 645.403 which would affect its approval by the Commission, the school shall give the Division written notice of that change.

���� 2. To qualify for annual renewal of approval by the Commission, a school must submit to the Commission before July 1:

���� (a) A written certification, in a form prescribed by the Division, declaring that the school has met all applicable requirements of this chapter;

���� (b) A sworn statement, in a form prescribed by the Division, declaring that the information contained in the original application is current or, if it is not current, a list of all material changes; and

���� (c) Payment of the appropriate fee for each course for which renewal is being sought.

���� 3. The Commission may deny renewal of approval to any school that does not meet the standards required by this chapter.

���� 4. Within 60 days after a decision is made to deny renewal of approval, the Commission must give written notice of the decision and the basis for that decision by certified mail to the last known address of the school.

���� (Added to NAC by Real Estate Comm�n, eff. 12-16-82; A 4-27-84; A by R031-04, 11-30-2004) — (Substituted in revision for NAC 645.446)

���� NAC 645.410Approved schools: General requirements for certification of students. (NRS 645.190, 645.343)

���� 1. Except as otherwise provided in NAC 645.412, a school which the Commission has approved to give a course fulfilling the educational requirements for original licensing shall require each student to attend the required number of hours of instruction and take at least two examinations in the course as a condition of receiving certification for the course.

���� 2. The school may certify only the number of hours for which the course has been approved by the Commission.

���� 3. The entire course must be completed by the applicant or licensee to satisfy the licensing requirements.

���� 4. For the purposes of this section:

���� (a) An �hour of instruction� means 50 minutes or more; and

���� (b) One semester credit is equal to 15 hours of instruction.

���� [Real Estate Adv. Comm�n, � X part subsec. 8, eff. 10-31-75; A and renumbered as subsec. C pars. 5 & 6, 1-4-78; � X subsec. C par. 10, eff. 4-20-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 12-27-89; R031-04, 11-30-2004)

���� NAC 645.412Approved schools: Certification of students taking courses by correspondence. (NRS 645.190, 645.343)If the Commission approves a school to give a course of study which fulfills the educational requirements for an original license and the school offers the course by correspondence, the school shall:

���� 1. Require each student to:

���� (a) Take a closed-book final examination with a proctor present at a location designated by the school in its application for approval filed with the Commission;

���� (b) Take two progress examinations or quizzes in addition to the final examination;

���� (c) Prove his or her identity before the student is allowed to take any examination; and

���� (d) Complete each course within an established minimum and maximum time.

���� 2. Certify the completion of only the number of hours for which the course has been approved by the Commission. A portion of a course does not satisfy the requirements for a license.

���� (Added to NAC by Real Estate Comm�n, eff. 12-27-89)

���� NAC 645.420Approved schools: Misrepresentation in advertising prohibited. (NRS 645.190, 645.343)A school approved by the Commission shall not make any misrepresentation in its advertising about any course of instruction which it offers to fulfill requirements for licensing under this chapter.

���� [Real Estate Adv. Comm�n, � X subsec. C par. 9, eff. 1-4-78] — (NAC A by Real Estate Comm�n, 12-16-82)

���� NAC 645.425Approved schools: Instructors; guest lecturers; statement required in advertisements. (NRS 645.190, 645.343)A school which conducts courses approved by the Commission:

���� 1. May employ as instructors of those courses only persons who meet the qualifications set forth in NAC 645.426.

���� 2. Shall limit noncertificated guest lecturers who are experts in the related fields to a total of 9 instructional hours per approved course.

���� 3. Shall include a statement that the school is approved by the Commission on all advertisements of the school.

���� [Real Estate Adv. Comm�n, � X subsec. C par. 7, eff. 1-4-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 12-27-89; R146-99, 1-21-2000; R031-04, 11-30-2004)

���� NAC 645.426Instructors: Requirements for and restrictions on approval; appeal of denial of approval; periodic review and evaluation. (NRS 645.190, 645.343, 645.575)

���� 1. An instructor must have written approval from the Division before teaching an approved course.

���� 2. An applicant for approval as an instructor must apply on a form prescribed by the Division.

���� 3. The Division shall not, without the approval of the Commission, approve a person as an instructor if the person:

���� (a) Has been disciplined by the Commission or the Division acting on behalf of the Commission:

��������� (1) Within the immediately preceding 5 years; or

��������� (2) More than one time; or

���� (b) Has been determined in an administrative or judicial proceeding to have violated any statute, rule, regulation or order pertaining to real estate in this or any other state.

���� 4. A person may be approved as an instructor to teach an approved course relating to his or her principal occupation if:

���� (a) The person has:

��������� (1) A bachelor�s degree or a more advanced degree, plus at least 2 years of full-time experience, in the field in which he or she will be providing instruction;

��������� (2) Teaching experience of at least 75 hours in the field in which he or she will be providing instruction within the 3 years immediately preceding the date of the person�s application for approval plus at least 3 years of full-time experience in that field;

��������� (3) At least 6 years of full-time experience in the field in which the person will be providing instruction; or

��������� (4) Any combination of at least 6 years of college-level course work and full-time experience in the field in which the person will be providing instruction;

���� (b) The person has a good reputation for honesty, integrity and trustworthiness; and

���� (c) The person submits to the Division satisfactory documentation of his or her qualifications and a resume outlining his or her experience, education and teaching experience in the field in which the person will be providing instruction.

���� 5. If the Division denies an application for approval as an instructor, the applicant may appeal the decision of the Division by filing an appeal with the Commission not later than 30 days after the date on which the applicant received notification of the denial of the application for approval as an instructor.

���� 6. If the applicant files a timely appeal, the Commission will, as soon as practicable, hold a hearing concerning the denial of the application for approval as an instructor at a regularly scheduled meeting of the Commission and will:

���� (a) Affirm the decision of the Division to deny the application for approval as an instructor;

���� (b) Approve the instructor for a limited period and under such conditions as the Commission deems appropriate; or

���� (c) Reverse the decision of the Division to deny the application for approval as an instructor.

���� 7. The Division shall periodically review and evaluate each approved instructor.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004; A by R123-06, 6-1-2006)

���� NAC 645.427Instructors: Withdrawal of approval. (NRS 645.190, 645.343, 645.575)

���� 1. The Administrator may withdraw the approval of an instructor who:

���� (a) Does an inadequate job of teaching the subject matter of a course as evidenced by student evaluations or an audit conducted by the Division.

���� (b) Has been determined in any administrative or judicial proceeding to have violated any statute, rule, regulation or order pertaining to real estate.

���� (c) Has been convicted of, or entered a plea of guilty or nolo contendere to, any crime involving fraud, deceit, misrepresentation or moral turpitude; or

���� (d) Engages in inappropriate behavior in the classroom as evidenced by an audit conducted by the Division.

���� 2. Before withdrawing approval of the instructor of a course, the Administrator must notify the sponsor of the course of his or her intent to withdraw approval of the instructor. The notice must include the specific reasons upon which the Administrator is basing the decision to withdraw the approval of the instructor. Not later than 30 days after the date on which he or she receives the notice, a sponsor may provide a written response to the Administrator that clearly sets forth the reasons why the approval of the instructor should not be withdrawn and outlining any corrective measures that the sponsor will undertake. After the 30-day period has elapsed, the Administrator shall review the notice and any response submitted by the sponsor and shall:

���� (a) Withdraw approval of the instructor;

���� (b) Allow the instructor to remain approved if certain specific enumerated conditions are met; or

���� (c) Allow the continued approval of the instructor.

� If the Administrator decides to withdraw approval of the instructor, the withdrawal of approval of the instructor becomes effective upon the mailing of the Administrator�s decision to the sponsor of the course taught by the instructor by certified mail, return receipt requested, to the sponsor�s last known business address.

���� 3. If the Administrator withdraws approval of an instructor, the Division shall give credit to a student for completing the course if the student began the course before the sponsor received written notice of the withdrawal of approval of the instructor.

���� 4. The sponsor may appeal the decision of the Administrator to withdraw approval of an instructor by filing an appeal with the Commission not later than 30 days after the date on which the withdrawal of the approval of the instructor becomes effective.

���� 5. If the sponsor files a timely appeal, the Commission will, as soon as practicable, hold a hearing concerning the withdrawal of approval of the instructor at a regularly scheduled meeting and will:

���� (a) Affirm the decision of the Administrator to withdraw approval of the instructor;

���� (b) Suspend approval of the instructor for a limited period and under such conditions as the Commission deems appropriate; or

���� (c) Reverse the decision of the Administrator to withdraw approval of the instructor.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.428Instructors: Duties. (NRS 645.190, 645.343, 645.575)

���� 1. An instructor shall ensure that:

���� (a) Class sessions are commenced in a timely manner and are conducted for the full amount of time that is approved; and

���� (b) Each course is taught according to the course plan and instructor guide that was approved by the Commission, including the furnishing to students of appropriate student materials.

���� 2. An instructor shall conduct himself or herself in a professional and courteous manner when performing his or her instructional duties and shall conduct classes in a manner that demonstrates the following basic teaching skills:

���� (a) The ability to present instruction in a thorough, accurate, logical, orderly and understandable manner, to utilize illustrative examples as appropriate and to respond appropriately to questions from students;

���� (b) The ability effectively to utilize varied instructional techniques in addition to lectures, including, without limitation, class discussion, role-playing and other techniques;

���� (c) The ability to utilize varied instructional aids effectively to enhance learning;

���� (d) The ability to maintain an appropriate learning environment and effective control of a class; and

���� (e) The ability to interact with adult students in a positive manner that:

��������� (1) Encourages students to learn;

��������� (2) Demonstrates an understanding of varied student backgrounds;

��������� (3) Avoids offending the sensibilities of students; and

��������� (4) Avoids personal criticism of any other person, agency or organization.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.430Satisfaction of requirement for course in principles of real estate to obtain original license as broker or broker-salesperson. (NRS 645.190, 645.343)The course in principles, practices, ethics, law and procedures which is required for a salesperson�s license under subsection 1 of NRS 645.343 and was approved by the Commission before November 1, 1977, fulfills the requirement under subsection 2 of NRS 645.343 for a course of 3 semester units in the principles of real estate for an original broker�s or broker-salesperson�s license.

���� [Real Estate Adv. Comm�n, � X subsec. C par. 8, eff. 1-4-78] — (NAC A by Real Estate Comm�n, 12-16-82)

���� NAC 645.435Course required to obtain original license as salesperson. (NRS 645.190, 645.343)

���� 1. A course of instruction in real estate principles, practices, procedures, law and ethics which is designed to meet the educational requirements of an applicant for an original license as a salesperson must consist of:

���� (a) At least 90 hours of classroom lectures; or

���� (b) The equivalent in a correspondence or extension course.

���� 2. The content of the course must be divided among subjects listed in NAC 645.210, including:

���� (a) At least 45 hours on the principles and practices of real estate, which must include:

��������� (1) Brokerage and laws of agency, 21 hours.

��������� (2) Valuation and economics, 12 hours.

��������� (3) Finance, 12 hours.

���� (b) At least 45 hours on the law of property and the regulation of brokers and salespersons and the ethics of selling real estate, which must include:

��������� (1) Ownership, transfer and use of property, 25 hours.

��������� (2) Chapters 113, 116, 119, 119A, 645, 645C and 645D of NRS and the regulations adopted pursuant thereto, 18 hours.

��������� (3) Applied practice and statutory disclosures, 2 hours.

���� [Real Estate Adv. Comm�n, � X subsecs. 1 & 2, eff. 10-31-75; A and renumbered subsec. A pars. 1 & 2, 1-4-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 6-3-86; R031-04, 11-30-2004)

���� NAC 645.437Approval of course in broker management required to obtain original license as broker or broker-salesperson; exception. (NRS 645.190, 645.343)

���� 1. Except as otherwise provided in subsection 3, a course of instruction in broker management that is designed to fulfill the educational requirements for issuance of an original license which are described in paragraph (d) of subsection 2 of NRS 645.343 must be approved by the Commission.

���� 2. To be approved by the Commission, a course in broker management must include, without limitation:

���� (a) Six hours of instruction relating to office policy and procedure, risk management, errors and omissions, controlled business arrangements, compensation, employee-employer relationships and the status of independent contractors;

���� (b) Three hours of instruction relating to creating business plans;

���� (c) Three hours of instruction on forms used by real estate brokerages for real estate transactions;

���� (d) Six hours of instruction that provides an overview of programs for financing real estate transactions, including, without limitation, terminology relating to such programs, the cost of transactions, customary transaction closing costs, and transaction cost and net sheets;

���� (e) Six hours of instruction in state and local laws;

���� (f) Six hours of instruction on federal laws governing real estate transactions;

���� (g) Six hours of instruction on professional relationships between agents and their clients;

���� (h) Three hours of instruction on valuation of real estate and general principles of economics; and

���� (i) Six hours of instruction on emerging trends and practices.

���� 3. The Commission will accept, without prior approval, a course of instruction in broker management that is offered by any university, school or community college of the Nevada System of Higher Education, or any other university or college bearing the same or equivalent accreditation, if the course includes, at a minimum, the hours and subjects of instruction set forth in paragraphs (a) to (i), inclusive, of subsection 2.

���� (Added to NAC by Real Estate Comm�n by R092-00, 8-29-2000, eff. 1-1-2001; A by R031-04, 11-30-2004; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.440Courses required for original licensing: Approval of school. (NRS 645.190, 645.343)

���� 1. Except as otherwise provided in subsection 2, before any school offers or conducts a course of instruction designed to fulfill the educational requirements for issuance of an original license under chapter 645 of NRS, the school must be approved by the Commission.

���� 2. Unless the course is a course in broker management, the Commission will accept such a course from:

���� (a) Any university, school or community college of the Nevada System of Higher Education, or other university or college bearing the same or equivalent accreditation.

���� (b) The American Society of Appraisers, the Appraisal Institute or the International Association of Assessing Officers for courses in real estate appraisal consisting of not less than 45 hours of instruction. Forty-five hours of instruction shall be deemed to be the equivalent of 3 semester credits in appraisal.

���� [Real Estate Adv. Comm�n, � X subsec. B par. 1, eff. 1-4-78; � X subsec. F part par. 7, eff. 4-20-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 12-27-91; R092-00, 8-29-2000, eff. 1-1-2001; R031-04, 11-30-2004; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.441Courses required for original licensing: Unacceptable courses. (NRS 645.190, 645.343)

���� 1. The Division shall not accept an applicant�s completion of any course which is designed to prepare students for examination, commonly known as a �cram course,� as fulfillment of the educational requirements for the applicant�s original licensing.

���� 2. None of the following kinds of courses will be accepted from an applicant as fulfillment of the education which is required by subsections 1 to 4, inclusive, of NRS 645.343 for original licensing:

���� (a) Courses designed to develop or improve clerical, office or business skills that are not related to the activities described in NRS 645.030, 645.035 and 645.040, such as typing, shorthand, operation of business machines, the use of computers, the use of computer software, improvement of memory, or writing of letters and reports; or

���� (b) Business courses in advertising or psychology.

���� 3. The Division shall not accept a course in broker management required pursuant to paragraph (d) of subsection 2 of NRS 645.343 unless the course and the school that offers the course have been approved by the Commission.

���� (Added to NAC by Real Estate Comm�n, eff. 12-16-82; A by R092-00, 8-29-2000, eff. 1-1-2001; R031-04, 11-30-2004)

���� NAC 645.442Real estate examination: Restrictions on persons associated with school. (NRS 645.190, 645.343)

���� 1. An owner, instructor, or affiliate of a school approved by the Commission or other person associated with the school shall not take a real estate examination conducted by the Division or its agent unless he or she first submits to the Division:

���� (a) A written statement that his or her purpose in taking the examination is to fulfill one of the requirements for obtaining a license; and

���� (b) A written agreement to apply for a license upon passing the examination.

���� 2. Such a school or anyone associated with its operation shall not:

���� (a) Solicit information from any person for the purpose of discovering past questions asked on any such examination; or

���� (b) Distribute to any person a copy of the questions or otherwise communicate to the person the questions without the prior written approval of the owner of the copyright to the questions.

���� (Added to NAC by Real Estate Comm�n, eff. 12-16-82)

���� NAC 645.443Approval of distance education course. (NRS 645.190, 645.575)

���� 1. A person who requests approval of a distance education course must demonstrate to the satisfaction of the Commission that the proposed distance education course satisfies the following requirements:

���� (a) The course must be designed to ensure that students actively participate in the instructional process by utilizing techniques that require substantial interaction with the instructor, other students or a computer program. If the subject matter of the course is such that the learning objectives for the course cannot be reasonably accomplished without direct interaction between the instructor and the students, the course design must provide for such interaction.

���� (b) If the course does not provide students with the opportunity for continuous audio and visual communication with the instructor during the presentation of the course, the course must utilize testing and remedial processes appropriate to ensure mastery of the subject matter of the course by the students.

���� (c) If the course involves self-paced study, the course must be designed so that the time required for a student of average ability to complete the course is within the number of hours for which the course is approved, and the sponsor of the course shall utilize a system which ensures that students have actually performed all tasks designed to ensure participation and mastery of the subject matter of the course by the students.

���� (d) The proposed methods of instruction used in the course must be appropriate to the proposed learning objectives of the course, and the scope and depth of the instructional materials must be consistent with the proposed learning objectives.

���� (e) The sponsor of the course shall provide appropriate technical support to enable students to complete the course satisfactorily.

���� (f) An approved instructor must be reasonably available to respond timely to questions asked by students concerning the subject matter of the course and to direct students to additional sources of information. For the purposes of this paragraph, a response by an approved instructor shall be deemed timely if the response is made within 2 business days after the question is submitted.

���� (g) The sponsor of the course shall provide students with an orientation or information package which contains all information that the Division requires to be provided to students and all necessary information about the course, including, without limitation, information concerning fees and refund policies, subject matter and learning objectives, procedures and requirements for satisfactory completion, any special requirements with regard to computer hardware and software or other equipment, and instructor and technical support. The sponsor shall make available to students technical support relating to the use of any computer hardware or software, or other equipment or technology needed to complete the course.

���� (h) The sponsor of the course shall utilize procedures which reasonably ensure that a student who receives continuing education credit for completing the course actually performed all the work required to complete the course. If the course involves independent study by students, such procedures must include, without limitation, the opportunity for direct contact by the sponsor with the student at the student�s home or business via the telephone or electronic mail and a signed statement by the student certifying that he or she personally completed all course work. The sponsor shall retain such signed statements and records of student contact together with all other course records the sponsor must maintain.

���� 2. A sponsor seeking approval of a computer-based distance education course must submit a complete copy of the course to the Division in the medium to be used and, if requested, must make available, at a date and time satisfactory to the Division and at the sponsor�s expense, all equipment and software necessary to enable the Division to review the course. In the case of an Internet-based course, the sponsor shall provide the Division with access to the course via the Internet at no charge at a date and time satisfactory to the Division.

���� 3. In determining whether to approve a distance education course pursuant to this section, the Commission will consider whether:

���� (a) The course consists of at least 3 hours of instruction;

���� (b) Students are required to complete a written examination proctored by a person acceptable to the Division or using a secure electronic method acceptable to the Division; and

���� (c) The course is presented by an accredited college or university that offers distance education in other disciplines, or whether the course design and method of delivery has been accredited by an accrediting agency which accredits distance education and which is approved by the Commission. For an accrediting agency to be approved by the Commission for the purposes of this paragraph, the accrediting agency must use the following considerations when making its determination on whether to accredit a distance education course:

��������� (1) The mission statement of the sponsor of the course;

��������� (2) The minimum design of the course and the procedures for updating the course;

��������� (3) The interactivity of the instruction with the students;

��������� (4) Whether the instruction provided in the course teaches mastery of the course material;

��������� (5) The support services that are available to students;

��������� (6) The medium through which the course is delivered to students;

��������� (7) A time study of the range of instructional hours for which a course should be approved or accredited;

��������� (8) For each module of instruction, whether there is:

�������������� (I) At least one learning objective for the module of instruction;

�������������� (II) A structured learning method to enable the student to achieve each such learning objective;

�������������� (III) A method of assessment of the student�s performance during the module of instruction; and

�������������� (IV) A method of remediation pursuant to which a student who, based on the assessment of his or her performance, is determined to be deficient in his or her mastery of the course material may repeat the module until the student understands the course material; and

��������� (9) Whether a complete syllabus or student manual, or both, for all courses or programs is provided in written form and includes accurate and clearly stated information about admissions, progression, completion, criteria, dismissal and any applicable licensing requirements.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.4432Duties of sponsor of approved course; period and renewal of approval of course; review and audit by Division; grounds for withdrawal of or refusal to renew approval of course; disciplinary action against licensee who sponsors approved course. (NRS 645.190, 645.575)

���� 1. The sponsor of an approved course:

���� (a) Shall not allow a licensee to pass the course by taking an examination without having the required attendance;

���� (b) Shall admit authorized personnel of the Division to audit and evaluate the presentation of the course;

���� (c) Shall notify the Division within 15 days after making any material change in the course; and

���� (d) Shall not present a course for the main purpose of selling products and shall limit the announcement of products during the course to not more than 1 minute for each credit hour.

���� 2. The Commission�s approval of:

���� (a) A course to meet the educational requirements for an original license;

���� (b) A course for postlicensing education; and

���� (c) A course for continuing education,

� is effective for 1 year after the original approval or a renewal.

���� 3. The school or sponsor must apply for renewal on a form provided by the Division and describe on that form any changes in the course. An application for renewal must be filed at least 2 weeks before the previous approval expires. If the school or sponsor does not timely file the application for renewal, the school or sponsor must apply for an original approval.

���� 4. Each approved course and instructor is subject to review and audit by the Division. If the Division conducts such a review or audit, the sponsor shall make available to the Division all records requested which are necessary to the review.

���� 5. The Division shall renew the approval of a course if the information concerning the course has been updated and there is no material change in the content of the course.

���� 6. Each of the following acts and conditions is a ground for the Commission to withdraw or refuse to renew its approval of a course:

���� (a) The curriculum or instruction, as shown by evaluations or audits, is of poor quality.

���� (b) The violation of any provision of this chapter relating to continuing education.

���� (c) The course is not taught within the last period for which the course is approved.

���� (d) The sponsor of the course has made a false statement or has presented any false information in connection with an application for the approval of the course, the renewal of such approval or the approval of the sponsor.

���� (e) The sponsor of the course or any official or instructor employed by the sponsor has refused or failed to comply with any provision of this chapter or chapter 645 of NRS.

���� (f) The sponsor of the course or any official or instructor employed by the sponsor has provided false or incorrect information in connection with any report the sponsor is required to submit to the Commission.

���� (g) The sponsor of the course has engaged in a pattern of consistently cancelling scheduled courses.

���� (h) The sponsor of the course has remitted to the Commission in payment for required fees a check which was dishonored by a bank.

���� (i) An instructor employed by the sponsor of an approved course fails to conduct approved courses in a manner that demonstrates possession of the teaching skills described in this chapter.

���� (j) A court of competent jurisdiction has found the sponsor of the approved course or any official or instructor employed by the sponsor to have violated, in connection with the offering of education courses, any applicable federal or state law or regulation:

��������� (1) Prohibiting discrimination on the basis of disability;

��������� (2) Requiring places of public accommodation to be in compliance with prescribed standards relating to accessibility; or

��������� (3) Requiring that courses related to licensing or certification for professional or trade purposes be offered in a place and manner accessible to persons with disabilities.

���� (k) The sponsor of the course or any official or instructor employed by the sponsor has been disciplined by the Commission or any other occupational licensing agency in this State or any other jurisdiction.

���� (l) The sponsor of the course or any official or instructor employed by the sponsor has collected money for an educational course but has refused or failed to provide the promised instruction.

���� 7. A licensee who is the sponsor of an approved course is subject to disciplinary action pursuant to this chapter for any dishonest, fraudulent or improper conduct by the licensee, or an instructor of the approved course employed by the licensee, in connection with activities related to the approved course.

���� [Real Estate Adv. Comm�n, � X subsec. F pars. 13 & 14, 4-20-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 4-27-84; 6-3-86; A by Real Estate Div., 3-1-96; A by Real Estate Comm�n by R031-04, 11-30-2004) — (Substituted in revision for NAC 645.465)

���� NAC 645.4434Approved courses: Withdrawal of approval. (NRS 645.190, 645.575)

���� 1. If the Administrator determines, whether pursuant to student evaluations, to an audit or investigation conducted by the Division, or otherwise, that an approved course does not meet the standards for such a course set forth in this chapter, the Administrator shall notify the sponsor of the course of his or her intent to withdraw approval of the course. The notice must include the specific reasons upon which the Administrator is basing the decision to withdraw approval of the course. Not later than 30 days after the date on which he or she receives the notice, the sponsor may provide a written response to the Administrator that clearly sets forth the reasons why approval of the course should not be withdrawn and outlining any corrective measures that the sponsor will undertake. After the 30-day period has elapsed, the Administrator shall review the notice and any response submitted by the sponsor and:

���� (a) Withdraw approval of the course;

���� (b) Allow the course to remain approved if certain specific enumerated conditions are met; or

���� (c) Allow the continued approval of the course.

� If the Administrator decides to withdraw approval of the course, the withdrawal of approval of the course becomes effective upon the mailing of the Administrator�s decision to withdraw approval to the sponsor by certified mail, return receipt requested to the sponsor�s last known business address.

���� 2. If the Administrator withdraws approval of a course, the Division shall give credit to a student for completing the course if the student began the course before the sponsor received written notice of the withdrawal of approval of the course.

���� 3. The sponsor may appeal the decision of the Administrator to withdraw approval of a course by filing an appeal with the Commission not later than 30 days after the date on which the withdrawal of the approval of the course becomes effective.

���� 4. If the sponsor files a timely appeal, the Commission will, as soon as practicable, hold a hearing concerning the withdrawal of approval of the course at a regularly scheduled meeting and will:

���� (a) Affirm the decision of the Administrator to withdraw approval of the course;

���� (b) Suspend approval of the course for a limited period and under such conditions as the Commission deems appropriate; or

���� (c) Reverse the decision of the Administrator to withdraw approval of the course.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004; A by R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.4436Approved courses: Reapproval. (NRS 645.190, 645.575)Except as otherwise provided in this section, the Division shall reapprove an approved course if no material changes in the course have occurred since the course was last approved or reapproved. If the course is designated as presenting an update on law and legislation, the Division shall reapprove the course only once.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004; A by R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.4438Approved courses: Award of certificate of completion and inclusion of name on roster of attendees. (NRS 645.190, 645.575)

���� 1. To receive a certificate of completion for an approved course and have his or her name included on the roster of attendees which the sponsor of the course submits to the Division pursuant to paragraph (b) of subsection 4 of NAC 645.455, a student must:

���� (a) Direct his or her attention to the instruction being provided and refrain from engaging in activities unrelated to the instruction; and

���� (b) Refrain from engaging in activities which are distracting to other students or the instructor, or which otherwise disrupt the orderly conduct of a class, including, without limitation, the use of cellular telephones, laptop computers, tablet computers or other electronic devices.

���� 2. An instructor:

���� (a) Shall deny the award of a certificate of completion to a student who fails to satisfy the conditions set forth in subsection 1; and

���� (b) Shall not include the name of the student on the roster of attendees which the sponsor of the course submits to the Division pursuant to paragraph (b) of subsection 4 of NAC 645.455.

���� 3. If an instructor denies the award of a certificate of completion to a student, the student may, within 30 days after that denial, file a written request with the Administrator to review the matter. If the written request contains allegations which, if true, would qualify the applicant to receive a certificate of completion and credit for completing the course, the Administrator shall set the matter for an informal hearing before him or her to be conducted as soon as practicable.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004; A by R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.444Approved courses: Evaluation by students. (NRS 645.190, 645.575)

���� 1. Each approved course and each instructor of an approved course must be evaluated by students on a form prescribed by the Division and provided by the sponsor during every course offering.

���� 2. The sponsor shall:

���� (a) Arrange for the collection of the completed evaluations by a person other than the instructor of the approved course; and

���� (b) Mail or deliver copies of the completed evaluations to the Division within 10 working days after the last day of class for the course.

���� (Added to NAC by Real Estate Comm�n by R031-04, 11-30-2004, eff. 10-1-2005)

Postlicensing Education

���� NAC 645.4442Courses required for first-time licensees; exempt licensees; standards for courses; effect of noncompliance. (NRS 645.190, 645.343, 645.575, 645.630, 645.633)

���� 1. Except as otherwise provided in subsection 2, each first-time licensee shall take a prescribed postlicensing course of education that focuses on practical applications of real estate transactions. The postlicensing course:

���� (a) Must not repeat the content of the course work required to meet the educational requirements for an original license;

���� (b) Must constitute the education required to be completed by a licensee within the first year immediately after initial licensing pursuant to NRS 645.575;

���� (c) Must be offered in modules;

���� (d) Must be provided through live instruction in which the licensee and the instructor are in the same room, except that first-time licensees who live in a rural area may, with the prior written approval of the Division, take the postlicensing course as an interactive or televideo course that involves interaction with the instructor and other students; and

���� (e) Must provide the Division with proof of completion within the first year immediately after initial licensing.

���� 2. The requirement for postlicensing education set forth in subsection 1 does not apply to a first-time licensee who:

���� (a) Holds a real estate license issued by another state or territory of the United States, or the District of Columbia, on the date on which the first-time licensee obtains a real estate license issued by the State of Nevada;

���� (b) Held a license as a real estate broker, real estate broker-salesperson or real estate salesperson issued by the State of Nevada within the 5 years immediately preceding the date on which the first-time licensee obtained a license as a real estate salesperson; or

���� (c) Is licensed as a real estate broker-salesperson and obtained the qualifications for licensure as a real estate broker-salesperson pursuant to the provisions of subsection 4 of NRS 645.343.

���� 3. The postlicensing course may include material that has not previously been approved or allowed for continuing education credit. Courses approved for postlicensing education will not be accepted or approved as a course for continuing education.

���� 4. The curriculum for postlicensing education must contain at least 15 modules that include, without limitation:

���� (a) Real estate contracts, including the writing and presenting of a purchase agreement and qualifying prospects;

���� (b) The listing process, market analysis and inspections;

���� (c) Communication, technology and records management, including time management, goal setting and devising a plan of action;

���� (d) Buyer representation, including the buyer�s brokerage contract, fiduciary duties, disclosures, cooperation between agents and new-home tracts;

���� (e) Professional conduct, etiquette and ethics;

���� (f) Advertising, including Regulation Z of the Truth in Lending Act of the Federal Trade Commission issued by the Board of Governors of the Federal Reserve System, 12 C.F.R. Part 226, fair housing, the multiple-listing service, Internet websites and electronic mail;

���� (g) Proceeds of sale, costs of sale and cost sheets;

���� (h) Agency relationships;

���� (i) Land;

���� (j) Regulatory disclosures, including disclosures required by federal, state and local governments;

���� (k) Property management and the management of common-interest communities;

���� (l) Escrow, title and closing processes;

���� (m) Financing;

���� (n) Negotiation; and

���� (o) Tax opportunities and liabilities related to the client.

���� 5. Each first-time licensee must complete an additional 12 hours of continuing education within the first 2 years immediately after initial licensing. The additional 12 hours of continuing education:

���� (a) Must include 3 hours in each of the following areas:

��������� (1) Agency relationships;

��������� (2) Nevada law, with an emphasis on recent statutory and regulatory changes;

��������� (3) Contracts; and

��������� (4) Ethics.

���� (b) Must be provided through live instruction in which the licensee and the instructor are in the same room, except that first-time licensees who live in a rural area may, with the prior written approval of the Division, take the additional continuing education course as an interactive or televideo course that involves interaction with the instructor and other students.

���� 6. A first-time licensee who fails to comply with the requirements for postlicensing education set forth in this section is subject to immediate involuntary inactivation of the license by the Division and an administrative fine in the amount set forth in subsection 1 of NAC 645.695.

���� 7. As used in this section, �rural area� means any area which is more than 100 miles from a city in this State whose population is 40,000 or more.

���� (Added to NAC by Real Estate Comm�n by R031-04, 11-30-2004, eff. 1-1-2006; A by R123-06, 6-1-2006; R093-10, 5-30-2012)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on May 30, 2012 (LCB File No. R093-10), which amended this section, contains the following provisions not included in NAC:

����� �1. The amendatory provisions of section 1 of this regulation [NAC 645.4442] apply only to first-time licensees whose licenses expire on or after July 1, 2012.

����� 2. The amendatory provisions of section 3 of this regulation [NAC 645.448] apply only to licensees whose licenses expire on or after July 1, 2013.

����� 3. The amendatory provisions of section 4 of this regulation [NAC 645.695] apply only to:

����� (a) A first-time licensee whose license expires on or after July 1, 2012.

����� (b) A licensee whose license expires on or after July 1, 2013.�

���� NAC 645.4444Approval and accreditation of courses; certificate of completion. (NRS 645.190, 645.575)

���� 1. An application for the approval of a course for postlicensing education must be submitted to the Division on a form provided by the Division for review and presentation to the Commission.

���� 2. The Commission will not grant retroactive approval for a course in postlicensing education.

���� 3. The Commission will grant credit for a course for postlicensing education if the course meets the requirements set forth in subsection 4 of NAC 645.4442 and the sponsor of the course:

���� (a) Certifies the attendance of the licensees who take the course for credit.

���� (b) Maintains for at least 4 years a record of attendance which contains the following information with respect to each licensee who has taken the course for credit:

��������� (1) The name of the licensee in attendance and the number of his or her license;

��������� (2) The title and number of the course;

��������� (3) The hours of instruction attended and the dates of attendance by the licensee; and

��������� (4) A statement that the licensee has successfully completed the course.

���� (c) Assures the Commission that an approved instructor will preside throughout the course.

���� (d) Requires each licensee who takes the course to:

��������� (1) Take a closed-book final examination with a proctor present at a location designated by the sponsor in its application for approval filed with the Division and to receive a score of at least 75 percent to pass the course;

��������� (2) Prove his or her identity before the licensee is allowed to take any examination; and

��������� (3) Complete the entire course to receive credit for taking the course.

���� (e) Gives credit for only the number of hours for which the course has been approved by the Commission to a licensee who completes the course.

���� (f) Publishes a policy for retaking an examination which a licensee has failed.

���� 4. If a course for postlicensing education has been approved, the sponsor of the course shall provide a certificate of completion to the licensee upon his or her completion of the course. The certificate must contain:

���� (a) The name of the sponsor;

���� (b) The name of the licensee and his or her license number;

���� (c) The title of the course and the number of hours for which the course has been approved;

���� (d) The dates of instruction;

���� (e) The number assigned to the course by the Division and a statement that the course was approved by the Commission;

���� (f) The signature of the person who is authorized to sign for the sponsor; and

���� (g) A statement indicating that the licensee fulfilled the requirements to pass the course.

���� (Added to NAC by Real Estate Comm�n by R031-04, 11-30-2004, eff. 7-1-2005; A by R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.4446Information required on course materials; restriction on attendance. (NRS 645.190, 645.575)

���� 1. If a course has been approved and is being offered for postlicensing education, the sponsor must state on all the course materials:

���� (a) That the course is approved for postlicensing education in Nevada;

���� (b) The number of hours of credit for postlicensing education for which the course is approved; and

���� (c) The number of the sponsor assigned by the Division.

���� 2. If a course offered by a sponsor that is a professional organization has been approved for postlicensing education, the sponsor shall not restrict attendance at the course to members of that organization.

���� (Added to NAC by Real Estate Comm�n by R031-04, 11-30-2004, eff. 7-1-2005)

���� NAC 645.4448Notice of policy of sponsor concerning cancellations and refunds. (NRS 645.190, 645.575)Any advertising, promotional brochure or form for registration for a course for postlicensing education must contain, in writing, the policy of the sponsor concerning cancellations and refunds.

���� (Added to NAC by Real Estate Comm�n by R031-04, 11-30-2004, eff. 7-1-2005)

Continuing Education

���� NAC 645.445General requirements for renewal or reinstatement of license. (NRS 645.190, 645.575)

���� 1. To renew an active license, the licensee must provide the Division with proof that he or she has met the requirements set forth in NAC 645.448.

���� 2. To reinstate a license which has been placed on inactive status, a person must provide the Division with proof that he or she has met the requirements set forth in NAC 645.448.

���� 3. For the purpose of compliance with this section, 50 or more minutes of actual instruction constitutes a clock hour and initial licensing refers to the first issuance of a real estate license of any kind in Nevada.

���� [Real Estate Adv. Comm�n, � X subsec. F pars. 1-4 & 8, eff. 4-20-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 4-27-84; 12-27-89; R093-10, 5-30-2012)

���� NAC 645.448Specific requirements for renewal of license other than initial license and for reinstatement of license. (NRS 645.190, 645.575, 645.630, 645.633)

���� 1. Except as otherwise provided in subsection 3, a real estate salesperson who wishes to renew his or her license must complete at least 48 hours of continuing education at approved educational courses, seminars or conferences during the license renewal period. Twenty-four of the hours must be completed before the end of each 2-year period. Each licensee must provide the Division with proof of completion before the end of each 2-year period. Not less than 12 of the hours in each 2-year period must be devoted to ethics, professional conduct or the legal aspects of real estate, including:

���� (a) Three hours in the area of agency relationships;

���� (b) Three hours in the area of Nevada law with an emphasis on recent statutory and regulatory changes;

���� (c) Three hours in the area of contracts; and

���� (d) Three hours in the area of ethics.

���� 2. Except as otherwise provided in subsection 3, a real estate broker or real estate broker-salesperson who wishes to renew his or her license must complete at least 48 hours of continuing education at approved educational courses, seminars or conferences during the license renewal period. Twenty-four of the hours must be completed before the end of each 2-year period. Each licensee must provide the Division with proof of completion before the end of each 2-year period. Not less than 15 of the hours in each 2-year period must be devoted to ethics, professional conduct or the legal aspects of real estate, including:

���� (a) Three hours in the area of agency relationships;

���� (b) Three hours in the area of Nevada law with an emphasis on recent statutory and regulatory changes;

���� (c) Three hours in the area of contracts;

���� (d) Three hours in the area of ethics; and

���� (e) Three hours in the area of broker management.

���� 3. The requirements for continuing education set forth in subsections 1 and 2 do not apply to the renewal of a license upon the expiration of the initial license.

���� 4. If a license has been placed on inactive status and the licensee wishes to have the license reinstated, the licensee must comply with the following requirements:

���� (a) If the license was on inactive status for 1 year or less, all of which was during the period of the initial license, the licensee must complete the postlicensing course described in NAC 645.4442.

���� (b) If the license was on inactive status for more than 1 year but less than 2 years, any part of which was during the period of the initial license, the licensee must complete at approved educational courses, seminars or conferences:

��������� (1) The postlicensing course described in NAC 645.4442; and

��������� (2) At least 18 hours of continuing education. Not less than 12 of the hours must be devoted to ethics, professional conduct or the legal aspects of real estate, including:

���� ��������� (I) Three hours in the area of agency relationships;

�������������� (II) Three hours in the area of Nevada law with an emphasis on recent statutory and regulatory changes;

�������������� (III) Three hours in the area of contracts; and

�������������� (IV) Three hours in the area of ethics.

���� (c) If the license was on inactive status for 2 years or less, no part of which was during the period of the initial license, the licensee must complete at least 24 hours of continuing education at approved educational courses, seminars or conferences. Not less than 12 of the hours must be devoted to ethics, professional conduct or the legal aspects of real estate, including:

��������� (1) Three hours in the area of agency relationships;

��������� (2) Three hours in the area of current Nevada law with an emphasis on recent statutory and regulatory changes;

��������� (3) Three hours in the area of contracts; and

��������� (4) Three hours in the area of ethics.

���� (d) If the license was on inactive status for more than 2 years, any part of which was during the period of the initial license, the licensee must complete at approved educational courses, seminars or conferences:

��������� (1) The postlicensing course described in NAC 645.4442; and

��������� (2) At least 24 hours of continuing education. Not less than 12 of the hours must be devoted to ethics, professional conduct or the legal aspects of real estate, including:

�������������� (I) Three hours in the area of agency relationships;

�������������� (II) Three hours in the area of current Nevada law with an emphasis on recent statutory and regulatory changes;

�������������� (III) Three hours in the area of contracts; and

�������������� (IV) Three hours in the area of ethics.

���� (e) If the license was on inactive status for more than 2 years, no part of which was during the period of the initial license, the licensee must complete at least 48 hours of continuing education at approved educational courses, seminars or conferences. Not less than 24 of the hours must be devoted to ethics, professional conduct or the legal aspects of real estate, including:

��������� (1) Six hours in the area of agency relationships;

��������� (2) Six hours in the area of current Nevada law with an emphasis on recent statutory and regulatory changes;

��������� (3) Six hours in the area of contracts; and

��������� (4) Six hours in the area of ethics.

���� 5. Not more than 3 hours of any of the required hours in each 2-year period set forth in this section for continuing education may be taken in courses for personal development.

���� 6. At least 50 percent of the total hours of required continuing education set forth in this section must be taken through live instruction by a licensee.

���� 7. A licensee who fails to comply with the requirements for continuing education set forth in this section is subject to immediate involuntary inactivation of the license by the Division and an administrative fine in the amount set forth in subsection 1 of NAC 645.695.

���� 8. As used in this section, �initial license� means the license of a licensee who:

���� (a) Did not hold a real estate license issued by another state or territory of the United States, or the District of Columbia, on the date on which the licensee obtained a real estate license issued by the State of Nevada;

���� (b) Had not held a license as a real estate broker, real estate broker-salesperson or real estate salesperson issued by the State of Nevada within the 5 years immediately preceding the date on which the licensee obtained a license as a real estate salesperson; or

���� (c) Is licensed as a real estate broker-salesperson and obtained the qualifications for licensure as a real estate broker-salesperson pursuant to the provisions of subsection 2 of NRS 645.343.

���� (Added to NAC by Real Estate Comm�n by R031-04, 11-30-2004, eff. 1-1-2006; A by R123-06, 6-1-2006; R093-10, 5-30-2012)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on May 30, 2012 (LCB File No. R093-10), which amended this section, contains the following provisions not included in NAC:

����� �1. The amendatory provisions of section 1 of this regulation [NAC 645.4442] apply only to first-time licensees whose licenses expire on or after July 1, 2012.

����� 2. The amendatory provisions of section 3 of this regulation [NAC 645.448] apply only to licensees whose licenses expire on or after July 1, 2013.

����� 3. The amendatory provisions of section 4 of this regulation [NAC 645.695] apply only to:

����� (a) A first-time licensee whose license expires on or after July 1, 2012.

����� (b) A licensee whose license expires on or after July 1, 2013.�

���� NAC 645.450Standards for courses. (NRS 645.190, 645.575)

���� 1. A course for continuing education must contain:

���� (a) Current information on real estate which will improve the professional knowledge of the licensee with regard to the areas described in subsection 2 and enable him or her to give better service to the public.

���� (b) Information that relates to Nevada laws and regulations relating to real estate transactions in this State.

���� 2. The following areas are acceptable for courses in continuing education:

���� (a) Ethics of selling real estate;

���� (b) Legislative issues which concern the practice of real estate or licensees, including, without limitation, recent legislation and revisions to this chapter;

���� (c) The administration of real estate law and regulations, including licensing and enforcement;

���� (d) Real estate financing, including mortgages and other financing techniques;

���� (e) The measurement and evaluation of the market for real estate, including evaluations of sites, market data and studies of feasibility;

���� (f) The administration of real estate brokerage, including the management of the office, trust accounts and employees� contracts;

���� (g) Real estate mathematics;

���� (h) The management of real property, including residential and commercial leasing agreements, procedures for accounting and contracts for management;

���� (i) The exchange of real property;

���� (j) Planning and zoning for land use;

���� (k) Real estate securities and syndications;

���� (l) Accounting and taxation as applied to real property;

���� (m) The development of land, including, without limitation, issues relating to the development or redevelopment of farms and ranches;

���� (n) Agency and subjects related to agency;

���� (o) The use of calculators and other technologies as applied to the practice of real estate;

���� (p) The preparation of real estate contracts;

���� (q) Personal development courses, including, without limitation, cross-cultural communications;

���� (r) International real estate transactions;

���� (s) Antitrust law;

���� (t) Issues relating to consumer protection;

���� (u) Disclosures required during the sale or lease of real property, including, without limitation, information required pursuant to NRS 116.4103, 116.4109 and 116B.760;

���� (v) Commercial real estate; and

���� (w) Environmental issues, including, without limitation, issues relating to energy and water conservation and environmental responsibility.

���� 3. The Division may, upon application and on behalf of the Commission, approve a course conducted by any other school, professional society or organization if the Division finds that the course meets the standards established by the Commission for continuing education.

���� 4. The following kinds of courses and activities do not meet the standards for continuing education:

���� (a) A course that is designed to prepare students for examination, commonly known as a �cram course.�

���� (b) A course that is designed to develop or improve clerical, office or business skills that are not related to the activities described in NRS 645.030, 645.035 and 645.040, such as typing or keyboarding, shorthand, the operation of business machines, the use of computers, the use of computer software, speed-reading, the improvement of memory, and writing letters and reports.

���� (c) A meeting for the promotion of sales, a program of office training, or other activity which is held as part of the general business of the licensee.

���� (d) A course for the orientation of licensees, such as a course offered for that purpose through local real estate boards.

���� (e) A course for the development of instructors.

���� 5. The Division, on behalf of the Commission, will not approve more than:

���� (a) Seven full hours of credit per day of instruction in a classroom course for continuing education if a final examination is not given; or

���� (b) Eight full hours of credit per day of instruction in a classroom course for continuing education if a final examination is given.

���� [Real Estate Adv. Comm�n, � X subsec. F pars. 5-7, eff. 4-20-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 6-3-86; A by Real Estate Div., 11-30-87; 11-8-88; A by Real Estate Comm�n, 12-27-89; 5-14-96; R146-99, 1-21-2000; R031-04, 11-30-2004; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.455Approval and accreditation of courses; certificate of completion; appeal of denial of approval of course; hearing. (NRS 645.190, 645.575)

���� 1. An application for the approval of a course for continuing education must be submitted to the Division on a form provided by the Division.

���� 2. The Division, on behalf of the Commission, may grant retroactive approval for a course for continuing education.

���� 3. The Division, on behalf of the Commission, will grant credit for a course for continuing education only if:

���� (a) The course consists of at least 3 hours of distance education or 1 hour of instruction in a classroom.

���� (b) For a course of instruction in a classroom, the sponsor of the course:

��������� (1) Certifies the attendance of licensees who take the course for credit.

��������� (2) Maintains for at least 4 years a record of attendance which contains the following information with respect to each licensee who has taken the course for credit:

�������������� (I) The name of the licensee in attendance and the number of his or her license.

�������������� (II) The title and number of the course.

�������������� (III) The hours of instruction attended and dates of attendance by the licensee.

�������������� (IV) A statement that the licensee has successfully completed the course, if applicable.

��������� (3) Assures the Division that an approved instructor will preside throughout the course.

���� (c) For a course of distance education, the sponsor of the course:

��������� (1) Requires each student to:

�������������� (I) Take a closed-book final examination with a proctor present at a location designated by the sponsor in its application for approval filed with the Division and receive a score of at least 75 percent to pass the course;

�������������� (II) Prove his or her identity before the student is allowed to take any examination;

�������������� (III) Complete an entire course to receive credit for taking the course; and

�������������� (IV) Complete each course within an established minimum and maximum time.

��������� (2) Gives credit for only the number of hours for which the course has been approved by the Division to a licensee who has completed the course.

��������� (3) Publishes a policy for retaking an examination which a licensee failed.

��������� (4) Maintains for at least 4 years a record of completion of the course which contains the following information with respect to each licensee who has taken the course for credit:

�������������� (I) The name of the licensee who completes the course and the number of his or her license.

�������������� (II) The title and number of the course.

�������������� (III) A statement that the licensee has successfully completed the course which includes, without limitation, the date that the course was completed and the number of hours completed.

���� 4. If a course is approved, the sponsor shall:

���� (a) Provide a certificate of completion to the licensee upon his or her completion of the course. The certificate must contain the:

��������� (1) Name of the sponsor;

��������� (2) Name of the licensee and his or her license number;

��������� (3) Number of hours of credit for continuing education for which the course is approved;

��������� (4) Dates of instruction for a course of instruction in a classroom;

��������� (5) Date of completion of the course for a course of distance education;

��������� (6) Title of the course or seminar;

��������� (7) Number of the course assigned by the Division and a statement that the course was approved by the Division on behalf of the Commission;

��������� (8) Signature of the person authorized to sign for the sponsor;

��������� (9) A statement of whether the licensee successfully completed the course if an examination was given; and

��������� (10) Manner in which instruction for the course was delivered.

���� (b) Within 3 business days after the completion of an approved course of continuing education, electronically submit to the Division, in a format provided by the Division, a roster which includes the name of each licensee or holder of a permit who successfully completed the course.

���� 5. If the Division, on behalf of the Commission, denies an application for approval of a course of continuing education, the applicant may appeal the decision of the Division by filing an appeal with the Commission not later than 30 days after the date on which the applicant received notification of the denial of the application for approval of the course.

���� 6. If an applicant files a timely appeal pursuant to subsection 5, the Commission will, as soon as practicable, hold a hearing concerning the denial of the application for approval of the course of continuing education at a regularly scheduled meeting of the Commission and will:

���� (a) Affirm the decision of the Division to deny the application for approval of the course; or

���� (b) Reverse the decision of the Division to deny the application for approval of the course.

���� [Real Estate Adv. Comm�n, � X subsec. F par. 10, eff. 4-20-78] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 8-26-83; 12-27-89; 5-14-96; R146-99 & R186-99, 1-21-2000; R092-00, 8-29-2000; R031-04, 11-30-2004; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.457Information required on course materials; restriction of attendance. (NRS 645.190, 645.575)

���� 1. If a course has been approved and is being offered for continuing education, the sponsor must state on all the course materials:

���� (a) That the course is approved for continuing education in Nevada;

���� (b) The number of hours of credit for continuing education for which the course is approved;

���� (c) The number of the sponsor assigned by the Division; and

���� (d) The manner in which instruction for the course will be delivered.

���� 2. If a course offered by a sponsor that is a professional organization has been approved for continuing education, the sponsor shall not restrict attendance at the course to members of that organization.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81; A 12-16-82; R031-04, 11-30-2004)

���� NAC 645.458Notice of policy of sponsor concerning cancellations and refunds. (NRS 645.190, 645.575) Any advertising, promotional brochure or form for registration for a course for continuing education must contain, in writing, the policy of the sponsor concerning cancellations and refunds.

���� (Added to NAC by Real Estate Comm�n, eff. 6-3-86; A by R031-04, 11-30-2004)

���� NAC 645.463Restrictions on receipt of credit for course. (NRS 645.190, 645.575)

���� 1. A course may not be taken for credit to meet the requirements for continuing education more than once during a single licensing period.

���� 2. Courses taken to satisfy requirements for renewal or reinstatement of a license must be completed within 2 years immediately before the latest date for renewing or reinstating the license.

���� 3. A licensee may receive credit for continuing education only upon certification by the sponsor that the licensee has attended and completed at least 90 percent of the course.

���� 4. The sponsor shall determine whether a final examination is required for the completion of a course.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81; A 12-16-82; 8-26-83; 6-3-86; 12-27-89; R092-00, 8-29-2000; R031-04, 11-30-2004; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on April 4, 2016 (LCB File No. R097-14), which amended this section, contains the following provisions not included in NAC:

����� �Sec. 19. 1. The Real Estate Commission will not apply the amendatory provisions of this regulation to prevent a licensee from receiving credit for a course which the licensee completed before April 4, 2016.

����� 2. As used in this section, �licensee� has the meaning ascribed to it in NAC 645.043.�

���� NAC 645.467Credit for attendance at meeting of Commission. (NRS 645.190, 645.575)

���� 1. The Commission will grant credit for continuing education, not to exceed 6 hours during a licensing period, to a licensee for attending a meeting of the Commission if:

���� (a) The meeting of the Commission for which credit for continuing education is being sought is not a hearing in which the licensee is participating as the result of a disciplinary action;

���� (b) The meeting of the Commission for which credit for continuing education is being sought lasts at least 3 hours; and

���� (c) The Commission certifies, for the purposes of providing credit for continuing education, the attendance of the licensee at the meeting.

���� 2. If a licensee attends only part of a meeting of the Commission, the Division may determine the number of hours of credit, if any, that the licensee may receive for credit for continuing education pursuant to this section.

���� (Added to NAC by Real Estate Comm�n, eff. 4-27-84; A by Real Estate Div., 3-31-94; A by Real Estate Comm�n by R031-04, 11-30-2004; R123-06, 6-1-2006)

REAL ESTATE EDUCATION, RESEARCH AND RECOVERY FUND

���� NAC 645.470Annual financial statement and budget. (NRS 645.190, 645.842)

���� 1. Within 60 days after the close of the fiscal year, the Administrator shall deliver to the Commission a financial statement showing beginning balances, receipts, expenditures and ending balances of the Real Estate Education, Research and Recovery Fund in such detail as the Commission requires.

���� 2. Before the first meeting of each fiscal year, the Commission will have a budget prepared for the yearly allocation of expenditures of the Fund from money available for research and education. The budget so prepared will be presented at the first meeting of the Commission in the fiscal year.

���� [Real Estate Adv. Comm�n, � XV, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 6-3-86; R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.475Request for showing that judgment debtor has been examined by person who files petition against Fund. (NRS 645.190, 645.844)For purposes of determining whether a person who has filed a petition against the Real Estate Education, Research and Recovery Fund has made reasonable searches and inquiries to ascertain whether the judgment debtor possesses real or personal property or other assets, liable to be sold or applied in satisfaction of the judgment, the Administrator shall request that the court require the petitioner to show that he or she has conducted an examination of the judgment debtor pursuant to NRS 21.270 to 21.340, inclusive, unless:

���� 1. The judgment debtor cannot, with the exercise of due diligence, be found within the jurisdiction;

���� 2. The judgment debtor has filed a petition in bankruptcy; or

���� 3. There is good cause for not requiring the examination.

���� (Added to NAC by Real Estate Comm�n, eff. 6-3-86)

���� NAC 645.480�Unpaid actual damages� interpreted. (NRS 645.190, 645.844)The Administrator shall interpret the phrase �unpaid actual damages� as it is used in NRS 645.844 to exclude any attorney�s fees, prejudgment interest, or court costs related to the judgment upon which the petition is based.

���� (Added to NAC by Real Estate Div., eff. 3-31-94)

���� NAC 645.485Compromise of claim. (NRS 645.190, 645.845)

���� 1. In compromising a claim pursuant to NRS 645.845, the Administrator may prepare and enter into a stipulation with the petitioner and file a joint petition with the court.

���� 2. Before the Administrator and the petitioner file such a joint petition, the Administrator shall advise the petitioner in writing that:

���� (a) The Division does not represent the interests of the petitioner; and

���� (b) The petitioner should seek the advice of independent legal counsel regarding the proposed compromise.

���� 3. The Administrator shall compromise any claim and defend any action against the Real Estate Education, Research and Recovery Fund on behalf of the Fund in which a settlement has been agreed upon by the petitioner or paid to the petitioner, including, without limitation, any settlement by a third party that has been agreed upon by the petitioner or paid to the petitioner.

���� (Added to NAC by Real Estate Div., eff. 3-31-94; A by Real Estate Comm�n by R111-01, 12-17-2001)

ADVISORY COMMITTEE

���� NAC 645.490Establishment and purpose; list of persons approved to serve; appointment of members; restrictions on service; allowance and expenses. (NRS 645.190)

���� 1. The Commission may establish an advisory committee to assist the Commission with any matter that the Commission determines to be appropriate for submission to an advisory committee.

���� 2. The Administrator may establish an advisory committee to assist the Administrator in:

���� (a) The evaluation of any educational course, seminar or conference; or

���� (b) The review of a matter that is the subject of an investigation conducted pursuant to NAC 645.680, if the licensee who is the subject of the investigation agrees to participate in an informal review of the matter with an advisory committee.

���� 3. The Commission will create and maintain a list of persons who are approved by the Commission to serve on an advisory committee. The Commission will not include any person on the list unless that person meets the qualifications for appointment to the Commission set forth in subsection 3 of NRS 645.090.

���� 4. If the Administrator or the Commission determines that an advisory committee should be formed, the Administrator shall appoint three persons to serve on the advisory committee from the list of persons approved by the Commission to serve on the advisory committee. At least one person so appointed must be a current or former member of the Commission. The Administrator shall appoint one member of the advisory committee, who must be a current or former member of the Commission, to serve as chair of the advisory committee.

���� 5. A member of an advisory committee:

���� (a) Serves at the pleasure of the Commission and without compensation; and

���� (b) Shall abstain from participating in any proceeding in which he or she would be prohibited from participating if he or she were a member of the Commission.

���� 6. Each member of an advisory committee is entitled to receive a per diem allowance and travel expenses as provided for state officers and employees generally for the period during which the member was engaged in the discharge of his or her official duties.

���� (Added to NAC by Real Estate Comm�n by R146-99, eff. 1-21-2000; A by R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.493Review of matter investigated as result of complaint or upon request of Division: Duties of advisory committee and Administrator. (NRS 645.190)

���� 1. An advisory committee which is established to assist the Administrator with the review of a matter that is the subject of an investigation conducted pursuant to NAC 645.680 shall:

���� (a) Review the written report submitted by an investigator pursuant to NAC 645.680 and any other information that is relevant to the matter to determine whether there is probable cause to show that the licensee who is the subject of the investigation has violated a provision of chapter 113, 116, 119, 119A, 119B, 645, 645C or 645D of NRS or the regulations adopted pursuant to those chapters;

���� (b) Hold an informal conference in accordance with NAC 645.497;

���� (c) Work with the licensee who is the subject of the investigation to attempt to arrive at a recommendation for resolution of the matter; and

���� (d) Submit a recommendation for resolution of the matter to the Administrator or recommend that the matter be submitted to the Commission.

���� 2. If the Administrator and the licensee who is the subject of the investigation accept the advisory committee�s recommendation for resolution of the matter, the Administrator shall enter into a written agreement with the licensee who is the subject of the investigation which must contain the terms of the resolution recommended by the advisory committee. If the agreement provides for disciplinary action that is authorized pursuant to NRS 645.630, the Administrator may impose the discipline on behalf of the Commission.

���� 3. If disciplinary action is taken pursuant to this section against a licensee who is the subject of an investigation, the Administrator shall file with the Commission a written summary of the facts and disciplinary actions taken against the licensee.

���� 4. If the Administrator or the licensee who is the subject of the investigation does not accept the advisory committee�s recommendation for resolution of the matter, the Administrator shall:

���� (a) Schedule a hearing which must be conducted pursuant to NAC 645.810; or

���� (b) Negotiate a resolution of the matter with the licensee who is the subject of the investigation, which may include, without limitation, assessing administrative sanctions pursuant to NAC 645.695. A resolution negotiated pursuant to this paragraph is contingent upon the approval of the Commission at a hearing in which the licensee who is the subject of the investigation is in attendance.

���� (Added to NAC by Real Estate Comm�n by R146-99, eff. 1-21-2000; A by R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.497Review of matter investigated as result of complaint or upon request of Division: Informal conference; report to Administrator. (NRS 645.190)

���� 1. If an advisory committee is established to assist the Administrator with the review of an investigation conducted pursuant to NAC 645.680, the Administrator shall schedule an informal conference between the advisory committee and the licensee who is the subject of the investigation. The Administrator shall provide written notice of the time and place of the conference to:

���� (a) Each member of the advisory committee;

���� (b) The licensee who is the subject of the investigation; and

���� (c) Each witness who has been requested to appear at the informal conference.

���� 2. The advisory committee may request the attendance at an informal conference of any person whom the advisory committee believes to have information that is relevant to the matter.

���� 3. When conducting an informal conference, an advisory committee:

���� (a) May consider all evidence that it deems relevant to the investigation;

���� (b) Shall rule on the admissibility of evidence;

���� (c) Shall be the controlling authority with regard to the admissibility of evidence; and

���� (d) Need not follow the rules of admissibility of evidence that a court must follow.

���� 4. The chair of an advisory committee shall file a written report with the Administrator that explains the results of the informal conference within 30 days after the conclusion of the informal conference. Except as otherwise provided in NRS 645.180, the report is and must remain confidential.

���� (Added to NAC by Real Estate Comm�n by R146-99, eff. 1-21-2000; A by R111-01, 12-17-2001)

���� NAC 645.500Informal conference upon review of matter investigated by Administrator; report to Administrator; confidentiality. (NRS 645.190)

���� 1. If an advisory committee is established to assist the Administrator with the review of an investigation conducted pursuant to NRS 645.610, the Administrator shall schedule an informal conference between the advisory committee and the licensee who is the subject of the investigation. The Administrator shall provide written notice of the time and place of the informal conference to:

���� (a) Each member of the advisory committee;

���� (b) The licensee who is the subject of the investigation; and

���� (c) Each witness who has been requested to appear at the informal conference.

���� 2. An advisory committee may request the attendance at an informal conference of any person whom the advisory committee believes to have information that is relevant to the matter.

���� 3. When conducting an informal conference, an advisory committee:

���� (a) May consider all evidence that it deems relevant to the investigation;

���� (b) Shall rule on the admissibility of evidence;

���� (c) Is the controlling authority with regard to the admissibility of evidence; and

���� (d) Need not follow the rules of admissibility of evidence that a court must follow.

���� 4. The chair of an advisory committee shall file a written report with the Administrator that explains the results of the informal conference within 30 days after the conclusion of the informal conference.

���� 5. A written report reviewed pursuant to subsection 1 of NAC 645.493, a written report filed pursuant to subsection 4 and all proceedings before an advisory committee are confidential.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

STANDARDS OF PRACTICE

���� NAC 645.525Naming of false consideration in document. (NRS 645.050, 645.190)Regardless of disclosure or any agreement on the part of the seller, a licensee shall not participate in the naming of a false consideration in any document, unless it is an obviously nominal consideration.

���� [Real Estate Adv. Comm�n, � VII Code of Ethics Part I subsec. 4, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R031-04, 11-30-2004)

���� NAC 645.535Exclusive agency agreements; placement of signs. (NRS 645.050, 645.190)

���� 1. A licensee cooperating with a broker who holds an exclusive listing or other exclusive agency agreement shall not invite the cooperation of another licensee without the consent of the listing broker or the agent.

���� 2. Signs giving notice of property for sale, rent, lease, or exchange must not be placed on any property by more than one licensee unless authorized by the owner in writing.

���� 3. A person must obtain the consent of the broker who holds an exclusive listing or other exclusive agency agreement before negotiating a lease or sale with the owner of that property or the principal.

���� 4. A broker who holds an exclusive listing or other exclusive agency agreement shall cooperate with other brokers whenever it is in the interest of his or her client and may share commissions on a previously agreed basis.

���� [Real Estate Adv. Comm�n, � VII Code of Ethics Part II subsecs. 7 & 10-12, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 12-27-91; A by Real Estate Div., 3-1-96)

���� NAC 645.541Authorization of licensee to negotiate directly with client of broker with exclusive authority to represent client. (NRS 645.050, 645.190)

���� 1. A broker who has the exclusive authority to represent a client under an exclusive agency listing agreement, exclusive buyer�s brokerage agreement or exclusive right to sell or lease listing agreement may authorize another licensee to negotiate directly with that client if written authorization is obtained from the broker pursuant to subsection 2 of NRS 645.635. The authorization must be prepared on a form prescribed by the Division. The broker shall, upon request, provide a copy of the authorization to any licensee cooperating with the broker.

���� 2. Any negotiation conducted by a licensee with a seller, purchaser, lessor or tenant pursuant to the authorization described in subsection 1 does not create an express or implied agency relationship between the licensee and the client of the authorizing broker.

���� 3. A licensee who cooperates with a broker and who negotiates an agreement pursuant to this section may communicate with the authorizing broker�s client to assist in closing the agreement. Any communication engaged in pursuant to this subsection does not create an express or implied agency relationship between the licensee and the client of the authorizing broker.

���� 4. As used in this section, �negotiate� means:

���� (a) To communicate, deliver, discuss or review the terms of an offer, counteroffer or proposal; or

���� (b) To communicate or assist in communication regarding an offer, counteroffer or proposal and preparing any response as directed.

���� (Added to NAC by Real Estate Comm�n by R165-07, eff. 4-17-2008)

���� NAC 645.546Representation of clients under brokerage agreements: �Present all offers� and �exclusive agency representation� interpreted. (NRS 645.050, 645.190, 645.254, 645.320)

���� 1. As used in NRS 645.254, the Commission will interpret the term �present all offers� to include, without limitation:

���� (a) Accepting delivery of or conveying an offer or counteroffer;

���� (b) Answering a client�s questions regarding an offer or counteroffer; and

���� (c) Assisting a client in preparing, communicating or negotiating an offer or counteroffer.

���� 2. As used in NRS 645.320, the Commission will interpret the term �exclusive agency representation� to mean an agency relationship that consists of one broker and one client, including, but not limited to:

���� (a) An exclusive agency listing agreement;

���� (b) An exclusive buyer�s brokerage agreement; or

���� (c) An exclusive right to sell or lease listing agreement.

���� 3. The provisions of this section do not prohibit the creation of an agency relationship described in a form prepared pursuant to subsection 2 or 3 of NRS 645.193.

���� (Added to NAC by Real Estate Comm�n by R165-07, eff. 4-17-2008)

���� NAC 645.551Exclusive buyer�s brokerage agreements: Inclusion of certain provisions regarding compensation of broker. (NRS 645.050, 645.190)An exclusive buyer�s brokerage agreement may authorize the broker specified in the agreement to receive compensation from the seller or lessor of the property or the broker of the seller or lessor and may provide that the purchaser or tenant is not required to compensate the broker if the property is purchased or leased solely through the efforts of the purchaser or tenant.

���� (Added to NAC by Real Estate Comm�n by R165-07, eff. 4-17-2008)

���� NAC 645.600Responsibilities of broker regarding associated licensees, employees and operation of business; agreement to retain licensee as independent contractor. (NRS 645.050, 645.190)

���� 1. Every real estate broker shall teach the licensees associated with him or her the fundamentals of real estate or time-share practice, or both, and the ethics of the profession. The broker shall supervise the activities of those licensees, the activities of his or her employees and the operation of his or her business.

���� 2. The supervision described in subsection 1 includes, without limitation, the establishment of policies, rules, procedures and systems that allow the real estate broker to review, oversee and manage:

���� (a) The real estate transactions performed by a licensee who is associated with the real estate broker;

���� (b) Documents that may have a material effect upon the rights or obligations of a party to such a real estate transaction;

���� (c) The filing, storage and maintenance of such documents;

���� (d) The handling of money received on behalf of a real estate broker;

���� (e) The advertising of any service for which a real estate license is required; and

���� (f) The familiarization by the licensee of the requirements of federal and state law governing real estate transactions, including, without limitation, prohibitions against discrimination.

���� 3. In establishing such policies, rules, procedures and systems, the real estate broker shall consider the number of licensees associated with the real estate broker, the number of employees employed by the real estate broker and the number and location of branch offices operated by the real estate broker.

���� 4. A real estate broker shall establish a system for monitoring compliance with such policies, rules, procedures and systems. The real estate broker may use a real estate broker-salesperson to assist in administering the provisions of this section so long as the real estate broker does not relinquish overall responsibility for the supervision of the acts of the licensees associated with the real estate broker.

���� 5. A real estate broker may enter into a written agreement with each licensee associated with the real estate broker to retain the licensee as an independent contractor. If such an agreement is entered into, it must:

���� (a) Be signed and dated by the real estate broker and the licensee; and

���� (b) Include the material aspects of the relationship between the real estate broker and the licensee, including, without limitation, the supervision by the real estate broker of the activities of the licensee for which a real estate license is required.

���� [Real Estate Adv. Comm�n, � VII subsec. 1, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 4-27-84; R111-01, 12-17-2001; R031-04, 11-30-2004)

���� NAC 645.605Considerations in determining certain misconduct by licensee. (NRS 645.050, 645.190, 645.633)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)

���� NAC 645.610Restrictions on advertising; use of name under which licensee is licensed. (NRS 645.050, 645.190)

���� 1. In addition to satisfying the requirements set forth in NRS 645.315:

���� (a) An advertisement of the services of a licensee for which a license is required under chapter 645 of NRS must not be false or misleading.

���� (b) Except as otherwise provided in this paragraph, a licensee shall not use his or her name or telephone number or the name or telephone number of another licensee of the brokerage firm with which the licensee is associated in any advertisement which contains the words �for sale by owner,� �for lease by owner� or similar words. A licensee may use his or her name or telephone number in an advertisement for property if the licensee has an ownership interest in the advertised property and the advertisement contains:

��������� (1) If the licensee is a real estate broker, the words �for sale by owner-broker,� �for lease by owner-broker� or substantially similar words; or

��������� (2) If the licensee is an agent, the words �for sale by owner-agent,� �for lease by owner-agent� or substantially similar words.

���� (c) The name of a brokerage firm under which a real estate broker does business or with which a real estate broker-salesperson or salesperson is associated must be clearly identified with prominence in any advertisement. In determining whether the name of the brokerage firm is identified with prominence, the Division shall consider, without limitation, the style, size and color of the type or font used and the location of the name of the brokerage firm as it appears in the advertisement.

���� (d) A licensee shall not publish or cause to be published any advertisement or place any sign that makes any reference to the availability of a specific property which is exclusively listed for sale by another broker unless the licensee obtains the prior written consent of the broker with whom the property is listed. Such consent must not be given or withheld by the listing broker without the knowledge of the owner of the property.

���� (e) A licensee shall not advertise or otherwise conduct business under a name, including a nickname, other than the name under which he or she is licensed to engage in business.

���� 2. If advertising under the name of a franchise, a broker shall incorporate in a conspicuous way in the advertisement the real, fictitious or corporate name under which the broker is licensed to engage in business and an acknowledgment that each office is independently owned and operated.

���� 3. In addition to the provisions of paragraph (a) of subsection 1, a licensee who represents a seller or lessor under an exclusive agency listing agreement or an exclusive right to sell or lease listing agreement shall not advertise any property that is subject to the agreement as �for sale by owner� or otherwise mislead a person into believing that the licensee does not represent the seller or lessor.

���� 4. As used in this section, �advertisement� includes, without limitation:

���� (a) Any unsolicited printed material and any broadcast made by radio, television or electronic means, including, without limitation, by unsolicited electronic mail and the Internet, billboards and signs; and

���� (b) Business cards, stationery, forms and other documents used in a real estate transaction.

���� [Real Estate Adv. Comm�n, � VII subsecs. 2 & 3, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 4-27-84; 12-27-91; A by Real Estate Div., 3-1-96; A by Real Estate Comm�n by R186-99, 1-21-2000; R111-01, 12-17-2001; R031-04, 11-30-2004; R165-07, 4-17-2008)

���� NAC 645.611Advertisement of services: Use of terms �team� and �group.� (NRS 645.050, 645.190)A licensee may use the term �team� or �group� to advertise the services provided by the licensee if:

���� 1. The use of the term does not constitute the unlawful use of a trade name and is not deceptively similar to a name under which any other person is lawfully doing business;

���� 2. The team or group is composed of more than one licensee;

���� 3. The members of the team or group are employed by the same broker;

���� 4. The name of the team or group contains the last name of at least one of the members of the team or group; and

���� 5. The advertising complies with all other applicable provisions of this chapter and chapter 645 of NRS.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.613Dissemination of certain unsolicited information through Internet or electronic mail. (NRS 645.050, 645.190)A licensee disseminating unsolicited information concerning real property or marketing real property through the Internet or electronic mail:

���� 1. Shall be deemed to be engaged in advertising and shall comply with the applicable provisions of this chapter and chapter 645 of NRS relating to advertising.

���� 2. Shall make all disclosures, obtain appropriate signatures and follow all requirements set forth in this chapter and chapter 645 of NRS before entering into a relationship as the agent of a client. The clicking of an acceptance box on the Internet or in an electronic mail is insufficient to create such a relationship between the licensee and the client. As used in this subsection, �appropriate signature� means the legal signature of the client.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.615Use of sign to identify business. (NRS 645.050, 645.190, 645.560)

���� 1. The sign which NRS 645.560 requires each broker to erect and maintain in a conspicuous place upon the premises of the broker�s place of business must be readable from the nearest public sidewalk, street or highway.

���� 2. If the broker�s place of business is located in an office building, hotel or apartment house, the broker�s sign must be posted on the building directory or on the exterior of the entrance to the business.

���� 3. Upon request by the Division, the broker shall furnish a photograph of his or her sign as proof of compliance with NRS 645.560 and this section.

���� [Real Estate Adv. Comm�n, � VI subsecs. 5-7, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 4-27-84; A by Real Estate Div., 11-30-87; A by Real Estate Comm�n by R092-00, 8-29-2000)

���� NAC 645.620Use of fictitious name. (NRS 645.050, 645.190)

���� 1. A broker shall not operate under a fictitious name unless the broker complies with chapter 602 of NRS and files with the Division a certified copy of the certificate issued by the county clerk. The Division shall not issue more than one license nor register more than one owner-developer under the same name.

���� 2. If a broker changes or assumes a fictitious name under which business is conducted, the broker shall file a certified copy of the certificate issued by the county clerk to the Division within 10 days after the certificate is issued.

���� 3. A broker may not use more than one name for each license under which he or she operates.

���� [Real Estate Adv. Comm�n, � VI subsec. 3, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; A by Real Estate Div., 3-1-96; A by Real Estate Comm�n by R186-99, 1-21-2000)

���� NAC 645.627Location of office. (NRS 645.050, 645.190)

���� 1. A broker shall establish an office in a location which is easily accessible to the public. If the broker chooses to establish an office in a private home or in conjunction with another business, he or she shall set aside a separate room or rooms for conducting his or her real estate business. The broker�s office must comply with local zoning requirements.

���� 2. A broker who is licensed in Nevada but who maintains an active license in another state shall maintain and operate a Nevada office.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81)

���� NAC 645.630Prompt tender of offers. (NRS 645.050, 645.190)A licensee shall promptly deliver:

���� 1. To the seller, every bona fide offer, complete with all terms and conditions of purchase, which he or she obtains.

���� 2. To the purchaser and seller, copies of each acceptance of an offer or counteroffer.

���� [Real Estate Adv. Comm�n, � VII, subsecs. 4 & 6, eff. 10-31-75]

���� NAC 645.632Notification of rejection of offer or counteroffer. (NRS 645.050, 645.190)

���� 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.

���� (Added to NAC by Real Estate Adv. Comm�n, eff. 8-21-81; A by Real Estate Comm�n by R186-99, 1-21-2000)

���� NAC 645.635Disclosure of unmerchantable title. (NRS 645.050, 645.190, 645.252)A licensee may not attempt to sell, or offer to sell, any real property or any time share with knowledge that the title is unmerchantable unless the licensee notifies the prospective purchaser of that fact before the payment of any part of the purchase price.

���� [Real Estate Adv. Comm�n, � VII subsec. 9, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 4-27-84)

���� NAC 645.637Disclosure of relationship as agent or status as principal. (NRS 645.050, 645.190, 645.252)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. The prior disclosure must then be confirmed in a separate provision incorporated in or attached to that document and must be maintained by the real estate broker in his or her files relating to that transaction.

���� (Added to NAC by Real Estate Div., 11-8-88, eff. 7-1-89; A by Real Estate Comm�n, 12-27-89; R186-99, 1-21-2000; R111-01, 12-17-2001; R123-06, 6-1-2006)

���� NAC 645.640Disclosure of interest of licensee in certain transactions. (NRS 645.050, 645.190, 645.252)

���� 1. A licensee shall not acquire, lease or dispose of any time share, real property or interest in any time share or real property for himself or herself, any member of his or her immediate family, his or her firm, or any member thereof, or any entity in which the licensee has an interest as owner unless the licensee first discloses in writing that:

���� (a) He or she is acquiring, leasing or disposing of the time share or property for himself or herself or for a member, firm, or entity with which the licensee has such a relationship; and

���� (b) He or she is a licensed real estate broker, licensed real estate broker-salesperson or licensed real estate salesperson, whether his or her license is active or inactive. This disclosure may be accomplished with a reference to himself or herself as an agent, licensee, salesperson, broker or broker-salesperson, whichever is appropriate.

���� 2. If a licensee advertises any time share or real property or his or her wish to enter into a transaction which is subject to the provisions of subsection 1, the licensee shall include in the advertisement the disclosure required by that subsection.

���� [Real Estate Adv. Comm�n, � VII subsec. 8, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 12-16-82; 4-27-84; A by Real Estate Div., 11-30-87; A by Real Estate Comm�n by R186-99, 1-21-2000; R031-04, 11-30-2004)

���� NAC 645.645Inspections and audits by Division: Cooperation by broker; form for permission. (NRS 645.190, 645.195, 645.310, 645.313)A broker shall, upon demand, provide the Division with the documents and the permission necessary for the Division to complete fully an inspection and audit, including an inspection and audit of any money accounts as provided in NRS 645.310 and 645.313. Permission may be given on a form provided by the Division. The form must provide a bank, depositor or other holder of information with release from liability which might result from disclosure of the information required by the Division.

���� [Real Estate Adv. Comm�n, � VII subsec. 15, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R031-04, 11-30-2004)

���� NAC 645.650Periods for maintenance of certain records by broker and for provision of certain paperwork to broker. (NRS 645.050, 645.190)

���� 1. A broker shall keep complete real estate transaction and property management records for at least 5 years after the date of the closing or the last activity involving the property, including, without limitation, offers that were not accepted and transactions that were not completed, unless otherwise directed by the Division.

���� 2. A salesperson or broker-salesperson must provide any paperwork to the broker with whom he or she is associated within 5 calendar days after that paperwork is executed by all the parties.

���� [Real Estate Adv. Comm�n, � VII subsecs. 7 & 10 par. c, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; A by Real Estate Div., 3-1-96; A by Real Estate Comm�n by R186-99, 1-21-2000; R031-04, 11-30-2004)

���� NAC 645.655Records of transactions; trust accounts. (NRS 645.050, 645.190, 645.195, 645.310, 645.633)

���� 1. Each real estate transaction of a brokerage must be numbered consecutively or indexed to permit audit by a representative of the Division.

���� 2. A complete record of each real estate transaction, together with records required to be maintained pursuant to NRS 645.310, must be:

���� (a) Kept in this State; and

���� (b) Open to inspection and audit by the Division upon its request during its usual business hours, as well as other hours during which the licensee regularly conducts his or her business.

���� 3. If any records the Division requests to inspect or audit pursuant to subsection 2 are stored electronically, access to a computer or other equipment used to store the information must be made available to the Division for use in its inspection or audit.

���� 4. The real estate broker shall give written notice to the Division of the exact location of the records of the real estate broker and shall not remove them until he or she has delivered a notice which informs the Division of the new location.

���� 5. A licensee shall not maintain a custodial or trust account from which money may be withdrawn without the signature of a licensee. A signature applied by use of a rubber stamp does not constitute the signature of a licensee for the purposes of this subsection.

���� 6. A real estate salesperson may not be the only required signatory on a custodial or trust fund account. A real estate salesperson may be a cosigner of an account with his or her real estate broker.

���� 7. A real estate broker who files for relief under the bankruptcy laws of the United States shall immediately terminate each trust account established pursuant to NRS 645.310 and deposit all money from each trust account into escrow with executed instructions to the escrow agent or officer to disburse the money pursuant to the agreement under which it was originally deposited.

���� 8. A real estate broker who is engaged in property management for one or more clients shall maintain two separate property management trust accounts distinct from any trust account that the real estate broker may have for other real estate transactions. One trust account must be used solely for activities relating to rental operations, and the other trust account must be used solely for security deposits. A real estate broker shall maintain a ledger account for each unit of property he or she manages regardless of whether the client owns more than one unit under the real estate broker�s management. All rents and deposits for each unit must be deposited into and credited to each property�s management trust account, and all authorized repairs and expenses must be paid out of the corresponding ledger account. For the purposes of this subsection, �unit� means one single-family dwelling unit.

���� 9. Property management and real estate transaction trust accounts must be reconciled monthly by the real estate broker or the designee of the real estate broker within 30 days after receipt of the bank statement. A real estate broker who permits any trust account, including any ledger account, to fall into deficit and remain in deficit for more than 45 consecutive days in 1 year is subject to discipline pursuant to paragraph (h) of subsection 1 of NRS 645.633 or other applicable charges, or both.

���� [Real Estate Adv. Comm�n, � VII subsec. 10 pars. a, b, d & e, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 6-3-86; A by Real Estate Div., 3-1-96; A by Real Estate Comm�n by R111-01, 12-17-2001; R031-04, 11-30-2004, eff. 7-1-2005)

���� NAC 645.657Payment of deposits. (NRS 645.050, 645.190, 645.310)A licensee who receives a deposit on any transaction in which he or she is engaged on behalf of a broker or owner-developer shall pay over the deposit to that broker or owner-developer, or to the escrow business or company designated in the contract, within 1 business day after receiving a fully executed contract.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81; A 12-16-82; R031-04, 11-30-2004; R123-06, 6-1-2006)

���� NAC 645.660Disclosure of certain interests required before deposit of money. (NRS 645.050, 645.190)A licensee shall not deposit money received by the licensee in any escrow business or company in which the licensee or anyone associated with him or her in the real estate or time-share business has an interest without disclosing this association to all parties to the transaction.

���� [Real Estate Adv. Comm�n, � VII subsec. 11, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 4-27-84; R031-04, 11-30-2004)

���� NAC 645.665Absence of broker from business for prolonged period. (NRS 645.050, 645.190)A broker shall not be absent from his or her business for 30 days or more if the broker is the only broker in his or her office unless the broker inactivates his or her license or otherwise notifies the Division in advance. Failure to observe this requirement is a ground for suspension. If a broker will be absent from his or her business for 30 days or more, the broker must designate an office manager in accordance with NAC 645.178 or make other arrangements approved by the Division in advance.

���� [Real Estate Adv. Comm�n, � VII subsec. 12, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 4-27-84; R031-04, 11-30-2004)

���� NAC 645.670Conduct of inspections by Division. (NRS 645.050, 645.190, 645.195, 645.310)

���� 1. The Division may use a form of its design to conduct any inspection and require the broker or office manager in charge of the office being inspected to sign such a form.

���� 2. Such an inspection must include, but need not be limited to:

���� (a) The address of the real estate office or time-share office.

���� (b) The sign identifying the office.

���� (c) The procedure used to deposit money.

���� (d) The trust records.

���� (e) The indexing or numbering system used in filing records.

���� (f) Advertising.

���� (g) The availability of current statutes and regulations at the place of business.

���� (h) Any affiliation with a developer as defined in chapter 119 or 119A of NRS.

���� (i) Any documentation required by chapter 119 or 119A of NRS or the federal Land Sales Act.

���� [Real Estate Adv. Comm�n, � VII subsec. 17, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 4-27-84)

���� NAC 645.675Agreements for advance fees. (NRS 645.050, 645.190, 645.324)

���� 1. Each agreement for an advance fee used in Nevada must:

���� (a) Be in writing;

���� (b) Contain a definite and complete description of the services to be rendered;

���� (c) Specify the total amount of the fee involved and clearly state when the fee is due;

���� (d) Not imply or purport to guarantee that the real property involved will be purchased, sold, rented, leased or exchanged as a result of the services rendered;

���� (e) Specify the date of full performance of the services contracted for;

���� (f) Not imply or purport to represent to purchasers and prospective purchasers of the advertising or promotional services offered that a buyer for the property is immediately or soon available; and

���� (g) Provide that a full refund will be made to the customer if the services for which the advance fee is being received are not substantially or materially provided to the customer.

���� 2. Any oral representation or promise made to a purchaser or a prospective purchaser of the advertising and promotional services offered pursuant to an agreement for an advance fee to induce the purchaser or prospective purchaser of the services to sign the agreement is incorporated into the agreement. The agreement must not relieve or exempt the vendor of the services from any oral representation or promise incorporated into the agreement.

���� [Real Estate Adv. Comm�n, � IX subsecs. 1 & 2, eff. 10-31-75] — (NAC A by Real Estate Comm�n by R031-04, 11-30-2004)

���� NAC 645.678Duties of broker operating agency which lists rentals for advance fee. (NRS 645.050, 645.190)A broker operating an agency which lists rentals for an advance fee shall:

���� 1. Not publish, advertise or distribute information concerning a rental without first receiving approval from the owner of the rental.

���� 2. Provide for full refunds to customers if the services for which payment was received was substantially or materially not received by the customer.

���� 3. Inform each customer in writing of the term for which the rental service is to be provided.

���� 4. Make no additional charge for services rendered during the period for which the services were initially purchased.

���� (Added to NAC by Real Estate Comm�n, eff. 8-21-81; A by R031-04, 11-30-2004)

���� NAC 645.680Form for complaints; investigations of licensees; action by Administrator on report of investigation. (NRS 645.050, 645.190)

���� 1. The Division shall prepare and require a standard form or affidavit for use in making a citizen�s complaint. This form may require any information the Division considers pertinent.

���� 2. If a complaint is made or if the Division requests an investigation of a licensee, the Administrator shall appoint a member of the staff of the Division to investigate any action of a licensee which appears to violate a provision of chapter 113, 116, 119, 119A, 119B, 645, 645C or 645D of NRS or the regulations adopted pursuant thereto. An investigation that is initiated by a complaint need not be limited to the matter in the complaint.

���� 3. A licensee shall disclose all facts and documents pertinent to an investigation to members of the Division�s staff conducting the investigation.

���� 4. A person appointed to investigate a matter pursuant to this section shall submit a written report to the Administrator which describes the results of the investigation.

���� 5. The Administrator shall review a report submitted pursuant to subsection 4 and based upon the review shall:

���� (a) Dismiss the matter that is the subject of the investigation;

���� (b) Impose an administrative fine pursuant to NAC 645.695;

���� (c) Negotiate a resolution of the matter that is the subject of the investigation, which may include, without limitation, administrative sanctions pursuant to NAC 645.695;

���� (d) Create an advisory committee to review the matter that is the subject of the investigation pursuant to NAC 645.490, if the licensee who is the subject of the investigation agrees to participate in an informal conference with an advisory committee; or

���� (e) Schedule a hearing that must be conducted pursuant to NAC 645.810.

���� [Real Estate Adv. Comm�n, � VIII, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 4-27-84; R146-99, 1-21-2000; R031-04, 11-30-2004)

���� NAC 645.690Correction of certain deficiencies upon notice and request by Division. (NRS 645.050, 645.190)

���� 1. The Division may grant a licensee up to 10 days to correct any deficiency involving advertising, business location, office operation or a broker�s sign. A notice of the deficiency and a request to correct the deficiency will be mailed to the licensee. Failure to comply with the request is a ground for the suspension or revocation of the license. The notice must state the deficiencies or violations, the recommended action, and the date by which the deficiencies must be corrected.

���� 2. The Division may grant an extension for a definite time to correct the deficiency whenever the correction may, practicably, require additional time.

���� [Real Estate Adv. Comm�n, � VII subsec. 14, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; R031-04, 11-30-2004)

���� NAC 645.695Administrative fines and other sanctions. (NRS 645.050, 645.190, 645.575, 645.630, 645.633, 645.635, 645.660)

���� 1. The Administrator may require a licensee to pay an administrative fine in the amount set forth in this subsection for each violation of the following provisions:

���� 2. In addition to or in lieu of imposing an administrative fine pursuant to subsection 1, the Administrator may:

���� (a) Recommend to the Commission that the license of the licensee and any permit of the licensee be suspended or revoked;

���� (b) Require a licensee to complete continuing education; or

���� (c) Take any combination of the actions set forth in paragraphs (a) and (b).

���� (Added to NAC by Real Estate Comm�n., eff. 5-14-96; A by R059-98, 7-1-98; R146-99 & R186-99, 1-21-2000; R092-00, 8-29-2000; R111-01, 12-17-2001; R031-04, 11-30-2004; R123-06, 6-1-2006; R093-10, 5-30-2012; R097-14, 4-4-2016)

REVISER�S NOTE.

����� The regulation of the Real Estate Commission filed with the Secretary of State on May 30, 2012 (LCB File No. R093-10), which amended this section, contains the following provisions not included in NAC:

����� �1. The amendatory provisions of section 1 of this regulation [NAC 645.4442] apply only to first-time licensees whose licenses expire on or after July 1, 2012.

����� 2. The amendatory provisions of section 3 of this regulation [NAC 645.448] apply only to licensees whose licenses expire on or after July 1, 2013.

����� 3. The amendatory provisions of section 4 of this regulation [NAC 645.695] apply only to:

����� (a) A first-time licensee whose license expires on or after July 1, 2012.

����� (b) A licensee whose license expires on or after July 1, 2013.�

REGULATION OF OWNER-DEVELOPERS

���� NAC 645.700Registration required. (NRS 645.190)An owner-developer must obtain a registration for each recorded subdivision which he or she intends to sell.

���� [Real Estate Adv. Comm�n, � XVI subsec. 3 par. g, eff. 10-31-75]

���� NAC 645.710Application for registration. (NRS 645.190, 645.285, 645.287)

���� 1. An application for an original registration as an owner-developer must be completed by the owner-developer, unless the applicant is a partnership or corporation, and in that case the application must be completed by a partner or the principal officer. The application must be filed with an office of the Division and must be accompanied by fingerprint cards. The applicant�s fingerprints must be taken by a regular law enforcement agency or other authorized entity acceptable to the Division. If a search of criminal records has been requested by the Division, an application for registration is not complete until the Division has received the appropriate information.

���� 2. The applicant must provide in the application:

���� (a) A statement of the applicant�s arrests and convictions, if any, and any proceedings against him or her brought by governmental agencies;

���� (b) A brief history of his or her business;

���� (c) The legal description of the property to be covered by the registration, as shown on a recorded map, which shows all the certificates of approval required by law;

���� (d) The location of each of his or her sales offices;

���� (e) A statement which shows his or her financial condition; and

���� (f) A history of his or her bankruptcies, if any.

���� 3. The application must be accompanied by:

���� (a) The applicant�s sworn verification of the truthfulness of the matters stated in the application and its attachments; and

���� (b) A statement that the applicant understands the responsibilities of an owner-developer pursuant to this chapter and chapter 645 of NRS and that he or she could be subject to disciplinary action pursuant to this chapter and chapter 645 of NRS.

���� 4. The fee for the original registration must accompany the application and is not refundable after the owner-developer has been registered.

���� 5. If the applicant is a partnership or corporation, it must file with the Division a certified or verified copy of the partnership agreement or articles of incorporation.

���� 6. The application must be submitted with a copy of:

���� (a) The applicant�s notice of exemption under subsection 5 of NRS 119.120;

���� (b) The applicant�s business license, if one is required by the local government;

���� (c) If the applicant is a partnership or corporation, the provisions authorizing it to employ salespersons to sell the lots and residences; and

���� (d) The applicant�s certificate of fictitious name, if such a certificate has been filed.

���� 7. An application by a registered owner-developer to enlarge the geographical area covered by his or her registration must be made on a form prepared by the Division. The applicant must provide the Division with the same information as is required for an original application, and the application must be accompanied by the appropriate fee.

���� [Real Estate Adv. Comm�n, � XVI subsec. 1, eff. 10-31-75; A 2-20-76] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82; 6-3-86; R031-04, 11-30-2004)

���� NAC 645.730Status of registration; required notices. (NRS 645.190)

���� 1. The Division�s registration of a person as an owner-developer does not constitute a licensure. Such a registrant may not use the term �licensed� either in his or her advertising or oral presentations to prospective purchasers, but this section does not preclude him or her from using the term �licensed contractor.�

���� 2. An owner-developer shall keep at each of his or her sales offices a copy of the letter of registration sent to the owner-developer by the Division.

���� 3. Every owner-developer shall within 10 days give written notice to the Division of any change of name, address, or status affecting the owner-developer, or any licensed real estate broker-salesperson or salesperson in his or her employ. The notice must be prepared on a form provided by the Division and be given within 10 days after the change occurs. The proper fee must accompany the notice. The owner-developer shall also notify the Division of the location of the sales office which is to be used by the owner-developer�s licensed broker-salesperson or salesperson.

���� 4. The registration of an owner-developer will be annulled at such time as the owner-developer fails to employ licensed real estate broker-salespersons or salespersons.

���� 5. Inactive status is not available for owner-developers.

���� [Real Estate Adv. Comm�n, � XVI subsec. 3 pars. a-f, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82)

���� NAC 645.740Expiration of registration. (NRS 645.190)

���� 1. A registration for an owner-developer is effective for 1 year after the date of issuance. An owner-developer may renew his or her registration by paying the required fee and submitting the appropriate form to the Division. There is no limit on the number of annual renewals.

���� 2. If an owner-developer fails to renew his or her registration, the licenses of all salespersons in his or her employ who have renewed will immediately be placed on inactive status.

���� 3. If the registration of an owner-developer is cancelled, suspended, or revoked, the owner-developer shall immediately terminate all activities pursuant to his or her registration and shall deliver to the Division all of the licenses of his or her employees.

���� [Real Estate Adv. Comm�n, � XVI subsec. 3 pars. j-1, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81)

���� NAC 645.750Limitations on licensees. (NRS 645.050, 645.190, 645.330)

���� 1. A licensee associated with an owner-developer may only sell, lease, rent, or offer and negotiate to sell, lease or rent the registered development for an owner-developer, and may not engage in any other activity listed in NRS 645.030.

���� 2. A licensee employed by an owner-developer may not be associated with a real estate broker at the same time.

���� 3. Real estate brokers working for owner-developers must change their status to real estate broker-salespersons.

���� 4. An employee of an owner-developer is prohibited from erecting, displaying or maintaining any sign or billboard or advertising under his or her own name unless the advertisement is located at the office of his or her employer. The name of the employee may not dominate the owner-developer�s sign in any way.

���� 5. Except as otherwise provided in subsection 6, the time during which a licensee is employed by an owner-developer does not satisfy the requirement of prior experience set forth in subsection 4 of NRS 645.330.

���� 6. The Commission may permit an applicant to satisfy the requirement of prior experience set forth in subsection 4 of NRS 645.330 if the applicant has been employed by an owner-developer. The Commission will consider the prior experience of an applicant with an owner-developer at its next regularly scheduled meeting if the applicant:

���� (a) Files a petition with the Commission; and

���� (b) At the meeting of the Commission, demonstrates that the quality, quantity and variety of experience that the applicant received during his or her employment with an owner-developer was substantially equivalent to the experience of a person who has been actively engaged as a full-time licensed real estate broker-salesperson or salesperson in private practice.

���� [Real Estate Adv. Comm�n, � XVI subsecs. h, i, m & t, eff. 10-31-75; � XVI subsec. t, eff. 12-20-75] — (NAC A by Real Estate Comm�n, 8-21-81; A by Real Estate Div., 11-30-87; 3-31-94; A by Real Estate Comm�n by R111-01, 12-17-2001)

���� NAC 645.760Records of sales; limitation on sales. (NRS 645.190, 645.195)

���� 1. All records pertaining to the sale of any single-family residence in the subdivision of a registered owner-developer must be maintained at his or her principal place of business and be available for inspection by the Division. Upon request, the owner-developer shall send copies of those records to the appropriate office of the Division.

���� 2. The owner-developer may not sell any lot in his or her subdivision pursuant to this chapter unless:

���� (a) The lot contains a single-family residence not previously sold; or

���� (b) A single-family residence is to be constructed upon the lot, and the residence is purchased under the same agreement as the sale of the land.

���� [Real Estate Adv. Comm�n, � XVI subsecs. n, q & s, eff. 10-31-75; � XVI subsecs. r & s, eff. 12-20-75] — (NAC A by Real Estate Comm�n, 8-21-81; 12-16-82)

���� NAC 645.770Disciplinary action; investigation of financial status. (NRS 645.190, 645.610, 645.630, 645.633)

���� 1. The Commission may fine an owner-developer, revoke or suspend the registration of an owner-developer, or impose a fine and revoke or suspend the registration of an owner-developer for any violation of chapter 113, 116, 119, 119A, 645, 645C or 645D of NRS or the regulations adopted pursuant thereto.

���� 2. If the Administrator has reason to believe that there has been a substantial change in the financial status of the owner-developer since his or her original application, the Administrator shall investigate the financial status of the owner-developer. If the Administrator determines that the owner-developer is financially incompetent to maintain his or her business, the Administrator shall bring a complaint for revocation of the registration of the owner-developer.

���� [Real Estate Adv. Comm�n, � XVI subsec. o, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 4-27-84; R031-04, 11-30-2004)

REGULATION OF PROPERTY MANAGERS

���� NAC 645.799Applicability of certain provisions regarding management of common-interest communities. (NRS 645.050, 645.190)A person who holds a permit and engages in the management of a common-interest community is subject to the provisions of chapter 116 of NRS and chapters 116 and 116A of NAC relating to managers of common-interest communities.

���� (Added to NAC by Real Estate Comm�n by R136-99, eff. 4-3-2000)

���� NAC 645.800Permit to engage in property management: General requirements; fees; effective date. (NRS 645.190, 645.6052)

���� 1. A person who wishes to obtain a permit to engage in property management must submit to the Division:

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

���� (b) A fee of $40; and

���� (c) A certificate of completion, in a form that is satisfactory to the Division, that indicates the person�s successful completion of the 24 classroom hours of instruction in property management required by paragraph (a) of subsection 2 of NRS 645.6052.

���� 2. The 24 classroom hours of instruction in property management required pursuant to paragraph (a) of subsection 2 of NRS 645.6052 must include, without limitation:

���� (a) Four hours of instruction relating to:

��������� (1) Contracts for management services;

��������� (2) Leases of real property;

��������� (3) Applications to rent real property;

��������� (4) The Fair Credit Reporting Act, 15 U.S.C. �� 1681 et seq.; and

��������� (5) The Fair Debt Collection Practices Act, 15 U.S.C. �� 1692 to 1692o, inclusive;

���� (b) Two hours of instruction relating to the maintenance of records of money deposited in trust accounts and the requirements for reporting to the Division set forth in chapter 645 of NRS;

���� (c) One hour of instruction relating to the use of a computerized system for bookkeeping;

���� (d) Two hours of instruction relating to the laws of this State governing property management;

���� (e) Two hours of instruction relating to the disclosure of required information in real estate transactions, including, without limitation:

��������� (1) Disclosures required pursuant to NRS 645.252; and

��������� (2) Disclosures related to environmental issues as governed by state and federal law;

���� (f) Five hours of instruction relating to:

��������� (1) The Americans with Disabilities Act of 1990, 42 U.S.C. �� 12101 et seq.;

��������� (2) The Residential Landlord and Tenant Act as set forth in chapter 118A of NRS;

��������� (3) The Nevada Fair Housing Law as set forth in chapter 118 of NRS; and

��������� (4) State and federal law governing unlawful discrimination based on sex, including, without limitation, sexual harassment;

���� (g) Three hours of instruction relating to property management for a common-interest community as set forth in chapter 116 of NRS;

���� (h) One hour of instruction relating to the duties and responsibilities of a real estate broker, including the supervision of employees and real estate salespersons and real estate broker-salespersons associated with the real estate broker;

���� (i) Two hours of instruction relating to risk management, including, without limitation:

��������� (1) The maintenance of real property;

��������� (2) The health and safety of a tenant;

��������� (3) Fire insurance;

��������� (4) Rental insurance; and

��������� (5) Disability insurance; and

���� (j) Two hours relating to the management of commercial property.

���� 3. The Division may accept a course in property management from a nationally recognized or accredited organization to fulfill the requirements set forth in paragraphs (a), (b), (c), (h), (i) and (j) of subsection 2, if the successful completion of that course would qualify the applicant to engage in property management pursuant to the requirements of that organization.

���� 4. The applicant must complete the hours of instruction set forth in paragraphs (d), (e), (f) and (g) of subsection 2 at an accredited educational institution in this State.

���� 5. A permit to engage in property management initially issued by the Division is effective on the date the application for the permit is submitted to the Division or the date on which the fee for the permit is paid, whichever occurs later.

���� 6. As used in this section and paragraph (a) of subsection 2 of NRS 645.6052, the Commission will interpret the term �successfully completed� or �successful completion� to include, without limitation, passing an examination which is prepared and administered by an organization designated by the Division, with a score of at least 75 percent that:

���� (a) Includes the subject matter presented in the hours of instruction required pursuant to subsection 2; and

���� (b) Consists of at least 50 multiple-choice questions.

� The fee for the examination is $75.

���� (Added to NAC by Real Estate Comm�n by R059-98, eff. 7-1-98; A by R111-01, 12-17-2001; R050-03, 10-30-2003; R031-04, 11-30-2004)

���� NAC 645.8005Permit to engage in property management: Additional requirements for person designated to apply on behalf of certain organizations. (NRS 645.190, 645.6052)In addition to the requirements set forth in NRS 645.6052 and the regulations adopted pursuant thereto, to obtain a permit pursuant to NRS 645.6052, a person who is designated to engage in property management on behalf of a partnership, corporation, limited-liability company or sole proprietor pursuant to NRS 645.6054 must be a broker or a broker-salesperson with 2 years of full-time active experience within the 4 years immediately preceding the date the person applies for a permit to engage in property management on behalf of a partnership, corporation, limited-liability company or sole proprietor pursuant to NRS 645.6054.

���� (Added to NAC by Real Estate Comm�n by R092-00, eff. 8-29-2000)

���� NAC 645.802Permit to engage in property management: Requirements and fee for renewal; effective date of renewal; date of expiration. (NRS 645.190, 645.6052)

���� 1. The Division may renew a permit to engage in property management if the holder of the permit submits to the Division:

���� (a) A request for the renewal of the permit with the holder�s application to renew his or her license as a real estate broker, real estate broker-salesperson or real estate salesperson;

���� (b) A renewal fee of $40; and

���� (c) Documentation of his or her successful completion of the requirements for continuing education required by paragraph (a) of subsection 4 of NRS 645.6052.

���� 2. The hours of continuing education used to fulfill the requirements set forth in paragraph (c) of subsection 1 must include:

���� (a) Instruction relating to any amendments to the laws of this State governing property management; and

���� (b) If the holder of the permit is a manager of a common-interest community pursuant to chapters 116 and 116A of NAC, 3 hours of instruction relating to the laws of this State that are applicable to the responsibilities and duties involved in the management of a common-interest community.

���� 3. The renewal of a permit is effective on the date on which the application for renewal of a license is submitted to the Division or on the date on which the renewal fees for the license and the permit are paid, whichever occurs later.

���� 4. A permit expires on the same date as the holder�s license expires.

���� (Added to NAC by Real Estate Comm�n by R059-98, eff. 7-1-98; A by R136-99, 4-3-2000)

���� NAC 645.804Approval of courses for educational requirements. (NRS 645.190, 645.6052)

���� 1. For an applicant to receive credit for a course of instruction in property management that is designed to fulfill the educational requirements for the issuance of a permit which are described in paragraph (a) of subsection 2 of NRS 645.6052, the course must be approved by the Commission.

���� 2. An educational institution that wishes to obtain approval to offer courses that meet the educational requirements for the issuance or renewal of a permit to engage in property management must apply to the Division pursuant to the applicable procedures set forth in NAC 645.400 to 645.467, inclusive.

���� (Added to NAC by Real Estate Comm�n by R059-98, eff. 7-1-98; A by R031-04, 11-30-2004)

���� NAC 645.805Termination of association of person designated to apply on behalf of certain organizations. (NRS 645.050, 645.190, 645.6054)

���� 1. Except as otherwise provided in subsection 4, if a person to whom a permit is issued pursuant to NRS 645.6054 ceases to be connected or associated with the partnership, corporation, limited-liability company or sole proprietor for whom the person is acting as a property manager, the partnership, corporation, limited-liability company or sole proprietor shall not engage in the business of property management unless, not later than 30 days after that person ceases to be connected or associated with the partnership, corporation, limited-liability company or sole proprietor, the partnership, corporation, limited-liability company or sole proprietor designates another person to hold the permit on behalf of the partnership, corporation, limited-liability company or sole proprietor pursuant to the requirements set forth in subsection 3 of NRS 645.6054.

���� 2. The real estate broker of a partnership, corporation, limited-liability company or sole proprietorship who is required pursuant to NRS 645.310 to maintain a trust account for money received for property management shall:

���� (a) Request a statement from the bank in which the trust account is being held not later than 5 days after the date that the designated property manager ceases to be connected or associated with the partnership, corporation, limited-liability company or sole proprietor; and

���� (b) Submit to the Division, on a form provided by the Division, a reconciliation of the trust account for the 30 days immediately preceding the date that the designated property manager ceases to be connected or associated with the partnership, corporation, limited-liability company or sole proprietor.

���� 3. A reconciliation required pursuant to paragraph (b) of subsection 2 must be submitted to the Division not later than 15 days after the designated property manager ceases to be connected or associated with the partnership, corporation, limited-liability company or sole proprietor or by the end of the month in which the designated property manager ceases to be connected or associated with the partnership, corporation, limited-liability company or sole proprietor, whichever occurs later.

���� 4. A partnership, corporation, limited-liability company or sole proprietor may petition, in writing, the Administrator for an extension of time in which to designate another property manager after the designated property manager ceases to be connected or associated with the partnership, corporation, limited-liability company or sole proprietor. The Administrator may grant such an extension, in writing, if he or she finds the partnership, corporation, limited-liability company or sole proprietor has a severe hardship resulting from circumstances beyond the control of the partnership, corporation, limited-liability company or sole proprietor which has prevented the partnership, corporation, limited-liability company or sole proprietor from meeting the requirements of subsection 1.

���� (Added to NAC by Real Estate Comm�n by R059-98, eff. 7-1-98)

���� NAC 645.806Trust accounts: Annual accounting required; declaration of exemption; maintenance of records; administrative fine for violation. (NRS 645.050, 645.190, 645.310)

���� 1. A real estate broker who receives money, including, without limitation, rent, a security deposit, a down payment, an advance fee or earnest money deposit, or whose agent or property manager receives such money, shall provide to the Division, on a form provided by the Division, an accounting as required by subsection 5 of NRS 645.310 which shows a reconciliation of each trust account that he or she maintains.

���� 2. The reconciliation required pursuant to subsection 1 must be submitted to the Division annually by the expiration date of the license of the real estate broker. The reconciliation must include the calendar month immediately preceding the calendar month of the expiration date of his or her license as a real estate broker.

���� 3. If a real estate broker is not required to provide a reconciliation to the Division pursuant to subsection 1, the broker shall provide to the Division, on a form prescribed by the Division, a declaration to inform the Division that the broker is not required to provide a reconciliation of trust accounts. The declaration form must be submitted to the Division annually by the expiration date of the license of the broker.

���� 4. A broker who engages in property management or who associates with a property manager who engages in property management shall maintain complete accounting records of each trust account related to property management that he or she maintains for at least 5 years after the last activity by the broker which involved the trust account. If the records are maintained by computer, the broker shall maintain an additional copy of the records on computer disc for at least 5 years after the last activity by the broker which involved the trust account.

���� 5. A broker who violates the provisions of subsection 2 or 3 is subject to an administrative fine pursuant to subsection 1 of NAC 645.695.

���� (Added to NAC by Real Estate Comm�n by R059-98, eff. 7-1-98; A by R092-00, 8-29-2000; R097-14, 4-4-2016)

���� NAC 645.807Trust accounts: Execution of checks by certain broker-salespersons. (NRS 645.050, 645.190)A real estate broker-salesperson who holds a permit to engage in property management may sign checks on a trust account without the signature of the real estate broker who employs him or her if the broker-salesperson has obtained the written permission of the broker authorizing him or her to do so. A signature applied by use of a rubber stamp does not constitute the signature of a real estate broker-salesperson for the purposes of this section.

���� (Added to NAC by Real Estate Comm�n by R059-98, eff. 7-1-98; A by R031-04, 11-30-2004)

PROCEEDINGS BEFORE COMMISSION

���� NAC 645.810Procedure at hearing; receipt of evidence; date of decision. (NRS 645.190)

���� 1. The presiding officer of a hearing shall:

���� (a) Ascertain whether all persons commanded to appear under subpoena are present and whether all documents, books, records and other evidence under subpoena are present in the hearing room.

���� (b) Administer the oath to the reporter as follows:

���� Do you solemnly swear or affirm that you will report this hearing to the best of your stenographic ability?

���� (c) Administer the oath to all persons whose testimony will be taken:

���� Do you and each of you solemnly swear or affirm to tell the truth and nothing but the truth in these proceedings?

���� (d) Ascertain whether either party wishes to have a witness excluded from the hearing except during the testimony of the witness. A witness may be excluded upon the motion of the Commission or upon the motion of either party. If a witness is excluded, the witness will be instructed not to discuss the case during the pendency of the proceeding. The respondent will be allowed to remain present at the hearing. The Division may designate a person who is a member of the staff of the Division and who may also be a witness to act as its representative. Such a representative will be allowed to remain present at the hearing.

���� (e) Ascertain whether a copy of the complaint or decision to deny has been filed and whether an answer has been filed as part of the record in the proceedings.

���� (f) Hear any preliminary motions, stipulations or orders upon which the parties agree and address any administrative details.

���� (g) Have the discretion to limit the opening and closing statements of the parties.

���� (h) Request the Division to proceed with the presentation of its case.

���� 2. The Division may not submit any evidence to the Commission before the hearing except for the complaint and answer.

���� 3. The respondent may cross-examine witnesses in the order that the Division presents them.

���� 4. Witnesses or counsel may be questioned by the members of the Commission at any time during the proceeding.

���� 5. Evidence which is to be introduced:

���� (a) Must first be marked for identification; and

���� (b) May be received by the Commission at any point during the proceeding.

���� 6. When the Division has completed its presentation, the presiding officer shall request the respondent to proceed with the introduction of evidence and calling of witnesses on his or her behalf.

���� 7. The Division may cross-examine witnesses in the order that the respondent presents them.

���� 8. When the respondent has completed his or her presentation, the Division may call any rebuttal witnesses.

���� 9. When all testimony for the Division and respondent has been given and all evidence submitted, the presiding officer may request the Division and the respondent to summarize their presentations.

���� 10. The Commission may waive any provision of this section if necessary to expedite or ensure the fairness of the hearing.

���� 11. The date of decision for the purpose of subsection 2 of NRS 645.760 is the date the written decision is signed by a Commissioner or filed with the Commission, whichever occurs later.

���� 12. In the absence of the President of the Commission, any matter which must be acted upon may be submitted to the Vice President or to the Secretary.

���� 13. Upon the presentation of evidence that the respondent received notice of the hearing and has not filed an answer within the time prescribed pursuant to NRS 645.685, the respondent�s default may be entered and a decision may be issued based upon the allegations of the complaint.

���� [Real Estate Adv. Comm�n, � XVII subsecs. 1 & 2 pars. b-q, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 4-27-84; 6-3-86; A by Real Estate Div., 11-30-87; A by Real Estate Comm�n by R111-01, 12-17-2001; R031-04, 11-30-2004; R123-06, 6-1-2006)

���� NAC 645.820Procedures for rehearing. (NRS 645.190)The following procedures are used for a rehearing in a case where a ruling or decision of the Commission is against the licensee:

���� 1. The licensee may within 10 days after his or her receipt of the decision petition the Commission for a rehearing.

���� 2. The petition does not stay any decision of the Commission unless the Commission so orders.

���� 3. The petition must state with particularity the point of law or fact which in the opinion of the licensee the Commission has overlooked or misconstrued and must contain every argument in support of the application that the licensee desires to present.

���� 4. Oral argument in support of the petition is not permitted.

���� 5. The Division may file and serve an answer to a petition for a rehearing within 10 days after it has received service of the petition.

���� 6. If a petition for rehearing is filed and the Commission is not scheduled to meet before the effective date of the penalty, the Division may stay enforcement of the decision appealed from. When determining whether a stay is to be granted, the Division shall determine whether the petition was timely filed and whether it alleges a cause or ground which may entitle the licensee to a rehearing.

���� 7. A rehearing may be granted by the Commission for any of the following causes or grounds:

���� (a) Irregularity in the proceedings in the original hearing;

���� (b) Accident or surprise which ordinary prudence could not have guarded against;

���� (c) Newly discovered evidence of a material nature which the applicant could not with reasonable diligence have discovered and produced at the original hearing; or

���� (d) Error in law occurring at the hearing and objected to by the applicant during the earlier hearing.

���� 8. A petition for a rehearing may not exceed 10 pages of standard printing.

���� 9. The filing of a petition for rehearing, or the decision therefrom, does not stop the running of the 30-day period of appeal to the district court from the date of the decision of the Commission for the purpose of subsection 2 of NRS 645.760.

���� [Real Estate Adv. Comm�n, � XVII subsec. 3, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 8-21-81; 4-27-84)

���� NAC 645.830Procedures for obtaining and granting continuances. (NRS 645.190)The procedures for obtaining and granting continuances of Commission hearings are as follows:

���� 1. The time of the hearing may be continued by the Commission upon the written petition of the licensee or upon the written petition of the Division for good cause shown, or by stipulation of the parties to the hearing.

���� 2. A continuance will not be granted unless it is made in good faith and not merely for delay.

���� 3. A request for a continuance made before the hearing must be served upon the Commission as set forth in subsection 4 of NRS 645.050. If the Secretary of the Commission is not available to review and rule upon the continuance before the hearing, the continuance must be reviewed and ruled upon by the:

���� (a) President of the Commission; or

���� (b) If the President is unavailable, the Vice President of the Commission.

���� [Real Estate Adv. Comm�n, � XVII subsec. 4, eff. 10-31-75] — (NAC A by Real Estate Comm�n, 4-27-84; R111-01, 12-17-2001; R123-06, 6-1-2006)

���� NAC 645.835Amendment or withdrawal of complaint. (NRS 645.190)

���� 1. A complaint may be amended at any time.

���� 2. The Commission will grant a continuance if the amendment materially alters the complaint or a respondent demonstrates an inability to prepare for the case in a timely manner.

���� 3. A complaint may be withdrawn at any time before the hearing begins.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.840Motions. (NRS 645.190)

���� 1. All motions, unless made during a hearing, must be in writing.

���� 2. A written motion must be served on the opposing party and the Commission at least 10 working days before the time set for the hearing on the motion.

���� 3. An opposing party may file a written response to a motion within 7 working days after the receipt of the motion by serving the written response on all parties and the Commission, except that a written response may be filed less than 3 working days before the time set for the hearing on the motion only with the permission of the Commission upon good cause shown.

���� 4. The Commission may require oral argument or the submission of additional information or evidence to decide the motion.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.845Rules of evidence; informality of proceedings. (NRS 645.190)

���� 1. In conducting any investigation, inquiry or hearing, the Commission, its officers and the employees of the Division are not bound by the technical rules of evidence, and any informality in a proceeding or in the manner of taking testimony does not invalidate any order, decision, rule or regulation made, approved or confirmed by the Commission. The rules of evidence of courts of this State will be followed generally but may be relaxed at the discretion of the Commission if deviation from the technical rules of evidence will aid in determining the facts.

���� 2. Any evidence offered at a hearing must be material and relevant to the issues of the hearing.

���� 3. The Commission may exclude inadmissible, incompetent, repetitious or irrelevant evidence or order that presentation of that evidence be discontinued.

���� 4. A party who objects to the introduction of evidence shall briefly state the grounds of the objection at the time the evidence is offered. The party who offers the evidence may present a rebuttal argument to the objection.

���� 5. If an objection is made to the admissibility of evidence, the Commission may:

���� (a) Note the objection and admit the evidence;

���� (b) Sustain the objection and refuse to admit the evidence; or

���� (c) Receive the evidence subject to a subsequent ruling by the Commission.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.850Submission or exclusion of documentary evidence of respondent. (NRS 645.190)

���� 1. Not less than 5 working days before a hearing before the Commission, the respondent must provide to the Division a copy of all documents that are reasonably available to the respondent which the respondent reasonably anticipates will be used in support of his or her position. The respondent shall promptly supplement and update any such documents.

���� 2. The respondent shall provide, at the time of the hearing, 10 copies of each document he or she wishes to have admitted into evidence at the hearing.

���� 3. If the respondent fails to provide any document required to be provided by the provisions of this section, the Commission may exclude the document.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.855Attendance of certain brokers required at disciplinary hearing. (NRS 645.190) 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 was associated at the time of the alleged violation and the broker with whom the person licensed as a real estate salesperson or real estate broker-salesperson is currently associated shall attend any disciplinary hearing before the Commission concerning that licensee.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004; A by R123-06, 6-1-2006)

���� NAC 645.860Failure of party to appear at hearing. (NRS 645.190)If a party fails to appear at a hearing scheduled by the Commission and a continuance has not been requested or granted, upon an offer of proof by the Division that the absent party was given proper notice and upon a determination by the Commission that proper notice was given, the Commission may proceed to consider the case without the participation of the absent party and may dispose of the matter on the basis of the evidence before it. If the respondent fails to appear at the hearing or fails to reply to the notice, the charges specified in the complaint may be considered as true.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.865Voluntary surrender of license, permit, registration or certificate. (NRS 645.190)The Commission may accept the voluntary surrender of a license, permit, registration or certificate in lieu of imposing any other disciplinary action set forth in chapter 645 of NRS.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.870Reporting of disciplinary action or denial of application. (NRS 645.190)The Commission may report any disciplinary action it takes against a licensee or any denial of an application for a license to:

���� 1. Any national repository which records disciplinary actions taken against licensees;

���� 2. Any agency of another state which regulates the practice of real estate; and

���� 3. Any other agency or board of the State of Nevada.

���� (Added to NAC by Real Estate Comm�n by R031-04, eff. 11-30-2004)

���� NAC 645.875Petitions for regulations. (NRS 645.190)

���� 1. Any person may by petition, request the Commission to adopt, file, amend, or repeal any regulation. The petition must clearly identify in writing the change requested of the regulation and must contain all relevant data, views and arguments regarding the change.

���� 2. The Commission will consider the petition at the next regularly scheduled meeting which occurs more than 10 working days after the submission of the petition.

���� [Real Estate Adv. Comm�n, � II subsec. 3, eff. 12-30-76] — (NAC A by Real Estate Comm�n, 8-21-81) — (Substituted in revision for NAC 645.090)

PERMIT TO ENGAGE IN BUSINESS AS BUSINESS BROKER

���� NAC 645.901Definitions. (NRS 645.190, 645.863)As used in NAC 645.901 to 645.919, inclusive, unless the context otherwise requires, the words and terms defined in NAC 645.903 to 645.909, inclusive, have the meanings ascribed to them in those sections.

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

���� NAC 645.903�Applicant� defined. (NRS 645.190, 645.863)�Applicant� means a licensee who is applying for a permit.

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

���� NAC 645.905�Business broker� defined. (NRS 645.190, 645.863)�Business broker� has the meaning ascribed to it in NRS 645.0075.

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

���� NAC 645.907�License� defined. (NRS 645.190, 645.863)�License� means a license as a real estate broker, real estate broker-salesperson or real estate salesperson.

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

���� NAC 645.909�Permit� defined. (NRS 645.190, 645.863)�Permit� means a permit to engage in business as a business broker.

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

���� NAC 645.911�Engage in business as a business broker� interpreted. (NRS 645.050, 645.190, 645.863)As used in chapter 645 of NRS, the Commission will interpret the term �engage in business as a business broker�:

���� 1. Except as otherwise provided in subsection 2, to include engaging in the business of:

���� (a) Selling, exchanging, optioning or purchasing;

���� (b) Negotiating or offering, attempting or agreeing to negotiate the sale, exchange, option or purchase of; or

���� (c) Listing or soliciting prospective purchasers of,

� any business, the individual assets of any business or any ownership interest in any business, including, without limitation, any stock, partnership interest or membership interest in a limited-liability company, for which income and expenses have been reported to the Internal Revenue Service in the previous calendar or fiscal year on Form 1040, Form 1065, Form 1120 or Form 1120S, or any combination thereof, unless 50 percent or more of the gross reported income, excluding net capital gain, was earned by the rental of real estate reported on Form 8825.

���� 2. Not to include engaging in the business of:

���� (a) Selling, exchanging, optioning or purchasing;

���� (b) Negotiating or offering, attempting or agreeing to negotiate the sale, exchange, option or purchase of; or

���� (c) Listing or soliciting prospective purchasers of,

� real property and a related business, if more than 50 percent of the gross income from the related business is directly derived from the use of the real property, including, without limitation, income derived from the transfer of tenant leases or management agreements and income derived from storage facilities, hotels, motels, ranches or any other business that would have no value but for the concurrent transfer of the real property.

���� (Added to NAC by Real Estate Comm�n by R123-06, eff. 6-1-2006; A by R077-07, 1-30-2008)

���� NAC 645.913General requirements; fees; background investigation. (NRS 645.190, 645.863)

���� 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)

���� NAC 645.915Expiration date; requirements and fee for renewal. (NRS 645.190, 645.863)

���� 1. A permit expires on the same date as the license of the holder of the permit expires.

���� 2. The Division may renew a permit if the holder of the permit submits to the Division:

���� (a) A request for the renewal of the permit with the application to renew his or her license;

���� (b) A renewal fee of $40; and

���� (c) Documentation indicating that the holder of the permit has successfully completed the continuing education required by paragraph (a) of subsection 4 of NRS 645.863.

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

���� NAC 645.917Effective date of renewal. (NRS 645.190, 645.863)The renewal of a permit is effective on the date on which the applicant submits to the Division an application to renew his or her license or the applicant pays the renewal fees for the license and the permit, whichever occurs later.

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

���� NAC 645.919Approval of courses for educational requirements. (NRS 645.190, 645.863)

���� 1. For an applicant to receive credit for a course of instruction in business brokerage that is designed to fulfill the educational requirements for the issuance or renewal of a permit, the Commission must approve the course.

���� 2. An educational institution that wishes to obtain the approval of the Commission to offer courses that meet the educational requirements for the issuance or renewal of a permit must apply to the Division pursuant to the procedures set forth in NAC 645.400 to 645.467, inclusive.

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

Under which of the following circumstances is it allowed under Georgia law that a licensee can keep his own Wall license?

What is true about brokerage engagements in Georgia?

What must occur prior to a client receiving brokerage services in Georgia?

How does Georgia license law define the commission?