Nevada 90-Hr Pre-Licensing Completion Certificate

Question 1 of 120

The rights of ownership of real property include all of the following EXCEPT

a. compatibility.

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b. disposition.

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c. exclusion.

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d. control.

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Question 2 of 120

An important characteristic of land is that it may be modified or improved at some point in time. An improvement may increase the value of real estate greatly. All of the following are considered to be improvements EXCEPT

a. sewers.

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b. crops.

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c. buildings.

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d. roads.

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Question 3 of 120

A business owner leases a space to open a restaurant and installs ovens, booths, counters, and other equipment. When would these items become real property?

a. At lease expiration, if the owner does not remove them

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b. After they are installed

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c. When the owner defaults on rental payments

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d. After the lease takes effect

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Question 4 of 120

A house has been listed for sale for more than one year and the owner is very anxious to move into a retirement community. A real estate professional, who is a subagent of the seller, tells a prospective buyer to make a low offer because the seller is likely to accept it. Regarding the real estate professional’s conduct in giving that advice to the buyer, which of the following is FALSE?

a. The real estate professional acted appropriately to sell the seller’s property.

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b. The real estate professional's conduct implies representation of the buyer.

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c. The real estate professional should not assume that an anxious seller will accept a lower offer.

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d. The real estate professional has violated a fiduciary duty to the seller.

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Question 5 of 120

A real estate professional who represents the seller is showing a house to a prospective buyer-customer. The real estate professional knows that the house has water problems in the basement. Which of the following is TRUE?

a. Withholding the information prevents the buyer from making an informed decision.

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b. Withholding the information properly protects the confidence of the seller.

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c. Disclosing the information could create a fiduciary relationship with the buyer.

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d. Disclosing the information violates the real estate professional’s fiduciary duty to the seller.

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Question 6 of 120

What is a commission of 5% on a sales price of $250,000?

a. $25,000

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b. $1,750

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c. $12,500

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d. $3,571

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Question 7 of 120

A broker’s newest sales associate brings in a listing for the sale of a condominium. In this transaction, the sales associate

a. has a direct contractual relationship with the owner of the condominium.

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b. acts on behalf of the broker.

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c. acts on behalf of the condominium association.

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d. must personally find a buyer for the condominium to obtain a share of the commission.

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Question 8 of 120

The commission on the sale of a house is $9,410, and 30% of that amount goes to the broker who listed the property. Of the remainder, the broker whose sales associate who brought a buyer to the transaction gets 45%, and the sales associate receives the balance. How much does the sales associate receive?

a. $4,389

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b. $3,728

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c. $3,622.85

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d. $2,587.75

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Question 9 of 120

The type of real estate ownership that is MOST inclusive is a

a. life estate.

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b. fee simple estate.

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c. conditional fee estate.

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d. reversionary interest.

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Question 10 of 120

A father conveyed the family home to his daughter by will as a life estate pur autre vie for the life of her mother. If the daughter should die before the mother, who gains possession of the property?

a. Remainderman

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b. Mother

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c. Father’s other children

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d. Daughter’s heirs

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Question 11 of 120

The owner of two acres of land sold one acre to a neighbor and reserved an appurtenant easement over that acre for ingress and egress to the remaining acre. The acre retained by the property owner

a. is the servient tenement.

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b. will be cleared of the easement when the retained acre is sold to a third party.

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c. is the dominant tenement.

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d. is subject to an easement in gross.

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Question 12 of 120

The owner of 50 acres of land with 500 feet of frontage on a desirable recreational lake wishes to subdivide the parcel into salable lots, but wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective lot purchaser?

a. Appurtenant easement

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b. Easement in gross

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c. Easement by necessity

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d. License

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Question 13 of 120

A homestead exemption protects against judgments

a. of unsecured creditors.

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b. resulting from unpaid taxes.

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c. from foreclosure of a mortgage.

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d. that result from the costs of improvements.

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Question 14 of 120

The owner of oceanfront property noticed that people from town walked along the shore behind the house on the property. The owner learned that the local citizens always walked along the beach, but the owner went to court to try to stop people from walking along the water’s edge behind the home. The owner is likely to be

a. unsuccessful because the local citizens have been doing this for years and thus have an easement.

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b. successful because the owner’s property extends to the low-water mark.

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c. successful because access to property can be controlled by the property owner.

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d. unsuccessful because the owner’s property extends only to the high-water mark and the public may use the land beyond that point.

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Question 15 of 120

“Beginning at the SE corner of the NE¼ of section 14, then due west 5,280 feet more or less to the SW corner of the NW¼ of section 14, then north along the west line of section 14 2,640 feet, more or less, to the NW corner of said NW¼, then in a straight line to the point of beginning.” How many acres does this parcel contain?

a. 80

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b. 120

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c. 160

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d. 320

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Question 16 of 120

This year’s property taxes on a parcel are $1,743.25 and have not been paid. If a sale of the property is to be closed on August 12, what is the approximate tax proration that will be charged to the seller based on a 360-day year?

a. $668

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b. $1,074

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c. $1,104

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d. $1,220

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Question 17 of 120

A suburban home with four bedrooms and only one bathroom suffers from what condition?

a. Curable physical deterioration

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b. Incurable physical deterioration

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c. Functional obsolescence

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d. External obsolescence

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Question 18 of 120

A house sold for $180,000 and the buyer obtained an FHA-insured mortgage loan for $120,000. If the lender charged two discount points, the buyer would pay

a. $1,200.

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b. $1,000.

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c. $2,400.

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d. $1,800.

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Question 19 of 120

A buyer bought a house for $125,000. The house, which had originally sold for $118,250, appraised for $122,500. Based on these facts, if the buyer applies for an 80% mortgage, what will be the amount of the loan?

a. $94,600

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b. $98,000

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c. $100,000

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d. $106,750

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Question 20 of 120

A developer is planning a warehouse that will contain 103,000 square feet. Construction costs are estimated to be $62 per square foot. Ninety-five percent financing is available for the structure. How much money must the developer put up to complete the project?

a. $638,600

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b. $5,747,400

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c. $6,066,700

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d. $319,300

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Question 21 of 120

In what way does a deed of trust differ from a mortgage?

a. Number of parties involved in the loan

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b. Obligation of the borrower to repay the funds

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c. Redemption rights allowed after foreclosure

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d. Time period permitted to cure a default

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Question 22 of 120

A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called

a. a chain of title.

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b. a title insurance policy.

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c. an abstract of title.

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d. a certificate of title.

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Question 23 of 120

The type of title insurance that will protect the owner and heirs is called

a. a lender’s policy.

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b. a leasehold policy.

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c. an owner’s policy.

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d. a certificate of sale policy.

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Question 24 of 120

The clause in a deed that defines the ownership right received by the grantee is the

a. granting clause.

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b. habendum clause.

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c. appurtenance clause.

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d. acknowledgment.

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Question 25 of 120

A property owner bought acreage but never saw it and did not use it. The owner regularly paid the real estate taxes on the acreage. Without the owner’s knowledge, a stranger moved a mobile home onto the property, drilled a well for water, and lived there for many years. This person may become the owner of the acreage if there has been compliance with state laws regarding

a. adverse possession.

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b. intestate succession.

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c. the statute of frauds.

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d. the statute of limitations.

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Question 26 of 120

A grantor does NOT wish to convey certain property rights. The grantor may note the exceptions in

a. a separate document.

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b. the purchase agreement.

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c. the listing agreement.

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d. the deed of conveyance.

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Question 27 of 120

In which of the following situations could a quitclaim deed NOT be used?

a. To convey title

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b. To release a nominal real estate interest

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c. To remove a cloud on title

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d. To warrant that a title is valid

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Question 28 of 120

Under the terms of a trust established by a will, the trustee is required to sell the real estate the trust holds. The deed that will be delivered at settlement of such a sale is a

a. deed of release.

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b. warranty deed.

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c. trustee’s deed.

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d. trustor’s deed.

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Question 29 of 120

An option is granted when an owner gives the potential purchaser the right to purchase the property

a. at any time or price.

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b. at a fixed price within a certain period of time.

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c. without making any official record of the purchase.

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d. with the seller's agreement at the time the option is exercised..

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Question 30 of 120

A broker receives an earnest money deposit with a written offer to purchase that includes a 10-day acceptance clause. On the fifth day, before the offer is accepted, the buyer notifies the broker that the offer is being withdrawn and demands the return of the earnest money deposit. In this situation, the

a. buyer cannot withdraw the offer because it must be held open for the full 10 days.

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b. seller and the broker have the right to each retain one-half of the deposit.

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c. broker declares the deposit forfeited and retains it for services rendered.

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d. buyer has the right to revoke the offer at any time until it is accepted and recover the earnest money.

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Question 31 of 120

The law that requires real estate contracts to be in writing to be enforceable is the

a. statute of frauds.

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b. law of descent and distribution.

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c. parol evidence rule.

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d. statute of limitations.

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Question 32 of 120

Which of the following is not generally exempt from paying real estate taxes?

a. for-profit senior living facility.

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b. municipal government.

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c. charitable hospital.

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d. private not-for-profit school.

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Question 33 of 120

Taxes levied on a property owner to pay for installation of sidewalks or sewers are called

a. adjunct taxes.

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b. special assessments.

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c. general property taxes.

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d. special excise taxes.

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Question 34 of 120

General real estate taxes are also called

a. ad valorem taxes.

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b. special assessments.

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c. appropriation funds.

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d. general, voluntary liens.

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Question 35 of 120

All of these are examples of government policies that can affect the real estate market EXCEPT

a. the Federal Reserve Board’s discount rate.

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b. a shortage of skilled labor or building materials.

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c. land-use controls, such as zoning.

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d. federal environmental regulations.

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Question 36 of 120

A property owner who does not want to deal with the everyday tasks of managing a rental property can hire

a. a property manager.

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b. an appraiser.

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c. a home inspector.

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d. a developer.

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Question 37 of 120

Which of these is an example of an economic characteristic of land?

a. Immobility

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b. Indestructibility

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c. Uniqueness

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d. Scarcity

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Question 38 of 120

Another word for uniqueness is

a. scarcity.

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b. nonhomogeneity.

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c. fructus industrials.

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d. immobility.

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Question 39 of 120

Which of these laws prohibits housing discrimination only on the basis of race?

a. Fair Housing Amendments Act of 1988

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b. Civil Rights Act of 1866

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c. Housing and Community Development Act of 1974

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d. Civil Rights Act of 1968

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Question 40 of 120

The Fair Housing Act is administered by the

a. Office of Equal Opportunity.

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b. Department of Housing and Urban Development (HUD).

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c. Department of Justice.

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d. federal court system.

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Question 41 of 120

The Fair Housing Act does NOT prohibit discrimination on the basis of

a. familial status.

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b. national origin.

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c. religious preference.

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d. annual income

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Question 42 of 120

If the government acquires privately owned real estate through a condemnation suit, it is exercising its power of

a. escheat.

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b. reverter.

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c. eminent domain.

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d. defeasance.

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Question 43 of 120

Three siblings bought a farm together, and the deed listed only each of their names. What form of ownership are they presumed to have taken?

a. Tenancy by the entireties

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b. Joint tenancy with right of survivorship

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c. Tenancy in common

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d. In severalty

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Question 44 of 120

The grantor is conveying an interest that is less than fee simple absolute. This explanation of the extent of ownership will be found in the

a. seisin clause.

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b. granting clause.

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c. habendum clause.

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d. exceptions and reservations.

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Question 45 of 120

A title insurance policy that protects the interests of a mortgagee is called

a. a leasehold policy.

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b. a lender’s policy.

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c. a certificate of sale policy.

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d. an ALTA policy.

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Question 46 of 120

In real estate, a sales associate is always

a. an independent contractor.

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b. an employee of a licensed broker.

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c. a licensee who performs real estate activities on behalf of a broker.

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d. a combination office manager, marketer, and organizer with a fundamental understanding of the real estate industry, who may or may not be licensed.

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Question 47 of 120

An individual who is authorized and consents to represent the interests of another person is

a. a customer.

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b. a principal.

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c. an agent.

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d. a facilitator.

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Question 48 of 120

Who are the parties to a listing agreement?

a. Buyer and seller

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b. Seller and broker

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c. Seller and sales associate

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d. Buyer and sales associate

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Question 49 of 120

A buyer and a seller enter into a sales contract for the sale of a home. The seller backs out of the deal at the last minute, and the buyer suffers a financial loss of $1,500 and must rent a home in which to live. Unless the contract provides otherwise, all of these are legal actions that are likely to succeed EXCEPT

a. the buyer may sue the seller for specific performance, forcing the sale of the home to the buyer.

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b. the buyer may sue the seller for damages to recover the $1,500 loss.

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c. the seller is not liable because the buyer should not have incurred the $1,500 cost before the sale.

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d. the buyer may sue the seller for the rent he paid.

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Question 50 of 120

Which of these would permit a law enforcement officer to seize and sell a debtor’s property?

a. Lis pendens

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b. Satisfaction of judgment

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c. Writ of execution

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d. Writ of attachment

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Question 51 of 120

Which of these is a general, statutory, and involuntary lien on both real and personal property?

a. Federal tax lien

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b. Mechanic’s lien

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c. Special assessment

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d. Consumer loan lien

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Question 52 of 120

A deed of trust involves all of these terms EXCEPT

a. lender.

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b. borrower.

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c. trustee.

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d. mortgagor.

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Question 53 of 120

The primary mortgage market lenders that have most recently branched out into making mortgage loans are

a. credit unions.

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b. endowment funds.

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c. insurance companies.

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d. savings associations.

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Question 54 of 120

A loss in the value of a property improvement for any reason is

a. functional obsolescence.

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b. depreciation.

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c. external obsolescence.

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d. physical deterioration.

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Question 55 of 120

Rights or privileges that are connected with real property are

a. appurtenances.

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b. improvements.

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c. not conveyed with the real estate.

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d. restricted to air and water rights.

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Question 56 of 120

Which of the following is NOT a test to identify a fixture?

a. Size of the item

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b. Intent of the parties

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c. Method of attachment of the item

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d. Adaptation of the item to the real estate

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Question 57 of 120

Which of the following BEST defines the law of agency?

a. Selling of another's property by a properly licensed brokerage company

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b. Principles that govern conduct in business

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c. Rules of law that apply to the responsibilities of a person who acts as agent for another

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d. Rules and regulations of the state's licensing agency

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Question 58 of 120

A licensed real estate sales associate has a written agreement with the employing broker indicating that the sales associate will not be treated as an employee. The sales associate’s income is solely from commissions. The IRS will MOST likely consider the sales associate

a. a real estate assistant.

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b. self-employed.

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c. an employee.

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d. a subagent.

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Question 59 of 120

Which of the following is NOT a type of listing contract?

a. Open

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b. Exclusive agency

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c. Exclusive right to sell

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d. MLS

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Question 60 of 120

The process by which government can acquire ownership of private land for public use is

a. condemnation.

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b. escheat.

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c. eminent domain.

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d. doctrine of public acquisition.

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Question 61 of 120

A real estate buyer want to ensure that the property can be willed to her family members. Which form of ownership would the buyer want?

a. Conventional life estate

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b. Joint tenancy

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c. License

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d. Fee simple estate

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Question 62 of 120

A tax lien on property can hinder its sale because it is

a. a monetary charge that the purchaser must satisfy.

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b. an appurtenance that does not affect the title.

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c. an encroachment.

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d. an encumbrance.

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Question 63 of 120

Which of the following is the BEST way to ensure that there are no encroachments and verify the boundaries of a parcel of land?

a. Write a legal description

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b. Find the monuments

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c. Get a spot survey

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d. Verify the benchmarks

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Question 64 of 120

A primary feature of property held in joint tenancy is that

a. a maximum of two people can own the real estate.

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b. the fractional interests of the owners can be different.

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c. there is a right of survivorship.

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d. additional owners may be added later.

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Question 65 of 120

A trust that is established after the death of the owner is called a

a. testamentary trust.

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b. trust by will.

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c. beneficial trust.

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d. living trust.

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Question 66 of 120

A standard rectangular survey system section contains

a. 36 townships.

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b. 160 government lots.

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c. 160 acres.

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d. 640 acres.

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Question 67 of 120

After real estate has been sold by the state or county to satisfy a delinquent tax lien, defaulted owners usually have a right to

a. redeem the property within the time specified by law.

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b. have the sale canceled by paying the back taxes and penalties.

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c. pay their creditors directly and have their liens removed.

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d. record a notice of nonresponsibility for the unpaid taxes.

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Question 68 of 120

Which of the following is a lien on real estate?

a. Recorded mortgage

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b. Easement

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c. Encroachment

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d. Restrictive covenant

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Question 69 of 120

The statute of frauds requires real estate contracts to be

a. recorded at the courthouse.

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b. no longer than 10 pages.

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c. verbal to be enforceable.

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d. in writing to be enforceable.

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Question 70 of 120

When a prospective buyer makes a written purchase offer that the seller accepts, the

a. buyer may take possession of the real estate.

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b. buyer receives equitable title to the property.

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c. seller grants the buyer possessory rights.

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d. buyer receives legal title to the property.

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Question 71 of 120

On Monday, the seller offers to sell a vacant lot to the buyer for $42,000. On Tuesday, the buyer counteroffers to buy for $40,500. On Friday, the buyer learns that several other prospects may be making offers on the property, so the buyer withdraws the counteroffer and agrees to the original asking price of $42,000. Under these conditions, there is

a. a valid agreement because the buyer accepted the seller's offer exactly as it was made.

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b. a valid agreement because the buyer accepted before the seller advised the buyer that the offer is withdrawn.

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c. not a valid agreement because the seller's offer was not accepted within 72 hours.

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d. not a valid agreement because the buyer's counteroffer was a rejection of the seller's offer, and once rejected, an offer cannot be accepted later.

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Question 72 of 120

The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that

a. all of the seller's interest in the property, if any, belongs to the buyer.

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b. the seller owned the property.

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c. there are no encumbrances against the property.

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d. the buyer now owns the property subject to certain claims of the seller.

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Question 73 of 120

Which of the following is a voluntary alienation of the property?

a. Adverse possession

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b. Condemnation

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c. Owner sale

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d. Foreclosure

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Question 74 of 120

Which of the following is an involuntary alienation of property?

a. Quitclaim

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b. Inheritance

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c. Condemnation

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d. Gift

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Question 75 of 120

A suit to quiet title refers to

a. the removal of a cloud on the title by court action.

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b. a title insurance company's search of the title.

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c. a mortgagor relinquishing title after foreclosure.

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d. the deposit of a title with an escrow agent.

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Question 76 of 120

When a mortgage loan has been paid in full, it is important for the borrower to be sure that

a. the paid note is placed in a safe deposit box.

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b. a deed of partial reconveyance is received.

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c. the paid mortgage is returned to the lender.

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d. a satisfaction of mortgage is recorded.

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Question 77 of 120

Any of the following clauses in a loan agreement enable the lender to demand the entire remaining debt be paid immediately EXCEPT

a. a due-on-sale clause.

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b. an acceleration clause.

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c. a defeasance clause.

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d. an alienation clause.

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Question 78 of 120

What would it cost to put new carpeting in a room measuring 18 feet by 20 feet if the carpet costs $16.95 per square yard, plus a $250 installation charge? (Hint: 1 yard = 3 feet; 1 square yard = 9 square feet)

a. $589

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b. $928

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c. $1,365

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d. $6,352

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Question 79 of 120

A proration of any prepaid utility charges is reflected at closing in which of the following ways?

a. Debit to the seller, credit to the buyer

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b. Debit to the buyer only

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c. Credit to the seller only

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d. Debit to the buyer, credit to the seller

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Question 80 of 120

A house sells for $215,000. The listing brokerage receives a 6% commission on the sale. How much does the listing brokerage receive?

a. $3,585

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b. $12,900

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c. $6,450

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d. $12,300

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Question 81 of 120

NEXT 40 QUESTIONS PERTAIN TO NEVADA STATE LAW PORTION:

Upon obtaining a listing, a broker or licensed salesperson is obligated to

a. give the person or persons signing the listing a legible, signed, true, and correct copy at the time of signing or within a reasonable time thereafter.

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b. place advertisements in the local newspapers at least three times per week.

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c. cooperate with every real estate office wishing to participate in the marketing of the listed property, whether or not they are members of MLS.

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d. set up a listing file and send a copy of the key documents to the Real Estate Division.

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Question 82 of 120

A licensed salesperson may hold concurrent licenses with more than one Nevada broker under which of the following circumstances?

a. With the permission of the sales manager

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b. With the written consent of the brokers holding the licenses

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c. Under no circumstances

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d. With the permission of the Real Estate Commission

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Question 83 of 120

In Nevada, in order to successfully sue for a commission, under an exclusive-right-to-sell listing, all of the following are necessary for a listing broker to be entitled to a commission EXCEPT

a. that there was a ready, willing, and able buyer under the terms of the agreement or terms that the seller subsequently accepted.

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b. that the listing agreement was in writing.

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c. that closing of title by the purchaser occurred.

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d. that the broker was properly licensed at the time the contract was negotiated.

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Question 84 of 120

An airline pilot told a broker about some friends who were looking for a new home. The broker contacted the friends and eventually sold them a house. When may the broker pay the airline pilot for this valuable lead?

a. Only after the sale closes

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b. After the funds are released from escrow

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c. As soon as a valid sales contract is signed by the parties

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d. Never

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Question 85 of 120

The owner of a home, who does not have a real estate license, wants to sell that home. The owner

a. is required to deliver the Seller’s Real Property Disclosure form to a buyer.

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b. is exempt from delivering a Seller’s Real Property Disclosure form because no licensee is involved.

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c. may have someone else complete the Seller’s Real Property Disclosure form.

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d. is not required to deliver a Seller’s Real Property Disclosure form unless the buyer requests it.

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Question 86 of 120

A salesperson who wants to place a For Sale sign on a listed property must

a. first sell the property.

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b. identify the brokerage firm on the sign and may identify the salesperson.

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c. list only the brokerage office phone number on the sign.

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d. get permission from the neighbors.

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Question 87 of 120

A salesperson has developed a website. What information, if anything, must the salesperson include on the website?

a. Name of the home office of the company that holds the salesperson’s license and a list of states in which the company is licensed

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b. Names of all the licensees in the broker’s office and the states in which they are licensed

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c. No need for additional disclosures

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d. Name of the brokerage that holds the salesperson’s license

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Question 88 of 120

Commissions earned by a broker in a real estate sales transaction

a. may be shared with an unlicensed person, provided that such person aided the broker in bringing the buyer and the seller together.

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b. are determined by agreement of the broker and the principal.

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c. may be deducted from the earnest money deposit and claimed by the broker as soon as the buyer and seller execute the purchase and sales agreement.

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d. are based on a schedule of commission rates set by the Nevada Real Estate Commission.

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Question 89 of 120

If a broker establishes an account to hold money belonging to others, which of the following is correct?

a. The account must be designated as a trust account.

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b. Accounts may be labeled as either a trust or a general account.

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c. The account cannot be in the same bank as the broker’s personal checking account.

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d. An individual account is required for each transaction.

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Question 90 of 120

Nevada’s time-share sales law does NOT apply to which of the following?

a. A time-share project that does not have an exchange program

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b. Owners selling a single time-share they own

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c. A developer selling time-shares that are not located in Nevada

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d. A time-share project with less than 50 units

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Question 91 of 120

Listings based on a net proceeds received by the seller are

a. always advisable.

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b. illegal in Nevada at any time.

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c. legal in Nevada as long as the seller agrees.

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d. permissible with approval of the Commission.

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Question 92 of 120

Nevada law requires that the

a. broker disclose material facts relating to the property even if the buyer does not ask for it and the seller has told the broker to keep it confidential.

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b. broker disclose everything revealed by the seller to the broker.

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c. broker keep all information confidential that the seller has provided about the property.

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d. seller disclose any material facts that might affect the sale.

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Question 93 of 120

A real estate agent does not have to include the brokerage name on a For Sale sign if the brokerage phone number is already included on the sign.

True

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False

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Question 94 of 120

Upon obtaining a listing, a broker or licensed salesperson is obligated to

a. set up a listing file and send a copy of the key documents to the Real Estate Division.

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b. place advertisements in the local newspapers at least three times per week.

Correct Incorrect Correct answer

c. give the person or persons signing the listing a legible, signed, true, and correct copy at the time of signing or within a reasonable time thereafter.

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d. cooperate with every real estate office wishing to participate in the marketing of the listed property, whether or not they are members of MLS.

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Question 95 of 120

In Nevada, all of the following are requirements for a broker-salesperson’s license EXCEPT

a. 64 college semester units or equivalent quarter units.

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b. be at least 18 years of age.

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c. having a reputation for being of good moral character.

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d. having at least two years’ active experience as a salesperson during the past four years.

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Question 96 of 120

The sale of a property for less than the amount of the liens encumbering the property is called a

a. short sale.

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b. deficiency sale.

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c. lien encumbered sale.

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d. fraud.

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Question 97 of 120

Which of the following is a requirement to obtain a real estate salesperson’s license in Nevada?

a. A four-year college degree

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b. A two-year college degree

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c. Successful completion of approved pre-license education

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d. Residency in Nevada

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Question 98 of 120

Every Nevada real estate office is required to

a. maintain escrow account records for five years.

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b. keep transaction records for five years.

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c. keep transaction records for three years.

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d. keep transaction records for eight years.

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Question 99 of 120

Kimberly obtained her original real estate salesperson’s license on March 25, 2013. Her license, if not renewed, will expire on

a. March 31, 2014.

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b. March 25, 2015.

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c. March 31, 2017.

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d. March 31, 2015.

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Question 100 of 120

Betty is a real estate broker with a small office. She does not have a property management permit. Can her office still legally engage in property management activities?

a. No, the broker must have a property management permit.

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b. Yes, if she posts a $50,000 bond with the Real Estate Division.

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c. Yes, if Betty is enrolled in the necessary classes to obtain a property management permit.

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d. Yes, if she appoints a designated property manager who has a property management permit and meets other qualifications.

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Question 101 of 120

The limits on recovery from the Education Research and Recovery Fund are _____ per judgment and _____ per licensee.

a. $50,000, $100,000

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b. $25,000, $100,000

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c. $15,000, $30,000

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d. $10,000, $20,000

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Question 102 of 120

The Real Estate Division’s disclosure document for subdivided land being offered for sale in Nevada is called the

a. public offering statement.

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b. disclosure report.

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c. property report.

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d. disclosure and analysis report.

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Question 103 of 120

A broker is convicted on May 1 of felony possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the Nevada Real Estate Division and leaves a message informing the Real Estate Division of the conviction. Based on these facts, which of the following is TRUE?

a. The conviction may cause further investigation by the Division with a possible complaint filed with the Commission.

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b. The broker has properly informed the Real Estate Division within the required 60 days after the conviction, and the broker’s license may be renewed.

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c. Because the conviction did not occur in state, it is not evidence of unworthy conduct.

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d. The conviction is grounds for immediate revocation of a license without a Commission hearing.

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Question 104 of 120

To be enforceable, all of the following agreements must be in writing EXCEPT

a. an exclusive-agency listing.

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b. an open listing.

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c. an exclusive-right-to-sell listing.

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d. an offer to purchase real estate.

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Question 105 of 120

Which warning message is on the cover of a public offering statement?

a. “Prospective purchaser should see the exact parcel considered before purchasing.”

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b. “Prospective purchaser has five calendar days to cancel any contract signed.”

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c. “Prospective purchaser should read this report before signing any paper.”

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d. “Prospective purchaser should seek competent advice if this report is not understood.”

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Question 106 of 120

Which of the following is a protected class under Nevada’s Fair Housing Law but not a protected class under the federal Fair Housing Act?

a. Race

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b. National origin

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c. Sex

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d. Sexual orientation

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Question 107 of 120

A broker is licensed in Montana only. The broker wants to sell lots in Nevada as mobile-home sites to Montana clients as winter homes. The broker may do this if the broker

a. obtains a cooperating certificate to work through a Nevada broker.

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b. relocates to Nevada.

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c. maintains all records in Montana.

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d. closes escrows in Nevada or Montana.

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Question 108 of 120

Regarding a salesperson setting up a corporation or LLC, NRS 645 allows

a. no salesperson to be the licensee for a corporation or LLC.

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b. only broker-salespersons to be the licensees for a corporation or LLC.

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c. a salesperson to set up a one-shareholder corporation or one-member LLC to associate with a broker.

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d. a salesperson to be a corporation or LLC only if all shareholders or members are licensed.

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Question 109 of 120

Commission hearings may result in

a. a judgment for an injured consumer against the licensee.

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b. fines, suspension, revocation, or conditional licensing.

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c. criminal prosecution.

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d. decisions that may not be appealed.

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Question 110 of 120

Regarding an office location, an active broker in Reno, Nevada,

a. may not have an office in the broker’s home.

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b. may not be further regulated or licensed by the city of Reno where the office is located.

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c. must not have the office in conjunction with another business the broker operates.

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d. must have an office in Nevada.

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Question 111 of 120

All of the following are grounds for disciplinary action EXCEPT

a. a licensee trying to negotiate a sale of property directly with an owner before another broker’s exclusive listing has expired.

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b. a licensee refusing to show property to a prospective purchaser due to poor credit.

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c. a licensee giving information on a rental to a tenant without the landlord’s permission.

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d. a licensee refusing to write a low offer that the licensee feels will not be accepted by the seller.

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Question 112 of 120

A new licensee is not yet a member of the National Association of REALTORS® but has already put the REALTOR® designation on the business card. Can the licensee be disciplined for this?

a. No, the licensee can be sued by the association but not disciplined.

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b. No, the licensee can be prosecuted by a district attorney but not disciplined.

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c. Yes, unless the licensee will obtain membership within one week.

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d. Yes.

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Question 113 of 120

What is the active experience requirement for a licensee to become a broker or a branch manager as managing broker-salesperson?

a. Two years out of the past four years

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b. Two years

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c. Two years out of the past three years

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d. Three years

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Question 114 of 120

A Nevada broker entered an exclusive buyer representation agreement with a client. The agreement, by its terms, was to expire on November 2, 2006. However, the broker and the client both agreed that if suitable property was not found by then, the agreement would automatically extend to January 5, 2007, unless either party gave notice that the extension was not desired. Suitable property was found and purchased on October 15, 2006, but the buyer refused to pay the agreed fee to the broker. Which of the following is MOST likely to happen in court if the broker sues to recover the agreed fee?

a. The broker will win because the property was purchased before the original expiration date.

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b. The buyer will win because buyer representation agreements are not allowed to have an expiration date.

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c. The buyer will win because the agreement is unenforceable.

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d. The buyer will win because all such fees are paid by the seller.

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Question 115 of 120

A broker collected a commission for a house that sold after the expiration of the listing agreement with the seller. This would MOST likely be the result of a

a. multiple listing fee share contract.

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b. procuring cause clause.

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c. net listing.

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d. broker protection clause.

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Question 116 of 120

Nevada real estate license law (NRS 645) is administered by the

a. legislature.

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b. Real Estate Division.

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c. state district courts.

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d. Governor.

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Question 117 of 120

Don has agreed to help his brother Robert sell his house. Don has disclosed his lack of a license to Robert, so they agree that Don will receive only $500 for his efforts. Which of the following is TRUE?

a. Don is not legally required to have a license because the agreed compensation is less than $1,000.

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b. Don is not legally required to have a license because he disclosed his lack of a license to Robert.

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c. Don is required to have a license to legally engage in this activity.

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d. Don is not legally required to have a license because Robert is his brother.

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Question 118 of 120

How much active experience is required to obtain a real estate broker’s license?

a. Two years within the preceding four years

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b. Two years within the preceding five years

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c. One year within the preceding two years

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d. One year within the preceding four years

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Question 119 of 120

A person is applying for a license as a broker. The applicant must show proof of liquid assets sufficient to maintain an office for at LEAST how many days?

a. 60

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b. 90

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c. 180

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d. 120

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Question 120 of 120

A salesperson is showing a listing to a very interested buyer. The asking price is $148,000. The salesperson suggests that the buyer make an offer of $138,000 to “get some action on the listing.” Has the salesperson violated NRS 645?

a. No, because the salesperson is representing the buyer whenever writing the offer.

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b. Yes, because the offer is not a bona fide price.

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c. No, because the salesperson is attempting to get an offer for the seller to consider or counter.

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d. Yes, because the salesperson suggested a price not authorized by the owner.

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Nevada 90-Hr Pre-Licensing Completion Certificate

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