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We have all dealt with a transaction where the other brokerage declared, “just call my client directly.”  This option has been confusing as to how we should handle this situation.  Most times, when told to do so by the other brokerage, contacting the other principal directly was in your client’s best interest, especially if it is a simple item.  But sometimes you are actually, “negotiating” a portion of the transaction.  My advice to our salespersons at Prudential, Americana Group, REALTORS® has always been to get the permission from the other broker in writing.  I have prevailed in grievances as a result of Prudential, Americana Group, REALTORS® having the permission to speak directly to the other principal.  Well, we finally have a clear answer. 

First the Nevada legislature made direct communication a clear violation. 

As of July 1, 2007 it is now clear that negotiating or communicating with a client you know has a brokerage agreement in force is a violation of NRS 645.635.{[1]} 

Then the Nevada legislature clarified how to properly communicate directly when the principal receiving direct communication grants permission.   

When a represented client ‘chooses to waive the duty of the licensee to present all offers and signs a waiver of the duty on a form prescribed by the Division,” you are allowed to contact this principal directly.{[2]}  This form is not created yet, but I will keep you posted.  This is a good rule and allows clearer direction for all of us.  Keep in mind there are a number of sophisticated Sellers out there that want to make use of our Multiple Listing Service, thorough contemporary well prepared forms and timely material defect information affecting the Las Vegas Valley (read All Inclusive written by yours truly{[3]}) but would rather conduct all negotiations directly.  You now, as a potential selling (buyer’s) salesperson, can conduct these negotiations.   

This created and allowed in part by another clarification wherein your duty as a Prudential, Americana Group, REALTORS® salesperson to your client is that of ‘statutory,’ and not fiduciary.{See [4] Below} Further, such a relationship is not created and therefore you are not representing a client when the only relationship you have with the principal is solely from negotiations or communications with a client of another broker with the written permission of the broker in the currently non existing form above described.  That form is now available at http://www.red.state.nv.us/forms/637.pdf.  How’s that?  I explained away an issue with a new form; at least, as Aldo Martinez our esteemed Manager of the Southwest location {[5]} would say, I didn’t segway into my travels in Africa.


{1} http://www.leg.state.nv.us/NRs/NRS-645.html#NRS645Sec635

{2} http://www.leg.state.nv.us/NRs/NRS-645.html#NRS645Sec254

{3} https://americenter.americanagrp.com/info/AmeriHelp/Net%20Forms/AllInclusiveDisclosure.htm

{4} Agency as of July 1, 2007 means, “a relationship between a principal and an agent arising out of a brokerage agreement whereby the agent is engaged to do certain acts of behalf of the principal in dealings with a third party.” 

{5} http://americanagroup.net/offices.htm?office_id=304667

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