1.1 Nebraska Real Estate Commission (NREC)
Key Takeaways
- NREC regulates real estate licensees under the Nebraska Real Estate License Act (Neb. Rev. Stat. ch. 81, art. 8) and its rules in Title 299 NAC
- The Commission has seven members: the Secretary of State (chairperson) plus six Governor-appointed members serving six-year staggered terms
- Three broker members represent the three congressional districts; the rest are a broker-at-large, a salesperson member, and a public member
- NREC may investigate complaints, audit trust accounts at any time, issue subpoenas, and discipline through reprimand, fine, probation, suspension, or revocation
- Director Joe Gehrki has led the Commission since January 1, 2025; the office is in Lincoln and meets roughly monthly
The Nebraska Real Estate Commission (NREC) is the state agency responsible for licensing, regulating, and disciplining real estate professionals in Nebraska. It operates under the Nebraska Real Estate License Act (the licensing statutes in Chapter 81, Article 8 of the Nebraska Revised Statutes) and its administrative rules, codified at Title 299 of the Nebraska Administrative Code (NAC).
Real Estate SalespersonFree exam prep with practice questions & AI tutor
Why the Commission Exists
NREC's mandate is consumer protection. By controlling who may hold a license, what they must learn, and how they must handle client money, the Commission protects the public in transactions that are often the largest of a consumer's life. Every disciplinary power below flows from that purpose - the Commission is not punishing licensees for their own sake but enforcing standards that keep buyers, sellers, landlords, and tenants safe.
Commission Composition
NREC consists of seven members. The Secretary of State serves as chairperson by virtue of office; the Governor appoints the other six.
| Member | Number | Key qualification |
|---|---|---|
| Secretary of State (chairperson) | 1 | Holds office; chairs the Commission |
| Broker members - congressional districts | 3 | Active broker, one from each of Nebraska's congressional districts |
| Broker member at large | 1 | Active broker, statewide |
| Salesperson member at large | 1 | Active licensed salesperson |
| Public member at large | 1 | Not licensed in real estate; represents consumers |
Governor-appointed members serve six-year staggered terms, so the entire board never turns over at once. The staggering preserves institutional memory - at any meeting, experienced members balance newer appointees. The public member is a deliberate check: it ensures consumer interests, not just industry interests, are represented in licensing and disciplinary decisions.
Exam trap: A common distractor is "the Governor chairs the Commission." He does not - he appoints six members, but the Secretary of State is the chairperson.
The Nebraska Real Estate License Act
The License Act is the primary statute governing real estate licensing. For the exam, focus on what it controls:
- Who must be licensed - the activities (listing, selling, leasing, negotiating, managing for others, for compensation) that trigger a license requirement, and the definitions of broker and salesperson.
- Exemptions - owners selling their own property, attorneys acting within their practice, and certain salaried employees managing for an owner are generally exempt.
- Prohibited conduct - the long list of acts (in Neb. Rev. Stat. 81-885.24) that justify discipline.
- Trust-fund handling - the duty to deposit and account for client money.
- Disciplinary grounds and procedure - what NREC may sanction and the due-process steps it must follow.
NREC Administrative Rules (Title 299 NAC)
The Act delegates rulemaking to the Commission. Title 299 NAC fleshes out the statute with operational detail:
| Subject | What the rules cover |
|---|---|
| Applications | How to apply, document, and qualify for a license |
| Education | Course/school approval, pre-license, post-license, and CE |
| Advertising | Truthfulness, licensee/brokerage identification, team-name rules |
| Trust accounts | Deposit timing, records, and the Trust Account Manual |
| Agency | Disclosure procedures and the written agency policy |
Statute vs. rule: The exam may ask whether a duty comes from "the Act" or "the rules." Broad licensing requirements and disciplinary grounds are in the statute; procedural detail (forms, timelines, record formats) is in Title 299 rules. When in doubt, operational detail = rules.
NREC Powers
Investigative powers
| Power | Description |
|---|---|
| Complaint investigation | Investigate complaints from consumers or other licensees |
| Trust account audits | Examine a broker's trust account at any time, without prior notice |
| Subpoena power | Compel testimony and document production for hearings |
| Evidence gathering | Collect records, conduct interviews |
Disciplinary powers
| Sanction | Description |
|---|---|
| Reprimand | Formal written warning |
| Civil fine | Monetary penalty |
| Probation | Conditional license with restrictions |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
Registrations
Beyond individual licenses, NREC registers certain offerings sold to the public: subdivisions, timeshares, membership campgrounds, and retirement communities. These registration programs exist to prevent fraud in pre-sale and out-of-state land marketing.
Key people and place: The Commission office is in Lincoln; Joe Gehrki has been Director since January 1, 2025; the board meets approximately monthly.
Director vs. Commission: Who Does What
Candidates sometimes confuse the Director with the Commission. The seven-member Commission is the policy-making and adjudicating body: it adopts rules, sets education standards, and votes on disciplinary outcomes after hearings. The Director (Joe Gehrki, since January 1, 2025) is the appointed administrator who runs the agency day to day - managing staff, overseeing investigations and audits, and implementing the Commission's decisions. The Director does not single-handedly revoke licenses; that authority rests with the Commission acting through its hearing process.
How NREC Fits the Broader Regulatory Picture
NREC is one of several bodies whose rules touch a Nebraska transaction, and the exam expects you to keep them straight:
| Body | Role |
|---|---|
| NREC | Licenses and disciplines real estate agents; enforces the License Act and Title 299 |
| Nebraska Secretary of State | Chairs NREC; also registers broker trade names |
| Nebraska Department of Banking and Finance | Regulates lenders and the institutions that hold trust accounts |
| U.S. HUD / DOJ | Enforce federal fair housing (the Fair Housing Act) |
| EPA | Administers the federal lead-based-paint disclosure program |
NREC's jurisdiction is licensees and their conduct - it does not adjudicate private contract disputes (those go to civil court) and it does not set lending rules. When an exam question asks "who handles this," match the subject to the body: agent misconduct = NREC; loan terms = a lender/banking regulator; discrimination = fair-housing enforcement.
Renewal-cycle preview: NREC also administers the biennial license cycle - a two-year term expiring in December with a December 1 renewal deadline - covered fully in Section 1.3.
How many members serve on the Nebraska Real Estate Commission?
Who serves as the chairperson of the Nebraska Real Estate Commission?
Which power may NREC exercise at any time, without prior notice to the broker?