Free Nevada Real Estate Practice Exam

Q1.Under CERCLA, which defense would most likely protect a current property owner from Superfund liability for pre-existing contamination?

• A.Proving they conducted a Phase I Environmental Assessment before purchase
• B.Demonstrating they meet all requirements of the innocent landowner defense including appropriate inquiry
• C.Showing the contamination occurred more than 10 years before they purchased
• D.Establishing that cleanup costs exceed the property's current market value

Q2.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

Q3.A tenant with a documented disability asks the landlord to allow a live-in caregiver in a unit normally limited to two unrelated adults. The landlord refuses, citing the occupancy rule. Has the landlord violated the FHA?

• A.Yes — failing to grant a reasonable accommodation (waiving the occupancy rule for a caregiver) is itself a violation
• B.No — occupancy limits are facially neutral
• C.Only if the caregiver is a relative
• D.Only if the unit has more than two bedrooms

Q4.Under the EPA's Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. § 4852d), a salesperson is facilitating the sale of a home built in 1978. The seller refuses to provide the required lead-based paint disclosure and insists the salesperson proceed with the sale. What is the salesperson's legal obligation?

• A.The salesperson must follow the seller's instructions, as the seller is the client and has final authority over disclosures made about their own property.
• B.The salesperson must ensure the buyer is provided with the EPA-approved lead hazard information pamphlet and the Lead-Based Paint Disclosure form before the buyer is obligated under the contract, regardless of the seller's objection.
• C.The salesperson must notify the EPA directly that the seller refused to disclose and may then proceed with the transaction.
• D.The disclosure requirement only applies to homes built before 1960, so a 1978 home is not subject to the rule.

Q5.Under the Equal Credit Opportunity Act (ECOA), a mortgage lender is prohibited from discriminating against a loan applicant based on which of the following?

• A.The applicant's current employment status as part-time rather than full-time
• B.The applicant's debt-to-income ratio exceeding lender guidelines
• C.The applicant's receipt of public assistance income as a primary income source
• D.The applicant's insufficient credit history to meet underwriting standards

Q6.Under the Housing for Older Persons Act (HOPA), a community can legally exclude families with children only if it meets one of these qualifying tests:

• A.Any community can exclude children if its CC&Rs say so
• B.(1) HUD-designated 62-and-older housing, (2) 55-and-older with at least 80% of occupied units having one resident 55+ AND published policies AND age verification, OR (3) federally funded elderly housing
• C.Any community over 30 years old qualifies automatically
• D.Communities only need a majority of residents over 50

Q7.Under the federal Truth-in-Lending Act (TILA) and Regulation Z, the Annual Percentage Rate (APR) disclosed to a borrower is best described as which of the following?

• A.The interest rate stated in the promissory note negotiated between the borrower and lender
• B.The total dollar amount of interest paid over the life of the loan
• C.The true cost of credit expressed as a yearly rate, including interest and certain fees and charges
• D.The lender's prime lending rate adjusted for the borrower's credit risk

Q8.Under Nevada Revised Statutes (NRS) 645.252, a Nevada real estate licensee has a duty to disclose known material facts about a property. Which of the following best describes the scope of this duty for a seller's agent?

• A.The licensee must disclose only facts that the seller has expressly authorized the agent to share with buyers.
• B.The licensee must disclose material facts known to the licensee that are not apparent or readily ascertainable by a party and that a reasonable person would want to know.
• C.The licensee must disclose all facts about the property, including those that are easily observable by a buyer during a routine walkthrough.
• D.The licensee's disclosure duty applies only to structural defects and does not extend to neighborhood conditions or environmental hazards.

Q9.A lender denies a mortgage application from a qualified borrower because the property is located in a predominantly minority neighborhood. This practice is best described as:

• A.Blockbusting
• B.Redlining
• C.Steering
• D.Panic peddling

Q10.Under the Fair Housing Act (42 U.S.C. § 3604), sex was added as a protected class in what year?

• A.1968
• B.1974
• C.1988
• D.2016

Q11.Under the Truth in Lending Act (TILA), which disclosure must a lender provide to a borrower that expresses the cost of credit as a yearly rate, including interest, fees, and other charges?

• A.Annual Percentage Rate (APR)
• B.Nominal Interest Rate
• C.Loan-to-Value Ratio
• D.Debt-to-Income Ratio

Q12.When reviewing a title insurance policy, which of the following risks would typically NOT be covered by a standard owner's title insurance policy?

• A.A previously undisclosed easement that affects the property's use
• B.Forged signatures on a deed in the chain of title
• C.An outstanding mortgage that was not properly satisfied of record
• D.Environmental contamination from a prior owner's activities

Q13.A managing broker operates a firm that uses designated agency. The broker assigns Salesperson A as the designated agent for the seller and Salesperson B as the designated agent for the buyer in the same in-house transaction. Midway through escrow, Salesperson A resigns and the broker personally steps in to represent the seller. Which of the following statements MOST accurately describes the legal effect of the broker's direct participation?

• A.The designated agency arrangement collapses into dual agency at the broker level, because the broker, as the principal of the firm with supervisory access to all confidential information, cannot serve as a true single-party advocate; both principals must be re-disclosed and must provide fresh written consent.
• B.The arrangement remains valid designated agency because the broker is merely stepping into Salesperson A's role without changing the underlying agency structure.
• C.The transaction must terminate because a managing broker is prohibited by common law from providing direct representation once designated agency has been established.
• D.The broker may represent the seller as a designated agent without further disclosure, provided the original dual-agency consent form included a clause permitting broker substitution.

Q14.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.

Q15.Under 24 C.F.R. § 100.600(a)(1), how many incidents of quid pro quo harassment are required to establish a fair housing violation?

• A.At least two incidents
• B.Three or more incidents constituting a pattern
• C.Depends on the severity of each incident
• D.One incident is sufficient