NOVA SCOTIA ASSOCIATION OF REALTORS
(NSAR) LICENSING EXAM – 200 PRACTICE
QUESTIONS WITH VERIFIED ANSWERS &
DETAILED RATIONALES, PLUS EXPERT
EXPLANATIONS FOR EVERY TOPIC – COMPLETE
TEST BANK CONTAINS ALL KEY SUBJECT AREAS:
AGENCY, CONTRACTS, VALUATION, FINANCING
& ETHICS, UPDATED FOR 2026/2027.
PART 1: REAL ESTATE LAW & REGULATIONS
(Questions 1–20)
1. Under the Nova Scotia Real Estate Trading
Act, which term best describes "trading"?
• A) The act of buying a property for personal
use
, • B) The execution of a real estate transaction
on behalf of a client
• C) The management of a rental property
• D) The appraisal of a property for tax
purposes
☑VERIFIED ANSWER: B
Rationale: "Trading" is defined as the activity of
buying, selling, leasing, or otherwise dealing in
real estate on behalf of another person.
2. Who has the authority to audit a
brokerage's books under the NSREC?
• A) The Registrar only
• B) The Board of Directors only
• C) The Commission as a whole
• D) The local municipal government
,☑VERIFIED ANSWER: C
Rationale: The NSREC Commission has the
power to conduct audits, investigations, and
discipline licensees.
3. Which of the following is NOT a requirement
for obtaining a Nova Scotia real-estate licence?
• A) Completion of the pre-licensing course
• B) Passing the provincial written exam
• C) Ownership of a property in Nova Scotia
• D) Criminal background check
☑VERIFIED ANSWER: C
Rationale: Owning property is not a licensing
requirement; education, passing the exam, and
a background check are required.
, 4. The Recovery Fund primarily protects:
• A) Real-estate agents from client lawsuits
• B) The public against loss due to a licensee's
misconduct
• C) Brokerage firms from market downturns
• D) The government's tax revenue
☑VERIFIED ANSWER: B
Rationale: The fund reimburses clients who
suffer losses caused by a licensee's breach of
duties.
5. What is the primary role of the Nova Scotia
Real Estate Commission (NSREC)?
• A) To represent the interests of REALTORS®
• B) To regulate the real estate industry in
Nova Scotia
(NSAR) LICENSING EXAM – 200 PRACTICE
QUESTIONS WITH VERIFIED ANSWERS &
DETAILED RATIONALES, PLUS EXPERT
EXPLANATIONS FOR EVERY TOPIC – COMPLETE
TEST BANK CONTAINS ALL KEY SUBJECT AREAS:
AGENCY, CONTRACTS, VALUATION, FINANCING
& ETHICS, UPDATED FOR 2026/2027.
PART 1: REAL ESTATE LAW & REGULATIONS
(Questions 1–20)
1. Under the Nova Scotia Real Estate Trading
Act, which term best describes "trading"?
• A) The act of buying a property for personal
use
, • B) The execution of a real estate transaction
on behalf of a client
• C) The management of a rental property
• D) The appraisal of a property for tax
purposes
☑VERIFIED ANSWER: B
Rationale: "Trading" is defined as the activity of
buying, selling, leasing, or otherwise dealing in
real estate on behalf of another person.
2. Who has the authority to audit a
brokerage's books under the NSREC?
• A) The Registrar only
• B) The Board of Directors only
• C) The Commission as a whole
• D) The local municipal government
,☑VERIFIED ANSWER: C
Rationale: The NSREC Commission has the
power to conduct audits, investigations, and
discipline licensees.
3. Which of the following is NOT a requirement
for obtaining a Nova Scotia real-estate licence?
• A) Completion of the pre-licensing course
• B) Passing the provincial written exam
• C) Ownership of a property in Nova Scotia
• D) Criminal background check
☑VERIFIED ANSWER: C
Rationale: Owning property is not a licensing
requirement; education, passing the exam, and
a background check are required.
, 4. The Recovery Fund primarily protects:
• A) Real-estate agents from client lawsuits
• B) The public against loss due to a licensee's
misconduct
• C) Brokerage firms from market downturns
• D) The government's tax revenue
☑VERIFIED ANSWER: B
Rationale: The fund reimburses clients who
suffer losses caused by a licensee's breach of
duties.
5. What is the primary role of the Nova Scotia
Real Estate Commission (NSREC)?
• A) To represent the interests of REALTORS®
• B) To regulate the real estate industry in
Nova Scotia
