Before you read
Test yourself first: 5 questions
Question 1 of 5
A Nevada licensee who commingles a client's trust funds with the broker's own operating funds has most directly violated rules concerning:
Answer: B. Commingling client trust funds with the broker's own money is a violation of Nevada's trust account handling requirements and may subject the licensee to discipline.
Question 2 of 5
Under Nevada brokerage-operations rules, who bears ultimate responsibility for supervising the trust account and the advertising practices of the licensees in a brokerage?
Answer: B. The employing broker is responsible for supervising the brokerage's operations, including the trust account, recordkeeping, and the advertising of all licensees affiliated with the brokerage. While salespersons must comply, accountability for proper handling of funds and compliant advertising ultimately rests with the broker.
Question 3 of 5
How must a Nevada licensee handle client or third-party funds, such as an earnest money deposit, received in a transaction?
Answer: B. 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.
Question 4 of 5
A Nevada salesperson deposits a buyer's earnest money into the salesperson's personal checking account 'just temporarily' to cover the broker's vacation. This is BEST described as which prohibited act?
Answer: A. Client funds such as earnest money must be handled through the broker's trust/escrow account, not a licensee's personal account. Mixing client money with personal funds is commingling, and using it is conversion. Both are grounds for discipline regardless of intent to return it.
Question 5 of 5
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. 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.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
To keep a license active in Nevada, salespersons must renew before expiration and complete the required continuing education through state-approved courses. Failure to renew on time or to complete the required education can result in the license lapsing and the inability to lawfully conduct real estate activity.
Handling Client Funds and License Renewal in Nevada: FAQs
Is Handling Client Funds and License Renewal in Nevada on the real estate exam?
Yes. State License Law is a scored domain on the Nevada real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Nevada test this differently?
Nevada applies its own license law on top of the national portion. This page covers the Nevada rules specifically, which is what the state section of your exam tests.
