The Nevada Real Estate Commission adopts a new regulation through the proper rulemaking process requiring all licensees to use a specific form for buyer representation agreements. A Nevada broker argues that this regulation exceeds the Commission's authority because the Legislature never specifically mentioned buyer representation forms in NRS Chapter 645. How would a Nevada court most likely evaluate this challenge?
Correct Answer
A) The court would likely uphold the regulation if it is reasonably related to the Commission's statutory mandate to regulate real estate practice and protect consumers
Under Nevada administrative law, courts apply a reasonableness standard when reviewing whether an agency regulation falls within its statutory authority. The Commission is not limited to only those specific actions explicitly listed in NRS Chapter 645; it may adopt regulations that are reasonably necessary to carry out its broad mandate of regulating real estate practice and protecting consumers. A regulation requiring a standard buyer representation form would likely be upheld as reasonably related to that mandate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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