Nevada Real Estate Salesperson Exam — All Questions

Under NRS Chapter 113, a seller of residential real property in Nevada must generally provide the buyer with:

• a.A completed Seller's Real Property Disclosure Form✓
• b.A preliminary title report issued by the title company
• c.A certificate of occupancy from the local building office
• d.A professional home inspection paid for by the seller

Nevada's NRS Chapter 113 requires a seller of residential real property to complete and deliver a Seller's Real Property Disclosure Form describing known conditions and defects. It reflects the seller's actual knowledge and is not a warranty or a substitute for an inspection.

Earnest money that a Nevada salesperson receives from a buyer must be:

• a.Held in the salesperson's own account until closing
• b.Deposited directly with the title company by the buyer
• c.Delivered to the supervising broker for the trust account
• d.Kept in the brokerage office safe until both sides sign✓

Client money such as earnest money must be handled through the broker's trust account and kept separate from personal funds; NRS 645 prohibits commingling. A salesperson who receives the money must deliver it to the supervising broker. Converting or commingling trust money is a serious violation.

Nevada's seller's real property disclosure form under NRS 113 must be handled how?

• a.The seller's agent fills it out and serves it at the close of escrow
• b.The seller completes it and serves it within 10 days after closing
• c.Either party may complete it before the offer
• d.The seller completes it and it is served 10 days before conveyance✓

At least 10 days before residential property is conveyed, the seller must complete the disclosure form and the seller or the seller's agent must serve it on the purchaser or the purchaser's agent. A seller's agent may not complete the form on the seller's behalf. Cite: NRS 113.130(1)(a).

May a Nevada buyer agree to waive the seller's real property disclosure required by NRS 113.130?

• a.No, a purchaser may not waive those requirements✓
• b.Yes, if the waiver is in writing and notarized
• c.Yes, if the property is sold in its present condition
• d.Yes, if the buyer has already paid for a home inspection

A purchaser may not waive any requirement of NRS 113.130(1), and a seller may not make waiver a condition of sale. A buyer may waive the separate damages remedies of NRS 113.150 only in a signed, notarized writing. Cite: NRS 113.130(3); NRS 113.150(6).

A Nevada seller knowingly conveys a home without disclosing a defect whose repair cost was not limited by the purchase agreement. The buyer may recover:

• a.The actual cost of repair, with no attorney's fees
• b.Treble the repair cost, plus costs and attorney's fees✓
• c.Rescission of the sale, which is the only remedy available
• d.A refund of the earnest money deposit only

A buyer conveyed property without the required disclosure may recover treble the amount necessary to repair or replace the defective part, with court costs and reasonable attorney's fees, in an action brought within 1 year after discovery or 2 years after conveyance, whichever is later. Cite: NRS 113.150(4).

A Nevada listing is a home where a homicide occurred, and a prior owner manufactured methamphetamine in the garage. Under NRS 40.770:

• a.The homicide is not material, but an unremediated meth lab is✓
• b.Both facts must be disclosed on the seller's disclosure form
• c.Neither fact is material to the transaction in any case
• d.The homicide becomes material once the buyer asks about it

The fact that property was the site of a homicide, suicide or other death, or of a felony, is not material to the transaction, but the statute carves out methamphetamine manufacture: that fact is not material only after the materials are removed or remediated by a certified entity or the board of health deems the property safe. Cite: NRS 40.770(1), (6).

A buyer under contract for a Nevada condominium receives the resale package. The buyer may cancel the purchase contract by written notice until:

• a.3 business days after the contract is signed
• b.Midnight of the fifth calendar day after receiving it✓
• c.Midnight of the tenth calendar day following the seller's acceptance
• d.Any time before the deed is recorded

A purchaser may cancel by written notice until midnight of the fifth calendar day following the date of receipt of the resale package, and the contract must contain a provision saying so. Cancellation is without penalty and all payments must be refunded promptly. Cite: NRS 116.4109(2).

A Nevada unit owner asks the association in writing for the documents needed for the resale package. The association must furnish them within:

• a.3 business days after the request is made
• b.30 calendar days after the request is made
• c.5 business days after escrow is opened
• d.10 calendar days✓

Within 10 calendar days after receiving a written request the association must furnish the declaration, bylaws, rules, budget and financial statement plus the certificate. If it fails to furnish them within those 10 days, the purchaser is not liable for the delinquent assessment. Cite: NRS 116.4109(3), (5).

A Nevada association forecloses its assessment lien on a unit that carries a recorded first deed of trust. The association's lien is prior to that security interest to the extent of:

• a.3 months of assessments
• b.6 months of assessments plus all fines
• c.9 months of assessments✓
• d.12 months of assessments and attorney's fees

The association's lien is prior to a recorded first security interest to the extent of the common-expense assessments that would have become due during the 9 months immediately preceding the recording of the notice of default, plus limited collection costs. Federal regulation may shorten the period, but never below 6 months. Cite: NRS 116.3116(3)(b).

The Nevada real property transfer tax on a residential sale is owed by:

• a.The seller alone, as a matter of law
• b.The buyer and the seller, jointly and severally✓
• c.The escrow holder, who must remit it at recording
• d.The county recorder, out of the recording fees collected

Buyer and seller are jointly and severally liable for the transfer tax and any penalties and interest, and the escrow holder is not liable. The parties may agree by contract who pays, but that agreement does not limit the recorder's ability to collect from either one. Cite: NRS 375.030(2), (4).

Which conveyance is exempt from the Nevada real property transfer tax?

• a.A conveyance to a cousin who pays fair market value
• b.A conveyance to a neighbor for less than the assessed value
• c.A conveyance from a parent to a child✓
• d.A conveyance to a business partner for no consideration

The exemptions include a conveyance to a person related to the owner within the first degree of lineal consanguinity or affinity, a transfer between former spouses under a divorce decree, and a transfer to or from a trust without consideration when a certificate of trust is presented. Cite: NRS 375.090(5), (6), (7).

A married Nevada couple holds their home as community property and wants to sell it. To convey the property:

• a.Either spouse acting alone may sign, since the interests are equal
• b.Only the spouse named first on the vesting deed must sign
• c.Both spouses must join in the deed and both must acknowledge it✓
• d.One spouse may sign if the other is notified before closing

Nevada is a community property state, and although either spouse may generally manage community property, neither spouse may sell, convey or encumber community real property unless both join in executing the deed and both acknowledge it. Cite: NRS 123.230(3).

When does a Nevada married couple's community property carry a right of survivorship?

• a.Automatically, because community property always carries it
• b.Only if the instrument expressly declares that right✓
• c.Only if the couple also record a separate affidavit
• d.Never; survivorship requires a joint tenancy deed

A right of survivorship does not arise in community property unless the instrument creating the estate expressly declares that the married couple take as community property with right of survivorship, and the right is extinguished if either spouse transfers his or her interest during the marriage. Cite: NRS 111.064(2).

Which of these is the separate property of one spouse under Nevada law?

• a.A house a spouse owned before the marriage✓
• b.A house bought during the marriage with one spouse's wages
• c.Rent collected during the marriage from a duplex bought together
• d.A car bought during the marriage and titled to one spouse

Separate property is what a spouse owned before marriage and what the spouse later acquires by gift, bequest, devise, descent or a personal injury award, together with the rents, issues and profits of that property. Everything else acquired after marriage is presumed community property. Cite: NRS 123.130; NRS 123.220.

A builder is selling a new home in Las Vegas to its initial purchaser. The gaming enterprise district disclosure must be:

• a.Given to any buyer of any home anywhere in Nevada
• b.Given at the close of escrow in every Nevada county
• c.Given at least 24 hours before the initial purchaser signs✓
• d.Given only if the buyer asks about nearby casinos

In a county whose population is 700,000 or more, a seller may not sign a sales agreement with the initial purchaser of a residence unless the gaming enterprise district disclosure was provided at least 24 hours before signing. The purchaser may waive the 24-hour period in a signed writing. Cite: NRS 113.080(1), (3).