Real Estate State Law Practice Exam 4, PRACTICE TEST 1, State Test Prep., Real Estate State Law Practice test 6, National Test, Exam 1, Nevada Real Estate, Real Estate

Legal title

"Bare or Naked Legal Title" held by trustee until the terms of a trust deed and note have been fulfilled.

Condition

A provision in a contract, deed, law, regulation, guideline, etc. that makes the parties' rights and obligations depend on the occurrence (or non-occurrence) of a particular event. Also called a Contingency Clause.

Tenancy in Common

A form of co-ownership in which two or more persons each have an undivided interest in the entire property (unity of possession), but no right of survivorship.

be an owner-occupant

A qualified borrower for an FHA 203(b) loan must do which one of the following? Be an owner-occupant Obtain an appraisal Obtain a second mortgage for all down payment expenses Provide a certificate of eligibility

elayed 1031 tax-deferred exchanges An intermediary facilitates a 1031 tax deferred exchange.

A qualified intermediary handles

Listing

A written employment agreement between a property owner and a broker authorizing the broker to sell, lease or exchange the realty.

Preliminary Notice

A written notice by a contractor that work my be subject to a mechanic's lien. It is given within 20 days of first supplying, labor, and materials, etc.

Negotiable Instrument

A written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery (e.g. promissory note or check). The transferee then has the original payee's right to payment. Holder in due course is the person who takes this.

A NV Broker or Broker Salesperson with at least two years of full time experience in the last four years

Any Nevada branch office must be supervised by:

Emblements

Annual, harvestable crops such as corn, wheat; personal property

Estate of Inheritance

An estate that can be willed or descend to heirs, such as a fee simple estate.

Revocable Trust

Trust that is effective during life of owner and enforceable upon death

Zoning Laws

Local ordinances dividing a city, county, etc. into zones, allowing different types of land use in different areas. (A government restriction via its police power.)

Venue vs jurisdiction

Location vs what type of court

Race. Religion, Color, National Origin, Handipcap, Familial Status, Sex Racist Realtors Can Never Have Financial Success

Make a list of the federal protected classes under Fair housing laws

Correlation or reconciliation

Process of selecting the most appropriate approach for the particular appraisal job and giving it the most consideration in pinpointing the final value

Servient Tenement

Property burdened by an easement. In other words, the owner of the servient tenement (the servient tenant) is required to allow someone who has an easement (the dominant tenant) to use his or her property.

Disadvantage of joint tenancy

Property owned in joint tenancy is subject to the liabilities and creditors of all of the joint tenants

RESPA

Real Estate Settlement Procedures Act. A federal statute requiring disclosure of certain costs and prohibits certain acts in the sale of residential improved property which is to be financed by a federally insures lender.

Free hold estate

Real property

Tenancy in partnership

Refers to two or more people who are co-owners in a business

Special assessment

Tax or levy against only the properties that will benefit from a proposed public improvement like a sewer or paving a street. Added on to purchase price when buying property.

Ad valorem tax

Taxed according to value

Loan fee

The lender's charge to borrower for doing all the paperwork and setting up the mortgage loan.

Estate in Fee Simple

The greatest estate one can have in real property; freely transferable and inheritable, and of indefinite duration, with no conditions on the title. Often called: Fee Simple

Effective gross income

The gross income minus any vacancies or rental losses. (pg.346)

What is lead base paint disclosure form?

The lead-based paint disclosure form is a required form to be issued to all tenants and potential buyers for residential properties built before 1978. The paint specifically was outlawed by the U.S. Consumer Product Safety Commission at that time (16 CFR 1303) due to the hazard it poses when it chips. The forms were written to warn any new owners or tenants of the potential existence of this within the interior walls of the residence. Therefore, if an individual resides in an older home and witnesses chipping or cracking of paint, they should immediately notify the recommended local authorities.

Unlawful detainer

The legal action a landlord brings against the tenant to evict when there is legal cause.

A transfer disclosure statement would not be required in the sale of a: a. mobile home, when sold along with the real property to which it is attached b. three-unit multifamily dwelling c. single-family home listed for sale by owner d. retail space in a commercial district

d. retail space in a commercial district

A buyer sues the seller

for breach of contract

A buyer sues the listing agent

for not disclosing, but can also sue the seller who may in turn sue the broker

Personal Property

movable property (as distinguished from real estate)

A sale, long-term lease or encumbrance of community property is voidable by the other spouse up to

one year

Recording

the act of making something an official record

Probate

the act of proving that an instrument purporting to be a will was signed and executed in accord with legal requirements. Min length is 6 months. Party has 4 months to file claim for it.

Remainder

A future interest that becomes possessory when a life estate terminates, and that's held by someone other than grantor of the life estate; (reversion is a future interest held by the grantor).

Estate in Reversion

A future interest that becomes possessory when a temporary estate (such as a life estate) terminates, and that is held by the grantor (or his or her successors in interest). Also called: Reversion

Lien

A nonpossessory interest in property, giving a lienholder the right to foreclose if the owner does not pay a debt owed the lienholder; a financial encumbrance on the owner's title. a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Encumbrance

A nonpossessory interest in property; a lien, easement, or restrictive covenant, burdening the property owner's title.

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.

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

Fiduciary

A person acting in a position of trust and confidence in a business relationship

Out of the office address as shown on their Nevada license

A person holding a valid active Nevada license can work:

Freehold

A possessory interest in real property of uncertain (and often unlimited) duration; an ownership estate in real property; either a fee simple or life estate. Holder of freehold estate has title.

Fully Amortized Installment Note

A promissory note which calls for periodic payments of principal and interest until debt is paid in full.

Dominant Tenement

A property that includes in its ownership the appurtenant right to use an easement over another person's property for a specific purpose Property that receives the benefit of an appurtenant easement.

pay more than the FHA appraisal, provided payment is in cash The borrower may pay cash for the entire sales price or pay for the difference between the price and value...

A prospective home purchaser can do which of the following? The buyer is personally liable for the full amount of the note. The seller can recover a deficiency judgment against the buyer. The seller is limited to what the real property brings at foreclosure The seller can recover punitive damages against the buyer.

Encumbrance

A right or interest in real property other than that of owner or tenant. Non-possessory interest.

Appurtenance

A right that goes along with ownership of real property; usually transferred with the property, but may be sold separately.

Easement

A right to use some part of another person's real property for a particular purpose. An easement is irrevocable and creates an interest in the property.

June10 Commission is paid at the COE.

A sales contract is signed on May 1. Closing takes place on June10, and the deed of trust is recorded on June 15. The borrower's first payment is due on August 30. When is the soonest that the broker can receive his or her commission check?

Tenancy in common vs partnership

A tenancy in common becomes a tenancy in partnership if all members collectively find tenants, collect rent, pay taxes, etc. vs on just managing their individual units

Commercial acre

A term applied to the remainder of an acre of land after the area devoted to streets, sidewalks, curbs, and so on has been deducted from the acre.

Mechanic's Lien

A specific lien claimed by someone who performed work on the property (construction, repairs, or improvements) and has not been paid. This term is often used in a general sense, referring to materialmen's liens as well as actual mechanics' liens.

Easement by Implication

An easement created by operation of law (not express grant or reservation) when land is divided, if there is a long-standing, apparent use that is reasonably necessary for enjoyment of the dominant tenement. Also called an implied easement.

Notice of Non-Responsibility

The notice recorded and posted by an owner within 10 days of discovering unauthorized work on his or her property; it is a way to avoid liability.

Spot Zoning

An illegal rezone that favors (or restricts) a particular property owner (or a small group of owners) without justification.

Absolute privilege

An immunity from libel suits granted to government officials and others based on remarks uttered or written as part of their official duties

3

An inactive licensee needs 24 hours of CE to renew. How many hours must be in a law course? 1 3 6 9

is required to supply a copy of the Seller's Real Property Disclosure Form All resale is required to use the SRPD

An individual wants to sell her own house with no agent. The individual: Is required to supply a copy of the Seller's Real Property Disclosure Form Is exempt from having to fill out a Seller's Real Property Disclosure Form since she isn't using a real estate agent May have someone else complete the form for her May always sell her house by herself without supplying a Seller's Real Property Disclosure Form

Estate

An interest, share, right or equity in real estate that varies from the minimal right of a renter to the maximum right of a full owner. Possessory interest.

Principle of conformity

Appraisal theory that affirms that the maximum value is realized if the use of land conforms to existing neighborhood standards.

Building Code

Government regulations specifying minimum construction and building standards to safeguard the health, safety, and welfare of the public Standards for construction and safety of buildings

Grant Deed

Grant = Warranty, means title is clear (not conveyed to anyone else), and all encumbrances (if any) are disclosed

Net income

Gross income minus operating expenses

Five The Nevada broker must keep records for five years from the last activity or COE (Close of Escrow)

How many years must a broker keep records after the last activity regarding the property?

Annually

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

3 main base lines

Humboldt, Mt. Diablo, San Bernandino

External obsolescence

Incurable depreciation caused by factors not on the subject ‎property, such as environmental, social, or economic factors.

Trust deed

It involves 3 parties: trustee (3rd party), trustor (borrower), lender. Title is conveyed to the trustee. If default have option of foreclosure or trustee sale.

Servient tenement

Land on which an easement exists in favor of an adjacent property (called a dominant estate): also called a servient estate.

Fixture

Land, improvements, items permanently attached to the land, appurtenances and that which are immovable by law. Use MARIA to determine if fixture

Reversionary interest/right

Landlord has the right to retake possession of property after lease is expired or terminated

Escheat

No will and no heirs, so property reverts to the state

Cancellation of exclusive listing

Owner has ability to terminate agency if the broker does not put in a diligent effort to investigate, market, and negotiate a sale

Riparian rights

Owner's rights in land that borders on or includes a stream, river or lake. Rights include access to and use of the water. Riparian = river

Ownership in Severalty

Ownership by a single individual, as opposed to co-ownership.

Severalty

Ownership of real estate by one person only; although a corporation (single entity) can own in severalty

Private mortgage insurance

PMI; insurance provided by private carrier that protects a lender against loss if a foreclosure and deficiency; usually insures top 10 - 20 percent of the loan

Chattel Real

Personal property that is closely associated with real property, such as a lease.

Title insurance

Policy insuring the owner or mortgagee against loss by reason of defects in the title of a parcel of real estate

Statue of Frauds requires the following to be in writing

Purchase agreement, escrow instructions, anything more than $500, and any contract more than a year

Radioactive gas - becomes dangerous when trapped in building 2nd leading cause for cancer

Radon

Doe Brokerage

Salesperson Sam Smith is associated with the Doe Brokerage, which is owned by Broker Jane Doe. If Smith obtains a listing contract, which information MUST appear in any advertisement of that listing?

Has no further liability if he obtains a novation from the VA The veteran can receive a release of liability if the buyer assumes all liability for the loan. And the lender approves the buyer for the assumption.

A veteran who sells his house and permits the buyer to assume his VA loan:

16 credits for each two years full-time experience

A waiver of the educational requirements for Nevada brokers and Nevada broker sales people can be made for active experience as

Holographic will

A will written entirely by the testator with his own hand.

Alienation clause

Also know as "due on sale" clause permits lender to declare balance of loan immediately due if property is sold; prevents loan assumption without lender approval

$96,000 $120,000 x 80% = $96,000

An 80% LTV on a $120,000 home is

Transfer disclosure statement exemption

This form is exempted for court ordered sales, foreclosures, for any government sales, and from family/partner transfers

Must share office space

To be a Nevada Associate Broker under NRS 645, you:

Meet financial responsibility standards

To be a Nevada Owner-Developer, you must:

Grantor

The person transferring title to or an interest in real property to a grantee

1 percent of the amount to be loaned 1 percent of the amount to be loaned - RIGHT

To compute the dollar value of a loan discount, each point is equal to: 1 percent of the amount to be loaned 1 percent of the down payment 1 percent of the appraised value 1 percent of the sales price

Usual listing contract authorizes a broker

To find a purchaser and accept a deposit with an offer to purchase

Fee simple estates

Type of freehold estate. Language to create: "and his or her heirs." it is the highest interest in real estate recognized by the law; the holder is entitled to all rights to the property.

Life estates

Type of freehold estate. When a life tenant has right to occupy a piece of property for life or earn income from the piece of property for life, after which control of the property passes to the designated owner

Estate at will

Type of less than freehold estate. An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time. 30 day notice required.

Release clause

When a blanket loan has been given, this clause will allow part of the property to be removed as security for the loan when certain requirements have been met, sometimes called a partial release clause.

Reliction

When a body of water gradually recedes, exposing land that was previously under water. Also called dereliction.

Escheat

When property reverts to the state after a person dies without leaving a valid will and without heirs. (Property also reverts to the state after abandonment.)

the claims are paid pro-rata to a maximum of 100,00.

Whenever a Nevada Licensee causes claims against the NVERRF in amounts that exceed the maximum liability of NVERRF

If a house was built prior to ______ , the sellers must disclose information about lead-based paint to prospective buyers. a. 1960 b. 1968 c. 1978 d. 1985

c. 1978

Transaction file

file or folder kept for 3 years by the broker for each real estate transaction in which the broker participated for his/her client

Revocation

cancelling of an offer to contract by original offeror

Nonresident of Nevada A person does not have to have residency in Nevada to receive a Nevada real estate license.

Which of the following may have an active real estate license? Depository financial institution Division employee Person under suspension Nonresident of Nevada

Completion of a NVCE course by a Nevada Licensee

Which of the following need not be disclosed to NVRED wihin ten days after occurrence? A. Change of business location of a Nevada Broker B. Change of business name of a Nevada Broker C. Completion of a NVCE course by a Nevada Licensee D. The termination of a NV Broker-Salsperson or NV Salesperson from the association with a NV Broker

Anyone

Who may petition to change a Nevada regulation?

An unlicensed real estate assistant may: a. provide general information about the broker's services b. answer buyers' questions about financing c. answer buyers' questions about the condition of a listing d. All of the above

a. provide general information about the broker's services

Deficiency judgment

if the foreclosure sale does not produce enough cash to pay the loan balance in full, the mortgagee is entitled to a "personal judgment"

Buyer can make a demand after the purchase agreement is accepted if...

if the transfer disclosure statement or home inspection discloses something that the buyer was unaware of before. The buyer may ask for the defect to be corrected, the price to be reduced, cancel the transaction, or close escrow and recover the valuation lost

Property manager

licensed real estate person. Residential manager does not need license, unless manages other properties

Grantee

n. The person to whom property is transferred by deed.

Preliminary title report

report showing the condition of title before a sale or loan transaction

Loan to Ratio Value

what does LTV stand for ?

to restrict and regulate

why do we have these laws (NRS)

Section

1/36th of a township. Made up of 640 acres.

Time buyer has to review TDS

3 days

Quitclaim deed

Gives grantee all rights or interest that grantor has without any warranty, title, or interest

Avulsion

Sudden, violent tearing away of land

Tax Lien

A lien on real property to secure the payment of taxes.

A project Broker

What do they call a guy that runs a timeshare?

Statement of facts

What is the complaint form called?

Metes and Bounds

method of describing real estate using boundary lines with terminal points and angles

Progressive tax

any tax in which the rate increases as the amount subject to taxation increases

Discount points allow the lender

to offer a lower interest rate

CLTA vs ALTA title policy

basic vs requires on-site inspection and covers against undisclosed liens

4 elements of a contract

1) capacity (not a minor, incompetent, or convict) 2) mutual consent (clear and definite terms not made under duress) 3) legality 4) consideration (anything of value). The contract lives until the time to bring legal action, which is the statute of limitations, and is still valid even if one of the parties becomes incompetent or dies.

Options for seller for breaching buyer

1) enforce purchase agreement 2) retain or resell and recover money if losses

An easement can be terminated by:

1) express release (from dominant) 2) merger of dominant and servient 3) excessive use 4) intentional abandonment and non-use 5) eminent domain

Seller has the following monetary claims from a breaching buyer

1) general damages - if decline in price 2) consequential damages - additional marketing or other expenses 3) interest. There are offset by any rent or price increase the seller may get. The seller may collect these damages from deposit, but must show proof of loss.

Buyer has the following 3 monetary claims from a breaching seller

1) general damages - loss of value (price increase) of buyer's money (deposit, inspections, moving, home value) 2) consequential damages (taxes and rent - say for a 1031 exchange by missing the exchange date) 3) interest

A broker accepting a money deposit is required to do one of 3 things

1) give it to the principal 2) place it in a trust account within 3 days 3) give it to an escrow company

How many sections make a township?

36

Receive fees directly from escrow with the Nevada Broker's approval

A Full-time active Nevada Broker-Salesperson is allowed to do all of the following EXCEPT: a. transact Nevada Real estate for no compensation b. manage a Nevada branch office c. Manage the primary office or a branch office in Las Vegas d. receive fees directly from escrow with the Nevada Broker's approval

Ad Valorem

A Latin phrase meaning 'according to value'; used to refer to taxes assessed on the value of property.

Executory contract

A contract that has not as yet been fully performed.

Graduated lease

A lease where the rent will increase periodically in amounts specified in the lease, as contained in the escalation clause.

Estate for Years

A leasehold estate set to last for a definite period (one week, three years, etc.), after which it terminates automatically. Also called a term tenancy.

Lis Pendens

A recorded notice stating that there is a lawsuit pending that may affect title to the defendant's real estate. A pending notice of a lawsuit giving notice of a possible claim to the property

Going back as active

A reinstatement means

open listing Any exclusive agency agreement must be in writing.

All of the following agreements must be in writing EXCEPT a(n) Exclusive-agency listing. Open listing Exclusive-right-to-sell listing Offer to purchase real estate

an unlicensed employee can

Accept, account for, or provide a receipt for trust funds received from a principal or a party to the transaction

Oral agreements validity

Oral agreements are valid, but must be in writing to be judicially enforceable

Declaratory relief action

Action in which a person finds out their rights from the court before proceeding with an action that might bring about a lawsuit.

Prescriptive Easement

An easement acquired by prescription. Also called: Easement by Prescription

Net adjustment

Actually adjustment of comparables when negative and positive adjustments are accounted for

ARM

Adjustable rate mortgage, which has an index (e.g. 4%), adjustable interval (how often the rate is reset), cap (limit on change in adjustable interval and lifetime change), and margin (spread between index rate - 4% and what buyer payers, for instance, if margin is 3%, then the rate for buyer is 7%)

a broker's license A Nevada real estate license of any level is required.

All of the following are requirements for a property management permit holder EXCEPT 24 hours of pre-permit schooling 3 hours of CE in property management to renew A real estate license A broker's license

Nuisance per se

An act, occupation, or structure that is a nuisance at all times and under any conditions, regardless of location or surroundings

must have a refund policy. The rental agency must disclose under what circumstances the money will be returned.

An advance fee rental agency May advertise property for rent without the owner's permission. Must have a refund policy. May have an open-ended contract term for the services to be rendered. Can alter the fees if the services take more time than originally anticipated.

Death disclosure

An agent does not have to disclosure death unless it is asked about, and does not have to if it happened more than three years ago.

straight line Straight line depreciation will decrease an even amount each year. This method is used in the cost approach.

An investor bought a ten-year-old office building. The allowed method of depreciation with no recapture of depreciation would MOST likely be: 100 percent Straight line 150 percent 175 percent

Cloud on title

Any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title

Discount points

Origination fee of 1% of the amount borrowed charged by the lender. Ranges from 1 point (1%) to 7 points (7%)

No, because the bonus is subject to the commission split between Nevada Brokers, Nevada salespeople and any other participants

Can a Nevada salesperson legally accept a bonus for a super quick sale paid by the happy seller?

Deposit

Can be a check or promissory note

convert income into value Capitalization is the process for estimating value using a rate of return on the investment. NOI = rate x value.

Capitalization is a process used to:

must be in writing to be exclusive. All exclusive agency agreements must be in writing.

Buyer-brokerage contracts in Nevada Must be in writing to be exclusive. Must be on specific forms. Are not regulated under the license laws. Are illegal.

Acceleration clause

Clause in mortgage or deed of trust that can be enforced to make the entire debt payable immediately if borrower defaults. Is always found in a trust deed.

Security devices

Financial instruments that are written documents that pledge real property as security for a promissory note. In CA, there are 3 types: mortgages, trust deeds, and land contracts

Percentage lease

Common lease for retail property; often a base monthly rent plus a percentage of any gross sales over that amount

Sales comparison depreciation method

Compare houses with defect to houses without defect. Good for all types of depreciations.

Acting as a principal in a transaction

Disciplinary action may be awarded for all of the following, except: Acting as a principal in a transaction calling oneself a REALTOR without belonging to a board of REALTORS Guaranteering profits from a resale a decietful or fraudulant action

Has failed to properly supervise them

Disciplinary action may be brought against a Nevada Broker for unknown violations of Nevada licensees associated with the Nevada Broker, because the Nevada Broker;

higher yield to the lender The number of points charged will depend on the interest rate and the yield required by the lender and the length of the loan.

Discount charges charged on a loan result in:

Proration

Dividing property taxes, hazard insurance and other expenses or income between the buyer and seller, as of date of settlement.

Delinquent property tax

First year late begins 5 year redemption period. If after 5 years of not paying taxes, property will be deeded to state

You SHOULD - but it is NOT mandatory

Do you need a fair housing poster posted?

No it does not

Does a brokerage contract have to be in writing?

What is HUD?

Department of Housing and Urban Development isn't a major player in the federal regulation of environmental issues. However, it's mentioned because the agency is relevant when concerned with lead paint disclosure.

July 1st - June 30th

Fiscal year is

Real property life cycle

Development, maturity, decline

2 There may only be one take over.

During a time-share promotional meeting, what is the maximum number of salespeople who may attempt the sale?

Elements of value

DUST = Demand (desire), utility (usefullness), scarcity, transferability

In income-producing property valued by the capitalization approach, if the property taxes increase and all else remains equal, the property value will

Decrease more than the annual tax increase;

Independent contractor vs employee

Employees are supervised and get paid for time vs results. Employees must have written contracts. Chief advantage of IC is simplification of bookeeping (e.g. no tax withholding). Broker must provide worker's comp for all employees, but not unemployment insurance for IC is they are not paid hourly.

Trade Fixtures

Equipment a tenant installs for use in his or her trade or business, and can be removed by tenant before the lease expires.

Observed condition depreciation method

Estimate each depreciation separately

Your Nevada License goes to inactive not renewed status.

Failure to renew your Nevada License under NRS/NAC 645 requires that:

Tax advise

For a 1-4 unit residential property, an agent is not required to disclose their knowledge of possible tax consequences unless asked. If asked, they must disclosure their knowledge and advise on a professional

inform the buyer of his or her personal opinion of the condition of the seller's title to the property. The condition of title would be included in the abstract accompanied by an attorney's opinion.

In any real estate sales transaction that a broker negotiates, the broker is required to do all the following EXCEPT Inform the buyer of his or her personal opinion of the condition of the seller's title to the property. Make sure that the written purchase and sales agreement includes all the terms of the parties' agreement. Make sure that each party is presented with a copy of the agreement. Keep copies of all documents involved in the transaction in his or her files for five years after the date the transaction was closed.

vacant land held for investment Depreciation is only applied to improvements. Not land.

Layne is preparing her federal income tax return. She can claim depreciation on all of the following EXCEPT: A vacant duplex A home rented to a friend Vacant land held for investment A rented single-family dwelling

Conditions precedent vs conditions concurrent

May or may not occur vs must occur

MARIA

Method of attachment, Adaptability, Relationship of the parties, intention, agreement

Eviction process

Min 13 days total: 3 days for 3-day notice, 5 day for unlawful detainer, 5 days for writ of possession

What is the job of a broker

Must teach, train, and supervise the fundamentals and the ethics of real estate

Four working days Upon receipt the buyer has four working days to terminate a contract.

Once a Seller's Real Property Disclosure Form has been delivered to the buyer, how much time does the buyer have to rescind based on the report? Four working days Five calendar days Ten days Until the items are all repaired

Conservatee

One whose interests have been assigned to a conservator, one designated to "conserve" or protect the assets of the conservatee

Appropriation of Water

Private use of public water

Cost Approach Appraisal Method

Process in which home is appraised based on the value of the land plus the cost to construct the home. Good method when no comparables (e..g service type buildings)

Nominal interest rate

Rate stated in the note

Personal property as a lien requirements

Security agreement and financing statement

within three months, regardless of the amount

The accounting of an advance fee must be made by the Nevada Broker to the principal

Economic rent

The amount of rent a property might be expected to bring at current market value

gross scheduled income

The anticipated income if a property is 100% occupied

Yes, and Gabbs may require schooling and a separate test for certification A city or county may require additional fees and a separate test for certification.

The city of Gabbs, Nevada, requires a city real estate license before any compensated real estate activity is allowed in that city. Is this legal? Yes, but only for revenue purposes such as a business license Yes, and Gabbs may require schooling and a separate test for certification No, because the state of Nevada has jurisdiction superseding Gabbs No, because the additional regulation by a city would be redundant

Timeshare residences

The definition of "single-family residence" include all the following except Timeshare residences Cooperative apartments Condominiums Mobile homes

proof of sufficient assets or income to maintain an office for 180 days proof of sufficient assets or income to maintain an office for 180 days

The financial suitability requirement for a broker's license requires The submission of an audited financial statement prepared by the broker's CPA. The broker's last two income tax returns. The broker's profit and loss statements for the last three years Proof of sufficient assets or income to maintain an office for 180 days

July 1 to June 30

The fiscal year

broker disclose information that materially affects the property even when the buyer does not ask for it Any material fact the broker is aware of concerning a property must be disclosed to the buyer.

The licensing law of Nevada requires that the Broker keep all information confidential that the seller has provided about the property Broker disclose everything that the seller tells him or her. Broker disclose information that materially affects the property even when the buyer does not ask for it Seller disclose all facts that might affect the sale.

adopt regulations by which all real estate licensees must abide. The real estate commission adopts regulations of NAC and NRS.

The real estate commission has the authority to Adopt regulations by which all real estate licensees must abide. Compose the examination questions on the state exam. Administer the exams given at the testing sites. Enact the laws that govern real estate licensees.

Exclusive right to sell

The type of listing whereby the listing broker is paid a commission even if the owner finds a buyer and sells the property. Most common type of listing.

Rescission

The unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

Principle of contribution

The value of any component of property is determined by how much value the improvement contributes to the value of the whole property.

Littoral Rights

The water rights of a landowner whose property is adjacent to a lake or contains a lake; often called riparian rights (although that term really refers only to the water rights of a landowner on a river).

Riparian Rights

The water rights of landowner whose property is adjacent to or crossed by a river (or any body of water).

the borrower can never waive the funding fee Under certain circumstances

To qualify for a VA loan on a dwelling, all of the following requirements are true EXCEPT: The applicant must sign a declaration that he or she intends to occupy the dwelling There must be an appraisal from an appraiser approved by the VA The applicant must have a certificate of eligibility The borrower can never waive the funding fee

no minimum Any capital gain that is not reinvested is taxable.

To qualify for a tax deferral on capital gain, an owner must reinvest how much of the proceeds from the sale of his residence into the replacement residence?

Exclusive-listing contracts must discuss the seller's net return. The net return would be part of the seller's net sheet, showing the net proceeds after all expenses and fees at the COE.

Under Nevada law, which of the following statements is FALSE regarding an exclusive-listing contract? Exclusive-listing contracts must be in writing. Exclusive-listing contracts must include a specific termination date. Automatic extension clauses are not allowed in exclusive-listing contracts. Exclusive-listing contracts must discuss the seller's net return.

The right to waive offers

What is the one duty that a client can waive a licensee ?

Seller who pays a commission to a broker under false pretenses The client may receive money from the fund if the licensee is guilty of fraud or misrepresentation.

Who may receive compensation from the real estate education, research, and recovery fund? Broker who does not receive an earned commission Seller who pays a commission to a broker under false pretenses Buyer who pays a fee to a broker under a buyer agency agreement Cooperating broker who does not receive a commission split

EPA

Who overseas CERCLA?

76. Regarding an office location, an active broker in Reno, Nevada, A) must have an office in Nevada B) may not have an office in his or her home C) may not be further regulated or licensed by the city of Reno where the office is located D) must not have his or her office in conjunction with another business he or she operates

a

88. Who is responsible for investigating transaction files and trust records of brokers and owner developers? A) administrator and the Nevada Real Estate Division B) Secretary of State C) Attorney General D) Nevada real Estate Commission

a

Amortization schedule

a chart displaying the monthly interest costs of a loan at a given rate of interest

Escalation clause

a clause allowing the lender to raise the existing interest rate- although most often associated with an adjustable rate mortgage, it can be used to overcome an alienation clause

The seller of a commercial building is a corporation. Who may sign the purchase agreement to accept the buyer's offer? a. An officer of the corporation who has been authorized to sell the property by a resolution of the board of directors b. Any officer of the corporation c. Any member of the corporation's board of directors d. The corporation's chief executive officer

a. An officer of the corporation who has been authorized to sell the property by a resolution of the board of directors

If a home inspection is desired, which party is responsible for ordering the inspection, and usually also pays for it? a. Buyer b. Seller c. Broker d. Lender

a. Buyer

What federal law assigns liability for the cleanup of sites contaminated with hazardous waste and also created a fund to facilitate cleanup? a. CERCLA b. NEPA c. Clean Water Act d. FIRPTA

a. CERCLA

To determine an appropriate listing price for a property, a real estate agent will perform a/an ______ , which is related to but less rigorous than a/an ______ . a. CMA / appraisal b. appraisal / CMA c. CMA / reconciliation d. valuation / CMA

a. CMA / appraisal

Carl agrees to purchase Anna's property, subject to a financing contingency. The contract gives Carl 20 days to fulfill or remove the contingency. However, after 20 days he has provided no notice of having fulfilled it or removed it. At this point, what can Anna do? a. Give Carl a notice to perform, informing him that she will terminate the agreement if he does not remove the contingency b. Terminate the agreement immediately c. Terminate the agreement immediately and retain the good faith deposit d. Sue Carl for breach of contract

a. Give Carl a notice to perform, informing him that she will terminate the agreement if he does not remove the contingency

For buyers, which of the following is NOT an advantage of having a pre-approval letter? a. It allows them to look for a home without having to complete a loan application first b. It helps streamline the closing process c. It provides assurance to the seller that a financing contingency won't be a problem d. It signifies that the buyers are able to buy at any amount up to the figure stated in the approval letter

a. It allows them to look for a home without having to complete a loan application first

Miguel is a new salesperson for Imperial Realty. Dissatisfied with the lack of mentoring at Imperial, he decides to work for Millennium Real Estate instead and has his license transferred. At the time of the switch, he has two listings. What happens to his listings? a. Miguel cannot keep the listings; they belong to Imperial Realty b. Miguel can take the listings to his new position, since he was the listing agent c. The commission will be divided on a prorated basis between Imperial and Millennium d. The listings will stay with Imperial Realty, but when the properties sell, Imperial will still compensate Miguel directly

a. Miguel cannot keep the listings; they belong to Imperial Realty

Which of the following appraisal methods is a competitive market analysis based on? a. Sales comparison approach b. Cost approach c. Income approach d. Land residual approach

a. Sales comparison approach

Which of the following is a true statement regarding buyer agency? a. The agent does not represent the seller or the listing agent, and will therefore not be liable for their misconduct b. The buyer's agent owes the duties of loyalty and confidentiality to both parties c. A buyer's agency agreement is created as part of the listing agreement d. A buyer's agent cannot be compensated if the buyer purchases a property that is not listed by a broker

a. The agent does not represent the seller or the listing agent, and will therefore not be liable for their misconduct

A seller accepts a contingent backup offer from a second buyer and notifies the first buyer under a release clause. The first buyer decides to remove the sale of buyer's property contingency. What happens next? a. The seller and the first buyer will complete the transaction, assuming the buyer can come up with the down-payment b. The good faith deposit will be refunded to the first buyer c. The second buyer will be obligated to complete the transaction with the seller d. The second buyer will be entitled to purchase the property only if she has made a good faith deposit

a. The seller and the first buyer will complete the transaction, assuming the buyer can come up with the down-payment

A listing agent: a. always represents the seller b. may represent the buyer instead of the seller, as long as both parties give their consent in writing c. cannot be the selling agent in the same transaction d. cannot be a dual agent

a. always represents the seller

In the real estate industry, price fixing issues come up primarily in connection with: a. commission rates b. listing prices of homes c. sales prices of homes d. mortgage interest rates

a. commission rates

Agent Peter is working with a buyer who is interested in a "For Sale by Owner" property she saw on her way to work. Peter would like to approach the owner to see if he'll list his property with Peter. In this situation, Peter might have the most success with a/an: a. one-party listing b. for sale by owner listing c. 24-hour listing d. temporary listing

a. one-party listing

A seller's counteroffer: a. terminates the original offer b. is illegal in a real estate transaction c. binds the buyer if made before the deadline for acceptance of the original offer d. cannot be revoked by the counteroffer or (the seller)

a. terminates the original offer

Agency can be terminated if

agreement expires, propert is destroyed, death or incapacity of broker or seller, mutual agreement, close of escrow. Note: (broker's death causese all listings to be cancelled and any agents underneath would have to re-list)

Contract rent

amount of rent stated in lease contract

Secret profit

an agent's making of additional money in a real estate transaction without disclosing it to the principal and the 3rd party, which is a breach of the fiduciary relationship to the principal

Easement appurtenant

an easement "created for and beneficial to" the owner of adjoining or attached lands (goes with the land)

Indemnity

an obligation imposed on one individual (e.g. broker) and owed to another (e.g. seller) to pay a loss incurred by a third person (e.g. buyer)

A tender is

an offer to perform under a contract

The real estate commissioner does not settle commission disputes. These are settled in

arbitration or civil lawsuits in local courts

9. All of the following must appear in a written listing agreement except A) a statement that the property must be shown to all prospective buyers regardless of race, color, religion, national origin, sex, handicap, or familiar status B) the complete legal description of the property being sold C) the time duration of the listing D) the proposed gross sales price of the property

b

91. A person is applying for a license as a broker. He or she must do all of the following except A) provide his or her business location and any fictitious names that are going to be used B) provide a three year work history C) supply a statement of his or her previous real estate experience D) disclose any past felony convictions or real estate license suspension or revocation

b

92. A broker responsible for the operation of his or her office must disclose all of the following to the Nevada Real Estate Division within 10 days except A) a change in the name of the brokerage B) completion of CE courses by a salesperson C) a change in the business location of the brokerage D) the termination of a broker-salesperson or salesperson from the office

b

95. A salesperson is showing his listing to a very interested buyer. The asking price is $148,000. the salesperson suggests that the buyer make an offer of $138,000. to get some action on the listing. Has the salesperson violated NRS 645? A) no, because he is representing the buyer whenever he writes the offer B) yes, because he offered property at a price not authorized by the owner C) yes, because the offer is not a bonafide price D) no, because the salesperson is attempting to get an offer for the seller to consider or counter

b

Which of the following is the most common method of compensating a buyer's agent? a. Hourly rate b. Commission split with listing agent c. Flat fee paid by buyer d. Percentage of sales price, paid by buyer

b. Commission split with listing agent

The property's sales price is $210,000 and the appraised value is $200,000. The lender won't make a loan with a loan-to-value ratio over 90%. As a result, the maximum loan amount for this transaction is: a. $177,000 b. $180,000 c. $189,000 d. $200,000

b. $180,000

Which of the following federal laws gives borrowers the right to see their credit reports and challenge erroneous information? a. Equal Credit Opportunity Act b. Fair Credit Reporting Act c. Truth in Lending Act d. Employee Retirement Income Security Act

b. Fair Credit Reporting Act

Which of the following is not considered a desirable characteristic in a neighborhood? a. High level of owner-occupancy b. High level of vacancies c. Reasonable level of conformity d. Gently rolling topography

b. High level of vacancies

Which of the following would not be an adequate property description in a contract concerning real estate? a. Lot and block description b. Street address c. Attached photocopy of description from deed d. Government survey description

b. Street address

Income from which of these sources is the least likely to count as stable monthly income? a. Social Security benefits b. Unemployment benefits c. Court-ordered alimony payments d. Public assistance payments

b. Unemployment benefits

Two brokers in a small community felt that another local broker was unethical and dishonest. They agreed not to send him any referral business, and they encouraged other area brokers to follow their lead. They could be accused of: a. price fixing b. a group boycott c. extortion d. a list-back arrangement

b. a group boycott

If a buyer or a seller sues to enforce a purchase agreement, the prevailing party will probably be entitled to: a. a statutory award of $5,000 b. attorney's fees c. liquidated damages d. punitive damages

b. attorney's fees

A transaction is financed on terms that are standard in the community and that did not affect the price paid for the property. Appraisers refer to this as: a. an arm's length transaction b. cash equivalent financing c. market value d. a purchase money loan

b. cash equivalent financing

A substantial good faith deposit: a. guarantees the buyer's performance b. demonstrates the buyer's intention to complete the purchase if the offer is accepted c. provides full compensation to the agent if the buyer defaults d. All of the above

b. demonstrates the buyer's intention to complete the purchase if the offer is accepted

The difference between the value of a property and the total amount of the liens against it is called: a. cash flow b. equity c. appreciation d. cash on cash

b. equity

In the sale of an owner-occupied home for $400,000, the broker accepted a $25,000 deposit from the buyer on the seller's behalf. The buyer breached the contract, and the seller claimed that the buyer had forfeited the deposit. If the liquidated damages provision in the purchase agreement was initialed, the seller: a. may not retain any of the deposit b. may retain no more than $12,000 as liquidated damages c. may deduct any actual damages caused by the breach from the deposit d. may retain the entire deposit

b. may retain no more than $12,000 as liquidated damages

The buyer receives the transfer disclosure statement in the mail. How many days does she have in which to rescind the purchase agreement? a. 5 days from when the buyer received the disclosure b. 5 days from the date escrow was opened c. 5 days from when the statement was deposited in the mail d. 7 days from the date when the seller signed the disclosure statement

c. 5 days from when the statement was deposited in the mail

A landlord has two apartments available for rent. Because he feels that married couples and women tend to be better tenants, he decides to charge a higher security deposit for single men. Additionally, he places a newspaper ad stating "Women and married couples preferred." Which of the following is true? a. The higher security deposit violates the Fair Housing Act b. The newspaper ad violates the Fair Housing Act c. Both the higher security deposit and the newspaper ad violate the Fair Housing Act d. Neither the security deposit nor the ad violates the Fair Housing Act

c. Both the higher security deposit and the newspaper ad violate the Fair Housing Act

What feature would an ARM include in order to limit how much the borrower's principal balance may increase because the monthly interest accruing is more than the monthly payment amount? a. Interest rate cap b. Mortgage payment cap c. Negative amortization cap d. Conversion option

c. Negative amortization cap

Illusory contract

if one or both of the parties has the option of not performing the contractual duties (e.g. contigency of getting a job).

At an open house, a listing agent gives some prospective buyers suggestions regarding how much to offer, without explaining that she is representing the sellers. The agent has: a. acted properly as a seller's agent b. acted properly as an undisclosed dual agent c. breached fiduciary duties to both parties d. no duties, because she isn't performing real estate services for the buyers

c. breached fiduciary duties to both parties

A seller offers to pay six discount points on behalf of the buyer. This will reduce the buyer's interest rate from 9% to 8%. This is known as a: a. lease/option b. seller second c. buydown d. two-step mortgage

c. buydown

A property manager is likely to be concerned with all of the following, except: a. trends in family size and lifestyles b. local unemployment rates c. going commission rates on real estate sales d. market rental rates

c. going commission rates on real estate sales

A lender calculating a loan applicant's stable monthly income would be most likely to count: a. income from a teenaged son living with the applicant b. income from a temporary retail position c. income from self-employment consisting of a continuous series of short-term consulting positions for the last three years d. income from a contracting job that will terminate when the project is complete

c. income from self-employment consisting of a continuous series of short-term consulting positions for the last three years

Disclosure of and consent to a dual agency: a. are not required in a transaction where both agents work for the same broker b. are required only if the broker will receive compensation from both parties c. must be in writing d. allow (and in some cases require) the agent to disclose one party's confidential information to the other party

c. must be in writing

All of the following are characteristic of an FHA-insured loan, except: a. mortgage insurance premiums b. owner-occupancy requirement c. no down-payment d. more lenient underwriting standards

c. no down-payment

You represent the seller in a transaction. You receive a lowball offer from a buyer that you represented several years ago when he was selling a property. You know that he is very wealthy and could easily afford your seller's full listing price. You may: a. tell the seller, since it's in her best interest b. not tell the seller, unless you receive both parties' consent to dual agency c. not tell the seller, since you continue to owe your former client (the buyer) the duty of confidentiality d. tell the seller if the statute of limitations has run out on your agency agreement with the buyer

c. not tell the seller, since you continue to owe your former client (the buyer) the duty of confidentiality

To submit a counteroffer that makes several changes, the listing agent should: a. cross out unacceptable terms and write in the proposed terms on the purchase agreement form b. start over with a new purchase agreement form c. use a separate counteroffer form d. use a cancellation of contract form

c. use a separate counteroffer form

199. Salesman Mark is associated with broker Smith. Mark sells a home listed with broker Kay. Mark will receive part of the commission from which of the following? A) the seller B) broker Kay C) the buyer D) broker Smith

d

A listing agreement would be enforceable if it were signed by any of the following, except: a. an attorney in fact authorized to sell the property in a valid power of attorney b. an officer of a corporation who has been authorized to list the property by the board of directors c. any partner in a general partnership, based on implied authority d. a real estate broker on behalf of an out-of-state seller

d. a real estate broker on behalf of an out-of-state seller

A purchase agreement should contain all of the following, except: a. closing date b. description of property c. identification of parties d. commission rate for listing broker

d. commission rate for listing broker

In choosing a closing date, you should take all of the following into account, except: a. inspections of the property and repairs that may be necessary b. time for the buyer to apply for a loan and have the application processed, or to finalize pre-approved financing c. any other contract obligations that the parties will need to fulfill d. how long the buyer needs to save for a down-payment

d. how long the buyer needs to save for a down-payment

A listing agent receives three offers on a house almost simultaneously. The first two offers are for $4,000 and $5,000 less than the listing price, while the third offer is for $20,000 less than the listing price. The agent should: a. submit the offers to the seller within 24 hours b. submit the offers to the seller one at a time, in order from best to worst c. discard the third offer, since it obviously will be unacceptable to the seller d. submit all three offers to the seller as soon as possible

d. submit all three offers to the seller as soon as possible

The buyer would be entitled to the return of her good faith deposit in all of the following situations, except: a. the sale is contingent on financing, but no lender will provide the loan the buyer needs b. the buyer is unable to sell her previous home in time to satisfy the contingency c. the home inspector finds that the house is infested with termites, and the buyer is unwilling to waive the inspection contingency d. the buyer is transferred by her employer to a new position in a different city and must withdraw from the transaction

d. the buyer is transferred by her employer to a new position in a different city and must withdraw from the transaction

All of the following would show up on a loan applicant's credit report as derogatory credit information, except: a. collections b. debt consolidations c. bankruptcies d. unemployment

d. unemployment

Closing date

date that the documents are recorded

Capitalization rate

includes both a return on the investment (profit) and a return of the investment (for recapture of the investment in the buildings)

A lease may be terminated due to:

1) Expiration 2) lack of quiet possession 3) repairs for habitability 4) eviction/breach 5) abandonment 6) destruction of property

1) Cancellation with 2) release agreement vs rescission and restoration agreement

1) Terminates and excuses all further performances 2) extinguishes all known claims vs return all parties to respective positions before agreement

Options for buyer for breaching seller

1) abandon transaction 2) enforce purchase agreement 3) recover money through monetary claims

Judgment

1. A court's binding determination of the rights and duties of the parties in a lawsuit. 2. A court order requiring one party to pay the other damages.

Varies

A Nevada real estate license is valid for

the buyer There is no subagency.

A broker has entered into a listing agreement with a seller. Another broker, who has been working with the buyer, learns of the property through the MLS. Typically the second, cooperating broker would represent The seller as a subagent The buyer The listing broker as a subagent Neither the buyer nor the seller

The broker is in violation of regulations for improperly handling trust funds. Separate accounting must be kept for each agreement.

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? The broker has acted properly by safeguarding the client's interest. Such action is proper when the same person owns all properties. The broker is in violation of regulations for improperly handling trust funds. The broker must use personal funds for repairs if there is not enough money in the management account.

Cooperating broker

A broker, who works in conjunction with another broker in procuring a buyer for the seller's property.

Safety clause

A clause in the listing agreement providing that a specific period after the listing expires the broker will still be entitled to a commission if the property is sold to someone the broker dealt with. Also called protection clause or extender clause. In order to get it, the broker must have provided info about the property to prospective buyers, documented dealings with these buyers in an Activity Report, and gave a list of these buyers to the seller.

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.

A corporation doing business as a real estate broker has designated K, a corporate officer, to be the broker. K Must pass a corporate broker's exam. Must act as a broker for that corporation only. May act on his or her own behalf if separately licensed and with the approval of the corporation Must turn in all of the licenses of the agents in the corporation if K leaves this position and a new corporate broker is appointed

Judgment

A court decision determining the rights of the parties involved and the amount of compensation

Writ of possession

A court order directing the sheriff to remove the tenant and his possessions within five days.

Writ of execution

A court's order, after a judgment has been entered against the debtor, directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment, accrued interest, and costs of the sale; any surplus is paid to the debtor.

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

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

Defeasible Fee

A fee estate in real property that may be defeated or undone if certain events occur or conditions aren't met. Also: Fee Simple Defeasible

Fee simple defeasible estate

A fee simple estate which has conditions attached, the violation of which could cause the grantee to lose title. If written in the deed with the words "so long as," it automatically reverts back to the grantor or his heirs if the conditions are violated. It may also be referred to as "Fee Simple Qualified."

Abstract of Judgment

A formal filing of the judgement, in which it becomes a lien

Notice of default

A formal written notice to a borrower that a default has occurred and that legal action may be taken.

Life Estate

A freehold estate that lasts only as long as a specified person lives. That person is referred to as the measuring life.

Estate for Life

A freehold estate that lasts only as long as a specified person lives. That person is referred to as the measuring life. Also called: Life Estate

Condition

A future and uncertain event which must happen to create an obligation to extinguish an existing obligation. If broken, property reverts to grantor.

Estate in Remainder

A future interest that becomes possessory when a life estate terminates, and that's held by someone other than grantor of the life estate; (reversion is a future interest held by the grantor). Also called: Remainder

Reversion

A future interest that becomes possessory when a temporary estate (such as a life estate) terminates, and that is held by the grantor (or his or her successors in interest).

Accretion

A gradual addition to dry land by the forces of nature, as when the tide deposits water-borne sediment on shoreline property.

Negative amortization

A gradual increase in the mortgage debt that occurs when the monthly payment is not large enough to cover the entire amount of principal and interest due. The amount of the shortfall is added to the unpaid principal balance, which results in "negative" amortization.

Erosion

A gradual loss of soil due to the action of water or wind.

$355,680 $468,000 x 76% = $355,680

A home sold for $468,000. The seller still owed 24% of the selling price. What was the equity:

3 years.

A housing discrimination charge must be filed with the Nevada Real Estate Division within

the seller acts as a lender These are both seller financing.

A land contract (or contract for deed) and a seller-carryback purchase-money mortgage are similar in that: The seller assumes no financial risk The title is conveyed immediately to the buyer The seller acts as a lender A mortgage is required

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

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 Has not yet properly disclosed his or her agency relationship. Has properly disclosed his or her agency relationship with the seller. Is in violation of Nevada law, because the listing belongs to the broker Has created a dual agency, which is a violation of Nevada law.

disclose in writing that she will be an agent of the seller

A licensee meets a couple who are interested in a house that the licensee has listed. The licensee MUST

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

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

General Lien

A lien against all property of a debtor, instead of a particular piece of property.

Specific Lien

A lien that attaches only to a particular piece of property (as opposed to a general lien, which attaches to all of the debtor's property).

General lien

A lien that attaches to all property owned by an individual. Real and personal.

Pur Autre Vie

A life estate 'for the life of another,' where the measuring life is someone other than the life tenant. Also called: Life Estate Pur Autre Vie

Reverse mortgage

A mortgage, generally used by elderly homeowners, in which money is borrowed in the form of monthly payments and secured by the equity in the home

Variance

A permit obtained from the local zoning authority allowing the holder to use property or build a structure in a way that violates the zoning ordinance.

provide a three-year work history. The applicant must have two of the previous four years full time experience as a licensed agent.

A person is applying for a license as a broker. He or she must do all of the following EXCEPT Provide his or her business location and any fictitious names that are going to be used. Provide a three-year work history. Supply a statement of his or her previous real estate experience. Disclose any past felony convictions or real estate license suspension or revocation.

engaging in the real estate business. A person would need a license if representing the interest of another in a real estate transaction.

A person must be licensed as a real estate broker or salesperson if that person is

November 1, 2001 Test results are valid for one year.

A person successfully completed her real estate examination requirement on November 1, 2000. What is the latest date on which she may apply for a salesperson's license? December 31, 2000 May 3l, 200l November 1, 2001 November 1, 2002

Department of Housing and Urban Development (HUD). HUD will seek a remedy through an administrative law judge. The division will investigate complaints.

A person who believes that he or she has been illegally discriminated against may file a complaint with the

Encroachment

A physical object intruding onto neighboring property, often due to a mistake regarding the boundary.

Cancellation of open listing

A principal may cancel an open listing at any time if their is no expiration date, but there maybe provisions which require the owner to pay a set fee for disclosures, MLS, reports, and certificates

Partially Amortized Installment Note

A promissory note which calls for periodic payments of principal and interest and a large payment at the end

Annual Depreciation formula

Annual Depreciation (A) = Cost of Improvements (V) / Economic Life (E)

the cracked foundation, but disclosing the suicide could constitute a breach of duty to the client. The only death that must be disclosed is if the property caused the death.

A real estate broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker must disclose Both facts. The suicide, but not the foundation The cracked foundation, but disclosing the suicide could constitute a breach of duty to the client. Neither fact

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.

A real estate licensee must give the Duties Owed by a Nevada Licensee Form to prospective purchasers/tenants Before they are shown any properties At an open house At the closing table No later than the time of entering an agreement to purchase or lease

Yes, if the salesperson discloses the referral fee to the buyers and the referral fee is paid through the brokerage All fees must be disclosed and paid through the broker.

A real estate salesperson has been working with buyers. After helping them negotiate for their dream home, the buyers ask the salesperson if she can help them with a home warranty program. The salesperson knows a warranty company that pays a fee for referring purchasers to them. Should the salesperson refer the buyers to this company? No, because this would be an unwise referral Yes, if the salesperson and the buyers have previously entered into a written buyer agency agreement Yes, if the salesperson discloses the referral fee to the buyers and the referral fee is paid through the brokerage Yes, if the company offers the best coverage available in the market

May have the Nevada license suspended because of the Arizona problem

A recently suspended Arizona licensee: May have their Nevada license automatically suspended May not e disciplined in Nevada unless the activity had to do with Nevada real estate May have the Nevada license suspended because of the Arizona problem Ned not to disclose the Arizona suspension to the NVRED when applying for a licnse

Toxic Waste Report

A report evaluating how harmful the dangerous material is on a property

Deed Restriction

A restriction on real property use, imposed by a former owner (seller); promise to do or not do an act relating to real property; usually owner's promise to not use property in a particular way. May or may not run with land. Also called: Restrictive Covenant limitations imposed on the use of land and structures by clauses in a deed.

Name of the brokerage that holds the salesperson's license The brokerage name must be included in all advertising with prominence.

A salesperson has developed a Web site on the Internet. What, if anything, must the salesperson include? Name of the brokerage that holds the salesperson's license Name of the home office of the company that holds the salesperson's license and a list of states in which the company is licensed Names of all the licensees in the broker's office and the states in which they are licensed There is no need for additional disclosures.

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.

A salesperson has left a real estate brokerage, and his license has been returned to the division. What maximum time is allowed for re-affiliation before the license is placed on inactive status? No time is allowed at all. 10 days 15 days 30 days

Owner-developer A salesperson may associate with a broker or an owner developer.

A salesperson who applies for a license may associate with which of the following? Broker-salesperson Registered representative Owner-developer Qualified intermediary

The broker accepted a net listing and may be exposed to liability of failure to disclose the true market value of the home to the client. The broker must disclose the true market value of the property in all cases.

A seller told a broker that she wanted to clear $50,000 when she sold her house. The broker accepted the listing and sold it for $160,000. He gave $50,000 to the seller and kept the rest. Which of the following is correct? The broker need not disclose to the seller the value of her house. The broker's commission exceeds statutory and NAR guidelines. The broker accepted a net listing and may be exposed to liability of failure to disclose the true market value of the home to the client. As the seller's agent, the broker had a duty to sell the house for what he wanted as his commission.

cannot disclose to the buyer offers received on the seller's property while it was listed with him without the seller's consent Jim must keep this information confidential for one year.

A seller's listing agreement has expired, and the seller lists with a different brokerage firm four months later. Jim, the original listing agent, now has a buyer interested in the seller's property. Based on this information, Jim Is a dual agent Cannot disclose to the buyer offers received on the seller's property while it was listed with him without the seller's consent Cannot disclose to the buyer information about the physical condition of the property. Cannot represent the buyer

new home New homes are exempt from the SRPD. (Sellers Real Property Disclosure Form)

A seller's real property disclosure is required for all of the following properties EXCEPT a FSBO. New home Resale Home that has been inspected by a certified home inspector

Conflict of interest

A situation in which a person in a position of responsibility or trust has competing professional or personal interests that make it difficult to fulfill his or her duties impartially.

Easement by Necessity

A special kind of easement by implication that occurs when the dominant tenement would be completely useless without an easement, even if it is not a long-standing, apparent use.

14 hours of prelicensing instruction and 6 hours of continuing education to renew A sales agent must pass a state exam also

A time-share sales agent must complete how much education

a majority of the NVREC's at the meeting

A valid act by the Nevada Real Estate Commission required how many Nevada Commissioners' votes?

What is ABA

Affiliated Business Arrangement ABAs are a way for real estate brokers and/or agents to legally receive a share of the profits from mortgage financing and/or title insurance when you purchase real estate. Under federal RESPA guidelines (Real Estate Settlement and Procedures ACT), the real estate broker and/or agents that are participating in the ABA must have you sign a disclosure where they notify you that they have a financial interest in the affiliated company AND request your authorization to order title insurance on your behalf. In PA, the consumer has no obligation to either sign the disclosure or use the title insurance or mortgage company being referred by the real estate professional. If someone is pressuring you to use a particular affiliated company, it should probably raise a red flag.

No, because the seller did not agree to this action The agent must have the client's approval

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? Yes, because Nevada law permits the creation of sub agency relationships only through multiple-listing services Yes, because a sub agency relationship may be created by a blanket offer in an MLS No, because sub agency is illegal under NRS 645 of Nevada law No, because the seller did not agree to this action

10 days or additional time if warranted

After being notified by the NVRED of a deficiency and signage, in Nevada broker has how many days to correct the sign?

supply and demand Supply and demand is an economic factor not a functional matter.

All of the following would be considered functional obsolescence in evaluating a commercial building EXCEPT: Architectural design Volume or capacity in relation to site Parking plan Supply and demand

That is visible from the nearest public sidewalk, street, or highway or on building directory

An Active full-time Nevada Broker must have a sign:

Seller to pay all costs for the buyer, including down payment FHA will limit lender fees and specify how closing costs and down payment may be paid and by whom.

An FHA lender will allow all of the following EXCEPT : Seller to pay all costs for the buyer, including down payment Buyer can get a second mortgage as part of the purchase price in which the total borrowed will exceed the FHA appraisal Buyer to prepay the loan without prepayment penalty Buyer to refinance at any time

Yes, he may have both offices, but he must maintain Nevada records in Nevada, not Idaho All records for Nevada real estate sales must remain in Nevada.

An Idaho broker is moving to Nevada and would like to maintain offices in both states. Is this possible? Not unless he puts his Idaho license on inactivated status No, because he may not hold a license in both states Yes, but he must become a Nevada resident Yes, he may have both offices, but he must maintain Nevada records in Nevada, not Idaho

Covenant

An agreement to do or not do something

Be helped by A NVRED employee

An applicant for a Nevada real estate license, when filling out the Nevada application, may be or do all the following except: Maybe over 18 Have a real estate license in four other states Be helped by NVRED employee Be a retired employee of the NVRED

not have had a real estate license revoked within the last year before applying. An applicant for a license must be 18 years old, pass the state exam and have 90 hours of real estate principles and law.

An applicant for a real estate license in Nevada must Have completed at least two years of college. Be at at least 21 Not have had a real estate license revoked within the last year before applying. Show proof of passing the license examination any time up to six months prior to the application.

She is required to supply a certificate of resale to the buyer whether or not a broker is used Any property in a common interest community must supply the resale certificate.

An individual wants to sell her own house, which is in a common-interest community association. Which of the following statements is true? She is required to supply a certificate of resale to the buyer whether or not a broker is used In Nevada, anyone who sells his or her own real estate does not need to supply a certificate of resale The individual may obtain a temporary variance from the law She may sell her house without any further liability to the buyer regarding a resale certificate

She does not need a real estate license to sell her house herself. She does not need a real estate license to sell her house herself.

An individual wants to sell her own house. Which of the following statements is TRUE? She does not need a real estate license to sell her house herself. In Nevada, anyone who sells real property first must have a real estate license issued by the Nevada Real Estate Division. She may obtain a temporary real estate license in order to legally sell her house. She may sell her house without obtaining a real estate license only if she is a licensed attorney.

Non-possessory Interest

An interest in property that does not include the right to possess and occupy the property; an encumbrance, such as a lien or an easement.

Fixture

An item of personal property that has been converted to real property by being permanently affixed to the realty. A man-made attachment; an item of personal property that has been attached to or closely associated with real property in such a way that it has legally become part of the real property.

Sale-leaseback

An owner sells a property, then leases it back from the new owner. This could be a long or short term lease.

Prosecution by the district attorney If guilty the offense is a felony D.

An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following? Fine not to exceed $5,000 Fine not to exceed $1,000 and one year imprisonment Civil penalty of $5,000 in addition to other penalties provided by law Prosecution by the district attorney

Slander vs libel

An untrue malicious statement that brings about monetary losses verbally vs in writing

Ratification

Approval of a transaction which has already taken place.

A licensed broker whose license is held by another broker. An associate broker qualifies to be a real estate broker but still works for and is supervised by another broker. Associate brokers are sometimes called broker-associates, broker-salespersons or affiliate brokers.

Associated broker

Assumes vs subject to takeover of loan

Assume (buyer takes full responsibility for payments) vs (seller remains liable)

Institutional lender vs noninstitutional lender

Banks and Life Insurance Co. vs Credit Unions, Private individuals

Net listing

Broker entitled to any amount above the seller's stated net; potential conflict of interest between broker's interest and seller's interest

Contingency provisions

Contingency provisions are conditions that grant the buyer or seller the power to terminate any further performance should an event or approval fail or be disapproved vs required actions. It is usually done for the buyer, so to protect them from litigation (contract breach). Each event or condition which is the responsibility of the buyer to further investigate and approve or cause to occur prior to closing should be the subject of a contingency provision.

What is CPA?

Controlled Business Arrangement a real estate brokerage office that provides related services through subsidiary companies that operate within the brokerage office. The arrangement allows a broker to provide financing, title and hazard insurance, and other ancillary services without violating the Real Estate Settlement Procedures Act (RESPA).

Replacement cost

Current cost to reconstruct a building to serve the same function but not an exact duplicate of the original

steering

Illegal practice of channeling home seekers to particular neighborhoods based on race, religion, national origin; an illegal limitation of a purchaser's options

Cost to cure depreciation method

Depreciation = cost to restore item to full value

Base lines

East-West Lines

What is the EPA?

Environmental Protection Agency is the federal agency responsible for dealing with environmental issues. The agency advises Congress and the president regarding laws to protect the environment. The agency writes regulations implementing laws that have been passed, and the agency enforces all federal environmental rules and regulations. The EPA administers, among other laws, the Clean Water Act, the Toxic Substance Control Act, and the Resource Conservation and Recovery Act.

Lease-purchase option

Exists when a tenant leases a property with the option to purchase it as some later day

Priority of recording

First in time is the first in right

Recovery funds

For the payment of damages and arbitration awards to people who have suffered financial loss due to the wrongful act of a licensee in a real estate transaction. (pg.452). A license is suspended until the fund (plus interest) is reimbursed. $50k max per occurrence or $250k per individual license

Having unpaid child support The licensee's license will be suspended within 30 days of notification for unpaid child support.

For which of the following acts is the real estate commission required to suspend a licensee's license? Failing to perform as promised in a guaranteed sales plan Having unpaid child support Commingling others' money or property with his or her own Failing to balance a trust account and sending an annual reconciliation to the Nevada Real Estate Division

Tenancy in common

Form of co-ownership in which each owner holds an undivided interest as if he or where were sole owners; individual owners have right to partition, right of inheritance

Acknowledgment

Formal declaration by someone like a notary that the signature is both voluntary (no force) and genuine (no forgery). Types: verification, affirmation, affidavit

General power of attorney vs special

General can perform any vs special, only one specific

Dedication

Gift of land by owner for public use

FHA loan

Have lower interest rate, and there are no prepayment penalties. Also, gov't is able to insure because of mortgage insurance premium (fee paid by all loan borrowers)

interest rate on investment loans Financing will have nothing to do with the most profitable use of a property.

Highest and best use is concerned with all of the following EXCEPT: Net yield to owner Utility of surrounding area Relationship to regional development Interest rate on investment loans

be licensed as a broker and reside in another state. The person would need a broker's license from another state and cannot have Nevada residency.

If a person obtains a Nevada cooperative certificate, he or she must Be licensed as a broker and reside in another state. Establish a principal place of business in Nevada or be licensed under a resident Nevada broker. Take all education course requirements in Nevada. File an irrevocable consent agreement with the commission

Divided Loyalty

If the licensee if acting for both parties, what is the conflict of interest?

The seller is limited to what the real property brings at foreclosure The seller cannot sue for a deficiency judgment

If the seller agrees to provide financing on a non-recourse basis, which of the following is true after the buyer defaults?

Withdrawal and termination clauses

If these clauses exist in the listing agreement, and the owner withdraws the property from the market or terminates the agency before the expiration, the broker is owed a fee. If no clauses, and these things happen, broker can only recover out of pocket costs and value of time and effort

No you don't, If you work for a broker you do

If you work for OD do you pay into ERRF?

Must be in writing To all parties

In an agency disclosure requirement, a statement identifying the principle and the agents of fiduciary duty to that principal is required

vacancy and bad debt losses Vacancy and bad debt is money that you do not receive.

In appraising investment real property what does the owner deduct to arrive at the net effective income?

Procuring cause

In order to be paid, the broker starts an uninterrupted chain of events that results in a sale

value of real property decreases as the rate increases When the rate increases value decreases. When the value increases rate decreases. NOI = rate x value

In regard to the capitalization rate: Value of real property increases as the rate increases Value of real property decreases as the rate decreases Value of real property decreases as the rate increases A changing capitalization rate has no effect on value of the real property

Equity sharing

In return for providing financing, the lender wants to share in some of the benefits normally reserved for the equity holder.

Five year work history

In the application for a Nevada Broker's license, which of the following is not required? a. statement of all real estate experience b. business location and fictitious business names, if any c. Disclosure of any felony convictions and/or real estate license denials, suspensions or revocations d. Five-year work history

3 commissioners Clark County 1 Washoe 1 state at large

In what county's and how many are picked for the commissioners spots

Misrepresentation

Innocent - unknown false statement Negligent - false statement that could have been known Fraudulent - known false statement

Interest formula

Interest = Rate x Principal x Time

Natural hazards disclosure requirement

Is mandated for all 1-4 unit residential properties, and cannot be waived as it is against public policy.

Voidable contract

Is valid and enforceable on its face, but it may be rejected by one of the parties

Bundle of rights

The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property.

A rental agreement must have 4 things:

L.A.N.D. 1) Length or duration of lease 2. Amount of rent 3. Names of Parties 4. Description of property

Specific lien

Lien affecting or attaching only to a certain, specific parcel of land

Mechanic's lien

Lien against realty available to one who has supplied labor or materials to improve it. Mechanic must first file preliminary notice within 20 days of beginning work. After notice of completion, 30 days for subcontractors or suppliers, 60 days for general contractors, or if no notice 90 days.

Option listing

Listing with a provision that gives the listing broker the right, but not the obligation, to purchase the listed property within a certain time.

Functional obsolescence

Loss of value to an improvement to real estate because of functional problem, often caused by changing tastes or poor design

3 Appraisal methods

Market Data - compare to similar recently sold homes (most used with single homes, downside not good for rapid economic changes) Cost Approach - determine cost to make new and subtract depreciation (good for new or unique buildings) Income Approach - Net Income / Capitalization Rate = Market Value (I/R = V) (good for income generating properties)

A valid deed

Must be in writing, parties properly named with legal capacity, property adequately described, granting clause, signed by grantor. It passes title when the deed is recorded, which is a form of delivery) giving constructive notice.

Appointed for three years

Nevada Real Estate Commissioners are: Elected every three years Elected every four years Appointed for two years Appointed for three years

No, because he is not eligible until July 1995

Nevada commissioner John Clark was appointed in September 1985 by the Nevada governor to serve the remaining 10 months of the late Nevada commissioner OJ Simpson term. Nevada commissioner Clark was reappointed in July 1986 and again in July 1989. His term in office expired June 19 92. When there was a vacancy on the Nevada commission in August 1994 the Nevada governor wanted to consider appointing John Clark again. Could this appointment be made?

the Nevada State General Fund

Nevada real estate license fees are deposited in

Property manager The other three choices are exempt from licensing.

Of the following, who must have a real estate license? Owner of the property being sold or leased Executor of an estate Bankruptcy trustee or any person acting under court order Property manager

Meridian lines

North-South Lines

Constructive notice

Notice given to the world by recorded documents; possession of property may also be considered constructive notice

Accession

Occurs when an owner acquires title to additional land by natural causes (e.g. earthquake, river, etc.)

A broad knowledge of real estate

Of the following, which is a qualification of the Nevada real estate administrator? A Nevada resident for five years A licensed Nevada real estate broker with three years experience And degree in real estate law A broad knowledge of real estate

new home Replacement is to construct something similar.

Of the three methods of appraising real properties, the replacement cost approach is particularly appropriate and would give the MOST accurate value in the appraisal of a(n): New home Multiple dwelling Old home Medium-age home

Prepayment penalty

Only enforceable during the first 5 years

Types of agency

Open, exclusive agency (seller can still find buyer on their own), exclusive, and net (only for sellers and broker makes whatever extra he is able to sell a house at a specific price), option (broker has chance to buy at predetermined price if house doesn't sell), guaranteed sale listing (seller has right to exercise option for broker to buy)

Trade Fixture

Personal property: Business items permanently attached by tenant. May be removed up to last day of lease. If left, landlord acquires by process of accession

Trustee Sale timeline

Payment past due (past grace period), Notice of default recorded - 90 days (reinstatement period) , 21 day (publishing period), Trustee Sale

Reinstatement vs redemption

Period of up to 5 days before trustee sale in which owner can pay all costs (legal and foreclosure fees to) and retain ownership vs period that lasts until trustee's sale in which owner can pay debt (and all add. costs) in full

Situs

Place where something exists; an area of preference or preference by people for a certain location thus giving economic attributes (value) to the property.

Encroachment

Placement of improvements and permanents fixture illegally on another's property. 3 years upon discovery to take action.

Community Property

Property owned or acquired by both spouses during a marriage by their communal efforts

Nonconforming Use

Property use that doesn't conform to current zoning laws, but is allowed because the property was being used that way before the new zoning law was passed.

A Nevada Broker without a property management permit is not required to have a Nevada trust account

Regarding Nevada Trust Accounts, which of the following is correct? a. A Nevada Broker without a property management permit is not required to have a Nevada trust account b. A Nevada Owner-Developer may not have a Nevada trust account c.Nevada trust account records need not to be kept in chronological order d. A Nevada Broker may use a personal account for clearing earnest money deposits as long as they are recorded as funds held in trust.

One year

Results of Nevada real estate exams are valid for licensing for how long ?

cost of building a real property of equivalent utility with modern materials Replacement is to construct something similar

Replacement cost is BEST described as the: Original cost adjusted for inflation Cost of building a real property of equivalent utility with modern materials Cost of purchasing an equally desirable real property Cost of building an exact replica of the subject real property

Federal trust in lending act

Require the lender to disclose the annual percentage rate of a loan, which is the cost of credit, including interest and other financing cost.

Joint tenants benefits

Right of survivorship and other tenant's property is protected in bankruptcy

Security risk

Securities become a risk when there is attempt to add value to a property (through development, improvements, making a store, crop, etc.) instead of only merely being rented

What is SRPD

Sellers Real Property Disclosure Form Simply put, this is the seller's chance to lay out anything that can negatively affect the value, usefulness or enjoyment of the property.

Consumer price index

Shows changes in the average prices of goods and services purchased by consumers over a period of time. Housing expenses are one of the largest denominators used when calculating the CPI, because it is a person's largest expense.

Capitalization depreciation method

Similar to sales comparison. Find income difference in defect, and then capitalize.

Subdivision Regulations

State and local laws that must be complied with before land can be subdivided.

Economic age-life depreciation method

Straight line depreciation. Accrued rate is effective age / economic life. Good for physical deterioration, but not functional or external obsolesence.

Gross lease

Tenant pays rents, landlord pays all expenses of property; most common form of residential lease

What is CERCLA?

The Comprehensive Environmental Response Cleanup and Liability Act (CERCLA), This law's purpose is to identify sites of environmental pollution and provide funds for cleanup. Under CERCLA, a current landowner can be held liable for the cost of cleaning up a hazardous waste site even when he or she didn't create it. The current owner can then try to obtain reimbursement from the people who originally created the site or from the Superfund itself.

in a rural area where the veteran cannot find a lender to lend at rates of interest competitive with those in other areas in a rural area where the veteran cannot find a lender to lend at rates of interest competitive with those in other areas

The VA is authorized to make direct loans:

What is HMTA

The Hazardous Material Transportation Act (HMTA) is enforced by the United States Department of Transportation.

In Nevada licensee's licensing history

The NVRED, during normal business hours, makes which of the two files open to public review?

Must not hold an Active Nevada real estate license

The Nevada Administrator and NVRED employees are limited in that they:

five actively licensed brokers or broker-salespersons. A commissioner must be a broker with 3 years experience or a broker/salesperson with 5 years experience

The Nevada Real Estate Commission consists of

The Nevada Governor

The Nevada Real Estate Commission is appointed by

a motion from the members of the local real estate association. The board is not a court or a government agency.

The Nevada Real Estate Division may undertake an investigation of a licensee based on all the following grounds EXCEPT Its own initiative as a result of routine audits As a result of a conviction in a court of law. A motion from the members of the local real estate association. A written complaint submitted by a disgruntled customer.

Two years of the previous four

The Nevada broker candidate requires how many years of full-time active experience

Establish Nevada branch offices

The Nevada real estate commission may do all the following except Conduct hearings Establish Nevada branch office Advise NVRED Adopt Nevada regulations

Principle of substitution

The appraisal principle which states that no prudent buyer will pay more than he has to get what he wants. This is the basic principle of the market data or comparison approach to appraisal

deposits a buyer's down payment into his or her own bank account Commingling personal funds with client funds is illegal.

The commission has the power to revoke a salesperson's license if the salesperson Attempts to represent a real estate broker other than his or her employer after obtaining the employer's consent Attempts to represent a buyer. Enters into an exclusive-listing contract Deposits a buyer's down payment into his or her own bank account

A special assessment is charged to the owners that will benefit from the improvements.

The compulsory charge the government imposes against real property owners benefited by street improvements, sewer line installation or road repairs is called a: General tax Special excise tax Property use tax Special assessment

Net agency cost

The cost of monitoring, incentives, and bonding plus residual losses

Reproduction or replication cost

The cost of reproducing a structure (usually destroyed) at current prices using identical (older) style materials and methods as used in the original structure. (pg.341)

value of the land and the building equals the value of the land only The improvements cease to add value to the property.

The economic life of a building has come to an end when the: Building ceases to represent the highest and best use of the land Value of the land and the building equals the value of the land only Rent produced is valued at less than a similar amount of money invested elsewhere could produce Reserve for depreciation equals the cost to replace the building

Answer not given

The following people may never take the Nevada real estate exam: 1. Owner of a real estate school 2. And instructor of a real estate school 3. Any person associated with a real estate school 4. And affiliate of the real estate school

Eminent Domain

The government's constitutional power to take (appropriate) private property for public use, as long as the owner is paid just compensation. (Government taking of private land is called condemnation.)

Commingling

The illegal act by a real estate broker of placing client or customer funds with personal funds. By law brokers are required to maintain a separate trust or escrow account for other parties funds held temporarily by the broker, but can keep up to $200

Qualified lending institutions FHA insures qualified loans FHA does not fund loans

The money used for FHA loans is supplied by which one of the following: Qualified lending institutions Fannie Mae The Federal Housing Administration The Federal Home Loan Bank

exempt from real estate licensing requirements. These are all clerical duties.

The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is violating the license law. Required to have a broker's license Required to have a salesperson's license Exempt from real estate licensing requirements.

Exclusive Agency Listing

The owner employs only one broker but retains the right to personally sell the property, and thereby not pay a commission. However, if any other real estate company sells the property, the listing broker is still entitled to the commission stipulated.

Exclusive agency listing

The owner employs only one broker but retains the right to personally sell the property, and thereby not pay a commission. However, if any other real estate company sells the property, the listing broker is still entitled to the commission stipulated.

economic life Economic life is the time frame an improvement will add to value.

The period of time through which a real property gives benefits to its owner is BEST described as: Investment duration Physical life Value duration Economic life

Air Rights

The right to undisturbed use and control of the airspace over a parcel of land (within reasonable limits for air travel); may be transferred separately from the land.

Declaration of homestead

The recorded document that protects a homeowner from foreclosure by certain judgment creditors. Must be declared before foreclosure.

To be held at least once every two months on dates and at times and places designated by NVRED

The required schedule for the Nevada written exam is

Full-time acive real estate experience for 2 of the 4 years preceeding

The requirements to be the manager of a Nevada branch office by a Nevada Broker Salesperson are :

is exempt from the licensing requirements. The manager is exempt if they maintain an office on site and manage only one site.

The resident manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position, the on-site manager Must have a salesperson's license. Must have a broker's license. Is exempt from the licensing requirements. Is violating the license law.

NVRED

The responsibility for investigating transaction files and trust account records of Nevada owner developer and Nevada brokers falls on who?

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

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

None

The second renewal of a Nevada Broker or Broker Salesperson license requires how many hours of additional Nevada continuing education than a Nevada Salesperson?

Land contract

The seller accepts a down payment on a parcel of land but title to the property does not pass until the last principal payment has been received. This is referred to as an installment sales contract or a contract for a deed.

Dominant tenement

The tract that benefits from the easement

- Have an office in an area zoned properly - Must have been actively engaged as a full time licensed broker or broker salesperson for at least 2 out of the 4 years prior to issuance of license.

To be and active broker in NV, you must:

A credit report

To become a licensed Nevada broker, you may be required to provide

Estate for years

Type of less than freehold estate. Leasehold interest for specific period of time; definite beginning, definite ending; not terminated by death of either party, nor sale of property; no notice required

Estate from Period to period

Type of less than freehold estate. Periodic tenancy. Month to month tenancy that requires 30 days notice to quit and automatically renews.

Estate at Sufferance

Type of less than freehold estate. Tenant remains on the property, without the landlord's permission, after the lease has expired

The NV District Attorney or the NV Attorney General

Under NRS, non-licensee conducting business requiring a Nevada Real Estate License is prosecuted by:

Exclusive-listing contracts must discuss the seller's net return Also must leave a copy immediately or as soon as practical.

Under Nevada law, which of the following statements is not true of an exclusive-listing contract? Exclusive-listing contracts must be in writing. Exclusive-listing contracts must include a specific termination date. Automatic extension clauses are not allowed in exclusive-listing contracts. Exclusive-listing contracts must discuss the seller's net return

there is a member who meets the qualifications of a real estate broker. One member must be a broker.

Under Nevada licensing law, a partnership, association, or corporation will be granted a license only if There is a member who meets the qualifications of a real estate broker. Every member and officer actively participating in the brokerage business has a broker's license All papers are filed with the secretary of state. The brokerage business has paid a one-time fee to the real estate education, research, and recovery fund.

interest payments on loans Debt service is not an expense.

Using the income approach to valuation, all of the following are proper deductions from effective gross income to determine net income EXCEPT: Reserve for replacement Interest payments on loans Maintenance expenses Management costs

Net lease

Usually done for for stores. Lease requiring tenant to pay not only rent but also taxes, insurance, utilities and repairs

16 credits for every 2 years' active experience The experience must be verified and full time.

Waiver of the prelicensing educational requirements for brokers and broker-salespeople is made for active experience as a salesperson according to which pattern? 15 credits for every 2 years' active experience 16 credits for every 2 years' active experience 8 credits for every 1 year's active experience There is no waiver for experience

Exclusive agency

What agency requires it in writing?

Duties Owed Consent to Act Open Range SRPD Resale Pkg

What are the 5 types of disclosures?

Advise & adopt Conduct & approve

What are the commissioners duties

Conduct Approve Adopt Advise

What are the commissioners duties?

Subject matter expert

What is SME

A premium A premium added to the rate to pay for the lenders cost to facilitate the loan

What is a margin:

2-4-1-3

What is the correct sequence of the following events? 1. Petition the court for recovery from NVERRF 2. Obtain a Nevada court judgement 3. Payment of a claim from NVERRF 4. Make a reasonable effort to find assets available to satisfy the judgement

Sales Agent = Timeshare Sales person = Real Estate

What is the difference in SalesAGENT and SalesPERSON

1. End of Transaction or Contract Date 2. Mutual Agreement 3. Abandonment or Involuntary Termination - client or broker 4. Death - Client or Broker

What type of Agency Terminations are there?

external obsolescence External is something outside the property affecting value.

What type of reduction in value is present when a hydrogen gas storage tank is located next to a residential real property?

Must identify the Nevada Broker and identify the Nevada Salesperson as owner/licensee

When a Nevada licensee advertises their own property for sale, with a brokerage sign, they:

Has an active Nevada brokers license

When a Nevada partnership or Nevada corporation wants to do business as Nevada broker, the Nevada corporation or Nevada partnership must have a designated person who

Pipes, ducts, heating and hot water units in USA

Where would you find asbestos ?

Subordination

Written agreement between lien holders that changes the priority of mortgage, judgment and other liens under certain circumstances

Emancipated minor

a minor who is married, pregnant, a parent, in the armed forces, or financially independent and living away from home with the permission of the courts

Regressive tax

a tax for which the percentage of income paid in taxes decreases as income increases

Real estate investment trust

a type of company that sells securities to invest in real estate properties

waiver

a unilateral act and its legal consequences. One party "waives" certain rights

Blanket encumbrance

a voluntary lien placed over more than one parcel

If a listing agreement contains a safety clause, this offers the broker protection in the event of: a. the sale of the property in the period after the listing expires b. a suit against the broker by the buyer resulting from misinformation provided by the seller c. the theft of property from the seller's home when it is being shown d. an agreement to purchase the seller's home before the buyer has sold his property

a. the sale of the property in the period after the listing expires

Land appraisal methods

abstractive method would abstract from the total value of the property the value of the improvements, and hence the remaining value would be the value of the land; the development method estimates the value of the property when fully developed and subtracts the development costs, thus indicating the value of the land

Incompetent

person judged to be of unsound mind

Hypothecate

process of pledging something (house) as security, but retaining possession of it.

bilateral contract vs unilateral contract

promise to promise (e.g. purchase agreement) vs actual act of performance (e.g. listing agreement)

Effective interest rate

rate the borrower is actually paying (includes interest, points, and loan fees)

All inclusive trust deed

second trust deed, which brings in first trust deed at a higher interest rate

If agent fails to disclose known defects in a property to the buyer, the buyer can file civil action against...

the agent within 2 years

Bill of Sale

the document used to transfer legal ownership of personal property from one person to another when a title document is not required

Conversion

unlawful misappropriation and use of a client's funds

Injunction

(law) a judicial remedy issued in order to prohibit a party from doing or continuing to do a certain activity

Tort

(law) any wrongdoing for which an action for damages may be brought

Novation

(law) the replacement of one obligation/contract by another by mutual agreement of both parties

Public restrictions

* police power (zoning ordinances and building codes) * eminent domain * taxes * escheat

111. How often must a time-share project submit the performance report of an exchange program to the division? A) semi-annually B) quarterly C) annually D) biannually

c

Littoral Rights

(1) A land owner's claim to use water in large navigable lakes and ocean's adjacent to his or her property. (2) The ownership rights to land bordering these bodies of water up to the high water mark. Littoral = lakes

Construction work of less than ?does not require a contractor's license

$500

Agency - Listing Agreement

*** Must be in writing before any brokerage services are provided: EXCEPTION - If seller did not originally agree to dual/designated agency in listing agreement, seller can ORALLY amend their agreement later (as long as it's reduced to writing prior to first offer). Used to be a separate form but now it's on listing contracts.

Items of a purchase agreement

1) Deposit (consideration for) 2) Covenant (a promise within) 3) Contingencies, Conditions, or Subject to (provision in which all parties may be released from any obligation of a contract if something occurs or fails to occur)

Special circumstance which may cause a failed prediction to be an actionable misrepresentation

1) an opinion between an agent and his principal 2) an opinion by the agent in which he claims expertise or 3) superior or inside information 4) an opinion by an agent which the agent does not believe is true

Covenant

1. A contract. 2. A promise. Agreement. 3. A guarantee (express or implied) in a document such as a deed or lease. 4. A restrictive covenant. (Typical covenants compel or prevent certain actions by the property owner or uses for the property.)

Assessment

1. A government's valuation of property for tax purposes. 2. A special assessment.

4 agents of production

1. Capital (financial resources), 2. Land (natural resources) 3. Labor (employment) 4. Coordination (management or entrepreneurship)

4 Cost Estimate Techniques

1. Comparative Unit Method (most used, determines price by similar buildings square footage) 2. Unit-In-Place Method (breaks down cost of individual building components such as foundation) 3. Quantity Survey Method (estimates of raw materials, labor, and equipment) 4. Cost Index Trending (divide current cost index by previous cost index and then multiple this to original cost)

Condemnation

1. Taking private property for public use, through the government's power of eminent domain. Also called appropriation. 2. A declaration that a structure is unfit for occupancy and must be closed or demolished.

Unilateral rescission

1. Wronged party discloses the wrong and 2. restores everything of value to the offending party. pg.125

A sales person needs how many years of experience before they can manage others in some property management tasks

2

need not be licensed as a real estate broker. When working on behalf of a court, a trustee, executor and administrator are exempt from licensing.

31 Under Nevada law, any person who acts as an executor of an estate Need not be licensed as a real estate broker. Must have his or her court appointment endorsed by the real estate commission. Must register and be approved by the Nevada Real Estate Division Must have a special endorsement by HUD.

Township

36 square mile sections, each section 640 acres

Private deed restrictions

3: Covenant, condition, and restriction. Restrictions are placed by the developer.

A real estate agent must renew their license every

4 years and complete 45 continuing education hours

Acre

43,560 square feet

A fictitious business name registered with a county clerk must be renewed every

5 years

Delinquent property taxes redemption period

5 years, which begins after property taxes have not been paid for one year, tax collector files a book sale

Effective age

= Economic Life - Remaining Economic Life

Depreciation

= Value - Cost. 3 types: physical deterioration, functional obsolesence, and external obsolesence.

s exempt from registration There would be 25 units. The requirement to register is 35 or more.

A 500-acre parcel is divided into 20-acre lots. This subdivision Is exempt from registration Is partially exempt but still must register. Must register Must register unless it is free and clear

the certificate is valid for two years. The certificate is valid for one year.

A California broker wishes to help her brother-in-law, a Nevada broker, find California buyers for the Nevada broker's resort-area listings in Lake Tahoe (Nevada side only). All of the following are true regarding a cooperative certificate issued to the California broker EXCEPT that The certificate is valid for two years. Only the California broker may obtain a cooperative certificate; her corporation may not. The Nevada broker may cooperate with several out-of-state brokers. The California broker may not sell land in Nevada to a Nevada resident

All of the above ~ Have education with no experience ~ Manage a Branch office as a Branch Manager ~ Have a Broker's license in another state

A Nevada Broker-Salesperson May: ~ Have education with no experience ~ Manage a Branch office as a Branch Manager ~ Have a Broker's license in another state - All of the above.

One Year Regardless

A Nevada Owner-Developer's registration is valid for

Commingled

A Nevada Salesperson receives deposit money in the form of five(5) $100 dollar bills, Later, the Nevada Salesperson gives the money back to the person in the form of twenty-five (25) $20 dollar bills. What is this act called?

Broker and buyer

A Nevada buyer representation agreement is defined as an agreement between which of the following

Promptly not immediately

A Nevada licensee must deliver an offer to their client

Before accepting deposit money

A Nevada licensee shall disclose any knowledge of a nevada property having un-merchantable title:

may have his Nevada license suspended because of the Arizona suspension. The suspension will be at the commission's discretion.

A Nevada licensee was suspended under his Arizona license. In this situation, the licensee May have his Nevada license suspended because of the Arizona suspension. May not be disciplined in Nevada unless the activity had to do with Nevada real estate. Will automatically lose his Nevada license Does not have to disclose the suspension to the Nevada Real Estate Division.

his or her employing broker only Only a broker may pay their licensees a commission, fee or referral

A Nevada real estate salesperson may lawfully collect compensation from Either a buyer or a seller. His or her employing broker only Any party to the transaction or the party's representative. A licensed real estate broker only

careful concern to external obsolescence External is an outside factor that may affect a property's value.

A broker has just obtained a listing on a residence located adjacent to a new hamburger drive-in restaurant. An appraiser of the residence should give which of the following? Careful concern to external obsolescence Minimal concern to highest and best use Primary attention to the projected income stream Maximum concern to the earning potential of the hamburger stand

Within 3 months of the payment Within 3 months of the payment

A broker has taken a $3,000 consulting fee from a developer regarding a new subdivision marketing plan. When must an accounting for this advance fee be given to the developer? Immediately after payment Within 10 days of the payment Within 30 days of the payment Within 3 months of the payment

obtains a cooperating certificate to work through a Nevada broker. The Montana broker must work through a Nevada broker. The Nevada broker is in charge of the transaction and money.

A broker is licensed in Montana only. The broker wants to sell lots in Nevada as mobile home sites to Montana clients as winter homes. The broker may do this if the broker Relocates to Nevada. Obtains a cooperating certificate to work through a Nevada broker. Maintains all his records in Montana. Closes escrows in Nevada or Montana.

Referral Fee

A broker is never allowed a referral fee for referring clients to other businesses, but can profit off of referring clients to a owned or co-owned business. Under RESPA, there are 2 exceptions: Brokers can can pay or receive a broker's fee from other brokers or agents in their employee for referring clients

may not be actively licensed. All Division employees may not have an active license.

A broker recently closed her office and went to work for the Nevada Real Estate Division as the deputy administrator. In this role, the broker May not buy and sell property. May not be actively licensed. May not own property. Must pass the state portion of the real estate examination before her employment.

completion of CE courses by a salesperson The sales person will turn in their own CE when they renew their license. (CE means continue education)

A broker responsible for the operation of his or her office must disclose all of the following to the Nevada Real Estate Division within 10 days EXCEPT A change in the name of the brokerage Completion of CE courses by a salesperson A change in the business location of the brokerage The termination of a broker-salesperson or salesperson from the office

is illegal in Nevada. It is illegal to have an automatic renewal on an exclusive listing

A broker signs an exclusive listing agreement with a seller. The agreement contains the following clause: "If the Property has not been sold after three months from the date of this signing, this agreement will automatically continue for additional three-month periods thereafter until the property is sold." Based on these facts, the agreement Is legal under Nevada law because it contains a reference to a specific time limit Is illegal in Nevada. Automatically receives a statutory six-month listing period to this open listing in Nevada. Is legal under Nevada law because the list periods are for less than six months each.

One year after receiving the judgment The judgment must be final; no pending proceedings are allowed to file for payment.

A broker violates the license law, which results in monetary damages to a consumer. What is the latest date on which the injured party may file a request for payment from the real estate education, research, and recovery fund? One year after receiving the judgment Two years after the alleged violation occurred Three years after the alleged violation occurred Three years after the date on which a professional relationship of trust and accountability commenced

on an ad valorem basis An ad valorem tax is charged according to value.

Real property taxes are determined by which of the following ways? On an ad valorem basis According to the number of occupants Loan-to-value ratio Duration of ownership

no later than the time an offer and acceptance agreement is prepared The duties owed must be presented by offer and acceptance.

A brokerage's relationship as a buyer's agent or seller's agent, dual agent, or assigned agent within the brokerage must be determined, and all necessary agreements must be executed At any time after a purchase and sale agreement is executed by the parties At the time of the first substantial business contact No later than the time an offer and acceptance agreement is prepared No later than the closing

5 days from the date the new contract is executed. The contract must be accepted or rejected within five days.

A buyer has just entered into a contract to buy a condominium unit from a person who originally bought the unit from the developer and has lived there for the past 10 years. This new buyer has a right to cancel the contract within 5 days of receipt of resale documents providing the contract dictates such 15 days of receipt of resale documents per NRS 116 5 days from the date the new contract is executed. The new buyer does not have the right to cancel a signed contract in this situation.

15 days The broker must return any monies received within 15 days of cancelling the contract for land sales and time shares.

A buyer has purchased land regulated under NRS 119 and cancels within the five days allowed by law. How much time does the broker have to refund the buyer's money? 5 days 10 days 15 days 30 days

external obsolescence An outside factor affecting value

A chicken ranch has just been built one block from your house. The strong odors are lowering property values in your neighborhood. This loss in value would be classified as:

Joint Tenancy

A form of co-ownership in which the co-owners have equal undivided interests and the right of survivorship. In Ohio, joint tenancy has been replaced by the statutory survivorship tenancy; joint tenancies established before 1985 still exist, but no new ones may be created. Joint tenancy must have the four unities present.

Partition action

A legal action by which co-owners seek to sever their joint ownership. The physical division of property between co-owners, usually through court action

Lien

A legal claim or hold on property, as security for a debt or charge. Can be voluntary (owner agrees) or involuntary (government or collectors)

Corporation

A legal entity, sanctioned by the sate, with rights and liabilities, distinct and apart from those of the persons composing it.

Under no circumstances The agent may hold multiple licenses from different states, but only one Nevada license.

A licensed salesperson may hold concurrent licenses with more than one Nevada broker under which of the following circumstances? Under no circumstances With the permission of his or her sales manager With the written consent of the brokers holding the licenses With the permission of the real estate commission

Dominant Tenant

A person who has easement rights on another's property; either the owner of a dominant tenement, or someone who has an easement in gross.

Lis Pendens

Recorded legal document giving constructive notice that the property is the subject of an action filed in a state or federal court (pending lawsuit)

19. A salesperson who wishes to place his or her own "for sale" sign on a listed property must A) identify the broker on the sign and may identify the salesperson B) first sell the property C) list only the brokerage office phone number on the sign D) get permission from the neighbors

a

a copy must immediately be left with the seller after signing the listing. The agent must leave a copy immediately or as soon as practical.

All of the following are requirements for an exclusive-right-to-sell listing EXCEPT that It must be written. It must have an expiration date. It cannot have an automatic renewal clause. A copy must immediately be left with the seller after signing the listing.

Express Grant

An easement granted to another in a deed or other document. Also: Easement by Express Grant

Easement in gross

An easement that benefits a particular individual, not a parcel of property. Involves only a servient estate. A public utility easement is an example.

Appurtenant Easement

An easement that benefits a particular piece of property (dominant tenement).

Easement in Gross

An easement that benefits a person instead of a piece of land; there is a dominant tenant, but no dominant tenement. the right to use land for a specific, limited purpose unrelated to any adjacent parcel. a personal right to use the land of another.

Gross dollar vs company dollar

All income vs income left after commissions

sale by a real estate licensee of a two-unit residential property All resale must use the SRPD.

All of the following are exempt from the Seller's Real Property Disclosure Form EXCEPT Foreclosure sale Sale by an uncle to his niece Conveyance of a primary residence from one former spouse to another under a divorce settlement agreement Sale by a real estate licensee of a two-unit residential property

individual who receives compensation for procuring prospective buyers or renters of real estate individual who receives compensation for procuring prospective buyers or renters of real estate - IS CORRECT

All of the following are exempt from the provisions of the NRS 645 EXCEPT a(n) Property owner who sells or leases his or her own property. Individual who receives compensation for procuring prospective buyer or renters of real estate

refusing to show property to a prospective purchaser due to poor credit Refusing to show based on finances is legal and not discriminatory.

All of the following are grounds for disciplinary action EXCEPT a licensee Trying to negotiate a sale of property directly with an owner before another broker's exclusive listing has expired Giving information on a rental to a tenant without the landlord's permission Refusing to write a low offer that the licensee feels will not be accepted by the seller Refusing to show property to a prospective purchaser due to poor credit

146. In NV, the real estate license law is administered by the A) Council on Housing Matters B) Nevada Real Estate Division C) Nevada Association of Realtors D) Department of Housing and Urban Development

b

a listing agreement must be accompanied by a qualified expert's report of the property's condition. An inspection may be done voluntarily by the seller or required by the buyer per contract.

All of the following provisions are included in the Nevada Real Estate Commission's regulations regarding listing agreements EXCEPT that An exclusive-listing agreement must state the termination date. A listing agreement must be accompanied by a qualified expert's report of the property's condition. An exclusive-listing agreement must be in writing and signed by both the broker (or an authorized agent) and the seller. An exclusive listing agreement cannot have an automatic renewal

a Nevada Broker must use his or her own name they could use a ficticious name if they wanted to

All of the following statement regarding a Nevada Broker are correct EXCEPT: They must supply a copy of their franchise agreement if they are a franchise they must supply fictitious name filings if such are used articles of incorporation or partnership agreement must be supplied if operating as one of the entities A nevada Broker must use his or her own name only

The certificate is only valid for two years

All of the following statements are correct regarding a Nevada Cooperating Broker Certificate except: only natural persons may be issued Nevada Cooperating Broker Certificates the Certificate is valid for two years A nevada broker may cooperate with several out-of-state- Broker an out-of-state cooperating broker may not sell land to a Nevada resident

External obsolescence is the result of building design A building design would be FUNCTIONAL obsolescence

All of the following statements are true EXCEPT: Functional obsolescence is the result of factors within the real property External obsolescence is caused by factors outside the real property External obsolescence is the result of building design Deterioration is wear and tear

A larger real property next door sold for 20 percent below the listed price The sale next door may have had special circumstances that would not reflect market value or the listing was over priced.

All of the following statements are true about loss in value due to obsolescence EXCEPT: Extra-large load-bearing columns in a 30-year-old commercial building represent incurable functional obsolescence An unattractive store front window represents curable functional obsolescence. A chemical plant located across the street from a private residence represents external obsolescence. A larger real property next door sold for 20 percent below the listed price

Things that are subject to property tax in the sale of a business

All real property and tangible personal property (except inventory) used in a business

1 & 3 Fannie Mae and Ginnie Mae are part of the secondary market.

All the following are primary markets where loans are completed before they have funded EXCEPT : Fannie Mae (Federal National Mortgage Association) National City Mortgage Company Ginnie Mae (Government National Mortgage Association) 1 & 3

Name prominent

All types of advertisements must have the Nevada brokers

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.

An applicant for a real estate license in Nevada must Have completed at least two years of college. Be at least 21 years old Not have had a real estate license revoked within the last year before applying. Show proof of passing the license examination any time up to six months prior to the application

1 A certificate for me recognize educational institution as proof of the required course was completed 2 A completed application form as mandated by NVRED 4 The application fee

An applicant for an original Nevada real estate brokers license must submit: 1. Hey certificate for me recognized educational institute as proof of the required course was completed 2. A completed application form was mandated by NVRED 3 Sufficient assets or income to sustain himself for 180 days 4 The application fee

Unless they are at least 17 years old to take the test, must be 18 years od to be licensed

An application to take the Nevada real estate license exam will not e accepted from a person: Unless they are 18 unless they are at least 17 to take the test, and 18 years old to have a license Must be 21 years old

exterior dimensions The appraiser will consider total square footage under heat and air.

An appraiser measuring the area of a house would use the: Net rentable area Exterior dimensions Room sizes Interior dimensions, excluding partitions

Economic life ceases first Economic life is when an improvement stops adding value to the property regardless of the physical life

An appraiser often makes a distinction between the physical life and the economic life of an improvement. Regarding these two ways to measure "life," which is generally true? Economic life lasts longer Economic life and physical age are usually parallel Physical life is shorter Economic life ceases first

Absolute auction

An auction where the property must be sold to the highest bidder, no matter how low the highest bid is

No-Sale auction

An auction with a minimum bid

Easement by Prescription

An easement acquired by prescription. Also called a prescriptive easement. Created through continual use over a certain period of time. It must be continual, visible, & w/o approval. Example - a private road becomes public.

Easement by Express Reservation

An easement created in a deed when a landowner is dividing the property, transferring the servient tenement (The land which suffers or has the burden of an easement. ) but retaining the dominant tenement.

Express Reservation

An easement created in a deed when a landowner is dividing the property, transferring the servient tenement but retaining the dominant tenement. Also: Easement by Express Reservation

Easement by Express Grant

An easement granted to another in a deed or other document. easement given in a deed by the original owner to provide a means of access for the purchaser of one part of the land

open agency agreement

buyer allowed to use unlimited number of brokers, and must compensate the broker who locates the property.

Graduated payment mortgage

buyers pay lower initial monthly payments in the earlier years with payments rising in successive years

the use that produces the highest income The use that would produce the most value to the property.

Which of the following BEST describes the highest and best use for a particular real property? The use that the owner wants Whatever is the present use The use that produces the highest income Whatever use produces the highest density zoning

tax-deferred exchange In a 1031 exchange boot would be any profit or debt relief during the exchange. Boot is taxable.

Boot is a factor to be taken into consideration in a: Purchase of FHA-insured real property Transfer by conditional sales contract Tax-deferred exchange Commercial lease

Having been arrested for embezzlement and/or fraud

Which of the following would not disqualify an applicant from receiving a Nevada license? A. Having made a false statement on the Nevada application Having been arrested for embezzlement and/or fraud Having pled guilty to engaging in the real estate business without a valid real estate license Having a suspended, but not revoked, real estate license in Arizona four years ago

100. A salesperson that applies for a license may associate with which of the following? A) broker salesperson B) registered representative C) owner developer D) qualified intermediary

c

15. For which of the following acts is the real estate commission required to suspend and agent's license? A) failing to perform as promised in a guaranteed sales plan B) having unpaid child support C) commingling others money or property with his or her own D) failing to balance a trust account and sending an annual reconciliation to the NV real estate division

b

90. A Nevada licensee was suspended under his Arizona license. In this situation, the licensee A) may have his Nevada license suspended because of the Arizona suspension B) may not be disciplined in Nevada unless the activity had to do with Nevada real estate C) will automatically lose his NV license D) does not have to disclose the suspension to the NV Real Estate Division

a

Prospective purchaser should read this report before signing any paper. THE LETTERING MUST BE IN RED

Which warning message is superimposed on the cover of a public offering Prospective purchaser should see the exact parcel considered before Prospective purchaser should read this report before signing any paper. Prospective purchaser has five calendar days to cancel any contract signed. Prospective purchaser should seek competent advice if this report is not understood

the commissioners They do not make laws --- they make real estate regulations.

Who advises, adopt, conduct, and approve?

104. Which of the following is a requirement to obtain a registration as a qualified intermediary? A) have a college degree in finance B) pass an examination C) post a minimum of $25,000 bond D) hold a broker's license

c

64 semester units of college

With an original application for a Nevada Salesperson's license, all of the following must be included EXCEPT: a completed application form A check or money order in the amount of the correct fee 64 semester units of college a 90-hour course in principals, practices, procedures, law and ethics

Mortgage

a conditional conveyance of property as security for the repayment of a loan

105. During a time-share promotional meeting, what is the maximum number of salespeople who may attempt the sale? A) 5 B) 3 C) 2 D) 1

c

Nevada Ownder-Developers do not have to contribute.

With regards to the NVERRF, the following are not true except: a. The NVERRF is not held as part of the Nevada General State Fund b. the NV Broker of record funds the NVERRF by a fee based on the number of emlpoyees working for them c. Nevada Owner-Developers do not have to contribute d. Any balance over $300,000 a the end of the fiscal year is set aside and used y the NVRED Director

Mortgage

a conditional conveyance of property as security for the repayment of a loan. It does not convey title. It creates a lien. It involves just 2 parties. If default only have option of foreclosure.

Homeowner's property tax exemption

a deduction on the property tax bill of the first $7,000 of assessed value of an owner-occupied property

Breach

a failure to perform some promised act or obligation. Can be remedied through a) acceptance b) unilateral rescission c) action for dollar damages d) specific performance

Commission

a fee for services rendered based on a percentage of an amount received or collected or agreed to be paid (as distinguished from a salary)

186. An individual wants to sell her own house, which is in a common-interest community association. Which of the following statements is true? A) she is required to supply a certificate of resale to the buyer whether or not a broker is used B) in NV, anyone who sells his or her own real estate does not need to supply a certificate of resale C) the individual may obtain a temporary variance from the law D) she may sell her house without any further liability to the buyer regarding a resale certificate

a

Joint Tenancy

Co-ownership of real estate; when one of the owners dies, that interest goes to the remaining owners (right of survivorship). 4 things neccessary, title at the same time by the same instrument, equal interest, equal right to possess. Burden is the 4 things at the same time.

fines, suspension, revocation, or conditional licensing. The commission deals with licensing issues not criminal offences or court proceedings. The commission's decision may be appealed.

Commission hearings may result in

Recently sold homes in a neighborhood give a fair indication of the value of similar homes. The sales comparison approach is the most common approach for residential where there are many comparables to choose from.

Concerning the valuation of residential real property, which of the following is true? The value of the ordinary single-family residential real property should be based on the income it is capable of producing if rented. In valuing a residence, functional accessories such as built-in teak cabinets are seldom taken into consideration An older home in a neighborhood of newer homes will retain its value and not be affected by the value of the other homes. Recently sold homes in a neighborhood give a fair indication of the value of similar homes.

Lease

Contract for a set time between the landlord (lessor) and tenant (lessee)

1 year

How long is your initial license?

1 year

How longneck does a president have a term?

-30 hrs - your FIRST year. Every renewal after that (every 2 years) -24 hrs - 12 hours must be live (in classroom) - 12 must be CANE

How many hours do you need to get your license?

All of the above Ethics, principles and practices, timeshares

I never had a broker must teach Nevada sales people or Nevada broker sales people, what?

Cooperate with other brokers

I never had a broker who holds an exclusive listing shall

Immediately be placed as in active status

If a Nevada broker feels to renew their Nevada license, the licenses of all renewed Nevada sales person employed will

receives two sales commissions The broker has an interest on each side of the transaction.

If a broker exchanges a real property listed by a co-broker with a real property she has listed, under the usual cooperating situation the broker:

broker can lose his or her license. This is done with intent and could be considered fraud.

If a broker tells a lender that the sales price on a property is something above its actual sales price, the Broker has done nothing wrong as long as the appraisal substantiates this price. Buyer is likely to receive an interest rate break. Broker can lose his or her license. Buyer can receive a higher mortgage amount

Three-day notice to pay rent or quit

Eviction notice. A legal document that informs the tenant that he/she has 3 straight business days to pay all past due rent, vacate the premises, or face an unlawful detainer court action

mortgage principal

Examples of deductible expenses on an owner's tax return for a vacation home are all of the following EXCEPT: Mortgage interest Real property taxes Mortgage principal Casualty losses

By the governor The five member board is appointed by the governor.

How are members of the real estate commission selected?

Five years after COE or last activity

How long after the closing date of the transaction must a Nevada general broker keep his records?

Five calendar days The buyer has the right to cancel the contract through the 5th calendar day

How long after the signing of a contract for the purchase of a lot in Nevada or elsewhere may the purchaser cancel the transaction?

The broker should urge the client to contact a licensed attorney to prepare the clause for inclusion in the sales contract. Licensees may not practice law.

If a buyer wants to have a clause included in the sales contract under which the seller offers assurances against the existence of werewolves, vampires, and trolls on the property. Which of the following statements is TRUE in Nevada? The broker should consult a law manual for proper wording and may include the clause, because such standard supernatural disclosures are in general usage. The broker should urge the client to contact a licensed attorney to prepare the clause for inclusion in the sales contract. In Nevada, brokers are permitted to add additional clauses to blank form contracts, such as the clause described here, that do not directly involve the conveyance of title to real property Under Nevada law, a frivolous clause, such as the one described here, is not permitted and any contract containing such a clause will be invalid.

The Nevada License is automatically suspended for a minimum of 1 year

If a claim is paid from the NVERRF to satisfy a judgement against a Nevada licensee, what would happen to the licensee

Seller's interference on broker's fee

If a seller interferes with a buyer's broker collecting their fees (whether the buyer and broker had a written or oral agreement) the seller owes the broker his/her fees

brokerage

If a sign advertising property has the following information listed on it, what is illegal Monthly Payment Brokeridge Regulation Z Owners phone number

Must have an office in Nevada

If an active Nevada Broker is also licensed in California, they:

Answer not given (May be done orally by offerors agent)

If an offer is deemed unacceptable, who may call the buyer? a. anyone b. A Nevada Salesperson for the offeror must recieve, in writing, that the offer has been rejected and reply back to the offeree or the offeree's Nevada Salesperson with that information c. No one has to reply unless the offer specifically stipulates that by federal law notification must be given d. Answer not given

Attorneys-at-law within their scope of practice Attorneys-at-law within their scope of practice are exempt

If engaged in real estate activity, which of the following are exempt from the real estate licensing requirement? Attorneys-at-law within their scope of practice Property managers Associations, partnerships, and corporations engaging in the real estate business Corporate employees who receive bonuses for their work in buying or selling corporate properties

4 days

If new defect about the house you are selling gets discovered or worsens, how many days do you have to inform this information

Twenty

If the NVRED issues a Nevada license in error and then incalidates it, how many days does the Nevada licensee have to return it to the NVRED to recieve a hearing

blockbusting

Illegal practice of inducing homeowners to sell their properties by telling them that a certain people of a certain race, national origin or religion are moving into the area

redlining

Illegal practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than economic qualifications of applicants

Both a and B A natural person Not partners

In Nevada associate broker is

Non-residents of Nevada

In Nevada real estate license may not be held by any of the following except Non-residents of Nevada NVRED Employee Person is currently under suspension Nevada real estate division administrator

30 days

In Nevada sales person license will revert to an active renewed if the Nevada license he leaves one Nevada broker and does not associate with another Nevada broker within

depositing earnest money into the firm's trust account The broker must deposit the earnest money into a trust account or what all parties agree to in writing.

In Nevada, a broker may have his or her license suspended or revoked for all of the following actions EXCEPT Failing to keep adequate records. Depositing earnest money into the firm's trust account Helping another person cheat on the licensing examination. Displaying a "For Sale" sign on a property without the owner's consent

having been actively engaged as a licensed salesperson for at least two out of the last four years. The experience can be from any level of licensing and from any state. The experience requirement is for a broker's license.

In Nevada, all of the following are requirements for obtaining a broker-salesperson license EXCEPT Having successfully completed 64 semester hours of approved real estate courses or equivalent experience. Being at least 18 years of age. Having been actively engaged as a licensed salesperson for at least two out of the last four years. Being of good moral character.

must be a written agreement in order to be exclusive. All exclusive agency agreements must be in writing.

In Nevada, an exclusive-right-to-represent a buyer contract Is illegal. Is identical to a listing agreement. Must be a written agreement in order to be exclusive. Requires the signature of the principal only.

explain simple contract documents to prospective buyers. The unlicensed assistant may not give facts about properties or explain documents to clients.

In Nevada, an unlicensed real estate assistant may perform all of the following activities EXCEPT Compute commission checks Assemble disclosure documents required for a closing. Explain simple contract documents to prospective buyers. Prepare mailings and promotional materials.

be completed after taking the written exam. To apply for a license a person would need a passing score on the state exam.

In Nevada, applications for any real estate license must Be completed after taking the written exam. Contain a certified picture of the applicant Be made before May 31 of each year. Be accompanied by a sworn statement attesting to the applicant's character.

The resident manager of an apartment complex employed by a Nevada Broker

Of the following, which must have a Nevada real estate license? The executor of an estate The spouse of the owner of property being sold or leased who works for the Nevada Broker A bankruptcy trustee or any person working under Nevada court order The resident manager of an apartment complex employed by a Nevada Broker

Less than freehold estate

Personal Property

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

In Nevada, brokers and salespeople who are not lawyers may Sign a bill of sale on behalf of the seller after a sales contract has been signed Fill in blanks on preprinted form contracts customarily used in their community. Suggest additional language to be added to a preprinted sales contract by a buyer or seller. Explain the legal significance of specific preprinted contract clauses to a buyer or seller.

negotiable between the client and broker. All commissions are negotiable.

In Nevada, real estate commissions are

18

In Nevada, the age of legal competence is 18 19 20 21

Nevada Real Estate Division. The real estate division will administer the provisions of NAC/NRS.

In Nevada, the real estate license law is administered by the

Can be valid and can be used by parties within a real estate transaction if they agree

In Nevada, which of the following is true regarding electronics signatures within real estate related contracts Can never be valid or used Can be valid and can be used by parties within a real estate transaction if they agree Can be valid but can only be used in non-owner occupied transactions And develop it can only be used so long as his signature guarantee is also supplied

Person acting as a property manager The property manager would only be exempt if the office is on site and they only manage the one property.

In Nevada, which of the following would need to be a licensee? Person acting as a property manager Licensed attorney conveying real estate for an estate he or she represents Resident apartment manager working for an owner if the manager's primary residence is the apartment building being managed Partnership selling a building owned by the partners

Escrowee Typically a title company will conduct the COE.

In Nevada, who is responsible prior to closing for calculating the pro-rations between the buyer and seller, ordering a preliminary title report, and preparing the purchase money mortgage note and trust deed

comparable price Market value is the "most probable" a property will bring in a competitive market.

Market value is most closely related to:

A signed current Nevada Consent to Act form

Of the following, which is not required in assigned agency: A signed current Nevada Duties Owed form A duty of confidentiality to the client A signed current Nevada consent to Act form A duty to disclose all material facts concerning the property and transaction to a client.

a salesperson to set up a one-shareholder corporation or one-member LLC to associate with a broker The licensee may incorporate themselves for tax purposes. Nevada licensees may be the only stock holders.

Regarding a salesperson setting up a corporation or LLC, NRS 645 allows No salesperson to be the licensee for a corporation or LLC Only broker-salespersons to be the licensees for a corporation or LLC. A salesperson to set up a one-shareholder corporation or one-member LLC to associate with a broker A salesperson to be a corporation or LLC only if all shareholders or members are licensed.

must have an office in Nevada. A Nevada broker must maintain an office and keep all records in Nevada.

Regarding an office location, an active broker in Reno, Nevada. must have an office in Nevada. May not have an office in his or her home. May not be further regulated or licensed by the city of Reno where the office is located. Must not have his or her office in conjunction with another business he or she operates.

No specific termination date An exclusive agency agreement must have a specific termination date.

Regarding exclusive-listing agreements in Nevada, which of the following could result in the suspension or revocation of a licensee's license to practice real estate? A specified commission rate No specific termination date No broker protection clause A specific termination date

may set up transaction files and assist in the closing process. If not licensed, an assistant may perform clerical duties but not duties of a licensee.

Regarding licensing and duties of personal real estate assistants in Nevada, they Must be licensed. May set up transaction files and assist in the closing process. May independently host open houses and home show booths. Must be unlicensed individuals; licensees must be either salespeople or associate brokers.

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.

Regarding the location of transaction records, a broker May keep the records out of state. Must notify the division within ten days after moving the records to another location Must notify the division before moving records to a new location. May not ever move the records

Principle of regression

States that the value of a superior property will be worth less because of the presence of lower-valued properties nearby

Principle of progression

States that the value of an inferior property will be worth more because of the presence of greater-valued properties nearby

136. 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. A) has not yet properly disclosed his or her agency relationship B) has properly disclosed his or her agency relationship with the seller C) is in violation of Nevada law, because the listing belongs to the broker D) has created a dual agency, which is a violation of Nevada law

a

$ 100,00

The maximum amount that can be collected from NVERRF regarding any one Nevada licensees action is

Appurtenant

Transferred with the land - example stock in a mutual water company

there is a member who meets the qualifications of a real estate broker. One of the members must be a Nevada broker.

Under Nevada licensing law, a partnership. association, or corporation will be granted a license only if There is a member who meets the qualifications of a real estate broker. Every member and officer actively participating in the brokerage business has a broker's license. All papers are filed with the secretary of state. The brokerage business has paid a one-time fee to the real estate education, research, and recovery fund.

Yes, because a salesperson may not receive an undisclosed referral fee from anyone other than his or her employing broker The referral fee must be disclosed and paid through the broker.

Under the terms of a sales contract, a seller is required to provide a termite certificate. The seller requests that the salesperson order one. The salesperson does so, knowing she will receive a referral fee from the pest control company. Is this a violation of the license law? No, if the fee is less than $25 No, because undisclosed referral fees are not in violation of the law Yes, because a salesperson may not receive an undisclosed referral fee from anyone other than his or her employing broker Yes, because only the seller may pay special fees to a salesperson

place advertisements in the local newspapers at least three times per week. The advertising will be negotiated between client and broker.

Upon obtaining a listing, a broker or licensed salesperson is obligated to do all of the following except: Set up a listing file and issue it a number in compliance with specific guidelines established by the Nevada Real Estate Commission Place advertisements in the local newspapers at least three times per week. Cooperate with every real estate office wishing to participate in the marketing of the listed property whether or not they are members of MLS. Give the person or persons signing the Listing a legible, signed, true, and correct copy at the time of signing or as soon as practicable thereafter.

May not hold funds unless all parties agree in writing -A broker is not required to have a trust account

Upon receiving an earnest money deposit, a Nevada Broker: A. Must deposit the money into a Nevada trust account B. May not hold the funds unless all parties agree in writing C. May hold the check un-cashed, if told to do so by the buyer. D. May deposit the funds into a personal account so long as the deposit is designated as funds held in a trust

-Nv. Broker -Owner Development -Project Broker -Unit Broker

What are the different types of broker?

They must show sufficient assets or income to maintain an office for 180 days

What are the financial requirements for a Nevada Broker

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

What are the three types of agency recognized in Nevada?

VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan.

What is a VA loan?

Typically an FHA loan (Federal Housing Administration) is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan.

What is an FHA loan?

Deposit is ALWAYS refundable

What is refundable ? Earnest money or a deposit

24 hours

What is the NVCE required for a renewal of a Nevada Broker who has had their license for four years?

Two years out of the last four years An agent must have two of the previous four years full time experience from any state as a licensed agent to be a broker or branch manager.

What is the active experience requirement for Jennings to become a broker or a branch manager as managing broker-salesperson? Two years Two years out of the last four years Two years out of the last three years Three years

106. In order to receive an exemption to registration for a large lot subdivision, every lot or unit must be A) at least 80 acres in size B) at least 80 acres net of easements in size C) more than 80 acres net of easements D) at least 15 acres net of easements

c

An exclusive listing is a real estate sale agreement in which a specified real estate agent stands to gain a commission if a property sells within a specified number of months. In most cases, the agent earns the commission no matter how a buyer is found. The purpose of an exclusive listing is to motivate the agent to sell the property quickly and at the highest price possible. If a homeowner signed an exclusive listing agreement with an agent, and the homeowner also placed an ad for the property, the agent could still earn a commission even if the buyer acted upon the ad. The agent would not earn a commission if the seller who placed the ad also established exclusive agency (the right of the seller to sell the property themselves without paying commission despite the exclusive listing agreement).

What is the definition of exclusive listing?

Owner developers get a REGISTRATION Cooperating broker get a CERTIFICATE

What is the difference between O.D. and a cooperating broker?

150 per DAY for the NVREC

What is the pay of NVREC

Three years

What is the term of service for a real estate commissioner?

both parties as soon as practicable, but no later than the offer and acceptance Both parties as soon as practicable, but not later than the offer and acceptance.

When a broker represents a seller of real estate, the Duties Owed by a Nevada Real Estate Licensee Form must be given to the Seller at the beginning of the first personal meeting with the seller concerning the real estate Seller as soon as practicable Purchaser before the purchase and sale contract is signed. Both parties as soon as practicable, but no later than the offer and acceptance

Licensees have up to 30 days to affiliate with another broker or their licenses will be inactivated. The agent's licenses will be sent back to the RED. The agents will have 30 days to affiliate with a new broker or become inactive.

When a broker, acting as a sole proprietor, has his or her license suspended for two years, what effect does this have on the broker-salesperson and the salespeople affiliated with the broker? Licenses will be revoked, subject to reinstatement after one year. Licensees will also be suspended for a two-year period. Suspension has no effect on the licensees. Licensees have up to 30 days to affiliate with another broker or their licenses will be inactivated.

VA buyers

When a home is purchased through the California Veterans Farm and Home Purchase Plan, the state purchases and holds legal title to the property, and sells the property to the veteran through a land contract. The veteran will receive a Certificate of Eligibility when they qualify. No discount fees or secondary loans are allowed.

Before reinstatement of the NV license, the sum paid out must be replayed +2% over prime interest rate

When a judgment against a Nevada license he is paid by NVERRF: Before reinstatement of the Nevada license, the sum paid out must be repaid +2% over the prime interest rate Before reinstatement of the Nevada license, the sum paid out must be repaid +6% interest All rights of the claimant must be subrogated by the Nevada Attorney General The Nevada license is automatically rebooked

the division must be notified within ten days 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.

When a licensed broker changes his or her place of business A new license will be issued by the board immediately The division must be notified within ten days A new license will be issued for a full term The new address must be approved by the commission

Anyone as long as it is in writing

When a seller rejects a written offer on his Nevada real property, providing there are Nevada licensees involved, whose responsibility is to notify the buyer?

functional obsolescence Functional would include a design problem.

When an appraiser adjusts the estimate of a home's value because of a poor floor plan, the adjustment is made because of:

Equity purchase

When an owner occupied 1-4 unit property in foreclosure if acquired by an investor. Seller has right of 5 business days to cancel or 2 years rescission period if can demonstrate investor took unconscionable advantage.

Gross adjustment

When completing sales comparison approach appraisal it is the sum (whether negative or positive, all are considered +) of all adjustments

On the last day of the month in which the license was issued On the last day of the month in which the license was issued

When do real estate salespersons' licenses expire in Nevada?

cost of the building next door The income approach would only consider the specific financial data of the subject property

When evaluating an income producing real property, an appraiser must take into consideration all of the following EXCEPT the: Correct capitalization rate Cost of the building next door Net operating income of the real property Vacancy and bad debt rates

licensee must repay the full amount plus interest to the account if his or her license is to be reinstated. The licensee will be suspended for a minimum of one year and must repay the fund plus interest of 2% over prime.

Whenever the Nevada Real Estate Division is required to satisfy a claim against a licensee with money from the real estate education, research, and recovery fund, the Licensee may continue engaging in real estate activities under the commission's direct supervision. Licensee must repay the full amount plus interest to the account if his or her license is to be reinstated. Aggrieved party may later collect additional damages by forcing the sale of any property newly acquired by the defendant licensee. Licensee must thereafter pay $25 per year into the account when applying to renew his or her license.

Transaction Broker It is not recognized in NV. All other agencies you are representing the clients, this agency you are representing the transaction. This removes vicarious liability.

Which Agency is not recognized in Nevada? Single Assign L.A.F.B. Transaction Broker

The NVREC must approve all regulations

Which is a true statement regarding NRS/NAC 645 regulations? The NVREC must approve all regulations The NVRED administrator must adopt regulation without NVREC approval The NVRED, at its option, may publish the regulations and sell the publications to interested parties The Nevada attorney general must approve all regulations

Standing in the hallway outside the testing room and offering employment to new licensees as soon as they receive their passing score at the testing center Actions of a licensee must not be deceptive, discriminatory, and always have the client's approval.

Which of the following actions is legal and NOT a violation of license law? Encouraging a seller to reject an offer because the prospective buyer is a Methodist Placing a For Sale sign in front of a house without asking the seller's permission Advertising that individuals who attend a promotional presentation will receive a prize without mentioning that they will also have to take a day trip to a new subdivision site Standing in the hallway outside the testing room and offering employment to new licensees as soon as they receive their passing score at the testing center

Transact Nevada real estate for compensation

Which of the following acts is in active Nevada broker sales person allowed to do? Manage in Nevada branch office after taking a management course and having one year of real estate experience Receive fees directly from a Nevada principal Transact Nevada real estate for compensation Transact Nevada real estate as an employing Nevada broker

A. Full-time licensee for two of the four years preceding.

Which of the following are requirements with respect to managing Nevada principal or branch office by a Nevada Broker - Salesperson ? A. Full-time licensee for over two of the four years preceding. B. Full-time active brokerage experience for two of the four years preceding. C. Full-time active experience for two of the three years preceding D. Full-time status, meaning thirty hours per week for the past 18 months

Successful completion of a course of 90 classroom, correspondence, or distance learning hours in real estate principles, practices, procedures, law, and ethics The education requirement for a salesperson's license is 45 hours real estate principles and 45 hours real estate law.

Which of the following is a requirement to obtain a real estate salesperson's license in Nevada? Successful completion of 2 1 credit hours of real estate law, finance, and appraisal An associate degree or certificate in real estate from an accredited college, university, or proprietary school United States and Nevada citizenship Successful completion of a course of 90 classroom, correspondence, or distance learning hours in real estate principles, practices, procedures, law, and ethics

Post a minimum of $25,000 bond The intermediary does not need to be licensed.

Which of the following is a requirement to obtain a registration as a qualified intermediary? Have a college degree in finance Pass an examination Post a minimum of $25,000 bond Hold a broker's license

Advertised gift must be awarded only if the purchase is made

Which of the following is not true regarding a promotional meeting? Shrills are not allowed Advertised gifts must be awarded only if the purchase is made Generally, the set standards for an NRS 119A are the same as those of NRS 119 Surveillance is permitted

Must describe the service and fee fully

Which of the following is requird under NAC 645.675 in an advance fee agreement? A. must be written on an approved form b. Must state NV Brokers guarantee of results of services c. must describe the service and fee fully d. need to be in writing if less than $30.00

The assistant is not required to have a Nevada Real Estate License

Which of the following is true regarding the personal assistant retained by a Nevada Real Estate Broker: The assistant must have a Nevada Real Estate license The assistance is not required to have a Nevada Real Estate License The assistant is exempt from NRS and NAC 645 as an employee of a broker The assistant is required to obtain a permit to practice under the Nevada Broker

Person who negotiates the sales of entire businesses, including their stock equipment and buildings, for a promised fee A person who sells an entire business will need a real estate license and a business broker permit

Which of the following persons must have a real estate license in order to transact business? Person who owns a six-plex and personally manages the building, collects rents, and shows the apartments to prospective tenants Person who negotiates the sales of entire businesses, including their stock equipment and buildings, for a promised fee Superintendent of a large apartment building who shows apartments to prospective tenants as part of his or her regular duties Person who has his or her parents' written power of attorney to negotiate the sale of the parents' residence

The resident owner of the property being sold or leased

Which of the following requires a Nevada real estate license? A trustee for a bankruptcy or any person acting under a court order The receptionist at the Nevada real estate office The resident owner of the property being sold or leased Someone selling timeshares in Nevada

Company that for a fee (not a commission), matches individuals from different parts of the country who want to exchange properties and that assists them in doing so The other choices are exempt from licensing.

Which of the following requires a real estate license? Resident manager who collects rent on behalf of a building owner Company that for a fee (not a commission), matches individuals from different parts of the country who want to exchange properties and that assists them in doing so Lenders selling their own property Executor selling a decedent's building

Major improvement costs are added to the basis The basis is the cost of the property plus any capitol improvements less the depreciation equals adjusted basis. Capital gain is the difference between the adjusted basis and its net selling price.

Which of the following statements about owning investment real property is correct? Accrued depreciation increases the property basis Gain is not taxed until death Cost of improvements is used to reduce basis Major improvement costs are added to the basis

The salesperson is liable for their own conduct.

Which of the following statements is true regarding a Nevada Real Estate Salesperson: A. The salesperson is not liable for their own conduct; only the broker is liable. b. the salesperson is liable for their own conduct c. the salesperson is only liable for their own conduct if retained as an independent contractor d. the salesperson is only liable for their own conduct is classified as an employee

151. Which of the following requires a real estate license? A) resident manager who collects rent on behalf of a building owner B) company that, for a fee (not a commission), matches individuals from different parts of the country who want to exchange properties and that assists them in doing so C) lenders selling their own property D) executor selling a decedent's building

b

Alquist-Priolo Special Studies Zones

Zoning act designed to control the development in a 1/4 mile vicinity of hazardous earthquake faults for the benefit of public safety. Does not apply to developments or structures in existence prior to May 4, 1975.

1. What is the minimum balance of the real estate education, research, and recovery fund? A) $300,000. B) $100,000. C) $250,000. D) $500,000.

a

101. An owner developer may register with the division for developing five or more of the following spaces except A) retail spaces for lease B) condominiums C) townhouses D) single family residences

a

103. A qualified intermediary handles A) delayed 1031 tax deferred exchanges B) homeowners association disputes C) the resolution of inequities in taxation D) federal fair housing complaints

a

113. A 500-acre parcel is divided into 20-acre lots. This subdivision A) is exempt from registration B) is partially exempt but still must register C) must register D) must register unless it is free and clear

a

114. Clark, a licensed broker, procures a ready, willing, and able buyer for his seller principal. The seller accepts the buyer's offer in writing then experiences a change of heart and withdraws the acceptance. In this situation, Clark A) may well be entitled to collect a commission B) cannot collect a commission because the transaction was never completed C) may sue the buyer D) may retain the deposit as commission

a

121. Buyer brokerage contracts in Nevada A) must be in writing to be exclusive B) must be on specific forms C) are not regulated under the license law D) are illegal

a

126. When must a seller's Real Property Disclosure Form be delivered to the buyer? A) ten days before the closing unless waived in writing and notarized B) at the time that the seller agrees to the offer C) at the time of the home inspection D) at the time of closing

a

132. Six months after a buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker says that the buyer never asked about the roof. Under these facts, the buyer A) can sue the broker for non-disclosure, as disclosure is required by license law B) cannot sue the broker under license law C) can sue the seller under license law D) cannot do anything because the leaking roof could have been discovered by inspection

a

189. After proper investigation, a payment is made from the Real estate Education, Research, and Recovery Fund owing to the improper activities of a licensee. What happens when the payment is made? A) the license is automatically suspended B) the division takes no further action if the licensee repays the fund within 30 days C) licensee's license is automatically revoked D) licensee is subject to an automatic fine of $5,000

a

141. A buyer is interested in seeing a house listed with ABC Realty but does not wish to enter into an agency agreement. A salesperson from HIJ Realty can show the buyer the house if A) HIJ realty provides to the buyer the Duties Owed by a Nevada Real Estate Licensee Form prior to signing a contract B) ABC Realty obtains HIJ Realty's consent to sub-agency, and the buyer is given an agency disclosure notice, stating that ABC Realty represents the seller C) the buyer a t least verbally agrees to buyer agency D) this cannot occur

a

144. A buyer who is a client of a broker wants to purchase a house that the brokerage has listed for sale. Which of the following statements is true? A) if the listing salesperson and selling salesperson are two different people, they may act as assigned agents B) the broker must refer the buyer to another brokerage to negotiate the sale C) the only option for representation is that the seller and buyer must be informed of the situation and agree to the broker's representing both of them D) the buyer should not have been shown a house listed by the broker

a

147. How are members of the real estate commission selected? A) by the governor B) public election C) by the state association of Realtors D) elected by real estate licensees

a

148. The real estate commission has the authority to A) adopt regulations by which all real estate licensees must abide B) compose the examination questions on the state exam C) administer the exams given at the testing sites D) enact the laws that govern real estate licensees

a

150. In NV, which of the following would need to be a licensee? A) person acting as a property manager B) licensed attorney conveying real estate for an estate he or she represents C) resident apartment manager working for an owner if the manager's primary residence is the apartment building being managed D) partnership selling a building owned by the partners

a

152. Under NV law, any person who acts as an executor of an estate A) need not be licensed as a real estate broker. B) must have his or her court appointment endorsed by the real estate commission C) must register and be approved by the Nevada Real Estate Division D) must have a special endorsement by HUD

a

153. Under NV licensing law, a partnership, association, or corporation will be granted a license only if A) there is a member who meets the qualifications of a real estate broker B) every member and officer actively participating in the brokerage business has a broker's license C) all papers are filed with the secretary of state D) brokerage business has paid a onetime fee to the real estate education, research, and recovery fund

a

154. A real estate license is required for all of the following activities except A) managing real estate as an employee for an owner B) reselling a mobile home and land C) selling real estate D) collecting rent for multiple clients

a

155. If engaged in real estate activity, which of the following are exempt from the real estate licensing requirement? A) attorneys at law within their scope of practice B) property managers C) associations, partnerships, and corporations engaging in the real estate business D) corporate employees who receive bonuses for their work in buying or selling corporate properties

a

157. In NV, applications for any real estate license must A) be completed after taking the written exam B) contain a certified picture of the applicant C) be made before May 31 of each year D) be accompanied by a sworn statement attesting to the applicant's character

a

160. Commissions earned by a broker in a real estate sales transaction A) are determined by agreement of the broker and his or her principal B) may be shared with an unlicensed person, provided that such person aided the broker in bringing the buyer and seller together C) may be deducted from the earnest money deposit and claimed by the broker as soon as the buyer and seller execute the purchase and sales agreement D) are based on a schedule of commission rates set by the Nevada Real estate Commission.

a

165. A licensee who allows his or her license to expire has how long to reinstate the license without monetary penalty? A) there is no free time B) up to 30 days C) no more than 365 days D) one year from the last June 23

a

171. If a person obtains a NV cooperative certificate, he or she must A) be licensed as a broker and reside in another state B) establish a principal place of business in NV or be licensed under a resident Nevada broker C) take all education course requirements in NV D) file an irrevocable consent agreement with the commission

a

174. All of the following statements regarding the Nevada Real Estate Commission are true except that A) members of the commission are selected by the state association of Realtors B) the commission makes and enforces the regulations (NAC 645) by which all real estate licensees must abide C) the examinations that must be taken by all applicants for real estate licensing are administered by an independent testing company D) the president of the commission, elected from the commission members and serves a term of one year, administers the operation of the commission's activities

a

177. An individual wants to sell her own house. Which of the following statements is true? A) she does not need a real estate license to sell her house herself B) in NV, anyone who sells real property first must have a real estate license issued by the Nevada Real Estate Division C) the individual may obtain a temporary real estate license in order to legally sell her house D) she may sell her house without obtaining a real estate license only if she is a licensed attorney

a

180. If a broker establishes an account to hold money belonging to others, which is correct? A) the account must be designated as a trust account B) accounts may be labeled either trust or general account C) the account cannot be in the same checking account D) an individual account is required for each transaction

a

185. An individual wants to sell her own house with no agent. The individual A) is required to supply a copy of the Seller's Real Property Disclosure Form B) is exempt from having to fill out a seller's Real Property Disclosure Form since she isn't using a real estate agent C) may have someone else complete the form for her D) may always sell her house by herself without supplying a seller's Real Property Disclosure Form

a

31. A housing discrimination charge must be filed with the NV Real Estate Division within A) 6 month B) 3 years C) 2 years D) 30 days

b

191. A broker violates the license law, which results in monetary damages to a consumer. What is the latest date on which the injured party may file a request for payment from the Real Estate Education, Research, and Recovery Fund? A) one year after receiving the judgment B) two years after the alleged violation occurred C) three years after the alleged violation occurred D) three years after the date on which a professional relationship of trust and accountability commenced

a

205. A developer may not make a material change in any time-share plan without giving the Division notice in writing A) at least ten (10) days prior of the intended change B) at least twenty (20) days prior of the intended change C) at least thirty (30) days prior of the intended change D) at least forty-five (45) days prior of the intended change

a

22. A broker has developed a web site advertising the broker's office. What, if anything, does the broker need to include? A) name of the brokerage B) license number of brokerage and list of current active licensees C) name of active licensees, addresses, and phone numbers D) there is no need for any additional disclosures

a

23. A salesperson has developed a web site on the internet. What, if anything, must the salesperson include? A) name of the brokerage that holds the salesperson's license B) name of the home office of the company that holds the salesperson's license and a list of states in which the company is licensed C) names of all the licensees in the broker's office and the states in which they are licensed D) there is no need for additional disclosures

a

29. A salesperson engaged in activities that constitute violations of the NRS 645, including blockbusting and discrimination on the basis of disability. The salesperson also cashed a $25,000. earnest money checks from a prospective buyer and used the proceeds to buy a new car. The salesperson's employing broker was unaware of all of these activities. What is the impact on the salesperson's broker when the salesperson's violations are brought to the attention of the real estate commission? A) the employing broker may be disciplined by the real estate commission for failure to supervise B) the salesperson's employing broker will be required to pay any fine imposed against the salesperson out of his or her own personal funds C) the salesperson's actions are legally the responsibility of the employing broker, who will be subject to the same disciplinary action as the salesperson, regardless of whether or not he or she knew the violations had occurred D) the salesperson's employing broker will be held liable for the fair housing act violations only

a

35. A licensed salesperson may hold concurrent licenses with more than one NV broker under which of the following circumstances? A) under no circumstances B) with the permission of his or her sales manager C) with the written consent of the brokers holding the licenses D) with the permission of the real estate commission

a

41. In any real estate sales transaction that a broker negotiates, the broker is required to do all the following except A) inform the buyer of his or her personal opinion of the condition of the seller's title to the property B) make sure that the written purchase and sales agreement includes all the terms of the parties agreement C) make sure that each party is presented with a copy of the agreement D) keep copies of all documents involved in the transaction in his or her files for five years after the date the transaction was closed

a

49. How is broker's commission determined in a real estate sales transaction? A) it must be stated in the listing agreement and is negotiated between the broker and seller B) it is determined according to the standard rates set by agreement of local real estate brokers C) if under dispute, it will be determined through arbitration by the NV Real Estate Commission D) it must be paid with cash or a cashier's check upon closing

a

50. A broker wants to list a property but is getting a lot of competition from other brokers who also would like to list it. The broker offers the seller the following inducement to sign his listing agreement. "I'll buy your property if it doesn't sell in 90 days." With this advertising, the broker must do all of the following except A) buy the property at the agreed figure at any time during the 90 days B) market the property as if no special agreement existed C) show the seller evidence of the broker's financial ability to buy the property D) show the seller written details of the plan before any contract of guaranty is signed

a

53. In NV, the age of legal competence is A) 18 B) 19 C) 20 D) 21

a

57. A prospective buyer has inspected a parcel in a subdivision registered under NRS 119. He has decided to purchase the parcel, receives the property report, and signs the contract. The prospective buyer has second thoughts the next day. Can he rescind the contract? A) Yes, because a buyer has five days to rescind the contract no matter what the reason B) Yes, because escrow has not closed C) No, because the buyer has already signed the contract D) No, because the buyer got the property report

a

59. Regarding promotional meetings, A) division employees may attend them B) recording devices are prohibited C) oral statements may enhance and expand upon written advertising D) shills (false buyers hired by the developer) are allowed to attend

a

70. A California broker wishes to help her brother in law, a NV broker, find California buyers for the NV broker's resort area listings in Lake Tahoe (NV side only). All of the following are true regarding a cooperative certificate issued to the California broker except that A) the certificate is valid for two years B) only the California broker may obtain a cooperative certificate; her corporation may not C) the NV broker may cooperate with several out of state brokers D) the CA broker may not sell land in NV to a NV resident

a

74. Once a Seller's Real Property Disclosure Form has been delivered to the buyer, the buyer has what period of time to rescind based on the report? A) 4 working days B) 5 calendar days C) 10 days D) until the items are all repaired

a

86. All of the following could disqualify an applicant from receiving a license except A) having been arrested for embezzlement B) being delinquent in child support obligations C) having had his or her license suspended, but not revoked in Arizona four years ago D) having pled guilty to engaging in the real estate business without a real estate license

a

87. What is the active experience requirement for Jennings to become a broker or a branch manager a managing broker-salesperson? A) two years B) two years out of the last four years C) two years out of the last three years D) three years

b

Transfer Disclosure Statement

a form that notifies buyers of any physical defects to a property and requires the seller ad the agent to list any evidence of defects of which they are aware. Also identifies fixtures, and whether they are operational. A buyer has 2 years to sue for non-disclosures. Agent can never legally complete the entire TDS. Buyer has right to cancel transaction after receiving 3 days after receiving by hand or 5 days after receiving by mail).

A borrower has the right to cancel within 3 days of a contract on

a junior lien

Power of attorney

a legal document authorizing someone to act on your behalf. The person is called an Attorney in Fact

Will

a legal document declaring a person's wishes regarding the disposal of their property when they die

Title

a legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it

Estate in reversion

a life estate that comes back to the original grantor.

Estate in remainder

a life estate that goes to a third party

Exclusive right to sell

a listing that gives the broker the right to collect a commission no matter who sells the property during the listing period.

Recourse loan vs nonrecourse loan

a loan that gives the creditors the recourse to come after the limited partners for a certain amount of debt if the partnership can't pay them vs creditors not being able to go after buyers for not paying debt back. Nonrecourse loans = purchase money loans

Conventional loan

a loan that is not insured or guaranteed by a gov. source

Adverse Possession

a method of acquiring title to real property by possession for a statutory period under certain conditions, especially a non-permissive use of the land with a claim of right when that use is continuous, exclusive, hostile, open, and notorious

the next business day

a nevada salesperson who recieves money from a client must turn the money over to their Nevada Broker:

A Nevada District Attorney

a non- licensee who is suspected of committing any acts requiring a Nevada real estate license under NRS 645 is prosecuted by: A Nevada District Attorney the NVREC the Board of REALTORS The Nevada Attorney General

Leasehold

a personal property right in real property

Manufactured homes

a real estate agent can sell a manufactured home if it has been registered with the Department of Housing and Community development and is transferred with a certificate of title

Easement

a right held by one property owner to make use of the land of another for a limited purpose

Easement

a right to cross or otherwise use someone else's land for a specified purpose.

Estoppel

a rule of evidence whereby a person is barred from denying the truth of a fact that has already been settled (e.g. principal denying who his agent is). The doctrine of estoppel says that actions must be consistent. If Jackson knows that Sullivan is relying on the verbal contract, it is not consistent for him to allow the substantial improvements. Jackson has to sell if Sullivan wants to buy

Escrow

a written agreement (or property or money) delivered to a third party or put in trust by one party to a contract to be returned after fulfillment of some condition

Trust deed

a written instrument legally conveying property to a trustee often used to secure an obligation such as a mortgage or promissory note. What we use in CA

Promissory Note

a written promise to pay a specified amount of money on demand or at a definite time. Example: personal check

An annual expense is $1,850. Using a 365-day year, what is the per diem rate? a. $5.07 b. $5.14 c. $6.75 d. $59.68

a. $5.07

The Hutchinsons own a house that is currently appraised at $545,000. They owe $397,000 on the deed of trust and would have $65,000 in selling expenses. What is their net equity in the property? a. $83,000 b. $148,000 c. $213,000 d. $480,000

a. $83,000

Which of the following forms would an escrow agent use to report the amount realized from a sale of real property to the IRS? a. 1099-S b. 8300 c. HUD-1 d. Uniform settlement statement

a. 1099-S

What will an escrow agent rely on in deciding how to disburse funds? a. Escrow instructions b. Rules spelled out in federal law c. Listing agreement d. Contingency addendum

a. Escrow instructions

Under which type of listing will an agent receive a commission only if he is the procuring cause of the sale? a. Open listing b. Exclusive agency listing c. Exclusive right to sell listing d. Net listing

a. Open listing

129. A salesperson represents a seller in a transaction. When prospective buyers ask to look at the property, the salesperson must A) tell them that they must first enter into a buyer representation agreement with another licensee B) inform them in writing as soon as it is practicable, but no later than signing a contract, that the salesperson represents the seller's interests C) inform them orally that the salesperson represents the seller's interests D) show them the property without making any disclosures about the salesperson's relationship with the seller, because such disclosure would be a violation of the salesperson's fiduciary duties

b

In which of the following cases would a lender be most likely to decide that the loan applicant's employment income does not qualify as stable income? a. The applicant has worked as a machine operator for seven months, after working for an online media company for eight months b. The applicant has worked as an accountant for ten months, after having been in college previously c. The applicant has worked as a junior copywriter for six months, at the same company where she previously was an editorial assistant for two years d. The applicant has been a self-employed landscape contractor for three years

a. The applicant has worked as a machine operator for seven months, after working for an online media company for eight months

A standard homeowner's hazard insurance policy will not cover: a. earthquake b. fire c. vandalism d. frozen plumbing

a. earthquake

The buyer has accepted the transfer disclosure statement, and the inspection contingencies have been fulfilled; but the purchase agreement also has a sale of buyer's property contingency clause. At this stage, the buyer would be entitled to a refund of her good faith deposit in each of the following circumstances, except: a. having learned that many homes in the area have entered foreclosure, the buyer decides the house is not a sound investment, so she withdraws from the transaction b. the sale of the buyer's property collapses during the closing process, through no fault of the buyer c. the seller accepts a second offer and notifies the buyer under a release clause, and the buyer is unable to fulfill or remove the contingency d. the buyer fails to sell her home before the contingency deadline

a. having learned that many homes in the area have entered foreclosure, the buyer decides the house is not a sound investment, so she withdraws from the transaction

The ability to take full advantage of an investment's appreciation without having to invest the full cost of the investment is a result of: a. leverage b. cash flow c. yield d. equity

a. leverage

The types of businesses operated by tenants are usually of greatest concern to a manager of: a. retail property b. office property c. residential property d. industrial property

a. retail property

When an offer is received the only 2 options are

acceptance or rejection by the offeree within the time period (if there is one)

Inverse Condemnation

action initiated by property owner against gov't to recover loss in property value attributed to gov't activity

Quiet title action

action to determine clear title to real estate. Requires a quitclaim deed.

Truth in Advertising

adv must be truthful and non-deceptive; must have evidence to back up their claims; advertisements cannot be unfair

Subagent

agents underneath the principal who is agents for the agents

138. A broker has entered into a listing agreement with a seller. Another broker, who has been working with the buyer, learns of the property through the MLS. Typically the second, cooperating broker would represent A) the seller as a subagent B) the buyer C) the listing broker as a subagent D) neither the buyer not the seller

b

139. When a broker represents a seller of real estate, the Duties Owed by a Nevada Real Estate Licensee Form must be given to the A) seller at the beginning of the first personal meeting with the seller concerning the real estate B) seller as soon as practicable C) purchaser before the purchase and sale contract is signed D) both parties as soon as practicable, but no later than the offer and acceptance

b

139. When a broker represents a seller of real estate, the Duties Owed by a Nevada Real Estate Licensee Form must be given to the A) seller at the beginning of the first personal meeting with the seller concerning the real estate B) seller as soon as practicable C) purchaser before the purchase and sale contract is signed D) both parties as soon as practicable, but no later than the offer and acceptance

b

10. A broker signs a listing agreement with a seller. The agreement contains the following clause: "If the property has not been sold after three months from the date of this signing, this agreement will automatically continue for additional three month periods thereafter until the property is sold." Based on these facts, the agreement A) is legal under NV law, because it contains a reference to a specific time limit B) is illegal in NV C) automatically receives a statutory six month listing period to this open listing in NV D) is legal under NV law, because the list periods are for less than six months each

b

102. An owner developer may employ all of the following except A) a licensed salesperson B) a licensed broker C) a licensed broker salesperson D) unlicensed hostesses

b

107. A developer under NRS 119 wants to change a few words in the sales contract. Which of the following is correct? A) minor changes to contracts need not be approved. B) the changes must be approved by the division prior to use C) the changes must be approved by the attorney general prior to use D) after making the minor change, the contract may be used pending division approval within ten days

b

11. Regarding exclusive listing agreements in NV, which of the following could result in the suspension or revocation of a licensee's license to practice real estate? A) a specified commission rate B) no specific termination date C) no broker protection clause D) a specific termination date

b

112. The definition of campground membership is used in a private campground for more than A) 15 days in a year B) 30 days in a year C) 45 days in a year D) 2 months in a year

b

116. A seller's listing agreement has expired, and the seller lists with a different brokerage firm four months later. Jim, the original listing agent, now has a buyer interested in the seller's property. Based on this information, Jim A) is a dual agent B) cannot disclose to the buyer offers received on the seller's property while it was listed with him without the seller's consent C) cannot disclose to the buyer information about the physical condition of the property D) cannot represent the buyer

b

122. All of the following provisions are included in the Nevada Real Estate Commission's regulations regarding listing agreements except that A) an exclusive listing agreement must state the termination date B) a listing agreement must be accompanied by a qualified expert's report of the property's condition C) an exclusive listing agreement must be in writing and signed by both the broker (or an authorized agent) and the seller D) the seller must receive a true copy of the listing agreement upon signing it (or a reasonable time thereafter

b

127. A seller has no knowledge of any plumbing system problems in the property she is selling. In actuality, however, the pipes are seriously corroded and will need to be replaced soon. In the Seller's Real Property Disclosure Form, when responding to whether the seller has any knowledge of plumbing system problems, she should respond A) yes B) no C) unknown D) the seller is not required to respond to this question

b

14. In the state of Nevada, a broker may have his license suspended or revoked for all of the following actions except. A) failing to keep adequate records B) depositing earnest money into the firm's trust account C) helping another person cheat on the licensing examination D) displaying a "for sale" sign on a property without the owner's consent

b

161. Which of the following persons must have a real estate license in order to transact business? A) person who owns a six plex and personally manages the building, collects rents, and shows the apartments to prospective tenants B) person who negotiates the sales of entire businesses, including their stock equipment and buildings, for a promised fee C) superintendent of a large apartment building who shows apartments to prospective tenants as part of his or her regular duties D) person who has his or her parents, written power of attorney to negotiate the sale of the parents' residence

b

169. Regarding licensing and duties of personal real estate assistants in NV, they A) must be licensed B) may setup transaction files and assist in the closing process C) may independently host open houses and home show booths D) must be unlicensed individuals; licensees must be either salespeople or associate brokers

b

172. A nonresident license applicant must file with the Nevada Real Estate Division a A) certificate of specific performance B) consent to service of process C) copy of his or her birth certificate D) corpus delicti

b

173. What is the term of service for a real estate commissioner? A) two years B) three years C) six years D) a real estate commissioner is appointed for life

b

176. All of the following are exempt from the provisions of the NRS 645 except a (n) A) property owner who sells or leases his or her own property B) individual who receives compensation for procuring prospective buyers or renters of real estate C) individual who is employed as a resident property manager D) executor of an estate

b

188. A sales contract is signed on May 1. Closing takes place on June 10, and the deed of trust is recorded on June 15. the borrower's first payment is due on August 30. When is the soonest that the broker receive his or her commission check? A) May 1 B) June 10 C) June 15 D) August 30

b

192. The purpose of the Real Estate Education, Research, and Recovery Fund is to A) ensure that Nevada real estate licensees have adequate funds available to pay their licensing and continuing education fees B) provide a means of compensation for actual damages suffered by individuals as a result of the acts of a licensee in violation the license law or committing other illegal acts related to a real estate transaction C) protect the real estate commission from claims by individuals that they have suffered a monetary loss as the result of the action of a licensee in violation the license law or committing other illegal acts related to a real estate transaction D) provide an interest generating source of revenue to fund the activities of the real estate commission

b

193. Who may receive compensation from the Real Estate Education, Research, and Recovery Fund? A) broker who does not receive an earned commission B) seller who pays a commission to a broker under false pretenses C) buyer who pays a fee to a broker under a buyer agency agreement D) cooperating broker who does not receive a commission split

b

194. The maximum compensation that will be paid from the Real Estate Education, Research, and Recovery Fund for any licensee is A) $10,000 B) $100,000 C) $25,000 D) $50,000

b

195. Whenever the Nevada Real Estate Division is required to satisfy a claim against a licensee with money from the Real Estate Education, Research, and Recovery Fund, the A) licensee may continue engaging in real estate activities under the commission's direct supervision B) licensee must repay the full amount plus interest to the account if his or her license is to be reinstated C) aggrieved party may later collect additional damages by forcing the sale of any property newly acquired by the defendant licensee D) licensee must thereafter pay $25 per year into the account when applying to renew his or her license

b

196. A broker commits a fraudulent act in connection with the sale of a property on March 15, 2013. On March 30, the transaction closes. On November 1, the client sues the broker, alleging fraud. On December 20, the jury finds in favor of the client and the broker does not appeal. When must the client file a claim with the real estate commission to recover money from the Real Estate Education, Research, and Recovery Fund? A) the request must be filed within 30 days following the illegal activity; in this case, by April 15, 2013 B) within one year after having been awarded a judgment by the court; in this case, by December 20, 2014 C) within one year of filing suit; in this case, by November 1, 2014 D) within two years of the date of closing; in this case, by March 30, 2015

b

2. How long after the signing of a contract for the purchase of a lot in NV or anywhere else may the purchaser cancel the transaction? A) 24 hours B) within five calendar days C) five business days D) or one week

b

200. Who owns a listing? A) seller B) broker C) listing agent D) seller and listing agent

b

202. If a licensee owns an interest in a time-share which he is attempting to sell A) he may disclose this fact orally to a prospective purchaser B) he must disclose his interest and the fact he is a licensee in writing to a prospective purchaser C) he does not have to disclose that he is a licensee D) none of the above

b

204. The smallest saleable portion of a subdivision under Land Sales is called a A) lot B) unit C) parcel D) acreage

b

21. A real estate salesperson decides to sell his or her own property without using a broker. When advertising the property, the salesperson A) must disclose the name, address, and phone number of his or her employing broker B) must disclose the fact that he or she is a real estate licensee C) does not need to disclose licensed status if acting as a private citizen D) the salesperson is prohibited from selling his or her own home in this manner by license law

b

25. Listings based on a "net price" are A) always advisable B) legal in NV as long as the seller agrees C) illegal in NV at anytime D) permissible with approval of the commission

b

28. A seller listed her house for sale with a broker on February 1. The listing agreement was to last five months. In April, the seller decided that the house was no longer for sale. Which of the following statements is true? A) the seller has canceled the agreement, and there are no penalties B) the seller has withdrawn the broker's authority to sell the property and may be subject to liability C) the seller is required by law to leave her house on the market until June D) the NV real estate commission will decide if the seller's action is justifiable

b

32. If a buyer wants to have a clause included in the sales contract under which the seller offers assurances against the existence of werewolves, vampires, and trolls on the property, which of the following statements is true in NV? A) the broker should consult a law manual for proper wording and may include the clause, because such standard supernatural disclosures are in general usage B) the broker should urge the client to contact a licensed attorney to prepare the clause for inclusion in the sales contract C) in NV, brokers are permitted to add additional clauses to blank form contracts, such as the clause described here, that do not directly involve the conveyance of title to real property D) under NV law, a frivolous clause, such as the one described here, is not permitted and any contract containing such a clause will be invalid

b

33. A NV real estate salesperson may lawfully collect compensation from A) either a buyer or a seller B) his or her employing broker only C) any party to the transaction or the party's representative D) a licensed real estate broker only

b

34. What are the procedures that a salesperson must follow when the salesperson decides to terminate his or her affiliation with the employing broker? A) give the broker an official letter of termination that he or she can send to the NV real estate division B) nothing, the broker is responsible for notifying the NV Real Estate Division of the change C) return all customer cards to the employing broker D) return his or her license, along with a letter of termination, to the real estate commission

b

40. When a licensed broker changes his or her place of business A) a new license will be issued by the board immediately B) the division must be notified within ten days C) a new license will be issued for a full term D) the new address must be approved by the commission

b

43. Every NV real estate office is required to A) maintain escrow account records for five years B) keep transaction records for five years C) keep transaction records for three years D) keep transaction records for eight years

b

47. A broker is convicted on May 1 of a felony of possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the NV Real Estate Division and leaves a message informing the real estate division of the conviction. Based on these facts, which of the following is true? A) the broker has properly informed the real estate division within 60 days after the conviction, and the broker's license may be renewed B) the conviction may cause further investigation by the division with a possible complaint filed with the commission C) because the conviction did not occur in state, it is not evidence of unworthy conduct D) the conviction is grounds for immediate revocation of a license without a commission hearing

b

5. A NV salesperson's license was issued November 3, 2015. When will his or her license expire? A) January 31 of every even-numbered year B) November 30, 2016 first time licensee only C) October 31 of each odd-numbered year D) every other anniversary date of the individual salesperson's license

b

52. All of the following agreements must be in writing except an A) exclusive-agency listing B) open listing C) exclusive right to sell listing D) offer to purchase real estate

b

56. Which warning message is superimposed on the cover of a public offering statement? A) prospective purchaser should see the exact parcel considered before purchasing B) prospective purchaser should read this report before signing any paper C) prospective purchaser has five calendar days to cancel any contract signed D) prospective purchaser should seek competent advice if this report is not understood

b

60. Which of the following statements regarding price policies and discounts is true? A) Pre-development sales (before the clubhouse and pool are complete) at a discount will not be allowed B) Discounts are allowed for quantity purchases and for cash payment C) Discounts are not allowed from any advertised price D) Advertising must not discuss future increases planned or past price appreciation of lots

b

63. Common-interest community association documents are A) not required on a resale B) to be supplied by the association within 10 days of request for a reasonable fee C) only required on new home sales D) due by the close of escrow

b

64. A broker is licensed in Montana only. The broker wants to sell lots in Nevada as mobile home sites to Montana clients as winter homes. The broker may do this if the broker A) relocates to Nevada B) obtains a cooperating certificate to work through a Nevada broker C) maintains all his records in Montana D) closes escrows in Nevada or Montana

b

73. An advance fee rental agency A) may advertise property for rent without the owner's permission B) must have a refund policy C) may have an open ended contract term for the services to be rendered D) can alter the fees if the services take more time than originally anticipated

b

77. A Seller's Real Property Disclosure Form is required for all of the following properties except a A) FSBO B) new home C) resale D) home that has been inspected by a certified home inspector

b

79. A consumer has only collected $7,000.00 of his $45,000.00 judgment against a broker. The broker has now filed for bankruptcy. How much can the consumer possibly collect from the Real Estate Education, Research, and Recovery Fund? A) $3,000. B) $25,000. C) $18,000. D) $15,000.

b

8. In NV, brokers and salespeople who are not lawyers may A) sign a bill of sale on behalf of the seller after a sales contract has been signed B) fill in blanks on pre-printed form contracts customarily used in their community C) suggest additional language to be added to a pre-printed sales contract by a buyer or seller D) explain the legal significance of specific pre-printed contract clauses to a buyer or selleR

b

81. If a broker was originally licensed seven years ago and his or her license has been inactive for the last three years, how many hours of CE are needed to reinstate the broker's license? A) 15 B) 48 C) 45 D) 60

b

85. Waiver of the pre-licensing educational requirements for brokers and broker-salespeople is made for active experience as a salesperson according to which pattern? A) 15 credits for every 2 years active experience B) 16 credits for every 2 years active experience C) 8 credits for every 1 year's active experience D) there is no waiver for experience

b

96. Regarding a broker's trust account, the broker A) may use his or her personal account for clearing earnest money deposits as long as proper records and balances are maintained B) is not required to have a trust account C) must keep a separate trust account for each separate transaction D) may use the same trust account for both property management as well as general brokerage transaction

b

98. The city of Gabbs, Nevada requires a city real estate license before any compensated real estate activity is allowed in that city. Is this legal? A) yes, but only for revenue purposes such as business license B) yes, and Gabbs may require schooling and a separate test for certification C) no, because the state of NV has jurisdiction superseding Gabbs D) no, because the additional regulation by a city would be redundant

b

99. A broker recently closed her office and went to work for the Nevada Real Estate Division as the Deputy Administrator. In this role, the broker A) may not buy and sell property B) may not be actively licensed' C) may not own property D) must pass the state portion of the real estate examination before her employments

b

Which of the following increases a lender's upfront yield on a loan, allowing the lender to offer the borrower a below-market interest rate? a. Origination fee b. Discount points c. Administrative charges d. Prepayment penalty

b. Discount points

The closing date is approaching, but the buyers are still waiting for the loan to be approved. It would be appropriate to address this problem using: a. a written rescission agreement b. a written extension agreement c. a financing contingency d. an interim occupancy agreement

b. a written extension agreement

A broker received an offer with a deposit for one of his listings. The seller accepted the offer. But before the transaction closed, the buyer and seller mutually agreed to cancel it. The buyer requests the return of the deposit, and the seller has no objection. The broker: a. may deduct only sales expenses from the deposit before returning it b. must return all of the deposit, but may then sue the seller for his commission c. may deduct the full amount of his commission from the deposit before returning it d. may deduct the full amount of his commission from the deposit, then sue the seller for additional damages

b. must return all of the deposit, but may then sue the seller for his commission

An agent receives an offer of $350,000 for a property that she has listed for $355,000. When she is about to present the offer to the sellers, another offer comes in. This one is for $300,000. She should: a. present the lower offer only if the sellers reject the higher offer b. present both offers at the same time c. present the higher offer only after the sellers reject the lower offer d. discard the lower offer, as it is clearly frivolous

b. present both offers at the same time

A list of the rental rates assigned to the various types of units in a property is called a: a. rent roll b. rental schedule c. rental list d. rental budget

b. rental schedule

A buyer obtains a 90% institutional loan for $270,000 toward the purchase of a $300,000 house. The buyer does not have the necessary $30,000 for the down-payment, so the seller takes back a $15,000 ten-year mortgage and the buyer contributes the other $15,000 in cash. This arrangement is known as a/an: a. buydown b. seller second c. wraparound mortgage d. equity exchange

b. seller second

An agent putting together a listing proposal wants to estimate the property's value. He should: a. use the assessed value of the property b. use the selling prices of comparable properties c. calculate the cost of building materials d. All of the above

b. use the selling prices of comparable properties

117. A real estate salesperson has been working with buyers. After helping them negotiate for their dream home, the buyers ask the salesperson if she can help them with a home warranty program. The salesperson knows a warranty company that pays a fee for referring purchasers to them. Should the salesperson refer the buyers to this company? A) no, because this would be an unwise referral B) yes, if the salesperson and the buyers have previously entered into a written buyer agency agreement C) yes, if the salesperson discloses the referral fee to the buyers and the referral fee is paid through the brokerage D) yes, if the company offers the best coverage available in the market

c

118. A buyer contacts a real estate office and indicates an interest in purchasing a home in the area. Before making a disclosure on the duties owed by a Nevada Licensee Form, a salesperson from the real estate office can do all of the following except A) provide the buyer with information on properties for sale in the area B) give the buyer information on mortgage interest rates and terms C) open escrow on an accepted offer D) explain to the buyer about single agency, dual agency, and assigned agency

c

119. A buyer prospect is interested in seeing a house listed with a real estate company but does not wish to enter into a buyer agency agreement. A salesperson from the real estate company can show the buyer an in house listing if the A) salesperson obtains the seller's permission B) buyer verbally agrees to buyer agency C) salesperson provides the buyer with an agency disclosure that the real estate company represents only the seller D) salesperson provides the buyer with a dual agency consent form

c

120. In Nevada, an exclusive right to represent a buyer contract A) is illegal B) is identical to a listing agreement C) must be a written agreement in order to be exclusive D) requires the signature of the principal only

c

123. What are the three types of agency recognized in Nevada? A) seller agency, buyer agency, assigned dual agency B) sub agency, disclosed dual agency, seller agency C) single agency of one party only, disclosed dual agency with consent, assigned agency D) seller agency, buyer agency, full fiduciary agency

c

124. In a dual agency situation, a broker may collect a commission from both the seller and the buyer if A) the broker holds a state license B) the buyer and the seller are related by blood or marriage C) both parties give their informed consent to the dual compensation D) both parties are represented by attorneys

c

125. A seller is required to give a buyer a Seller's Real Property Disclosure Form in all of the following transactions except A) when the seller is selling a home without a licensed real estate agent B) if the seller's property is a three unit residential building C) for a sale of commercial property D) if the seller has had an inspection of the residential property

c

130. Five years ago, Unit 5B in a condominium was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the aids virus in a blood transfusion and died in the unit last year. As the agent of the woman's estate, what are your disclosure responsibilities to prospective purchasers of Unit 5B? A) you must disclose both the murder and the aids related death B) you are specifically prohibited by law from disclosing either event C) you are specifically relieved of liability for not disclosing either of these events by the Nevada law D) you do not need to disclose the murder, buy you must disclose the aids related death

c

134. A real estate licensee has signed a brokerage agreement with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to prospective tenants; rather, the licensee receives a commission from the landlords. The licensee tells a landlord that the prospective tenant could probably pay a somewhat higher rent than the landlord is asking. Which of the following statements is true? A) the licensee owes the statutory agency duties to the landlord who pays the commission B) the licensee's statement to the landlord was appropriate under these circumstances C) the licensee's statement violated the statutory duties owed to the tenant D) because the licensee is not charging a fee to prospective tenants, the licensee has not violated Nevada law

c

137. A real estate broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker must disclose A) both facts B) the suicide, but not the foundation C) the cracked foundation, but disclosing the suicide could constitute a breach of duty to the client D) neither fact

c

143. A brokerage's relationship as a buyer's agent or seller's agent, dual agent, or assigned agent within the brokerage must be determined, and all necessary agreements must be executed A) at any time after a purchase and sale agreement is executed by the parties B) at the time of the first substantial business contact C) no later than the time an offer and acceptance agreement is prepared D) no later than the closing

c

145. The licensing law of NV requires that the A) broker keep all information confidential that the seller has provided about the property B) broker disclose everything that the seller tells him or her C) broker disclose information that materially affects the property even when the buyer does not ask for it D) seller disclose all facts that might affect the sale

c

149. The NV Real Estate Division may undertake an investigation of a licensee based on all the following grounds except A) its own initiative as a result of routine audits B) as a result of a conviction in a court of law C) a motion from the members of the local real estate association D) a written complaint submitted by a disgruntled customer

c

158. In NV, all of the following are requirements for obtaining a broker/salesperson license except A) having successfully completed 64 semester hours of approved real estate courses or equivalent experience B) being at least 18 years of age C) having been actively engaged as a licensed salesperson for at least two out of the last four years D) being of good moral character

c

159. A person successfully completed her real estate examination requirement on November 1, 2015. What is the latest date on which she may apply for a salesperson's license? A) December 31, 2012 B) May 31, 2012 C) November 1, 2016 D) November 1, 2013

c

162. An applicant for a real estate license in NV must A) have completed at least two years of college B) be at least 21 years old C) not have had a real estate license revoked within the last year before applying D) show proof of passing the license examination any time up to six months prior to the application

c

164. When do real estate salespersons' licenses expire in Nevada? A) March 31 of every odd-numbered year B) June 30 of every even-numbered year C) on the last day of the month 12 months from the date of first time licensing D) January 31 of every odd-numbered year

c

166. All of the following acts require licensing under the Nevada license law except A) arguing the merits of an offer on behalf of a prospective buyer B) helping prospective buyers determine an appropriate price range and geographical location for their home search C) performing clerical duties or handing out prepared information about real estate to prospective buyers D) assisting a buyer through the search and selection process

c

167. Routine services that do not create an agency relationship in a brokerage, such as clerical duties, are referred to as A) Transactional acts B) routine brokerage C) ministerial acts D) customer service

c

168. In NV, an unlicensed real estate assistant may perform all of the following activities except A) compute commission checks B) assemble disclosure documents required for a closing C) explain simple contract documents to prospective buyers D) prepare mailings and promotional materials

c

17. If a broker tells a lender that the sales price on a property is something above its actual sales price, the A) broker has done nothing wrong as long as the appraisal substantiates this price B) buyer is likely to receive and interest rate break C) broker can lose his or her license D) buyer can receive a higher mortgage amount

c

175. The resident manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position, the on-site manager A) must have a salesperson's license B) must have a broker's license C) is exempt from the licensing requirements D) is violating the license law

c

179. Which of the following would satisfy the CE requirement for renewing a license the first time in Nevada if the license was issued after January 1, 2006? A) 12 hour course on using real estate office spreadsheet programs offered by a local community college B) 6 hour course on managing agricultural property offered by an approved CE sponsor C) 30 classroom hours of actual live instruction. D) 24 hours of class instruction, including 9 hours of law/ethics

c

183. A person must be licensed as a real estate broker or salesperson if that person is A) selling his or her house B) buying a house for his or her personal use C) engaging in the real estate business D) constructing houses

c

184. The Nevada Real Estate Commission consists of A) four active real estate brokers or broker-salespersons and one public member B) any combination of licensees and public members C) five actively licensed brokers or broker-salespersons D) five inactive brokers or salespersons

c

187. 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 into 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? A) the broker has acted properly by safeguarding the client's interest B) such action is proper when the same person owns all properties C) the broker is in violation of regulations for improperly handling trust funds D) the broker must use personal funds for repairs if there is not enough money in the management account

c

198. A broker's unlicensed assistant worked late nights and weekends to help ensure the successful closing of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers, encouraging them to accept the seller's counter offer. Largely because of the assistant's efforts, the sale went through with no problem. Now the broker wants to pay the assistant a percentage of the commission, "because the assistant has really earned it. " Under NV law, the broker may. A) compensate the assistant in the form of a commission under the circumstances described here B) not pay the assistant a cash commission but is permitted to make a gift of tangible personal property C) not pay a commission to the assistant under the facts presented here. They are both in violation of rules regarding payment of fees to unlicensed persons performing duties for which a license is required D) pay a commission to the assistant only if the assistant is an independent contractor

c

20. When advertising real property, real estate licensees A) may state only the licensee's box number or street address B) may simply give a telephone number C) must prominently display the name of their employing real estate broker D) must identify the owner of the property

c

201. The first thing a licensed salesman must do if his or her supervising broker's license is suspended is A) apply for a new license B) find a new broker to represent him or her C) stop selling and listing D) apply for a license transfer

c

203. By definition, a person who sells or offers to sell time-shares is A) an owner B) a time share agent C) a developer D) a project broker

c

24. A seller told a broker that she wanted to clear $50,000. when she sold her house. The broker accepted the listing and sold it for $160,000. He gave $50,000. to the seller and kept the rest. Which of the following is correct? A) the broker need not disclose to the seller the value of her house B) the broker's commission exceeds statutory and NAR guidelines C) the broker accepted a net listing and may be exposed to liability of failure to disclose the true market value of the home to the client D) as the seller's agent, the broker had a duty to sell the house for what he wanted as his commission

c

3. In NV, who is responsible prior to closing for calculating the pro-rations between the buyer and seller, ordering the preliminary title report, and preparing the purchase money mortgage note and trust deed? A) broker B) salesperson C) escrow agent D) lender

c

42. In NV, in order to sue for a commission, all of the following are necessary for a listing broker to be entitled to a commission except that A) there was a brokerage agreement B) the broker procured a ready, willing, and able buyer under the terms of the agreement or terms that the seller subsequently accepted C) closing of title by the purchaser occurred D) the broker was properly licensed at the time the contract was negotiated

c

44. Regarding the location of transaction records, a broker A) may keep the records out of state B) must notify the division within ten days after moving the records to another location C) must notify the division before moving records to a new location D) may not ever move the records

c

45. Under the terms of a sales contract, a seller is required to provide a termite certificate. The seller requests that the salesperson order one. The salesperson does so, knowing she will receive a referral fee from the pest control company. Is this a violation of the license law? A) no, if the fee is less than $35 B) no, because undisclosed referral fees are not in violation of the law C) yes, because a salesperson may not receive an undisclosed referral fee from anyone other than his or her employing broker D) no, if the fee is over $100.

c

51. A broker has obtained an offer to purchase a residence that is listed with his firm. After the buyers sign a purchase and sale agreement and the broker accepts their earnest money deposit, the broker must A) deposit the earnest money into the broker's personal checking account for safekeeping until closing. B) complete a second earnest money agreement form that states and exaggerated selling price and give the second form to the buyers to present to the lender so that they will be certain to obtain sufficient financing for their purchase. C) provide the buyers a copy of the agreement as a receipt for their deposit at the time of signing or as soon as it is practicable thereafter. D) file the agreement in the broker's records and, when two or three other offers have been received for the property, present them all to the sellers, who may then choose the best offer.

c

6. A broker who holds a NV license, but whose home state is Iowa, must meet all of the following requirements except that he or she. A) maintain an office in NV B) maintain all documents related to NV transactions in NV C) employ at least one NV licensee, either as a salesperson or associate broker D) file a consent to service of process with the administrator

c

61. A buyer has purchased land regulated under NRS 119 and cancels within the five days allowed by law. How much time does the broker have to refund the buyer's money? A) 5 days B) 10 days C) 15 days D) 30 days

c

66. Regarding signage, a broker must have a sign A) unless his or her office is in his or her home B) at his or her principal location and identical sign, at his or her branch offices C) visible from the nearest public sidewalk, street, or highway, on the building directory, or at the entrance of the business D) in letters at least five inches high

c

68. Regarding a salesperson setting up a corporation or LLC, NRS 645 allows A) no salesperson to be the licensee for a corporation or LLC B) only broker-salespersons to be the licensees for a corporation or LLC C) a salesperson to set up a one-shareholder corporation or one-member LLC to associate with a broker D) a salesperson to be a corporation or LLC only if all shareholders or members are licensed

c

69. A corporation doing business as a real estate broker has designated k, a corporate officer, to be the broker. K A) must pass a corporate broker's exam B) must act as a broker for that corporation only C) may act on his or her own behalf if separately licensed and with the approval of the corporation D) must turn in all of the licenses of the agents in the corporation if K leaves this position and a new corporate broker is appointed

c

71. How many years must a broker keep records after the last activity regarding the property? A) 2 B) 3 C) 5 D) 10

c

78. A broker may be disciplined for unknown violations of licensees associated with the broker because the broker A) is presumed to know about the violations B) has employed them C) has failed to exercise supervision D) has received compensation derived from the violation

c

83. An active licensee needs 24 hours of CE to reinstate. How many hours must be in a law/ethics course? A) 1 B) 3 C) 12 D) 9

c

Which of the following will not be included in calculating the APR of a real estate loan under the Truth in Lending Act? a. Interest b. Buyer-paid discount points c. Appraisal fee d. Loan origination fee

c. Appraisal fee

The parties must separately initial the appropriate paragraph in a purchase agreement if they agree to which form of dispute resolution? a. Mediation b. Appeal c. Arbitration d. Lawsuit

c. Arbitration

Under which type of listing will the seller owe a commission to the listing agent regardless of who is the procuring cause of the sale? a. Open listing b. Exclusive agency listing c. Exclusive right to sell listing d. Net listing

c. Exclusive right to sell listing

Your buyer has found a house she likes, but doesn't have enough funds available to make a significant good faith deposit. She has a CD maturing in a week that will give her more cash. How should you advise the buyer to proceed? a. Wait to make an offer until she has the funds for the good faith deposit b. Use a postdated check as her good faith deposit c. Make an offer with a small deposit and a promise to increase the deposit once the CD matures d. Don't tell the seller the amount of the deposit

c. Make an offer with a small deposit and a promise to increase the deposit once the CD matures

Which of the following can a licensee do without engaging in the unauthorized practice of law? a. Draft a purchase agreement, provided both parties agree in writing to the licensee's action b. Draft purchase agreement provisions that do not have tax consequences c. Prepare a standard preprinted purchase agreement form at no extra charge d. Prepare a standard preprinted purchase agreement form for a separate fee

c. Prepare a standard preprinted purchase agreement form at no extra charge

Which provision in a purchase agreement would enable the seller to keep the property on the market and accept an offer from a second buyer? a. Extender clause b. Safety clause c. Release clause d. Hold harmless clause

c. Release clause

13. The real estate commission has the power to revoke a salesperson's license if the salesperson A) attempts to represent a real estate broker other than his or her employer after obtaining the employer's consent B) attempts to represent a buyer C) enters into an exclusive listing contract D) deposits a buyer's down payment into his or her own bank account

d

Over the phone, Bill offers Sandy $300,000 for her property. Sandy says that would be acceptable. Bill fills out a purchase agreement form and signs it. Before he can put it in the mail, though, Sandy phones Bill and says that she has accepted a better offer instead. Which of the following is true? a. Sandy formed a contract with Bill upon her oral acceptance of his offer b. Sandy has formed contracts with both Bill and the second buyer, and she is liable to both c. Sandy's acceptance of Bill's offer wasn't in writing, so she may accept another offer without liability to Bill d. Bill's oral offer was valid, but Sandy's oral acceptance was not, so she may accept another offer

c. Sandy's acceptance of Bill's offer wasn't in writing, so she may accept another offer without liability to Bill

The seller is allowed to keep the good faith deposit as liquidated damages after a buyer breaches the purchase agreement. Generally, how will the deposit be distributed after costs incurred on the seller's behalf have been paid? a. The seller must compensate the selling broker b. The deposit belongs to the listing broker as a commission, because he found a ready, willing, and able buyer c. The deposit will be split evenly between the listing broker and the seller d. None of the above

c. The deposit will be split evenly between the listing broker and the seller

In a real estate transaction, who is required by law to inspect the property and disclose any material defects observed? a. The buyer b. The seller c. The listing agent and the selling agent d. The listing agent only

c. The listing agent and the selling agent

An agent is preparing a CMA and evaluating possible comparable sales. Which of the following characteristics would most likely make a property unsuitable for use as a comparable? a. The property is in the same neighborhood as the subject property b. The property is too similar to the subject property in age, style, and quality c. The property sold just over 12 months ago d. None of the above

c. The property sold just over 12 months ago

You're preparing a competitive market analysis. The subject property has a two-car garage; a comparable has only a one-car garage. The value of the additional garage space is $4,000. You should: a. add $4,000 to the value of the subject property b. subtract $4,000 from the value of the subject property c. add $4,000 to the value of the comparable d. subtract $4,000 from the value of the comparable

c. add $4,000 to the value of the comparable

A lower loan-to-value ratio corresponds to a higher: a. degree of risk b. interest rate c. amount of equity in the property d. loan amount

c. amount of equity in the property

A provision that is related to a financing contingency (and which may be included as part of a financing contingency clause) is a/an: a. purchase of replacement property contingency b. title insurance contingency c. appraisal contingency d. closing costs contingency

c. appraisal contingency

In property management, the primary purpose of a market analysis is to identify the: a. highest and best use of the property b. future value of the property c. appropriate rent schedule d. maximum net operating income

c. appropriate rent schedule

In a request for reconsideration of value, you should use: a. exactly the same comparables as the appraiser b. only currently listed properties as comparables c. comparable sales that are at least as similar to the subject property as the appraiser's comparables d. the income approach to value

c. comparable sales that are at least as similar to the subject property as the appraiser's comparables

All of the following are important components of an inspection report, except: a. identifying problems that may arise if remodeling is undertaken b. projecting a future budget for repair or remodeling work c. providing a preliminary value estimate for the property d. listing areas that need or will need repairs

c. providing a preliminary value estimate for the property

A real estate agent's advertisements for residential property should always include: a. models from a different ethnic group than the residents of the neighborhood where the property is being advertised b. models from the same ethnic group as the residents of the neighborhood where the property is being advertised c. the Equal Housing Opportunity logo or slogan d. a statement of the standards of the community

c. the Equal Housing Opportunity logo or slogan

With a wraparound mortgage: a. the buyer assumes the mortgage and pays the lender directly b. the seller makes payments to the buyer, who makes the payments on the underlying loan c. the buyer makes payments to the seller, who makes the payments on the underlying loan d. the buyer obtains a loan for the purchase of several properties under one security instrument

c. the buyer makes payments to the seller, who makes the payments on the underlying loan

Usury

charging more than the legally allowed percentage of interest

the DRE will issue only a 150 day license if the applicant is on a list of persons who owe

child support

Alluvium

clay or silt or gravel carried by rushing streams and deposited where the stream slows down

131. A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's salesperson has decided to purchase it as an investment. If the broker's salesperson wishes to buy this property, the salesperson must A) resign as the broker's agent and make an offer after the owner has retained another broker B) have some third party purchase the property on the salesperson's behalf so that the owner does not learn the true identity of the purchaser C) obtain permission from the Nevada Real Estate Commission D) inform the owner in writing that the salesperson is a licensee of the brokerage before making an offer

d

133. A real estate licensee must give the Duties Owed by a Nevada License Form to prospective purchasers/tenants A) before they are shown any properties B) at an open house C) at the closing table D) no later than the time of entering an agreement to purchase or lease

d

An option is enforceable when

consideration is given, a method of payment of the purchase price or a closing date are not required

Local planning authorities responsibilities

coordinate the subdivision plans including lot design, street patterns, drainage, and sewers with the community pattern (master plan) as well as making sure some subdivision areas will be dedicated to the city or county for public purposes. Population density, building intensity, housing, traffic patterns, transportation systems, noise control, open spaces, safety, hazards, and conservation of natural resources.

108. A developer must register a subdivision if the minimum number of lots in a subdivision are A) 12 or more B) 15 or more C) 20 or more D) 35 or more

d

109. The sale of how many time-shares in a year in a project requires registration? A) 5 B) 7 C) 10 D) 13

d

110. A time-share sales agent must complete which of the following education requirements? A) 24 classroom hours of pre-licensing instruction and 6 hours of continuing education to renew B) 6 hours of pre-licensing instruction and 14 hours of continuing education to renew C) 24 classroom hours of pre-licensing instruction and 14 hours of continuing education to renew D) 14 hours of pre-licensing instruction and 6 hours of continuing education to renew

d

115. A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur? A) no, because the real estate company would then be a dual agent B) yes, as long as written agency agreements have been entered into with both parties C) yes, if the seller has agreed to pay the commission D) yes, if the buyer and seller both give their consent to dual agency

d

12. Under NV law, which of the following statements is not true of an exclusive listing contract? A) exclusive listing contracts must be in writing B) exclusive listing contracts must include a specific termination date C) automatic extension clauses are not allowed in exclusive listing contracts D) exclusive listing contracts must discuss the seller's net return

d

128. In Nevada, when a broker is listing a single family home and asks the seller to complete a Seller's Real Property Disclosure Form, which of the following statements is true? A) the disclosures are optional, and the seller may avoid liability by refusing to make any disclosures about the condition of the property B) the standard disclosures cover a narrow range of structural conditions only C) an agent should not advise the seller to ignore any known property conditions D) Nevada law requires the seller to disclose any and all known property conditions

d

135. All of the following are exempt from the Seller's Real Property Disclosure Form except a A) foreclosure sale B) sale by an uncle to his niece C) conveyance of a primary residence from one former spouse to another under a divorce settlement agreement D) sale by a real estate licensee of a two unit residential property

d

142. 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? A) yes, because NV law permits the creation of sub-agency relationships only through multiple-listing services B) yes, because a sub-agency relationship may be created by a blanket offer in and MLS C) no, because sub-agency is illegal under NRS 645 of NV law D) no, because the seller did not agree to this action

d

156. The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is A) violating the license law B) required to have a broker's license C) required to have a salesperson's license D) exempt from real estate licensing requirements

d

16. Which of the following actions are legal and not a violation of license law? A) encouraging a seller to reject an offer because the prospective buyer is a Methodist B) placing a for sale sign in front of a house without asking the seller's permissions C) advertising that individuals who attend a promotional presentation will receive a prize without mentioning that they will also have to take a day trip to a new subdivision site D) standing in the hallway outside the testing room and offering employment to new licensees as soon as they receive their passing score at the testing center

d

163. An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following? A) fine not to exceed $5,000 B) fine not to exceed $1,000 C) civil penalty of $5,000 in addition to other penalties provided by law D) prosecution by the district attorney

d

170. All funds received by a broker on behalf of his or her principal must be deposited in an escrow or trust account within A) three days of receiving the offer B) three days of obtaining all signatures for the contract C) five working days of receiving the offer D) one banking day after acceptance of the offer

d

178. Which of the following is a requirement to obtain a real estate salesperson's license in Nevada? A) successful completion of 21 credit hours of real estate law, finance, and appraisal B) an associate degree or certificate in real estate from an accredited college, university, or proprietary school C) United States and NV citizenship D) successful completion of a course of 90 classroom, correspondence, or distance learning hours in real estate principles, practices, procedures, law, and ethics

d

18. Salesperson F-B paid the local telephone company to list her name in the directory under the real estate heading as "F-B, real estate salesperson, Residential Property My Specialty." Based on this information F-B, must also include A) her license number B) the expiration date of her license C) her street address D) the business name of her employing broker

d

181. A broker received an earnest money deposit from a buyer, payable to the brokerage. Under NV law, the broker should A) open a special, separate trust account that will contain funds for this transaction only, separate from funds received in any other transaction B) immediately deposit the money into an existing special non-interest bearing trust account in which all earnest money received from buyers may be held at the same time C) immediately, or by the next business day deposit the earnest money into the broker's personal interest-bearing checking or savings account D) hold the earnest money deposit in a secure place n the broker's real estate brokerage office until the offer is accepted then deposit into the brokerage trust account within one banking day

d

182. A broker received a buyer's earnest money check payable to the brokerage for $5,000 and immediately cashed it. At closing, the broker handed the seller a personal check drawn on the broker's own bank account for $5,300, representing the original earnest money plus six percent interest. The broker A) should have deposited the money into a special non-interest bearing bank account B) properly cashed the check but should have kept the interest C) should have deposited the money into his personal bank account and would have been entitled to keep the interest as a service fee D) should have deposited the money into the established brokerage trust account within one banking day of acceptance of the offer and then transferred the money to the closing agent at time of closing

d

190. An aggrieved person is awarded a judgment against a real estate licensee for violation of the NRS 645. Regarding the Real Estate Education, Research, and Recovery Fund, the aggrieved party has the right A) under the license law to immediately apply to the division for payment from the Real Estate Education, Research, and Recovery Fund for the full judgment amount plus court costs and attorney's fees B) to a maximum award amount of $300,000 from the Real Estate Education, Research, and Recovery fund, including court costs and attorney's fees C) to seek satisfaction from the licensee in a private civil action after being compensated from the Real Estate Education, Research, and Recovery Fund D) to a $25,000 maximum recovery from the Real Estate Education, Research, and Recovery fund

d

197. Three weeks before N begins his real estate pre-license class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5 percent commission. An offer is accepted while N is taking the class and closes the day before N passes the examination and receivers his salesperson's license. The neighbor refuses to pay N the agreed commission. Can N sue to recover payment? A) yes, because N was formally enrolled in a course of study intended to result in a real estate license at the time an offer was procured and accepted, the commission agreement is binding B) no, in NV, a real estate salesperson must have a permanent office in which his or her license is displayed in order to collect a commission from a seller C) yes, while the statute of frauds forbids recovery on an oral agreement for the conveyance of real property, NV law permits enforcement of an oral commission contract under these facts D) No, state law prohibits lawsuits to collect commissions unless the injured party is a licensee and the license was in effect before the agreement was reached

d

26. In NV, real estate commissions are A) set by law B) set by the NV real estate division C) determined by local groups of brokers D) negotiable between the client and broker

d

27. Upon obtaining a listing, a broker or licensed salesperson is obligated to A) set up a listing file and issue it a number in compliance with specific guidelines established by the NV real estate commission B) place advertisements in the local newspapers at least three times per week C) must cooperate with every real estate office wishing to participate in the marketing of the listed property whether or not they are members of MLS D) give the person or persons signing the listing a legible, signed, true, and correct copy at the time of signing or as soon as practicable thereafter

d

30. A person who believes that he or she has been illegally discriminated against may file a complaint with the A) NV Association of Realtors B) Attorney General C) Real Estate Commission D) Department of Housing and Urban development (HUD)

d

36. Several weeks after a closing, a broker-salesperson received a thank you letter and a nice bonus check from the seller of the house. The broker salesperson cashed the check because he felt it was earned. In this situation, which of the following is true? A) the broker salesperson may accept the bonus B) accepting the money is allowed if more than 30 days have elapsed since the closing C) the broker salesperson may directly accept the money if his broker permits him to do so D) accepting the money directly from the client is a violation of commission regulations

d

37. When a broker, acting as a sole proprietor, has his or her license suspended for two years, what effect does this have on the broker salesperson and the salespeople affiliated with the broker? A) licenses will be revoked, subject to reinstatement after one year B) licensees will also be suspended for a two year period C) suspension has no effect on the licensees D) licensees have up to 30 days to affiliate with another broker, or their licenses will be inactivated

d

38. A broker intends to open a branch office in a neighboring town. The broker applies for a branch office license, giving a name that clearly identifies its relationship with his main office. The broker names a licensed real estate salesperson as the branch office manager. Under these facts, will the broker receive approval for the branch office? A) yes, the broker has fully complied with the requirements of the license law B) no, under the license law, brokers cannot have branch offices in more than one city C) yes, by naming the salesperson as the branch's manager, the broker is in compliance with the requirement that a broker may be in direct operational control of only one office or branch D) No, the manager of a branch office must be a licensed broker salesperson or broker

d

39. A broker-salesperson is not satisfied with her present real estate company and has decided to become associated with another. Before the broker salesperson can begin actively selling for the new company, the A) first broker must transfer the broker salesperson's license to the new office B) new broker must notify the commission of the change and send in the proper forms and fees C) associate broker must take her license to the new brokerage and notify the commission within three days of the transfer to a new location D) appropriate paperwork must be given to the division at which time a temporary permit to conduct business will be issued and posted with the new brokerage

d

4. How long are real estate licenses valid? A) granted in perpetuity B) need not be renewed unless previously revoked C) expire annually on December 31 D) beginning July 1, 2015, a first-time license will be valid for one year. Subsequent renewals will be valid for two years.

d

46. An airline pilot told a broker about some friends who were looking for a new home. The broker contacted the friends and eventually sold them a house. When may the broker pay the airline pilot for this valuable lead? A) soon as a valid sales contract is signed by the parties B) only after the sale closes C) after the funds are released from escrow D) never

d

48. A buyer has just entered into a contract to buy a condominium unit from a person who originally bought the unit from the developer and has lived there for the past 10 years. This new buyer has a right to cancel the contract within A) 5 days of receipt of resale documents B) 15 days of receipt of resale documents C) 5 days from the date the new contract is executed. D) the new buyer does not have the right to cancel a signed contract in this situation

d

54. A broker has taken a $3,000. consulting fee from a developer regarding a new subdivision marketing plan. When must an accounting for this advance fee be given to the developer? A) immediately after payment B) within 10 days of the payment C) within 30 days of the payment D) within 3 months of the payment

d

55. A salesperson receives money as an earnest deposit on Tuesday at 2:00 p.m. for an offer that has met the listed price and terms. The salesperson may A) keep the money since he has found a ready, willing, and able buyer B) keep only the money that is his commission C) deposit the funds into his trust account within one banking day D) only turn the funds over to the broker within one business day

d

58. One of the requirements for a registered representative position is that the applicant A) must pass an examination B) is allowed to sell only under the strict supervision of a broker for the first 90 days C) will receive a license D) may only induce attendance at an offering or sales promotion and cannot sell

d

62. Which of the following are common interest community association liens that may not be the basis for a foreclosure? A) Unpaid regular dues B) Unpaid special assessments for replacements C) Fines for health or safety hazards D) Fines for other violations of the CC&Rs

d

65. An Idaho broker is moving to Nevada and would like to maintain offices in both states. Is this possible? A) not unless he puts his Idaho license on inactivated status B) no, since he may not hold a license in both states C) yes, but he must become a Nevada resident D) yes, he may have both offices, but he must maintain Nevada records in Nevada, not Idaho

d

67. The financial suitability requirement for a broker's license requires A) the submission of an audited financial statement prepared by the broker's CPA B) the broker's last two income tax returns C) the broker's profit and loss statements for the last three years D) proof of sufficient assets or income to maintain an office for 180 days and a credit report

d

Mello-Roos liens

municipal bonds issued to fund streets, sewers, and other infrastructure needs before a housing development is built. Responsibility is for seller to disclose. Broker may be disciplined by real estate commissioner if disclosure does not happen, and buyer has 3-day right of recessions after receipt of the notice

7. In the state of Nevada the following are grounds for revoking a broker's license except. A) being convicted of fraud in district court B) advertising in a newspaper that he or she is a member of the local association of realtors when in fact they are not C) depositing escrow money into his or her personal checking account D) agreeing with a seller to accept a listing for more than the normal commission rate

d

72. Commission hearings may result in A) a judgment for an injured consumer against the licensee B) criminal prosecution C) decisions that may not be appealed D) fines, suspension, revocation, or conditional licensing

d

75. Ed, a salesperson, wants to advertise several listings in the Homes magazine. The salesperson A) must identify either his broker or himself B) can say "by owner" if he owns at least on of the advertised properties C) must identify the broker only and not himself D) must identify the broker and may identify himself

d

80. All of the following are grounds for disciplinary action except a licensee A) trying to negotiate a sale of property directly with an owner before another broker's exclusive listing has expired B) giving information on a rental to a tenant without the landlord's permission C) refusing to write a low offer that the licensee feels will not be accepted by the seller D) refusing to show property to a prospective purchaser due to poor credit

d

82. All of the following are requirements for a property management permit holder except A) 24 hours of pre-permit schooling B) 3 hours of CE in property management to renew C) a real estate license D) a broker's license

d

84. A manager of a common-interest community association (CICA) must hold A) a real estate license as a minimum B) a property management permit and a real estate license C) a special exemption certificate from the NV Real Estate Division D) either B or C

d

89. Of the following, who must have a real estate license? A) owner of the property being sold or leased B) executor of an estate C) bankruptcy trustee or any person acting under court order D) property manager

d

93. A salesperson has left a real estate brokerage, and his license has been returned to the division. What maximum time is allowed for re-affiliation before the license is placed on inactive status? A) no time is allowed at all B) 10 days C) 15 days D) 30 days

d

94. Which of the following may have an active real estate license? A) depository financial institution B) division employee C) person under suspension D) nonresident of NV

d

97. All of the following are requirements for an exclusive right to sell listing except that A) it must be written B) it must have an expiration date C) it cannot have an automatic renewal clause D) a copy must immediately be left with the seller after signing the listing

d

Before showing properties to a prospective buyer, the agent should: a. preview the listings b. preview the neighborhoods c. choose a maximum of five or six listings for each showing d. All of the above

d. All of the above

If a property receives a low appraisal, an agent may try to salvage the sale by: a. having the seller lower the sales price to the appraised value b. having the buyer make a larger down-payment c. requesting a reconsideration of value d. All of the above

d. All of the above

If an advertisement for a home with financing states the monthly payment amount, what else must be disclosed? a. The down-payment amount b. The repayment terms c. The annual percentage rate d. All of the above

d. All of the above

Which of the following is a method commonly used by real estate agents to generate listings? a. Cold calling b. Referrals c. Farming d. All of the above

d. All of the above

At what point in a transaction must you disclose your agency status in writing? a. At closing b. When a party asks who you represent c. Whenever providing any agency services d. Before or at the same time a party signs a purchase agreement form

d. Before or at the same time a party signs a purchase agreement form

While canvassing a neighborhood, a salesperson informs local homeowners of the city's plans to build a group home for the mentally disabled nearby. "Home prices here will probably fall as a result. Have you thought of selling your home while you can still get top dollar?" The salesperson's actions would probably be considered: a. blockbusting b. an attempt to induce panic selling c. ethically questionable, but legal d. Both A and B

d. Both A and B

Which of the following phrases describes the objective value that would be attributed to a property by a buyer on the open market? a. Value in use b. Value in exchange c. Market value d. Both B and C

d. Both B and C

A contingent sale collapses because the buyer is unable to sell his own property. Which form is it appropriate to use at this point? a. Bump notice b. Bump notice reply c. Second buyer addendum d. Cancellation agreement

d. Cancellation agreement

Which of the following costs in a real estate transaction is not ordinarily charged to the buyer? a. Origination fee b. Purchase price c. Appraisal fee d. Documentary transfer tax

d. Documentary transfer tax

If a contingency in a purchase agreement is not fulfilled despite a good faith effort to fulfill it, the party who benefits from the contingency may: a. terminate the agreement and have the deposit returned b. waive the contingency and continue with the transaction c. sue the other party for breach of contract d. Either A or B

d. Either A or B

What federal law requires the closing agent to withhold a certain percentage of the seller's proceeds and submit that money to the IRS if the seller is not a citizen of the U.S. or a resident alien? a. Home Mortgage Disclosure Act b. Franchise Tax Withholding Act c. Recapture of Foreign Profits Act d. Foreign Investment in Real Property Tax Act

d. Foreign Investment in Real Property Tax Act

Which of the following is characteristic of a VA loan? a. Income limits b. Mortgage insurance c. Downpayment d. Funding fee

d. Funding fee

Which of the following items will be included in a real property transaction? a. All items not specifically listed as excluded items in the purchase agreement b. Only items listed as included items in the listing agreement c. Items advertised as included items in the marketing materials d. Items classified as fixtures, unless specifically listed as excluded items in the purchase agreement

d. Items classified as fixtures, unless specifically listed as excluded items in the purchase agreement

Which of the following is not a requirement of RESPA? a. All settlement charges must be itemized on a closing disclosure form b. The lender must give loan applicants a booklet about settlement procedures within three days of receiving an application c. A seller may not require the buyer to use a particular title company d. Loan advertisements must include the annual percentage rate

d. Loan advertisements must include the annual percentage rate

A property manager's budget for a client's property will typically include which of the following as operating expenses? a. Reserves for replacement of built-ins b. Depreciation allowance c. Vacancies and unpaid rent d. Management fees

d. Management fees

Which of the following is the duration for listing periods in the state of California? a. 30 days b. 90 days c. 180 days d. Whatever the broker and the seller agree to

d. Whatever the broker and the seller agree to

All of the following are exempt from escrow agent licensing requirements, except: a. an attorney at law b. a title company c. a broker providing escrow services for her own transaction d. a broker providing escrow services for someone else's transaction

d. a broker providing escrow services for someone else's transaction

A broker brings his seller an offer from a potential buyer. If the seller asks about the buyer's race, the broker: a. must disclose this information to the seller, to fulfill his fiduciary duties b. may disclose this information as long as he is confident that it will not affect the seller's decision c. may disclose the information after obtaining permission from the buyer d. may not disclose this information, because to do so would violate the Rumford Act

d. may not disclose this information, because to do so would violate the Rumford Act

Benificiary's statement

demand statement by a lender under a deed of trust that provide s information such as the unpaid balance, monthly payment, and interest rate, necessary if the loan is to be assumed

Intestate Succession

die without a will. Community property will go to spouse. Separate property will 1/3 to spouse, 2/3 to children.

no

do you need a real estate license for mining claims

Prescription

easement or right to USE another's land which can obtained through five years on continuous use

Payoff demand statement

formal demand statement from the lender that details the amounts owed for the purpose of paying off the loan in full

provide a means of compensation for actual damages suffered by individuals as a result of the acts of a licensee in violating the license law or committing other illegal acts related to a real estate transaction. Each licensee will pay into the fund.

he purpose of the real estate education, research, and recovery fund is to Ensure that Nevada real estate licensees have adequate funds available to pay their licensing and continuing education fees. Provide a means of compensation for actual damages suffered by individuals as a result of the acts of a licensee in violating the license law or committing other illegal acts related to a real estate transaction. Protect the real estate commission from claims by individuals that they have suffered a monetary loss as the result of the action of a licensee in violating the license law or committing other illegal acts related to a real estate transaction. Provide an interest-generating source of revenue to fund the activities of the real estate commission.

Equitable title

held by a trustor while he or she is repaying a trust deed and note

Vesting

how someone takes ownership (e.g. sole ownership - individual, corporation, LLC or co-ownership - joint tenants, tenants in partnership, tenants in common, community property)

events that terminate an offer

if before acceptance: death of either person, destruction of the real estate, notice of withdrawal by person who made offer, rejection by offeree, lapse of time, revocation by offeror, illegal

Flooding is considered a frequent hazard

if it occurs more than once in a 10-year period

Leverage

investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)

Easement by Implication

may be created when: A single parcel of land is divided into two or more parcels, with parcels going to different owners The use underlying the easement must have existed before the division of the property and that use have been both apparent and continuous before the division;,and The use must be reasonably necessary for the use and enjoyment of the parcel

Deed

is a written instrument that conveys and evidences title

variance

is action by a local building authority permitting an inconsistency to the existing codes

gross rent multiplier

is arrived at by dividing the monthly or annual gross rent into the selling price of the property

The purchase agreement in the Buyers closing statement

is debited on the closing statement

Yes, and the city or county may require a separate test for the certification.

is it legal for a city to require a license of it's own before any compensated nevada real estate activity is allowed in that city

Lawyer vs broker practicing escrow

is okay if for client vs is okay if they are part of the transaction (both can charge a fee)

Rental schedule

lists all the rental rates assigned to the different types of units

Multiple listing service

marketing organization whose broker members make their own exclusive listings available to other brokers; sellers gain because of larger exposure.

Cancellation of purchase agreement

must be a written notice of cancellation. A purchase agreement will have a time period for the other person to cure the defect or failure and avoid termination

more than 80 acres net of easements If all lots are greater than 80 acres they are exempt from NRS 119 regulations.

n order to receive an exemption to registration for a "large lot" subdivision, every lot or unit must be At least 80 acres in size At least 80 acres net of easements in size More than 80 acres net of easements At least 15 acres net of easements

Straight Note

note that calls for payment of the interest only at periodic intervals and the principle balance due in full at maturity

constructive fraud

occurs when agent deceives by not completing promised actions

License

personal nonownership right to use personal or real property for a specific period of time

Secondary mortgage market

provides additional funds to mortgage lenders by letting them buy and sell 1st mortgages (trust deeds). Fannie Mae (buys and sells loans) and Freddie Mac (buys loans and packages them to investors) are both involved.

Threshold reporting

requires annual reporting of quarterly loan activity if broker negotiates (actually gives) any combo of 20 or more loans to a subdivision or more than $2 million in loans

the business name of her employing broker. The brokerage name must be included in all advertising

salesperson J-H paid the local telephone company to list her name in the directory under the real estate heading as "J-H, Real Estate Salesperson, Residential Property My Specialty." Based on this information, J-H must also include Her license number The expiration date of license. Her street address. The business name of her employing broker.

A recorded option ceases to constitute constructive notice of a buyer's options rights when

six months after expiration or six months after recording (if no expiration given)

Ground lease

the landlord leases the land to the tenant, and the tenant builds improvements on the leased land.

Loan to value

the percent of market value that a lender is willing to lend

Chain of title/Plant title

the public record of a property's ownership

Option

the right to buy or sell property at an agreed price

Conditional privilege

the right to make a false statement about someone and not be held liable for defamation provided the statement was made without malice

Property

the rights or interests that a person has in the thing owned

Agency

the state of serving as an official and authorized delegate or agent for a specified period of time

deed of reconveyance

the transfer of legal title from the trustee to the trustor (the borrower) after the trust deed debt is paid in full

Abandonment

the voluntary surrender of property (or a right to property) without attempting to reclaim it or give it away. Certificate must be completed and recorded to be valid.

A sales agent must include in their advertising

their name, their license number, and the broker they work for

Warranty of authority

thing created that allows agent to offer property for sale after written listing agreement

Tier Lines

tier or township lines run parallel with the baseline on an east/west basis, run 6 miles apart

interpleader action

title company turns earnest money over to court because of a dispute

Range Lines

township lines running north and south, parallel to the meridian. They are also six miles apart

Percolating water

underground water not confined to a specific waterway, channel, or stream

Duress

unlawful detention of a person and/or that person's property. A contract entered into duress is voidable.

Close of Escrow Close of escrow means essentially that a real estate transaction has been completed and that the sale is final. ... The seller of the property transfers all documents to the escrow agent, who holds them until the buyer transfers the money for the sale to the agent who ultimately transfers it to the seller.

what is COE

Nevada Administrative Code (NAC) is the codified, administrative regulations of the Executive Branch.

what is NAC

The Nevada Revised Statutes (NRS) are all the current codified laws of the State of Nevada. Nevada law consists of the Constitution of Nevada (the state constitution) and Nevada Revised Statutes. the Statutes of Nevada are a compilation of all legislation passed by the Nevada Legislature during a particular Legislative Session.

what is NRS

SELLER REAL PROPERTY DISCLOSURE FORM this is the form for when you present to your client that is selling a property. they check off the condition of everything in the house

what is the definition SRPD?

Single Agency Assigned Agency Exclusive Agency L.A.B. Exclusive agency Exclusive right to sell Open Net DUAL AGENCY IS WRONG!!! IT DOES NOT EXIST IN NEVADA!!!

what types of agency(s) are there ?

A copy must always be given immediately to the person(s) signing the listing

which of the following is not true regarding Nevada real property listings? A. A copy must always be given immediately to the person() signing the listing B. All exclusive listing must have an expiration date C. All exclusive listing must be in writing D. An automatic renewal clause cannot be part of an exclusive listing

Nevada Attorney General

who is responsible for offering legal opinions on laws and regulations to Nevada Real Estate Division? A. Hearing Officer B. Nevada District Attorney C. Nevada Attorney General D. Nevada Real Estate Commission

A buyer cannot enter or take possession of a property early without

written permission from the seller