Real Estate Licenses and Licensee Conduct Details

Introduction

  • Presented by: Dave Grant, corporate broker in Las Vegas

  • Topic: Licensee conduct and types of licenses for key real estate professionals

Types of Real Estate Licenses

  • Broker vs. Salesperson:

    • Brokers must complete a broker's exam, which includes both state and national portions.

    • Brokers fulfill time requirements through work experience or education.

    • Broker-salespeople operate in the field but not as office brokers.

    • Only broker-salespeople or brokers can manage an office.

  • Salesperson License:

    • Requires passing both national and state exams.

    • If licensed in one state and moving to another, the national portion is transferable, but state requirements need to be met.

Additional Licensing Requirements in Nevada

  • State Business License:

    • Required for real estate professionals in Nevada, issued at the state level.

  • City/County License:

    • For example, a city business license for Las Vegas or a county license for Clark County.

    • Renewed annually.

  • Property Management Permit:

    • Required for property managers, which also necessitates a minimum salesperson's license.

    • Supervising brokers must have this permit as well, with additional education and training required.

  • Business Broker Permit:

    • Required for anyone selling or exchanging a business.

  • Community Manager Permit:

    • Needed for managing community associations (similar to HOAs).

Licensee Practices

  • A state-issued real estate license is mandatory to assist the public in real estate transactions.

Licensing Requirements in Nevada

  • Initial Licensing:

    • Complete 90-hour pre-licensing education.

    • Pass state and national exams.

    • Salespersons must renew their licenses annually and complete 30-hour post-licensing education in their first year.

  • Broker Requirements:

    • Pass state and national exams, background checks, and have a relevant four-year college degree or a combination of experience and education.

    • Must have two years active experience immediately before applying.

    • Prove financial means for at least six months to maintain operations.

Renewal Requirements

  • After the first year, brokers need 24 hours of continuing education, with renewals every two years.

  • Change Notifications:

    • Notify the division about name or address changes within thirty days.

    • For changing brokerages, affiliate within ten days; otherwise, the license may be put on hold.

    • Disclose any criminal convictions or judgments.

License Practices and Responsibilities

  • Original licenses are mailed to the brokerage and retained there.

    • If switching brokerages, the original license can be mailed to the division or hand-carried.

Importance of Continuous Improvement

  • Real estate professionals should maintain focus on legislative and law changes impacting their business,

  • Emphasis on the importance of education, training, and networking within the real estate community.

License Conduct and Ethics

  • Introduced by Kristen Bocatini, faculty instructor

  • Discusses professional expectations, ethics, and laws in real estate.

  • Kristen's background:

    • Bachelor's degree in communications.

    • Extensive professional background including working on cruise ships and transitioning to real estate.

Course Objectives

  • Understanding real estate professional expectations.

  • Discussing ethics, real estate law, and professionalism.

Real Estate Professional Expectations

  • Discuss the standards expected of real estate professionals.

Understanding Ethics

  • What is Ethics?:

    • Principles defining behavior as right or proper.

    • Different from morality; ethics deals with professional standards and conduct.

  • Importance of Ethical Practices:

    • Essential for serving the public good.

Laws and Regulations

  • Familiarity with laws important in real estate practice and ensuring compliance.

Professionalism

  • Maintain professionalism in all client interactions, ensuring the representation of interests effectively while respecting others involved in a transaction.

Required Licensing Documents

  • Salesperson must submit application and complete necessary documentation, including:

    • Fingerprint card

    • Passing exam results

    • Proof of pre-licensing education completion

    • Application fee of $125.

Compensation

  • Licensees may only accept compensation for services from their affiliated brokerage.

    • Importance of thoroughly understanding compensation plans and brokerage policies.

Categories of Real Estate Services

  • Licensees can engage in:

    • Residential

    • Commercial

    • Industrial

    • Agricultural

    • Timeshares.

Definition of Services by Licensees

  • Defined in NRS 645.03 as engaging in selling, exchanging, options, purchases, leases, and negotiations for compensation.

Broker Responsibilities in Nevada

  • Distinctions between salesperson and broker requirements, emphasizing additional experience and education for brokers.

  • Highlight financial assets required for office operations for 180 days.

  • Opportunity to hold a salesperson-broker license at some point.

Client Representation

  • Types of agency recognized in Nevada:

    • Single Agency: Representation for either buyer or seller.

    • Multiple Representation/Dual Agency: Representing both parties in a transaction with mutual consent.

    • Designated Agency: Assigning different agents within a brokerage to represent the buyer and seller.

Realtor Distinction

  • Not all licensees are REALTORS; all REALTORS are licensed professionals bound to the National Association of REALTORS Code of Ethics.

    • REALTORS adhere to a higher standard of ethics and can discern the legal implications of their professional conduct.

Code of Ethics Overview

  • Established by the National Association of REALTORS, encompassing 17 articles and relevant standards.

    • Promotes values like honesty, integrity, fairness, and competency.

  • Duty to serve the public good and follow ethical standards.

Duties to Clients and Customers

  • Support client interests without undermining others.

  • Importance of recognizing the effect of negotiations on all parties.

Duties to the Public

  • Equal services provided without discrimination based on personal attributes.

    • Agents must maintain standards of competence specific to their real estate fields.

Duties to Other REALTORS

  • Collaboration and maintaining professionalism with others in the industry.

Ethics of Practice

  • Ethical principles influence behavior and decision-making.

    • Importance of mutual respect among real estate professionals.

Materials and Confidentiality

  • Licensees must disclose known material facts, such as latent defects affecting a property’s value or condition.

  • Ethics dictate maintaining confidentiality of personal client information not pertaining directly to the property sale.

Recap and Closing Thoughts

  • Emphasize the responsibility of realtors to serve the public through ethical conduct.

  • Constantly communicate openly and maintain ethical standards for long-term career success in real estate.

  • End on a positive note about building client relationships with integrity and ethics.

Conclusion

  • Continuation of ethical discussions in the next class led by Kristen Bocatini.