Question 1
A Nevada property manager collects first month's rent, last month's rent, and a security deposit from a new tenant. Under NRS 118A.242, how must the security deposit be characterized relative to the last month's rent prepayment?
- A. They are legally interchangeable; the landlord may apply either amount to any unpaid obligation at lease end.
- B. The last month's rent prepayment is not considered a security deposit and may only be applied to rent for the final month of tenancy.
- C. Both amounts are considered security deposits and are collectively subject to the three-times-monthly-rent statutory cap. ✓ Answer
- D. The last month's rent prepayment automatically converts to a security deposit if the tenant vacates without notice.
Explanation: Under NRS 118A.242, Nevada limits the total security a landlord may demand or receive, including a security deposit and any last month's rent, to no more than three months' periodic rent. A prepaid last month's rent is therefore included in the statutory security-deposit cap rather than being wholly separate from the security deposit for purposes of the limit.
Question 2
A Nevada residential tenant on a month-to-month tenancy receives a 30-day notice to terminate from the landlord. The tenancy has been in effect for only 8 months. Under NRS 40.251, which statement is correct?
- A. The notice is valid because 30 days is sufficient for any month-to-month tenancy regardless of duration. ✓ Answer
- B. The notice is invalid because Nevada requires 45 days for all month-to-month terminations.
- C. The notice is valid only if the landlord provides a stated cause for termination.
- D. The notice is invalid because Nevada requires 60 days notice for tenancies that have lasted more than 6 months.
Explanation: Under NRS 40.251, a landlord may terminate a month-to-month tenancy without cause by giving at least 30 days' written notice if the tenancy has lasted less than 1 year. If the tenancy has lasted 1 year or more, the required notice is generally 60 days. Because this tenancy has lasted only 8 months, a 30-day notice is sufficient, but it is not true that 30 days is sufficient regardless of duration.
Question 3
Under Nevada Administrative Code (NAC) Chapter 645, a property manager must maintain complete and accurate property management records for a minimum of how many years after the termination of the management agreement?
- A. 1 year
- B. 3 years
- C. 5 years ✓ Answer
- D. 7 years
Explanation: NAC 645.845 requires a broker engaged in property management to maintain all records related to the management of property for at least 5 years after the termination of the management agreement. This includes all receipts, disbursements, ledgers, and trust account records. NRED may audit these records during that retention period.
Question 4
A Las Vegas property manager drafts a new 12-month residential lease for an apartment complex. Which of the following clauses, if included, would be void and unenforceable under NRS 118A.220 because it is against Nevada public policy?
- A. A clause stating that if either party sues over the lease, the prevailing party may recover reasonable attorney's fees
- B. A clause authorizing the landlord's attorney to confess judgment against the tenant for any claim arising out of the rental agreement ✓ Answer
- C. A clause imposing a late fee of 4 percent of the monthly rent when rent is more than three days late
- D. A clause requiring the tenant to carry renter's insurance and name the landlord as an additional insured
Explanation: NRS 118A.220(1) prohibits a residential rental agreement from providing that the tenant (a) waives or foregoes rights or remedies under Chapter 118A, (b) authorizes any person to confess judgment on a claim arising out of the rental agreement, (c) agrees to pay the landlord's attorney's fees (other than a mutual prevailing-party fee clause), or (d) exculpates or indemnifies the landlord for liability arising from the landlord's own acts or omissions. Subsection 2 declares any such provision void as against public policy and unenforceable. A confession-of-judgment clause falls squarely within (b). A mutual prevailing-party attorney's fee clause is expressly permitted by (c); a late fee not exceeding 5 percent of periodic rent is permitted under NRS 118A.210; and a renter's insurance requirement is not among the prohibited provisions.
Question 5
A Nevada property management company manages a residential complex and its broker-owner dies unexpectedly. Under NRS Chapter 645, what happens to the property management agreements held by that brokerage?
- A. All agreements automatically transfer to the supervising salesperson who has the most seniority.
- B. The agreements remain valid indefinitely until the property owners take action to cancel them.
- C. The agreements are terminated by operation of law because a property management agreement is a personal services contract tied to the broker's license. ✓ Answer
- D. NRED assumes temporary control of the agreements until a new qualifying broker is designated.
Explanation: Under NRS Chapter 645, a property management agreement is a personal services contract that is legally tied to the licensed broker who executed it. When the broker dies, the brokerage's license lapses and the agreements are terminated by operation of law. Property owners must enter into new agreements with another licensed broker. Salespersons and broker-salespersons cannot independently hold or assume management agreements.
Question 6
Under NRS Chapter 118A, a Nevada landlord who seeks to enter a tenant's dwelling for non-emergency repairs must provide advance written notice of at least how many hours before entry?
- A. 12 hours
- B. 24 hours ✓ Answer
- C. 48 hours
- D. 72 hours
Explanation: NRS 118A.330 requires a landlord to give at least 24 hours advance written notice before entering a dwelling unit for non-emergency repairs or inspections. Entry must occur at a reasonable time. This 24-hour minimum is a specific Nevada statutory requirement distinct from the general landlord-tenant principles of other states.