NV Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Nevada Real Estate Division

The state agency within the Department of Business and Industry that licenses real estate salespersons, brokers, and property managers and enforces Nevada real estate law under the Commission's direction.

Nevada Real Estate Commission

The policymaking and disciplinary body that adopts regulations, sets education requirements, and may suspend or revoke licenses or impose fines on Nevada licensees.

Nevada pre-license hours

Nevada requires 90 hours of approved pre-license instruction before the salesperson exam and 120 hours for the broker exam, followed by a post-license course.

Commingling of trust funds

Mixing client or transaction money with a broker's personal or operating funds, which Nevada prohibits; trust money must stay in a separate trust account open to Division inspection.

OLD CAR duties

The six fiduciary duties a Nevada agent owes a client: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care, owed throughout the agency relationship.

Dual agency consent

Representing both buyer and seller in the same transaction; Nevada requires the informed written consent of all parties before dual agency begins, and advocacy for either side is barred.

Confidentiality after termination

A licensee's duty to keep a former client's confidential information secret continues after the agency relationship ends and covers information learned during the representation.

Statute of frauds

Nevada requires real estate purchase agreements, deeds, and leases longer than one year to be in writing and signed by the party to be charged before they are enforceable.

Counteroffer effect

A counteroffer rejects and terminates the original offer, so the original offeror cannot later accept the first offer unless the other party revives it.

Earnest money deposit

Money a buyer deposits to show good faith; it is not required to create a binding contract but is held in escrow and usually credited to the buyer at closing.

Tenancy in common

Co-ownership with separate, freely transferable shares that may be unequal and carry no right of survivorship; a deceased owner's share passes to that owner's heirs or devisees.

Joint tenancy survivorship

Co-ownership requiring the four unities of time, title, interest, and possession; when one joint tenant dies, that interest automatically passes to the surviving joint tenants.

Nevada community property

Nevada is a community property state, so property acquired by a married couple during marriage is generally owned equally by both spouses, apart from separate property.

Prior appropriation water rights

Nevada's water doctrine granting rights by permit with a priority date, so the earliest appropriator has the first claim on available water in times of shortage.

General warranty deed

A deed in which the grantor warrants title against all defects, including those created by earlier owners, and promises to defend the grantee's title.

Quitclaim deed

A deed that conveys whatever interest the grantor may hold with no warranty of title, so the grantee takes the property at their own risk.

Delivery and acceptance

A deed transfers title only when the grantor delivers it intending to convey and the grantee accepts; recording gives notice but is not what makes the transfer effective.

Owner's title policy

A one-time premium policy protecting the owner against covered title defects existing at closing, while a lender's policy protects only the lender's declining interest.

Loan-to-value ratio

The loan amount divided by the lesser of the purchase price or appraised value, expressed as a percentage; higher ratios usually require mortgage insurance.

Discount points

Prepaid interest charged at closing; one point equals one percent of the loan amount, and points paid to lower the note rate are discount points.

Deed of trust parties

In Nevada a deed of trust has three parties: the trustor (borrower), the beneficiary (lender), and the trustee, who holds title and conducts nonjudicial foreclosure on default.

Gross rent multiplier

A valuation tool for rental property: divide sale price by monthly rent to derive the multiplier, then multiply the subject's monthly rent by that multiplier.

Capitalization rate

Net operating income divided by property value; an appraiser estimates value by dividing a property's net operating income by a market-derived capitalization rate.

Comparable adjustment direction

In the sales comparison approach, subtract value when a comparable is superior to the subject and add value when the comparable is inferior, always adjusting toward the subject.

Nevada security deposit limit

For residential rentals in Nevada, the deposit may not exceed three months' rent, and the landlord must return it with an itemized accounting within 30 days.

HOA superpriority lien

Nevada gives a common-interest community a superpriority lien for up to nine months of delinquent assessments that can survive foreclosure of a first deed of trust.

Property management permit

An additional authority a Nevada broker must obtain from the Division in order to manage rental property for another person for compensation.

Seller's Real Property Disclosure

Nevada's form by which sellers of most one-to-four unit residential properties disclose known defects and conditions to buyers before the purchase agreement is signed.

Lead-based paint disclosure

Federal law requiring sellers and landlords of housing built before 1978 to disclose known lead-based paint hazards and give buyers the EPA pamphlet before contracting.

Agency disclosure timing

Nevada licensees must deliver the 'Duties Owed by a Nevada Real Estate Licensee' disclosure at the first substantive contact and before the client signs any document.

Acreage conversions

One acre equals 43,560 square feet, one square mile equals 640 acres, and one mile equals 5,280 feet; these convert land descriptions into priceable units.

Proration daily rate

To prorate an annual item, divide the yearly amount by 365 for a daily rate, then charge the seller for days owned through closing and the buyer afterward.