Brokers: Bond required; amount, form and conditions of bond; reduction in amount of bond; undertaking on bond; persons authorized to bring action on bond.
1. Before a person may be licensed as a broker, he must procure and file with the Department a good and sufficient bond in the amount of $50,000 with a corporate surety thereon licensed to do business within the State of Nevada, approved as to form by the Attorney General, and conditioned that the applicant shall conduct his business as a broker without breaching a consumer contract or engaging in a deceptive trade practice, fraud or fraudulent representation, and without violation of the provisions of this chapter. The Department may, by agreement with any broker who has been licensed as a broker for 5 years or more, allow a reduction in the amount of the bond if his business has been conducted satisfactorily for the preceding 5 years, but no bond may be in an amount less than $5,000.
2. The bond must be continuous in form and the total aggregate liability on the bond must be limited to the payment of the total amount of the bond.
3. The undertaking on the bond includes any breach of a consumer contract, deceptive trade practice, fraud, fraudulent representation or violation of any of the provisions of this chapter by any employee of the licensed broker who acts on behalf of the broker and within the scope of his employment.
4. The bond must provide that any person injured by the action of the broker or his employee in violation of any provision of this chapter may bring an action on the bond.
Last modified: February 25, 2006