Key Takeaways
- Nevada requires licensees to provide the "Duties Owed by a Nevada Real Estate Licensee" form to clients and unrepresented parties
- Licensees owe duties of honesty, reasonable skill and care, disclosure of material facts, and confidentiality
- Dual agency (representing both parties) requires written disclosure and consent from both parties
- The "Consent to Act" form must be signed before acting as a dual agent
- Confidential information must be protected for 1 year after termination of the brokerage agreement
Nevada Agency Relationships
Nevada law establishes specific rules governing the agency relationships between licensees and their clients and customers under NRS 645.252 and related statutes.
Types of Agency Relationships
Single Agency
A single agent is a licensee who represents only one party in a transaction:
| Single Agent Role | Represents |
|---|---|
| Seller's agent (listing agent) | Seller only |
| Buyer's agent | Buyer only |
Dual Agency
Dual agency occurs when a licensee (or brokerage) represents both parties in the same transaction:
| Situation | Dual Agency? |
|---|---|
| One agent represents both buyer and seller | Yes |
| Two agents in same brokerage represent buyer and seller | Yes |
| Buyer's agent and seller's agent from different brokerages | No |
Warning: Dual agency is legal in Nevada but requires written consent from both parties BEFORE the dual agency relationship begins.
Duties Owed by Nevada Licensees
Nevada law (NRS 645.252) requires licensees to perform certain duties in all real estate transactions:
Duties to ALL Parties
| Duty | Description |
|---|---|
| Honesty | Deal honestly and in good faith |
| Reasonable skill and care | Exercise competency in all dealings |
| Disclosure of material facts | Disclose known facts affecting property value |
| Timely presentation | Present all offers promptly |
| Account for funds | Properly handle all money received |
Additional Duties to Clients (Agency Relationship)
| Duty | Description |
|---|---|
| Loyalty | Put client's interests above your own |
| Confidentiality | Protect confidential information |
| Obedience | Follow lawful instructions |
| Full disclosure | Inform client of all relevant information |
Duties Owed Form Requirements
"Duties Owed by a Nevada Real Estate Licensee" Form
Nevada requires licensees to provide this form to:
| Who Must Receive | When |
|---|---|
| Party you represent (client) | Before acting as agent |
| Each unrepresented party | Before substantive discussions |
Signature Requirements
| Requirement | Details |
|---|---|
| Licensee signature | Required |
| Client signature | Required (party you represent) |
| Unrepresented party signature | Required if they receive form |
Key Point: You are only required to obtain signatures from the party for whom you are acting as an agent AND each unrepresented party.
Disclosure of Material Facts
Under NRS 645.252, licensees must disclose to all parties:
What Must Be Disclosed
- Any material and relevant facts the licensee knows
- Facts the licensee should have known through reasonable care and diligence
- Facts relating to the property that is the subject of the transaction
"Should Have Known" Standard
This creates a duty to investigate - licensees cannot simply claim ignorance if a reasonable licensee would have discovered the information.
| Situation | Disclosure Required? |
|---|---|
| Known foundation issues | Yes - material fact |
| Visible water stains (should investigate) | Yes - should have known |
| Client's motivation to sell | No - confidential |
| Pending foreclosure | Yes - material fact |
Confidentiality Requirements
Licensees must keep confidential information private:
Duration of Confidentiality
| Timeline | Requirement |
|---|---|
| During relationship | Absolute confidentiality |
| After termination | 1 year confidentiality period |
Exceptions to Confidentiality
Confidential information may be disclosed if:
- Required by law or court order
- Information becomes public knowledge
- Written permission from the party is obtained
How long must a Nevada licensee maintain confidentiality of client information after the brokerage agreement terminates?
What standard does Nevada apply to material fact disclosure?