NSAR / NSREC Real Estate Licensing
Exam
300 High-Yield Questions & Answers · 2026/2027 Guidelines · A+ Verified
About This Exam Preparation Guide
This comprehensive practice examination is designed for individuals preparing for the Nova
Scotia Association of REALTORS® (NSAR) and Nova Scotia Real Estate Commission
(NSREC) licensing exams. It covers all key domains including:
Real Estate Law & Ethics: Fiduciary duties, disclosure requirements, NSREC bylaws,
and the Real Estate Trading Act.
Property Valuation & Appraisal: Cost, income, and direct comparison approaches;
market value assumptions.
Contracts & Agency: Buyer and seller representation agreements, legal contracts,
conditions, and the "time is of the essence" clause.
Regulatory Framework: NSREC structure, licensing requirements (salesperson and
broker), continuing education, and the Challenge Exam process.
Updated for the 2026–2027 academic year, this guide includes 300 original, exam-style
questions with detailed rationales and explanations for incorrect answers.
Real Estate Law & Ethics (55 questions)
,1. Which of the following is NOT one of the 6 primary fiduciary duties owed to a
client under NSREC standards?
A. Disclosure
B. Competency
C. Accountability
D. Fair Housing
✓ Correct answer: D. Fair Housing
Rationale: The six primary fiduciary duties are Disclosure, Competency, Accountability,
Loyalty, Confidentiality, and Obedience (often remembered by the acronym DCCOLA). "Fair
Housing" is a legal requirement but is not classified as a fiduciary duty in this context
[citation:2][citation:3].
Why the others are wrong:
A: Disclosure is a core fiduciary duty.
B: Competency is a core fiduciary duty.
C: Accountability is a core fiduciary duty.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
2. Under NSREC bylaws, the "4 D's" of agency disclosure are:
A. Decide, Disclose, Document, Do
B. Define, Document, Defend, Deliver
C. Discover, Disclose, Discuss, Decide
D. Determine, Disclose, Document, Defend
✓ Correct answer: A. Decide, Disclose, Document, Do
Rationale: The "4 D's" of agency disclosure are Decide, Disclose, Document, and Do
[citation:3]. This framework ensures that licensees properly manage disclosure obligations,
especially in dual agency situations, by making an informed decision, disclosing it to all parties,
documenting the disclosure, and then proceeding with the transaction.
Why the others are wrong:
B: Incorrect sequence and terms.
C: Incorrect sequence and terms.
D: Incorrect sequence and terms.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
,3. What does the acronym "DCCOLA" stand for in the context of fiduciary duties?
A. Disclosure, Competency, Confidentiality, Obedience, Loyalty, Accountability
B. Disclosure, Confidentiality, Competency, Obedience, Loyalty, Accountability
C. Disclosure, Competency, Confidentiality, Obedience, Accountability, Loyalty
D. Disclosure, Confidentiality, Competency, Accountability, Loyalty, Obedience
✓ Correct answer: A. Disclosure, Competency, Confidentiality, Obedience, Loyalty,
Accountability
Rationale: DCCOLA stands for Disclosure, Competency, Confidentiality, Obedience, Loyalty,
and Accountability [citation:2]. These are the six core fiduciary duties. The order may vary, but
the letters are consistent.
Why the others are wrong:
B: Incorrect order; Competency should precede Confidentiality.
C: Incorrect order; Loyalty and Accountability are out of sequence.
D: Incorrect order; Accountability should not precede Loyalty.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
4. Which of the following is a correct statement regarding the duty of
confidentiality?
A. Confidentiality ends when the transaction closes.
B. A licensee must disclose confidential information if legally obligated to do so.
C. Confidentiality is not required if the client gives verbal consent.
D. Confidentiality only applies to financial information.
✓ Correct answer: B. A licensee must disclose confidential information if legally obligated to
do so.
Rationale: The duty of confidentiality requires a licensee not to disclose information about the
client that would adversely impact them, unless legally obligated to do so [citation:2][citation:3].
This duty continues even after the agency relationship ends. Written consent is required to waive
confidentiality.
Why the others are wrong:
A: Confidentiality continues after the transaction closes.
C: Written consent is required to waive confidentiality.
D: Confidentiality applies to all material information, not just financial.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
, 5. A seller tells their agent they will accept $350,000 but want to list at $379,900.
The agent lists at $379,900 without comment. Is this permissible?
A. No—the agent must disclose the minimum acceptable price to all buyers.
B. Yes—the agent has no duty to disclose the seller's bottom line.
C. Yes, only if the seller signs a waiver.
D. No—this is a fraudulent misrepresentation.
✓ Correct answer: B. Yes—the agent has no duty to disclose the seller's bottom line.
Rationale: The agent owes a duty of confidentiality and loyalty to the seller [citation:2]
[citation:3]. The seller's bottom line is confidential information that the agent is not permitted to
disclose without the seller's consent. The agent must follow the seller's lawful instructions to list
at the higher price.
Why the others are wrong:
A: Disclosing the minimum price would breach confidentiality.
C: A waiver is not required; the agent cannot disclose without consent.
D: This is not misrepresentation; it is following the seller's instructions.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
6. A salesperson tells a potential buyer that "the roof is only 5 years old" based on
the seller's statement, but has no documentation. The roof is actually 20 years old.
Is the salesperson liable?
A. No, because they relied on the seller.
B. Yes—for failing to verify a factual assertion that a reasonable agent would check.
C. Only if they charged a fee.
D. No, because the buyer should have inspected.
✓ Correct answer: B. Yes—for failing to verify a factual assertion that a reasonable agent
would check.
Rationale: The NSREC Code of Ethics requires licensees to exercise reasonable care and skill
and to verify material facts before repeating them as true [citation:2]. Relying solely on the
seller's statement without any verification may be considered negligent, especially for a material
fact like roof age.
Why the others are wrong:
A: Reliance on the seller does not absolve the agent of the duty to verify.
C: Liability is not dependent on fee structure.
D: While a buyer can inspect, the agent has an independent duty to be accurate.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
Exam
300 High-Yield Questions & Answers · 2026/2027 Guidelines · A+ Verified
About This Exam Preparation Guide
This comprehensive practice examination is designed for individuals preparing for the Nova
Scotia Association of REALTORS® (NSAR) and Nova Scotia Real Estate Commission
(NSREC) licensing exams. It covers all key domains including:
Real Estate Law & Ethics: Fiduciary duties, disclosure requirements, NSREC bylaws,
and the Real Estate Trading Act.
Property Valuation & Appraisal: Cost, income, and direct comparison approaches;
market value assumptions.
Contracts & Agency: Buyer and seller representation agreements, legal contracts,
conditions, and the "time is of the essence" clause.
Regulatory Framework: NSREC structure, licensing requirements (salesperson and
broker), continuing education, and the Challenge Exam process.
Updated for the 2026–2027 academic year, this guide includes 300 original, exam-style
questions with detailed rationales and explanations for incorrect answers.
Real Estate Law & Ethics (55 questions)
,1. Which of the following is NOT one of the 6 primary fiduciary duties owed to a
client under NSREC standards?
A. Disclosure
B. Competency
C. Accountability
D. Fair Housing
✓ Correct answer: D. Fair Housing
Rationale: The six primary fiduciary duties are Disclosure, Competency, Accountability,
Loyalty, Confidentiality, and Obedience (often remembered by the acronym DCCOLA). "Fair
Housing" is a legal requirement but is not classified as a fiduciary duty in this context
[citation:2][citation:3].
Why the others are wrong:
A: Disclosure is a core fiduciary duty.
B: Competency is a core fiduciary duty.
C: Accountability is a core fiduciary duty.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
2. Under NSREC bylaws, the "4 D's" of agency disclosure are:
A. Decide, Disclose, Document, Do
B. Define, Document, Defend, Deliver
C. Discover, Disclose, Discuss, Decide
D. Determine, Disclose, Document, Defend
✓ Correct answer: A. Decide, Disclose, Document, Do
Rationale: The "4 D's" of agency disclosure are Decide, Disclose, Document, and Do
[citation:3]. This framework ensures that licensees properly manage disclosure obligations,
especially in dual agency situations, by making an informed decision, disclosing it to all parties,
documenting the disclosure, and then proceeding with the transaction.
Why the others are wrong:
B: Incorrect sequence and terms.
C: Incorrect sequence and terms.
D: Incorrect sequence and terms.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
,3. What does the acronym "DCCOLA" stand for in the context of fiduciary duties?
A. Disclosure, Competency, Confidentiality, Obedience, Loyalty, Accountability
B. Disclosure, Confidentiality, Competency, Obedience, Loyalty, Accountability
C. Disclosure, Competency, Confidentiality, Obedience, Accountability, Loyalty
D. Disclosure, Confidentiality, Competency, Accountability, Loyalty, Obedience
✓ Correct answer: A. Disclosure, Competency, Confidentiality, Obedience, Loyalty,
Accountability
Rationale: DCCOLA stands for Disclosure, Competency, Confidentiality, Obedience, Loyalty,
and Accountability [citation:2]. These are the six core fiduciary duties. The order may vary, but
the letters are consistent.
Why the others are wrong:
B: Incorrect order; Competency should precede Confidentiality.
C: Incorrect order; Loyalty and Accountability are out of sequence.
D: Incorrect order; Accountability should not precede Loyalty.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
4. Which of the following is a correct statement regarding the duty of
confidentiality?
A. Confidentiality ends when the transaction closes.
B. A licensee must disclose confidential information if legally obligated to do so.
C. Confidentiality is not required if the client gives verbal consent.
D. Confidentiality only applies to financial information.
✓ Correct answer: B. A licensee must disclose confidential information if legally obligated to
do so.
Rationale: The duty of confidentiality requires a licensee not to disclose information about the
client that would adversely impact them, unless legally obligated to do so [citation:2][citation:3].
This duty continues even after the agency relationship ends. Written consent is required to waive
confidentiality.
Why the others are wrong:
A: Confidentiality continues after the transaction closes.
C: Written consent is required to waive confidentiality.
D: Confidentiality applies to all material information, not just financial.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
, 5. A seller tells their agent they will accept $350,000 but want to list at $379,900.
The agent lists at $379,900 without comment. Is this permissible?
A. No—the agent must disclose the minimum acceptable price to all buyers.
B. Yes—the agent has no duty to disclose the seller's bottom line.
C. Yes, only if the seller signs a waiver.
D. No—this is a fraudulent misrepresentation.
✓ Correct answer: B. Yes—the agent has no duty to disclose the seller's bottom line.
Rationale: The agent owes a duty of confidentiality and loyalty to the seller [citation:2]
[citation:3]. The seller's bottom line is confidential information that the agent is not permitted to
disclose without the seller's consent. The agent must follow the seller's lawful instructions to list
at the higher price.
Why the others are wrong:
A: Disclosing the minimum price would breach confidentiality.
C: A waiver is not required; the agent cannot disclose without consent.
D: This is not misrepresentation; it is following the seller's instructions.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
6. A salesperson tells a potential buyer that "the roof is only 5 years old" based on
the seller's statement, but has no documentation. The roof is actually 20 years old.
Is the salesperson liable?
A. No, because they relied on the seller.
B. Yes—for failing to verify a factual assertion that a reasonable agent would check.
C. Only if they charged a fee.
D. No, because the buyer should have inspected.
✓ Correct answer: B. Yes—for failing to verify a factual assertion that a reasonable agent
would check.
Rationale: The NSREC Code of Ethics requires licensees to exercise reasonable care and skill
and to verify material facts before repeating them as true [citation:2]. Relying solely on the
seller's statement without any verification may be considered negligent, especially for a material
fact like roof age.
Why the others are wrong:
A: Reliance on the seller does not absolve the agent of the duty to verify.
C: Liability is not dependent on fee structure.
D: While a buyer can inspect, the agent has an independent duty to be accurate.
Reference: NSREC Licensing Guides · Real Estate Trading Act (Nova Scotia) · NSAR Standards of Business
Practice · NSREC Official Guidelines.
