NEVADA REAL ESTATE BROKER EXAM|ALL QUESTIONS AND
ANSWERS(VERIFIED ANSWERS) PLUS DETAILED RATIONALES |
COMPLETE STUDY GUIDE | DOWNLOAD INSTANT PDF 2027-
2028-LATEST STUDYGUIDE
1. A real estate broker in Las Vegas enters into an exclusive right-to-sell listing agreement
with a commercial property owner. Three weeks later, the owner sells the property
independently to a lifelong friend without any assistance from the broker. What is the
broker's legal entitlement regarding compensation under this specific agreement type?
A. The broker is entitled to zero commission because they did not procure the ultimate buyer
B. The broker is entitled to the full agreed commission because an exclusive right-to-sell
agreement guarantees compensation regardless of who procures the buyer
C. The broker is only entitled to reimbursement for direct out-of-pocket marketing expenses
D. The listing contract is rendered voidable by unilateral conveyance
Answer: B
Rationale: An exclusive right-to-sell listing grants the broker the absolute right to collect a
commission if the property sells during the contract term, regardless of whether the buyer was
found by the broker, another agent, or the seller directly.
2. A residential tenant in Reno requests that the landlord install grab bars in the bathroom
shower to accommodate a physical disability. The landlord demands that the tenant pay
for the installation and sign an agreement promising to restore the bathroom to its original
condition at the end of the tenancy. Under federal fair housing guidelines, is this landlord's
demand lawful?
A. No, landlords must pay for all requested structural modifications for disabled tenants
B. Yes, a landlord may permit a disabled tenant to make reasonable modifications at their own
expense and may condition permission on a reasonable restoration agreement
C. No, structural modifications of any kind are strictly prohibited in rental units
D. Yes, but the landlord must also absorb the future removal costs
Answer: B
Rationale: Under the Fair Housing Act, a landlord must permit a disabled tenant to make
reasonable modifications at their own expense, and for interior modifications, may require the
tenant to restore the premises to its original condition upon vacating.
3. An investor purchases an apartment building for $1,200,000, projecting an annual net
operating income of $96,000. What is the implied capitalization rate for this investment
property?
,A. 6.5 percent
B. 7.0 percent
C. 8.0 percent
D. 9.5 percent
Answer: C
Rationale: The capitalization rate is determined by dividing the net operating income by the
property value ($96,000 / $1,200,000 = 0.08 or 8.0%).
4. A Nevada real estate licensee is acting as a dual agent in a residential transaction with
the written consent of both buyer and seller. During negotiations, the buyer privately
discloses to the agent that they are willing to pay up to $20,000 more than their current
written offer if necessary. What is the agent's strict legal obligation regarding this
confidential pricing information?
A. The agent must immediately disclose this to the seller to fulfill the duty of loyalty
B. The agent must maintain confidentiality and conceal this information because dual agency
restricts the disclosure of maximum willingness to pay without explicit written authorization
C. The agent should negotiate a higher commission split with the broker using the extra funds
D. The agent must withdraw from representation immediately
Answer: B
Rationale: Dual agents owe fiduciary duties to both parties and are strictly prohibited from
disclosing confidential information such as a buyer's willingness to pay a higher price or a
seller's bottom-line acceptable price without explicit written permission.
5. Which document transfers legal ownership of real property from a grantor to a grantee
while containing no warranties or covenants whatsoever regarding the quality of the title?
A. General warranty deed
B. Special warranty deed
C. Quitclaim deed
D. Bargain and sale deed with covenants
Answer: C
Rationale: A quitclaim deed conveys whatever interest the grantor currently holds in the
property without any warranties, guarantees, or covenants of title.
6. A licensed salesperson in Henderson receives a cash bonus directly from a satisfied
homebuyer for exceptional service during a complex closing. What regulatory rule governs
this payment under Nevada real estate law?
A. The payment is fully legal if reported on annual tax filings
, B. The payment violates state law because all commissions and compensation must flow
exclusively through the salesperson's sponsoring broker
C. The salesperson may accept the bonus provided the broker is notified within 48 hours
D. Cash bonuses from clients are exempt from brokerage oversight
Answer: B
Rationale: Nevada law mandates that salespersons and associate brokers can only accept
compensation or commissions for real estate services directly through their licensed employing
broker.
7. A parcel of land is measured using the rectangular survey system and is described as the
South half of the North half of the Northwest quarter of Section 14. How many total acres
comprise this specific tract?
A. 20 acres
B. 40 acres
C. 80 acres
D. 160 acres
Answer: B
Rationale: A standard section contains 640 acres. A quarter section is 160 acres ($$).
The North half of that quarter is 80 acres ($$), and the South half of that portion is 40
acres ($$).
8. A homeowner falls behind on property tax payments for two consecutive years in Clark
County. The county initiates tax lien procedures. What priority status do real estate
property tax liens hold over existing recorded mortgages and deeds of trust?
A. Junior priority behind all recorded institutional mortgages
B. Superior (first) priority over all other liens, including prior recorded mortgages and deeds of
trust
C. Equal priority alongside mechanic's liens
D. No priority until judicial foreclosure is finalized
Answer: B
Rationale: Property tax and special assessment liens take superior legal priority over all other
private liens, encumbrances, and mortgages, regardless of recording date.
9. A property manager at a large apartment complex routinely screens out prospective
tenants who receive housing vouchers through government assistance programs. What fair
housing violation or legal issue does this practice raise?
A. Violation of federal race discrimination statutes
, B. Potential source of income discrimination where prohibited by state or local law, and
disparate impact concerns under the Fair Housing Act
C. Mandatory violation of federal antitrust laws
D. Permissible business risk management under landlord autonomy rules
Answer: B
Rationale: While federal law does not explicitly list source of income as a protected class,
many state and local jurisdictions prohibit source of income discrimination, and blanket
rejections can create discriminatory disparate impact under the Fair Housing Act.
10. A buyer and seller enter into a binding purchase contract for a single-family home.
Before closing, a severe flash flood destroys the dwelling entirely. Under the standard risk
of loss provisions in real estate contracts (such as the Uniform Vendor and Purchaser Risk
Act), who bears the loss?
A. The buyer, because equitable title transferred immediately upon contract execution
B. The seller, because legal title and possession remained with them at the time of the
destruction, allowing the buyer to rescind the contract
C. The escrow agent due to bond default
D. The municipal government through disaster relief funds
Answer: B
Rationale: Under standard vendor and purchaser risk statutes, if a material part of the
property is destroyed before legal title or possession is transferred, the seller bears the risk of
loss and cannot enforce the contract against the buyer.
11. Which economic characteristic of real estate refers to the fact that land cannot be
moved, making investors subject to local neighborhood economic shifts and municipal
zoning changes?
A. Scarcity
B. Situs (location preference)
C. Immovability (fixity)
D. Modification
Answer: C
Rationale: Fixity or immovability means that real estate is geographically fixed in location,
tying its economic value directly to changes and conditions in the surrounding local market.
12. A broker decides to open a branch office in an expanding suburb of Las Vegas. What
primary statutory requirement must be met regarding this branch office under Nevada
real estate regulations?
ANSWERS(VERIFIED ANSWERS) PLUS DETAILED RATIONALES |
COMPLETE STUDY GUIDE | DOWNLOAD INSTANT PDF 2027-
2028-LATEST STUDYGUIDE
1. A real estate broker in Las Vegas enters into an exclusive right-to-sell listing agreement
with a commercial property owner. Three weeks later, the owner sells the property
independently to a lifelong friend without any assistance from the broker. What is the
broker's legal entitlement regarding compensation under this specific agreement type?
A. The broker is entitled to zero commission because they did not procure the ultimate buyer
B. The broker is entitled to the full agreed commission because an exclusive right-to-sell
agreement guarantees compensation regardless of who procures the buyer
C. The broker is only entitled to reimbursement for direct out-of-pocket marketing expenses
D. The listing contract is rendered voidable by unilateral conveyance
Answer: B
Rationale: An exclusive right-to-sell listing grants the broker the absolute right to collect a
commission if the property sells during the contract term, regardless of whether the buyer was
found by the broker, another agent, or the seller directly.
2. A residential tenant in Reno requests that the landlord install grab bars in the bathroom
shower to accommodate a physical disability. The landlord demands that the tenant pay
for the installation and sign an agreement promising to restore the bathroom to its original
condition at the end of the tenancy. Under federal fair housing guidelines, is this landlord's
demand lawful?
A. No, landlords must pay for all requested structural modifications for disabled tenants
B. Yes, a landlord may permit a disabled tenant to make reasonable modifications at their own
expense and may condition permission on a reasonable restoration agreement
C. No, structural modifications of any kind are strictly prohibited in rental units
D. Yes, but the landlord must also absorb the future removal costs
Answer: B
Rationale: Under the Fair Housing Act, a landlord must permit a disabled tenant to make
reasonable modifications at their own expense, and for interior modifications, may require the
tenant to restore the premises to its original condition upon vacating.
3. An investor purchases an apartment building for $1,200,000, projecting an annual net
operating income of $96,000. What is the implied capitalization rate for this investment
property?
,A. 6.5 percent
B. 7.0 percent
C. 8.0 percent
D. 9.5 percent
Answer: C
Rationale: The capitalization rate is determined by dividing the net operating income by the
property value ($96,000 / $1,200,000 = 0.08 or 8.0%).
4. A Nevada real estate licensee is acting as a dual agent in a residential transaction with
the written consent of both buyer and seller. During negotiations, the buyer privately
discloses to the agent that they are willing to pay up to $20,000 more than their current
written offer if necessary. What is the agent's strict legal obligation regarding this
confidential pricing information?
A. The agent must immediately disclose this to the seller to fulfill the duty of loyalty
B. The agent must maintain confidentiality and conceal this information because dual agency
restricts the disclosure of maximum willingness to pay without explicit written authorization
C. The agent should negotiate a higher commission split with the broker using the extra funds
D. The agent must withdraw from representation immediately
Answer: B
Rationale: Dual agents owe fiduciary duties to both parties and are strictly prohibited from
disclosing confidential information such as a buyer's willingness to pay a higher price or a
seller's bottom-line acceptable price without explicit written permission.
5. Which document transfers legal ownership of real property from a grantor to a grantee
while containing no warranties or covenants whatsoever regarding the quality of the title?
A. General warranty deed
B. Special warranty deed
C. Quitclaim deed
D. Bargain and sale deed with covenants
Answer: C
Rationale: A quitclaim deed conveys whatever interest the grantor currently holds in the
property without any warranties, guarantees, or covenants of title.
6. A licensed salesperson in Henderson receives a cash bonus directly from a satisfied
homebuyer for exceptional service during a complex closing. What regulatory rule governs
this payment under Nevada real estate law?
A. The payment is fully legal if reported on annual tax filings
, B. The payment violates state law because all commissions and compensation must flow
exclusively through the salesperson's sponsoring broker
C. The salesperson may accept the bonus provided the broker is notified within 48 hours
D. Cash bonuses from clients are exempt from brokerage oversight
Answer: B
Rationale: Nevada law mandates that salespersons and associate brokers can only accept
compensation or commissions for real estate services directly through their licensed employing
broker.
7. A parcel of land is measured using the rectangular survey system and is described as the
South half of the North half of the Northwest quarter of Section 14. How many total acres
comprise this specific tract?
A. 20 acres
B. 40 acres
C. 80 acres
D. 160 acres
Answer: B
Rationale: A standard section contains 640 acres. A quarter section is 160 acres ($$).
The North half of that quarter is 80 acres ($$), and the South half of that portion is 40
acres ($$).
8. A homeowner falls behind on property tax payments for two consecutive years in Clark
County. The county initiates tax lien procedures. What priority status do real estate
property tax liens hold over existing recorded mortgages and deeds of trust?
A. Junior priority behind all recorded institutional mortgages
B. Superior (first) priority over all other liens, including prior recorded mortgages and deeds of
trust
C. Equal priority alongside mechanic's liens
D. No priority until judicial foreclosure is finalized
Answer: B
Rationale: Property tax and special assessment liens take superior legal priority over all other
private liens, encumbrances, and mortgages, regardless of recording date.
9. A property manager at a large apartment complex routinely screens out prospective
tenants who receive housing vouchers through government assistance programs. What fair
housing violation or legal issue does this practice raise?
A. Violation of federal race discrimination statutes
, B. Potential source of income discrimination where prohibited by state or local law, and
disparate impact concerns under the Fair Housing Act
C. Mandatory violation of federal antitrust laws
D. Permissible business risk management under landlord autonomy rules
Answer: B
Rationale: While federal law does not explicitly list source of income as a protected class,
many state and local jurisdictions prohibit source of income discrimination, and blanket
rejections can create discriminatory disparate impact under the Fair Housing Act.
10. A buyer and seller enter into a binding purchase contract for a single-family home.
Before closing, a severe flash flood destroys the dwelling entirely. Under the standard risk
of loss provisions in real estate contracts (such as the Uniform Vendor and Purchaser Risk
Act), who bears the loss?
A. The buyer, because equitable title transferred immediately upon contract execution
B. The seller, because legal title and possession remained with them at the time of the
destruction, allowing the buyer to rescind the contract
C. The escrow agent due to bond default
D. The municipal government through disaster relief funds
Answer: B
Rationale: Under standard vendor and purchaser risk statutes, if a material part of the
property is destroyed before legal title or possession is transferred, the seller bears the risk of
loss and cannot enforce the contract against the buyer.
11. Which economic characteristic of real estate refers to the fact that land cannot be
moved, making investors subject to local neighborhood economic shifts and municipal
zoning changes?
A. Scarcity
B. Situs (location preference)
C. Immovability (fixity)
D. Modification
Answer: C
Rationale: Fixity or immovability means that real estate is geographically fixed in location,
tying its economic value directly to changes and conditions in the surrounding local market.
12. A broker decides to open a branch office in an expanding suburb of Las Vegas. What
primary statutory requirement must be met regarding this branch office under Nevada
real estate regulations?
