Other financial accounts: Investigation and audit involving insolvency of broker or enforcement by Division; regulations governing scope of audit; grounds for disciplinary action.
1. The Division may investigate and audit all financial accounts related to the business of a real estate broker, regardless of whether it is a trust account, if the Division has reasonable cause to believe that the broker is using or has used the account to operate or carry on the broker’s business and the Division:
(a) Has reasonable cause to believe or has received a credible complaint that the real estate broker is insolvent or is in any financial condition or has engaged in any financial practice which creates a substantial risk of insolvency; or
(b) Determines that the investigation and audit are reasonably necessary to assist the Division in administering or enforcing any other provision of this chapter or any other statute that the Division is charged with administering or enforcing.
2. The Commission shall adopt regulations prescribing the scope of an audit conducted pursuant to this section.
3. The Commission may take action pursuant to NRS 645.630 against:
(a) Any real estate broker or other licensee who knowingly fails to cooperate or comply with or knowingly impedes or interferes with any investigation or audit conducted by the Division pursuant to this section; or
(b) Any real estate broker who is insolvent or who is in any financial condition or has engaged in any financial practice which creates a substantial risk of insolvency.
4. As used in this section, “insolvent” or “insolvency” means a condition in which a real estate broker is unable to meet the liabilities of the broker’s business as those liabilities become due in the regular course of the broker’s business and which creates a substantial risk of harm to the public or a consumer.
Last modified: February 27, 2006