License Renewal Disclosures
A licensee or property manager is required to notify the Nevada Real Estate Division (the “Division”) in writing if he or she is convicted of, or enters a plea of guilty or no contest to, any felony relating to the practice of the licensee or any crime involving fraud, deceit, misrepresentation, or moral turpitude NRS 645.615. The penalties for failure to report this type of conduct to the Division can be severe. Pursuant to NRS 645.630 the Nevada Real Estate Commission may impose an administrative fine of not more than $10,000 for each violation or suspend, revoke, or deny the renewal of or place conditions upon a license. Further, the Commission may impose any combination of those actions. NRS 645.630; NRS 645.633(1)(d). Because of the serious consequences to your livelihood, agents should carefully consider the importance of making the necessary disclosures.
Felony vs. misdemeanor. In Nevada, a felony is any crime that may be punishable by death or incarceration in state prison. The state uses five categories to differentiate felony-level crimes ranging from Category A, which is applied to what are considered the most serious crimes, to Category E, which is considered the least serious.
Category C felonies can include battery without a weapon (but causing substantial injury), domestic violence, stalking, and violation of an extended court order for the protection of a child. Although someone may be charged with a felony, during the course of plea negotiations the case can be reduced to a misdemeanor. Nevada also has a category of crimes known as “gross misdemeanors.” A gross misdemeanor crime is more serious and may be tried in either a jury or bench trial. The maximum sentence for gross misdemeanor can be either 364 days in jail, $2000 in fines or a combination of the two.
The “nolo contendere” plea. A defendant may plead not guilty, guilty, guilty but mentally ill, or, with the consent of the court, nolo contendre (known as a “no contest” plea). As with guilty pleas, a defendant who pleads no contest does not fight the charges; however, he or she is not making an admission of guilt. Licensees need to understand that with regard to the laws pertaining to disclosure to the Division, the no-contest plea must also be reported.
Crimes of moral turpitude. NRS 645 does not contain a definition of crimes that fall within this category. However, there is a definition found in the Nevada Administrative Code relating to the education system. NAC 388C indicates that “crime involving moral turpitude” includes offenses of a violent nature, unlawful possession of firearms, abuse, neglect, or exploitation of a child or an older person, arson, bribery, and burglary. However, the category also includes various theft offenses as well as possession of a controlled substance. In Golde v. Fox, 98 Cal.App.3d 167(1979), the California Court of Appeal discussed the purpose of the moral turpitude standard. It noted the standard was to ensure that the public, the courts, and the professions are protected against unsuitable practitioners. As a result, it upheld the Real Estate Commissioner’s finding that restriction of a salesman’s license was appropriate after the agent pled guilty to possession of marijuana for sale as constituting a violation of moral turpitude.
Preprosecution diversion program. In certain instances, you may be eligible for a pre-prosecution diversion program, which is intended to promote rehabilitation through educational programs, support group attendance, anger management therapy, or counseling. The court may impose sanctions which include community service, imposition of a curfew, and restitution. NRS 174.031. If the court ultimately determines that a defendant has successfully completed the terms and conditions of a pre-prosecution diversion program, the court must discharge the defendant and dismissed the indictment, information, complaint, or citation, and the records are sealed. NRS 174.033; NRS 174.034. Under such circumstances, since the activity did not result in a conviction or plea, the matter would not be reportable to the Division. As a result, licensees should always discuss this alternative with their attorney in light of the impact it may have on their license renewal.
The attorney at Drizin Law is providing this information for educational purposes only. It should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. This information is based on general principles of Nevada law at the time it was created and you should be aware laws frequently change. Moreover, the laws affecting you may differ depending on the circumstances. You should consult with a qualified attorney in your own state or jurisdiction concerning your particular situation. Review of this information does not create an attorney-client relationship.
Lee A. Drizin, Esq. is the founder of Drizin Law and has practiced in Las Vegas for over three decades. His work focuses on probate, estate planning, trusts, and guardianship, with particular experience handling contested probate and administration matters. A UNLV graduate with a Master of Laws in Taxation from Boston University, Lee has built his career helping Nevada families navigate some of the most difficult times in their lives.
