Broker Chen is the principal broker of Nevada Homes LLC, a licensed Nevada real estate brokerage. Broker Chen dies unexpectedly. Salesperson Park, who is affiliated with Nevada Homes LLC, wants to continue operating the brokerage and serving existing clients. Under Nevada law, what is the most accurate description of what must happen to the brokerage license and operations after the principal broker's death?
Correct Answer
D) NRED may allow the brokerage to continue operating temporarily under a qualifying broker designated by the estate or surviving owners, but a new principal broker must be licensed and designated promptly.
Under NRS 645.310 and NRED procedures, when a principal broker dies, the brokerage does not automatically cease operations nor does a license automatically transfer to another person. Nevada law and NRED practice allow for a temporary continuation of operations while the estate or surviving owners work to designate and license a new qualifying broker. NRED has provisions to allow limited continued operation during the transition period to protect clients and ongoing transactions, but a properly licensed broker must be designated as principal broker as soon as practicable. The brokerage cannot operate indefinitely without a licensed principal broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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