Commercial Real Estate Brokers' Rights and Responsibilities

by Legal S. Real Estate Attorneys in CA and NV

In Nevada, real estate brokers have additional rights and responsibilities in transactions involving commercial real estate.

In Las Vegas, real estate brokers have additional rights and responsibilities.
Provisions of the Nevada Revised Statutes give brokers in these transactions additional legal protections regarding the commissions earned from the sale of commercial real estate. Talk to a Real Estate Attorney in Nevada for help with these matters.

However, the statutes also impose specific requirements and procedures of these brokers in order to protect and enforce those protections.

In 1999 the Nevada legislature enacted Senate Bill 452, the purpose of which was to prevent real estate brokers in commercial real estate sales transactions from being taken advantage of by commercial sellers, who had a tendency to shortchange their brokers on sales commissions at the close of escrow.

The new statutory provisions passed by the state legislature sought to address this issue by creating a claim for commission that brokers would be able to enforce prior to the close of escrow.
What additional duties and obligations are imposed on Las Vegasreal estate brokers?

Once a Las Vegas real estate broker has performed all of their obligations under the brokerage agreement, they have earned the commission for that transaction.

In the context of a commercial real estate sale, NRS 645.8761 establishes that the broker has a claim for said commission upon the “owner’s net proceeds” (being the profits the seller expects to receive as a result of the sale).

However, the statute specifically notes that the claim is held by the broker named in the brokerage agreement only, and not by any agent or employee of the broker, and that no claims by any third party may be brought under the statute.

If a broker wishes to enforce a claim for commission, he or she must act within 7 days after the commission has been earned, or else the claim is forfeit (NRS 645.8765).

The broker enforces the claim by providing a written notice to the seller of the property listed on the brokerage agreement and to the escrow agent closing the transaction (unless the escrow agent’s identity is unknown to the broker).

The written notice must include all of the following information required under NRS 645.8771:

The name of the owner of the commercial real estate.
The name of the person who executed the brokerage agreement (if different from the owner)
The name, business name, and license number of the real estate broker
The amount of money being claimed by the broker
A detailed description of the commercial real estate involved in the transaction
A copy of the brokerage agreement
Verification by the oath of the real estate broker.
Finally, the claim must also be verified under oath by the real estate broker and include an acknowledgement by the real estate broker.