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 misconduct occurred. Potential penalties include:

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

If you are facing administrative proceedings by the Commission, you are advised to hire private counsel to conduct their own investigation and represent you at the hearing.

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

• 1. How does the Nevada Real Estate Commission work?
• 2. Can I apply for a real estate license with a criminal record?
• 3. What triggers disciplinary action?
• 4. What happens if there is a complaint against me?
• 5. Can I go to jail for brokering without a license?
• 6. Other occupational licenses
• Additional resources

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.

The Commission is comprised of five people appointed by the Nevada Governor.

These five members of the Commission must have been practicing real estate brokers or salespeople:

• 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?

You may apply for a Nevada real estate license if you have a criminal record, but the Real Estate Commission may disqualify you for having been convicted in any U.S. state for either:

1. forgery,
2. embezzlement,
3. obtaining money under false pretenses,
4. larceny,
5. extortion,
6. conspiracy to defraud,
7. engaging in a real property business without a license,
8. possessing for the purpose of sale any controlled substance, or
9. any crime involving moral turpitude (including crimes of violence, fraud, or theft).

If you have been convicted of any of these crimes, the Commission must deny you a license if less than three (3) years have passed since the case closed.²

Nevada’s real estate license application does not mention anything about sealed criminal records, which suggests that you do not have to reveal past criminal convictions that have been sealed or expunged.

However, you 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?

Ten of the many crimes or types of misconduct that the Real Estate Commission will discipline you 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 that comes into your 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 your own or converting the money of others to your own use
5. Illegally and willfully using the name of a real property organization that you do not belong to
6. Getting convicted of a crime involving moral turpitude, deceit, or misrepresentation, or of a felony related to your 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 your behalf
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

You can also be disciplined for not informing the Board if you get convicted of any of the following crimes:

• Any felony relating to your practice; 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 you a formal complaint listing the allegations. You are required to answer the complaint within 30 days.

If you give no answer, the Commission can enter a default judgment, which may result in a

• license suspension,
• license revocation, or
• other penalties.

4.1. Administrative Hearing

The Commission usually schedules a hearing within 90 days of issuing the complaint. Note that you get to keep your license pending the results of the hearing (in most cases).

You must receive at least 30 days’ notice of when/where the hearing will be. The Commission must also give you all the

• communications,
• reports,
• affidavits, or
• depositions

relevant to the complaint.

The hearing is essentially an administrative version of a trial. You may have an attorney present to represent you 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:

• administrative fines of up to $10,000,
• limitations on the scope of your 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 you, you may pursue a judicial review (similar to an appeal) of the decision. Note that if you have your license revoked, you 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, 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, carrying a penalty of:

• 1 – 4 years in Nevada State Prison, and
• up to $5,000 in fines (at the judge’s discretion)

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

6. Other occupational licenses

Contractors

Licensed builders risk a license revocation or suspension for doing substandard work or engaging in unprofessional conduct or crimes. Learn more in our article on disciplinary proceedings and license revocations for contractors.

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 nursing license revocations and suspensions.

Doctors

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

Dentists

If you are a dentist or hygienist, committing crimes of moral turpitude or unprofessional conduct can cost you your license. See more in our article on license revocations or suspensions for dentists.

Attorneys

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

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 accountants.

Social Workers

Social workers risk license revocation as a penalty for getting a criminal conviction or violating professional guidelines. Go to our article about suspending or revoking social workers’ licenses in disciplinary hearings.

Teachers

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

Additional resources

For more information, refer to the following:

• Nevada Real Estate Division – The government agency that oversees and regulates the real estate industry in the state of Nevada.
• Nevada Realtors – A professional trade organization that provides services and advocates for the interests of real estate professionals and private property rights in Nevada.
• Nevada Association of Real Estate Brokers – A nonprofit trade association that promotes the interests of and provides services for real estate brokers in the state of Nevada.
• Las Vegas Realtors – A professional trade organization that provides services like networking, education, advocacy and resources to a membership of over 14,000 real estate professionals in southern Nevada.
• Commercial Alliance of Las Vegas – A professional commercial real estate trade association supporting professionals and businesses in the Las Vegas area through education, networking and business development opportunities.