Key Takeaways
- The Nevada Real Estate Division (NRED) regulates real estate licensees under Nevada Revised Statutes Chapter 645
- NRED operates within the Department of Business and Industry
- The Real Estate Commission advises NRED on policy matters and consists of 5 members appointed by the Governor
- NRED has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- Nevada requires 120 hours of pre-license education for salesperson applicants
Nevada Real Estate Division (NRED)
The Nevada Real Estate Division (NRED) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in Nevada under Nevada Revised Statutes (NRS) Chapter 645.
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NRED Structure and Authority
Department Placement
NRED operates within the Department of Business and Industry, which is part of the Nevada state government's executive branch.
| Entity | Role |
|---|---|
| Department of Business and Industry | Parent department |
| Nevada Real Estate Division | Regulatory agency |
| Real Estate Commission | Advisory body |
| Real Estate Administrator | Division head |
Real Estate Commission
The Nevada Real Estate Commission is an advisory body that assists NRED:
| Detail | Information |
|---|---|
| Members | 5 members appointed by the Governor |
| Composition | At least 3 must be licensed brokers |
| Term | 4-year terms |
| Purpose | Advise on policy, review regulations |
Key NRED Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Recovery Fund | Administer the Real Estate Recovery Fund |
Nevada Revised Statutes Chapter 645
NRS Chapter 645 is the primary statute governing real estate licensing in Nevada. Key provisions include:
- Who must be licensed - Definitions of broker and salesperson activities
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Trust fund handling - Requirements for client funds
Nevada Administrative Code (NAC) Chapter 645
NRED adopts administrative rules (NAC 645) that implement NRS 645. These rules cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- Agency disclosure procedures
Exam Tip: Both NRS 645 (statutes) and NAC 645 (regulations) govern real estate practice in Nevada. Know the difference between laws passed by the legislature (NRS) and rules adopted by NRED (NAC).
Real Estate Education, Research and Recovery Fund
The Nevada Real Estate Education, Research and Recovery Fund provides compensation to consumers who suffer financial losses due to the misconduct of a licensed real estate professional.
Fund Details
| Requirement | Details |
|---|---|
| Maximum per transaction | $50,000 |
| Maximum per licensee | $100,000 total |
| Filing requirements | Must obtain court judgment first |
| License consequence | License suspended if claim paid |
How the Fund Works
- Consumer is harmed by licensee misconduct
- Consumer obtains court judgment against licensee
- Consumer cannot collect judgment from licensee
- Consumer applies to NRED for payment from Recovery Fund
- NRED pays from fund (if eligible)
- Licensee's license is suspended until fund is repaid with interest
Key Point: The Recovery Fund covers actual damages only - not punitive damages, attorney fees, or court costs. The licensee must repay the fund before reinstatement.
NRED Contact Information
| Resource | Information |
|---|---|
| Website | red.nv.gov |
| Las Vegas Office | 3300 W. Sahara Ave |
| Carson City Office | 1818 E. College Parkway |
| Online System | NRED online licensing portal |
How many members serve on the Nevada Real Estate Commission?
Which department does the Nevada Real Estate Division operate within?