NEVADA REAL ESTATE SALESPERSON EXAM|ALL QUESTIONS
AND ANSWERS(VERIFIEDANSWERS) PLUS DETAILED
RATIONALES | COMPLETE STUDYGUIDE | DOWNLOAD
INSTANT PDF 2027-2028
1. A broker lists a residential property in Las Vegas and discovers a major structural
defect in the foundation that the seller neglected to disclose on the mandatory real estate
disclosure form. What is the primary ethical and legal obligation of the licensee?
A. Ignore the defect since the seller filled out the form independently
B. Disclose the known material defect immediately to all prospective buyers regardless of the
seller's wishes
C. Instruct the seller to fix the defect quietly before holding an open house
D. Cancel the listing agreement to avoid liability
Answer: B
Rationale: Real estate licensees in Nevada have an affirmative duty to disclose all known
material facts and defects affecting the value or desirability of the property to any prospective
buyer, overriding any instructions from the seller to conceal such information.
2. Which of the following governmental powers allows the State of Nevada to enact zoning
laws, building codes, and environmental regulations to protect public health, safety, and
general welfare?
A. Eminent domain
B. Taxation
C. Police power
D. Escheat
Answer: C
Rationale: Police power is the inherent authority of state and local governments to regulate
private property through zoning, planning, and building codes to ensure community well-
being.
3. An investor purchases commercial real estate in Reno using a mortgage loan that
includes personal property along with the real estate as security for the debt. What type of
financing instrument is being utilized?
A. Package mortgage
B. Blanket mortgage
C. Purchase money mortgage
D. Shared appreciation mortgage
,Answer: A
Rationale: A package mortgage covers both real property and personal property (such as
commercial kitchen equipment or furnishings) under a single security instrument.
4. When a Nevada real estate salesperson decides to transfer their license from one broker
to another, what procedural step must be completed first with the Real Estate Division?
A. Pay a full re-licensing application fee of five hundred dollars
B. Notify the Division in writing, surrender the current license, and submit the required transfer
documentation along with the releasing broker's signature
C. Retake the state licensing examination to verify current competency
D. Wait until the next annual renewal cycle to process the office change
Answer: B
Rationale: License transfers require formal written notification to the Nevada Real Estate
Division, release confirmation from the former broker, and submission of proper transfer
documentation before the salesperson can legally practice under the new broker.
5. A buyer and seller enter into a binding purchase agreement for a single-family home in
Henderson, but before closing, the property is severely damaged by an accidental fire.
Under the Uniform Vendor and Purchaser Risk Act, who bears the risk of loss?
A. The buyer, because equitable title transfers upon contract execution
B. The seller, because legal title and possession remain with them until closing and delivery of
the deed
C. The escrow agent holding the earnest money deposit
D. The real estate brokerage firms representing both parties equally
Answer: B
Rationale: Under the standard Uniform Vendor and Purchaser Risk Act provisions, the risk of
loss remains with the seller until legal title or possession is transferred to the buyer at closing.
6. Which type of lease agreement requires the commercial tenant to pay a base monthly
rent plus a designated percentage of their gross monthly retail sales volume?
A. Net lease
B. Gross lease
C. Percentage lease
D. Ground lease
Answer: C
,Rationale: Percentage leases are common in retail environments, combining a fixed baseline
rent with an additional variable amount tied directly to the gross income generated by the
tenant's business.
7. A property owner grants a neighbor a written, revocable, non-exclusive permission to
cross their land to access a private fishing pond. What legal interest has been created?
A. Appurtenant easement
B. Easement by necessity
C. License
D. Profit a prendre
Answer: C
Rationale: A license is a personal, revocable, and non-exclusive privilege to use another
person's land for a specific purpose, which does not create an estate in land or run with the
title.
8. What is the minimum educational pre-licensing requirement mandated by the Nevada
Real Estate Division for an individual applying for a real estate salesperson license?
A. 45 hours of instruction
B. 90 hours of instruction, including approved courses in principles, law, and contracts
C. 120 hours of specialized commercial brokerage training
D. A four-year degree in urban land economics
Answer: B
Rationale: Nevada law requires applicants for a salesperson license to complete 90 hours of
approved pre-licensing education covering core real estate principles, practices, and state law.
9. How many members compose the Nevada Real Estate Commission, and who appoints
them?
A. Five members appointed by the Governor
B. Seven members appointed by the state Attorney General
C. Nine members elected by registered real estate brokers statewide
D. Three members appointed by the Director of the Department of Business and Industry
Answer: A
Rationale: The Nevada Real Estate Commission consists of five members appointed by the
Governor, who must have active real estate licensing experience and meet geographical
representation criteria.
, 10. An appraiser estimating the market value of an aging office building calculates the
current cost to construct a replica using identical materials and methods, then subtracts
accrued depreciation. Which valuation approach is being applied?
A. Income capitalization approach
B. Sales comparison approach
C. Cost (replacement or reproduction) approach
D. Gross rent multiplier approach
Answer: C
Rationale: The cost approach calculates the current reproduction or replacement cost of
improvements, subtracts estimated physical, functional, and external depreciation, and adds
the estimated land value.
11. A homeowner fails to pay their local property taxes assessed by Clark County. Which
type of lien takes absolute legal priority over all other existing mortgages, mechanic's liens,
and judgment liens against the property?
A. Special assessment lien
B. Federal income tax lien
C. General real estate property tax lien
D. First mortgage lien
Answer: C
Rationale: General ad valorem real estate property tax liens and special assessment liens take
superior priority over all private liens, regardless of the date they were recorded.
12. What is the legal status of an oral agreement for the listing and sale of residential real
estate in Nevada?
A. Fully enforceable by either party in a court of law
B. Voidable at the option of the buyer or tenant
C. Unenforceable in a court of law due to the provisions of the Statute of Frauds
D. A misdemeanor offense punishable by immediate license revocation
Answer: C
Rationale: The Statute of Frauds requires all contracts for the sale or lease of real estate for a
term exceeding one year to be in writing and signed by the party to be charged in order to be
legally enforceable.
13. A real estate licensee advertises a property listing on social media stating that the
neighborhood features "exclusive white-glove security and pristine lifestyle standards."
Does this advertisement violate fair housing laws?
AND ANSWERS(VERIFIEDANSWERS) PLUS DETAILED
RATIONALES | COMPLETE STUDYGUIDE | DOWNLOAD
INSTANT PDF 2027-2028
1. A broker lists a residential property in Las Vegas and discovers a major structural
defect in the foundation that the seller neglected to disclose on the mandatory real estate
disclosure form. What is the primary ethical and legal obligation of the licensee?
A. Ignore the defect since the seller filled out the form independently
B. Disclose the known material defect immediately to all prospective buyers regardless of the
seller's wishes
C. Instruct the seller to fix the defect quietly before holding an open house
D. Cancel the listing agreement to avoid liability
Answer: B
Rationale: Real estate licensees in Nevada have an affirmative duty to disclose all known
material facts and defects affecting the value or desirability of the property to any prospective
buyer, overriding any instructions from the seller to conceal such information.
2. Which of the following governmental powers allows the State of Nevada to enact zoning
laws, building codes, and environmental regulations to protect public health, safety, and
general welfare?
A. Eminent domain
B. Taxation
C. Police power
D. Escheat
Answer: C
Rationale: Police power is the inherent authority of state and local governments to regulate
private property through zoning, planning, and building codes to ensure community well-
being.
3. An investor purchases commercial real estate in Reno using a mortgage loan that
includes personal property along with the real estate as security for the debt. What type of
financing instrument is being utilized?
A. Package mortgage
B. Blanket mortgage
C. Purchase money mortgage
D. Shared appreciation mortgage
,Answer: A
Rationale: A package mortgage covers both real property and personal property (such as
commercial kitchen equipment or furnishings) under a single security instrument.
4. When a Nevada real estate salesperson decides to transfer their license from one broker
to another, what procedural step must be completed first with the Real Estate Division?
A. Pay a full re-licensing application fee of five hundred dollars
B. Notify the Division in writing, surrender the current license, and submit the required transfer
documentation along with the releasing broker's signature
C. Retake the state licensing examination to verify current competency
D. Wait until the next annual renewal cycle to process the office change
Answer: B
Rationale: License transfers require formal written notification to the Nevada Real Estate
Division, release confirmation from the former broker, and submission of proper transfer
documentation before the salesperson can legally practice under the new broker.
5. A buyer and seller enter into a binding purchase agreement for a single-family home in
Henderson, but before closing, the property is severely damaged by an accidental fire.
Under the Uniform Vendor and Purchaser Risk Act, who bears the risk of loss?
A. The buyer, because equitable title transfers upon contract execution
B. The seller, because legal title and possession remain with them until closing and delivery of
the deed
C. The escrow agent holding the earnest money deposit
D. The real estate brokerage firms representing both parties equally
Answer: B
Rationale: Under the standard Uniform Vendor and Purchaser Risk Act provisions, the risk of
loss remains with the seller until legal title or possession is transferred to the buyer at closing.
6. Which type of lease agreement requires the commercial tenant to pay a base monthly
rent plus a designated percentage of their gross monthly retail sales volume?
A. Net lease
B. Gross lease
C. Percentage lease
D. Ground lease
Answer: C
,Rationale: Percentage leases are common in retail environments, combining a fixed baseline
rent with an additional variable amount tied directly to the gross income generated by the
tenant's business.
7. A property owner grants a neighbor a written, revocable, non-exclusive permission to
cross their land to access a private fishing pond. What legal interest has been created?
A. Appurtenant easement
B. Easement by necessity
C. License
D. Profit a prendre
Answer: C
Rationale: A license is a personal, revocable, and non-exclusive privilege to use another
person's land for a specific purpose, which does not create an estate in land or run with the
title.
8. What is the minimum educational pre-licensing requirement mandated by the Nevada
Real Estate Division for an individual applying for a real estate salesperson license?
A. 45 hours of instruction
B. 90 hours of instruction, including approved courses in principles, law, and contracts
C. 120 hours of specialized commercial brokerage training
D. A four-year degree in urban land economics
Answer: B
Rationale: Nevada law requires applicants for a salesperson license to complete 90 hours of
approved pre-licensing education covering core real estate principles, practices, and state law.
9. How many members compose the Nevada Real Estate Commission, and who appoints
them?
A. Five members appointed by the Governor
B. Seven members appointed by the state Attorney General
C. Nine members elected by registered real estate brokers statewide
D. Three members appointed by the Director of the Department of Business and Industry
Answer: A
Rationale: The Nevada Real Estate Commission consists of five members appointed by the
Governor, who must have active real estate licensing experience and meet geographical
representation criteria.
, 10. An appraiser estimating the market value of an aging office building calculates the
current cost to construct a replica using identical materials and methods, then subtracts
accrued depreciation. Which valuation approach is being applied?
A. Income capitalization approach
B. Sales comparison approach
C. Cost (replacement or reproduction) approach
D. Gross rent multiplier approach
Answer: C
Rationale: The cost approach calculates the current reproduction or replacement cost of
improvements, subtracts estimated physical, functional, and external depreciation, and adds
the estimated land value.
11. A homeowner fails to pay their local property taxes assessed by Clark County. Which
type of lien takes absolute legal priority over all other existing mortgages, mechanic's liens,
and judgment liens against the property?
A. Special assessment lien
B. Federal income tax lien
C. General real estate property tax lien
D. First mortgage lien
Answer: C
Rationale: General ad valorem real estate property tax liens and special assessment liens take
superior priority over all private liens, regardless of the date they were recorded.
12. What is the legal status of an oral agreement for the listing and sale of residential real
estate in Nevada?
A. Fully enforceable by either party in a court of law
B. Voidable at the option of the buyer or tenant
C. Unenforceable in a court of law due to the provisions of the Statute of Frauds
D. A misdemeanor offense punishable by immediate license revocation
Answer: C
Rationale: The Statute of Frauds requires all contracts for the sale or lease of real estate for a
term exceeding one year to be in writing and signed by the party to be charged in order to be
legally enforceable.
13. A real estate licensee advertises a property listing on social media stating that the
neighborhood features "exclusive white-glove security and pristine lifestyle standards."
Does this advertisement violate fair housing laws?
