Free Nebraska Real Estate Practice Exam

Q1.Under the Nebraska Real Estate License Act, which of the following acts by a licensed salesperson would constitute a prohibited practice subject to license revocation or suspension?

• A.Presenting a written offer to purchase to the seller even after the salesperson's employing broker has verbally instructed the salesperson not to submit that particular offer.
• B.Advertising the salesperson's own licensed name in a property advertisement without including the employing broker's name.
• C.Accepting a referral fee directly from a cooperating broker in another state with the written consent of the salesperson's employing broker.
• D.Showing a listed property to a buyer who is already represented by another licensed Nebraska broker.

Q2.A real estate agent is working with a buyer to purchase a home with a $300,000 purchase price. Under RESPA requirements, when must the Loan Estimate be provided to the borrower?

• A.Within 1 business day of loan application
• B.Within 3 business days of loan application
• C.Within 5 business days of loan application
• D.At least 7 business days before closing

Q3.Under the Nebraska Real Estate License Act, a designated broker is responsible for which of the following with respect to affiliated licensees operating under the broker's license?

• A.Paying affiliated licensees a minimum hourly wage as required by state law
• B.Supervising the real estate activities of affiliated licensees and ensuring their compliance with the License Act
• C.Holding joint liability with affiliated licensees only when the broker personally participates in the transaction
• D.Renewing affiliated licensees' licenses on their behalf with the Nebraska Real Estate Commission

Q4.A broker manages a rental property portfolio and receives a complaint that one of the broker's property managers denied a rental application from a family with three children, citing the property owner's stated preference to avoid 'wear and tear from kids.' Under the federal Fair Housing Act, which analysis BEST describes the broker's legal exposure?

• A.The broker faces potential liability under the Fair Housing Act because familial status is a protected class, and following an owner's discriminatory instruction does not immunize the broker or the property manager from liability.
• B.The broker has no liability because the discriminatory preference originated with the property owner, and agents are not liable for faithfully executing a principal's lawful instructions.
• C.The broker is protected because the Fair Housing Act's familial status provisions apply only to sales transactions, not residential rentals.
• D.The broker may avoid liability by documenting that the property manager acted without the broker's direct knowledge or authorization.

Q5.Under the Nebraska Real Estate License Act, which of the following acts by a salesperson would be considered a prohibited practice?

• A.Presenting all offers to the seller, even after a purchase agreement has been signed
• B.Advertising a listed property without including the employing broker's name
• C.Disclosing the existence of multiple offers to a prospective buyer
• D.Referring a client to a home inspector without receiving compensation

Q6.A Nebraska employing broker fails to review and countersign transaction files prepared by affiliated salespersons for a period of several weeks. Under Nebraska Real Estate Commission rules, this would most likely constitute a violation of the broker's duty regarding:

• A.Trust account reconciliation requirements
• B.Mandatory continuing education supervision
• C.Adequate supervision of licensed salespersons
• D.The requirement to maintain errors and omissions insurance

Q7.Under the Nebraska Real Estate License Act, which of the following activities requires a Nebraska real estate license?

• A.A homeowner selling their own personal residence
• B.A licensed attorney handling a real estate transaction as part of their legal practice
• C.A person advertising another party's property for sale in exchange for compensation
• D.A trustee selling property held in a trust as part of their fiduciary duties

Q8.Under RESPA (Real Estate Settlement Procedures Act), which practice is specifically prohibited regarding escrow accounts?

• A.Requiring borrowers to deposit two months of property taxes at closing
• B.Conducting an annual escrow analysis to adjust monthly payments
• C.Maintaining a cushion of more than two months of escrow payments
• D.Requiring flood insurance premiums to be escrowed

Q9.What is the innocent landowner defense under CERCLA, and what must a property owner demonstrate to qualify for this protection?

• A.The owner must demonstrate they purchased the property at fair market value
• B.The owner must show they reported the contamination to EPA within 30 days of discovery
• C.The owner must prove they conducted all appropriate inquiry before purchase and had no knowledge of contamination
• D.The owner must prove they have adequate insurance coverage for environmental cleanup

Q10.Under the Fair Housing Act, which federal agency has primary enforcement authority for investigating housing discrimination complaints?

• A.Federal Trade Commission (FTC)
• B.Consumer Financial Protection Bureau (CFPB)
• C.Department of Housing and Urban Development (HUD)
• D.Environmental Protection Agency (EPA)

Q11.In Nebraska, the real estate salesperson licensing examination is administered by which organization?

• A.The Nebraska Real Estate Commission directly
• B.The National Association of REALTORS®
• C.Pearson VUE
• D.The Nebraska Department of Education

Q12.A Nebraska licensee representing a seller as a seller's agent shows the seller's property to an unrepresented buyer. Regarding duties owed to that buyer, the licensee must:

• A.Provide the same fiduciary duties to the buyer as to the seller
• B.Treat the buyer honestly, disclose material facts, and refer the buyer to other professionals for matters beyond the licensee's expertise
• C.Refuse to communicate with the buyer directly without a buyer's agent present
• D.Represent both parties equally since the buyer is unrepresented

Q13.Under CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), which party would most likely be held liable for environmental cleanup costs?

• A.Any current owner, regardless of whether they caused the contamination
• B.Only the party who originally caused the contamination
• C.Only the current property owner if they knew about the contamination
• D.Only parties who transported hazardous substances to the site

Q14.A landlord receives a rental application from a person who uses a service dog due to blindness. Under the Fair Housing Act, the landlord may:

• A.Charge a pet deposit for the service dog
• B.Allow the service dog even if the property has a no-pets policy
• C.Require documentation of the person's disability
• D.Refuse the application if other tenants are afraid of dogs

Q15.A buyer's broker negotiates a purchase agreement that includes a financing contingency requiring the buyer to obtain a commitment for a 30-year fixed-rate mortgage at no more than 7.5% interest within 21 days. On day 19, the lender verbally confirms approval but has not issued a written commitment. On day 20, the buyer instructs the broker NOT to notify the seller of satisfaction because the buyer wants more time to shop for a lower rate. The broker complies and says nothing. The seller, believing the contingency was not satisfied, accepts a backup offer. What is the broker's PRIMARY breach?

• A.The broker breached the duty of obedience by following an illegal client instruction; a buyer's broker may not comply with a direction that requires the broker to conceal a material fact — satisfaction of a contingency — from the other party, because doing so constitutes fraudulent misrepresentation by omission and exposes the broker to liability for the resulting contract failure.
• B.The broker breached the duty of confidentiality by disclosing the buyer's loan approval status to third parties without authorization.
• C.The broker committed a RESPA violation by allowing the lender to provide a verbal commitment rather than a written Loan Estimate within the required timeframe.
• D.The broker had no duty to act because the financing contingency was entirely the buyer's contractual right to waive or enforce, and brokers must follow all client instructions without independent legal analysis.