State Exam Practice

Question 1

Which of the following would be considered a property improvement?
a) An alteration to land to make it more useful.
b) An increase in the value of a property.
c) A chicken coop permanently attached to the land.
d) A parcel of land that has passed a percolation test.

Answer 1

c) A chicken coop permanently attached to the land.

Question 2

When does an estate at will terminate?

Answer 2

It terminates on the death of the lessor or lessee.

Question 3

A borrower obtains a 30-year fully amortizing mortgage loan of $50,000 at 8%. What is the principle balance at the end of the loan term?
a) $2000
b) $50,000
c) $220
d) $0

Answer 3

$0

Question 4

A homeowner paid $185,000 for a house three years ago. The house sells today for $239,000. How much has the property appreciated?
a) 23%
b) 77%
c) 29%
d) 123%

Answer 4

c) 29%

Step 1. Subtract the original cost from the new value which equals $54,000
Step 2. Divide the result of $54,000 by the original price of $185,000 which gives us 29% rounded.

Question 5

Calculate how many acres are in the Southeastern 1/4 of the Western 1/2 of the Eastern 1/2 of section 9.
a) 20 Acres
b) 40 Acres
c) 60 Acres
d) 5 Acres

Answer 5

b) 40 Acres.

Step 1. There are 640 acres in a section of land and we start at the section and work our way back to the smallest parcel of land.
Step 2. 640 acres/2=320 acres.
Step 3. 320 acres/2=160 acres.
step 4. 160 acres/4=40 acres.

Question 6

The Nevada Real Estate Commission:
a) Adopts regulations
b) Enacts statuses
c) Adjudicates consumer complaints
d) Regulates the conduct of the parties to a real estate transaction

Answer 6

A) Adopts regulations

Question 7

The Nevada Real Estate Commission has how many members?
a) 10 members
b) 7 members
c) 5 members
d) 3 members

Answer 7

5 members

Question 8

Rhonda, a real estate salesperson forgot to put an expiration date in a written listing agreement. Can she be disciplined?

Answer 8

Yes. An expiration date is required in all brokerage agreements. It is illegal to write a brokerage agreement that lacks an expiration date.

Question 9

How long must a broker retain transaction records?

Answer 9

5 years.

Question 10

Which of the following is a basic type of Nevada real estate license?
a) Broker-salesperson
b) Broker in charge
c) Broker manager
d) Broker affiliate

Answer 10

a) Broker-salesperson

Question 11

Roxanne, a real estate salesperson just entered a written listing agreement with a client. How long does she have to deliver the agreement to her broker?
a) 5 Calendar days
b) 5 Working days
c) 7 Calendar days
d) 7 Working days

Answer 11

a) 5 Calendar days
All paperwork must be submitted within 5 calendar days after all parties have signed the paperwork

Question 12

A property manager must maintain how many trust accounts?
a) 1 account
b) 2 accounts
c) 3 accounts
d) 4 accounts

Answer 12

b) 2 accounts. 1 for rental operations and 1 for security deposits.

Question 13

Which of the following is true about a team or a group?
a) The team must be supervised by at least a broker salesperson
b) All members of the team must be associated with the same broker
c) The name of the team can not include the name of a member
d) The team must have at least 3 members

Answer 13

b) All members of the team must be associated with the same broker