EstatePass
Practice Of Real EstateLicense_lawHARD

Linda holds a Nevada broker-salesperson license affiliated with Broker Chen. Without informing Broker Chen, Linda begins independently listing and selling properties under her own name, collecting commissions directly from clients, and advertising herself as an independent broker. Under Nevada law, which of the following best describes the consequences Linda may face?

Correct Answer

A) Linda may face disciplinary action by NRED, including possible license suspension or revocation, because broker-salespersons may not operate independently or collect commissions except through their supervising broker

Under NRS 645.230, NRS 645.310, and NRS 645.630, a broker-salesperson is prohibited from operating independently, advertising as an independent broker, or collecting commissions directly from clients outside of the supervising broker's structure. Linda's conduct constitutes multiple violations of NRS Chapter 645, including operating without proper supervision, unauthorized independent practice, and potentially misleading advertising. NRED has authority to impose disciplinary sanctions including suspension, revocation, and fines under NRS 645.630.

Answer Options
A
Linda may face disciplinary action by NRED, including possible license suspension or revocation, because broker-salespersons may not operate independently or collect commissions except through their supervising broker
B
Linda's actions are permissible because a broker-salesperson holds broker-level qualifications and therefore has the same practice rights as a full broker
C
Linda may face a civil fine only, because independently listing properties is a minor violation that does not warrant license suspension for a broker-salesperson
D
Linda's actions are permissible as long as she discloses to clients that she is a broker-salesperson and not a full broker

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

broker_salespersonunauthorized_practicedisciplinary_actionnredsupervision_requirement

Related Concepts

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.

A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing