Free Nevada Real Estate Practice Exam

Q1.Under NRS Chapter 645, which state agency has direct administrative authority over the licensing and regulation of real estate salespersons in Nevada?

• A.The Nevada Real Estate Commission, acting independently of any division
• B.The Nevada Real Estate Division, operating within the Department of Business and Industry
• C.The Nevada Department of Commerce, through its licensing bureau
• D.The Nevada Attorney General's Office, through its consumer protection unit

Q2.A Nevada licensed broker discovers that one of her affiliated salespersons has been executing buyer representation agreements on behalf of the brokerage without obtaining the broker's prior written authorization as required under NRS 645.310. The salesperson has closed three transactions under these unauthorized agreements. Which of the following actions represents the broker's PRIMARY statutory obligation under Nevada law?

• A.Immediately notify the Nevada Real Estate Division (NRED) of the salesperson's conduct, take corrective supervisory action, and review all transactions to assess potential liability, since NRS 645.310 places direct supervisory responsibility on the broker for all acts of affiliated licensees.
• B.Terminate the salesperson's license affiliation immediately and send written notice to all three buyers informing them their representation agreements are void ab initio, since unauthorized agreements cannot be ratified under Nevada law.
• C.Ratify the agreements retroactively in writing and forward copies to NRED within 10 business days, thereby curing the defect under the Nevada Administrative Code's provision for brokerage agreement amendments.
• D.Place the salesperson on a 30-day probationary supervision plan and report the matter only if additional violations occur, since a single pattern of unauthorized agreements qualifies as a minor infraction under NAC 645.

Q3.Under most Arizona listing agreements, when is the real estate commission considered 'earned'?

• A.When the listing agreement is signed by both parties
• B.When the seller accepts a ready, willing, and able buyer by executing the purchase contract
• C.When the transaction closes and the deed is recorded
• D.When the buyer submits an offer at full list price

Q4.Under federal law and Nevada practice, when must a seller of a pre-1978 residential property provide the EPA-approved lead-based paint disclosure and pamphlet to a prospective buyer?

• A.Before the buyer makes an offer on the property.
• B.Before the buyer is obligated under any contract to purchase the property.
• C.Within three business days after the purchase contract is fully executed.
• D.At or before the closing of the transaction.

Q5.A buyer is purchasing a resale condominium unit in a Nevada common-interest community. Under Nevada law, which of the following statements BEST describes the seller's obligation regarding the resale package, and what remedy does the buyer have if the package is not delivered in a timely manner?

• A.The seller must deliver the resale package to the buyer within 10 days of accepting the purchase offer; if the seller fails to do so, the buyer may rescind the contract at any time before closing without penalty.
• B.The seller must cause the association to provide the resale package to the buyer; if the buyer does not receive it at least 5 days before closing, the buyer has the right to cancel the contract and receive a full refund of any deposits paid.
• C.The seller must deliver the resale package to the buyer before the purchase agreement is signed; failure to do so automatically voids the contract under NRS Chapter 116.
• D.The seller must provide the resale package only upon the buyer's written request, and the buyer waives the right to rescind if no request is made within 5 days of contract execution.

Q6.The most important thing a listing agent can ask a buyer's agent when reviewing a financed offer is:

• A.Whether the buyer has a pre-qualification, pre-approval, or loan commitment — and from what type of lender
• B.Whether the buyer has made offers before
• C.Whether the buyer's agent will reduce their commission
• D.Whether the buyer will waive the inspection contingency

Q7.A buyer receives the Seller's Real Property Disclosure Form after the purchase agreement has already been signed. Under NRS 113.135, which of the following best describes the buyer's right upon receiving a late disclosure?

• A.The buyer may rescind the purchase agreement within 5 days after receiving the disclosure, and the seller must return any deposits paid
• B.The buyer loses all rescission rights because the purchase agreement was already fully executed
• C.The buyer must notify the Nevada Real Estate Division within 3 business days to preserve rescission rights
• D.The buyer may rescind the agreement only if a licensed inspector confirms a material defect in the disclosure

Q8.Under federal Truth-in-Lending Act (TILA) requirements, lenders must provide borrowers with which key disclosure to help them understand the true cost of credit?

• A.Annual Percentage Rate (APR)
• B.Loan-to-value ratio
• C.Private mortgage insurance rate
• D.Property tax assessment

Q9.Under NRS 113, a seller of residential property in Nevada delivers the Seller's Real Property Disclosure Form to the buyer on the fifth day after contract acceptance. The buyer reviews the form and is dissatisfied with several disclosed conditions. What is the buyer's right under NRS 113?

• A.The buyer may rescind the purchase agreement within three days of receiving the disclosure form without penalty.
• B.The buyer has no right to rescind solely because the disclosure was delivered after contract acceptance, as long as it was delivered within five business days.
• C.The buyer must submit a written objection within 24 hours or waive all rescission rights.
• D.The buyer may rescind only if the undisclosed defects exceed $1,000 in estimated repair costs.

Q10.Under federal fair housing law, when a dual agent represents both buyer and seller in a transaction, which fiduciary duty presents the greatest legal challenge in maintaining compliance with the Fair Housing Act?

• A.The duty of confidentiality regarding financial information
• B.The duty of reasonable care in property inspections
• C.The duty of accounting for earnest money deposits
• D.The duty of loyalty when one party makes discriminatory remarks about protected classes

Q11.Under the Fair Housing Act, housing for older persons is exempt from familial status protections if the housing is intended for and solely occupied by persons who are:

• A.60 years of age or older
• B.65 years of age or older
• C.70 years of age or older
• D.55 years of age or older

Q12.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.

Q13.A broker is listing a home built in 1976. Federal law requires the broker to ensure that the seller provides buyers with a specific disclosure and an opportunity to conduct an inspection before the buyer is obligated under the contract. Which federal regulation governs this requirement?

• A.EPA/HUD Lead-Based Paint Disclosure Rule (40 CFR Part 745)
• B.CERCLA Superfund liability notice requirements
• C.The Residential Lead-Based Paint Hazard Reduction Act — Section 1018 only applies to post-1978 housing
• D.RESPA Section 5 — Special Information Booklet requirement

Q14.A buyer in Nevada submits an offer with an earnest money deposit check. The listing broker receives the check on a Monday. Under Nevada law, by when must the broker deposit or otherwise properly handle the earnest money?

• A.Within 24 hours of receipt.
• B.Within 3 banking days of receipt.
• C.Within 5 calendar days of receipt.
• D.Within 10 business days of receipt.

Q15.A buyer with a disability wants to install grab bars in a condo bathroom. The HOA prohibits all modifications. What right does the buyer have under the Fair Housing Act?

• A.None — a blanket no-modification rule applies equally and is therefore lawful
• B.The right to make reasonable modifications at their own expense; the HOA may require restoration upon move-out
• C.The HOA must pay for the modifications as a required reasonable accommodation
• D.This right applies only in properties built after 1991