Agent Rivera, a licensed Nevada salesperson, is approached by her neighbor who wants to sell his home. The neighbor offers Rivera a $5,000 bonus directly if she brings a buyer quickly, in addition to the standard commission that will go through her broker. Rivera accepts the $5,000 in cash from the neighbor without telling her broker. Rivera's broker later discovers the arrangement. Under Nevada law, which of the following most accurately describes the legal consequences of Rivera's actions?
Correct Answer
A) Rivera has violated NRS 645.280 by accepting compensation directly from a principal, and her broker may file a complaint with NRED, potentially resulting in disciplinary action against Rivera's license.
Under NRS 645.280, a salesperson may not accept compensation for real estate activities from any person other than their employing broker, regardless of how the payment is characterized. The $5,000 bonus paid by the seller in connection with Rivera's real estate services is compensation that must flow through the broker. Accepting it directly — and concealing it from the broker — constitutes a violation of NRS 645.280. This is a disciplinary matter within NRED's jurisdiction, and Rivera faces potential suspension or revocation of her license. The broker also has a civil claim against Rivera for breach of fiduciary duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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