Free Nevada Property Practice Test — LicenseIQ

Question 1

Who appoints members of the Nevada Real Estate Commission?

Accepted Answer

Commission members are appointed by the Governor. The Administrator runs the Division but does not appoint the Commission, and a trade association has no appointment power.

Question 2

A buyer obtains a $70,000 fraud judgment against a salesperson and cannot collect any of it. What is the most the Real Estate Education, Research and Recovery Fund will pay on that judgment?

Accepted Answer

The Fund pays unpaid actual damages up to $25,000 per judgment. The $100,000 figure is the aggregate limit for all claims against one licensee, not the per-judgment cap.

Question 3

Adverse possession allows someone to acquire title by:

Accepted Answer

Adverse possession requires open, notorious, exclusive, continuous and hostile use for the statutory period. A tenant's possession is permissive, not hostile. (Reclassified to section 1 / CORE.)

Question 4

The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

Accepted Answer

Value requires Demand, Utility, Scarcity and Transferability.

Question 5

A home was the site of a felony burglary three years ago. Under NRS 40.770, the burglary:

Accepted Answer

NRS 40.770 provides that the site of a felony is not material, except a felony involving methamphetamine manufacturing that was not remediated.

Question 6

What is the maximum administrative fine the Nevada Real Estate Commission may impose?

Accepted Answer

NRS 645.630 authorizes a fine of not more than $10,000 for each violation, along with suspension, revocation, conditions or any combination.

Question 7

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 8

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 9

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 10

In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

Accepted Answer

Seisin = ownership and right to convey. Quiet enjoyment protects against superior title claims; further assurance obligates the grantor to cure defects; warranty forever defends title against all claims.

Question 11

A Clark County lot sells for $80,250. What is the real property transfer tax?

Accepted Answer

Tax is charged per $500 or fraction thereof. $80,250 ÷ $500 = 160.5, which rounds up to 161 units. 161 × $2.55 = $410.55. $409.28 prorates the fraction instead of rounding up.

Question 12

An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

Accepted Answer

Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.

Question 13

Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

Accepted Answer

When taxes are paid in arrears, the buyer will pay the full bill later, so the seller is charged (debit) and the buyer credited for the seller's portion.

Question 14

A listing agreement states it continues 'until the property is sold.' Under Nevada law, this is:

Accepted Answer

NRS 645.633(1)(f) makes it a disciplinary ground to fail to include a fixed date of expiration in a written brokerage agreement, and NRS 645.320 requires a definite termination.

Question 15

A brokerage collects a $750 advance fee to market a property. Within what time must it provide the client an accounting of how the money was used?

Accepted Answer

NRS 645.322 requires an accounting of the use of advance fee money within 3 months after collection. The Division may also demand an accounting.

Question 16

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 17

A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

Accepted Answer

A variance grants relief from a specific zoning requirement; a setback deviation is an area variance. A building permit only authorizes construction that complies with the rules.

Question 18

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 19

The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

Accepted Answer

Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.

Question 20

A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

Accepted Answer

Fair housing law requires reasonable accommodations for persons with disabilities, including service animals despite no-pet rules.

Question 21

Under NRS 40.770, a property where methamphetamine was manufactured is treated as immaterial only if:

Accepted Answer

NRS 40.770 treats meth manufacturing as an exception to the felony rule unless the materials were removed or remediated by a certified or licensed entity or the health board deemed the property safe.

Question 22

In a mortgage, the borrower who pledges the property as security is the:

Accepted Answer

The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.

Question 23

A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

Accepted Answer

Annual tax = $312,000 x 0.0225 = $7,020; quarterly = $7,020 / 4 = $1,755.

Question 24

The government's power to take private property for public use with just compensation is:

Accepted Answer

Eminent domain (exercised through condemnation) allows taking for public use with just compensation. Escheat applies when an owner dies without a will or heirs.

Question 25

May a Nevada licensee advertise a specific property that is exclusively listed with another broker?

Accepted Answer

NAC 645.610 prohibits advertising a property exclusively listed with another broker without the listing broker's prior written consent, which may not be given or withheld without the owner's knowledge.

Nevada real estate property practice test

1. Who appoints members of the Nevada Real Estate Commission?

2. A buyer obtains a $70,000 fraud judgment against a salesperson and cannot collect any of it. What is the most the Real Estate Education, Research and Recovery Fund will pay on that judgment?

3. Adverse possession allows someone to acquire title by:

4. The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

5. A home was the site of a felony burglary three years ago. Under NRS 40.770, the burglary:

6. What is the maximum administrative fine the Nevada Real Estate Commission may impose?

7. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

8. In a lease, the tenant holds a estate and the landlord holds a .

9. A life estate is measured by:

10. In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

11. A Clark County lot sells for $80,250. What is the real property transfer tax?

12. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

13. Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

14. A listing agreement states it continues 'until the property is sold.' Under Nevada law, this is:

15. A brokerage collects a $750 advance fee to market a property. Within what time must it provide the client an accounting of how the money was used?

16. Which document is recorded in the county records and makes the property collateral for a loan?

17. A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

18. 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?

19. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

20. A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

21. Under NRS 40.770, a property where methamphetamine was manufactured is treated as immaterial only if:

22. In a mortgage, the borrower who pledges the property as security is the:

23. A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

24. The government's power to take private property for public use with just compensation is:

25. May a Nevada licensee advertise a specific property that is exclusively listed with another broker?

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