Free Nevada Agency Practice Test — LicenseIQ

Question 1

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 2

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 3

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 4

Under NAC 645.637, a licensee must disclose in writing the licensee's relationship as agent or status as principal:

Accepted Answer

NAC 645.637 requires written disclosure to the client and any unrepresented party as soon as practicable but no later than the signing of any written document, confirmed in a separate provision of the purchase agreement.

Question 5

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 6

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 7

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 8

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 9

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 10

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 11

Two licensees from the same brokerage are assigned to opposite sides of a sale. The buyer's licensee tells the seller's licensee that the buyer is pre-approved well above the offer price. Which is correct?

Accepted Answer

Under NRS 645.253, assigned licensees may disclose a client's confidential information only to the broker. Being in the same brokerage does not permit sharing with the other side's licensee.

Question 12

A buyer is asked to sign a Consent to Act so her agent can also represent the seller. The buyer refuses. Which option does the Consent to Act form recognize?

Accepted Answer

Form 524 notes that consent is voluntary and a party may represent themselves, hire another agent, or ask the broker to assign another licensee. Statutory duties to all parties never disappear.

Question 13

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 14

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 15

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 16

A buyer's agent wants to discuss an offer directly with a seller who has an exclusive right to sell listing with another broker. Under NRS 645.635, what is required?

Accepted Answer

NRS 645.635(2) prohibits negotiating directly with another broker's exclusive client, unless permission in writing has been obtained from the other broker. The seller's consent does not substitute for the broker's.

Question 17

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 18

With the listing broker's written permission, a buyer's agent negotiates directly with the listing broker's seller. What relationship does that create between the buyer's agent and the seller?

Accepted Answer

NRS 645.0045(2) excludes from 'agency' a relationship arising solely from negotiations or communications with another broker's client made with that broker's written permission. The buyer's agent still represents only the buyer.

Question 19

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 20

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 21

Under NRS 645.252, a licensee acting as an agent must disclose to EACH party, as soon as practicable:

Accepted Answer

Disclosure of each compensation source is owed to all parties. A client's motivation and bottom-line price are confidential client information that must not be disclosed.

Question 22

A seller tells her listing agent she must close within 45 days because of a job transfer. The buyer's agent asks the listing agent whether the seller is in a hurry. The listing agent should:

Accepted Answer

A client's motivation is confidential under NRS 645.254 and the Division's forms. The duty to disclose material facts concerns the property, not the client's personal reasons. The broker cannot authorize disclosure; only the client (in writing) or a court can.

Question 23

A broker assigns one affiliated licensee to the seller and a different affiliated licensee to the buyer in the same transaction. Under NRS 645.253:

Accepted Answer

NRS 645.253 exempts assigned agents from the 645.252(1)(d) consent requirement, and restricts confidential disclosures to the broker only. The broker, who supervises both, may know both sides' confidences.

Question 24

A seller's agent never inspected the property but noticed a fresh patch over water-stained drywall at the listing appointment. The agent said nothing to buyers. Which statement is correct?

Accepted Answer

NRS 645.252 relieves a licensee of any duty to investigate, but still requires disclosure of material facts the licensee knows or should have known with reasonable care. That duty runs to all parties, not only clients.

Question 25

A buyer asks the agent to write a $380,000 price on the copy of the contract sent to the lender, though the actual price is $350,000. Under NRS 645.635, this is:

Accepted Answer

NRS 645.635(5) prohibits representing to a lender or other interested party a price higher than the actual price or terms different from those actually agreed.

Nevada real estate agency practice test

1. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

2. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

3. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

4. Under NAC 645.637, a licensee must disclose in writing the licensee's relationship as agent or status as principal:

5. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

6. Which statement about dual agency is correct?

7. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

8. An agency relationship can be terminated by all of the following EXCEPT:

9. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

10. The client a broker represents is the:

11. Two licensees from the same brokerage are assigned to opposite sides of a sale. The buyer's licensee tells the seller's licensee that the buyer is pre-approved well above the offer price. Which is correct?

12. A buyer is asked to sign a Consent to Act so her agent can also represent the seller. The buyer refuses. Which option does the Consent to Act form recognize?

13. A material defect that a seller/agent must disclose is one that:

14. A property manager owes fiduciary duties primarily to the:

15. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

16. A buyer's agent wants to discuss an offer directly with a seller who has an exclusive right to sell listing with another broker. Under NRS 645.635, what is required?

17. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

18. With the listing broker's written permission, a buyer's agent negotiates directly with the listing broker's seller. What relationship does that create between the buyer's agent and the seller?

19. The best way to create an agency relationship is a(n):

20. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

21. Under NRS 645.252, a licensee acting as an agent must disclose to EACH party, as soon as practicable:

22. A seller tells her listing agent she must close within 45 days because of a job transfer. The buyer's agent asks the listing agent whether the seller is in a hurry. The listing agent should:

23. A broker assigns one affiliated licensee to the seller and a different affiliated licensee to the buyer in the same transaction. Under NRS 645.253:

24. A seller's agent never inspected the property but noticed a fresh patch over water-stained drywall at the listing appointment. The agent said nothing to buyers. Which statement is correct?

25. A buyer asks the agent to write a $380,000 price on the copy of the contract sent to the lender, though the actual price is $350,000. Under NRS 645.635, this is:

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