Free Nevada Real Estate Practice Exam

Q1.The Nevada Real Estate Commission is considering a formal disciplinary action against a broker for misappropriation of trust funds. Under NRS 645.630 and related provisions, which of the following disciplinary sanctions may the Commission impose directly against a broker's license without referral to a district court?

• A.Revocation or suspension of the license, imposition of an administrative fine not exceeding $10,000 per violation, and a requirement to complete additional education.
• B.Revocation or suspension of the license only; the Commission must refer all monetary penalties to the Nevada Attorney General's office for collection through district court.
• C.A civil judgment for damages payable to harmed clients, plus license revocation, because the Commission acts as a quasi-judicial court of competent jurisdiction.
• D.Criminal referral to the district attorney and an automatic license revocation, because misappropriation of trust funds is a per se criminal act under NRS 645.

Q2.A Nevada listing agent represents a seller who privately discloses to the agent that the home's basement has experienced recurring water intrusion after heavy rain, though the basement currently appears dry and the seller has not repaired the underlying issue. The seller instructs the agent to keep this information confidential and not disclose it to buyers. Under Nevada law, which of the following actions is MOST consistent with the agent's legal obligations?

• A.The agent must honor the seller's confidentiality instruction because the agent's fiduciary duty to the seller supersedes any duty to disclose latent defects to buyers.
• B.The agent must disclose the water intrusion to prospective buyers as a material defect known to the agent, regardless of the seller's instruction, because Nevada law imposes an independent duty on licensees to disclose known material defects.
• C.The agent may withhold the information from buyers but must disclose it to the buyer's agent if one is involved, satisfying the agent's disclosure obligation under NRS Chapter 645.
• D.The agent is only required to disclose the water intrusion if the buyer specifically asks about basement moisture conditions on the Seller's Real Property Disclosure Form.

Q3.The Nevada Real Estate Division receives a complaint alleging that a licensed salesperson engaged in misrepresentation during a transaction. Under NRS Chapter 645, which of the following best describes the Division's investigative authority?

• A.The Division may only investigate complaints submitted in writing and notarized by the complaining party
• B.The Division may investigate complaints and may also initiate an investigation on its own motion without a formal complaint from a consumer
• C.The Division must refer all complaints to the Nevada Attorney General before beginning any investigation
• D.The Division's investigative authority is limited to reviewing public transaction records and cannot compel testimony

Q4.A Nevada salesperson has a valid listing agreement for a residential property. The seller asks the salesperson to refuse to show the property to buyers of a particular national origin. Under NRS Chapter 645, how must the salesperson respond?

• A.Follow the seller's instructions because the seller owns the property and controls who sees it
• B.Comply with the seller's request only if it is put in writing in the listing agreement
• C.Refuse to follow the discriminatory instruction, as complying would violate Nevada law and the salesperson's duties as a licensee
• D.Ask the supervising broker to handle all showings so the salesperson personally avoids liability

Q5.A broker's affiliated salesperson prepares a Comparative Market Analysis (CMA) for a prospective seller and, without the broker's knowledge, verbally advises the seller that the property qualifies for a specific federally backed loan program. The seller relies on this advice, the loan falls through, and the transaction fails. Under the doctrine of respondeat superior as applied in real estate licensing law, which of the following MOST accurately describes the broker's potential liability?

• A.The broker faces no liability because the salesperson acted outside the scope of their license by providing loan-qualification advice, which constitutes unauthorized practice.
• B.The broker may be held vicariously liable if the salesperson's conduct occurred within the ordinary course of activities the broker authorized or could reasonably have foreseen, regardless of the broker's actual knowledge.
• C.The broker's liability is capped at the amount of commission earned on the failed transaction under the economic loss rule.
• D.The broker is automatically insulated from liability because the Truth-in-Lending Act assigns sole responsibility for loan disclosures to the creditor, not the real estate licensee.

Q6.After an agent terminates employment at a brokerage following a harassment complaint, the brokerage's fair housing liability:

• A.Ends automatically when the agent is terminated
• B.Transfers entirely to the former agent
• C.Is resolved as long as the broker cooperates with HUD's investigation
• D.Continues — the brokerage remains the respondent in any pending complaint

Q7.CERCLA imposes liability on parties associated with hazardous substance releases. As a broker-level due diligence obligation, which federal rule most directly governs the disclosure and recordkeeping requirements related to lead-based paint in residential housing built before 1978?

• A.EPA/HUD Lead Disclosure Rule (40 C.F.R. Part 745)
• B.CERCLA Section 107 strict liability provisions
• C.RESPA Section 8 affiliated business arrangements
• D.ECOA Regulation B adverse action notice requirements

Q8.A Nevada salesperson advertises a listing on social media using only her first name and the phrase 'Great Homes, Great Prices' without any other identifying information. Under NAC Chapter 645, this advertisement is:

• A.Compliant because social media posts are exempt from Nevada advertising rules
• B.Compliant if the salesperson's license number appears somewhere on her profile page
• C.Non-compliant because it fails to include the licensed name of the supervising broker or brokerage
• D.Non-compliant only if the property is located outside Nevada

Q9.A purchase contract includes a provision that the sale is contingent upon the buyer selling their current home within 60 days. If the buyer's home does not sell within this timeframe, what happens to the contract?

• A.The contract automatically renews for another 60 days
• B.The seller can sue for specific performance
• C.The buyer must proceed with the purchase regardless
• D.The contract becomes voidable at the buyer's option

Q10.A Nevada purchase agreement contains a financing contingency stating the offer is contingent upon the buyer obtaining a loan commitment within 15 days. On day 16, the buyer has not received a commitment and has not provided written notice of contingency removal or cancellation. The seller now wants to cancel. Under Nevada contract principles and standard Nevada purchase agreement practice, which statement is MOST accurate?

• A.The contract automatically terminates on day 16 because the contingency deadline passed without satisfaction, requiring no further action by either party.
• B.The seller may deliver written notice to the buyer providing an additional period to perform, or may declare the buyer in default and pursue remedies, because the contingency's expiration does not automatically void the contract without affirmative action.
• C.The buyer automatically retains the right to extend the contingency period for another 15 days under Nevada law.
• D.The seller must petition the Nevada Real Estate Division before cancelling a contract with an unsatisfied contingency.

Q11.Under CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), which party can be held liable for environmental cleanup costs?

• A.Current owners, past owners, operators, and transporters of hazardous substances
• B.Only the party that originally caused the contamination
• C.Only current property owners
• D.Only parties who knowingly participated in creating the contamination

Q12.A brokerage's leasing agent conditions a showing on a sexual favor, without the broker's knowledge. Under the FHA, which statement is correct?

• A.The brokerage has no liability because the broker did not know
• B.Only the agent is personally liable
• C.The brokerage may face vicarious liability because the agent acted within the scope of employment
• D.The brokerage is only liable if the conduct was part of a pattern

Q13.A Nevada purchase agreement is fully executed on a residential property. The buyer delivers an earnest-money deposit to the listing broker. Under Nevada law, where must this deposit be placed?

• A.In the broker's general operating account within five banking days
• B.In the broker's trust account within a reasonable time, not to exceed five banking days after all parties have signed the agreement
• C.Directly with the escrow company within 24 hours of contract execution
• D.Held by the buyer's agent personally until the close of escrow

Q14.A property being sold was built in 1968 and is located near a former gas station. Under federal environmental disclosure requirements, which of the following must be addressed?

• A.Lead-based paint disclosure and potential environmental contamination investigation
• B.Only lead-based paint disclosure requirements
• C.Only environmental site assessment requirements under CERCLA
• D.No federal environmental disclosures are required for residential properties

Q15.NAR Standard of Practice 10-5 applies to REALTOR® conduct in which contexts?

• A.Only in-person client meetings
• B.Professional contexts including open houses, industry events, MLS forums, and professional social media
• C.Only transactions involving the REALTOR®'s own listings
• D.Only conduct occurring at the REALTOR®'s brokerage office