15 free questions from the Cinna RE Nevada real estate exam bank (90 in the app). Tap an answer to check it. The rationale opens right away.
In Nevada, when a broker actually uses funds from the trust account to pay the brokerage's office rent, the violation that has occurred is:
Answer: A. Conversion of trust funds
Conversion is the unauthorized use or misappropriation of client/trust funds for the broker's own benefit, such as paying business expenses with trust money. This is a serious violation that goes beyond mere commingling, because the broker has actually taken and used money that belongs to clients or customers.
A Nevada salesperson lets her license lapse and does not renew by the expiration date. Under NRED rules, what is the general consequence of failing to renew on time?
Answer: B. The license expires, and the licensee generally may not perform licensed activity until it is properly reinstated, often with a late/reinstatement fee
When a Nevada license is not renewed by expiration, it lapses and the licensee may not lawfully perform licensed activities until the license is reinstated. Reinstatement typically requires meeting CE requirements and paying applicable late/reinstatement fees. It is not automatic activity coverage, a broker upgrade, or an irreversible revocation.
A licensee in Nevada acts as a property manager for residential rentals. Generally, to perform property management for compensation on behalf of others in Nevada, the licensee must:
Answer: B. Hold an active real estate license and obtain a property management permit/authorization as required by NRED
Nevada regulates property management performed for others for compensation. A licensee generally must hold an active real estate license and obtain the Division-required property management permit/authorization. A plain business license alone is insufficient, and the activity is not unregulated.
Under Nevada law, when a salesperson receives an earnest-money deposit in connection with a transaction, what is the licensee required to do with those funds?
Answer: B. Deliver them promptly to the broker, who must place them in a properly designated trust account
In Nevada, all client and customer funds belong to the broker's trust (escrow) account, not to the salesperson. A salesperson who receives an earnest-money deposit must deliver it promptly to the employing broker, who is responsible for depositing it into a properly designated trust account. The salesperson never holds client money personally.
A Nevada salesperson is paid a commission for a closed sale. From whom may the salesperson lawfully accept that compensation?
Answer: B. From their employing/supervising broker
A Nevada salesperson must be compensated by the broker under whom they are licensed, not directly by the principals to the transaction.
In Nevada, when one brokerage represents both the buyer and the seller in the same transaction with both parties' informed written consent, the brokerage is acting as a:
Answer: A. Dual agent
Nevada permits dual agency (an agent or brokerage representing both parties) only with the prior written consent of both the buyer and the seller after disclosure.
In Nevada, a licensee who, with the informed written consent of both the buyer and the seller, represents both parties in the same transaction is acting as a:
Answer: C. Agent who represents both parties (dual agency by consent)
Nevada permits an agent to represent both the buyer and the seller in the same transaction only with the informed written consent of both. This is consensual dual agency; the agent must remain neutral on price and cannot advocate one client's interest over the other's confidential interests.
After a hearing, the Nevada Real Estate Commission finds a licensee committed fraud. Which range of disciplinary actions is available to the Commission?
Answer: B. Censure, fine, suspension, or revocation of the license
The Real Estate Commission's administrative remedies include reprimand/censure, administrative fines, suspension, and revocation of a license. The Commission is an administrative body; it cannot itself impose criminal imprisonment, although conduct may separately be referred for criminal prosecution.
Which written disclosure must a Nevada licensee provide to a client describing the obligations a licensee owes when entering into an agency relationship?
Answer: B. The Duties Owed by a Nevada Real Estate Licensee disclosure
Nevada licensees must provide the 'Duties Owed by a Nevada Real Estate Licensee' form, which spells out the statutory duties a licensee owes to clients and parties to a transaction.
Nevada's fair-housing protections build on the federal Fair Housing Act. Compared to the federal baseline of seven protected classes, Nevada's housing-discrimination law:
Answer: B. Includes additional protected characteristics, such as sexual orientation, gender identity or expression, and ancestry
Nevada extends fair-housing protection beyond the federal classes, adding characteristics such as sexual orientation, gender identity or expression, and ancestry. State law does not remove federal protections; it supplements them, and it applies to housing.
How must a Nevada licensee handle client or third-party funds, such as an earnest money deposit, received in a transaction?
Answer: B. Place them in the broker's trust (escrow) account, kept separate from the broker's own funds
Trust funds must be deposited into the broker's trust account and may not be commingled with the broker's personal or business operating funds.
A Nevada salesperson's license has been REVOKED by the Real Estate Commission. What is the immediate effect on the licensee's authority to act?
Answer: B. The licensee may not engage in any licensed real estate activity
Revocation terminates the license, so the person may not perform any activity requiring a real estate license, including completing pending deals, soliciting, or collecting compensation for licensed services. Suspension similarly halts licensed activity for its term; revocation ends the license outright.
An experienced licensee from another state wants to become licensed in Nevada. Which statement best describes Nevada's general approach to out-of-state applicants?
Answer: B. Nevada may credit qualifying out-of-state experience/education but still requires Nevada-specific law content and a Nevada application/exam component
Nevada does not grant blanket automatic reciprocity. An out-of-state applicant may receive credit for qualifying experience and education, but Nevada still requires coverage of Nevada-specific law and a Nevada application process (including a Nevada-law examination component). No one may practice in Nevada without proper Nevada licensure.
Nevada continuing education for real estate licensees is organized into required subject categories. Which of the following content areas is a mandated component of Nevada CE rather than a purely optional elective?
Answer: B. Agency, ethics, and Nevada law/legislative updates
Nevada CE is structured around required categories that include agency, ethics, and Nevada law/legislative (statutory and regulatory) updates, ensuring licensees stay current on duties owed and changes in state law. Unrelated topics like interior design or wellness are not part of the mandated CE framework.
Nevada requires licensees to provide a specific agency disclosure form at the start of a relationship that explains the licensee's statutory obligations to the client. This form is titled:
Answer: B. Duties Owed by a Nevada Real Estate Licensee
The 'Duties Owed by a Nevada Real Estate Licensee' form is the Nevada-mandated disclosure that informs the client of the statutory duties the licensee owes, such as exercising reasonable skill and care, disclosing material facts, and accounting for funds. The other titles are not Nevada forms.
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