NSAR Salesperson Licensing Actual Exam – Nova Scotia
Association of REALTORS® (NSAR) / Nova Scotia Real
Estate Commission – 2026/2027 Academic Year –
Verified Questions and Answers for Professional Real
Estate Licensing Candidates
1. Which of the following best describes an agency relationship in real estate?
A. A relationship where one party (the agent) accepts responsibility for representing
another (the principal) in dealing with third parties.
B. A relationship between a buyer and a seller mediated by a lawyer.
C. A contractual agreement for property management services.
D. A financial arrangement for mortgage brokering.
Correct Answer: A
Rationale: An agency relationship is legally defined as one where the agent is
authorized to represent the principal in business transactions with third parties .
2. What is the first step in the "Four D's" of agency disclosure?
A. Disclose
B. Document
C. Do
D. Decide
Correct Answer: D
Rationale: The Four D's of agency disclosure outline the process: 1. Decide who you will
represent; 2. Disclose that decision; 3. Document it in writing; and 4. Do what you said
you would do .
3. Under the Matrimonial Property Act in Nova Scotia, what is required for the
transfer or mortgaging of a matrimonial home?
A. Only the owning spouse's signature.
B. Written consent from the non-owning spouse.
C. Court approval.
D. A formal appraisal.
,Correct Answer: B
Rationale: The Matrimonial Property Act requires the consent of the non-owning
spouse regarding the transfer and/or mortgaging of a matrimonial home .
4. The six primary fiduciary duties owed by an agent to a client include all of the
following EXCEPT:
A. Disclosure
B. Confidentiality
C. Advocacy
D. Loyalty
Correct Answer: C
Rationale: The six primary fiduciary duties are: Disclosure, Competency, Accountability,
Loyalty, Confidentiality, and Obedience . While an agent advocates for their client,
"advocacy" is not specifically listed as one of the six primary duties.
5. A customer is best defined as:
A. A person who has an agency relationship with a brokerage.
B. A person who receives fiduciary duties from the brokerage.
C. A person who does not have an agency relationship with the brokerage and is owed
more limited duties.
D. A person who is represented by the brokerage in a real estate transaction.
Correct Answer: C
Rationale: A customer is someone who does not have an agency relationship with the
brokerage. Duties owed to a customer are more limited than those owed to a client, and
a customer is not owed any fiduciary duties .
6. In a designated agency scenario in Nova Scotia, the brokerage appoints one
agent to represent the seller and another to represent the buyer. Which statement
accurately describes the legal obligations of the two agents?
A. Both agents owe the same duties to both parties, including full disclosure of
confidential information.
B. Each agent owes undivided loyalty to their respective client, and confidential
information cannot be shared between the agents.
C. Each agent owes undivided loyalty to their respective client, but the brokerage as a
whole may share confidential information between the two agents.
D. Each agent owes no fiduciary duties because the brokerage is the only fiduciary.
,Correct Answer: B
Rationale: In a designated agency arrangement, each agent owes undivided loyalty to
their respective client. Confidential information disclosed by one client to their agent
cannot be shared with the other agent or the opposing party, ensuring each client
receives full representation .
7. A salesperson is working with a buyer interested in a property listed by their
broker. The buyer asks if the salesperson can represent them in the purchase. What
is the salesperson's obligation?
A. The salesperson can represent the buyer only if the seller is also informed and
consents in writing after full disclosure, as this constitutes dual agency.
B. The salesperson cannot represent the buyer because dual agency is not permitted in
Nova Scotia.
C. The salesperson can represent the buyer without disclosure if they act in the best
interests of both parties.
D. The salesperson can represent the buyer only if the buyer signs a waiver of the
conflict.
Correct Answer: A
Rationale: Dual agency is permitted in Nova Scotia but requires informed written
consent from both parties after full disclosure of the conflict .
8. What is the purpose of the "Working With The Real Estate Industry" form?
A. To document the purchase price agreement.
B. To disclose the nature of the agency relationship and obtain the client's
acknowledgement.
C. To provide a property inspection report.
D. To register the property title.
Correct Answer: B
Rationale: The "Working With The Real Estate Industry" form is used to document the
agency disclosure and get the client's acknowledgment, which is the "Document" step in
the Four D's process .
9. Which of the following is a material latent defect?
A. The colour of the house's siding.
B. A small crack in the driveway.
C. A fault in the property that would not be discovered by a reasonably thorough
, building inspection and has a serious impact on the property's value or health/safety.
D. The presence of an older roof.
Correct Answer: C
Rationale: A material latent defect is a fault in a property that would not be discovered
by a reasonably thorough building inspection but can have a serious impact on the
value of the property or involve health and/or safety issues . It is "material" because it
matters to a buyer's decision.
SECTION 2: VALUE, APPRAISAL, AND MARKET PRINCIPLES (Questions 26-50)
10. The "Principle of Highest and Best Use" states that value is determined by:
A. The use that will produce the greatest return, considering the property's current and
potential uses.
B. The cheapest use of the property.
C. The historical use of the property.
D. The use that requires the least amount of renovation.
Correct Answer: A
Rationale: The Principle of Highest and Best Use focuses on the use that will produce
the greatest return, by examining the property's current and potential uses .
11. The "Principle of Regression" suggests that:
A. The smallest house on the street might be the best buy.
B. The largest house on the street might not be the best buy, as its value may decrease
due to its neighbours.
C. A value today is valid only for today.
D. Excess profit breeds ruinous competition.
Correct Answer: B
Rationale: The Principle of Regression states that the largest house on the street might
not be the best buy because the highest value home loses value due to its neighbours .
12. The "Principle of Progression" suggests that:
A. The largest house on the street might be the best buy.
B. The poorest property on a street will increase in value due to its proximity to better
homes.
Association of REALTORS® (NSAR) / Nova Scotia Real
Estate Commission – 2026/2027 Academic Year –
Verified Questions and Answers for Professional Real
Estate Licensing Candidates
1. Which of the following best describes an agency relationship in real estate?
A. A relationship where one party (the agent) accepts responsibility for representing
another (the principal) in dealing with third parties.
B. A relationship between a buyer and a seller mediated by a lawyer.
C. A contractual agreement for property management services.
D. A financial arrangement for mortgage brokering.
Correct Answer: A
Rationale: An agency relationship is legally defined as one where the agent is
authorized to represent the principal in business transactions with third parties .
2. What is the first step in the "Four D's" of agency disclosure?
A. Disclose
B. Document
C. Do
D. Decide
Correct Answer: D
Rationale: The Four D's of agency disclosure outline the process: 1. Decide who you will
represent; 2. Disclose that decision; 3. Document it in writing; and 4. Do what you said
you would do .
3. Under the Matrimonial Property Act in Nova Scotia, what is required for the
transfer or mortgaging of a matrimonial home?
A. Only the owning spouse's signature.
B. Written consent from the non-owning spouse.
C. Court approval.
D. A formal appraisal.
,Correct Answer: B
Rationale: The Matrimonial Property Act requires the consent of the non-owning
spouse regarding the transfer and/or mortgaging of a matrimonial home .
4. The six primary fiduciary duties owed by an agent to a client include all of the
following EXCEPT:
A. Disclosure
B. Confidentiality
C. Advocacy
D. Loyalty
Correct Answer: C
Rationale: The six primary fiduciary duties are: Disclosure, Competency, Accountability,
Loyalty, Confidentiality, and Obedience . While an agent advocates for their client,
"advocacy" is not specifically listed as one of the six primary duties.
5. A customer is best defined as:
A. A person who has an agency relationship with a brokerage.
B. A person who receives fiduciary duties from the brokerage.
C. A person who does not have an agency relationship with the brokerage and is owed
more limited duties.
D. A person who is represented by the brokerage in a real estate transaction.
Correct Answer: C
Rationale: A customer is someone who does not have an agency relationship with the
brokerage. Duties owed to a customer are more limited than those owed to a client, and
a customer is not owed any fiduciary duties .
6. In a designated agency scenario in Nova Scotia, the brokerage appoints one
agent to represent the seller and another to represent the buyer. Which statement
accurately describes the legal obligations of the two agents?
A. Both agents owe the same duties to both parties, including full disclosure of
confidential information.
B. Each agent owes undivided loyalty to their respective client, and confidential
information cannot be shared between the agents.
C. Each agent owes undivided loyalty to their respective client, but the brokerage as a
whole may share confidential information between the two agents.
D. Each agent owes no fiduciary duties because the brokerage is the only fiduciary.
,Correct Answer: B
Rationale: In a designated agency arrangement, each agent owes undivided loyalty to
their respective client. Confidential information disclosed by one client to their agent
cannot be shared with the other agent or the opposing party, ensuring each client
receives full representation .
7. A salesperson is working with a buyer interested in a property listed by their
broker. The buyer asks if the salesperson can represent them in the purchase. What
is the salesperson's obligation?
A. The salesperson can represent the buyer only if the seller is also informed and
consents in writing after full disclosure, as this constitutes dual agency.
B. The salesperson cannot represent the buyer because dual agency is not permitted in
Nova Scotia.
C. The salesperson can represent the buyer without disclosure if they act in the best
interests of both parties.
D. The salesperson can represent the buyer only if the buyer signs a waiver of the
conflict.
Correct Answer: A
Rationale: Dual agency is permitted in Nova Scotia but requires informed written
consent from both parties after full disclosure of the conflict .
8. What is the purpose of the "Working With The Real Estate Industry" form?
A. To document the purchase price agreement.
B. To disclose the nature of the agency relationship and obtain the client's
acknowledgement.
C. To provide a property inspection report.
D. To register the property title.
Correct Answer: B
Rationale: The "Working With The Real Estate Industry" form is used to document the
agency disclosure and get the client's acknowledgment, which is the "Document" step in
the Four D's process .
9. Which of the following is a material latent defect?
A. The colour of the house's siding.
B. A small crack in the driveway.
C. A fault in the property that would not be discovered by a reasonably thorough
, building inspection and has a serious impact on the property's value or health/safety.
D. The presence of an older roof.
Correct Answer: C
Rationale: A material latent defect is a fault in a property that would not be discovered
by a reasonably thorough building inspection but can have a serious impact on the
value of the property or involve health and/or safety issues . It is "material" because it
matters to a buyer's decision.
SECTION 2: VALUE, APPRAISAL, AND MARKET PRINCIPLES (Questions 26-50)
10. The "Principle of Highest and Best Use" states that value is determined by:
A. The use that will produce the greatest return, considering the property's current and
potential uses.
B. The cheapest use of the property.
C. The historical use of the property.
D. The use that requires the least amount of renovation.
Correct Answer: A
Rationale: The Principle of Highest and Best Use focuses on the use that will produce
the greatest return, by examining the property's current and potential uses .
11. The "Principle of Regression" suggests that:
A. The smallest house on the street might be the best buy.
B. The largest house on the street might not be the best buy, as its value may decrease
due to its neighbours.
C. A value today is valid only for today.
D. Excess profit breeds ruinous competition.
Correct Answer: B
Rationale: The Principle of Regression states that the largest house on the street might
not be the best buy because the highest value home loses value due to its neighbours .
12. The "Principle of Progression" suggests that:
A. The largest house on the street might be the best buy.
B. The poorest property on a street will increase in value due to its proximity to better
homes.
