Nevada License Law
Under NRS 645, how must a Nevada real estate licensee handle a situation where a client instructs them to do something that is legal but unethical?
AFollow the client's instructions regardless
BThe licensee may decline to follow unethical instructions while complying with legal requirements; the license law does not require agents to violate professional ethics✓ Correct
CImmediately terminate the agency relationship without notice
DReport the client to NRED
Explanation
While Nevada agents must follow lawful instructions from their principal, they are not required to act unethically. The REALTOR® Code of Ethics and Nevada professional standards allow agents to decline unethical instructions.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
State-Specific Concepts
License Law
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