SALE OF SUBDIVIDED LAND: LICENSING AND REGULATION

Nev. Rev. Stat. 119

in effect

Nev. Rev. Stat. § 119.010 Definitions.

As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 119.015 to 119.112, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 119.015 Administrator defined.

Administrator means the Real Estate Administrator.

Nev. Rev. Stat. § 119.020 Blanket encumbrance defined.

Blanket encumbrance means a deed of trust, mortgage, judgment, including an option or contract to sell or a trust agreement, affecting a subdivision or affecting more than one lot offered within a subdivision, except that such term does not include any lien or other encumbrance arising as the result of the imposition of any tax assessment by any public authority.

Nev. Rev. Stat. § 119.030 Broker defined.

Broker means a real estate broker licensed under the provisions of chapter 645 of NRS.

Nev. Rev. Stat. § 119.040 Developer defined.

Developer means: 1. The owner of subdivided land who, on his or her own behalf or through an agent or subsidiary, offers it for sale. 2. The principal agent of an inactive owner.

Nev. Rev. Stat. § 119.045 Director defined.

Director means the Director of the Department of Business and Industry.

Nev. Rev. Stat. § 119.050 Division defined.

Division means the Real Estate Division of the Department of Business and Industry.

Nev. Rev. Stat. § 119.055 Hearing officer defined.

Hearing officer means a member of the staff of the Department of Business and Industry whom the Administrator has appointed as a hearing officer.

Nev. Rev. Stat. § 119.060 Offer defined.

Offer means every inducement, solicitation or attempt to bring about a sale.

Nev. Rev. Stat. § 119.070 Person defined.

Person includes a government, a governmental agency and a political subdivision of a government.

Nev. Rev. Stat. § 119.075 Property report defined.

Property report means a report, issued by the Administrator pursuant to the provisions of this chapter, which authorizes a developer to offer to sell or sell an interest in a subdivision and contains the disclosures required in NRS 119.182.

Nev. Rev. Stat. § 119.080 Purchaser defined.

Purchaser means any person who acquires or attempts to acquire an interest in any portion of a subdivision.

Nev. Rev. Stat. § 119.090 Registered representative defined.

Registered representative is any person who is employed or engaged by a developer to represent a company for compensation in offering or selling subdivided lands pursuant to this chapter, but does not include any officer of the developer or any of the subsidiaries of the developer, or any owner, partner or associate of the developer who would not be classed as a dealer and who is listed and approved by the Division.

Nev. Rev. Stat. § 119.100 Sale defined.

Sale means any sale, exchange, lease, assignment or other transaction designed to convey an interest in any portion of a subdivision when undertaken for profit.

Nev. Rev. Stat. § 119.105 Statement of record defined.

Statement of record means the information submitted to the Administrator by the developer in its application for a permit to offer to sell or sell an interest in a subdivision.

Nev. Rev. Stat. § 119.110 Subdivision defined.

Subdivision means any land or tract of land in another state, in this state or in a foreign country from which a sale is attempted, which is divided or proposed to be divided over any period into 35 or more lots, parcels, units or interests, including but not limited to undivided interests, which are offered, known, designated or advertised as a common unit by a common name or as a part of a common promotional plan of advertising and sale.

Nev. Rev. Stat. § 119.112 Unit defined.

Unit means the smallest salable portion of a subdivision.

Nev. Rev. Stat. § 119.114 Administration by Real Estate Division; duties of Attorney General.

1. The Division may do all things necessary and convenient for carrying into effect the provisions of this chapter. 2. The Attorney General shall provide opinions for the Division on all questions of law relating to the construction or interpretation of this chapter, or arising out of the administration thereof. 3. The Attorney General shall act as the attorney for the Division in all actions and proceedings brought against the Division under or pursuant to any of the provisions of this chapter or the regulations promulgated thereunder.

Nev. Rev. Stat. § 119.115 Authority for Real Estate Division to conduct business electronically; regulations; fees; use of unsworn declaration; exclusions.

1. The Administrator may adopt regulations which establish procedures for the Division to conduct business electronically pursuant to title 59 of NRS with persons who are regulated pursuant to this chapter and with any other persons with whom the Division conducts business. The regulations may include, without limitation, the establishment of fees to pay the costs of conducting business electronically with the Division. 2. In addition to the process authorized by NRS 719.280 , if the Division is conducting business electronically with a person and a law requires a signature or record to be notarized, acknowledged, verified or made under oath, the Division may allow the person to substitute a declaration that complies with the provisions of NRS 53.045 or NRS 53.250 to 53.390 , inclusive, to satisfy the legal requirement. 3. The Division may refuse to conduct business electronically with a person who has failed to pay money which the person owes to the Division.

Nev. Rev. Stat. § 119.116 Employment of counsel, investigators and professional consultants.

The Division may employ, without regard to the provisions of NRS 228.110 or of chapter 284 of NRS, legal counsel, investigators and other professional consultants necessary to the discharge of its duties.

Nev. Rev. Stat. § 119.118 Support of Division by legislative appropriation; disposition of fees and charges.

Except as otherwise provided in paragraph (b) of subsection 1 of NRS 119.320, all fees and charges received by the Division shall be deposited in the General Fund in the State Treasury. Funds for the support of the Division shall be provided by direct legislative appropriation, and shall be paid out on claims as other claims against the State are paid.

Nev. Rev. Stat. § 119.119 Applicability to subdivision registered under Interstate Land Sales Full Disclosure Act.

Any subdivision which has been registered under the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, is subject to all of the requirements of this chapter, except that its developer may file with the Division a copy of an effective statement of record filed with the Secretary of Housing and Urban Development. To the extent that the information contained in the effective statement of record provides the Division with information required under this chapter, the effective statement of record may substitute for information otherwise required under this chapter.

Nev. Rev. Stat. § 119.120 Exemptions: Single purchase; large lots; contractors; court orders; governmental agencies.

The provisions of this chapter do not apply, unless the method of disposition is adopted to evade those provisions or the provisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, upon notification to the Division by the person electing to be exempt under this section, to the making of any offer or disposition of any subdivision or lot, parcel, unit or interest therein: 1. By a purchaser of any lot, parcel, interest or unit of a subdivision for his or her own account in a single or isolated transaction. 2. If: (a) Each lot, parcel, interest or unit being offered or disposed of in any subdivision is more than 80 acres in size; (b) The purchaser or his or her agent inspects the land before purchasing it; and (c) The developer signs an affirmation which states that the purchaser or his or her agent has inspected the land before purchasing it, and the affirmation is made a matter of record in accordance with regulations of the Division. Ê For purposes of this subsection, the size of any undivided interest being offered or disposed of in any subdivision must be computed by dividing the number of the undivided interests into the area of the subdivision, exclusive of common or reserved areas, roadways or easements. 3. To any person who is licensed in this state to engage and is engaged in the business of the construction of residential, commercial or industrial buildings located in this state for disposition. 4. By any person who owns the land and is licensed in the State of Nevada to construct residential buildings if the land is located in this state and is to include a residential building when disposition is completed. 5. Pursuant to the order of any court of this state. 6. By any government or governmental agency.

Nev. Rev. Stat. § 119.121 Exemptions: Single purchase; small lots; requirements for partial registration.

Unless the method of disposition is adopted to evade the provisions of this chapter or of the provisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, if each lot, parcel, interest or unit being offered or disposed of in any subdivision is at least one-sixteenth of a section as described by a survey of the government land office, but not less than 35 acres, or 40 acres in area, including roadways and easements, but not more than 80 acres in size, and the developer: 1. Completes an application in such form and containing such reasonable information as the Division may require; 2. Pays the fees prescribed in this chapter for a permit for partial registration; 3. Requires the purchaser or his or her agent to inspect the land before purchasing it; and 4. Signs an affirmation which states that the purchaser or his or her agent has inspected the land before purchasing it and makes that affirmation a matter of record pursuant to the regulations of the Division, Ê the developer need only comply with the provisions of NRS 119.183 , 119.1835 , 119.184 and 119.230 .

Nev. Rev. Stat. § 119.122 Exemptions: Evidence of secured indebtedness; investment trusts; cemetery lots; property without liens, encumbrances or adverse claims; regulations of Division; revocation.

1. The provisions of this chapter do not apply, unless the method of disposition is adopted to evade those provisions or the provisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, upon notification to the Division by the person electing to be exempt under this subsection, to: (a) Any offer or disposition of any evidence of indebtedness secured by way of any mortgage or deed of trust of real estate. (b) Securities or units of interest issued by an investment trust regulated under the laws of this state, except where the Division finds that the enforcement of this chapter with respect to such securities or units of interest is necessary in the public interest and for the protection of purchasers. (c) Cemetery lots. 2. Unless the method of disposition is adopted to evade the provisions of this chapter or the provisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, this chapter does not apply to the sale or lease of real estate located in this state which is free and clear of all liens, encumbrances and adverse claims if each purchaser or his or her agent has personally inspected the lot before purchase and if the developer executes a written affirmation to that effect to be made a matter of record in accordance with regulations of the Division. As used in this subsection, the terms liens, encumbrances and adverse claims are not intended to refer to purchase money encumbrances nor property reservations which land developers commonly convey or dedicate to local bodies or public utilities for the purpose of bringing public services to the land being developed nor to taxes and assessments which, under applicable state or local law, constitute liens on the property before they are due. 3. The Division may, pursuant to regulations adopted by it, exempt from any of the provisions of this chapter any subdivision, if it finds that the enforcement of this chapter with respect to subdivisions or lots, parcels, units or interests in subdivisions is not necessary in the public interest and for the protection of purchasers. An exemption granted pursuant to this subsection is effective for a period not to exceed 1 year as determined by the division. The Division may revoke such an exemption at any time upon finding that the revocation is necessary for the protection of purchasers. Upon application for renewal of an exemption, the Division may renew an exemption for a period not to exceed 1 year as determined by the Division. An application for an exemption pursuant to this subsection, or for the renewal of such an exemption, must be accompanied by the applicable fee specified in NRS 119.320 .

Nev. Rev. Stat. § 119.125 Exemptions: Time shares; memberships in campgrounds.

1. Any time-share project, person or subdivision which is subject to the requirements of this chapter for licensing and which complies with the provisions of chapter 119A of NRS is not required to comply with the provisions of this chapter. 2. Any campground or developer which is subject to the requirements of chapter 119B of NRS and complies with those provisions is not required to comply with the provisions of this chapter.

Nev. Rev. Stat. § 119.128 Exemptions: Limitation.

An exemption pursuant to this chapter is not an exemption from the provisions of NRS 278.010 to 278.630, inclusive.

Nev. Rev. Stat. § 119.130 License: Requirement; appointment of Secretary of State as agent for service of process; procedure for service of process.

1. No subdivision or lot, parcel, unit or interest in any subdivision may in any way be offered or sold in this state by any person until: (a) The person has appointed in writing the Secretary of State to be his or her agent, upon whom all process, in any action or proceeding against the person, may be served, and in this writing the person agrees that any process against him or her which is served on the Secretary of State is of the same legal validity as if served on the person and that the appointment continues in force as long as any liability remains outstanding against the person in this state. The written appointment must be acknowledged before a notary public and must be filed in the Office of the Secretary of State with a fee of $10 for accepting and transmitting any legal process served on the Secretary of State. Copies certified by the Secretary of State are sufficient evidence of the appointment and agreement. (b) The person has received a license under NRS 119.160 . 2. Service of process authorized by paragraph (a) of subsection 1 must be made by filing with the Secretary of State: (a) Two copies of the legal process. The copies must include a specific citation to the provisions of this section. The Secretary of State may refuse to accept such service if the proper citation is not included in each copy. (b) A fee of $10. Ê The Secretary of State shall forthwith forward one copy of the legal process to the licensee, by registered or certified mail prepaid to the licensee.

Nev. Rev. Stat. § 119.140 License: Required information; application; fee.

Any person or broker proposing to offer or sell any subdivision or lot, parcel, unit or interest therein in this state shall first submit to the Division: 1. The name and address of each person owning or controlling an interest of 10 percent or more. 2. The name, principal occupation and address of every officer, director, partner, owner, associate or trustee of the subdivider. 3. The legal description and area of lands. 4. A true statement of the condition of the title to the land, including all encumbrances thereon. 5. A true statement of the terms and conditions on which it is intended to dispose of the land and copies of the instruments which will be delivered to a purchaser to evidence his or her interest in the subdivision and of the contracts and other agreements which a purchaser will be required to agree to or sign. 6. A true statement of the provisions, if any, that have been made for public utilities in the proposed subdivision, including water, electricity, gas, telephone and sewerage facilities. 7. A true statement of the use for which the proposed subdivision will be offered. 8. A true statement of the provisions, if any, limiting the use or occupancy of the parcels in the subdivision. 9. A true statement of the maximum depth of fill used, or proposed to be used on each lot, and a true statement on the soil conditions in the subdivision supported by engineering reports showing the soil has been, or will be, prepared in accordance with the recommendations of a licensed civil engineer. 10. A true statement of the amount of indebtedness which is a lien upon the subdivision or any part thereof, and which was incurred to pay for the construction of any on-site or off-site improvement, or any community or recreational facility, and the names and addresses of the holders of the indebtedness together with an indication of their relationship, if any, to the owner and subdivider. 11. A true statement or reasonable estimate, if applicable, of the amount of any indebtedness which has been or is proposed to be incurred by an existing or proposed special district, entity, taxing area or assessment district, within the boundaries of which the subdivision, or any part thereof, is located, and which is to pay for the construction or installation of any improvement or to furnish community or recreational facilities to the subdivision, and which amounts are to be obtained by ad valorem tax or assessment, or by a special assessment or tax upon the subdivision, or any part thereof. 12. A true statement describing any agricultural activities or conditions in the area which may adversely affect residents of the subdivision, including any odors, cultivation and related dust, agricultural burning, application of pesticides, or irrigation and drainage. 13. Such other information as the owner, his or her agent or subdivider may wish to present. 14. A completed application for a license in such form and containing such additional information as the Division may require on its filing forms. 15. The fees prescribed by this chapter.

Nev. Rev. Stat. § 119.150 License: Investigation.

1. The Division shall, before issuing any license pursuant to the provisions of this chapter to any person, fully investigate all information placed before it as is required pursuant to this chapter and, if in the judgment of the Division it is necessary, inspect the property which is the subject of the application. All reasonable expenses incurred by the Division in carrying out the investigation or inspection must be paid by the applicant and no license may be issued until those expenses have been fully paid. 2. Payments received by the Division pursuant to this section must be deposited in the State Treasury for Credit to the Real Estate Investigative Account, which is hereby created in the State General Fund. The Administrator shall use this Account to pay the expenses of agents and employees of the Division in making an investigation pursuant to this section. The Administrator may advance money for those expenses when appropriate. 3. Each expenditure from the Investigative Account must be paid as other claims against the State are paid.

Nev. Rev. Stat. § 119.160 License: Issuance; denial; temporary permit; hearing.

1. The Administrator shall make an examination of any subdivision, and shall, unless there are grounds for denial, issue to the subdivider a property report authorizing the sale or lease, or the offer for sale or lease, in this state of the lots or parcels in the subdivision. The report must contain the data obtained in accordance with NRS 119.140 and which the Administrator determines are necessary to carry out the purposes of this chapter. The Administrator may publish the report. 2. The grounds for denial are: (a) Failure to comply with any of the provisions in this chapter or the rules and regulations of the Division pertaining thereto. (b) That the sale or lease would constitute misrepresentation to or deceit or fraud of the purchasers or lessees. (c) Inability to deliver title or other interest contracted for. (d) Inability to demonstrate that adequate financial arrangements have been made for all off-site improvements included in the offering. (e) Inability to demonstrate that adequate financial arrangements have been made for any community, recreational or other facilities included in the offering. (f) Failure to make a showing that the parcels can be used for the purpose for which they are offered. (g) Failure to provide in the contract or other writing the use or uses for which the parcels are offered, together with any covenants or conditions relative thereto. (h) Agreements or bylaws to provide for management or other services pertaining to common facilities in the offering, which fail to comply with the regulations of the Division. (i) Failure to demonstrate that adequate financial arrangements have been made for any guaranty or warranty included in the offering. 3. If the Administrator finds that grounds for denial exist, the Administrator shall issue an order so stating to the owner or subdivider no later than 30 days after receipt of the information required to be filed by NRS 119.130 and 119.140 . The Administrator may, alternatively, issue a temporary permit to be effective for not more than 6 months from the date of issuance. If the Administrator issues an order of denial, the owner or developer may appeal the order to the Director who shall, within 5 days of the receipt of the appeal, determine whether grounds for denial exist. If the Director finds that grounds for denial exist, the Director shall confirm the denial. If the Director confirms the denial, the owner or developer may appeal to the Real Estate Commission, which shall conduct a hearing and either confirm the denial or order a license issued within 30 days of the receipt of the appeal. 4. If it appears to the Administrator that a statement of record, or any amendment thereto, is on its face incomplete or inaccurate in any material respect, the Administrator shall so advise the developer within a reasonable time after the filing of the statement or the amendment, but before the date the statement or amendment would otherwise be effective. This notification serves to suspend the effective date of the statement or the amendment until 30 days after the developer files such additional information as the Administrator requires. Any developer, upon receipt of such notice, may request a hearing, and the hearing must be held within 20 days after receipt of the request by the Administrator.

Nev. Rev. Stat. § 119.163 License: Creation and maintenance of website through which licenses may be renewed; fees.

The Division may: 1. Create and maintain a secure website on the Internet through which each registered representatives license issued pursuant to the provisions of this chapter may be renewed; and 2. For each registered representatives license renewed through the use of a website created and maintained pursuant to subsection 1, charge a fee in addition to any other fee provided for pursuant to this chapter which must not exceed the actual cost to the Division for providing that service.

Nev. Rev. Stat. § 119.165 Renewal of permit; creation and maintenance of website; fees.

1. A developers permit must be renewed annually by the developer by filing an application with and paying the fee for renewal to the Administrator. The application must be filed and the fee paid not later than 30 days before the date on which the permit expires. The application must include any change that has occurred in the information previously provided to the Administrator or in a property report provided to a prospective purchaser pursuant to the provisions of NRS 119.182 . 2. The renewal is effective on the 30th day after the filing of the application unless the Administrator: (a) Denies the renewal pursuant to NRS 119.325 or for any other reason; or (b) Approves the renewal on an earlier date. 3. The Division may: (a) Create and maintain a secure website on the Internet through which each developers permit issued pursuant to the provisions of this chapter may be renewed; and (b) For each developers permit renewed through the use of a website created and maintained pursuant to paragraph (a), charge a fee in addition to any other fee provided for pursuant to this chapter which must not exceed the actual cost to the Division for providing that service.

Nev. Rev. Stat. § 119.167 Requirement to notify Division in writing of certain convictions.

1. A developer or registered representative shall notify the Division in writing if he or she is convicted of, or enters a plea of guilty, guilty but mentally ill or nolo contendere to, a felony or any offense involving moral turpitude. 2. A developer or registered representative shall submit the notification required by subsection 1: (a) Not more than 10 days after the conviction or entry of the plea of guilty, guilty but mentally ill or nolo contendere; and (b) When submitting an application to renew a license, permit or registration issued pursuant to this chapter.

Nev. Rev. Stat. § 119.170 Sales: Reference to Division or employees prohibited.

No person, broker, salesperson or registered representative shall in any manner refer to the Division or to any member or employee thereof in offering or selling in this state any subdivision lot, parcel or unit in a subdivision nor make any representation whatsoever that such property has been inspected or approved or otherwise passed upon by the Division or any official, department or employee of this state.

Nev. Rev. Stat. § 119.175 Responsibility of developer for acts of others.

The developer is responsible for the acts of each broker, salesperson, registered representative and any other person the developer employs or engages to represent him or her which are performed within the scope of such employment or engagement.

Nev. Rev. Stat. § 119.180 Sales: Approval of plan and methods required; application by broker and salesperson.

No subdivision or lot, parcel or unit in any subdivision may be sold: 1. Until the Division has approved a written plan or the methods proposed to be employed for the procurement of prospective purchasers, the sale to purchasers and the retention of purchasers after sale. The plan or methods must describe with particularity: (a) The form and content of advertising to be used; (b) The nature of the offer of gifts or other free benefits to be extended; (c) The nature of promotional meetings involving any person or act described in this subsection; (d) The contracts, agreements and other papers to be employed in the sale of the property; and (e) Such other reasonable details as the Division requires. Ê The written plan, or the methods proposed, may be filed as a part of the application under NRS 119.140 . 2. Except through a broker, and before any offering or disposition, pursuant to any license granted under this chapter, the name of the broker must be placed on file with the Division. Only that broker or his or her real estate salesperson may offer or sell the subdivided property or any interest therein. Before a salesperson offers or sells any property or interest, the salespersons name must be placed on file with the Division. The broker and salesperson, if any, shall: (a) Complete an application in such a form and containing such reasonable information as the Division requires. (b) Pay the fees prescribed in this chapter. Ê A broker and a salesperson may represent one or more developers only after completing an application with respect to each developer in such a form and containing such reasonable information as the Division requires and paying the fees prescribed in this chapter.

Nev. Rev. Stat. § 119.181 Sales: Activities of registered representatives; application by registered representative.

1. No person, except a registered representative of the developer or a broker or salesperson who has complied with NRS 119.180 may induce, solicit or attempt to have any person attend any offer or sale of subdivision property or any interest therein. A broker is responsible for the inducing and soliciting activities of his or her registered representative. The registered representative and the developer must comply with the same standards of business ethics as apply to licensed real estate brokers and salespersons. A registered representative shall not make statements of any kind concerning prices, interests or values of the subdivision property. A registered representatives activities must be limited to inducing and soliciting persons to attend an offer or sale of subdivision property and handing out information approved by the Division and a registered representative shall strictly conform to the written plan approved by the Division pursuant to NRS 119.180 . 2. Before engaging in any activities specified in subsection 1, each registered representative of the developer, under such regulations as the Division may promulgate, shall: (a) Complete an application in such form and containing such reasonable information as the Division may require. (b) Pay the fees prescribed in this chapter. Ê Such a person shall be known as a registered representative of the developer and may not use the term licensee. Real estate brokers and salespersons licensed in the State of Nevada may function as registered representatives upon the completion of whatever application and the submission of whatever reasonable information the Division may prescribe, and upon the payment of the fees prescribed in this chapter.

Nev. Rev. Stat. § 119.182 Sales: Review of information by broker or salesperson; rescission by purchaser.

1. The information submitted pursuant to NRS 119.140 must be given to and reviewed with each purchaser by the broker or salesperson before the execution of any contract for the sale of any such property. The broker shall obtain from the purchaser a signed receipt for a copy of the information and, if a contract for disposition is entered into, the receipt and a copy of all contracts and agreements must be kept in the brokers files within the State of Nevada for 3 years or 1 year after final payment has been made on any contract for the sale of property, whichever is longer, and is subject to such inspection and audit as may be prescribed by regulations of the Division. 2. The purchaser of any subdivision or any lot, parcel, unit or interest in any subdivision, not exempted under the provisions of NRS 119.120 or 119.122 may cancel, by written notice, the contract of sale until midnight of the fifth calendar day following the date of execution of the contract, and the contract must so provide. The right of cancellation may not be waived. Any attempt by the developer to obtain such a waiver results in a contract which is voidable by the purchaser. 3. The notice of cancellation may be delivered personally to the developer or sent by certified mail, return receipt requested, to the business address of the developer. 4. The developer shall, within 15 days after receipt of the notice of cancellation, return all payments made by the purchaser.

Nev. Rev. Stat. § 119.183 Sales: Disclosure to purchaser concerning public services and utilities.

Each seller of more than one lot created by a map of division into large parcels must, before the intending purchaser signs any binding agreement, disclose to the intending purchaser in writing by a separate document signed by the intending purchaser that the city, county, school district and special districts are not obligated to furnish any service, specifically mentioning fire protection and roads, to the land so divided, and that any public utility may be similarly free of obligation.

Nev. Rev. Stat. § 119.184 Sales: Approval of advertising and offering.

1. A subdivision consisting of land situated in the State of Nevada or another state must not be advertised or offered for sale within the State of Nevada until the advertising and offering is approved by the Division. Each advertisement must contain the processing number assigned by the Division. 2. Each application for approval of advertising must be accompanied by: (a) A filing fee based on a schedule of fees established by the Division; and (b) Fees for inspecting the advertising and the property in amounts established by the Division. 3. The Division shall render a decision upon an application for approval of an advertising or offering within 30 days from the date the application is filed. 4. The Division shall adopt regulations to accomplish the purpose of this section.

Nev. Rev. Stat. § 119.185 Qualifications of registered representatives.

1. Registered representative permits shall be granted only to persons who: (a) Bear a good reputation for honesty, truthfulness and fair dealing; (b) Are of good moral character; (c) Are competent to transact the business of a registered representative in such a manner as to safeguard the interests of the public; and (d) Meet such other reasonable requirements as the Division may promulgate. 2. The Division shall establish rules and regulations to carry out the provisions of this section.

Nev. Rev. Stat. § 119.190 Additional penalty for violations.

In addition to any other penalty imposed by this chapter, the Division: 1. Shall suspend or revoke the license or registration of a broker, real estate salesperson or registered representative who violates any provision of this chapter for such time as in the circumstances it considers justified. 2. May deny the renewal of the license or registration of a broker, real estate salesperson or registered representative who violates any provision of this chapter.

Nev. Rev. Stat. § 119.200 Participation by officers and employees of Division prohibited.

No officer or employee of the Division or any association, firm or corporation with which an officer or employee is associated shall act as a broker of a subdivision, lot, parcel, unit or interest therein or offer or dispose of a subdivision, lot, parcel, unit or interest therein required to be approved pursuant to NRS 119.140.

Nev. Rev. Stat. § 119.210 News media not liable for publication or content of advertisements.

The owner, publisher, licensee or operator of any newspaper, magazine, television or radio broadcasting station or network of stations or the agents or employees of any such owner, publisher, licensee or operator of such a newspaper, magazine, station or network of stations shall not be liable under this chapter for any advertising of any subdivision, lot, parcel or unit in any subdivision carried in any such newspaper or magazine or by any such television or radio broadcasting station or network of stations nor shall any of them be liable under this chapter for the contents of any such advertisement.

Nev. Rev. Stat. § 119.220 Action by purchaser or Administrator for misrepresentation or other violation.

1. Where any part of the statement of record, when that part became effective, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein, the Administrator or any person acquiring a lot in the subdivision covered by the statement of record from the developer or his or her agent during the period the statement remained uncorrected (unless it is proved that at the time of the acquisition the Administrator or purchaser knew of the untruth or omission) may sue the developer in any court of competent jurisdiction. 2. Any developer or agent, who sells or leases a lot in a subdivision: (a) In violation of this chapter; or (b) By means of a property report which contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein, Ê may be sued by the Administrator or purchaser of the lot. 3. If a suit authorized under subsection 1 or 2 is brought by the purchaser, the purchaser is entitled to recover such damages as represent the difference between the amount paid for the lot and the reasonable cost of any improvements thereto, and the lesser of: (a) The value thereof as of the time the suit was brought; (b) The price at which the lot has been disposed of in a bona fide market transaction before suit; or (c) The price at which the lot has been disposed of after suit in a bona fide market transaction but before judgment, Ê or to rescission of the contract of sale and the refund of any consideration paid by the purchaser. 4. If a suit authorized under subsection 1 or 2 is brought by the Administrator, the Administrator may seek a declaration of the court that any person entitled to sue the developer or his or her agent under this section is entitled to the right of rescission and the refund of any consideration paid by him or her. 5. Every person who becomes liable to make any payment under this section may recover contribution as in cases of contract from any person who, if sued separately, would have been liable to make the same payment. 6. Reasonable attorneys fees may be awarded to the prevailing party in any action brought under this section. Any action to rescind a contract of sale under this section must be brought within 1 year after the date of purchase or within 1 year after the date of the discovery of the misrepresentation giving rise to the action for rescission. 7. The provisions of this section are in addition to and not a substitute for any other right of a person to bring an action in any court for any act involved in the offering or sale of an interest in a subdivision or the right of the State to punish any person for any violation of any law.

Nev. Rev. Stat. § 119.230 Sale under blanket encumbrance unlawful; exceptions.

It is unlawful for the owner or subdivider to sell lots or parcels within a subdivision subject to a blanket encumbrance unless one of the following conditions is complied with: 1. All sums paid or advanced by purchasers are placed in an escrow or other depository acceptable to the Division until the fee title contracted for is delivered to such purchaser by deed together with complete release from all financial encumbrances; or 2. The fee title to the subdivision is placed in trust under an agreement or trust acceptable to the Division until a proper release from each blanket encumbrance, including all taxes, is obtained and title contracted for is delivered to such purchaser; or 3. Such blanket encumbrance contains provisions evidencing the subordination or release of the lien of the holder or holders of the blanket encumbrance to the rights of those persons purchasing from the subdivider, and further evidencing that the subdivider is able to secure releases from such blanket encumbrances with respect to the property upon full payment of the purchase price owed by such person.

Nev. Rev. Stat. § 119.240 Adoption of regulations required.

The Division shall, not later than January 1, 1972, and may from time to time thereafter, promulgate such regulations as it deems necessary for the carrying out and enforcement of the provisions of this chapter.

Nev. Rev. Stat. § 119.250 Actions to enjoin violations; intervention.

1. Whenever the Division believes from evidence satisfactory to it that any person has violated any order, regulation, license, permit, decision, demand or requirement, or any part or provision thereof, or any of the provisions of this chapter, it may bring an action in the name of the Division in the district court of the State of Nevada in the county wherein such person resides or maintains his or her principal place of business, or, if such person resides outside the State of Nevada, in any court with proper jurisdiction within or outside the State of Nevada, against such person to enjoin such person from continuing such violation, engaging therein or doing any act or acts in furtherance thereof. 2. The Administrator in the name of the Division may intervene in any action involving a subdivision or interest therein, within the provisions of this chapter, if such intervention is necessary in the public interest and for the protection of purchasers.

Nev. Rev. Stat. § 119.260 Orders to cease and desist; agreement with developer in lieu of issuance of order.

1. The Administrator may issue orders directing persons to desist and refrain from engaging in activities for which they are not licensed under this chapter or conducting activities in a manner not in compliance with the provisions of this chapter. 2. A person who has violated any of the provisions of this chapter shall not engage in any activity for which a license issued pursuant to this chapter is required after receiving an order in writing from the Administrator directing the person to desist and refrain from so doing. 3. Within 30 days after the receipt of such an order, the person may file a verified petition with the Administrator for a hearing. 4. The Administrator shall hold a hearing within 30 days after the petition has been filed. If the Administrator fails to hold a hearing within 30 days, or does not render a written decision within 45 days after the final hearing, the cease and desist order is rescinded. 5. If the decision of the Administrator after a hearing is against the person ordered to cease and desist, the person may appeal that decision by filing, within 30 days after the date on which the decision was issued, a petition in the district court for the county in which the person conducted the activity. The burden of proof in the appeal is on the appellant. The court shall consider the decision of the Administrator for which the appeal is taken and is limited solely to a consideration and determination of the question of whether there has been an abuse of discretion on the part of the Administrator in making the decision. 6. In lieu of issuing an order to cease and desist, if the developer is conducting activities in a manner not in compliance with the provisions of this chapter, the Administrator may enter into an agreement with the developer in which the developer agrees to: (a) Discontinue the activities that are not in compliance with this chapter; (b) Pay all costs incurred by the Division in investigating the developers activities and conducting any necessary hearing; and (c) Return to the purchasers any money or property which the developer acquired through such activities. Ê Except as otherwise provided in NRS 239.0115 , the terms of such an agreement are confidential unless violated by the developer.

Nev. Rev. Stat. § 119.265 Confidentiality of records: Certain records relating to complaint or investigation deemed confidential; certain records relating to disciplinary action deemed public records.

1. Except as otherwise provided in this section and NRS 239.0115 , a complaint filed with the Division alleging a violation of this chapter, all documents and other information filed with the complaint and all documents and other information compiled as a result of an investigation conducted to determine whether to initiate disciplinary action are confidential and may be disclosed in whole or in part only as necessary in the course of administering this chapter or to a licensing board or agency or any other governmental agency, including, without limitation, a law enforcement agency, that is investigating a person who holds a license or permit issued pursuant to this chapter. 2. The complaint or other charging documents filed with the Division to initiate disciplinary action and all documents and other information considered by the Division or a hearing officer when determining whether to impose discipline are public records.

Nev. Rev. Stat. § 119.267 Confidentiality of records: Certain criminal and financial records deemed confidential; exceptions.

Except as otherwise provided in NRS 119.265, unless otherwise ordered by a court, the Division may keep confidential the criminal and financial records of a licensee, permittee or an applicant for a license or permit issued pursuant to this chapter.

Nev. Rev. Stat. § 119.270 Hearing officers.

In any proceeding under this chapter, the Administrator may appoint hearing officers from the staff of the Department of Business and Industry who shall act as his or her agents and conduct any hearing or investigation which may be conducted by the Administrator under the provisions of this chapter.

Nev. Rev. Stat. § 119.280 Powers of Administrator to take testimony, administer oaths, issue subpoenas and classify confidential records.

1. The Administrator may: (a) Take testimony and other evidence concerning all matters within the jurisdiction of the Division under this chapter. (b) Administer oaths. (c) Certify to all official acts. (d) For cause, issue subpoenas for attendance of witnesses and the production of books and papers. 2. The Administrator shall classify as confidential certain records and information obtained by the Division when such matters are trade secrets, including but not limited to lists of prospective purchasers and lists of purchasers with whom a sale has been consummated. This power is subject to the limitations and protective measures in NRS 49.325 .

Nev. Rev. Stat. § 119.290 Service of process; witness fees.

1. In any hearing in any part of the State the process issued by the Administrator extends to all parts of the State and may be served by any person authorized to serve process of courts of record. 2. The person serving any such process shall receive such compensation as may be allowed by the Administrator, not to exceed the fees prescribed by law for similar service. 3. Each witness who appears by order of the Administrator shall receive for his or her attendance the same fees and mileage allowed by law to a witness in civil cases, which amount shall be paid by the party at whose request the witness is subpoenaed.

Nev. Rev. Stat. § 119.300 Action to compel attendance of witnesses and production of documents.

1. The district court in the county in which any hearing may be held has the power to compel the attendance of witnesses, the giving of testimony and the production of books and papers as requested by any subpoena issued by the Administrator. 2. In case of the refusal of any witness to attend, testify or produce any papers required by such subpoena, the Administrator may report to the district court in the county in which the hearing is pending by petition, setting forth: (a) That due notice has been given of the time and place of attendance of the witness or the production of the books and papers; (b) That the witness has been subpoenaed in the manner prescribed in this chapter; and (c) That the witness has failed and refused to attend or produce the papers required by subpoena before the Administrator in the cause or proceeding named in the subpoena or has refused to answer questions propounded to the witness in the course of such hearing, and asking an order of the court compelling the witness to attend and testify or produce the books or papers before the Administrator. 3. The court, upon petition of the Administrator, may enter an order directing the witness to appear before the court at a time and place to be fixed by the court in such order, the time to be not more than 10 days from the date of the order, and then and there show cause why the witness has not attended, testified or produced the books or papers before the Administrator. A certified copy of the order shall be served upon the witness. If it appears to the court that the subpoena was regularly issued by the Administrator, the court may thereupon enter an order that the witness appear before the Administrator at the time and place fixed in the order and testify or produce the required books or papers, and upon failure to obey the order the witness shall be dealt with as for contempt of court.

Nev. Rev. Stat. § 119.310 Depositions and discovery.

1. The Administrator may, in any hearing before the Administrator, cause the depositions of witnesses to be taken in the manner prescribed by the Nevada Rules of Civil Procedure for like depositions in civil actions in the district court of this state, and to that end may compel the attendance of witnesses and the production of books and papers. 2. The clerk of the district court in the county in which any hearing is held by the Administrator shall, upon the application of the Administrator, issue commissions or letters rogatory to other states for the taking of evidence therein for use in any proceedings before the Administrator. 3. Any party to any hearing before the Administrator shall have the right to the attendance of witnesses in his or her behalf at such hearing or upon deposition, as set forth in this section, upon making request therefor to the Administrator and designating the name and address of the person or persons sought to be subpoenaed.

Nev. Rev. Stat. § 119.320 Fees.

1. Subject to the provisions of this chapter, the Division shall collect the following fees at such times and upon such conditions as it may provide by regulation: (a) For deposit in the State General Fund: For each annual registered representatives license to represent a developer $85 For each transfer of a registered representatives license to represent a developer 30 For each penalty for a late renewal of a registered representatives license.. 40 For each developers permit per subdivision..................................................... 500 For each developers temporary permit for each subdivision......................... 275 For each renewal of a developers permit.......................................................... 500 For each developers partial registration pursuant to NRS 119.121 .............. 275 The $500 fee for a developers permit per subdivision does not apply to any subdivision having 34 or fewer lots, parcels, interests or units. (b) For deposit for use by the Division in carrying out the provisions of this chapter: For each application for a developers request for an exemption from any provision of this chapter $500 For each application for renewal of an exemption from any provision of this chapter 500 For each penalty for a late renewal of a developers permit........................... 125 For each amendment to a developers permit.................................................... 300 For each penalty for the untimely filing of an amendment to a developers permit 125 For each filing of a Project Registration Form 649 - Statement of Project Broker 25 For each project request for processing within 5 days after a complete filing is made 1,000 2. At the time of the original filing, each developer shall pay an additional $5 for each lot, parcel, interest or unit in any one subdivision in excess of 50, but not exceeding 250 such lots, parcels, interests or units; $4 for 251 through 500 lots, parcels, interests or units in any one subdivision; $3 for 501 through 750 lots, parcels, interests or units in any one subdivision; and $2.50 for all lots, parcels, interests or units in excess of 750 in any one subdivision. The developer may designate lots, parcels, interests or units it intends to offer for sale or lease in this state out of the subdivision, and the fee per lot, parcel, interest or unit is only applicable to those lots, parcels, interests or units. The units must be designated in groupings of no less than 5 contiguous units in each group, except that the Division may accept fewer upon request of the developer. If the developer determines to offer additional lots, parcels, interests or units, it shall so certify to the Division and pay the additional fee therefor. 3. With the exception of the fees for a registered representatives license or transfer, the fees enumerated in this section must be reduced by the Administrator at such times as, in his or her judgment, the Administrator considers a reduction equitable in relation to the necessary costs of carrying out the administration and enforcement of the provisions of this chapter.

Nev. Rev. Stat. § 119.322 Disciplinary action for failure to pay money to Real Estate Division.

In addition to any other remedy or penalty, the Administrator may: 1. Refuse to issue a license, permit or registration to a person who has failed to pay money which the person owes to the Division. 2. Refuse to renew, or suspend or revoke, the license, permit or registration of a person who has failed to pay money which the person owes to the Division.

Nev. Rev. Stat. § 119.325 Grounds for imposing fine or suspending, revoking, denying renewal of or placing conditions upon property report, permit, partial registration, exemption or license.

The Administrator may impose a fine or suspend, revoke, deny the renewal of or place conditions upon the property report, permit, partial registration, exemption or license issued pursuant to this chapter of a developer at any time if: 1. The developer obtained the property report, permit, partial registration, exemption or license by false or fraudulent representation; or 2. The developer violates any of the terms or conditions of the property report, permit, partial registration, exemption or license, the provisions of this chapter or the regulations adopted pursuant thereto. Ê The Administrator shall not impose a fine of more than $5,000 pursuant to this section.

Nev. Rev. Stat. § 119.327 Expiration, revocation or surrender of property report, permit, partial registration, exemption, license or registration does not prohibit disciplinary action against holder thereof.

The expiration or revocation of a property report, permit, partial registration, exemption, license or registration by operation of law or by order or decision of the Administrator, a hearing officer or a court of competent jurisdiction, or the voluntary surrender of a property report, permit, partial registration, exemption, license or registration by a developer, broker, real estate salesperson or registered representative does not: 1. Prohibit the Administrator or Division from initiating or continuing an investigation of, or action or disciplinary proceeding against, the developer, broker, real estate salesperson or registered representative as authorized pursuant to the provisions of this chapter or the regulations adopted pursuant thereto; or 2. Prevent the imposition or collection of any fine or penalty authorized pursuant to the provisions of this chapter or the regulations adopted pursuant thereto against the developer, broker, real estate salesperson or registered representative.

Nev. Rev. Stat. § 119.329 Administrative fine for engaging in certain conduct without license, permit, registration or authorization; procedure for imposition of fine; judicial review; exceptions.

1. In addition to any other remedy or penalty, the Administrator may impose an administrative fine against any person who knowingly: (a) Engages or offers to engage in any activity for which a license, permit or registration or any type of authorization is required pursuant to this chapter, or any regulation adopted pursuant thereto, if the person does not hold the required license, permit or registration or has not been given the required authorization; or (b) Assists or offers to assist another person to commit a violation described in paragraph (a). 2. If the Administrator imposes an administrative fine against a person pursuant to this section, the amount of the administrative fine may not exceed the amount of any gain or economic benefit that the person derived from the violation or $5,000, whichever amount is greater. 3. In determining the appropriate amount of the administrative fine, the Administrator shall consider: (a) The severity of the violation and the degree of any harm that the violation caused to other persons; (b) The nature and amount of any gain or economic benefit that the person derived from the violation; (c) The persons history or record of other violations; and (d) Any other facts or circumstances that the Administrator deems to be relevant. 4. Before the Administrator may impose the administrative fine, the Administrator must provide the person with notice and an opportunity to be heard. 5. The person is entitled to judicial review of the decision of the Administrator in the manner provided by chapter 233B of NRS. 6. The provisions of this section do not apply to a person who engages or offers to engage in activities within the purview of this chapter if: (a) A specific statute exempts the person from complying with the provisions of this chapter with regard to those activities; and (b) The person is acting in accordance with the exemption while engaging or offering to engage in those activities.

Nev. Rev. Stat. § 119.330 Unlawful acts; penalties.

1. Except as otherwise provided in subsection 2, a person violating a provision of this chapter, if a natural person, is guilty of a gross misdemeanor, and if a copartnership, association or corporation, shall be punished by a fine of not more than $10,000 for each offense. 2. A person who: (a) Sells or attempts to sell in this state any subdivision or any lot, parcel, unit or interest in any subdivision by means of intentional misrepresentation, deceit or fraud; or (b) Obtains or attempts to obtain a license under this chapter by means of intentional misrepresentation, deceit or fraud, Ê is guilty of a category C felony and shall be punished as provided in NRS 193.130 . In addition to any other penalty, the court shall order the person to pay restitution. 3. An officer or agent of a corporation, or member or agent of a copartnership or association, who personally participates in or is an accessory to any violation of this chapter by the copartnership, association or corporation, is subject to the penalties prescribed for natural persons in this section. 4. This section does not release any person, corporation, association or copartnership from civil liability or criminal prosecution under any other law of this state. 5. Upon conviction the court may revoke the license of the person so convicted, in addition to imposing the other penalties provided in this section.

Nev. Rev. Stat. § 119.340 Provisions of chapter are supplemental.

The provisions of this chapter are in addition to and not a substitute for NRS 278.010 to 278.630, inclusive.

Nev. Rev. Stat. § 119.1193 Applicability to subdivision restricted exclusively to nonresidential use.

The provisions of this chapter do not apply to any subdivision in which all lots, parcels, units or interests of the subdivision are restricted exclusively to nonresidential use.

Nev. Rev. Stat. § 119.1197 Exemptions: Undivided interests in unimproved land that is undivided, located outside Nevada and offered for investment purposes; requirements to obtain exemption; regulations; revocation; complaints.

1. The provisions of this chapter do not apply, unless the method of disposition is adopted to evade those provisions or the provisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 to 1720, inclusive, upon notification to the Division by the person electing to be exempt under this subsection, to the sale of an undivided interest in unimproved land if: (a) The land has not been divided into lots or parcels; (b) The land is not located in this State; and (c) The undivided interest is offered for investment purposes and not for short- or long-term residential development purposes. 2. The seller of land exempted pursuant to this section must provide a property report from the jurisdiction where the land is located to each potential purchaser of the land. 3. The Division shall adopt regulations prescribing the application for an exemption pursuant to this section. The application must be posted by the Division on its Internet website. The application must contain: (a) All information necessary to determine if an applicant is qualified for the exemption, including, without limitation, the information contained in paragraphs (a), (b) and (c) of subsection 1; (b) The name, address, telephone number and license number, if any, of the owner, broker or seller of the land; and (c) A property report issued by the jurisdiction where the land is located. 4. An application for an exemption pursuant to this section must be accompanied by the applicable fee specified in NRS 119.320 . 5. An owner, broker or seller of land who applies for an exemption pursuant to this section must notify the Division of any change of his or her address, telephone number or other contact information within 10 days after such change. The Division shall update its records to reflect any changes in such information without charge to the owner, broker or seller. 6. If the property report issued by another jurisdiction and submitted as part of the application for exemption pursuant to this section is revoked, withdrawn or suspended, or a cease and desist order is issued by the jurisdiction concerning activities relating to the land, the exemption granted pursuant to this section is automatically revoked. 7. If a person files a complaint against an owner, broker or seller of land exempted from this chapter pursuant to this section, the Division shall: (a) Provide the person with the contact information of the owner, broker or seller of the land that the Division has on file; and (b) If the owner, broker or seller is a licensed or registered broker in another jurisdiction, provide the information contained in the complaint to the appropriate regulatory agency of the other jurisdiction.

Nev. Rev. Stat. § 119.1835 Sales: Disclosure to purchaser of location of rights-of-way and easements for electrical transmission lines.

It is unlawful for a developer to sell any lot, parcel, unit or interest in a subdivision without disclosing to the purchaser in writing, before the purchaser signs any binding agreement, the location in the subdivision, and on all land contiguous thereto, of all rights-of-way and easements for transmission lines of public utilities that supply electricity if the developer knows or reasonably should know the locations of such rights-of-way and easements.

Nev. Rev. Stat. § 119.1837 Sales: Developer must comply with certain provisions governing public offering statements for common-interest community containing converted building.

It is unlawful for a developer to sell any lot, parcel, unit or interest in a subdivision without complying with the provisions of NRS 116.4106, if applicable.

Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-119.htmlFetched: 10/4/2026