Can a Nevada licensee sell a property with an unmerchantable title?

A licensee in Nevada cannot sell a property with an unmerchantable title unless they disclose that fact to the buyer before any deposit is made. An unmerchantable title refers to a title that has defects or issues which might prevent the seller from providing clear ownership to the buyer. In real estate transactions, full disclosure is crucial, as buyers have the right to be informed about any potential problems that could affect their property ownership rights.

By requiring disclosure before earnest money is accepted, this ensures that buyers are fully aware of the transaction's risks and can make informed decisions. Transparency is a fundamental principle in real estate to protect both buyers and sellers and to uphold the integrity of the profession. Failing to disclose such significant title issues could result in legal ramifications for the licensee, including potential claims of fraud or misrepresentation.