Free Nevada Real Estate Broker Exam Practice Test

Sample Nevada Broker practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Trust Accounts and Fiduciary Duties

   A Nevada real estate broker is holding earnest money for a transaction. The broker's trust account is overdrawn due to an accounting error, resulting in a shortage of $1,500. The broker uses $1,000 from another client's earnest money deposit and $500 of their own personal funds to cover the shortage. Which of the following actions constitutes a violation of Nevada real estate license law and regulations?

   • A.Depositing personal funds into the trust account to cover a shortage.
   • B.All of the above.(Correct)
   • C.Co-mingling personal funds with client funds in the trust account.
   • D.Withdrawing funds from the trust account without proper authorization.

   Explanation

   All of the above are violations. Using personal funds to cover a shortage is co-mingling. Using funds from another client's trust account without proper authorization for disbursement is a breach of trust and co-mingling. Withdrawing funds without authorization is a direct violation of fiduciary duties and trust account regulations.

2. Question 2Disclosure Obligations

   A Nevada real estate licensee is representing a seller. The seller has instructed the licensee not to disclose a known material defect concerning a leaky roof, stating it's the buyer's responsibility to discover such issues during inspection. The licensee knows this defect is significant and would likely influence a buyer's decision. According to Nevada law and ethical standards, what should the licensee do?

   • A.Do nothing, as the seller has the ultimate authority on what to disclose.
   • B.Disclose the material defect to the prospective buyer, even against the seller's instructions.(Correct)
   • C.Inform the seller that disclosure is legally required and they cannot withhold this information.
   • D.Advise the seller that they must disclose the defect or the licensee cannot continue to represent them.

   Explanation

   Nevada law requires licensees to disclose known material defects to prospective buyers, regardless of seller instructions. While informing the seller and advising them on legal requirements are also appropriate steps, the primary obligation is to disclose the material defect to the buyer to prevent harm and ensure fair dealing.

3. Question 3Branch Office Management

   A Nevada broker is considering opening a branch office. The branch office must be managed by a licensed broker or broker-salesperson. If managed by a broker-salesperson, what additional requirement must be met for the branch office to be legally compliant?

   • A.The broker-salesperson must have at least 3 years of active experience as a licensed broker-salesperson in Nevada.
   • B.The branch office must be inspected and approved by the Nevada Real Estate Division annually.
   • C.The broker-salesperson must be appointed as the designated broker for that specific branch office.(Correct)
   • D.The broker-salesperson must have completed 12 hours of continuing education specifically on branch office management.

   Explanation

   If a branch office is managed by a broker-salesperson, they must be specifically designated by the employing broker as the designated broker for that branch office. This designation makes them responsible for the supervision of that office. While experience and continuing education are important, the official designation is the key regulatory requirement.

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