Legal Question in Real Estate Law in Nevada

when purchasing a home, is it right to have the real estate agent tell us to wire the closing money into their company account

Asked on 2/16/15, 5:28 pm

1 Answer from Attorneys

Paul Malikowski Malikowski Law Offices, Ltd.

Proper accounting for trust funds and adequate record keeping are basic to the

management of a brokerage office and the legal responsibility of the broker. This

booklet will assist real estate brokers to understand the statutory and regulatory

requirements of Nevada’s license law for the handling of trust funds.

Failure of a real estate broker to manage properly or account for “funds

belonging to others” can result in license revocation whether that failure is one of

ignorance or negligence, whether intentional or unintentional. A broker’s

fiduciary responsibility makes the maintenance of adequate records necessary.

The broker is personally responsible for the supervision and maintenance of the

trust fund accounts and records. Neither delegation of duties, ignorance of daily

brokerage or management activities, nor failure to establish internal control

relieves the broker of the responsibility and potential liability that can result from

a failure to account adequately for money or maintain records.

Inadequate records or failure to maintain control of the trust funds can result in

internal theft, commingling of funds, misuse of trust funds, litigation and/or

disciplinary action. The use of an outside record keeping or accounting service

does not eliminate the need for broker supervision or substitute for the broker’s

fiduciary responsibility.

Your attorney can explain further.

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Answered on 2/17/15, 1:36 pm

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