NEVADA REAL ESTATE COMMUNITY MANAGER EXAM| ALL
QUESTIONS AND ANSWERS(VERIFIEDANSWERS) PLUS
DETAILED RATIONALES | COMPLETE STUDYGUIDE |
DOWNLOAD INSTANT PDF 2027-2028
1. What is the primary governing authority responsible for licensing and regulating
community managers in Nevada?
A. Nevada Secretary of State
B. Real Estate Division of the Department of Business and Industry
C. Nevada Housing Division
D. Common Interest Community Commission
Answer: B
The Real Estate Division (NRED) under the Department of Business and Industry is directly
responsible for licensing, registering, and disciplining community managers in Nevada
pursuant to NRS 116.
2. Under Nevada law, which entity holds the ultimate decision-making power regarding
community association operations and governance?
A. The hired management company
B. The executive board of directors
C. The community manager
D. The developer or declarant
Answer: B
NRS 116 vests the ultimate authority and fiduciary responsibility for association governance,
policy-making, and financial oversight in the elected executive board of directors.
3. What is the minimum surety bond or insurance requirement for a community manager
in Nevada to protect association funds?
A. Ten thousand dollars
B. Fifty thousand dollars
,C. An amount determined by the Division based on the total amount of money handled
D. A standard one million dollar general liability policy
Answer: C
Nevada regulations require community managers to maintain a fidelity bond or insurance
policy in an amount determined by the Real Estate Division proportional to the funds
managed.
4. When must a community manager disclose any potential conflict of interest to the
executive board?
A. Within thirty days after contract execution
B. Only if a homeowner formally requests the information
C. Prior to entering into any contract or conducting business involving the conflict
D. Annually during the association's budget ratification meeting
Answer: C
Nevada law mandates that a community manager must immediately and fully disclose any
familial, financial, or business relationship with a vendor before entering into related
transactions.
5. Which document establishes the foundational covenants, conditions, and restrictions
(CC&Rs) for a planned community in Nevada?
A. Association Bylaws
B. Articles of Incorporation
C. Recorded Declaration of Covenants, Conditions, and Restrictions
D. Rules and Regulations adopted by the board
Answer: C
The recorded Declaration is the primary master document that runs with the land,
establishing property rights, assessment obligations, and use restrictions.
6. An executive board wishes to pass an emergency rule regarding pool safety due to an
unexpected hazard. According to Nevada law, how must owners be notified?
,A. Thirty days in advance via certified mail
B. Notice must be sent as soon as practicable after the board adopts the emergency rule
C. Emergency rules do not require homeowner notification if passed unanimously
D. Written notice posted on the community website at least fourteen days prior
Answer: B
Under NRS 116, emergency rules can be adopted immediately to protect health and safety,
provided notice is sent to unit owners as soon as practicable afterward.
7. How many days of advance written notice must be provided to unit owners prior to an
executive board meeting, excluding executive sessions?
A. Three days
B. Not less than ten days and not more than sixty days
C. Exactly seven days
D. Fourteen days
Answer: B
NRS 116 mandates that owners receive notice of regular and special board meetings at least
ten days in advance, up to a maximum of sixty days.
8. When is an executive board permitted to hold a closed executive session meeting?
A. To discuss general landscaping contract renewals
B. To review unit owner delinquency reports and legal strategy
C. To vote on the annual operating budget
D. To discuss community social event planning
Answer: B
Executive sessions are legally restricted to sensitive matters such as legal consultations,
personnel issues, and delinquent owner hearings to protect privacy.
9. What is the maximum late fee an association may assess on a delinquent assessment
under Nevada law?
, A. Twenty-five dollars or ten percent of the delinquent amount, whichever is greater
B. Fifteen dollars or five percent of the delinquent amount, whichever is greater
C. Ten percent of the unpaid assessment or a statutory maximum flat fee specified by regulation
D. Any amount established arbitrarily by the management agreement
Answer: C
Nevada law limits late charges to a reasonable amount specified in the governing documents
or statutory caps, typically not exceeding ten percent of the overdue installment or a flat fee.
10. Before an association can record a lien against a property for unpaid assessments, what
notice must be sent to the owner?
A. Notice of Intent to Foreclose sent via electronic mail only
B. Notice of Delinquent Assessment providing at least thirty days to pay
C. A simple reminder letter included with the monthly statement
D. Summons and complaint filed directly in district court
Answer: B
NRS 116 requires a formal Notice of Delinquent Assessment to be mailed to the owner
providing a statutory cure period before a lien can be recorded.
11. Which financial document must be prepared and distributed to all unit owners within a
specific timeframe following the close of the fiscal year?
A. Internal bank reconciliation printouts
B. Audited or reviewed financial statement prepared by an independent certified public
accountant
C. Daily cash flow ledger
D. Manager performance appraisal report
Answer: B
Nevada law requires associations of a certain size to distribute annual financial statements,
often compiled, reviewed, or audited by an independent CPA depending on annual gross
revenue.
QUESTIONS AND ANSWERS(VERIFIEDANSWERS) PLUS
DETAILED RATIONALES | COMPLETE STUDYGUIDE |
DOWNLOAD INSTANT PDF 2027-2028
1. What is the primary governing authority responsible for licensing and regulating
community managers in Nevada?
A. Nevada Secretary of State
B. Real Estate Division of the Department of Business and Industry
C. Nevada Housing Division
D. Common Interest Community Commission
Answer: B
The Real Estate Division (NRED) under the Department of Business and Industry is directly
responsible for licensing, registering, and disciplining community managers in Nevada
pursuant to NRS 116.
2. Under Nevada law, which entity holds the ultimate decision-making power regarding
community association operations and governance?
A. The hired management company
B. The executive board of directors
C. The community manager
D. The developer or declarant
Answer: B
NRS 116 vests the ultimate authority and fiduciary responsibility for association governance,
policy-making, and financial oversight in the elected executive board of directors.
3. What is the minimum surety bond or insurance requirement for a community manager
in Nevada to protect association funds?
A. Ten thousand dollars
B. Fifty thousand dollars
,C. An amount determined by the Division based on the total amount of money handled
D. A standard one million dollar general liability policy
Answer: C
Nevada regulations require community managers to maintain a fidelity bond or insurance
policy in an amount determined by the Real Estate Division proportional to the funds
managed.
4. When must a community manager disclose any potential conflict of interest to the
executive board?
A. Within thirty days after contract execution
B. Only if a homeowner formally requests the information
C. Prior to entering into any contract or conducting business involving the conflict
D. Annually during the association's budget ratification meeting
Answer: C
Nevada law mandates that a community manager must immediately and fully disclose any
familial, financial, or business relationship with a vendor before entering into related
transactions.
5. Which document establishes the foundational covenants, conditions, and restrictions
(CC&Rs) for a planned community in Nevada?
A. Association Bylaws
B. Articles of Incorporation
C. Recorded Declaration of Covenants, Conditions, and Restrictions
D. Rules and Regulations adopted by the board
Answer: C
The recorded Declaration is the primary master document that runs with the land,
establishing property rights, assessment obligations, and use restrictions.
6. An executive board wishes to pass an emergency rule regarding pool safety due to an
unexpected hazard. According to Nevada law, how must owners be notified?
,A. Thirty days in advance via certified mail
B. Notice must be sent as soon as practicable after the board adopts the emergency rule
C. Emergency rules do not require homeowner notification if passed unanimously
D. Written notice posted on the community website at least fourteen days prior
Answer: B
Under NRS 116, emergency rules can be adopted immediately to protect health and safety,
provided notice is sent to unit owners as soon as practicable afterward.
7. How many days of advance written notice must be provided to unit owners prior to an
executive board meeting, excluding executive sessions?
A. Three days
B. Not less than ten days and not more than sixty days
C. Exactly seven days
D. Fourteen days
Answer: B
NRS 116 mandates that owners receive notice of regular and special board meetings at least
ten days in advance, up to a maximum of sixty days.
8. When is an executive board permitted to hold a closed executive session meeting?
A. To discuss general landscaping contract renewals
B. To review unit owner delinquency reports and legal strategy
C. To vote on the annual operating budget
D. To discuss community social event planning
Answer: B
Executive sessions are legally restricted to sensitive matters such as legal consultations,
personnel issues, and delinquent owner hearings to protect privacy.
9. What is the maximum late fee an association may assess on a delinquent assessment
under Nevada law?
, A. Twenty-five dollars or ten percent of the delinquent amount, whichever is greater
B. Fifteen dollars or five percent of the delinquent amount, whichever is greater
C. Ten percent of the unpaid assessment or a statutory maximum flat fee specified by regulation
D. Any amount established arbitrarily by the management agreement
Answer: C
Nevada law limits late charges to a reasonable amount specified in the governing documents
or statutory caps, typically not exceeding ten percent of the overdue installment or a flat fee.
10. Before an association can record a lien against a property for unpaid assessments, what
notice must be sent to the owner?
A. Notice of Intent to Foreclose sent via electronic mail only
B. Notice of Delinquent Assessment providing at least thirty days to pay
C. A simple reminder letter included with the monthly statement
D. Summons and complaint filed directly in district court
Answer: B
NRS 116 requires a formal Notice of Delinquent Assessment to be mailed to the owner
providing a statutory cure period before a lien can be recorded.
11. Which financial document must be prepared and distributed to all unit owners within a
specific timeframe following the close of the fiscal year?
A. Internal bank reconciliation printouts
B. Audited or reviewed financial statement prepared by an independent certified public
accountant
C. Daily cash flow ledger
D. Manager performance appraisal report
Answer: B
Nevada law requires associations of a certain size to distribute annual financial statements,
often compiled, reviewed, or audited by an independent CPA depending on annual gross
revenue.
