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

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. The Real Estate Trading Act (RETA) is the primary legislation governing real
estate licensees in Nova Scotia. RETA is found in which chapter of the Nova Scotia
Revised Statutes?

A. Chapter 225
B. Chapter 226
C. Chapter 227
D. Chapter 228

Correct Answer: A
Rationale: The Real Estate Trading Act (RETA) is Chapter 225 of the Revised Statutes of
Nova Scotia, 1989.

2. Which regulatory body administers the Real Estate Trading Act in Nova Scotia?

A. Nova Scotia Association of REALTORS® (NSAR)
B. Nova Scotia Real Estate Commission (NSREC)
C. Nova Scotia Department of Service Nova Scotia and Municipal Relations
D. Real Estate Council of Nova Scotia

Correct Answer: B
Rationale: The Nova Scotia Real Estate Commission (NSREC) is the regulatory body
responsible for administering the Real Estate Trading Act.

3. The primary purpose of the Real Estate Trading Act is to:

A. Protect real estate agents
B. Protect the public
C. Promote real estate sales
D. Generate revenue for the province

,Correct Answer: B
Rationale: The primary purpose of the Real Estate Trading Act is to protect the public by
ensuring that licensees are competent and ethical.

4. Which of the following is NOT a function of NSREC?

A. Licensing real estate agents
B. Enforcing the Real Estate Trading Act
C. Setting commission rates
D. Investigating complaints

Correct Answer: C
Rationale: NSREC does not set commission rates. Commission rates are negotiated
between brokers and clients.

5. The Real Estate Trading Act requires licensees to maintain which of the
following?

A. Errors and omissions insurance
B. A trust account
C. A place of business
D. All of the above

Correct Answer: D
Rationale: RETA requires licensees to maintain E&O insurance, a trust account, and a
place of business.

6. What is the minimum amount of errors and omissions insurance required for
licensees in Nova Scotia?

A. $500,000
B. $1,000,000
C. $2,000,000
D. $5,000,000

Correct Answer: B
Rationale: Nova Scotia requires E&O insurance in the amount of $1,000,000 per
occurrence.

, 7. The Real Estate Trading Act establishes the requirement for licensees to
maintain a trust account. The purpose of a trust account is to:

A. Hold client funds
B. Hold broker funds
C. Hold agent funds
D. Hold lender funds

Correct Answer: A
Rationale: A trust account holds client funds such as deposits and other monies held in
trust.

8. The Real Estate Trading Act was first enacted in what year?

A. 1950
B. 1962
C. 1975
D. 1989

Correct Answer: B
Rationale: The Real Estate Trading Act was first enacted in 1962.

9. Which of the following is a requirement for license renewal in Nova Scotia?

A. Proof of errors and omissions insurance
B. Proof of continuing education
C. Payment of renewal fee
D. All of the above

Correct Answer: D
Rationale: License renewal requires E&O insurance, continuing education, and payment
of fees.

10. The Nova Scotia Real Estate Commission consists of how many members?

A. 5
B. 6
C. 7
D. 8