Nevada Property Manager Permit Exam
Preparation Guide (2026 Verified Edition):
Comprehensive Questions and Answers with
Detailed Rationales for Licensing Exam
Success
1. Under Nevada law, which activity requires a property
manager permit?
A. Collecting rent on behalf of a family member
B. Leasing and managing property for compensation on
behalf of another
C. Selling property owned by oneself
D. Providing legal advice on leases
Rationale: Property management activity conducted for
others for compensation requires a permit under Nevada real
estate licensing laws. Personal or ownership-related activities
are exempt.
2. A property manager trust account must be:
A. Held jointly with the property owner
B. Separate from the broker’s operating account and
properly designated as a trust account
C. Used for business expenses when needed
D. Held in the manager’s personal checking account
,Rationale: Nevada requires strict segregation of client funds
in a designated trust account to prevent commingling and
protect consumers.
3. Commingling occurs when a property manager:
A. Deposits rent late
B. Charges late fees incorrectly
C. Mixes client funds with personal or business funds
D. Fails to sign a lease
Rationale: Commingling is the improper mixing of client
money with personal or operational funds, which is strictly
prohibited.
4. A property manager must provide an accounting to the
owner at least:
A. Weekly
B. Every 90 days
C. As required by the management agreement, typically
monthly or as agreed
D. Only upon request annually
Rationale: Nevada law requires reporting per contract terms,
but industry standard is monthly accounting.
5. Which document establishes the authority of a property
manager?
,A. Lease agreement
B. Property management agreement
C. Purchase contract
D. Escrow instructions
Rationale: The management agreement defines duties,
authority, compensation, and scope of agency.
6. Which of the following is TRUE regarding security
deposits in Nevada?
A. They are owned by the property manager
B. They can be used for repairs without notice
C. They must be held in trust and returned according to
statutory timelines after tenancy ends
D. They must be deposited into the broker’s operating
account
Rationale: Security deposits must be properly held and
accounted for and returned within statutory limits.
7. The fiduciary duty of “obedience” requires a property
manager to:
A. Act in their own financial interest
B. Follow lawful instructions of the property owner
C. Ignore owner instructions if inconvenient
D. Prioritize tenant requests over owner directives
Rationale: Obedience means acting within lawful instructions
given by the principal (owner).
, 8. Which action is a breach of fiduciary duty?
A. Providing market rent analysis
B. Maintaining property records
C. Failing to disclose a material fact about property
condition
D. Collecting rent on time
Rationale: Non-disclosure of material facts violates the duty
of honesty and disclosure.
9. Nevada property managers must retain records for at
least:
A. 1 year
B. 2 years
C. 5 years
D. 10 years
Rationale: Nevada requires retention of real estate records for
a minimum statutory period (commonly 5 years).
10. A property manager may legally evict a tenant by:
A. Changing locks immediately
B. Following the judicial eviction process (unlawful detainer
action)
C. Disconnecting utilities
D. Verbal notice only
Preparation Guide (2026 Verified Edition):
Comprehensive Questions and Answers with
Detailed Rationales for Licensing Exam
Success
1. Under Nevada law, which activity requires a property
manager permit?
A. Collecting rent on behalf of a family member
B. Leasing and managing property for compensation on
behalf of another
C. Selling property owned by oneself
D. Providing legal advice on leases
Rationale: Property management activity conducted for
others for compensation requires a permit under Nevada real
estate licensing laws. Personal or ownership-related activities
are exempt.
2. A property manager trust account must be:
A. Held jointly with the property owner
B. Separate from the broker’s operating account and
properly designated as a trust account
C. Used for business expenses when needed
D. Held in the manager’s personal checking account
,Rationale: Nevada requires strict segregation of client funds
in a designated trust account to prevent commingling and
protect consumers.
3. Commingling occurs when a property manager:
A. Deposits rent late
B. Charges late fees incorrectly
C. Mixes client funds with personal or business funds
D. Fails to sign a lease
Rationale: Commingling is the improper mixing of client
money with personal or operational funds, which is strictly
prohibited.
4. A property manager must provide an accounting to the
owner at least:
A. Weekly
B. Every 90 days
C. As required by the management agreement, typically
monthly or as agreed
D. Only upon request annually
Rationale: Nevada law requires reporting per contract terms,
but industry standard is monthly accounting.
5. Which document establishes the authority of a property
manager?
,A. Lease agreement
B. Property management agreement
C. Purchase contract
D. Escrow instructions
Rationale: The management agreement defines duties,
authority, compensation, and scope of agency.
6. Which of the following is TRUE regarding security
deposits in Nevada?
A. They are owned by the property manager
B. They can be used for repairs without notice
C. They must be held in trust and returned according to
statutory timelines after tenancy ends
D. They must be deposited into the broker’s operating
account
Rationale: Security deposits must be properly held and
accounted for and returned within statutory limits.
7. The fiduciary duty of “obedience” requires a property
manager to:
A. Act in their own financial interest
B. Follow lawful instructions of the property owner
C. Ignore owner instructions if inconvenient
D. Prioritize tenant requests over owner directives
Rationale: Obedience means acting within lawful instructions
given by the principal (owner).
, 8. Which action is a breach of fiduciary duty?
A. Providing market rent analysis
B. Maintaining property records
C. Failing to disclose a material fact about property
condition
D. Collecting rent on time
Rationale: Non-disclosure of material facts violates the duty
of honesty and disclosure.
9. Nevada property managers must retain records for at
least:
A. 1 year
B. 2 years
C. 5 years
D. 10 years
Rationale: Nevada requires retention of real estate records for
a minimum statutory period (commonly 5 years).
10. A property manager may legally evict a tenant by:
A. Changing locks immediately
B. Following the judicial eviction process (unlawful detainer
action)
C. Disconnecting utilities
D. Verbal notice only
