Nevada Real Estate Salesperson Exam — All Questions

Real estate salespersons in Nevada are licensed and regulated under NRS Chapter 645 by:

• a.The Nevada Department of Taxation, Property Division
• b.The Nevada Secretary of State, Commercial Recordings✓
• c.The Nevada Real Estate Division, Dept. of Business
• d.The Nevada Attorney General, Consumer Protection Unit

The Nevada Real Estate Division, within the Department of Business and Industry, administers NRS Chapter 645 and licenses salespersons and brokers, while the Real Estate Commission handles regulations and discipline. A trade association is a private membership group and does not license practitioners.

Under Nevada law, a real estate salesperson may perform brokerage activity:

• a.Independently, once the examination has been passed
• b.Only on behalf of and supervised by a licensed broker✓
• c.Under the direct supervision of the Real Estate Division
• d.Jointly with any other licensee holding an active licence

A Nevada salesperson may perform licensed brokerage activity only on behalf of and under the supervision of a licensed real estate broker. The salesperson may not act independently, and the broker is responsible for supervision and trust accounts.

A Nevada salesperson may lawfully accept compensation for licensed activity from:

• a.Any cooperating broker in the transaction
• b.The broker under whom the salesperson is licensed✓
• c.The buyer directly at closing
• d.The seller directly upon listing

Under NRS 645, a Nevada salesperson may accept compensation for licensed activity only from the broker under whom the salesperson is licensed, not directly from a client or another broker. The supervising broker is responsible for paying the salesperson.

The body that adopts the regulations in NAC Chapter 645 and hears disciplinary matters against Nevada licensees is made up of:

• a.Seven members elected by the licensees of this State
• b.Three members appointed by the Administrator of the Division
• c.Five members appointed by the Governor✓
• d.Nine members named by the Nevada Association of Realtors

NRS 645.050 creates the Real Estate Commission and fixes its size at five members appointed by the Governor. The Commission adopts regulations and conducts hearings; the Real Estate Division, headed by the Administrator, issues the licenses. Cite: NRS 645.050(1).

A Nevada broker holds a property management permit and manages rental homes for several owners. The broker's trust accounting must consist of:

• a.Two trust accounts, one for rents and one for security deposits✓
• b.One trust account that may also hold the broker's own reserve
• c.One combined trust account used for sales and rentals alike
• d.No trust account, if each tenant pays the property owner directly

A broker engaged in property management must maintain two property management trust accounts distinct from any trust account used for other real estate transactions: one used solely for rental operations and one used solely for security deposits. A ledger account is required for each managed unit. Cite: NAC 645.655(8).

A seller accepts a Nevada buyer's offer on Tuesday. The broker holding the buyer's earnest money check must deposit it:

• a.Within five calendar days after the offer was written
• b.Only after every contingency has been removed
• c.Before the end of the next banking day after acceptance✓
• d.Within 24 hours after escrow is opened by the title company

Failing to deposit any check or cash received as earnest money before the end of the next banking day after acceptance of an agreement is a ground for discipline, unless the purchase agreement itself provides otherwise. Cite: NRS 645.630(1)(k).

A Nevada salesperson takes a deposit from a buyer. The salesperson must pay it over to the broker or to the escrow company named in the contract:

• a.Within 5 calendar days after receiving the deposit
• b.Within 1 business day after receiving a fully executed contract✓
• c.At the next monthly reconciliation of the trust account
• d.Within 3 business days after the seller accepts the offer

A licensee who receives a deposit must pay it over to the broker or owner-developer, or to the escrow business designated in the contract, within 1 business day after receiving a fully executed contract. The statute separately requires the salesperson to pay money over to the broker promptly. Cite: NAC 645.657; NRS 645.310(2).

What does NRS 645.310 require a Nevada broker to do with each separate trust account?

• a.Balance it quarterly and report every withdrawal to the Division
• b.Balance it annually and have it audited by a certified accountant
• c.Balance it weekly and file a copy of the bank statement
• d.Balance it at least monthly and give the Division an annual accounting✓

The broker must keep records showing whose money is on deposit, balance each separate trust account at least monthly, and provide the Division an annual accounting that reconciles each trust account. Commingling client money with the broker's own is prohibited. Cite: NRS 645.310(3), (5).

Which statement about signatures on a Nevada brokerage's trust account is correct?

• a.A salesperson may not be the only required signatory✓
• b.A salesperson may sign alone with the broker's written approval
• c.A rubber stamp of the broker's name satisfies the requirement
• d.Only a person who is not licensed may be added as a cosigner

No money may be withdrawn from a custodial or trust account without the signature of a licensee, and a rubber stamp is not a signature for that purpose. A real estate salesperson may be a cosigner with the broker but may never be the only required signatory. Cite: NAC 645.655(5), (6).

How long must a Nevada broker keep complete real estate transaction and property management records?

• a.3 years after the close of escrow, excluding offers that were rejected
• b.7 years after the close of escrow, including every rejected offer
• c.5 years after the closing or the last activity, including offers not accepted✓
• d.2 years after closing, unless the Division asks for a longer period

The broker must keep complete transaction and property management records for at least 5 years after the closing or the last activity involving the property, and that expressly includes offers that were not accepted and transactions that were never completed. Cite: NAC 645.650(1).

A Nevada salesperson buys an Instagram advertisement for her listing. The advertisement must include:

• a.Her name and the words 'licensed in Nevada'
• b.Her name and the county in which the property is located
• c.The brokerage name only; a license number is not required
• d.Her license number and the name of her brokerage✓

In any advertisement offering licensed services the licensee must include his or her license number and disclose the name of the brokerage with which the licensee is associated, and the brokerage name must be identified with prominence. A salesperson may not advertise solely under his or her own name. Cite: NRS 645.315(1), (2); NAC 645.610(1)(c), (e).

A Nevada salesperson owns a rental duplex and wants to sell it himself. In advertising it he must:

• a.Use the words 'for sale by owner-agent' or similar✓
• b.Describe it as 'for sale by owner' and omit his license number
• c.List it with a brokerage other than his own
• d.Obtain written approval from the Division before advertising

A licensee may not use his or her name or telephone number in a 'for sale by owner' advertisement. A licensee who has an ownership interest may advertise the property only if the advertisement says 'for sale by owner-agent' (or 'owner-broker' for a broker) or substantially similar words. Cite: NAC 645.610(1)(b).

Before a Nevada licensee may advertise a specific property that is exclusively listed by another broker, the licensee must obtain:

• a.Nothing, because the listing is published in the multiple listing service
• b.The owner's written consent, obtained without the listing broker
• c.The prior written consent of the listing broker✓
• d.A cooperating commission agreement signed at closing

A licensee shall not publish an advertisement or place a sign referring to the availability of a property exclusively listed by another broker without the prior written consent of the listing broker, and that consent may not be given or withheld without the owner's knowledge. Cite: NAC 645.610(1)(d).

A Nevada salesperson terminates her association with her broker on March 1. NRS 645.580 requires that she:

• a.Keep working for the former broker until the license is transferred
• b.Associate with another broker or request inactive status within 30 days✓
• c.Apply for an original license and retake the state examination
• d.Notify the Division within 10 days and continue taking new listings

A broker-salesperson or salesperson must, within 30 days after termination of the association, become associated with another broker or owner-developer or request that the license be placed on inactive status. The former broker separately has 10 days to notify the Division of the termination. Cite: NRS 645.580(1), (2).

A buyer obtains a final fraud judgment against a Nevada licensee and cannot collect it. Recovery from the Real Estate Education, Research and Recovery Fund is capped at:

• a.$10,000 per judgment, with no cap for any one licensee
• b.$50,000 per judgment and $50,000 for any one licensee
• c.The full unpaid judgment, including punitive damages
• d.$25,000 per judgment, and $100,000 for any one licensee✓

The Fund pays unpaid actual damages of not more than $25,000 per judgment, and its total liability for any one licensee may not exceed $100,000. A licensee may not recover from the Fund for a transaction in which he or she acted as a licensee. Cite: NRS 645.844(1), (2).