Real estate state law practice exam 3
How many hours do you need to renew your salespersons license the second time?
24 hours. - 12 hours of live classroom - 3 hours of each (Contracts, Agency, Nevada Law, Ethics) -the last 12 hours may be in correspondence with general studies
C.) A motion from the members of the local real estate association The board is not a legal or state agency.
A Nevada licensee may be investigated by the NRED for all of the following EXCEPT: A.)The NRED may investigate on it's 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
The Real Estate license is automatically suspended The licensee will remain suspended for a minimum of one year.
A Nevada licensee was the subject of an investigation by civil court; they concluded a payment was due from EERF to the person who brought the complaint. Once the payment is made:
Never, unless the person referring is licensed broker Any fees, commissions or referrals must be paid from broker to broker. Then each broker may pay their licensees.
A broker obtained a referral. The broker sold a home to the referral. When may the broker pay the person giving the lead?
C.) Employ at least one Nevada licensee, either as a salesperson or associate broker The broker has no legal requirement to hire anyone.
A broker who holds a Nevada license, but whose home state is Florida, must meet all of the following requirements EXCEPT that she A.) Maintain an office in Nevada B.)Maintain all documents related to the Nevada transactions in Nevada C.)Employ at least one Nevada licensee, either as a salesperson or associate broker D.)File consent to service of process with the NREDA
D.) Agreeing with a seller to accept a listing for more than the normal commission rate. There is no normal rate. All commissions are negotiable.
All of the following are grounds for revoking a Nevada 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 he or she is 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.
A.)Having been arrested for embezzlement An arrest is not a conviction.
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 licensed broker A licensed broker would have to drop to a broker/salesperson license.
Four people applied for a position under an owner-developer, which candidate, by law, could not work for the owner-developer. A licensed salesperson A licensed broker-salesperson A licensed broker An unlicensed hostess
B.)must disclose the fact the he has a real estate license in writing. An owner must disclose that he is a licensee in all advertising.
Harvey Rabbit a Nevada licensee, wants to sell his own house in Nevada, without using a broker. When he advertises the property Harvey : A.)Must disclose the fact the he has a real estate license in writing. B.) Must disclose name, address, and phone number of his broker C.)Since he is acting like a private citizen, need not disclose his license status D.)Under law is forbidden to sell his own home
Fines, suspension, revocation, or conditional licensing Only the commission may suspend or revoke a license. The division does not have this authority.
Hearings held by the NREC may result in
Five years after close of escrow or last activity for any transaction Five years after close of escrow or last activity for any transaction
How many years must a broker keep records after the last activity regarding residential and commercial property
Broker can lose his license This is fraud by the broker, knowingly withholding the true sales price.
If a broker tells a lender that the sales price on a property is more than the actual sales price, the
D.) legal in the state of Nevada if the seller agrees to it A net listing is legal in Nevada. The broker will receive as commission any monies over a set sales price. This would pit the broker's commission against the seller's net.
In Nevada listings based on "net price" are always: A.)Permissible with approval from the commission B.)Illegal in the state of Nevada C.)advisable D.)Legal in the state of Nevada if the seller agrees to it
C.) Both parties give their informed consent to the dual compensation in writing Both parties to the contract must agree to this arrangement for payment.
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 in writing D.)Both parties are represented by attorneys
Legal in Nevada with seller's consent A net listing will pay the broker a commission on any monies over a set sales price.
Listings based on a ''net price'' are Always available Illegal in all states Legal in Nevada with seller's consent Legal, but must be approved by the commission
D.) Mary Jane has withdrawn the broker's authority to sell the property and may be liable Mary Jane may be liable because she breached her promise to the broker.
Mary Jane listed her house for sale with Jim Cricket a Nevada broker on March 1. The agreement was to list for five months. In May, Mary Jane decided that she did not want to sell the house after all. A.)Since it was the seller that canceled the agreement there are no penalties. B.)They will have to contact the Nevada Real Estate Commission to find out if the seller's action is justified C.)Mary Jane must keep her property on the market till Oct 1 D.)Mary Jane has withdrawn the broker's authority to sell the property and may be liable
By the state governor The Governor appoints the 5 member commission
Members of the real estate commission are selected
Managing real estate as an employee for an owner The manager must only manage this owner's property and no other Nevada properties.
Real Estate Licensure is required for all of the following EXCEPT: A.) Collecting rent for multiple clients for a NV Broker B.)Selling real estate C.)Managing real estate as an employee for an owner D.) Reselling a manufactured home and the land it is on.
always negotiable between client and broker All commissions are negotiable. There is never a going rate average.
Real estate commissions in the state of Nevada are:
The new buyer does not have the right to cancel a signed contract in this situation There is no provision in the situation to cancel the contract such as a SRPD or CIC documents.
The owner of the home bought the home 7 years previous from the developer and has lived there ever since. A new buyer has a right to cancel the contract within?
Three years
The term of service for a real estate commissioner is?
No, a brokerage must have a physical address that is correctly zoned. Residential is not a correctly zoned area.
Thomas, a Nevada broker wants to open an office in his home. Can he legally do this?
hold the earnest money deposit in a secure place in brokers office until offer is accepted then deposit into the brokers trust account within one banking day. The broker must deposit earnest money from acceptance of the offer not immediately.
Under Nevada law, when a broker receives an earnest money deposit from a buyer payable to the broker, the broker should:
Identify the broker and may identify himself. The brokerage name must always be displayed with prominence in all advertising.
Wendell, a salesperson, wants to advertise several of his listings in a local real estate magazine. He must
B.) Two years out of the last four years The experience must be full time and verified.
What is the full-time experience requirement for Steve, a Nevada licensee, to become a broker or a branch manager as 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
one banking day after accepting the offer (The broker would have) one banking day after accepting the offer
When a broker receives funds on behalf of Mary Smith a principal (CLIENT) , they must be deposited In an escrow or trust account within:
The broker must downgrade to broker salesperson status The broker must downgrade to broker salesperson status
When an owner developer hires a broker, what must happen?
Stacey commingled client funds with personal funds. This is illegal
When does the commissioner have the right to revoke salespersons license ?
No specific ending date Any exclusive agency agreement must be in writing, have a set end date and no automatic renewal.
Which of the following could result in the suspension or revocation of a Nevada licensee's license regarding exclusive-listing agreements. A specified commission rate No broker protection clause A specific ending date No specific ending date
C.) A legal document of the property being sold
Which of the following need not appear in writing: A.)Proposed gross sales price of the property B.)A statement that the property must be shown to all prospective buyers regardless of race, religion, color etc. C.) A legal document of the property being sold D.)How long the listing has been listed
Most Nevada land is owned by the federal government. The federal government owns approximately 86% of the land in Nevada.
Which of the following statements is most often found to be true in Nevada? Most of the land in Nevada is privately owned. Most Nevada land is owned by the federal government. Most Nevada land is owned by Mining Companies. Most of Nevada's land is owned by the state of Nevada
A qualified intermediary An intermediary will facilitate a 1031 exchange
Who may handle 1031 exchanges?
$300,000 A minimum of $300,000 must be kept in the fund at all times. Any excess funds may be used for education and research.
The minimum balance of the real estate education, research, and recovery fund is?
A.) MNO Realty provides to the buyer the Duties Owed by a Nevada Real Licensee Form prior to signing a contract. A duties owed must accompany listings and contracts by the offer and acceptance.
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 MNO Realty can show the buyer the house if: A.) MNO Realty provides to the buyer the Duties Owed by a Nevada Real Licensee Form prior to signing a contract. B.)ABC Realty obtains MNO Realty's contract to subagent, and the buyer is given an agency disclosure notice, stating that ABC Realty represents the seller. C.) This cannot occur. D.) The buyer agrees to verbal agency.
To a $25,000 maximum recovery from ERRF. The fund will have a maximum payout of $25,000 per single judgment or $100,000 for class action.
A disgruntled buyer is awarded a judgment against a Nevada real estate licensee for violation of Fraud. In reference to the NV real estate ERRF, the disgruntled buyer has the right Under the license law to apply to the division for a monetary reward from the ERRF for the entire judgment amount in addition to court costs and attorney's fees. To a $25,000 maximum recovery from ERRF. To a maximum award in the amount of $50,000 from ERRF, including court costs and attorney's fees To file civil litigation against the Nevada licensee after being fully compensated from ERRF.
False, under no circumstances An agent may have multiple licenses from different states with a broker in that said state.
A licensed Real Estate Agent may hold multiple licenses with more than one Nevada broker.
B.) give the party or parties that will be signing the listing a signed, true , legible and correct copy at the time of signing or as soon as practical An agent must leave a copy at the time of signing or a reasonable time thereafter.
A salesperson or broker upon obtaining a listing is obligated to... A.) Cooperate with every real estate office wishing to participate in marketing the listed property whether or not they are members of MLS B.)Give the party or parties that will be signing the listing a signed, true , legible and correct copy at the time of signing or as soon as practical C.)Put ads in all the local newspapers at least 3 times a week D.)With specific guidelines established by the Nevada Real Estate Commission set up a listing file
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. In any real estate agency the agent must disclose the true market value of the property.
A seller told a broker that he wanted to make $60,000 when he sold his house. The broker sold the listing for $170,000. He gave the seller $60,000 and kept the rest. Which is correct: A.) As the seller's agent, the broker had a duty to sell the house for what he wanted as his commission 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.)The broker need not disclose to the seller the value of her house.
14 hours of pre-licensing instruction and 6 hours of continuing education The sales agent must also pass a state exam.
A time-share sales agent must complete which of the following education requirements?
D.) Explain contract documents to prospective buyers An unlicensed assistant may perform clerical duties but not negotiate or explain real estate documents to clients.
An unlicensed assistant working for a Nevada licensee may perform all of the following activities EXCEPT: A.) Compute commission checks B.)Assemble disclosure documents required for a closing C.)Prepare mailings and promotional materials D.) Explain contract documents to prospective buyers
C.) fill in the blanks on a preprinted form contracts used in their community A licensee may not practice law.
Broker salespersons who are not lawyers in Nevada may: A.) Suggest additional language to be added to a preprinted sales contracts by a seller or buyer B.)Sign a bill of sales on behalf of the seller after a sales contract has been signed C.)Fill in the blanks on a preprinted form contracts used in their community D.)Give explanations of the legal importance of a specific preprinted contract clauses to a buyer or seller
A.) Be a licensed broker and reside in another state The broker's license must be from another state also.
In order to obtain a Nevada cooperative broker's certificate, he or she must A.) Be a licensed broker and reside in another state B.) Establish a principal place of business in Nevada or be licensed under a resident Nevada broker C.) Take all education course requirements in Nevada D.)File an irrevocable consent agreement with the NREC
3 years
In the event of a housing discrimination, the charge must be filed with the Nevada Real Estate Division by
HUD: the Dept of Housing and Urban Development HUD will investigate and if guilty seek a remedy through an administrative hearing.
Jack Nimble believes that he has been illegally discriminated against because he is black. Jack may file a complaint with:
C.) He made a deal with a seller to accept a listing for a lot more than the normal commission rate. All commissions are negotiable. There is no normal rate.
Jack Smith is a broker in Las Vegas NV, which of the following is not grounds for revoking his license? A.) Having been convicted of fraud in district court B.)Falsely advertising in the local association of Realtors C.)He made a deal with a seller to accept a listing for a lot more than the normal commission rate. D.)He paid his employee's salaries from a trust account holding client monies.
Inform the owner in writing that Jack is a licensee of the brokerage before making an offer Jack must always disclose that he is a licensee in advertising, ownership or involvement in a real estate transaction.
Jack's broker took a listing for a beautiful, 5 bedroom 4 bath home. Jack has four children and decides the home is perfect for his family and wants to make an offer. Jack MUST
must display the name of the employing broker All advertising must display the brokerage name with prominence
Jim Banks a real estate licensee is advertising real property, He
B.) This account must be designated as a trust account The account must be a trust account but a separate account for each transaction is not required
John Smith a broker in Nevada established an account to hold money belonging to others. Find the correct answer: A.) Each transaction must have an individual account B.)This account must be designated as a trust account C.)In this case accounts may be labeled either "trust" or "general account" D.)He is not allowed to open the account in the same bank as his personal account
C.) Her brokerage name The Website must include the brokerage name.
Kim Allright is a broker that has built a Website advertising her office. What must she include on the site? A.) The names of active licensee's, their phone numbers and addresses B.)Nothing else needs to be disclosed C.)Her brokerage name D.) A list of all currently active agents, and her license number
D.) He hasn't paid his child support for 3 years Delinquent child support is grounds for suspension of a license. The other choices will be at the commission's discretion.
Nick Intime, a licensee must have his license suspended by the real estate commission for which of the following acts: a.) He commingled his sisters money /property with his own B.)He had a guaranteed sales plan, but failed to perform as promised. C.)Never balanced his trust account and not reported to Nevada Real Estate Division. D.) He hasn't paid his child support for 3 years
C.) Offering employment to a new licensee right after they pass the State and National exam. An agent may not offer real estate for sale without the owner's knowledge, encourage discrimination, or offer a gift under false pretenses.
Of the following actions which is considered legal and not a violation of license law? A.) Placing a "For Sale" sign in front of a house without sellers consent. B.) Encouraging a seller to not accept an offer because the buyer is Jewish C.)Offering employment to a new licensee right after they pass the State and National exam. D.)Falsely advertising that people attending a promotional presentation will receive a free gift without giving important details about visiting a subdivision
D.) John deposited earnest money into the firms trust account Broker John may deposit earnest money in a trust account, escrow or what parties agree to in writing
The Real Estate Division of Nevada can revoke or suspend broker John Smiths license for all of the following, EXCEPT A.) John went out to the owners property and displayed a "For Sale" sign without the owners consent B.) John doesn't keep records C.)John helped his friend Mary cheat on the licensing examination D.) John deposited earnest money into the firms trust account
