NV Real Estate key terms

The state agency that administers Nevada real estate licensing law: it issues and renews licenses, investigates complaints, audits trust accounts, and enforces the regulations adopted by the Real Estate Commission.

A governor-appointed board of industry members and a public member that adopts regulations, sets licensing and education requirements, and hears disciplinary cases brought by the Division.

A licensee who may independently negotiate real estate transactions, supervise salespersons and broker-salespersons, hold trust funds, and operate a brokerage; a broker license is required to own or manage an office.

A licensee who has met the education and experience requirements for a broker license but chooses to work under another broker's supervision instead of operating an independent brokerage.

An entry-level licensee who may perform brokerage activities only while associated with and supervised by a licensed broker, and who may not accept compensation directly from clients.

A fund maintained by the Division from license fees that can pay a consumer who wins a court judgment against a licensee for fraud or misrepresentation when the licensee cannot pay; the licensee must repay the fund.

A client is a party the licensee represents and to whom fiduciary duties are owed; a customer is a party the licensee assists without representation, owed honesty and fairness but not loyalty or confidentiality.

The legal duties an agent owes a client, typically loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, and accounting for money and property, which put the client's interests ahead of the agent's.

Nevada's term for a broker who, with the written consent of all parties, represents both sides of a transaction; the broker must treat everyone fairly and may not disclose one party's confidential information to the other.

Facts learned about a client that could harm the client's bargaining position if revealed, such as motivation to sell, price flexibility, or financial circumstances; it may not be disclosed without permission even after the relationship ends.

A written contract in which a buyer engages a broker to represent the buyer for a set period, defines the duties owed, and usually states how and when the broker will be paid.

A listing agreement giving one broker the right to represent the seller and to receive a commission no matter who procures the buyer, including the seller personally.

A written statement a Nevada licensee must give a party before that party signs an agreement, explaining the duties owed, the types of representation available, and the possibility of an intermediary.

The two required elements of a contract: one party proposes definite terms, and the other agrees to those terms exactly, creating a binding agreement when acceptance is communicated.

A response that changes or adds terms to an offer, which rejects the original offer and puts a new offer on the table that the other party may accept or reject.

A contract condition that must be satisfied before a party is obligated to complete the deal, such as loan approval, inspection, or appraisal; if it fails, the party may cancel and recover earnest money.

The rule requiring certain agreements, including real estate purchase contracts and leases longer than one year, to be in writing and signed by the party to be charged to be enforceable.

A deposit a buyer gives to show good faith, usually held in escrow and credited to the buyer at closing or paid to the seller if the buyer breaches without a lawful excuse.

A Nevada-required written disclosure in which a residential seller reports known defects and conditions in the property; the buyer may generally cancel within a short period after receiving it.

The bundle of association documents, including budget, reserves, minutes, covenants, and financial statements, that an owner must give a resale buyer, who then has a limited right to cancel the purchase.

A development in which owners share ownership or use of common areas through a mandatory association, such as a condominium, planned community, or cooperative.

Money a tenant pays a landlord to cover unpaid rent or damage beyond normal wear; Nevada requires its return, with an itemized statement of any deductions, within 30 days after the tenancy ends.

A three-party security instrument used in Nevada that conveys title to a trustee to hold for the lender until the loan is repaid; it allows nonjudicial foreclosure through a trustee's sale.

The borrower's written promise to repay a loan on stated terms, including the interest rate, payment amount, and due date; it is the evidence of the debt, separate from the security instrument.

The loan amount divided by the property's appraised value or sale price, expressed as a percentage; higher ratios mean more lender risk and usually require mortgage insurance.

The four parts of a typical monthly housing payment: principal, interest, property taxes, and homeowner's insurance; lenders use this figure to qualify borrowers.

A fee paid to the lender at closing to lower the interest rate, with one point equal to one percent of the loan amount; each point typically reduces the rate slightly.

A neutral third party that holds money and documents and carries out the parties' written instructions, releasing funds and recording documents only when all conditions are met.

A one-time policy that protects the lender or owner against losses from defects in title, liens, or claims that existed before closing but were not found in the title search.

A deed that transfers whatever interest the grantor may have without any warranty of ownership, offering the grantee the least protection of the common deed forms.

A statutory claim filed by contractors, laborers, or suppliers who were not paid for work or materials on a property; it attaches to the property and can be foreclosed.

A right to use another person's land for a limited purpose, such as a driveway, utility line, or access, without owning the land itself.

Any claim, lien, easement, restriction, or other burden on a property that affects its use or reduces its value and may limit how title can be transferred.

A rule followed in Nevada under which property acquired by either spouse during marriage through community effort is generally owned equally by both, while separate property stays with its owner.

The reasonably probable, legally permissible, physically possible, and financially feasible use of a property that produces the greatest value; it underpins the appraisal of the site.

An appraisal method that estimates value by comparing the subject to recently sold, similar properties, adjusting the comparables for differences in size, condition, location, and features.

A quick valuation tool calculated by dividing a property's price or value by its gross annual rent; it is used for income properties and compared against similar properties.

Dividing an expense or income item between buyer and seller at closing based on the number of days each owns the property during the period the item covers.