Free Nevada State Law Practice Test — LicenseIQ

Question 1

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 2

A licensee receives a $300 payment from a home-warranty company for each policy her buyers purchase, and does not tell her buyers. This is:

Accepted Answer

NRS 645.252(1)(b) requires disclosure of each source of compensation to every party, and NRS 645.633(1)(g) makes undisclosed commissions, rebates or profits grounds for discipline. Routing through the broker is also required.

Question 3

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 4

A salesperson prepares a BPO for a potential seller. In addition to her own name, license number and signature, the BPO must include:

Accepted Answer

NRS 645.2515 requires, for a salesperson or broker-salesperson, the name of the supervising broker, plus disclosure of any interest of the licensee, assumptions, basis, purpose, and date.

Question 5

How long must a licensee keep a client's confidential information after the brokerage agreement is terminated?

Accepted Answer

NRS 645.254(2) bars disclosure of confidential client information for 1 year after revocation or termination of the brokerage agreement, with exceptions for court orders and the client's written permission.

Question 6

Unless otherwise agreed in writing, a Nevada licensee has NO duty to:

Accepted Answer

NRS 645.252(4) lists three things not owed unless agreed in writing: verifying certified experts' statements, inspecting a party's finances, and investigating the property's condition. The other options are affirmative duties owed to everyone.

Question 7

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 8

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 9

On a closing statement, the purchase price is a:

Accepted Answer

The seller receives the price (credit); the buyer owes it (debit).

Question 10

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 11

When applying for a Nevada salesperson license, exam passing results must be dated within what period?

Accepted Answer

The Division requires original state and national passing results dated within the last 12 months. Ninety days applies to a certified license history from another state, not to exam results.

Question 12

A prospective buyer asks a licensee to put a bona fide offer in writing. The licensee:

Accepted Answer

NRS 645.635(7) makes failing to put a bona fide offer in writing at the buyer's request a violation, subject to the offer-presentation waiver exception.

Question 13

Which activity may an unlicensed assistant generally perform?

Accepted Answer

Unlicensed staff may perform clerical tasks like typing licensee-prepared ads, but may not compose ads, negotiate or show property.

Question 14

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 15

Which statement about FHA-insured loans is correct?

Accepted Answer

FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.

Question 16

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 17

Which statement must the written consent for multiple representation include under NRS 645.252?

Accepted Answer

The consent must describe the transaction, state the conflict of interest, state the licensee will not disclose confidential information for 1 year, state that a party is not required to consent, and state the consent is given without coercion.

Question 18

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 19

Under NRS 645.315, every advertisement by a Nevada salesperson for licensed services must include:

Accepted Answer

NRS 645.315 requires the licensee's license number and, for a salesperson, the name of the brokerage. Salespersons may not advertise in their own name alone.

Question 20

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 21

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 22

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 23

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 24

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 25

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Nevada real estate state law practice test

1. 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:

2. A licensee receives a $300 payment from a home-warranty company for each policy her buyers purchase, and does not tell her buyers. This is:

3. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

4. A salesperson prepares a BPO for a potential seller. In addition to her own name, license number and signature, the BPO must include:

5. How long must a licensee keep a client's confidential information after the brokerage agreement is terminated?

6. Unless otherwise agreed in writing, a Nevada licensee has NO duty to:

7. A broker received a 4.2% commission totaling $12,600. What was the sale price?

8. 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?

9. On a closing statement, the purchase price is a:

10. A salesperson receives an earnest money check from a buyer. The salesperson should:

11. When applying for a Nevada salesperson license, exam passing results must be dated within what period?

12. A prospective buyer asks a licensee to put a bona fide offer in writing. The licensee:

13. Which activity may an unlicensed assistant generally perform?

14. A licensee may manage property for an owner for a fee only if there is:

15. Which statement about FHA-insured loans is correct?

16. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

17. Which statement must the written consent for multiple representation include under NRS 645.252?

18. A salesperson wants to buy a FSBO home for his own investment. He must:

19. Under NRS 645.315, every advertisement by a Nevada salesperson for licensed services must include:

20. In a life estate, the person who receives the property when the life tenant dies is the:

21. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

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

23. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

24. A life estate is measured by:

25. When an owner dies with no will and no heirs, the property passes to the state through:

Sources