Key Takeaways
- NRED can investigate complaints, conduct hearings, and impose disciplinary actions
- Violations can result in license denial, suspension, revocation, or fines up to \$10,000 per violation
- Common violations include misrepresentation, commingling, unlicensed activity, and agency violations
- Practicing without a license is a criminal offense (misdemeanor) in Nevada
- Licensees have due process rights including notice and hearing before disciplinary action
Last updated: January 2026
License Law Violations & Discipline
NRED has authority to investigate complaints and take disciplinary action against licensees who violate Nevada real estate law (NRS Chapter 645).
Common Violations
Misrepresentation and Fraud
| Violation | Description |
|---|---|
| Material misrepresentation | False statements about important facts |
| Omission | Failing to disclose known material defects |
| Fraud | Intentional deception for personal gain |
| False advertising | Misleading marketing or claims |
| Exaggeration | Overstating property benefits |
Trust Account Violations
| Violation | Description |
|---|---|
| Commingling | Mixing client and broker funds |
| Conversion | Using client funds without authorization |
| Failure to deposit | Not depositing funds timely |
| Poor records | Inadequate documentation |
| Missing reconciliations | Failing to reconcile monthly |
Agency and Disclosure Violations
| Violation | Description |
|---|---|
| Undisclosed dual agency | Acting for both parties without consent |
| Missing Duties Owed form | Failing to provide required disclosures |
| Breach of fiduciary duty | Violating duties to clients |
| Undisclosed interest | Failing to disclose personal interest |
| Confidentiality breach | Disclosing confidential information |
Unlicensed Activity
| Violation | Description |
|---|---|
| Practicing without license | Performing activities requiring a license |
| Practicing on expired license | Continuing to work after expiration |
| Paying unlicensed persons | Compensating unlicensed individuals for licensed activities |
| Aiding unlicensed practice | Helping others practice without a license |
Warning: Practicing real estate without a license is a misdemeanor in Nevada and can result in fines and jail time.
Disciplinary Process
Investigation
- Complaint filed with NRED (or NRED initiates investigation)
- Investigation conducted by Division staff
- Evidence gathered (documents, interviews, audits)
- Determination made whether to proceed with charges
Hearing Process
If NRED proceeds with disciplinary action:
| Step | Description |
|---|---|
| Notice | Licensee notified of charges in writing |
| Response time | Licensee has opportunity to respond |
| Hearing | Formal hearing before hearing officer |
| Evidence | Both sides present evidence |
| Decision | Written decision issued |
| Appeal | Licensee may appeal to court |
Due Process Rights
Licensees have the right to:
- Notice of charges before hearing
- Hearing before adverse action
- Representation by attorney
- Present evidence and witnesses
- Cross-examine witnesses
- Appeal unfavorable decisions
Disciplinary Actions
NRED may impose various sanctions:
| Action | Description |
|---|---|
| Denial | Refuse to issue license |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Reprimand | Formal warning |
| Fine | Up to $10,000 per violation |
| Probation | Conditional license with restrictions |
| Education | Required additional training |
| Restitution | Payment to harmed parties |
Factors Considered
| Factor | Impact |
|---|---|
| Severity of violation | More serious = harsher penalty |
| Prior disciplinary history | Repeat violations = stricter |
| Harm to consumers | Consumer damage = more serious |
| Cooperation | Cooperation may reduce penalty |
| Rehabilitation | Remedial steps may help |
| Licensee's experience | May be factor in penalty |
Criminal Penalties
Beyond administrative discipline, certain violations are crimes:
| Offense | Classification |
|---|---|
| Practicing without license | Misdemeanor |
| Fraud | Felony (depending on amount) |
| Theft/Conversion | Felony (depending on amount) |
| Forgery | Felony |
Grounds for Discipline (NRS 645.630)
NRED can discipline licensees for:
| Grounds | Examples |
|---|---|
| Violation of NRS 645 | Breaking any statute |
| Violation of NAC 645 | Breaking any regulation |
| Dishonest conduct | Fraud, misrepresentation |
| Incompetence | Failure to use reasonable skill |
| Untrustworthiness | Breach of trust |
| Conviction of crime | Felony or real estate crime |
| Failure to supervise | Broker failing to supervise |
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Test Your Knowledge
What is the maximum fine NRED can impose per violation?
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Test Your Knowledge
What type of crime is practicing real estate without a license in Nevada?
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Test Your Knowledge
Which of the following is a due process right for Nevada licensees facing discipline?
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D