FORM OR NO FORM: THAT IS THE QUESTION!

A question has often been asked as to whether a licensee who does nothing more than referring a client to another licensee is required to execute a Duties Owed form. The Nevada Real Estate Division recently issued an advisory opinion addressing this issue (Advisory Opinion 15-01). According to the Division, the referring agent is not required to execute a Duties Owed form since he/she is not going to be performing any services on behalf of the client after the referral. NRS 645.252(3).

It makes perfect sense that the form of not being required since there is no representation of the client in a specific transaction. If you don’t represent the party, then you do not owe them any duty. You are merely making a referral and not acting as an agent.

PRACTICE POINTER: Real Estate Attorney Lee Drizin warns agents to be careful about another real estate agent insisting that you must execute the Duties Owed form anyway. The result is that you could be giving the false impression that the referring agent represents the client and may have just created a basis for asserting liability against you!

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