NSAR SALESPERSON LICENSING EXAM – ACTUAL
TEST BANK | NOVA SCOTIA ASSOCIATION OF
REALTORS® (NSAR) / NOVA SCOTIA REAL ESTATE
COMMISSION (NSREC) NEWEST 2026/2027 ACTUAL
EXAM COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) WITH RAT
1. The Nova Scotia Real Estate Trading Act (RETA) is administered by which body?
A) Nova Scotia Association of REALTORS® (NSAR)
B) Nova Scotia Real Estate Commission (NSREC)
C) Real Estate Council of Nova Scotia
D) Department of Justice
Answer B: Nova Scotia Real Estate Commission (NSREC)
Rationale: NSREC is the regulatory body responsible for administering RETA and licensing real estate
professionals in Nova Scotia.
2. A salesperson is employed by a brokerage. Who holds the client’s trust funds?
A) The salesperson
B) The brokerage (in a trust account)
C) The seller
D) The buyer’s lawyer
Answer B: The brokerage (in a trust account)
Rationale: Trust funds must be deposited in the brokerage’s trust account, not held personally by the
salesperson.
3. Under the Real Estate Trading Act, a licensee must disclose any material defect known to them
to:
,A) Only the buyer
B) Only the seller
C) All parties to the transaction
D) The real estate commission only
Answer C: All parties to the transaction
Rationale: Licensees have a duty to disclose known material defects to all parties, ensuring full
transparency.
4. Which of the following is NOT a fiduciary duty owed to a client?
A) Loyalty
B) Confidentiality
C) Obedience to all client instructions, even illegal ones
D) Accounting
Answer C: Obedience to all client instructions, even illegal ones
Rationale: Fiduciary duties include loyalty, confidentiality, disclosure, obedience (to lawful instructions),
and accounting.
5. A listing agreement must be in writing to be enforceable. This is required by:
A) Common law only
B) The Real Estate Trading Act
C) The REALTOR® Code only
D) The Land Registration Act
Answer B: The Real Estate Trading Act
Rationale: RETA requires that listing agreements be in writing and signed by the seller.
6. In Nova Scotia, what is the maximum commission rate that can be charged?
A) 5% of the sale price
B) 6% of the sale price
,C) There is no maximum; commission is negotiable
D) 3% of the sale price
Answer C: There is no maximum; commission is negotiable
Rationale: Real estate commissions are negotiable between the seller and the brokerage; there is no
legislated maximum.
7. A brokerage is required to keep trust account records for a minimum of:
A) 2 years
B) 7 years
C) 5 years
D) 10 years
Answer B: 7 years
Rationale: Trust account records must be retained for at least 7 years as per NSREC requirements.
8. When a buyer signs an offer to purchase, the offer becomes a binding contract when:
A) The buyer’s agent signs it
B) The seller accepts and communicates acceptance to the buyer
C) The deposit is paid
D) The offer is presented to the seller
Answer B: The seller accepts and communicates acceptance to the buyer
Rationale: A contract is formed when acceptance is communicated; signing alone is not enough.
9. Under the Land Registration Act, which system is used in Nova Scotia?
A) Deed registration system
B) Land Titles system (Torrens)
C) Abstract system
D) Indefeasible title system
Answer B: Land Titles system (Torrens)
, Rationale: Nova Scotia uses the Land Titles system (Torrens), which provides state-guaranteed title.
10. A salesperson must disclose their agency relationship to a buyer:
A) Only if the buyer is a first-time homebuyer
B) At the earliest practical opportunity, in writing
C) Only after an offer is accepted
D) Never
Answer B: At the earliest practical opportunity, in writing
Rationale: Agency disclosure must be made in writing as soon as possible to avoid confusion.
11. The term “material defect” refers to:
A) Any minor repair issue
B) A significant flaw that would affect a reasonable buyer’s decision
C) Only structural problems
D) Any cosmetic issue
Answer B: A significant flaw that would affect a reasonable buyer’s decision
Rationale: A material defect is one that would influence a reasonable buyer’s decision to purchase.
12. A brokerage may represent both the buyer and seller in the same transaction if:
A) It is a cash sale
B) Both parties provide informed written consent after full disclosure
C) The commission is waived
D) The property is listed at market value
Answer B: Both parties provide informed written consent after full disclosure
Rationale: Multiple representation is permitted only with informed consent from both parties.
13. What is the primary purpose of the Real Estate Trading Act?
TEST BANK | NOVA SCOTIA ASSOCIATION OF
REALTORS® (NSAR) / NOVA SCOTIA REAL ESTATE
COMMISSION (NSREC) NEWEST 2026/2027 ACTUAL
EXAM COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) WITH RAT
1. The Nova Scotia Real Estate Trading Act (RETA) is administered by which body?
A) Nova Scotia Association of REALTORS® (NSAR)
B) Nova Scotia Real Estate Commission (NSREC)
C) Real Estate Council of Nova Scotia
D) Department of Justice
Answer B: Nova Scotia Real Estate Commission (NSREC)
Rationale: NSREC is the regulatory body responsible for administering RETA and licensing real estate
professionals in Nova Scotia.
2. A salesperson is employed by a brokerage. Who holds the client’s trust funds?
A) The salesperson
B) The brokerage (in a trust account)
C) The seller
D) The buyer’s lawyer
Answer B: The brokerage (in a trust account)
Rationale: Trust funds must be deposited in the brokerage’s trust account, not held personally by the
salesperson.
3. Under the Real Estate Trading Act, a licensee must disclose any material defect known to them
to:
,A) Only the buyer
B) Only the seller
C) All parties to the transaction
D) The real estate commission only
Answer C: All parties to the transaction
Rationale: Licensees have a duty to disclose known material defects to all parties, ensuring full
transparency.
4. Which of the following is NOT a fiduciary duty owed to a client?
A) Loyalty
B) Confidentiality
C) Obedience to all client instructions, even illegal ones
D) Accounting
Answer C: Obedience to all client instructions, even illegal ones
Rationale: Fiduciary duties include loyalty, confidentiality, disclosure, obedience (to lawful instructions),
and accounting.
5. A listing agreement must be in writing to be enforceable. This is required by:
A) Common law only
B) The Real Estate Trading Act
C) The REALTOR® Code only
D) The Land Registration Act
Answer B: The Real Estate Trading Act
Rationale: RETA requires that listing agreements be in writing and signed by the seller.
6. In Nova Scotia, what is the maximum commission rate that can be charged?
A) 5% of the sale price
B) 6% of the sale price
,C) There is no maximum; commission is negotiable
D) 3% of the sale price
Answer C: There is no maximum; commission is negotiable
Rationale: Real estate commissions are negotiable between the seller and the brokerage; there is no
legislated maximum.
7. A brokerage is required to keep trust account records for a minimum of:
A) 2 years
B) 7 years
C) 5 years
D) 10 years
Answer B: 7 years
Rationale: Trust account records must be retained for at least 7 years as per NSREC requirements.
8. When a buyer signs an offer to purchase, the offer becomes a binding contract when:
A) The buyer’s agent signs it
B) The seller accepts and communicates acceptance to the buyer
C) The deposit is paid
D) The offer is presented to the seller
Answer B: The seller accepts and communicates acceptance to the buyer
Rationale: A contract is formed when acceptance is communicated; signing alone is not enough.
9. Under the Land Registration Act, which system is used in Nova Scotia?
A) Deed registration system
B) Land Titles system (Torrens)
C) Abstract system
D) Indefeasible title system
Answer B: Land Titles system (Torrens)
, Rationale: Nova Scotia uses the Land Titles system (Torrens), which provides state-guaranteed title.
10. A salesperson must disclose their agency relationship to a buyer:
A) Only if the buyer is a first-time homebuyer
B) At the earliest practical opportunity, in writing
C) Only after an offer is accepted
D) Never
Answer B: At the earliest practical opportunity, in writing
Rationale: Agency disclosure must be made in writing as soon as possible to avoid confusion.
11. The term “material defect” refers to:
A) Any minor repair issue
B) A significant flaw that would affect a reasonable buyer’s decision
C) Only structural problems
D) Any cosmetic issue
Answer B: A significant flaw that would affect a reasonable buyer’s decision
Rationale: A material defect is one that would influence a reasonable buyer’s decision to purchase.
12. A brokerage may represent both the buyer and seller in the same transaction if:
A) It is a cash sale
B) Both parties provide informed written consent after full disclosure
C) The commission is waived
D) The property is listed at market value
Answer B: Both parties provide informed written consent after full disclosure
Rationale: Multiple representation is permitted only with informed consent from both parties.
13. What is the primary purpose of the Real Estate Trading Act?
