Free Nevada Real Estate Practice Exam

Q1.According to the Truth-in-Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to borrowers must include which of the following costs?

• A.Only the interest rate charged on the loan
• B.Interest rate plus loan origination fees and discount points
• C.All closing costs including title insurance and appraisal fees
• D.Interest rate plus property taxes and homeowner's insurance

Q2.According to Nevada Revised Statutes, what is the minimum amount of errors and omissions insurance coverage a real estate broker must maintain?

• A.$25,000 per occurrence
• B.$50,000 per occurrence
• C.$100,000 per occurrence
• D.$250,000 per occurrence

Q3.In Nevada, what is the statute of limitations for filing a fair housing complaint with the Nevada Equal Rights Commission?

• A.180 days
• B.1 year
• C.2 years
• D.3 years

Q4.Under Nevada law, when a salesperson's license expires, how long do they have to renew it before it becomes inactive?

• A.30 days
• B.60 days
• C.90 days
• D.1 year

Q5.Under Nevada law, which of the following activities requires direct broker approval before a salesperson can proceed?

• A.Showing properties to prospective buyers
• B.Attending continuing education classes
• C.Negotiating contract terms on behalf of a client
• D.Advertising properties for sale

Q6.A buyer is purchasing a $350,000 home with a 20% down payment. The lender charges 2 discount points. How much will the buyer pay for the discount points?

• A.$7,000
• B.$5,600
• C.$3,500
• D.$2,800

Q7.Under Nevada Real Estate Commission regulations, when must a property management agreement be reduced to writing?

• A.Only when the management fee exceeds $1,000 monthly
• B.When the agreement term exceeds 30 days
• C.For all property management agreements regardless of duration or compensation
• D.Only when managing more than 4 rental units

Q8.A Nevada broker discovers that a supervised salesperson has been operating from an unlicensed branch office for six months without the broker's knowledge. The broker immediately corrects the situation but faces potential disciplinary action. Which factor would likely MOST influence the Nevada Real Estate Commission's disciplinary decision?

• A.The length of the salesperson's real estate career
• B.The dollar volume of transactions conducted from the unlicensed office
• C.The adequacy of the broker's supervision and oversight systems
• D.The number of clients who were harmed by the violation

Q9.A life estate holder (life tenant) has the right to:

• A.Sell the property and keep all proceeds
• B.Use and occupy the property during their lifetime
• C.Will the property to their heirs
• D.Demolish buildings without restriction

Q10.A purchase agreement becomes legally binding when:

• A.The buyer signs the offer
• B.The seller receives the offer
• C.The seller accepts and the buyer is notified of acceptance
• D.Earnest money is deposited

Q11.A developer creates a subdivision with deed restrictions requiring all homes to be single-family residences. Later, the city rezones the area for commercial use. The deed restrictions:

• A.Become void due to the rezoning
• B.Remain enforceable despite the rezoning
• C.Must be amended by the city council
• D.Automatically convert to commercial restrictions

Q12.A property manager in Nevada manages a 20-unit apartment complex where the owner lives on-site in one unit. Which statement about fair housing obligations is correct?

• A.The owner-occupancy exemption applies to the entire complex
• B.Fair housing laws apply because there are more than four rental units
• C.Only Nevada fair housing laws apply, not federal laws
• D.The property is exempt from all fair housing requirements

Q13.A Nevada broker's trust account shows a book balance of $18,000, but the bank statement shows $18,300. Upon investigation, there are outstanding checks totaling $800 and a deposit in transit of $500. What is the correct reconciled balance, and what action should the broker take?

• A.$18,000; no action needed as books are correct
• B.$18,000; investigate the $300 difference
• C.$18,300; adjust books to match bank statement
• D.$17,800; there is a $200 shortage that must be reported

Q14.Under the Truth in Lending Act (TILA), what is the maximum time period a borrower has to exercise their right of rescission on a refinance loan secured by their principal dwelling?

• A.2 business days
• B.3 business days
• C.5 business days
• D.7 calendar days

Q15.In Nevada, what is required when a salesperson transfers from one broker to another?

• A.Only the new broker needs to notify NREC
• B.Both the former and new broker must notify NREC within 10 days
• C.The salesperson must notify NREC and both brokers
• D.Only the salesperson needs to file a transfer application