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)
1. A prospective buyer learns that a seller-financed mortgage
carries an interest rate well above market averages, but the
loan terms specify that interest is calculated strictly on the
remaining principal balance with no pre-payment penalties. If
the buyer pays off the loan five years early, what happens to
the remaining interest that would have accrued over the
original term?
A) The buyer must pay a penalty equal to 50% of the unearned
interest.
B) The unearned interest is canceled because interest accrues
only while principal is outstanding.
C) The buyer remains obligated to pay the full nominal interest
agreed upon at signing.
D) The lender can sue for specific performance to force the
original amortization schedule.
Answer: B
,Rationale: Interest represents the cost of using borrowed money
over time. When principal is prepaid without penalty, interest
stops accruing on the paid portion, so unearned future interest is
canceled.
2. A commercial property owner signs an exclusive right-to-sell
listing agreement with Brokerage A. Two weeks later, the
owner independently negotiates a sale with a long-time
business associate without any involvement from Brokerage
A. Which statement best describes the owner's legal
obligation regarding the commission?
A) No commission is owed because the broker was not the
procuring cause of the sale.
B) The owner owes full commission to Brokerage A regardless of
who procured the buyer.
C) The owner owes 50% of the agreed commission as a
administrative fee.
D) The listing contract automatically converts to an open listing,
waiving commission.
Answer: B
Rationale: Under an exclusive right-to-sell listing, the brokerage
is entitled to the agreed-upon commission if the property sells
during the listing term, regardless of who negotiated or procured
the sale.
, 3. An investor purchases an apartment building with an annual
Effective Gross Income (EGI) of $240,000 and operating
expenses of $90,000. If comparable properties in the area
sell at a capitalization rate of 7.5%, what is the estimated
market value of the property using the Income Approach?
A) $1,200,000
B) $2,000,000
C) $3,200,000
D) $4,400,000
Answer: B
Rationale: Net Operating Income (NOI) = $240,000 - $90,000 =
$150,000. Market Value = NOI / Cap Rate = $150,.075 =
$2,000,000.
4. A home buyer submits an offer with a clause stating, "This
offer is conditional upon the buyer obtaining suitable
mortgage financing within 5 business days." On day three,
the seller receives a higher offer with no conditions. Can the
seller accept the second offer immediately?
A) Yes, because a conditional offer is not legally binding on the
seller.
B) Yes, provided the seller gives the first buyer a 24-hour notice to
remove conditions.
C) No, unless the original agreement included a specific "escape
clause" allowing the seller to do so.
, D) No, because conditional offers automatically become firm and
binding after 48 hours.
Answer: C
Rationale: Once an offer is accepted, a binding contract exists
subject to the condition. The seller cannot accept another primary
offer or terminate the agreement unless a specific escape/72-hour
clause was explicitly included in the contract terms.
5. Two individuals buy a lakefront property together. The deed
specifies that each holds an undivided 50% interest, but it
does not mention rights of survivorship. Upon the death of
one owner, what happens to their share of the property?
A) It automatically transfers to the surviving owner through joint
tenancy.
B) It escheat to the provincial/state government.
C) It passes to the deceased owner's heirs or estate according to
their will or intestate law.
D) The property must be immediately sold at a public auction.
Answer: C
Rationale: When co-owners hold title without specified rights of
survivorship, the default tenancy is tenancy in common. Upon
death, a tenant in common's share passes to their estate/heirs,
not to the surviving co-owner.
6. A seller completes a property disclosure form stating that the
basement has never experienced water seepage. However,
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)
1. A prospective buyer learns that a seller-financed mortgage
carries an interest rate well above market averages, but the
loan terms specify that interest is calculated strictly on the
remaining principal balance with no pre-payment penalties. If
the buyer pays off the loan five years early, what happens to
the remaining interest that would have accrued over the
original term?
A) The buyer must pay a penalty equal to 50% of the unearned
interest.
B) The unearned interest is canceled because interest accrues
only while principal is outstanding.
C) The buyer remains obligated to pay the full nominal interest
agreed upon at signing.
D) The lender can sue for specific performance to force the
original amortization schedule.
Answer: B
,Rationale: Interest represents the cost of using borrowed money
over time. When principal is prepaid without penalty, interest
stops accruing on the paid portion, so unearned future interest is
canceled.
2. A commercial property owner signs an exclusive right-to-sell
listing agreement with Brokerage A. Two weeks later, the
owner independently negotiates a sale with a long-time
business associate without any involvement from Brokerage
A. Which statement best describes the owner's legal
obligation regarding the commission?
A) No commission is owed because the broker was not the
procuring cause of the sale.
B) The owner owes full commission to Brokerage A regardless of
who procured the buyer.
C) The owner owes 50% of the agreed commission as a
administrative fee.
D) The listing contract automatically converts to an open listing,
waiving commission.
Answer: B
Rationale: Under an exclusive right-to-sell listing, the brokerage
is entitled to the agreed-upon commission if the property sells
during the listing term, regardless of who negotiated or procured
the sale.
, 3. An investor purchases an apartment building with an annual
Effective Gross Income (EGI) of $240,000 and operating
expenses of $90,000. If comparable properties in the area
sell at a capitalization rate of 7.5%, what is the estimated
market value of the property using the Income Approach?
A) $1,200,000
B) $2,000,000
C) $3,200,000
D) $4,400,000
Answer: B
Rationale: Net Operating Income (NOI) = $240,000 - $90,000 =
$150,000. Market Value = NOI / Cap Rate = $150,.075 =
$2,000,000.
4. A home buyer submits an offer with a clause stating, "This
offer is conditional upon the buyer obtaining suitable
mortgage financing within 5 business days." On day three,
the seller receives a higher offer with no conditions. Can the
seller accept the second offer immediately?
A) Yes, because a conditional offer is not legally binding on the
seller.
B) Yes, provided the seller gives the first buyer a 24-hour notice to
remove conditions.
C) No, unless the original agreement included a specific "escape
clause" allowing the seller to do so.
, D) No, because conditional offers automatically become firm and
binding after 48 hours.
Answer: C
Rationale: Once an offer is accepted, a binding contract exists
subject to the condition. The seller cannot accept another primary
offer or terminate the agreement unless a specific escape/72-hour
clause was explicitly included in the contract terms.
5. Two individuals buy a lakefront property together. The deed
specifies that each holds an undivided 50% interest, but it
does not mention rights of survivorship. Upon the death of
one owner, what happens to their share of the property?
A) It automatically transfers to the surviving owner through joint
tenancy.
B) It escheat to the provincial/state government.
C) It passes to the deceased owner's heirs or estate according to
their will or intestate law.
D) The property must be immediately sold at a public auction.
Answer: C
Rationale: When co-owners hold title without specified rights of
survivorship, the default tenancy is tenancy in common. Upon
death, a tenant in common's share passes to their estate/heirs,
not to the surviving co-owner.
6. A seller completes a property disclosure form stating that the
basement has never experienced water seepage. However,
