Nevada Real Estate Salesperson State Questions with Verified Answers

A Seller's Real Property Disclosure document is required for all the following properties, EXCEPT a(n): a) For Sale by Owner b) New Home c) Resale d) Home that has been inspected by a certified home inspector - Answer- b (New Home) A Nevada licensee must give the Duties Owed by a Nevada licensee form to prospective purchasers/tenants: a) before they are shown any properties b) at an open house c) at the close of escrow d) no later than the time of entering an agreement to purchase or lease - Answer- d (no later than the time of entering an agreement to purchase or lease) The licensing law of Nevada requires that the: a) broker keep all the information confidential that the seller has provided about the property b) broker disclose everything that the seller tells him or her c) broker disclose information that materially affects the property even when the buyer does not ask for it. d) seller disclose all facts that might affect the sale - Answer- c (broker disclose information that materially affects the property even when the buyer does not ask for it.) If a Nevada licensee tells the lender that the sales price on a property is something than it's actual sales price, the: a) licensee has done nothing wrong as long as the appraisal substantiates the price b) buyer is likely to receive an interest rate discount c) licensee can have his/her license suspended or revoked d) buyer can receive a lower mortgage amount - Answer- c (licensee can have his/her license suspended or revoked) Under the terms of the contract, a seller is required to provide a termite certification. The seller requests his listing agent to order one. Then agent does so, knowing he will receive a referral fee from the pest control company. Is this a violation of the Nevada license law? a) No, if the referral fee is than then $25 b) No, because the undisclosed referral fees are not a violation of the Nevada license law c) Yes, because a salesperson may not receive compensation from anyone other than his employing broker d) Yes, because only the seller may compensate a salesperson - Answer- c (Yes, because a salesperson may not receive compensation from anyone other than his employing broker) All of the following are grounds for disciplinary action EXCEPT a licensee: a) trying to negotiate a sale of property directly with an owner while that owner is currently exclusively listed with another broker. b) giving information on a rental to a tenant without the landlords permission c) refusing to write a low offer that the licensee knows will not be accepted d) refusing to show property to a prospective purchaser due to poor credit - Answer- d (refusing to show property to a prospective purchaser due to poor credit) What are the three types of agency recognized in Nevada? a) Single agency, dual agency and assigned agency b) Seller agency, buyer agency, assigned dual agency c) Sub agency, dual agency and seller agency d) Fiduciary agency, universal agency, multiple agency - Answer- a (Single agency, dual agency and assigned agency) A broker may collect a commission from the seller and the buyer if: a) the broker holds a state license b) the buyer and the seller are at arms length c) both parties give their informed, written consent d) both parties have legal representation - Answer- c (both parties give their informed, written consent) A Nevada real estate salesperson who wishes to place her house on the market for sale and a sign on the property must: a) identify the broker on the sign and may identify the salesperson b) identify both the her name and the brokerage name c) identify her name and contact information d) indicate her status as a REALTOR - Answer- a (identify the broker on the sign and may identify the salesperson) All funds received by the broker on behalf of the principal must be deposited in the trust or escrow account opened: a) within 3 days of receiving the offer b) within 10 business days of execution of the contract c) within 5 calendar days of receiving the offer d) within one banking day of acceptance of the offer - Answer- d (within one banking day of acceptance of the offer) Broker-Salesperson Harrigan accepts an earnest money deposit from his buyer, payable to his brokerage, when writing the offer. Under Nevada law, Harrigan must: a) deposit the money in his trust account immediately b) hold the check in a secure location until acceptance of the offer then open escrow c) deposit the funds in a separate trust account solely for that transaction d) turn the funds over to his broker promptly - Answer- d (turn the funds over to his broker promptly) Salesperson Harriet engages in blockbusting and discriminatory activities and also deposited an earnest money check into her personal checking to purchase a new car. Harriet's broker, Mike, was completely unaware of these activities. What is the impact of Harriet's behavior on Mike when the violations are brought before the Commission? a) Mike may be disciplined for failure to supervise b) Mike is liable for Harriet's actions, but not Harriet as she is only a salesperson c) Mike will be disciplined only for the violations of the Fair Housing Act d) Mike must surrender his license - Answer- a (Mike may be disciplined for failure to supervise) Several weeks after the close of escrow , a broker-salesperson received a nice thank you note with a bonus check from the seller. the broker salesperson cashed the check and kept the funds for her own use. Which of the following is true? a) This a violation of Nevada regulations and the broker salesperson may be disciplined b) This is perfectly legitimate only if the check was payable to the broker salesperson c) This is acceptable provided the broker is aware d) This is legal as long as the bonus check is not in excess of $500 - Answer- a (This a violation of Nevada regulations and the broker salesperson may be disciplined) Every Nevada real estate office is required to keep transaction records for: a) 3 years from last activity b) 5 years from last activity c) 7 years from last activity d) none of the above - Answer- b (5 years from last activity) Regarding promotional time share meetings: a) division employees may attend b) recording devices are not allowed c) verbal statements may enhance written advertising d) shills are permitted - Answer- a (division employees may attend) Who is responsible for investigating transaction files and trust records of brokers and owner developers? a) The Nevada real estate commission b) The Attorney General c) The Division interloper d) The Administration and the Division - Answer- d (The Administration and the Division) Three weeks before Nick begins his real estate pre licensing course, he offers to help his neighbor sell her house. the neighbor agrees to pay Nick a 5% commission. An offer is accepted while Nick is taking the course and closes the day he passes the PSI exam. The neighbor then refuses to pay Nick the commission. Can Nick sue to recover payment? a) No, only the broker can sue for commission b) No, the state law prohibits the suit since Nick was unlicensed at the time of listing c) Yes, Nick performed the listing agreement d) Both A & B - Answer- d (Both A & B) Which of the following are CIC liens that are NOT the basis of foreclosure? a) Unpaid monthly dues b) Unpaid special assessments c) Fines for health and safety hazards d) Fines for other violations of the CC&R's - Answer- d (Fines for other violations of the CC&R's) An owner developer may employ all of the following EXCEPT: a) a licensed salesperson b) a licensed broker-salesperson c) a licensed broker d) an unlicensed hostess - Answer- c (a licensed broker) Which of the following could result in the suspension, revocation or find in an exclusive right to sell listing? a) a specified commission rate b) no broker protection clause c) no specific termination date d) no automatic renewal clause - Answer- c (no specific termination date) The Farmer's listed their house with broker Simmons on February 1st. The listing was to last 6 months. In April, the farmer's decided they no longer wanted to sell the property. Which of the following statements is TRUE? a) The sellers have ended the listing agreement and there are no penalties b) The sellers have in effect withdrawn the broker's right to sell and may be liable to the broker c) The Farmers are require to leave the house on the market until July 31st d) None of the above - Answer- b (The sellers have in effect withdrawn the broker's right to sell and may be liable to the broker) A buyer has just entered into a contract to buy a condominium unit from a person who originally purchased a unit from the developer and the buyer has lived there for the last 10 years. the buyer has a right to cancel the contract within: a) 3 business days b) 5 days of the contract date c) 10 days of receipt of the certificate of resale d) there is no right of cancellation - Answer- d (there is no right of cancellation) All of the following contracts must be in writing EXCEPT: a) exclusive agency listing b) open listing c) exclusive right to sell listing d) real estate sales contract - Answer- b (open listing) A California broker wants to broker lots in Nevada to California investors. The California broker may do this if he: a) relocates to Nevada b) obtains a cooperative certificate c) pays a Nevada broker a referral fee d) this cannot be done - Answer- b (obtains a cooperative certificate) All of the following are requirements of a property manager permit holder EXCEPT: a) 24 hours of pre-permit education b) 3 hours of continuing education c) a real estate license d) a broker's license - Answer- d (a broker's license) Who MUST have a real estate license? a) The owner of the property being sold or leased b) An executor of an estate c) A bankruptcy trustee d) a property manager - Answer- d (a property manager) A Nevada licensee has had her Arizona license suspended for failure to account and comingling. She: a) may have her Nevada license suspended because of the Arizona suspension b) will NOT be disciplined in Nevada for the Arizona offense c) will automatically have her Nevada license suspended d) does not have to disclose the Arizona incident to the Real Estate Division of Nevada - Answer- a (may have her Nevada license suspended because of the Arizona suspension) Which of the following MAY have an active Nevada real estate license? a) depository financial institution b) Division employee c) suspended licensee d) Non resident of Nevada - Answer- d (Non resident of Nevada) In Nevada, a partnership, association, or corporation will be granted a Nevada Real estate license only if: a) there is a member who meets the qualifications of a broker b) every member actively participating in the brokerage business has a broker's license c) all papers are filed with the Secretary of State d) all of the above - Answer- a (there is a member who meets the qualifications of a broker) In Nevada, an unlicensed assistant may perform all of the following activities EXCEPT: a) compute commission checks b) assemble disclosure documents required for closing c) explain simple contract documents to prospective purchasers d) prepare mailings and promotional materials - Answer- c (explain simple contract documents to prospective purchasers) Brown, a non resident of Nevada, applies for a Nevada broker salesperson's license. She must file with the Division a: a) Certificate of Habitability b) Consent to Service of Process c) Certificate of Resale d) Corpus Delicti - Answer- b (Consent to Service of Process) A Nevada broker may have his license suspended or revoked for all of the following EXCEPT: a) failing to keep adequate records b) depositing earnest money directly into the firm's trust account c) helping a student cheat on the licensing exam d) displaying a for sale sign on a property without the authorization of the owner. - Answer- b (depositing earnest money directly into the firm's trust account) In Nevada, real estate commissions are a) limited by the real estate division b) determined by a group of prominent brokers c) set by what is customary and has always been the norm d) negotiable between the client and the broker - Answer- d (negotiable between the client and the broker) A housing discrimination charge may be filed within: a) 30 days b) 6 months c) 2 years d) 3 years - Answer- d (3 years) How are members of the Commission selected to serve? a) chosen by the Council on Housing Matters b) appointed by the Nevada Governor c) elected through public elections d) hand-picked by HUD - Answer- b (appointed by the Nevada Governor) The Nevada Real Estate Commission consists of: a) 4 active real estate brokers or broker-salespersons and one public member b) a combination of licensees and members of the public c) 5 actively licensed brokers or broker-salespersons d) five actively licensed brokers or salespersons - Answer- c (5 actively licensed brokers or broker-salespersons) Who may receive compensation from ERRF? a) a broker whose commission was refuted by his client b) a seller who pays a commission under false pretenses c) a buyer who paid a brokerage fee under a brokerage agreement d) a cooperating agency which did not receive their share of the commission from the listing firm - Answer- b (a seller who pays a commission under false pretenses) What is the maximum fine for violation of NRS.630, NRS.633, or NRS.645.635 (the major violations)? a) $500 per offense b) $5000 per offense c) $10,000 per offense d) $20,000 per offense - Answer- c ($10,000 per offense) Sales Clem tells his clients not to worry about the air conditioning unit in the house they are buying. "This entire house was checked out from head to toe 2 weeks ago by a licensed inspector," Although Clem was told this by the seller, and Clem, and Clem was just repeating what the seller told Clem, Clem is presumed guilty of: a) misrepresentation b) fraud c) twisting d) all of the above - Answer- a (misrepresentation) Agent Denise accepts an earnest money check from her purchasers, the Smithers, in the amount of $2000 to accompany an offer the Smithers wish her to present to the bank. Denise, in some financial trouble, deposits the money in her own checking account to pay some bills knowing she will be able to replace the funds after her next closing due to close the following week. a) Denise may do so legally provided she replaces the funds immediately after her next closing b) Denise must hold up on presenting the offer to the bank as there is no earnest money to accompany the offer c) Denise, but not her broker, can be disciplined as this is conversion d) none of the above - Answer- d (none of the above) A seller is required to provide the buyer a Seller's Real Property Disclosure document in all of the following transactions, EXCEPT: a) a private sale with no broker b) a commercial transaction c) a home that was professionally inspected within the last 30 days d) a 3 unit residential building - Answer- b (a commercial transaction) A real estate broker representing a seller knows that the house has a cracked foundation and that the husband committed suicide in the house. the broker must disclose: a) neither fact b) both facts c) the suicide but not the foundation d) the foundation but not the suicide - Answer- d (the foundation but not the suicide) The licensing law of Nevada requires that the: a) broker keep all information confidential that the seller has provided about the property b) broker disclose everything that the sellers tells him or her c) broker disclose information that materially affects the property even when the buyer does not ask for it d) seller disclose all facts that might affect the sale - Answer- c (broker disclose information that materially affects the property even when the buyer does not ask for it) The listing salesperson is showing his listing to very interested buyers. The asking price is $249,000. The salesperson suggest to the buyers that they make an offer of $230,000 because the salesperson believes that it might be accepted by the sellers. has the salesperson violated the licensing law? a) No, because he is representing the buyers whenever he writes an offer on their behalf b) No, because the salesperson is attempting to generate some sort of purchasing activity on the property c) Yes, because he offered the property at a price not authorized by the sellers and is breaching his fiduciary duty. d) Yes, because the offer is not a bona fide offer - Answer- c ( Yes, because he offered the property at a price not authorized by the sellers and is breaching his fiduciary duty) Broker Mark procures a ready, willing and able buyer for his seller. The seller accepts the offer in writing and then experiences a change of heart 3 days later by withdrawing his acceptance. In this situation, Mark: a) cannot collect a commission as the transaction will not close b) may sue the buyer c) may well be entitled to collect a commission d) may retain the deposit in lieu of commission - Answer- c (may well be entitled to collect a commission) A seller's listing agreement has expired and the seller lists with a different brokerage. Jim, the original listing agent, now has a buyer interested in the seller's property. Jim: a) must be assigned agent b) cannot disclose to the buyer information about the physical condition of the property c) cannot represent the buyer due to his prior relationship with the seller d) cannot disclose to the buyer offers received on the seller's property or an acceptable selling price to the seller - Answer- d (cannot disclose to the buyer offers received on the seller's property or an acceptable selling price to the seller) What are the 3 types of agency recognized in Nevada? a) single agency, dual agency and assigned agency b) seller agency, dual agency, assigned dual agency c) subagency, dual agency, seller agency d) fiduciary agency, universal agency, multiple agency - Answer- a (single agency, dual agency and assigned agency) Salesperson Judy has been working with buyers to find a dream home. After locating a property, the buyers ask Judy if she can recommend a home warranty program. Judy knows a company who will pay a referral fee for referring them. Can Judy make this recommendation? a) No, this is illegal per Nevada licensing law b) No, if Judy's broker has an alliance with a home warranty program c) Yes, if Judy discloses the referral fee and it is paid through her broker d) Yes, if the home warranty program is the cheapest - Answer- c (Yes, if Judy discloses the referral fee and it is paid through her broker) A buyer sees a property listed with Value Realty but does not wish to enter into a buyer brokerage agreement. A salesperson, other than the listing agent, from Value Realty can sell the buyer the listing if: a) the salesperson discloses she is a buyer's broker b) the salesperson acts as a dual agent c) she represents the seller only d) she indicates her status as a REALTOR - Answer- a (the salesperson discloses she is a buyer's broker) Paul, an associate with Hummingbird Realty, list a property with sellers, Fitzsimmons. After discussing it with his wife, Paul decides that he and his wife would like to purchase the property themselves from the Fitzsimmons. As a Nevada licensee, Paul: a) must be a dual agent b) cannot purchase his own listing as it is a conflict of interest c) must maintain his duties as the seller's agent d) must be a buyer's agent only and have his broker re-assign the listing and arrange for seller representation - Answer- d (must be a buyer's agent only and have his broker re-assign the listing and arrange for seller representation) Broker A enters into a listing with the seller. Salesperson B learns of the listing through the MLS and finds a buyer ready, willing and able to purchase. Typically in Nevada, Salesperson B: a) is a sub agent to Broker A b) is an agent of the buyer only with an executed buyer agreement c) must represent both the buyer and the seller d) has a fiduciary to the buyer - Answer- d (has a fiduciary to the buyer) What is the purpose of the Consent to Act form? a) the parties to the transaction acknowledge and agree to a dual agency b) to spell out the actions the agent will provide ton the client and the client's consent to do the same c) the fiduciary's consent for the broker to act on the client's behalf d) all of the above - Answer- A (the parties to the transaction acknowledge and agree to a d