Nevada Real Estate Broker Exam — All Questions

A buyer holds a final Nevada court judgment against a licensee for fraud in a transaction requiring a license, has executed on it and recovered nothing, and now petitions the Real Estate Education, Research and Recovery Fund. Under NRS 645.844, the Fund may pay at most:

• a.$25,000 per judgment, with $100,000 as the Fund's total liability for any one licensee✓
• b.$10,000 per judgment, with $50,000 as the Fund's total liability for any one licensee
• c.$50,000 per judgment, with $250,000 as the Fund's total liability for any one licensee
• d.$75,000 per judgment, with $150,000 as the Fund's total liability for any one licensee

NRS 645.844(1) sets both numbers in one sentence: the petitioner may recover "the amount of the unpaid actual damages included in the judgment, but not more than $25,000 per judgment," and "[t]he liability of the Fund does not exceed $100,000 for any person licensed pursuant to this chapter," whether that licensee is a natural person or an entity. Two ceilings therefore apply at once, and a claimant with a larger judgment simply does not collect the excess from the Fund. Each of the other pairings moves one or both figures. Note also what the statute demands before payment: a judgment on grounds of fraud, misrepresentation or deceit; a writ of execution returned unsatisfied; reasonable searches for the debtor's assets; and a petition filed no more than one year after all proceedings, including appeals, have ended. A licensee cannot recover from the Fund for a transaction in which he or she acted as a licensee, and the section does not apply to owner-developers.

The Real Estate Commission finds that a Nevada broker committed three separate violations of NRS Chapter 645 in one disciplinary proceeding. Under NRS 645.630, the largest administrative fine the Commission may impose is:

• a.$5,000, because NRS 645.630 caps the fine at $5,000 for each violation committed
• b.$30,000, because NRS 645.630 caps the fine at $10,000 for each violation committed✓
• c.$10,000, because NRS 645.630 caps the fine at $10,000 for the entire proceeding
• d.$50,000, because NRS 645.630 caps the fine at $50,000 for the entire proceeding

NRS 645.630(1) authorizes the Commission to "require a licensee, property manager or owner-developer to pay an administrative fine of not more than $10,000 for each violation he or she commits." The ceiling is per violation, not per hearing, so three violations expose the broker to as much as $30,000. The three other answers each misread the unit the statute uses: two treat the ceiling as a single figure for the whole proceeding, and one substitutes a $5,000 per-violation ceiling that the section does not contain. The fine is also not the Commission's only tool - the same subsection lets it suspend, revoke, deny renewal of or place conditions on the license, permit or registration, or combine those actions with a fine. Under NRS 645.630(2), an order imposing discipline and the findings of fact and conclusions of law supporting it are public records.