When can the Nevada Real Estate Commission impose discipline and suspend your license?

Real estate brokers and salespeople face disciplinary action by the Nevada Real Estate Commission for such offenses as:

  • Obtaining a license by fraudulent means,
  • Making a material misrepresentation,
  • Gross negligence or incompetence,
  • Refusing to sell property to someone due to prejudice, and/or
  • Deceitful, fraudulent, or dishonest dealings

The Commission conducts administrative hearings to determine whether an accused broker or salesperson committed misconduct. Potential penalties include:

  • a $10,000 fine, and/or
  • a suspension, revocation, or limitation the scope of the broker's license

Anyone facing administrative proceedings by the Commission is advised to hire private counsel to conduct their own investigation and represent the licensee at the hearing.

In this article, our Las Vegas criminal defense attorneys discuss:

Real estate license
Real Property brokers face disciplinary action for dishonest conduct.

1. How does the Nevada Real Estate Commission work?

The Nevada Real Estate Commission advises the Nevada Real Estate Division, grants licenses to brokers and salespeople, and administers discipline to its licensees. The Commission is comprised of five people appointed by the Nevada Governor...

These five members of the Commission must have been a practicing real estate broker or salesman. Three members must have practiced principally in Clark County, one member must have practiced principally in Washoe County, and the remaining member must have practiced in one of Nevada's rural counties. Members may serve no more than two consecutive three-year terms.1

2. Can I apply for a Nevada real estate license with a criminal record?

The Real Estate Commission has the discretion to deny licenses to applicants who have been convicted of either of the following offenses in Nevada or elsewhere:

Note that the Commission must deny licenses to applicants convicted of any of the above offenses if less than three (3) years have passed since the case closed.2

Woman holding "Sold" sign
Having a criminal record can impede a person from obtaining a real property license.

Nevada's real estate license application does not mention anything about sealed criminal records, which suggests that applicants do not have to reveal past criminal convictions that have been sealed or expunged. However, applicants are encouraged to consult with an attorney before submitting the paperwork to review the latest laws and regulations.

Learn more about sealing criminal records in Nevada.

3. What triggers disciplinary action against Nevada real estate brokers and salespeople?

Ten of the many crimes or types of misconduct that the Real Estate Commission will discipline licensees for are:

  1. Obtaining a license by fraudulent means, or knowingly submitting any false or fraudulent appraisal to any financial institution or other interested person, or making any material misrepresentation
  2. Failing to maintain each brokerage agreement and property management agreement, or failing to account for or to remit any money which comes into their possession and which belongs to others
  3. Failing to balance a trust account monthly and submitting it to the Real Estate Division annually
  4. Commingling the money or other property of clients with his/her own or converting the money of others to his/her own use
  5. Illegally and willfully using the name of a real property organization that the licensee does not belong to
  6. Getting convicted of a crime involving moral turpitude, deceit, or misrepresentation, or of a felony related to the licensee's practice, or committing gross negligence, incompetence, or deceitful, fraudulent, or dishonest dealings
  7. Knowingly permitting any person whose license has been revoked or suspended to act as a real property broker, broker-salesperson, or salesperson, with or on behalf of the licensee
  8. Offering real property for sale or lease without the knowledge and consent of the owner or the owner's authorized agent or on terms other than those authorized by the owner or the owner's authorized agent
  9. Failure to deliver within a reasonable time a completed copy of any purchase agreement or offer to buy or sell real property to the purchaser or to the seller, or failure to deliver to the seller in each real property transaction (within 10 business days after the transaction is closed) a complete, detailed closing statement
  10. Refusing because of race, color, national origin, sex, or ethnic group to show, sell, or rent any real property for sale or rent to qualified purchasers or renters
Sign that says "licensed agent"
Brokers are required to inform the Nevada Real Estate Commission if they get convicted of certain crimes.

Brokers and salespeople can also be disciplined for not informing the Board if they get convicted of any of the following crimes: 

  • Any felony relating to the practice of the licensee; or
  • Any offense involving fraud, deceit, misrepresentation, or moral turpitude.

It makes no difference whether the convictions happened in Nevada or another jurisdiction.3

4. What happens if there is a complaint against me?

Anyone in the general public may submit a complaint to the Real Estate Commission against any real property broker or salesperson. Upon receipt of the complaint, the Commission will investigate the matter.

If the Commission determines administrative action may be warranted, the Commission's Administrator will serve on the licensee a formal complaint listing the allegations. The licensee is required to answer the complaint within 30 days. If he/she gives no answer, the Commission can enter a default judgment, which may result in a license suspension, revocation, or other penalties.

4.1. Administrative Hearing

The Commission usually schedules a hearing within 90 days of issuing the complaint. Note that the licensee gets to keep his/her license pending the results of the hearing (in most cases). 

The licensee must receive at least 30 days notice of when/where the hearing will be. The Commission must also give the licensee all the communications, reports, affidavits, or depositions relevant to the complaint. 

The hearing is essentially an administrative version of a trial. The licensee may have an attorney present to represent him/her and to present evidence and cross-examine witnesses. 

The Commission has 15 days after the hearing to hand down an informal decision and 60 days after the hearing to give a written notice of the ruling. Possible disciplinary actions include:

Man holding "Sold" sign in front of a "for sale" house with a happy couple in the background.
The Nevada Real Estate Commission can impose various types of discipline, from fines to license revocations.
  • administrative fines of up to $10,000,
  • limitation on scope of license
  • no new renewals of license,
  • license suspension, and/or
  • license revocation

Note that these disciplinary actions may take effect no earlier than 31 days after the Commission gives notice of its decision.

If the Commission finds against the licensee, he/she may pursue a judicial review (similar to an appeal) of the decision. Note that licensees who have their licenses revoked are ineligible for another license for at least one year.4

5. Can I go to jail for brokering real estate without a license in Nevada?

A fine is more likely than jail for a first-time offense. Acting as a real property broker or salesman without a current and valid license by the Nevada Real Estate Commission is a gross misdemeanor in Nevada, carrying a penalty of:

  • up to $2,000 in fines, and/or
  • up to 364 days in jail (at the judge's discretion)

Nevada law levies harsher punishments for obtaining -- or attempting to obtain -- a real property license through intentional misrepresentation, deceit, or fraud. This is a category D felony in Nevada, carrying a penalty of:

Predictably, people with past convictions of brokering without a license or falsely obtaining a license are more likely to be denied a real property license in the future.5

6. Other occupational licenses

6.1. Contractors

Licensed builders risk having their licenses revoked or suspended if they do substandard work or engage in unprofessional conduct or crimes. Learn more in our article on disciplinary proceedings and license revocations for Nevada contractors.

6.2. Nursing

Nurses and nursing assistants are regulated by the Nevada Nursing Board, which adopts regulations, holds hearings, and imposes penalties for misconduct. Learn more about Nevada nursing license revocations and suspensions.

6.3. Doctors

The Nevada Board of Medical Examiners can discipline doctors, physician assistants, and respiratory care specialists when they allegedly commit misconduct or certain crimes. Learn more about Nevada medical license revocations and suspensions.

6.4. Dentists

Crimes of moral turpitude or unprofessional conduct can cost dentists and hygienists their license. See more in our article on license revocations or suspensions for Nevada dentists.

6.5. Attorneys

Lawyers face discipline by the Nevada State Bar for getting convicted of felonies or DUI or for committing professional misconduct. Learn more about Nevada attorney license disbarment or suspension.

6.6. Accountants

The Nevada State Board of Accountancy can revoke the licenses of CPAs who violate certain rules or commit serious crimes. Learn more in our article about disciplinary proceedings and license suspensions for Nevada accountants.

6.7. Social Workers

Social workers risk losing their license as a penalty for getting a criminal conviction or violating professional guidelines. Go to our article about suspending or revoking social worker's licenses in Nevada disciplinary hearings.

6.8 Teachers

Nevada educators who get convicted of felonies, crimes involving moral turpitude, or sex offenses with pupils, may lose their license. Go to our article about suspending or revoking teaching licenses in Nevada.

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Call our Las Vegas criminal defense attorneys at 702-DEFENSE for a FREE consultation.

Call a Nevada criminal defense attorney...

Are you at risk of losing your real property license? Phone our Las Vegas criminal defense attorneys at 702-DEFENSE (702-333-3673) for a free consult. We will walk you through the process of fighting to keep your well-earned license and livelihood.

Facing discipline in California? See our article on California real estate licenses and disciplinary actions.

Facing discipline in Colorado? See our article on Colorado real estate licenses and disciplinary actions.

Legal References:

  1. NRS 645.100; NRS 645.050; NRS 645.060.
  2. NRS 645.330.
  3. NRS 645.610 - NRS 645.770.
  4. Id.
  5. NRS 645.990.

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