Asset Management Companies / Asset Managers

About Asset Management

Asset Management means to manage, oversee or direct actions taken to maintain any real property, including, without limitation, any actions taken to preserve, restore or improve the value and to lessen the risk of damage to the property on behalf of a client before a foreclosure sale or in preparation for liquidation of real property owned by the client pursuant to a foreclosure sale.

Client means: 1. A bank, mortgage broker, mortgage banker, credit union, thrift company or savings and loan association, or any subsidiary thereof that is authorized to transact business in this State; 2. A mortgage holding entity chartered by Congress; or 3. A federal, state or local governmental entity, for whom an asset management company provides asset management.

Asset Management Company Certificate of Registration

A Certified Registered Asset Management Company is a person, limited-liability company, partnership, association or corporation which, for compensation and pursuant to a contractual agreement, power of attorney or other legal authorization, engages in asset management on behalf of:

A bank, mortgage broker, mortgage banker, credit union, thrift company or savings and loan association, or any subsidiary thereof which is authorized to transact business in this State;
A mortgage holding entity chartered by Congress; or
A federal, state or local governmental entity.

Qualified Employee:

If an asset management company is not a natural person, the company must designate a natural person (on the company registration form) as a qualified employee to act on behalf of the asset management company.

Qualified employee means:

(a) A director, officer, member, employee, manager or trustee of a partnership, corporation or limited-liability company designated by the partnership, corporation or limited-liability company to act on the behalf of the partnership, corporation or limited-liability company; or
(b) A person designated by a sole proprietorship

Registration of Asset Management Company Principal

Each Principal, General Partner, Officer, Director, Trustee, Manager, and/or Registered Agent must register as an Asset Management Company Principal separately from the company registration. If the management company is not a natural person, a natural person must also register as a principal.

Permit to Engage in Asset Managet

A permitted Asset Manager means a person engaged in the business of asset management who is an employee or independent contractor of a registered asset management company.

Authorized services of behalf of a client:

Following all applicable laws, an asset manager may, on behalf of an asset management company:

Secure real property once it has been determined to be abandoned and all notice provisions have been complied with.
Provide maintenance for real property in foreclosure, including landscaping and pool maintenance.
Clean the interior or exterior of real property in foreclosure.
Provide repair or improvements for real property in foreclosure.
Remove trash and debris from real property in foreclosure and the surrounding property.
Dispose of personal property abandoned on the premises of a residence in foreclosure after the eviction of a homeowner or tenant of a homeowner.
Evict a real property owner or tenant after the time has passed during which the real property owner may redeem the real property in foreclosure.
Seize real property in foreclosure.

Prohibitions:

An asset management company or asset manager cannot perform any function or service for which a real estate license is required: (NRS 645.030)

Cannot market or show a property;
Cannot negotiate a sale or purchase or lease;
Cannot collect and transmit to the owner/client rent from a tenant;
Cannot pay bills on behalf of the owner/client.
An asset manager may not handle a money component of a tenancy. The only monies an asset manager can “touch” or receive or handle is the compensation they receive from the client in payment for their asset management services.

Insurance Requirements for Asset Management Company

1. Before issuing any certificate of registration or annual renewal thereof, the Division shall require satisfactory proof that the asset management company:

(a) Is covered by a policy of insurance written by an insurance company authorized to do business in this State which is sufficient to reimburse real property owners for, without limitation, any damage to real property in foreclosure, the wrongful disposal of property or wrongful eviction; or

(b) Possesses and will continue to possess sufficient means to act as a self-insurer against that liability.

2. Every asset management company shall maintain the policy of insurance or self-insurance required by this section. The registration of every such asset management company is automatically suspended 10 days after receipt by the asset management company of a notice from the Division that the required insurance is not in effect, unless satisfactory proof of insurance is provided to the Division within that period.

3. Proof of insurance or self-insurance must be in such a form as the Division may require.

Asset Management Company Fees

1. A person must pay the following fees for the issuance or renewal of a certificate of registration as an asset management company:

(a) For the issuance of a certificate of registration, an application fee of $2,000 for the principal office and a fee of $500 for the issuance of the initial certificate of registration.

(b) For the renewal of a certificate of registration, a fee of $500.