Free Nevada Real Estate Practice Exam

Q1.A property owner wants to build a commercial structure in a residential zone. What must they obtain from the local zoning authority?

• A.A building permit
• B.A conditional use permit
• C.A certificate of occupancy
• D.A variance

Q2.Under the Fair Housing Act, which contract provision would be considered discriminatory and illegal?

• A.Requiring proof of income from all buyers
• B.Setting a minimum credit score requirement
• C.Stating 'no children allowed' in the property
• D.Requiring a home inspection

Q3.When must a covered agreement be reviewed under A.R.S. § 32-2151.01(G)?

• A.Before any party signs.
• B.Within 24 hours.
• C.Within 10 business days after execution.
• D.Only at closing.

Q4.Aisha witnesses a listing agent making remarks that cause a buyer to visibly back away. The listing agent says 'I was just being friendly.' Aisha should:

• A.Accept the agent's explanation since intent matters in harassment analysis
• B.Do nothing since the incident at another agent's open house is not her responsibility
• C.Recognize that the buyer's visible discomfort is the relevant fact — the harasser's dismissal does not change what she observed
• D.Immediately file a criminal complaint under A.R.S. § 13-1428

Q5.According to Nevada's Real Estate Recovery Fund (NRS 645.841–645.8494), what is the maximum amount that may be paid from the Recovery Fund to a single claimant who has suffered a loss due to the actions of a licensed real estate salesperson?

• A.$10,000 per transaction, with no aggregate limit per licensee
• B.$25,000 per claimant, with a maximum of $50,000 per licensee
• C.$50,000 per transaction, with a maximum of $100,000 per licensee
• D.$100,000 per claimant, with no aggregate limit per licensee

Q6.Under the federal Residential Lead-Based Paint Hazard Reduction Act (EPA/HUD), which of the following requirements applies when selling a pre-1978 residential property?

• A.The seller must remove all lead-based paint before the property can be listed for sale
• B.The seller must provide the buyer with any known lead-based paint disclosures and an EPA-approved information pamphlet, and give the buyer a 10-day period to conduct an inspection
• C.The seller is only required to disclose lead-based paint if the buyer is purchasing the home with an FHA loan
• D.The listing agent must independently test for lead-based paint and attach the results to the purchase contract

Q7.What is required for a valid deed to transfer title?

• A.Recording in public records
• B.Notarization only
• C.Payment of transfer taxes
• D.Delivery and acceptance

Q8.Under RESPA Section 8, a title company provides a lender with free office space and administrative support in exchange for referrals of settlement business. Which of the following best describes the legal consequences of this arrangement?

• A.It is permissible as long as the value of the office space is disclosed on the Closing Disclosure.
• B.It violates RESPA's anti-kickback provisions because the free office space constitutes a thing of value given in exchange for referrals of federally related mortgage loan business.
• C.It is permissible because RESPA only prohibits cash payments between settlement service providers, not in-kind arrangements.
• D.It violates RESPA only if the lender fails to provide the borrower with an Affiliated Business Arrangement disclosure.

Q9.Under Nevada law, which statement MOST accurately describes the obligations of an assigned agent representing the buyer when the broker is acting as a dual agent in the same transaction?

• A.The assigned agent owes the same limited duties to the buyer as a dual agent would, because the broker's dual-agent status overrides the assigned agent's individual representation
• B.The assigned agent must disclose to the seller any confidential financial information shared by the buyer in order to keep both parties equally informed
• C.The assigned agent owes the buyer the full range of fiduciary duties, including confidentiality and loyalty, and may not share the buyer's confidential information with the seller's assigned agent or the broker
• D.The assigned agent is prohibited from advising the buyer on price strategy because doing so would constitute acting against the interests of the seller

Q10.A broker managing a residential sales team discovers that one of her affiliated salespersons failed to provide a Lead-Based Paint Disclosure and EPA pamphlet to a buyer purchasing a pre-1978 home. The purchase contract has already been signed. Which statement BEST describes the broker's liability exposure under the Residential Lead-Based Paint Hazard Reduction Act?

• A.The broker faces potential civil liability because brokers have an independent duty to ensure the required disclosure is provided and can be held liable for their agents' failures to comply.
• B.Only the salesperson is liable because the statutory obligation to disclose belongs exclusively to the licensee who presented the offer.
• C.Only the seller is liable because the disclosure obligation under federal law rests solely with the property owner, not the brokerage.
• D.The broker is shielded from liability as long as the brokerage's policy manual requires salespersons to provide the disclosure.

Q11.Under NRS Chapter 645, a Nevada licensee who intends to act as a dual agent in a transaction must obtain informed written consent from both the buyer and the seller. If either party refuses to provide that consent, what is the CORRECT outcome under Nevada law?

• A.The licensee may proceed as a dual agent anyway, provided the broker provides written notice of the dual agency within five business days
• B.The licensee must withdraw from representing one of the parties so that dual agency does not exist
• C.The transaction is automatically voided, and neither party may use a licensee from that brokerage
• D.The licensee may continue representing both parties as long as an assigned agency arrangement is disclosed but not formally documented

Q12.Under the federal Truth-in-Lending Act (TILA) and Regulation Z, which of the following triggers the requirement for a lender to provide full disclosure of credit terms in an advertisement?

• A.Stating the property's list price in the advertisement
• B.Mentioning that financing is available
• C.Advertising a specific annual percentage rate (APR)
• D.Including the lender's contact information and NMLS number

Q13.A lender conditions a borrower's loan approval on the borrower purchasing title insurance from a specific title company in which the lender holds a 20% ownership interest. The lender provides the borrower with an Affiliated Business Arrangement (AfBA) disclosure but does not allow the borrower to shop for title insurance elsewhere. Which of the following is correct under RESPA?

• A.The arrangement is fully compliant because the lender provided the AfBA disclosure as required by RESPA Section 8(c)(4).
• B.The arrangement violates RESPA because even with an AfBA disclosure, a lender may not require the use of an affiliated settlement service provider as a condition of the loan.
• C.The arrangement is permissible because title insurance is not a 'settlement service' covered by RESPA Section 8.
• D.The arrangement is compliant as long as the lender's ownership interest in the title company is less than 25%.

Q14.A seller's agent learns that a seller recently converted a bedroom into a home office and permitted unpermitted electrical work to be done. Under federal and general real estate principles, what is the agent's most appropriate course of action?

• A.Keep the information confidential because it is a seller's agent obligation to protect the seller
• B.Disclose the material fact to prospective buyers, as it could affect the property's value and safety
• C.Disclose only if the buyer directly and specifically asks about electrical work
• D.Recommend the seller lower the price to account for the defect without disclosing it

Q15.Which statement best describes a designated broker's obligation regarding client data security in Arizona?

• A.Brokers are only responsible for paper records; digital data security is the client's responsibility
• B.Brokers must implement reasonable safeguards to protect client personally identifiable information from unauthorized access or disclosure
• C.Data security is solely an IT function with no broker liability
• D.Only social security numbers and financial account numbers require protection; other client data is unregulated