“I need a contractor’s license for that?!” – Requirements real estate brokers should be aware of.
Laws governing real estate brokers are contained in NRS Chapter 645. There, you can find statutes and regulations on everything from real estate brokers versus real estate salespersons to brokerage agreements for sales of residential and commercial real estate.
Commonly overlooked, however, are the laws in NRS Chapter 624. Although these laws apply to contractors, they may also apply to real estate brokers and real estate salespersons in certain circumstances.
When representing a client, a real estate broker or salesperson may help that client with renovations or repairs to the client’s home, perhaps to help stage the home for prospective buyers. This work, however, may qualify as work performed by a “construction manager,” under NRS 624.020. A construction manager is defined as one who “provides management and counseling services on a construction project for a professional fee.” NRS 624.020. Construction managers are required to have an active contractor’s license pursuant to NRS 624.700 and this requirement applies to anyone, including real estate brokers and salespersons, who engage in services such as scheduling or managing renovations and repairs or consulting on the construction in exchange for compensation.
There is an exemption, however, for real estate brokers and salespersons. Licensed real estate brokers or salespersons may be exempt from the contractor’s license requirement for services including scheduling work to maintain or repair a residential property if the following conditions are met: (1) a building permit is not required for the work on the residential property; and (2) the value of the work does not exceed $10,000. See NRS 624.031(12). Otherwise, the requirements of NRS Chapter 24 apply and the real estate broker or salesperson is required to have a contractor’s license for any assistance provided to his or her client in scheduling licensed contractors to repair or maintain property or to consult on the project. Contact an attorney at Lemons, Grundy & Eisenberg if you have questions regarding these requirements.