NSAR SALESPERSON LICENSING EXAMINATION
COMPLETE QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR JUST
RELEASED
Question 1
A Nova Scotia salesperson receives confidential information from a seller about
accepting a lower price. What is the salesperson’s primary duty?
A. Disclose the information to all interested buyers immediately
B. Keep the information confidential unless authorized to disclose it
C. Share the information with the brokerage’s top salesperson
D. Report the information to the local appraisal board
Correct Answer: B
Rationale: A salesperson owes fiduciary duties to a client, including
confidentiality. Confidential information cannot be disclosed without the client’s
informed consent or a legal requirement.
Question 2
Which Nova Scotia legislation primarily governs real estate trading activities and
licensing requirements for salespersons and brokerages?
A. Condominium Act
B. Property Valuation Services Act
C. Real Estate Trading Act
, D. Municipal Government Act
Correct Answer: C
Rationale: The Real Estate Trading Act is the principal provincial statute regulating
real estate trading, licensing, conduct, and enforcement in Nova Scotia.
Question 3
A brokerage receives a buyer’s deposit with an accepted offer. What is the most
appropriate handling procedure?
A. Deposit it into the salesperson’s personal account temporarily
B. Hold it in cash until closing day
C. Place it into the brokerage trust account according to regulatory
requirements
D. Give it directly to the seller immediately
Correct Answer: C
Rationale: Deposits related to real estate transactions must be handled through
the brokerage trust account in accordance with NSREC trust accounting
requirements.
Question 4
A buyer asks whether a property has a history of basement flooding. The
salesperson is uncertain. What should the salesperson do?
A. State that flooding has never occurred
B. Avoid answering the question entirely
C. Recommend the buyer investigate further and seek accurate information
D. Tell the buyer that flooding is common in Nova Scotia
Correct Answer: C
,Rationale: A salesperson must avoid misrepresentation and should provide
accurate information or advise further investigation when the answer is unknown.
Question 5
Which ownership form includes a right of survivorship between co-owners of real
property?
A. Tenancy in common
B. Joint tenancy
C. Life estate
D. Leasehold ownership
Correct Answer: B
Rationale: Joint tenancy includes the right of survivorship, meaning a deceased
owner’s interest passes automatically to the surviving joint tenant.
Question 6
A listing agreement expires at midnight on June 30. A buyer submits an offer on
July 2. What is true?
A. The listing remains automatically active for thirty days
B. The seller must accept the offer through that brokerage
C. The brokerage’s authority ended unless another agreement exists
D. The salesperson may continue advertising indefinitely
Correct Answer: C
Rationale: A brokerage’s authority to act for the seller ends when the listing
agreement expires unless it is renewed or extended.
Question 7
, What is the primary purpose of a comparative market analysis prepared by a
salesperson?
A. To determine municipal property taxes
B. To provide a professional appraisal for court proceedings
C. To estimate probable market value using comparable sales
D. To calculate mortgage qualification ratios
Correct Answer: C
Rationale: A CMA uses comparable market data to estimate likely market value
for pricing and negotiation purposes, but it is not a formal appraisal.
Question 8
A salesperson represents both buyer and seller under designated agency rules.
What is essential before proceeding?
A. Oral consent only from the buyer
B. Written informed consent from the affected parties
C. Approval from the municipal planning department
D. Permission from the mortgage lender
Correct Answer: B
Rationale: Designated or dual agency situations require proper disclosure and
written informed consent to address potential conflicts of interest.
Question 9
Which mortgage feature causes payments to remain constant while principal
repayment gradually increases over time?
A. Open mortgage
COMPLETE QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR JUST
RELEASED
Question 1
A Nova Scotia salesperson receives confidential information from a seller about
accepting a lower price. What is the salesperson’s primary duty?
A. Disclose the information to all interested buyers immediately
B. Keep the information confidential unless authorized to disclose it
C. Share the information with the brokerage’s top salesperson
D. Report the information to the local appraisal board
Correct Answer: B
Rationale: A salesperson owes fiduciary duties to a client, including
confidentiality. Confidential information cannot be disclosed without the client’s
informed consent or a legal requirement.
Question 2
Which Nova Scotia legislation primarily governs real estate trading activities and
licensing requirements for salespersons and brokerages?
A. Condominium Act
B. Property Valuation Services Act
C. Real Estate Trading Act
, D. Municipal Government Act
Correct Answer: C
Rationale: The Real Estate Trading Act is the principal provincial statute regulating
real estate trading, licensing, conduct, and enforcement in Nova Scotia.
Question 3
A brokerage receives a buyer’s deposit with an accepted offer. What is the most
appropriate handling procedure?
A. Deposit it into the salesperson’s personal account temporarily
B. Hold it in cash until closing day
C. Place it into the brokerage trust account according to regulatory
requirements
D. Give it directly to the seller immediately
Correct Answer: C
Rationale: Deposits related to real estate transactions must be handled through
the brokerage trust account in accordance with NSREC trust accounting
requirements.
Question 4
A buyer asks whether a property has a history of basement flooding. The
salesperson is uncertain. What should the salesperson do?
A. State that flooding has never occurred
B. Avoid answering the question entirely
C. Recommend the buyer investigate further and seek accurate information
D. Tell the buyer that flooding is common in Nova Scotia
Correct Answer: C
,Rationale: A salesperson must avoid misrepresentation and should provide
accurate information or advise further investigation when the answer is unknown.
Question 5
Which ownership form includes a right of survivorship between co-owners of real
property?
A. Tenancy in common
B. Joint tenancy
C. Life estate
D. Leasehold ownership
Correct Answer: B
Rationale: Joint tenancy includes the right of survivorship, meaning a deceased
owner’s interest passes automatically to the surviving joint tenant.
Question 6
A listing agreement expires at midnight on June 30. A buyer submits an offer on
July 2. What is true?
A. The listing remains automatically active for thirty days
B. The seller must accept the offer through that brokerage
C. The brokerage’s authority ended unless another agreement exists
D. The salesperson may continue advertising indefinitely
Correct Answer: C
Rationale: A brokerage’s authority to act for the seller ends when the listing
agreement expires unless it is renewed or extended.
Question 7
, What is the primary purpose of a comparative market analysis prepared by a
salesperson?
A. To determine municipal property taxes
B. To provide a professional appraisal for court proceedings
C. To estimate probable market value using comparable sales
D. To calculate mortgage qualification ratios
Correct Answer: C
Rationale: A CMA uses comparable market data to estimate likely market value
for pricing and negotiation purposes, but it is not a formal appraisal.
Question 8
A salesperson represents both buyer and seller under designated agency rules.
What is essential before proceeding?
A. Oral consent only from the buyer
B. Written informed consent from the affected parties
C. Approval from the municipal planning department
D. Permission from the mortgage lender
Correct Answer: B
Rationale: Designated or dual agency situations require proper disclosure and
written informed consent to address potential conflicts of interest.
Question 9
Which mortgage feature causes payments to remain constant while principal
repayment gradually increases over time?
A. Open mortgage
