STATE TEST

Question 1

When a licensed broker changes his or her place of business

Answer 1

• If the broker changes their address and moves the files they must give the division 10 days prior notice.
• If the broker does not move the files it is within 10 days.

Question 2

Regarding the location of transaction records, a broker

Answer 2

• must notify the division before moving records to a new location.
• If the records are moved the broker must give the division 10 days prior notice.

Question 3

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

Answer 3

The licensee may incorporate themselves for tax purposes. Nevada licensees may be the only stock holders.

Question 4

A corporation doing business as a real estate broker has designated K, a corporate officer, to be the broker. K

Answer 4

• may act on his or her own behalf if separately licensed and with the approval of the corporation
• K may have two licenses. One personal broker license and one for the corporation as long as both agree.

Question 5

A salesperson has left a real estate brokerage, and his license has been returned to the division. What maximum time is allowed for reaffiliation before the license is placed on inactive status?

Answer 5

• No time is allowed at all.
• The license is inactive the moment it is at the division but not more than 30 days.
• The agent must affiliate with a new broker within 30 days to avoid additional requirements.

Question 6

Which of the following is a requirement to obtain a registration as a qualified intermediary?

Answer 6

• Post a minimum of $25,000 bond

- The intermediary does not need to be licensed.

Question 7

In order to receive an exemption to registration for a “large lot” subdivision, every lot or unit must be

Answer 7

• more than 80 acres net of easements

- If all lots are greater than 80 acres they are exempt from NRS 119 regulations.

Question 8

A developer must register a subdivision if the minimum number of lots in a subdivision are

Answer 8

• 35 or more

- If the subdivision is 35 units or more, it will be governed by NRS 119.

Question 9

The sale of how many time-shares in a year in a project requires registration?

Answer 9

• 13

- If 13 or more the project will be governed by NRS 119A.

Question 10

How often must a time-share project submit the performance report of an exchange program to the division?

Answer 10

• Annually

Question 11

A 500-acre parcel is divided into 20-acre lots. This subdivision

Answer 11

• is exempt from registration

- There would be 25 units. The requirement to register is 35 or more.

Question 12

What are the three types of agency recognized in Nevada?

Answer 12

• Single agency of one party only, disclosed dual agency with consent, assigned agency
• These options for agency are disclosed in the duties owed.

Question 13

A real estate licensee must give the Duties Owed by a Nevada Licensee Form to prospective purchasers/tenants

Answer 13

• no later than the time of entering an agreement to purchase or lease
• The duties owed must accompany any listing or contract for sale or lease.

Question 14

A licensed salesperson obtains a listing. Several days later, the salesperson meets prospective buyers at the property and tells them, “I am the listing agent for this property, and so I’m very familiar with it.” Under these circumstances, the salesperson

Answer 14

• has not yet properly disclosed his or her agency relationship.
• The duties owed must be presented

Question 15

When a broker represents a seller of real estate, the Duties Owed by a Nevada Real Estate Licensee Form must be given to the

Answer 15

Both parties as soon as practicable, but not later than the offer and acceptance.

Question 16

After a listing agreement is signed, the broker decides to try for more exposure by placing the listing on MLS and making a blanket offer of sub agency. Is the broker’s action acceptable?

Answer 16

• No, because the seller did not agree to this action

- The agent must have the client’s approva

Question 17

The licensing law of Nevada requires that the

Answer 17

• Any material fact the broker is aware of concerning a property must be disclosed to the buyer.

Question 18

An applicant for a real estate license in Nevada must

Answer 18

• not have had a real estate license revoked within the last year before applying.
• The applicant must be 18 years of age, no college is required and test results are valid for one year.

Question 19

An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following?

Answer 19

• Prosecution by the district attorney

- If guilty the offense is a felony D.

Question 20

A licensee who allows his or her license to expire has how long to reinstate the license without monetary penalty?

Answer 20

• There is no “free” time If the license is expired, there will be a penalty and required CE to activate the license.

Question 21

A nonresident license applicant must file with the Nevada Real Estate Division a

Answer 21

• consent to service of process
• The consent to service will allow the administrator to be served in a suit on behalf of the licensee here in Nevada and not the state where the licensee resides.

Question 22

the following are exempt from the provisions of the NRS 645 EXCEPT a(n)

Answer 22

• individual who receives compensation for procuring prospective buyers or renters of real estate

Question 23

A broker manages three properties for the same owner under separate property management agreements. One property is in need of emergency repairs, but there is not enough money in the management account to cover the cost. The broker borrows money from the escrow account of one of the other properties to make the repairs. Which of the following is true?

Answer 23

• Separate accounting must be kept for each agreement.

Question 24

In Nevada, brokers and salespeople who are not lawyers may

Answer 24

• fill in blanks on preprinted form contracts customarily used in their community.
• A licensee must not give advice or practice law.