Existing law provides for the licensure and regulation of real estate brokers, real estate broker-salespersons and real estate salespersons and for the permitting and regulation of property managers by the Real Estate Division of the Department of Business and Industry. (Chapter 645 of NRS) With certain exceptions, existing law prohibits a person from acting as a property manager in this State unless the person has obtained from the Division a license as a real estate broker, real estate broker-salesperson or real estate salesperson and a permit to engage in property management. (NRS 645.230) Existing law defines “property management” to mean, in general, the physical, administrative or financial maintenance and management of real property for valuable consideration pursuant to a property management agreement. (NRS 645.019) Section 6 of this bill revises that definition to include the performance of such activities when engaged in by a person in the regular course of providing four or more dwelling units located on real property owned by the person for occupancy by others. Section 3 of this bill designates a person who provides four or more dwelling units located on real property owned by the person for occupancy by others and who engages in property management with respect to those properties as a “landlord property manager.” Section 8 of this bill prohibits a person from acting as a landlord property manager unless the person has obtained from the Division a permit to engage in property management. Existing law authorizes only a person who is licensed as a real estate broker, real estate broker-salesperson or real estate salesperson to apply for and be issued a permit to engage in property management. (NRS 645.6052) Section 10 of this bill authorizes a person who provides four or more dwelling units located on real property owned by the person for occupancy by others to apply for and be issued a permit to engage in property management. Section 10 requires such a person who wishes to obtain a permit to engage in property management to file and maintain a surety bond and meet certain other requirements. Under existing law, an owner or lessor of property who engages in property management or conducts certain activities with respect to the property in the regular course of or as an incident to the management of or investment in the property is exempt from the provisions of existing law governing property managers and other persons regulated by the Division. (NRS 645.0445) Section 7 of this bill excludes landlord property managers from that exemption. Sections 9, 11-15 and 17-20 of this bill add references to a landlord property manager and a permit to engage in property management to certain provisions of existing law governing property managers and other persons licensed by the Division and licenses issued by the Division so that landlord property managers are treated the same as property managers and licensees for certain purposes, including, without limitation, for the purposes of certain investigations and the imposition of certain disciplinary action. Existing law authorizes the Commission to take certain disciplinary action against a person who holds a permit to engage in property management and who takes certain action in connection with a property for which the person has obtained a property management agreement. (NRS 645.633) Section 16 of this bill specifies that such provisions apply only to a licensed real estate broker, real estate broker-salesperson or real estate salesperson who holds a permit to engage in property management. Existing law exempts from the provisions of existing law providing for the registration and regulation of asset management companies and the permitting and regulation of asset managers a person or broker who has a current permit to engage in property management. (NRS 645H.160) Section 20 of this bill specifies that the exemption applies only to a licensed real estate broker, real estate broker-salesperson or real estate salesperson who holds a permit to engage in property management. Sections 2-4 of this bill define words and terms for the purposes of this bill. Section 5 of this bill makes a conforming change to indicate the proper placement of sections 2-4 in the Nevada Revised Statutes.

Statutes affected:
As Introduced: 645.0005, 645.019, 645.0445, 645.230, 645.358, 645.6052, 645.6058, 645.610, 645.615, 645.620, 645.630, 645.633, 645.648, 645.675, 645.740, 645.760, 645H.160
BDR: 645.0005, 645.019, 645.0445, 645.230, 645.358, 645.6052, 645.6058, 645.610, 645.615, 645.620, 645.630, 645.633, 645.648, 645.675, 645.740, 645.760, 645H.160