You Be the Commissioner.pptxYou Be the Commissioner.pptx

You Be the Commissioner.pptx

1. “YOU BE THE COMMISSIONER” written By Joseph R. Fitzpatrick CE #5955001-RE 3 Hours of Law and Legislation approved by the Nevada Real Estate Division on behalf of the Commission

2. Housekeeping No phones or texting during the class. Please make sure that you sign in. Restrooms Direct attention to instructor. Refrain from distracting activities. Breaks Instructor Evaluations Attendance sign out Certificates of Completion Copyright 2013 Real Estate School of Nevada, Inc. All Rights Reserved. 2

3. INTRODUCTION We have identified some of the most relevant laws and statutes from NRS and NAC 645 as they pertain to the practicing, Nevada, real estate licensee, and built them into three case studies. Students will go through each case study, led by the instructor, and identify the specific laws that were violated by referring to the statutes and regulations included in the handouts. © Copyright 2021, Real Estate School of Nevada. All rights reserved. 3

4. Case Study #1 Agent Harrison met Mr. and Mrs. Thomas at an open house he was conducting on his team member’s listing. The “Champions Realty Group” yard sign was proudly displayed and generated a lot of traffic through the open house. Mr. and Mrs. Thomas were quite interested in the home, and Harrison thought he might have a chance at a sale. Harrison knew of a prior flooding that resulted in mold and other damage but chose not to discuss it with the Thomases so as to not scare them off. Mr. and Mrs. Thomas asked the agent if he knew what price the sellers would accept to which he replied, “They are on the market for $249,900, but I am fairly sure they would take $240,000.” The couple proceeded to write an offer with Harrison for $240,000 which did not include an earnest money deposit. The sellers accepted the offer and Harrison opened escrow the following morning. The house is in a common interest community, but Harrison did not provide the buyers with the “Did You Know?” form. The Thomases were satisfied with the home inspection report and were approved for their FHA financing. On the day of closing, Harrison turned in his paperwork to his broker’s transaction coordinator to be paid on time. While seated with the Thomases at closing, Harrison asked the couple to sign for receipt of the Seller’s Real Property Disclosure Statement and the Duties Owed. The Thomases were very appreciative that Agent Harrison saved them $10,000 and gave him a personal check in the amount of $500 to reward him for his efforts. © Copyright 2021, Real Estate School of Nevada. All rights reserved. 4

5. CASE STUDY #1: “Agent Harrison met Mr. and Mrs. Thomas at an open house he was conducting on his team member’s listing…” You be the Commissioner! Discuss with the other commissioner's potential violations of the real estate licensing laws. What specific statutes or regulations may have been violated? What sanctions could be imposed? © Copyright 2021, Real Estate School of Nevada. All rights reserved. 5

6. CASE STUDY #1: Advertising as a team NAC 645.611 Disclosure of material facts NRS 645.252,.254 Earnest money is not required --- Confidential Information NRS 645.254 Submitting paperwork to broker NAC 645.650 Consent to Act Did You Know? Compensation from someone other than the broker NRS 645.630 1(c) Negligent/incompetent dealings NAC 645.605 Delivery of SRPD at least 10 days prior to closing NRS 113.130 © Copyright 2021, Real Estate School of Nevada. All rights reserved. 6

7. CASE STUDY #1: The Commission may require a licensee, property manager or owner-developer to pay an administrative fine of not more than $10,000 for each violation he or she commits or suspend, revoke, deny the renewal of or place conditions upon his or her license, permit or registration, or impose any combination of those actions … © Copyright 2021, Real Estate School of Nevada. All rights reserved. 7

8. Case Study #2 Susan is a broker-salesperson for ERA Brownstone Realty. She currently has a listing on Maple Avenue that is getting a lot of activity. Susan, herself, is working with a married couple who is interested in making an offer. Donna, from Gemstone Realty, emailed Susan an offer, along with her Duties Owed and prequalification letter. Thinking she might be writing an offer with her own clients; Susan holds off on presenting Donna’s offer. Susan’s buyers do submit an offer which the sellers accept. Susan also presents the offer from Donna’s buyers which the sellers ignore. Susan informs Donna by email that her buyers’ offer was rejected. Upon a complaint filed by Donna’s clients, the chief investigator of the Division appeared at Susan’s office and asked to see the transaction records. The broker informed the investigator that he did not have paperwork for the transaction as of yet. Donna’s clients alleged that Susan violated her duty of absolute fidelity by not presenting the offer © Copyright 2021, Real Estate School of Nevada. All rights reserved. 8

9. CASE STUDY #2: “Susan is a broker-salesperson for ERA Brownstone Realty. She currently has a listing on Maple Avenue that is getting a lot of activity…” You be the Commissioner! Discuss with the other commissioner's potential violations of the real estate licensing laws. What specific statutes or regulations may have been violated? What sanctions could be imposed? © Copyright 2021, Real Estate School of Nevada. All rights reserved. 9

10. CASE STUDY #2: Present all offers as soon NRS 645.254 (4), as practicable NAC 645.630 Written notice of rejection of offer NAC 645.632 Maintenance of records NAC 645.655, NAC 645.650 Salesperson’s duty to submit paperwork NAC 645.650 Absolute fidelity NAC 645.605 (6) Failure to submit an offer NRS 645.645 (8) © Copyright 2021, Real Estate School of Nevada. All rights reserved. 10

11. CASE STUDY #2: The Commission may require a licensee, property manager or owner-developer to pay an administrative fine of not more than $10,000 for each violation he or she commits or suspend, revoke, deny the renewal of or place conditions upon his or her license, permit or registration, or impose any combination of those actions … © Copyright 2021, Real Estate School of Nevada. All rights reserved. 11

12. Case Study #3 Albert is a Nevada real estate salesperson helping his brother to find a house in Henderson. The brothers have looked at several properties and made a couple of offers but keep getting beat out by other buyers as it is a multiple-offer environment. Albert shows his brother a house Albert just listed and tells the brother the seller would be willing to take an offer at $3,000 below list price. Although Albert presses his sibling to write offer immediately, the brother informs him he needs a day to discuss it with his fiancée and allow her an opportunity to see the house.  Meanwhile, Albert receives an email from salesperson Jackie with a full-price offer and prequalification letter on the listing. Albert holds off on contacting his seller client until he hears back from his brother. The following day, after the brother and his fiancée have had the opportunity to see the house and discuss, they ask Albert to write an offer. He writes an offer to list price with the seller paying $3,000 towards the buyer’s closing costs. That evening, he meets with the sellers to present his brother’s offer which the sellers accept without any counteroffer. Jackie’s offer is not presented to the seller.  Upon signatures on the purchase agreement, Albert delivers to both parties a Duties Owed form disclosing he is a Nevada real estate licensee representing the buyer, a copy of the SRPD signed by both parties, copies of each party’s brokerage agreements, along with the fully executed RPA. The day before closing, Albert conducts a walk-through inspection with his brother and fiancée. The seller is also present for the inspection. Albert’s seller client pulls him aside and whispers, “the heating system is not presently working, but please don’t say anything.” © Copyright 2021, Real Estate School of Nevada. All rights reserved. 12

13. CASE STUDY #3: “Albert is a Nevada real estate salesperson helping his brother to find a house in Henderson. The brothers have looked at several properties and made a couple of offers, but keep getting beat out by other buyers as it is a multiple-offer environment…” You be the Commissioner! Discuss with the other commissioners' potential violations of the real estate licensing laws. What specific statutes or regulations may have been violated? What sanctions could be imposed? © Copyright 2021, Real Estate School of Nevada. All rights reserved. 13

14. CASE STUDY #3: Negligent, incompetent dealings NAC 645.605 Present all offers as soon NRS 645.254 (4), as practicable NAC 645.630 Absolute fidelity NAC 645.605 (6) Failure to submit an offer NRS 645.645 (8) Interest in a principal NRS 645.252 1(c), NAC 645.640 1(a) Consent to Act NRS 645.252 1(d) Confidential information NRS 645.252 1(d)3 NRS 645.254 (2) Disclosure of material facts NRS 645.252, .254 Delivery of brokerage agreements NRS 645.300 Representing a price not authorized NRS 645.635 (1) © Copyright 2021, Real Estate School of Nevada. All rights reserved. 14

15. CASE STUDY #3: The Commission may require a licensee, property manager or owner-developer to pay an administrative fine of not more than $10,000 for each violation he or she commits or suspend, revoke, deny the renewal of or place conditions upon his or her license, permit or registration, or impose any combination of those actions … © Copyright 2021, Real Estate School of Nevada. All rights reserved. 15

16. TIME PERMITTING… Other NRS and NAC 645 statutes and provisions not discussed in the case studies… © Copyright 2021, Real Estate School of Nevada. All rights reserved. 16

17. End-of-Course Quiz You are now ready to take the Quiz!! © Copyright 2021, Real Estate School of Nevada. All rights reserved. 17

18. End-of-Course Quiz 1. Smith, Johnson, and Kinson formed a real estate team. Which of the following would be ab acceptable team name for the group to advertise? Century 2-1 Kinson Team The Smith Real Estate Team Realty Pros The SJK Team © Copyright 2021, Real Estate School of Nevada. All rights reserved. 18

19. End-of-Course Quiz 2. A licensee who has knowledge of a material fact, must: D isclose the material fact to his client only. D isclose the material fact to all parties in the transaction. D isclose the material fact on the SRPD. None of the above © Copyright 2021, Real Estate School of Nevada. All rights reserved. 19

20. End-of-Course Quiz 3. The duty of confidentiality in a Nevada agency relationship lasts: U ntil the agency relationship is terminated. F or 6 months after termination of the agency. F or one year after termination of the agency. F orever. © Copyright 2021, Real Estate School of Nevada. All rights reserved. 20

21. End-of-Course Quiz 4. A salesperson or broker-salesperson must submit all transaction paperwork to the employing broker within: O ne business day. T hree calendar days. F ive calendar days. 10 days. © Copyright 2021, Real Estate School of Nevada. All rights reserved. 21

22. End-of-Course Quiz 5. A completed SRPD must be delivered to the buyer no later than:   4 days prior to the close of escrow. 24 hours of acceptance. T he opening of escrow. 10 days prior to closing. © Copyright 2021, Real Estate School of Nevada. All rights reserved. 22

23. End-of-Course Quiz 6. For each violation of the licensing law, the Commission may impose an administrative fine for up to: $500. $5,000. $10,000. $25,000. © Copyright 2021, Real Estate School of Nevada. All rights reserved. 23

24. End-of-Course Quiz 7. Which of the following terms most closely resembles the concept of fiduciary duties?   A bsolute fidelity C onsent to act C ompetency B rokerage © Copyright 2021, Real Estate School of Nevada. All rights reserved. 24

25. End-of-Course Quiz 8. A broker must maintain records for inspection by the Division for at least:   3 years. 5 years. 7 years. 10 years. © Copyright 2021, Real Estate School of Nevada. All rights reserved. 25

26. End-of-Course Quiz 9. A seller who knowingly fails to disclose a material fact could be sued for:   A ctual damages. T reble damages. L iquidated damages. None of the above © Copyright 2021, Real Estate School of Nevada. All rights reserved. 26

27. End-of-Course Quiz 10. In addition to sanctioning an administrative fine, the Commission may also take what disciplinary action against a licensee? R evocation S uspension P lace conditions upon license All the above © Copyright 2021, Real Estate School of Nevada. All rights reserved. 27

28. “YOU BE THE COMMISSIONER” written By Joseph R. Fitzpatrick CE #5955001-RE 3 Hours of Law and Legislation approved by the Nevada Real Estate Division on behalf of the Commission