Transactional Agency

Under Nevada real estate law, the concept of a “Transactional Agency” as a neutral, non-representative facilitator is not permitted. Nevada does not allow a real estate licensee to perform services for both the buyer and the seller in a transaction without representing either party. Instead, the law requires that licensees act in a clearly defined agency capacity, either as a single agent representing one party or as a dual agent representing both parties with informed consent.

Correct Definition of Agency in Nevada

In Nevada, all real estate licensees must operate within the framework of agency relationships as defined by state law. These relationships include:

• Single Agency Representation: The licensee represents only one party (either the buyer or the seller) and owes fiduciary duties, such as loyalty, confidentiality, and obedience, to that client.
• Multiple Agency Representation: The licensee represents both the buyer and the seller in a transaction. However, dual agency is only legal if both parties provide informed, written consent before entering into this type of relationship. In a dual agency, the licensee must remain neutral and cannot advocate for one party over the other.

Nevada law does not recognize or permit a “Transactional Agency” where the licensee operates as a neutral party without representing either side. This is because the law emphasizes the importance of clearly defined duties and fiduciary responsibilities to clients.

Role of the Nevada Real Estate Licensee

For every real estate transaction, a licensee in Nevada must:

• Act in accordance with a formal agency agreement.
• Disclose the nature of their relationship with all parties involved in the transaction, including whether they are acting as a single agent or a dual agent.
• Uphold fiduciary duties if representing a single party, or ensure neutrality and fairness if acting as a dual agent.
• Follow the disclosure requirements outlined in Nevada Revised Statutes (NRS) Chapter 645.

Implications for Buyers and Sellers

Buyers and sellers in Nevada should understand their rights regarding agency representation:

• Single Agency Offers Full Advocacy: If you choose a single agency, your licensee will provide advice, negotiation support, and fiduciary duties exclusively to you.
• Multiple Agency Requires Consent: In a dual agency, you must understand and agree to the licensee’s limited ability to advocate for either side.
• No Neutral Facilitation: Nevada law requires that all licensees operate within an agency structure, ensuring that all parties are aware of the licensee’s role.

Conclusion

It is critical for real estate professionals and consumers in Nevada to understand that the concept of a “Transactional Agency” does not align with Nevada law. All real estate transactions in the state must involve clearly defined agency relationships, ensuring that the duties and responsibilities of the licensee to their clients are transparent and legally compliant. For further details, consult the Nevada Real Estate Division’s guidelines or review NRS Chapter 645.