Brokerage Agreement

The real estate profession has become increasingly based in legalities. While a handshake can signify an agreement, the contract is the foundation of the real estate transaction today.

With the increased focus on legal issues, NVAR provides members services in the legal arena. Various articles on current and hot legal topics are provided through the weekly NVAR Online News. In addition, the Legal Information Line is available to members.

There are many real estate related questions that arise often. These FAQs (Frequently Asked Questions) by topic are provided to assist you in finding quick answers.

Brokerage Agreement

Q: I am a broker.  My salesperson listed a property owned by two individuals.  They both signed the listing agreement.  The salesperson failed to notify one of the owners of an offer.  However, the other owner signed an acceptance of the offer.  The owner that was unaware of the pending offer subsequently sold his portion of the property to the owner who had signed the acceptance.  Am I in violation of any statute?

A: Yes.  You failed to properly supervise your agent by not following up on his/her presenting the offer to both owners.  You and your agent did not act with the degree of care that a reasonably prudent real estate licensee would exercise which is measured by the degree of knowledge required to be obtained by a real estate licensee.  NRS 645.252 (2); 645.254 (3) and 645.257 (1) & (3).