Existing law provides for the licensure and regulation of title insurers, title agents and escrow officers by the Commissioner of Insurance. (Chapter 692A of NRS) Existing law prohibits a title insurer or underwritten title company from making certain payments to persons associated with real property as inducement or compensation for the placing of an order for a title insurance policy or for the performance of escrow services or other service by the insurer or company. (NRS 686A.130)
Section 1 of this bill prohibits a title insurer, title agent or escrow officer, with certain exceptions, from: (1) producing any advertisement for a real estate facilitator or paying any portion of the costs of any advertising or marketing engaged in by a real estate facilitator; (2) paying any portion of the ordinary business costs of a real estate facilitator; or (3) leasing or using office space in the office of a real estate facilitator or otherwise sharing office space with a real estate facilitator. Section 1 authorizes a title insurer, title agent or escrow officer to engage in certain advertising associated with a real estate facilitator under certain circumstances. Section 1 authorizes the Commissioner of Insurance to impose an administrative fine for a violation of the prohibitions set forth in section 1 and to suspend or revoke the license of an escrow officer who commits such a violation. Section 1 defines “real estate facilitator” to mean a real estate broker, real estate broker-salesperson, real estate salesperson, owner-developer or any other person who provides services in connection with a real estate transaction in this State.
Existing law provides for the licensure and regulation of real estate brokers, real estate broker-salespersons, real estate salespersons and the registration and regulation of owner-developers by the Real Estate Division of the Department of Business and Industry and the Real Estate Commission. (Chapter 645 of NRS) Section 2 of this bill prohibits a real estate broker, real estate broker-salesperson, real estate salesperson or owner-developer from: (1) soliciting or accepting certain payments for advertising or ordinary business costs from a title insurer, title agent or escrow officer; or (2) leasing or using office space in the office of a title insurer, title agent or escrow officer or otherwise sharing office space with a title insurer, title agent or escrow officer. Section 2 authorizes the Commission to impose an administrative fine for a violation of the prohibitions set forth in section 2 and to suspend or revoke the license or registration of a real estate broker, real estate broker-salesperson, real estate salesperson or owner-developer who commits such a violation.