Nebraska Administrative Code › Topic - REAL ESTATE COMMISSION › Title 299 - NEBRASKA REAL ESTATE COMMISSION › Chapter 5 - DISCIPLINARY MATTERS; COMMISSION DISPUTES; DISCUSSION BY COMMISSIONERS; ACTIONS DEMONSTRATING NEGLIGENCE, INCOMPETENCY, OR UNWORTHINESS › Section 299-5-003

Current through June 17, 2024
Actions demonstrating negligence, incompetency, or unworthiness under
											  Section
											  81-885.24(29)
											   of the Nebraska Real Estate License Act shall include but not be limited
											  to the following:
003.01 Preparing a land contract or trust deed for
										use in closing a real estate transaction without each separate land contract or trust deed being approved by
										an attorney.
003.02 Conspiring with an applicant to represent to
										any lender, guaranteeing agency, or any other interested party, either verbally or through the preparation of
										false documents, an amount in excess of the true and actual sale price of the real estate or terms differing
										from those actually agreed upon.
003.03 Permitting a salesperson
										or associate broker to conduct a real estate business under a broker's name or under the name recorded with
										the Commission in which the broker is doing business when in fact said broker is not operating said real
										estate business.
003.04 Failure to make known, in writing, to any
										purchaser or seller any interest the licensee has in the property he or she is buying or selling. If the
										licensee has any interest in the property for sale, said written disclosure shall take place prior to the
										buyer becoming obligated to purchase the property. In a situation where a licensee is purchasing property for
										themselves or for an entity in which they have any interest, said written disclosure by the licensee shall
										take place prior to the seller becoming obligated to sell such property. Said written disclosure shall be
										signed and dated by the other party. A copy of the signed and dated disclosure shall be maintained by the
										licensee for five years from the date of the receipt by the other party. In a case where the subject property
										is listed by a real estate broker, such disclosure may be maintained in the transaction file, in accordance
										with 299 NAC 3-001.
003.05 Failure to timely disclose, in writing, the acceptance, giving, or
										charging of any commission, rebate, or direct profit on an expenditure made for a principal as set forth in
										Neb. Rev. Stat. 81-885.24(6). Said written disclosure shall
										take place no later than at the time the principal agrees to the expenditure resulting in the commission,
										rebate, or direct profit. A copy of said written disclosure shall be delivered to and signed and dated by the
										principal. A copy of the signed and dated disclosure shall be maintained in the transaction file in
										accordance with 299 NAC
										3-001.
003.06 Failure of
										a licensee, if being compensated by more than one party, to disclose this fact, in writing, to all parties.
										Said written disclosure shall be signed and dated by all parties prior to either party becoming obligated to
										complete the transaction. A copy of the signed and dated disclosure shall be maintained in the transaction
										file in accordance with 299 NAC
										3-001.
003.07 Failure of
										a licensee to comply with the requirements set forth in Neb. Rev. Stat. Sections
										76-2401 - 76-2430.
003.08 Failure to disclose, in writing, in accordance with Neb. Rev. Stat.
										Sections
										76-2401 through
										76-2430, the fact that said
										licensee is acting in the dual capacity of agent and principal in a transaction as set forth in Neb. Rev.
										Stat. Section
										81-885.24(9).
										Said written disclosure shall be signed and dated by the other principal to the transaction. A copy of the
										signed and dated disclosure shall be maintained in the transaction file in accordance with 299 NAC
										3-001.
003.09 Failure to
										obtain the informed written, signed, and dated consent of all parties involved in a transaction prior to a
										licensee acting for more than one party in the transaction. Informed written consent means that the licensee
										must obtain the written agreement of said parties, as well as the licensee's employing broker, prior to
										acting in such a manner. A copy of said informed written consent shall be signed, dated, and maintained in
										the transaction file in accordance with 299 NAC
										3-001. If no transaction results then the informed written consent
										shall be maintained by the licensee's employing broker for five years after the date of the
										agreement.
003.10 Failure of the licensee to identify in writing
										to the seller-client, or to a seller-customer if offered pursuant to Neb. Rev. Stat.
										76-2421(4) (b), at the time the offer is
										presented and accepted, those categories of costs the seller will be expected to pay at closing. At the same
										time, the licensee shall prepare a written estimate of the costs the seller will be expected to pay at
										closing, to the extent the necessary cost information is reasonably available. Said written information shall
										be signed and dated by the seller, and a copy of the signed and dated document(s) shall be maintained in the
										transaction file in accordance with 299 NAC
										3-001. This subsection shall not apply to the sale of new
										construction; lots; agricultural property; commercial property, including residential property with five or
										more dwelling units; or to third-party relocation companies acting as sellers. For the purposes of this
										subsection, the term "agricultural property" shall mean property zoned agricultural by a county in which any
										part of the property is located, or, if a county does not zone land agricultural, then property any part of
										which is assessed as agricultural property by a county assessor.
003.11 Failure of the licensee to identify in writing to the prospective
										purchaser-client, or to a purchaser-customer if offered pursuant to Neb. Rev. Stat.
										76-2421(3) (b), at the time an offer is written
										by the purchaser or a counter offer is accepted by the purchaser, those categories of costs the purchaser
										will be expected to pay at closing. At the same time, the licensee shall prepare a written estimate of the
										costs the purchaser will be expected to pay at closing, to the extent the necessary cost information is
										reasonably available. Said written information shall be signed and dated by the purchaser. A copy of the
										signed and dated document shall be given to the purchaser and, when a transaction results, one copy shall be
										maintained in the transaction file in accordance with 299 NAC
										3-001. This subsection shall not apply to the sale of land or a lot
										or lots to an entity or individual representing itself, himself or herself as a builder or developer;
										agricultural property; commercial property, including residential property with five or more dwelling units;
										or to third-party relocation companies acting as purchasers. For the purposes of this subsection, the term
										"agricultural property" shall mean property zoned agricultural by a county in which any part of the property
										is located, or, if a county does not zone land agricultural, then property any part of which is assessed as
										agricultural property by a county assessor.
003.12 Failure
										without just cause to surrender unto the rightful owner, upon demand, any document or instrument coming into
										his or her possession.
003.13 Accepting other than cash or an
										immediately cashable check as earnest money unless such fact is communicated to the owner prior to his or her
										acceptance of the offer to purchase, and such fact is shown in the earnest money receipt. In the case of a
										cooperative sale in which the buyer offers a promissory note as an earnest money deposit, the note should be
										made payable to the listing broker or should be endorsed without recourse by the selling broker to the
										listing broker. The promissory note shall be delivered to the listing broker with the offer.
003.14 Failure to deposit any funds received as an earnest money deposit
										within 72 hours or before the end of the next banking day, after an offer is accepted, in writing, unless
										otherwise provided in the purchase agreement. In the event an offer is not accepted, said earnest money
										deposit shall be returned forthwith.
003.15 Withholding earnest
										money when the purchaser or seller is rightfully entitled to the money; provided, a broker may retain funds
										to cover expenses he or she has prepaid for a purchaser or seller from the broker's funds.
003.16 Advising against the use of the services of an attorney in any real
										estate transaction.
003.17 Failure to produce any document, book,
										or record in the licensee's possession, or under his or her control, concerning any real estate transaction
										under investigation by the Commission.
003.18 Failure to reduce
										an offer to writing where a prospective purchaser requests such offer be submitted when the licensee is: the
										limited seller's agent for the property; the prospective purchaser's limited buyer's agent; or the dual agent
										of the seller and the prospective purchaser.
003.19 Failure by
										any licensee to supervise persons hired to assist the licensee in his or her licensed real estate
										activities.
003.20 Failure to disclose, in writing, to a buyer,
										at or prior to the time the buyer signs an Offer to Purchase, an adverse material fact regarding the
										condition of a parcel of real estate of which a broker or salesperson has knowledge. Said written disclosure
										shall be signed and dated by the buyer, and a copy of the signed and dated disclosure shall be maintained in
										the transaction file on that parcel of real estate in accordance with 299 NAC
										3-001. An adverse material fact is one which significantly affects
										the desirability or value of the property, and which is not reasonably ascertainable or known to the
										buyer.
003.21 Failure by a designated or employing broker to
										return:
(a) a salesperson's or associate broker's license to the Real
										Estate Commission within fifteen days of the salesperson's or associate broker's request for transfer of his
										or her license; or
(b) his or her broker's license, an associate
										broker's license, a salesperson's license, or a branch office license to the Real Estate Commission within
										fifteen days of the Real Estate Commission's request.