2005 Nevada Revised Statutes - Chapter 119 — Sale of Subdivided Land: Licensing and Regulation
CHAPTER 119 - SALE OF SUBDIVIDED LAND:LICENSING AND REGULATION
GENERAL PROVISIONS
NRS 119.010 Definitions.
NRS 119.015 Administratordefined.
NRS 119.020 Blanketencumbrance defined.
NRS 119.030 Brokerdefined.
NRS 119.040 Developerdefined.
NRS 119.045 Directordefined.
NRS 119.050 Divisiondefined.
NRS 119.055 Hearingofficer defined.
NRS 119.060 Offerdefined.
NRS 119.070 Persondefined.
NRS 119.075 Propertyreport defined.
NRS 119.080 Purchaserdefined.
NRS 119.090 Registeredrepresentative defined.
NRS 119.100 Saledefined.
NRS 119.105 Statementof record defined.
NRS 119.110 Subdivisiondefined.
NRS 119.112 Unitdefined.
ADMINISTRATION
NRS 119.114 Administrationby Real Estate Division; duties of Attorney General.
NRS 119.115 Authorityfor Real Estate Division to conduct business electronically; regulations; fees;use of unsworn declaration; exclusions.
NRS 119.116 Employmentof counsel, investigators and professional consultants.
NRS 119.118 Supportof Division by legislative appropriation; disposition of fees and charges.
APPLICABILITY AND EXEMPTIONS
NRS 119.119 Applicabilityto subdivision registered under Interstate Land Sales Full Disclosure Act.
NRS 119.120 Exemptions:Single purchase; large lots; contractors; court orders; governmental agencies.
NRS 119.121 Exemptions:Single purchase; small lots; requirements for partial registration.
NRS 119.122 Exemptions:Evidence of secured indebtedness; investment trusts; cemetery lots; propertywithout liens, encumbrances or adverse claims; regulations of Division;revocation.
NRS 119.125 Exemptions:Time shares; memberships in campgrounds.
NRS 119.128 Exemptions:Limitation.
REQUIREMENTS AND RESTRICTIONS
NRS 119.130 License:Requirement; appointment of Secretary of State as agent for service of process;procedure for service of process.
NRS 119.140 License:Required information; application; fee.
NRS 119.150 License:Investigation.
NRS 119.160 License:Issuance; denial; temporary permit; hearing.
NRS 119.165 Renewalof permit.
NRS 119.170 Sales:Reference to Division or employees prohibited.
NRS 119.175 Responsibilityof developer for acts of others.
NRS 119.180 Sales:Approval of plan and methods required; application by broker and salesman.
NRS 119.181 Sales:Activities of registered representatives; application by registeredrepresentative.
NRS 119.182 Sales:Review of information by broker or salesman; rescission by purchaser.
NRS 119.183 Sales:Disclosure to purchaser concerning public services and utilities.
NRS 119.1835 Sales:Disclosure to purchaser of location of rights-of-way and easements forelectrical transmission lines.
NRS 119.1837 Sales:Developer must comply with certain provisions governing public offeringstatements for common-interest community containing converted building.
NRS 119.184 Sales:Approval of advertising and offering.
NRS 119.185 Qualificationsof registered representatives.
NRS 119.190 Additionalpenalty for violations.
NRS 119.200 Participationby officers and employees of Division prohibited.
NRS 119.210 Newsmedia not liable for publication or content of advertisements.
NRS 119.220 Actionby purchaser or Administrator for misrepresentation or other violation.
NRS 119.230 Saleunder blanket encumbrance unlawful; exceptions.
ENFORCEMENT OF CHAPTER; FEES
NRS 119.240 Adoptionof regulations required.
NRS 119.250 Actionsto enjoin violations; intervention.
NRS 119.260 Ordersto cease and desist; agreement with developer in lieu of issuance of order.
NRS 119.270 Hearingofficers.
NRS 119.280 Powersof Administrator to take testimony, administer oaths, issue subpoenas andclassify confidential records.
NRS 119.290 Serviceof process; witness fees.
NRS 119.300 Actionto compel attendance of witnesses and production of documents.
NRS 119.310 Depositionsand discovery.
NRS 119.320 Fees.
NRS 119.322 Disciplinaryaction for failure to pay money to Real Estate Division.
NRS 119.325 Groundsfor imposing fine or suspending, revoking, denying renewal of or placingconditions upon property report, permit, partial registration, exemption orlicense.
NRS 119.327 Expiration,revocation or surrender of property report, permit, partial registration,exemption, license or registration does not prohibit disciplinary actionagainst holder thereof.
NRS 119.329 Administrativefine for engaging in certain conduct without license, permit, registration orauthorization; procedure for imposition of fine; judicial review; exceptions.
NRS 119.330 Unlawfulacts; penalties.
NRS 119.340 Provisionsof chapter are supplemental.
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GENERAL PROVISIONS
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(Added to NRS by 1971, 1403; A 1973, 1751; 1987,1075; 1993, 1508)
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(Added to NRS by 1973, 1759; A 1993, 1508;
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(Added to NRS by 1971, 1403)
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(Added to NRS by 1971, 1403)
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1. The owner of subdivided land who, on his own behalfor through an agent or subsidiary, offers it for sale.
2. The principal agent of an inactive owner.
(Added to NRS by 1971, 1403; A 1973, 1751)
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(Added to NRS by 1993, 1508)
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(Added to NRS by 1971, 1403; A 1993, 1509)
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(Added to NRS by 1973, 1759; A 1993, 1509)
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(Added to NRS by 1971, 1403)
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(Added to NRS by 1971, 1403; A 1985, 508)
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(Added to NRS by 1987, 1074)
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(Added to NRS by 1971, 1403; A 1973, 1751)
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(Added to NRS by 1971, 1404; A 1973, 1751)
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(Added to NRS by 1971, 1404)
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(Added to NRS by 1987, 1075)
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(Added to NRS by 1971, 1404; A 1973, 1751)
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(Added to NRS by 1973, 1759)
ADMINISTRATION
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1. The Division may do all things necessary andconvenient for carrying into effect the provisions of this chapter.
2. The Attorney General shall provide opinions for theDivision on all questions of law relating to the construction or interpretationof this chapter, or arising out of the administration thereof.
3. The Attorney General shall act as the attorney forthe Division in all actions and proceedings brought against the Division underor pursuant to any of the provisions of this chapter or the regulationspromulgated thereunder.
(Added to NRS by 1973, 1759)
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1. The Administrator may adopt regulations whichestablish procedures for the Division to conduct business electronicallypursuant to title 59 of NRS with persons who are regulated pursuant to thischapter and with any other persons with whom the Division conducts business.The regulations may include, without limitation, the establishment of fees topay the costs of conducting business electronically with the Division.
2. In addition to the process authorized by
3. The Division may refuse to conduct businesselectronically with a person who has failed to pay money which the person owesto the Division.
(Added to NRS by
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(Added to NRS by 1973, 1759)
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(Added to NRS by 1973, 1759)
APPLICABILITY AND EXEMPTIONS
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(Added to NRS by 1983, 414)
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1. By a purchaser of any lot, parcel, interest or unitof a subdivision for his own account in a single or isolated transaction.
2. If:
(a) Each lot, parcel, interest or unit being offered ordisposed of in any subdivision is more than 80 acres in size;
(b) The purchaser or his agent inspects the land beforepurchasing it; and
(c) The developer signs an affirmation which statesthat the purchaser or his agent has inspected the land before purchasing it,and the affirmation is made a matter of record in accordance with regulationsof the Division.
For purposesof this subsection, the size of any undivided interest being offered ordisposed of in any subdivision must be computed by dividing the number of the undividedinterests into the area of the subdivision, exclusive of common or reservedareas, roadways or easements.
3. To any person who is licensed in this state toengage 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 inthe State of Nevada to construct residential buildings if the land is locatedin this state and is to include a residential building when disposition iscompleted.
5. Pursuant to the order of any court of this state.
6. By any government or governmental agency.
(Added to NRS by 1971, 1404; A 1973, 1752; 1975,1568; 1977, 1513; 1979, 1507; 1981, 14; 1983, 273, 410; 1985, 1406)
NRS
1. Completes an application in such form andcontaining such reasonable information as the Division may require;
2. Pays the fees prescribed in this chapter for apermit for partial registration;
3. Requires the purchaser or his agent to inspect theland before purchasing it; and
4. Signs an affirmation which states that thepurchaser or his agent has inspected the land before purchasing it and makesthat affirmation a matter of record pursuant to the regulations of theDivision,
thedeveloper need only comply with the provisions of
(Added to NRS by 1985, 1406; A 1997, 1964)
NRS
1. The provisions of this chapter do not apply, unlessthe method of disposition is adopted to evade those provisions or theprovisions of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1701to 1720, inclusive, upon notification to the Division by the person electing tobe exempt under this subsection, to:
(a) Any offer or disposition of any evidence ofindebtedness secured by way of any mortgage or deed of trust of real estate.
(b) Securities or units of interest issued by aninvestment trust regulated under the laws of this state, except where theDivision finds that the enforcement of this chapter with respect to suchsecurities or units of interest is necessary in the public interest and for theprotection of purchasers.
(c) Cemetery lots.
2. Unless the method of disposition is adopted toevade the provisions of this chapter or the provisions of the Interstate LandSales Full Disclosure Act, 15 U.S.C. 1701 to 1720, inclusive, this chapterdoes not apply to the sale or lease of real estate located in this state whichis free and clear of all liens, encumbrances and adverse claims if eachpurchaser or his agent has personally inspected the lot before purchase and ifthe developer executes a written affirmation to that effect to be made a matterof record in accordance with regulations of the Division. As used in thissubsection, the terms liens, encumbrances and adverse claims are notintended to refer to purchase money encumbrances nor property reservationswhich land developers commonly convey or dedicate to local bodies or publicutilities for the purpose of bringing public services to the land beingdeveloped nor to taxes and assessments which, under applicable state or locallaw, constitute liens on the property before they are due.
3. The Division may, pursuant to regulations adoptedby it, exempt from any of the provisions of this chapter any subdivision, if itfinds that the enforcement of this chapter with respect to subdivisions orlots, parcels, units or interests in subdivisions is not necessary in thepublic interest and for the protection of purchasers. An exemption grantedpursuant to this subsection is effective for a period not to exceed 1 year asdetermined by the division. The Division may revoke such an exemption at any timeupon finding that the revocation is necessary for the protection of purchasers.Upon application for renewal of an exemption, the Division may renew an exemptionfor a period not to exceed 1 year as determined by the Division. An applicationfor an exemption pursuant to this subsection, or for the renewal of such anexemption, must be accompanied by the applicable fee specified in
(Added to NRS by 1983, 413; A 1985, 1407; 1993, 2293)
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1. Any time-share project, person or subdivision whichis subject to the requirements of this chapter for licensing and which complieswith the provisions of chapter 119A of NRSis not required to comply with the provisions of this chapter.
2. Any campground or developer which is subject to therequirements of chapter 119B of NRS andcomplies with those provisions is not required to comply with the provisions ofthis chapter.
(Added to NRS by 1983, 996; A 1985, 1671)
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(Added to NRS by 1983, 414)
REQUIREMENTS AND RESTRICTIONS
NRS
1. No subdivision or lot, parcel, unit or interest inany subdivision may in any way be offered or sold in this state by any personuntil:
(a) He has appointed in writing the Secretary of Stateto be his agent, upon whom all process, in any action or proceeding againsthim, may be served, and in this writing he agrees that any process against himwhich is served on the Secretary of State is of the same legal validity as ifserved on him and that the appointment continues in force as long as anyliability remains outstanding against him in this state. The writtenappointment must be acknowledged before a notary public and must be filed inthe Office of the Secretary of State with a fee of $10 for accepting andtransmitting any legal process served on the Secretary of State. Copiescertified by the Secretary of State are sufficient evidence of the appointmentand agreement.
(b) He has received a license under
2. Service of process authorized by paragraph (a) ofsubsection 1 must be made by filing with the Secretary of State:
(a) Two copies of the legal process. The copies mustinclude a specific citation to the provisions of this section. The Secretary ofState may refuse to accept such service if the proper citation is not includedin each copy.
(b) A fee of $10.
TheSecretary of State shall forthwith forward one copy of the legal process to thelicensee, by registered or certified mail prepaid to the licensee.
(Added to NRS by 1971, 1405; A 1983, 412; 1985, 1408;1997, 475)
NRS
1. The name and address of each person owning orcontrolling an interest of 10 percent or more.
2. The name, principal occupation and address of everyofficer, 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 tothe land, including all encumbrances thereon.
5. A true statement of the terms and conditions onwhich it is intended to dispose of the land and copies of the instruments whichwill be delivered to a purchaser to evidence his interest in the subdivisionand of the contracts and other agreements which a purchaser will be required toagree to or sign.
6. A true statement of the provisions, if any, thathave been made for public utilities in the proposed subdivision, includingwater, electricity, gas, telephone and sewerage facilities.
7. A true statement of the use for which the proposedsubdivision 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 conditionsin the subdivision supported by engineering reports showing the soil has been,or will be, prepared in accordance with the recommendations of a licensed civilengineer.
10. A true statement of the amount of indebtednesswhich is a lien upon the subdivision or any part thereof, and which wasincurred to pay for the construction of any on-site or off-site improvement, orany community or recreational facility, and the names and addresses of theholders of the indebtedness together with an indication of their relationship,if any, to the owner and subdivider.
11. A true statement or reasonable estimate, ifapplicable, of the amount of any indebtedness which has been or is proposed tobe incurred by an existing or proposed special district, entity, taxing area orassessment district, within the boundaries of which the subdivision, or anypart thereof, is located, and which is to pay for the construction orinstallation of any improvement or to furnish community or recreationalfacilities to the subdivision, and which amounts are to be obtained by advalorem tax or assessment, or by a special assessment or tax upon thesubdivision, or any part thereof.
12. A true statement describing any agriculturalactivities or conditions in the area which may adversely affect residents ofthe 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 agent orsubdivider may wish to present.
14. A completed application for a license in such formand containing such additional information as the Division may require on itsfiling forms.
15. The fees prescribed by this chapter.
(Added to NRS by 1971, 1405; A 1973, 1753; 1983,1679; 1997, 1061)
NRS
1. The Division shall, before issuing any licensepursuant to the provisions of this chapter to any person, fully investigate allinformation placed before it as is required pursuant to this chapter and, if inthe judgment of the Division it is necessary, inspect the property which is thesubject of the application. All reasonable expenses incurred by the Division incarrying out the investigation or inspection must be paid by the applicant andno license may be issued until those expenses have been fully paid.
2. Payments received by the Division pursuant to thissection must be deposited in the State Treasury for Credit to the Real EstateInvestigative Account, which is hereby created in the State General Fund. TheAdministrator shall use this Account to pay the expenses of agents andemployees 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 Accountmust be paid as other claims against the State are paid.
(Added to NRS by 1971, 1406; A 1973, 1754; 1979, 100;1991, 1752)
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1. The Administrator shall make an examination of anysubdivision, and shall, unless there are grounds for denial, issue to thesubdivider a property report authorizing the sale or lease, or the offer forsale or lease, in this state of the lots or parcels in the subdivision. Thereport must contain the data obtained in accordance with
2. The grounds for denial are:
(a) Failure to comply with any of the provisions inthis chapter or the rules and regulations of the Division pertaining thereto.
(b) That the sale or lease would constitutemisrepresentation to or deceit or fraud of the purchasers or lessees.
(c) Inability to deliver title or other interestcontracted for.
(d) Inability to demonstrate that adequate financialarrangements have been made for all off-site improvements included in theoffering.
(e) Inability to demonstrate that adequate financialarrangements have been made for any community, recreational or other facilitiesincluded in the offering.
(f) Failure to make a showing that the parcels can beused for the purpose for which they are offered.
(g) Failure to provide in the contract or other writingthe use or uses for which the parcels are offered, together with any covenantsor conditions relative thereto.
(h) Agreements or bylaws to provide for management orother services pertaining to common facilities in the offering, which fail tocomply with the regulations of the Division.
(i) Failure to demonstrate that adequate financialarrangements have been made for any guaranty or warranty included in theoffering.
3. If the Administrator finds that grounds for denialexist, he shall issue an order so stating to the owner or subdivider no laterthan 30 days after receipt of the information required to be filed by
4. If it appears to the Administrator that a statementof record, or any amendment thereto, is on its face incomplete or inaccurate inany material respect, the Administrator shall so advise the developer within areasonable time after the filing of the statement or the amendment, but beforethe date the statement or amendment would otherwise be effective. Thisnotification serves to suspend the effective date of the statement or theamendment until 30 days after the developer files such additional informationas the Administrator requires. Any developer, upon receipt of such notice, mayrequest a hearing, and the hearing must be held within 20 days after receipt ofthe request by the Administrator.
(Added to NRS by 1971, 1406; A 1973, 1755; 1981,1616; 1987, 1075; 1993, 1509)
1. A developers permit must be renewed annually bythe developer by filing an application with and paying the fee for renewal tothe Administrator. The application must be filed and the fee paid not laterthan 30 days before the date on which the permit expires. The application mustinclude any change that has occurred in the information previously provided tothe Administrator or in a property report provided to a prospective purchaserpursuant to the provisions of NRS 119.182.
2. The renewal is effective on the 30th day after thefiling of the application unless the Administrator:
(a) Denies the renewal pursuant to
(b) Approves the renewal on an earlier date.
(Added to NRS by 1987, 1075; A
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(Added to NRS by 1971, 1407)
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(Added to NRS by 1973, 1759)
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1. Until the Division has approved a written plan orthe methods proposed to be employed for the procurement of prospectivepurchasers, 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 freebenefits to be extended;
(c) The nature of promotional meetings involving anyperson or act described in this subsection;
(d) The contracts, agreements and other papers to be employedin the sale of the property; and
(e) Such other reasonable details as the Divisionrequires.
The writtenplan, or the methods proposed, may be filed as a part of the application under
2. Except through a broker, and before any offering ordisposition, pursuant to any license granted under this chapter, the name ofthe broker must be placed on file with the Division. Only that broker or hisreal estate salesman may offer or sell the subdivided property or any interesttherein. Before a salesman offers or sells any property or interest, thesalesmans name must be placed on file with the Division. The broker andsalesman, if any, shall:
(a) Complete an application in such a form andcontaining such reasonable information as the Division requires.
(b) Pay the fees prescribed in this chapter.
A broker anda salesman may represent one or more developers only after completing anapplication with respect to each developer in such a form and containing suchreasonable information as the Division requires and paying the fees prescribedin this chapter.
(Added to NRS by 1971, 1407; A 1973, 1756; 1977, 59;1983, 274, 412; 1985, 1408; 1987, 786)
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1. No person, except a registered representative ofthe developer or a broker or salesman who has complied with
2. Before engaging in any activities specified insubsection 1, each registered representative of the developer, under suchregulations as the Division may promulgate, shall:
(a) Complete an application in such form and containingsuch reasonable information as the Division may require.
(b) Pay the fees prescribed in this chapter.
Such aperson shall be known as a registered representative of the developer and maynot use the term licensee. Real estate brokers and salesmen licensed in theState of Nevada may function as registered representatives upon the completionof whatever application and the submission of whatever reasonable informationthe Division may prescribe, and upon the payment of the fees prescribed in thischapter.
(Added to NRS by 1983, 276)
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1. The information submitted pursuant to
2. The purchaser of any subdivision or any lot,parcel, unit or interest in any subdivision, not exempted under the provisionsof NRS 119.120 or
3. The notice of cancellation may be deliveredpersonally to the developer or sent by certified mail or telegram to thebusiness address of the developer.
4. The developer shall, within 15 days after receiptof the notice of cancellation, return all payments made by the purchaser.
(Added to NRS by 1983, 277; A 1983, 414; 1987, 301;
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(Added to NRS by 1979, 1507)
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(Added to NRS by 1997, 1964)
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(Added to NRS by
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1. A subdivision consisting of land situated in theState of Nevada or another state must not be advertised or offered for salewithin the State of Nevada until the advertising and offering is approved bythe Division. Each advertisement must contain the processing number assigned bythe Division.
2. Each application for approval of advertising mustbe accompanied by:
(a) A filing fee based on a schedule of feesestablished by the Division; and
(b) Fees for inspecting the advertising and theproperty in amounts established by the Division.
3. The Division shall render a decision upon anapplication for approval of an advertising or offering within 30 days from thedate the application is filed.
4. The Division shall adopt regulations to accomplishthe purpose of this section.
(Added to NRS by 1983, 278; A 1993, 2294;
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1. Registeredrepresentative permits shall be granted only to persons who:
(a) Bear a good reputation for honesty, truthfulnessand fair dealing;
(b) Are of good moral character;
(c) Are competent to transact the business of a registeredrepresentative in such a manner as to safeguard the interests of the public;and
(d) Meet such other reasonable requirements as theDivision may promulgate.
2. The Division shall establish rules and regulationsto carry out the provisions of this section.
(Added to NRS by 1973, 1759)
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1. Shall suspend or revoke the license or registrationof a broker, real estate salesman or registered representative who violates anyprovision of this chapter for such time as in the circumstances it considersjustified.
2. May deny the renewal of the license or registrationof a broker, real estate salesman or registered representative who violates anyprovision of this chapter.
(Added to NRS by 1971, 1408; A 1995, 376;
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(Added to NRS by 1971, 1408)
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(Added to NRS by 1971, 1409)
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1. Where any part of the statement of record, whenthat part became effective, contained an untrue statement of a material fact oromitted to state a material fact required to be stated therein, theAdministrator or any person acquiring a lot in the subdivision covered by thestatement of record from the developer or his agent during the period thestatement remained uncorrected (unless it is proved that at the time of theacquisition he knew of the untruth or omission) may sue the developer in anycourt of competent jurisdiction.
2. Any developer or agent, who sells or leases a lotin a subdivision:
(a) In violation of this chapter; or
(b) By means of a property report which contained anuntrue statement of a material fact or omitted to state a material factrequired to be stated therein,
may be suedby the Administrator or purchaser of the lot.
3. If a suit authorized under subsection 1 or 2 isbrought by the purchaser, he is entitled to recover such damages as representthe difference between the amount paid for the lot and the reasonable cost ofany improvements thereto, and the lesser of:
(a) The value thereof as of the time the suit wasbrought;
(b) The price at which the lot has been disposed of ina bona fide market transaction before suit; or
(c) The price at which the lot has been disposed ofafter suit in a bona fide market transaction but before judgment,
or torescission of the contract of sale and the refund of any consideration paid byhim.
4. If a suit authorized under subsection 1 or 2 isbrought by the Administrator, he may seek a declaration of the court that anyperson entitled to sue the developer or his agent under this section isentitled to the right of rescission and the refund of any consideration paid byhim.
5. Every person who becomes liable to make any paymentunder this section may recover contribution as in cases of contract from anyperson who, if sued separately, would have been liable to make the samepayment.
6. Reasonable attorneys fees may be awarded to theprevailing party in any action brought under this section. Any action torescind a contract of sale under this section must be brought within 1 yearafter the date of purchase or within 1 year after the date of the discovery ofthe misrepresentation giving rise to the action for rescission.
7. The provisions of this section are in addition toand not a substitute for any other right of a person to bring an action in anycourt for any act involved in the offering or sale of an interest in asubdivision or the right of the State to punish any person for any violation ofany law.
(Added to NRS by 1971, 1409; A 1973, 1758; 1987,1076)
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1. All sums paid or advanced by purchasers are placedin an escrow or other depository acceptable to the Division until the fee titlecontracted for is delivered to such purchaser by deed together with completerelease from all financial encumbrances; or
2. The fee title to the subdivision is placed in trustunder an agreement or trust acceptable to the Division until a proper releasefrom each blanket encumbrance, including all taxes, is obtained and titlecontracted for is delivered to such purchaser; or
3. Such blanket encumbrance contains provisionsevidencing the subordination or release of the lien of the holder or holders ofthe blanket encumbrance to the rights of those persons purchasing from thesubdivider, and further evidencing that the subdivider is able to securereleases from such blanket encumbrances with respect to the property upon fullpayment of the purchase price owed by such person.
(Added to NRS by 1971, 1409)
ENFORCEMENT OF CHAPTER; FEES
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(Added to NRS by 1971, 1410)
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1. Whenever the Division believes from evidencesatisfactory to it that any person has violated any order, regulation, license,permit, decision, demand or requirement, or any part or provision thereof, orany of the provisions of this chapter, it may bring an action in the name ofthe Division in the district court of the State of Nevada in the county whereinsuch person resides or maintains his principal place of business, or, if suchperson resides outside the State of Nevada, in any court with properjurisdiction within or outside the State of Nevada, against such person toenjoin such person from continuing such violation, engaging therein or doingany act or acts in furtherance thereof.
2. The Administrator in the name of the Division mayintervene in any action involving a subdivision or interest therein, within theprovisions of this chapter, if such intervention is necessary in the publicinterest and for the protection of purchasers.
(Added to NRS by 1973, 1760)
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1. The Administrator may issue orders directing personsto desist and refrain from engaging in activities for which they are notlicensed under this chapter or conducting activities in a manner not incompliance with the provisions of this chapter.
2. A person who has violated any of the provisions ofthis chapter shall not engage in any activity for which a license issuedpursuant to this chapter is required after receiving an order in writing fromthe Administrator directing him 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 30days after the petition has been filed. If the Administrator fails to hold ahearing within 30 days, or does not render a written decision within 45 daysafter the final hearing, the cease and desist order is rescinded.
5. If the decision of the Administrator after ahearing is against the person ordered to cease and desist, he may appeal thatdecision by filing, within 30 days after the date on which the decision wasissued, a petition in the district court for the county in which he conductedthe activity. The burden of proof in the appeal is on the appellant. The courtshall consider the decision of the Administrator for which the appeal is takenand is limited solely to a consideration and determination of the question ofwhether there has been an abuse of discretion on the part of the Administratorin making the decision.
6. In lieu of issuing an order to cease and desist, ifthe developer is conducting activities in a manner not in compliance with theprovisions of this chapter, the Administrator may enter into an agreement withthe developer in which the developer agrees to:
(a) Discontinue the activities that are not incompliance with this chapter;
(b) Pay all costs incurred by the Division ininvestigating the developers activities and conducting any necessary hearing;and
(c) Return to the purchasers any money or propertywhich he acquired through such activities.
The terms ofsuch an agreement are confidential unless violated by the developer.
(Added to NRS by 1973, 1760; A 1985, 1409; 1995, 376)
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(Added to NRS by 1973, 1760; A 1993, 1510)
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1. The Administrator may:
(a) Take testimony and other evidence concerning allmatters 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 ofwitnesses and the production of books and papers.
2. The Administrator shall classify as confidentialcertain records and information obtained by the Division when such matters aretrade secrets, including but not limited to lists of prospective purchasers andlists of purchasers with whom a sale has been consummated. This power issubject to the limitations and protective measures in
(Added to NRS by 1973, 1761)
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1. In any hearing in any part of the State the processissued by the Administrator extends to all parts of the State and may be servedby any person authorized to serve process of courts of record.
2. The person serving any such process shall receivesuch compensation as may be allowed by the Administrator, not to exceed the feesprescribed by law for similar service.
3. Each witness who appears by order of theAdministrator shall receive for his attendance the same fees and mileageallowed by law to a witness in civil cases, which amount shall be paid by theparty at whose request the witness is subpoenaed.
(Added to NRS by 1973, 1761)
NRS
1. The district court in the county in which anyhearing may be held has the power to compel the attendance of witnesses, thegiving of testimony and the production of books and papers as requested by anysubpoena 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 mayreport to the district court in the county in which the hearing is pending bypetition, setting forth:
(a) That due notice has been given of the time andplace of attendance of the witness or the production of the books and papers;
(b) That the witness has been subpoenaed in the mannerprescribed in this chapter; and
(c) That the witness has failed and refused to attendor produce the papers required by subpoena before the Administrator in thecause or proceeding named in the subpoena or has refused to answer questionspropounded to him in the course of such hearing, and asking an order of thecourt compelling the witness to attend and testify or produce the books orpapers before the Administrator.
3. The court, upon petition of the Administrator, mayenter an order directing the witness to appear before the court at a time andplace to be fixed by the court in such order, the time to be not more than 10days from the date of the order, and then and there show cause why he has notattended, testified or produced the books or papers before the Administrator. Acertified copy of the order shall be served upon the witness. If it appears tothe court that the subpoena was regularly issued by the Administrator, thecourt may thereupon enter an order that the witness appear before theAdministrator at the time and place fixed in the order and testify or producethe required books or papers, and upon failure to obey the order the witnessshall be dealt with as for contempt of court.
(Added to NRS by 1973, 1761)
NRS
1. The Administrator may, in any hearing before him,cause the depositions of witnesses to be taken in the manner prescribed by theNevada Rules of Civil Procedure for like depositions in civil actions in thedistrict court of this state, and to that end may compel the attendance ofwitnesses and the production of books and papers.
2. The clerk of the district court in the county inwhich any hearing is held by the Administrator shall, upon the application ofthe Administrator, issue commissions or letters rogatory to other states forthe taking of evidence therein for use in any proceedings before theAdministrator.
3. Any party to any hearing before the Administratorshall have the right to the attendance of witnesses in his behalf at suchhearing or upon deposition, as set forth in this section, upon making requesttherefor to the Administrator and designating the name and address of theperson or persons sought to be subpoenaed.
(Added to NRS by 1973, 1762)
1. Subject to the provisions of this chapter, theDivision shall collect the following fees at such times and upon suchconditions as it may provide by regulation:
For each annualregistered representatives license to represent a developer $85
For each transfer ofa registered representatives license to represent a developer 30
For each penalty fora late renewal of a registered representatives license.... 40
For each applicationfor a developers request for an exemption from any provision of this chapter 275
For each applicationfor renewal of an exemption from any provision of this chapter 275
For each developerspermit per subdivision...................................................... 500
For each developerstemporary permit for each subdivision........................... 275
For each renewal of adevelopers permit............................................................. 500
For each developerspartial registration pursuant to NRS 119.121................. 275
For each amendment toa developers permit...................................................... 150
The $500 fee for a developers permit per subdivision doesnot apply to any subdivision having 34 or fewer lots, parcels, interests orunits.
2. At the time of the original filing, each developershall pay an additional $5 for each lot, parcel, interest or unit in any onesubdivision in excess of 50, but not exceeding 250 such lots, parcels,interests or units; $4 for 251 through 500 lots, parcels, interests or units inany one subdivision; $3 for 501 through 750 lots, parcels, interests or unitsin any one subdivision; and $2.50 for all lots, parcels, interests or units inexcess 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 ofthe subdivision, and the fee per lot, parcel, interest or unit is onlyapplicable to those lots, parcels, interests or units. The units must bedesignated 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 thedeveloper determines to offer additional lots, parcels, interests or units, itshall so certify to the Division and pay the additional fee therefor.
3. With the exception of the fees for a registeredrepresentatives license or transfer, the fees enumerated in this section mustbe reduced by the Administrator at such times as, in his judgment, he considersa reduction equitable in relation to the necessary costs of carrying out theadministration and enforcement of the provisions of this chapter.
(Added to NRS by 1973, 1762; A 1981, 1618; 1985,1410; 1987, 1077; 1993, 2294;
NRS
1. Refuse to issue a license, permit or registrationto 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 personowes to the Division.
(Added to NRS by
NRS
1. The developer obtained the property report, permit,partial registration, exemption or license by false or fraudulentrepresentation; or
2. The developer violates any of the terms orconditions of the property report, permit, partial registration, exemption orlicense, the provisions of this chapter or the regulations adopted pursuantthereto.
TheAdministrator shall not impose a fine of more than $5,000 pursuant to thissection.
(Added to NRS by 1995, 376; A
NRS
1. Prohibit the Administrator or Division frominitiating or continuing an investigation of, or action or disciplinaryproceeding against, the developer, broker, real estate salesman or registeredrepresentative as authorized pursuant to the provisions of this chapter or theregulations adopted pursuant thereto; or
2. Prevent the imposition or collection of any fine orpenalty authorized pursuant to the provisions of this chapter or theregulations adopted pursuant thereto against the developer, broker, real estatesalesman or registered representative.
(Added to NRS by
NRS
1. In addition to any other remedy or penalty, theAdministrator may impose an administrative fine against any person whoknowingly:
(a) Engages or offers to engage in any activity forwhich a license, permit or registration or any type of authorization isrequired pursuant to this chapter, or any regulation adopted pursuant thereto,if the person does not hold the required license, permit or registration or hasnot been given the required authorization; or
(b) Assists or offers to assist another person tocommit a violation described in paragraph (a).
2. If the Administrator imposes an administrative fineagainst a person pursuant to this section, the amount of the administrativefine may not exceed the amount of any gain or economic benefit that the personderived from the violation or $5,000, whichever amount is greater.
3. In determining the appropriate amount of theadministrative fine, the Administrator shall consider:
(a) The severity of the violation and the degree of anyharm that the violation caused to other persons;
(b) The nature and amount of any gain or economicbenefit that the person derived from the violation;
(c) The persons history or record of other violations;and
(d) Any other facts or circumstances that theAdministrator deems to be relevant.
4. Before the Administrator may impose theadministrative fine, the Administrator must provide the person with notice andan opportunity to be heard.
5. The person is entitled to judicial review of thedecision of the Administrator in the manner provided by
6. The provisions of this section do not apply to aperson who engages or offers to engage in activities within the purview of thischapter if:
(a) A specific statute exempts the person fromcomplying with the provisions of this chapter with regard to those activities;and
(b) The person is acting in accordance with theexemption while engaging or offering to engage in those activities.
(Added to NRS by
NRS
1. Except as otherwise provided in subsection 2, aperson violating a provision of this chapter, if a natural person, is guilty ofa gross misdemeanor, and if a copartnership, association or corporation, shallbe 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 anysubdivision or any lot, parcel, unit or interest in any subdivision by means ofintentional misrepresentation, deceit or fraud; or
(b) Obtains or attempts to obtain a license under thischapter by means of intentional misrepresentation, deceit or fraud,
is guilty ofa category C felony and shall be punished as provided in
3. An officer or agent of a corporation, or member oragent of a copartnership or association, who personally participates in or isan accessory to any violation of this chapter by the copartnership, associationor corporation, is subject to the penalties prescribed for natural persons inthis section.
4. This section does not release any person,corporation, association or copartnership from civil liability or criminalprosecution under any other law of this state.
5. Upon conviction the court may revoke the license ofthe person so convicted, in addition to imposing the other penalties providedin this section.
(Added to NRS by 1973, 1763; A 1979, 1459; 1995,1243)
NRS
(Added to NRS by 1977, 1515)
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