As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 119.015
to 119.112 , inclusive, have the meanings ascribed to them
in those sections.
(Added to NRS by 1971, 1403; A 1973, 1751; 1987, 1075; 1993, 1508)
“Administrator” means the
Real Estate Administrator.
(Added to NRS by 1973, 1759; A 1993, 1508; 2003, 1305 )
“Blanket encumbrance”
means a deed of trust, mortgage, judgment, including an option or
contract to sell or a trust agreement, affecting a subdivision or
affecting more than one lot offered within a subdivision, except that
such term does not include any lien or other encumbrance arising as the
result of the imposition of any tax assessment by any public authority.
(Added to NRS by 1971, 1403)
“Broker” means a real estate broker
licensed under the provisions of chapter 645 of NRS.
(Added to NRS by 1971, 1403)
“Developer” means:
1. The owner of subdivided land who, on his own behalf or through
an agent or subsidiary, offers it for sale.
2. The principal agent of an inactive owner.
(Added to NRS by 1971, 1403; A 1973, 1751)
“Director” means the Director of
the Department of Business and Industry.
(Added to NRS by 1993, 1508)
“Division” means the Real Estate
Division of the Department of Business and Industry.
(Added to NRS by 1971, 1403; A 1993, 1509)
“Hearing officer” means a
member of the staff of the Department of Business and Industry whom the
Administrator has appointed as a hearing officer.
(Added to NRS by 1973, 1759; A 1993, 1509)
“Offer” means every inducement,
solicitation or attempt to bring about a sale.
(Added to NRS by 1971, 1403)
“Person” includes a government, a
governmental agency and a political subdivision of a government.
(Added to NRS by 1971, 1403; A 1985, 508)
“Property report” means a
report, issued by the Administrator pursuant to the provisions of this
chapter, which authorizes a developer to offer to sell or sell an
interest in a subdivision and contains the disclosures required in NRS
119.182 .
(Added to NRS by 1987, 1074)
“Purchaser” means any person who
acquires or attempts to acquire an interest in any portion of a
subdivision.
(Added to NRS by 1971, 1403; A 1973, 1751)
“Registered
representative” is any person who is employed or engaged by a developer
to represent a company for compensation in offering or selling subdivided
lands pursuant to this chapter, but does not include any officer of the
developer or any of the subsidiaries of the developer, or any owner,
partner or associate of the developer who would not be classed as a
dealer and who is listed and approved by the Division.
(Added to NRS by 1971, 1404; A 1973, 1751)
“Sale” means any sale, exchange,
lease, assignment or other transaction designed to convey an interest in
any portion of a subdivision when undertaken for profit.
(Added to NRS by 1971, 1404)
“Statement of record”
means the information submitted to the Administrator by the developer in
its application for a permit to offer to sell or sell an interest in a
subdivision.
(Added to NRS by 1987, 1075)
“Subdivision” means any land
or tract of land in another state, in this state or in a foreign country
from which a sale is attempted, which is divided or proposed to be
divided over any period into 35 or more lots, parcels, units or
interests, including but not limited to undivided interests, which are
offered, known, designated or advertised as a common unit by a common
name or as a part of a common promotional plan of advertising and sale.
(Added to NRS by 1971, 1404; A 1973, 1751)
“Unit” means the smallest salable
portion of a subdivision.
(Added to NRS by 1973, 1759)
ADMINISTRATION
1. The Division may do all things necessary and convenient for
carrying into effect the provisions of this chapter.
2. The Attorney General shall provide opinions for the Division on
all questions of law relating to the construction or interpretation of
this chapter, or arising out of the administration thereof.
3. The Attorney General shall act as the attorney for the Division
in all actions and proceedings brought against the Division under or
pursuant to any of the provisions of this chapter or the regulations
promulgated thereunder.
(Added to NRS by 1973, 1759)
1. The Administrator may adopt regulations which establish
procedures for the Division to conduct business electronically pursuant
to title 59 of NRS with persons who are regulated pursuant to this
chapter and with any other persons with whom the Division conducts
business. The regulations may include, without limitation, the
establishment of fees to pay the costs of conducting business
electronically with the Division.
2. In addition to the process authorized by NRS 719.280 , if the Division is conducting business electronically with a
person and a law requires a signature or record to be notarized,
acknowledged, verified or made under oath, the Division may allow the
person to substitute a declaration that complies with the provisions of
NRS 53.045 to satisfy the legal
requirement.
3. The Division may refuse to conduct business electronically with
a person who has failed to pay money which the person owes to the
Division.
(Added to NRS by 2003, 1304 )
The Division may employ, without regard to the provisions
of NRS 228.110 or of chapter 284 of NRS, legal counsel, investigators and other
professional consultants necessary to the discharge of its duties.
(Added to NRS by 1973, 1759)
All fees and charges received by the
Division shall be deposited in the General Fund in the State Treasury.
Funds for the support of the Division shall be provided by direct
legislative appropriation, and shall be paid out on claims as other
claims against the State are paid.
(Added to NRS by 1973, 1759)
APPLICABILITY AND EXEMPTIONS
Any subdivision which has
been registered under the Interstate Land Sales Full Disclosure Act, 15
U.S.C. §§ 1701 to 1720, inclusive, is subject to all of the requirements
of this chapter, except that its developer may file with the Division a
copy of an effective statement of record filed with the Secretary of
Housing and Urban Development. To the extent that the information
contained in the effective statement of record provides the Division with
information required under this chapter, the effective statement of
record may substitute for information otherwise required under this
chapter.
(Added to NRS by 1983, 414)
The provisions of this chapter do
not apply, unless the method of disposition is adopted to evade those
provisions or the provisions of the Interstate Land Sales Full Disclosure
Act, 15 U.S.C. §§ 1701 to 1720, inclusive, upon notification to the
Division by the person electing to be exempt under this section, to the
making of any offer or disposition of any subdivision or lot, parcel,
unit or interest therein:
1. By a purchaser of any lot, parcel, interest or unit of a
subdivision for his own account in a single or isolated transaction.
2. If:
(a) Each lot, parcel, interest or unit being offered or disposed of
in any subdivision is more than 80 acres in size;
(b) The purchaser or his agent inspects the land before purchasing
it; and
(c) The developer signs an affirmation which states that the
purchaser or his agent has inspected the land before purchasing it, and
the affirmation is made a matter of record in accordance with regulations
of the Division.
Ê For purposes of this subsection, the size of any undivided interest
being offered or disposed of in any subdivision must be computed by
dividing the number of the undivided interests into the area of the
subdivision, exclusive of common or reserved areas, roadways or easements.
3. To any person who is licensed in this state to engage and is
engaged in the business of the construction of residential, commercial or
industrial buildings located in this state for disposition.
4. By any person who owns the land and is licensed in the State of
Nevada to construct residential buildings if the land is located in this
state and is to include a residential building when disposition is
completed.
5. Pursuant to the order of any court of this state.
6. By any government or governmental agency.
(Added to NRS by 1971, 1404; A 1973, 1752; 1975, 1568; 1977, 1513;
1979, 1507; 1981, 14; 1983, 273, 410; 1985, 1406)
Unless the method of disposition is adopted to
evade the provisions of this chapter or of the provisions of the
Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720,
inclusive, if each lot, parcel, interest or unit being offered or
disposed of in any subdivision is at least one-sixteenth of a section as
described by a survey of the government land office, but not less than 35
acres, or 40 acres in area, including roadways and easements, but not
more than 80 acres in size, and the developer:
1. Completes an application in such form and containing such
reasonable information as the Division may require;
2. Pays the fees prescribed in this chapter for a permit for
partial registration;
3. Requires the purchaser or his agent to inspect the land before
purchasing it; and
4. Signs an affirmation which states that the purchaser or his
agent has inspected the land before purchasing it and makes that
affirmation a matter of record pursuant to the regulations of the
Division,
Ê the developer need only comply with the provisions of NRS 119.183
, 119.1835 , 119.184
and 119.230 .
(Added to NRS by 1985, 1406; A 1997, 1964)
1. The provisions of this chapter do not apply, unless the method
of disposition is adopted to evade those provisions or the provisions of
the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720,
inclusive, upon notification to the Division by the person electing to be
exempt under this subsection, to:
(a) Any offer or disposition of any evidence of indebtedness
secured by way of any mortgage or deed of trust of real estate.
(b) Securities or units of interest issued by an investment trust
regulated under the laws of this state, except where the Division finds
that the enforcement of this chapter with respect to such securities or
units of interest is necessary in the public interest and for the
protection of purchasers.
(c) Cemetery lots.
2. Unless the method of disposition is adopted to evade the
provisions of this chapter or the provisions of the Interstate Land Sales
Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, this chapter
does not apply to the sale or lease of real estate located in this state
which is free and clear of all liens, encumbrances and adverse claims if
each purchaser or his agent has personally inspected the lot before
purchase and if the developer executes a written affirmation to that
effect to be made a matter of record in accordance with regulations of
the Division. As used in this subsection, the terms “liens,”
“encumbrances” and “adverse claims” are not intended to refer to purchase
money encumbrances nor property reservations which land developers
commonly convey or dedicate to local bodies or public utilities for the
purpose of bringing public services to the land being developed nor to
taxes and assessments which, under applicable state or local law,
constitute liens on the property before they are due.
3. The Division may, pursuant to regulations adopted by it, exempt
from any of the provisions of this chapter any subdivision, if it finds
that the enforcement of this chapter with respect to subdivisions or
lots, parcels, units or interests in subdivisions is not necessary in the
public interest and for the protection of purchasers. An exemption
granted pursuant to this subsection is effective for a period not to
exceed 1 year as determined by the division. The Division may revoke such
an exemption at any time upon finding that the revocation is necessary
for the protection of purchasers. Upon application for renewal of an
exemption, the Division may renew an exemption for a period not to exceed
1 year as determined by the Division. An application for an exemption
pursuant to this subsection, or for the renewal of such an exemption,
must be accompanied by the applicable fee specified in NRS 119.320 .
(Added to NRS by 1983, 413; A 1985, 1407; 1993, 2293)
1. Any time-share project, person or subdivision which is subject
to the requirements of this chapter for licensing and which complies with
the provisions of chapter 119A of NRS is
not required to comply with the provisions of this chapter.
2. Any campground or developer which is subject to the
requirements of chapter 119B of NRS and
complies with those provisions is not required to comply with the
provisions of this chapter.
(Added to NRS by 1983, 996; A 1985, 1671)
An exemption pursuant to this
chapter is not an exemption from the provisions of NRS 278.010 to 278.630 ,
inclusive.
(Added to NRS by 1983, 414)
REQUIREMENTS AND RESTRICTIONS
1. No subdivision or lot, parcel, unit or interest in any
subdivision may in any way be offered or sold in this state by any person
until:
(a) He has appointed in writing the Secretary of State to be his
agent, upon whom all process, in any action or proceeding against him,
may be served, and in this writing he agrees that any process against him
which is served on the Secretary of State is of the same legal validity
as if served on him and that the appointment continues in force as long
as any liability remains outstanding against him in this state. The
written appointment must be acknowledged before a notary public and must
be filed in the Office of the Secretary of State with a fee of $10 for
accepting and transmitting any legal process served on the Secretary of
State. Copies certified by the Secretary of State are sufficient evidence
of the appointment and agreement.
(b) He has received a license under NRS 119.160 .
2. Service of process authorized by paragraph (a) of subsection 1
must be made by filing with the Secretary of State:
(a) Two copies of the legal process. The copies must include a
specific citation to the provisions of this section. The Secretary of
State may refuse to accept such service if the proper citation is not
included in each copy.
(b) A fee of $10.
Ê The Secretary of State shall forthwith forward one copy of the legal
process to the licensee, by registered or certified mail prepaid to the
licensee.
(Added to NRS by 1971, 1405; A 1983, 412; 1985, 1408; 1997, 475)
Any
person or broker proposing to offer or sell any subdivision or lot,
parcel, unit or interest therein in this state shall first submit to the
Division:
1. The name and address of each person owning or controlling an
interest of 10 percent or more.
2. The name, principal occupation and address of every officer,
director, partner, owner, associate or trustee of the subdivider.
3. The legal description and area of lands.
4. A true statement of the condition of the title to the land,
including all encumbrances thereon.
5. A true statement of the terms and conditions on which it is
intended to dispose of the land and copies of the instruments which will
be delivered to a purchaser to evidence his interest in the subdivision
and of the contracts and other agreements which a purchaser will be
required to agree to or sign.
6. A true statement of the provisions, if any, that have been made
for public utilities in the proposed subdivision, including water,
electricity, gas, telephone and sewerage facilities.
7. A true statement of the use for which the proposed subdivision
will be offered.
8. A true statement of the provisions, if any, limiting the use or
occupancy of the parcels in the subdivision.
9. A true statement of the maximum depth of fill used, or proposed
to be used on each lot, and a true statement on the soil conditions in
the subdivision supported by engineering reports showing the soil has
been, or will be, prepared in accordance with the recommendations of a
licensed civil engineer.
10. A true statement of the amount of indebtedness which is a lien
upon the subdivision or any part thereof, and which was incurred to pay
for the construction of any on-site or off-site improvement, or any
community or recreational facility, and the names and addresses of the
holders of the indebtedness together with an indication of their
relationship, if any, to the owner and subdivider.
11. A true statement or reasonable estimate, if applicable, of the
amount of any indebtedness which has been or is proposed to be incurred
by an existing or proposed special district, entity, taxing area or
assessment district, within the boundaries of which the subdivision, or
any part thereof, is located, and which is to pay for the construction or
installation of any improvement or to furnish community or recreational
facilities to the subdivision, and which amounts are to be obtained by ad
valorem tax or assessment, or by a special assessment or tax upon the
subdivision, or any part thereof.
12. A true statement describing any agricultural activities or
conditions in the area which may adversely affect residents of the
subdivision, including any odors, cultivation and related dust,
agricultural burning, application of pesticides, or irrigation and
drainage.
13. Such other information as the owner, his agent or subdivider
may wish to present.
14. A completed application for a license in such form and
containing such additional information as the Division may require on its
filing forms.
15. The fees prescribed by this chapter.
(Added to NRS by 1971, 1405; A 1973, 1753; 1983, 1679; 1997, 1061)
1. The Division shall, before issuing any license pursuant to the
provisions of this chapter to any person, fully investigate all
information placed before it as is required pursuant to this chapter and,
if in the judgment of the Division it is necessary, inspect the property
which is the subject of the application. All reasonable expenses incurred
by the Division in carrying out the investigation or inspection must be
paid by the applicant and no license may be issued until those expenses
have been fully paid.
2. Payments received by the Division pursuant to this section must
be deposited in the State Treasury for Credit to the Real Estate
Investigative Account, which is hereby created in the State General Fund.
The Administrator shall use this Account to pay the expenses of agents
and employees of the Division in making an investigation pursuant to this
section. The Administrator may advance money for those expenses when
appropriate.
3. Each expenditure from the Investigative Account must be paid as
other claims against the State are paid.
(Added to NRS by 1971, 1406; A 1973, 1754; 1979, 100; 1991, 1752)
1. The Administrator shall make an examination of any subdivision,
and shall, unless there are grounds for denial, issue to the subdivider a
property report authorizing the sale or lease, or the offer for sale or
lease, in this state of the lots or parcels in the subdivision. The
report must contain the data obtained in accordance with NRS 119.140
and which the Administrator determines
are necessary to carry out the purposes of this chapter. The
Administrator may publish the report.
2. The grounds for denial are:
(a) Failure to comply with any of the provisions in this chapter or
the rules and regulations of the Division pertaining thereto.
(b) That the sale or lease would constitute misrepresentation to or
deceit or fraud of the purchasers or lessees.
(c) Inability to deliver title or other interest contracted for.
(d) Inability to demonstrate that adequate financial arrangements
have been made for all off-site improvements included in the offering.
(e) Inability to demonstrate that adequate financial arrangements
have been made for any community, recreational or other facilities
included in the offering.
(f) Failure to make a showing that the parcels can be used for the
purpose for which they are offered.
(g) Failure to provide in the contract or other writing the use or
uses for which the parcels are offered, together with any covenants or
conditions relative thereto.
(h) Agreements or bylaws to provide for management or other
services pertaining to common facilities in the offering, which fail to
comply with the regulations of the Division.
(i) Failure to demonstrate that adequate financial arrangements
have been made for any guaranty or warranty included in the offering.
3. If the Administrator finds that grounds for denial exist, he
shall issue an order so stating to the owner or subdivider no later than
30 days after receipt of the information required to be filed by NRS
119.130 and 119.140 . The Administrator may, alternatively, issue a
temporary permit to be effective for not more than 6 months from the date
of issuance. If the Administrator issues an order of denial, the owner or
developer may appeal the order to the Director who shall, within 5 days
of the receipt of the appeal, determine whether grounds for denial exist.
If the Director finds that grounds for denial exist, he shall confirm the
denial. If the Director confirms the denial, the owner or developer may
appeal to the Real Estate Commission, which shall conduct a hearing and
either confirm the denial or order a license issued within 30 days of the
receipt of the appeal.
4. If it appears to the Administrator that a statement of record,
or any amendment thereto, is on its face incomplete or inaccurate in any
material respect, the Administrator shall so advise the developer within
a reasonable time after the filing of the statement or the amendment, but
before the date the statement or amendment would otherwise be effective.
This notification serves to suspend the effective date of the statement
or the amendment until 30 days after the developer files such additional
information as the Administrator requires. Any developer, upon receipt of
such notice, may request a hearing, and the hearing must be held within
20 days after receipt of the request by the Administrator.
(Added to NRS by 1971, 1406; A 1973, 1755; 1981, 1616; 1987, 1075;
1993, 1509)
1. A developer’s permit must be renewed annually by the developer
by filing an application with and paying the fee for renewal to the
Administrator. The application must be filed and the fee paid not later
than 30 days before the date on which the permit expires. The application
must include any change that has occurred in the information previously
provided to the Administrator or in a property report provided to a
prospective purchaser pursuant to the provisions of NRS 119.182 .
2. The renewal is effective on the 30th day after the filing of
the application unless the Administrator:
(a) Denies the renewal pursuant to NRS 119.325 or for any other reason; or
(b) Approves the renewal on an earlier date.
(Added to NRS by 1987, 1075; A 2001, 528 )
No person, broker, salesman or registered representative shall in any
manner refer to the Division or to any member or employee thereof in
offering or selling in this state any subdivision lot, parcel or unit in
a subdivision nor make any representation whatsoever that such property
has been inspected or approved or otherwise passed upon by the Division
or any official, department or employee of this state.
(Added to NRS by 1971, 1407)
The
developer is responsible for the acts of each broker, salesman,
registered representative and any other person he employs or engages to
represent him which are performed within the scope of such employment or
engagement.
(Added to NRS by 1973, 1759)
No subdivision or lot, parcel or
unit in any subdivision may be sold:
1. Until the Division has approved a written plan or the methods
proposed to be employed for the procurement of prospective purchasers,
the sale to purchasers and the retention of purchasers after sale. The
plan or methods must describe with particularity:
(a) The form and content of advertising to be used;
(b) The nature of the offer of gifts or other free benefits to be
extended;
(c) The nature of promotional meetings involving any person or act
described in this subsection;
(d) The contracts, agreements and other papers to be employed in
the sale of the property; and
(e) Such other reasonable details as the Division requires.
Ê The written plan, or the methods proposed, may be filed as a part of
the application under NRS 119.140 .
2. Except through a broker, and before any offering or
disposition, pursuant to any license granted under this chapter, the name
of the broker must be placed on file with the Division. Only that broker
or his real estate salesman may offer or sell the subdivided property or
any interest therein. Before a salesman offers or sells any property or
interest, the salesman’s name must be placed on file with the Division.
The broker and salesman, if any, shall:
(a) Complete an application in such a form and containing such
reasonable information as the Division requires.
(b) Pay the fees prescribed in this chapter.
Ê A broker and a salesman may represent one or more developers only after
completing an application with respect to each developer in such a form
and containing such reasonable information as the Division requires and
paying the fees prescribed in this chapter.
(Added to NRS by 1971, 1407; A 1973, 1756; 1977, 59; 1983, 274,
412; 1985, 1408; 1987, 786)
1. No person, except a registered representative of the developer
or a broker or salesman who has complied with NRS 119.180 may induce, solicit or attempt to have any
person attend any offer or sale of subdivision property or any interest
therein. A broker is responsible for the inducing and soliciting
activities of his registered representative. The registered
representative and the developer must comply with the same standards of
business ethics as apply to licensed real estate brokers and salesmen. A
registered representative shall not make statements of any kind
concerning prices, interests or values of the subdivision property. His
activities must be limited to inducing and soliciting persons to attend
an offer or sale of subdivision property and handing out information
approved by the Division and he shall strictly conform to the written
plan approved by the Division pursuant to NRS 119.180 .
2. Before engaging in any activities specified in subsection 1,
each registered representative of the developer, under such regulations
as the Division may promulgate, shall:
(a) Complete an application in such form and containing such
reasonable information as the Division may require.
(b) Pay the fees prescribed in this chapter.
Ê Such a person shall be known as a registered representative of the
developer and may not use the term “licensee.” Real estate brokers and
salesmen licensed in the State of Nevada may function as registered
representatives upon the completion of whatever application and the
submission of whatever reasonable information the Division may prescribe,
and upon the payment of the fees prescribed in this chapter.
(Added to NRS by 1983, 276)
1. The information submitted pursuant to NRS 119.140 must be given to and reviewed with each
purchaser by the broker or salesman before the execution of any contract
for the sale of any such property. The broker shall obtain from the
purchaser a signed receipt for a copy of the information and, if a
contract for disposition is entered into, the receipt and a copy of all
contracts and agreements must be kept in the broker’s files within the
State of Nevada for 3 years or 1 year after final payment has been made
on any contract for the sale of property, whichever is longer, and is
subject to such inspection and audit as may be prescribed by regulations
of the Division.
2. The purchaser of any subdivision or any lot, parcel, unit or
interest in any subdivision, not exempted under the provisions of NRS
119.120 or 119.122 may cancel, by written notice, the contract of
sale until midnight of the fifth calendar day following the date of
execution of the contract, and the contract must so provide. The right of
cancellation may not be waived. Any attempt by the developer to obtain
such a waiver results in a contract which is voidable by the purchaser.
3. The notice of cancellation may be delivered personally to the
developer or sent by certified mail or telegram to the business address
of the developer.
4. The developer shall, within 15 days after receipt of the notice
of cancellation, return all payments made by the purchaser.
(Added to NRS by 1983, 277; A 1983, 414; 1987, 301; 2003, 983
)
Each seller of more than one lot created by a
map of division into large parcels must, before the intending purchaser
signs any binding agreement, disclose to him in writing by a separate
document signed by the intending purchaser that the city, county, school
district and special districts are not obligated to furnish any service,
specifically mentioning fire protection and roads, to the land so
divided, and that any public utility may be similarly free of obligation.
(Added to NRS by 1979, 1507)
It is
unlawful for a developer to sell any lot, parcel, unit or interest in a
subdivision without disclosing to the purchaser in writing, before the
purchaser signs any binding agreement, the location in the subdivision,
and on all land contiguous thereto, of all rights-of-way and easements
for transmission lines of public utilities that supply electricity if the
developer knows or reasonably should know the locations of such
rights-of-way and easements.
(Added to NRS by 1997, 1964)
It is unlawful for a developer to sell
any lot, parcel, unit or interest in a subdivision without complying with
the provisions of NRS 116.4106 , if
applicable.
(Added to NRS by 2005, 2622 )
1. A subdivision consisting of land situated in the State of
Nevada or another state must not be advertised or offered for sale within
the State of Nevada until the advertising and offering is approved by the
Division. Each advertisement must contain the processing number assigned
by the Division.
2. Each application for approval of advertising must be
accompanied by:
(a) A filing fee based on a schedule of fees established by the
Division; and
(b) Fees for inspecting the advertising and the property in amounts
established by the Division.
3. The Division shall render a decision upon an application for
approval of an advertising or offering within 30 days from the date the
application is filed.
4. The Division shall adopt regulations to accomplish the purpose
of this section.
(Added to NRS by 1983, 278; A 1993, 2294; 2003, 1305 )
1. Registered representative permits shall be granted only to
persons who:
(a) Bear a good reputation for honesty, truthfulness and fair
dealing;
(b) Are of good moral character;
(c) Are competent to transact the business of a registered
representative in such a manner as to safeguard the interests of the
public; and
(d) Meet such other reasonable requirements as the Division may
promulgate.
2. The Division shall establish rules and regulations to carry out
the provisions of this section.
(Added to NRS by 1973, 1759)
In addition to any
other penalty imposed by this chapter, the Division:
1. Shall suspend or revoke the license or registration of a
broker, real estate salesman or registered representative who violates
any provision of this chapter for such time as in the circumstances it
considers justified.
2. May deny the renewal of the license or registration of a
broker, real estate salesman or registered representative who violates
any provision of this chapter.
(Added to NRS by 1971, 1408; A 1995, 376; 2001, 529 )
No officer or employee of the Division or any association,
firm or corporation with which an officer or employee is associated shall
act as a broker of a subdivision, lot, parcel, unit or interest therein
or offer or dispose of a subdivision, lot, parcel, unit or interest
therein required to be approved pursuant to NRS 119.140 .
(Added to NRS by 1971, 1408)
The owner, publisher, licensee or operator of any
newspaper, magazine, television or radio broadcasting station or network
of stations or the agents or employees of any such owner, publisher,
licensee or operator of such a newspaper, magazine, station or network of
stations shall not be liable under this chapter for any advertising of
any subdivision, lot, parcel or unit in any subdivision carried in any
such newspaper or magazine or by any such television or radio
broadcasting station or network of stations nor shall any of them be
liable under this chapter for the contents of any such advertisement.
(Added to NRS by 1971, 1409)
1. Where any part of the statement of record, when that part
became effective, contained an untrue statement of a material fact or
omitted to state a material fact required to be stated therein, the
Administrator or any person acquiring a lot in the subdivision covered by
the statement of record from the developer or his agent during the period
the statement remained uncorrected (unless it is proved that at the time
of the acquisition he knew of the untruth or omission) may sue the
developer in any court of competent jurisdiction.
2. Any developer or agent, who sells or leases a lot in a
subdivision:
(a) In violation of this chapter; or
(b) By means of a property report which contained an untrue
statement of a material fact or omitted to state a material fact required
to be stated therein,
Ê may be sued by the Administrator or purchaser of the lot.
3. If a suit authorized under subsection 1 or 2 is brought by the
purchaser, he is entitled to recover such damages as represent the
difference between the amount paid for the lot and the reasonable cost of
any improvements thereto, and the lesser of:
(a) The value thereof as of the time the suit was brought;
(b) The price at which the lot has been disposed of in a bona fide
market transaction before suit; or
(c) The price at which the lot has been disposed of after suit in a
bona fide market transaction but before judgment,
Ê or to rescission of the contract of sale and the refund of any
consideration paid by him.
4. If a suit authorized under subsection 1 or 2 is brought by the
Administrator, he may seek a declaration of the court that any person
entitled to sue the developer or his agent under this section is entitled
to the right of rescission and the refund of any consideration paid by
him.
5. Every person who becomes liable to make any payment under this
section may recover contribution as in cases of contract from any person
who, if sued separately, would have been liable to make the same payment.
6. Reasonable attorney’s fees may be awarded to the prevailing
party in any action brought under this section. Any action to rescind a
contract of sale under this section must be brought within 1 year after
the date of purchase or within 1 year after the date of the discovery of
the misrepresentation giving rise to the action for rescission.
7. The provisions of this section are in addition to and not a
substitute for any other right of a person to bring an action in any
court for any act involved in the offering or sale of an interest in a
subdivision or the right of the State to punish any person for any
violation of any law.
(Added to NRS by 1971, 1409; A 1973, 1758; 1987, 1076)
It is unlawful for the owner or subdivider to sell lots or parcels
within a subdivision subject to a blanket encumbrance unless one of the
following conditions is complied with:
1. All sums paid or advanced by purchasers are placed in an escrow
or other depository acceptable to the Division until the fee title
contracted for is delivered to such purchaser by deed together with
complete release from all financial encumbrances; or
2. The fee title to the subdivision is placed in trust under an
agreement or trust acceptable to the Division until a proper release from
each blanket encumbrance, including all taxes, is obtained and title
contracted for is delivered to such purchaser; or
3. Such blanket encumbrance contains provisions evidencing the
subordination or release of the lien of the holder or holders of the
blanket encumbrance to the rights of those persons purchasing from the
subdivider, and further evidencing that the subdivider is able to secure
releases from such blanket encumbrances with respect to the property upon
full payment of the purchase price owed by such person.
(Added to NRS by 1971, 1409)
ENFORCEMENT OF CHAPTER; FEES
The Division shall,
not later than January 1, 1972, and may from time to time thereafter,
promulgate such regulations as it deems necessary for the carrying out
and enforcement of the provisions of this chapter.
(Added to NRS by 1971, 1410)
1. Whenever the Division believes from evidence satisfactory to it
that any person has violated any order, regulation, license, permit,
decision, demand or requirement, or any part or provision thereof, or any
of the provisions of this chapter, it may bring an action in the name of
the Division in the district court of the State of Nevada in the county
wherein such person resides or maintains his principal place of business,
or, if such person resides outside the State of Nevada, in any court with
proper jurisdiction within or outside the State of Nevada, against such
person to enjoin such person from continuing such violation, engaging
therein or doing any act or acts in furtherance thereof.
2. The Administrator in the name of the Division may intervene in
any action involving a subdivision or interest therein, within the
provisions of this chapter, if such intervention is necessary in the
public interest and for the protection of purchasers.
(Added to NRS by 1973, 1760)
1. The Administrator may issue orders directing persons to desist
and refrain from engaging in activities for which they are not licensed
under this chapter or conducting activities in a manner not in compliance
with the provisions of this chapter.
2. A person who has violated any of the provisions of this chapter
shall not engage in any activity for which a license issued pursuant to
this chapter is required after receiving an order in writing from the
Administrator directing him to desist and refrain from so doing.
3. Within 30 days after the receipt of such an order, the person
may file a verified petition with the Administrator for a hearing.
4. The Administrator shall hold a hearing within 30 days after the
petition has been filed. If the Administrator fails to hold a hearing
within 30 days, or does not render a written decision within 45 days
after the final hearing, the cease and desist order is rescinded.
5. If the decision of the Administrator after a hearing is against
the person ordered to cease and desist, he may appeal that decision by
filing, within 30 days after the date on which the decision was issued, a
petition in the district court for the county in which he conducted the
activity. The burden of proof in the appeal is on the appellant. The
court shall consider the decision of the Administrator for which the
appeal is taken and is limited solely to a consideration and
determination of the question of whether there has been an abuse of
discretion on the part of the Administrator in making the decision.
6. In lieu of issuing an order to cease and desist, if the
developer is conducting activities in a manner not in compliance with the
provisions of this chapter, the Administrator may enter into an agreement
with the developer in which the developer agrees to:
(a) Discontinue the activities that are not in compliance with this
chapter;
(b) Pay all costs incurred by the Division in investigating the
developer’s activities and conducting any necessary hearing; and
(c) Return to the purchasers any money or property which he
acquired through such activities.
Ê The terms of such an agreement are confidential unless violated by the
developer.
(Added to NRS by 1973, 1760; A 1985, 1409; 1995, 376)
In any proceeding under this
chapter, the Administrator may appoint hearing officers from the staff of
the Department of Business and Industry who shall act as his agents and
conduct any hearing or investigation which may be conducted by the
Administrator under the provisions of this chapter.
(Added to NRS by 1973, 1760; A 1993, 1510)
1. The Administrator may:
(a) Take testimony and other evidence concerning all matters within
the jurisdiction of the Division under this chapter.
(b) Administer oaths.
(c) Certify to all official acts.
(d) For cause, issue subpoenas for attendance of witnesses and the
production of books and papers.
2. The Administrator shall classify as confidential certain
records and information obtained by the Division when such matters are
trade secrets, including but not limited to lists of prospective
purchasers and lists of purchasers with whom a sale has been consummated.
This power is subject to the limitations and protective measures in NRS
49.325 .
(Added to NRS by 1973, 1761)
1. In any hearing in any part of the State the process issued by
the Administrator extends to all parts of the State and may be served by
any person authorized to serve process of courts of record.
2. The person serving any such process shall receive such
compensation as may be allowed by the Administrator, not to exceed the
fees prescribed by law for similar service.
3. Each witness who appears by order of the Administrator shall
receive for his attendance the same fees and mileage allowed by law to a
witness in civil cases, which amount shall be paid by the party at whose
request the witness is subpoenaed.
(Added to NRS by 1973, 1761)
1. The district court in the county in which any hearing may be
held has the power to compel the attendance of witnesses, the giving of
testimony and the production of books and papers as requested by any
subpoena issued by the Administrator.
2. In case of the refusal of any witness to attend, testify or
produce any papers required by such subpoena, the Administrator may
report to the district court in the county in which the hearing is
pending by petition, setting forth:
(a) That due notice has been given of the time and place of
attendance of the witness or the production of the books and papers;
(b) That the witness has been subpoenaed in the manner prescribed
in this chapter; and
(c) That the witness has failed and refused to attend or produce
the papers required by subpoena before the Administrator in the cause or
proceeding named in the subpoena or has refused to answer questions
propounded to him in the course of such hearing, and asking an order of
the court compelling the witness to attend and testify or produce the
books or papers before the Administrator.
3. The court, upon petition of the Administrator, may enter an
order directing the witness to appear before the court at a time and
place to be fixed by the court in such order, the time to be not more
than 10 days from the date of the order, and then and there show cause
why he has not attended, testified or produced the books or papers before
the Administrator. A certified copy of the order shall be served upon the
witness. If it appears to the court that the subpoena was regularly
issued by the Administrator, the court may thereupon enter an order that
the witness appear before the Administrator at the time and place fixed
in the order and testify or produce the required books or papers, and
upon failure to obey the order the witness shall be dealt with as for
contempt of court.
(Added to NRS by 1973, 1761)
1. The Administrator may, in any hearing before him, cause the
depositions of witnesses to be taken in the manner prescribed by the
Nevada Rules of Civil Procedure for like depositions in civil actions in
the district court of this state, and to that end may compel the
attendance of witnesses and the production of books and papers.
2. The clerk of the district court in the county in which any
hearing is held by the Administrator shall, upon the application of the
Administrator, issue commissions or letters rogatory to other states for
the taking of evidence therein for use in any proceedings before the
Administrator.
3. Any party to any hearing before the Administrator shall have
the right to the attendance of witnesses in his behalf at such hearing or
upon deposition, as set forth in this section, upon making request
therefor to the Administrator and designating the name and address of the
person or persons sought to be subpoenaed.
(Added to NRS by 1973, 1762)
1. Subject to the provisions of this chapter, the Division shall
collect the following fees at such times and upon such conditions as it
may provide by regulation:
For each annual registered representative’s license to represent a
developer $85
For each transfer of a registered representative’s license to represent a
developer 30
For each penalty for a late renewal of a registered representative’s
license.... 40
For each application for a developer’s request for an exemption from any
provision of this chapter 275
For each application for renewal of an exemption from any provision of
this chapter 275
For each developer’s permit per
subdivision...................................................... 500
For each developer’s temporary permit for each
subdivision........................... 275
For each renewal of a developer’s
permit............................................................. 500
For each developer’s partial registration pursuant to NRS 119.121 ................. 275
For each amendment to a developer’s
permit...................................................... 150
The $500 fee for a developer’s permit per subdivision does not apply to
any subdivision having 34 or fewer lots, parcels, interests or units.
2. At the time of the original filing, each developer shall pay an
additional $5 for each lot, parcel, interest or unit in any one
subdivision in excess of 50, but not exceeding 250 such lots, parcels,
interests or units; $4 for 251 through 500 lots, parcels, interests or
units in any one subdivision; $3 for 501 through 750 lots, parcels,
interests or units in any one subdivision; and $2.50 for all lots,
parcels, interests or units in excess of 750 in any one subdivision. The
developer may designate lots, parcels, interests or units it intends to
offer for sale or lease in this state out of the subdivision, and the fee
per lot, parcel, interest or unit is only applicable to those lots,
parcels, interests or units. The units must be designated in groupings of
no less than 5 contiguous units in each group, except that the Division
may accept fewer upon request of the developer. If the developer
determines to offer additional lots, parcels, interests or units, it
shall so certify to the Division and pay the additional fee therefor.
3. With the exception of the fees for a registered
representative’s license or transfer, the fees enumerated in this section
must be reduced by the Administrator at such times as, in his judgment,
he considers a reduction equitable in relation to the necessary costs of
carrying out the administration and enforcement of the provisions of this
chapter.
(Added to NRS by 1973, 1762; A 1981, 1618; 1985, 1410; 1987, 1077;
1993, 2294; 2003, 1305 )
In addition to any other remedy or penalty, the
Administrator may:
1. Refuse to issue a license, permit or registration to a person
who has failed to pay money which the person owes to the Division.
2. Refuse to renew, or suspend or revoke, the license, permit or
registration of a person who has failed to pay money which the person
owes to the Division.
(Added to NRS by 2003, 1304 )
The Administrator may impose
a fine or suspend, revoke, deny the renewal of or place conditions upon
the property report, permit, partial registration, exemption or license
issued pursuant to this chapter of a developer at any time if:
1. The developer obtained the property report, permit, partial
registration, exemption or license by false or fraudulent representation;
or
2. The developer violates any of the terms or conditions of the
property report, permit, partial registration, exemption or license, the
provisions of this chapter or the regulations adopted pursuant thereto.
Ê The Administrator shall not impose a fine of more than $5,000 pursuant
to this section.
(Added to NRS by 1995, 376; A 2001, 529 )
The
expiration or revocation of a property report, permit, partial
registration, exemption, license or registration by operation of law or
by order or decision of the Administrator, a hearing officer or a court
of competent jurisdiction, or the voluntary surrender of a property
report, permit, partial registration, exemption, license or registration
by a developer, broker, real estate salesman or registered representative
does not:
1. Prohibit the Administrator or Division from initiating or
continuing an investigation of, or action or disciplinary proceeding
against, the developer, broker, real estate salesman or registered
representative as authorized pursuant to the provisions of this chapter
or the regulations adopted pursuant thereto; or
2. Prevent the imposition or collection of any fine or penalty
authorized pursuant to the provisions of this chapter or the regulations
adopted pursuant thereto against the developer, broker, real estate
salesman or registered representative.
(Added to NRS by 2001, 528 )
1. In addition to any other remedy or penalty, the Administrator
may impose an administrative fine against any person who knowingly:
(a) Engages or offers to engage in any activity for which a
license, permit or registration or any type of authorization is required
pursuant to this chapter, or any regulation adopted pursuant thereto, if
the person does not hold the required license, permit or registration or
has not been given the required authorization; or
(b) Assists or offers to assist another person to commit a
violation described in paragraph (a).
2. If the Administrator imposes an administrative fine against a
person pursuant to this section, the amount of the administrative fine
may not exceed the amount of any gain or economic benefit that the person
derived from the violation or $5,000, whichever amount is greater.
3. In determining the appropriate amount of the administrative
fine, the Administrator shall consider:
(a) The severity of the violation and the degree of any harm that
the violation caused to other persons;
(b) The nature and amount of any gain or economic benefit that the
person derived from the violation;
(c) The person’s history or record of other violations; and
(d) Any other facts or circumstances that the Administrator deems
to be relevant.
4. Before the Administrator may impose the administrative fine,
the Administrator must provide the person with notice and an opportunity
to be heard.
5. The person is entitled to judicial review of the decision of
the Administrator in the manner provided by chapter 233B of NRS.
6. The provisions of this section do not apply to a person who
engages or offers to engage in activities within the purview of this
chapter if:
(a) A specific statute exempts the person from complying with the
provisions of this chapter with regard to those activities; and
(b) The person is acting in accordance with the exemption while
engaging or offering to engage in those activities.
(Added to NRS by 2003, 1304 )
1. Except as otherwise provided in subsection 2, a person
violating a provision of this chapter, if a natural person, is guilty of
a gross misdemeanor, and if a copartnership, association or corporation,
shall be punished by a fine of not more than $10,000 for each offense.
2. A person who:
(a) Sells or attempts to sell in this state any subdivision or any
lot, parcel, unit or interest in any subdivision by means of intentional
misrepresentation, deceit or fraud; or
(b) Obtains or attempts to obtain a license under this chapter by
means of intentional misrepresentation, deceit or fraud,
Ê is guilty of a category C felony and shall be punished as provided in
NRS 193.130 . In addition to any other
penalty, the court shall order the person to pay restitution.
3. An officer or agent of a corporation, or member or agent of a
copartnership or association, who personally participates in or is an
accessory to any violation of this chapter by the copartnership,
association or corporation, is subject to the penalties prescribed for
natural persons in this section.
4. This section does not release any person, corporation,
association or copartnership from civil liability or criminal prosecution
under any other law of this state.
5. Upon conviction the court may revoke the license of the person
so convicted, in addition to imposing the other penalties provided in
this section.
(Added to NRS by 1973, 1763; A 1979, 1459; 1995, 1243)
The
provisions of this chapter are in addition to and not a substitute for
NRS 278.010 to 278.630 , inclusive.
(Added to NRS by 1977, 1515)
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