Free Nevada Real Estate Practice Exam Questions (April 2024) 40+

The Nevada Real Estate Division (RED) is Nevada’s licensing entity. It is often abbreviated RED.

Nevada state law requires that copies of purchase agreements (and all related records whether or not the transaction ever closed), be kept by the broker for at least five years

Failing to deposit any check or cash deposit received as earnest money before the end of the next banking day, unless otherwise provided in the purchase agreement, results in a violation of: NRS 645.630. NRS 645.630 is authorized disciplinary action; grounds for disciplinary action; orders imposing discipline deemed public records. 645.630 put simply is any violation that has to do with: Making any material misrepresentation, misusing funds, improper handling of funds, failing to report information of funds and/or how they were handled.

No, but they must apply to become one. After they apply and are accepted, registration is valid for one year.

Representing to any lender, guaranteeing agency or any other interested party, verbally or through the preparation of false documents, an amount of excess of the actual sales price of the real estate or terms differing from those actually agreed upon, results in a violation of: NRS 645.635. NRS 645.635 is Unprofessional and improper conduct relating to real estate transactions. Read More Here

Failing, within a reasonable time to remit money which comes into their possession which belongs to others, results in a violation of: NRS 645.630. NRS 645.630 is authorized disciplinary action; grounds for disciplinary action; orders imposing discipline deemed public records. 645.630 put simply is any violation that has to do with: Making any material misrepresentation, misusing funds, improper handling of funds, failing to report information of funds and how they were handled. Read More Here

All of the following actions are allowed aside from: Giving listing presentations, interview buyers or present or negotiate offers. Per Nevada Code: Unlicensed assistants cannot give listing presentations, interview buyers or present or negotiate offers.

No it is not. Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds. Commingling is illegal in Nevada and is a violation of NRS 645.630

Per, NRS 645.990 Unlawful acts; penalties. “A person who violates any other provision of this chapter, if a natural person, is guilty of a gross misdemeanor, and if a limited-liability company, partnership, association or corporation, shall be punished by a fine of not more than $2,500.”

All parties, both buyer and seller, must be informed of any material defect; even if it is discovered after the contract has been formed per Nevada Licensing Law.

The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort. The concept is that a husband and wife are EQUAL partners.

Per Nevada License law the maximum paid out of the Real Estate Recovery Fund is $25,000 per judgement.

Willfully using any trade name, service mark or insignia of membership in any real estate organization of which the licensee is not a member, without the legal right to do so, results in a violation of: NRS 645.633. NRS 645.633 is improper trade practices; violations of certain orders, agreements, laws and regulations; criminal offenses; other unprofessional and improper conduct; reciprocal discipline; violations relating to property management; log of complaints. Read More Here

Gross negligence or incompetence in performing any act for which the person is required to hold a license, results in a violation of: NRS 645.633. NRS 645.633 is improper trade practices; violations of certain orders, agreements, laws and regulations; criminal offenses; other unprofessional and improper conduct; reciprocal discipline; violations relating to property management; log of complaints. Read More Here

Accepting, giving or charging any undisclosed commission, rebate or direct profit on expenditures made for a client, results in a violation of: NRS 645.633. NRS 645.633 is improper trade practices; violations of certain orders, agreements, laws and regulations; criminal offenses; other unprofessional and improper conduct; reciprocal discipline; violations relating to property management; log of complaints. Read More Here

All of the following actions are prohibited aside from drafting and assembling transaction documents. Unlicensed assistants can in fact do that. Per Nevada Code: Unlicensed assistants can draft and assemble transaction documents, draft correspondence, do office filing, develop and maintain mailing lists, and perform other clerical duties for a licensee.

A guilty conviction relating to the practice of the licensee, property manager or owner developer, results in a violation of: NRS 645.633. NRS 645.633 is improper trade practices; violations of certain orders, agreements, laws and regulations; criminal offenses; other unprofessional and improper conduct; reciprocal discipline; violations relating to property management; log of complaints. Read More Here

Paying a commission, compensation or a finder's fee to any person performing the services of a broker, broker-salesperson or salesperson who has not secured a license, results in a violation of: NRS 645.633. NRS 645.633 is improper trade practices; violations of certain orders, agreements, laws and regulations; criminal offenses; other unprofessional and improper conduct; reciprocal discipline; violations relating to property management; log of complaints. Read More Here

The Commission may take disciplinary action against any person who is guilty of guaranteeing future profits which may result from the resale of real property. This is misleading and is in the eyes of the commission fraudulent.

In any advertisement, the licensee must indicate the brokerage firm’s name in prominence to the licensee’s name. The purpose of this regulation is to provide accurate identification of the licensee and their broker to the consumer and the Real Estate Division.

All of the following actions are allowed aside from: show property or provide clients or consumers information on listings. Per Nevada Code: Unlicensed assistants cannot show property or provide clients or consumers information on listings.

Dower and Curtesy was an old law. Oftentimes, back in the day, real property owned by a husband was typically not inherited by the wife nor was the wife's property inherited by her husband. Instead, the property would either go to the children or some other member of the husband or wife's line. Since the late 1800’s the law has been largely abolished, however some states still hold the law true. Maryland abolished Dower and Courtesy in 1980. Today most states abolished dower and curtesy and generally provide the same benefits regardless of sex.

Under agency law in Nevada dual agency is legal with the consent of all parties. A license holder can represent both principals as a dual agent.

Failure to reduce a bona fide offer to writing where a proposed purchaser requests that it be submitted in writing, results in a violation of: NRS 645.635. NRS 645.635 is Unprofessional and improper conduct relating to real estate transactions. Read More Here

Any balance over $300,000 at the end of the fiscal year must be set aside and used by the Administrator for RE education & research.

Per Nevada License law, the minimum balance of the real estate education, research and recovery fund is $300,000.

The Governor is in charge of handling the appointment of board members. Per Nevada Real Estate License Law.

Under Nevada law, exclusive listing contracts do not need to adress or discuss the seller's net return.

Nevada’s protected classes are race, religious creed, color, national origin, disability, ancestry, familial status and sex. Currently sexual orientation is not a protected class for housing in Nevada.

Failure to deliver within a reasonable time, a copy of any purchase agreement of offer to buy or sell real estate to the purchases or to the seller, results in a violation of: NRS 645.635. NRS 645.635 is Unprofessional and improper conduct relating to real estate transactions. Read More Here

By law Nevada recognizes general and special agencies. Nevada does not recognize transactional agencies. Transactional agencies are where the broker agrees that he or she is not representing either party but only is hired to facilitate the transaction. Lastly unified and conceptual agencies are made up - they do not exist. So the answer is General and Special Agency.

All purchasers have a five calendar day grace period where they may cancel the transaction within the time period.

An “owner-developer” means a person who owns five or more lots within a recorded subdivision, shown on an approved parcel map, or the parceling of which has been approved by the county, on each of which there is a single-family residence not previously sold.

The term "residential property" in Nevada, means any land which has attached not less than one or more than four dwelling units.

All individuals who hold an active Nevada real estate salesperson's license are required to complete continuing education every two years in each four year licensing term.

The Real Estate Advisory Committee assists the Commission and/or Administrator in the evaluation of any educational course, seminar or conference; or the review of a matter that is the subject of an investigation pursuant to NAC 645.680. Read More Here

Guaranteeing, or having authorized or permitted a person to guarantee, future profits which may result in the resale of real property, results in a violation of: NRS 645.633. NRS 645.633 is improper trade practices; violations of certain orders, agreements, laws and regulations; criminal offenses; other unprofessional and improper conduct; reciprocal discipline; violations relating to property management; log of complaints. Read More Here

If a broker has a trust account and fails to maintain or submit an annual accounting to the Real Estate division, this results in a violation of: NRS 645.630. NRS 645.630 is authorized disciplinary action; grounds for disciplinary action; orders imposing discipline deemed public records. 645.630 put simply is any violation that has to do with: Making any material misrepresentation, misusing funds, improper handling of funds, failing to report information of funds and how they were handled. Read More Here

Commingling is when a licensee mixes funds held in care for a client with their own funds.

All individuals who hold an active Nevada salespersons license are required to complete 24 hours of Commission approved continuing education during each renewal period.