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
Who has the authority to discipline a Nevada licensee for violations of real estate law, including suspending or revoking a license?
Answer: B. Disciplinary authority over Nevada licensees rests with the Real Estate Division and the Nevada Real Estate Commission, which can impose sanctions including suspension or revocation.
Question 3 of 5
If a Nevada licensee violates real estate law, which body has authority to discipline the license through actions such as suspension or revocation?
Answer: B. The Nevada Real Estate Division, together with the Real Estate Commission, enforces licensing law and may suspend, revoke, or otherwise discipline licensees.
Question 4 of 5
The body that adopts regulations, sets standards of professional conduct, and may discipline licensees in Nevada is the:
Answer: A. The Nevada Real Estate Commission adopts regulations, establishes professional conduct standards, and acts on disciplinary matters affecting licensees. The Division (NRED) carries out day-to-day administration and investigation, while the Commission has rulemaking and disciplinary authority.
Question 5 of 5
If, after a disciplinary hearing, the Nevada Real Estate Commission finds that a licensee violated the license law, which of the following sanctions may it impose?
Answer: A. After a hearing with due process, the Commission may discipline a licensee by suspending or revoking the license, imposing an administrative fine, or ordering other remedies within its authority. Criminal imprisonment and property seizure are not administrative sanctions the Commission imposes; those are matters for the courts.
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What you need to know
Sanctions can include denial, suspension, or revocation of a license, as well as administrative fines per violation. Grounds for discipline commonly involve misrepresentation, fraud, dishonest dealing, and mishandling of client trust funds. Licensees are entitled to notice and a hearing before discipline becomes final, and Nevada's Real Estate Education, Research and Recovery Fund can compensate eligible consumers for certain unsatisfied judgments arising from a licensee's wrongful conduct.
Nevada License Discipline & Enforcement: FAQs
Is Nevada License Discipline & Enforcement 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.
