1. Under Nevada law, which state agency is responsible for regulating real estate licensees and enforcing Nevada's real estate licensing statutes?
- A. Nevada Department of Commerce
- B. Nevada Real Estate Division (NRED) ✓
- C. Nevada Department of Business and Industry
- D. Nevada Real Estate Commission
The Nevada Real Estate Division (NRED), operating under the Department of Business and Industry, is the state agency charged with licensing real estate professionals and enforcing NRS Chapter 645 and related regulations.
2. A Nevada real estate salesperson license must be renewed on what cycle?
- A. Annually on the licensee's birthday
- B. Every two years ✓
- C. Every three years
- D. Every four years
Under NRS 645.780, Nevada real estate salesperson and broker-salesperson licenses are renewed on a two-year cycle. The expiration date is typically tied to the licensee's birth month in the renewal year.
3. Which of the following activities requires a Nevada real estate license?
- A. A property owner selling their own single-family home
- B. A licensed attorney managing rental properties as part of their legal practice
- C. A person who, for compensation, lists another party's property for sale ✓
- D. A resident manager employed full-time at an apartment complex
NRS 645.030 defines activities requiring a license to include listing, selling, buying, or negotiating real estate transactions for compensation on behalf of another. The other options fall under statutory exemptions in NRS 645.040.
4. How many hours of continuing education must a Nevada real estate salesperson complete during each renewal period?
- A. 12 hours
- B. 15 hours
- C. 18 hours
- D. 24 hours ✓
Nevada real estate salespersons have traditionally been required to complete 24 hours of approved continuing education for each two-year renewal period, including required/core subject areas such as agency, contracts, ethics, law/legislation, and risk reduction. The cited 18-hour requirement is not the Nevada salesperson renewal rule.
5. Under NRS Chapter 645, a Nevada broker who wishes to operate their own real estate brokerage must do which of the following?
- A. Hold a broker-salesperson license and work under a supervising broker
- B. Hold an active broker license and register the brokerage with NRED ✓
- C. Hold a salesperson license for at least five years before applying
- D. Obtain approval from the Nevada Real Estate Advisory Commission before opening
Only a licensee holding an active broker license (not a broker-salesperson license) may own and operate their own brokerage in Nevada. The brokerage must also be registered with NRED under NRS 645.310.
6. What is the minimum amount of active experience as a salesperson or broker-salesperson required before a Nevada licensee may apply for a broker license?
- A. One year within the past three years
- B. Two years within the past four years ✓
- C. Three years within the past five years
- D. Five years within the past ten years
For a Nevada broker license, the applicant must show the required active experience as a licensed salesperson or broker-salesperson for at least 2 years within the 4 years immediately preceding the application. Therefore, the correct choice is two years within the past four years, not three years within the past five years.
7. When a Nevada real estate salesperson changes their employing broker, what must occur for the salesperson's license to remain active?
- A. The salesperson must pass a state law examination before transferring
- B. The new broker must file a transfer application with NRED and pay the required fee ✓
- C. The salesperson may begin working immediately and file paperwork within 30 days
- D. NRED automatically transfers the license upon notification from the salesperson only
Under NRS 645.280, a salesperson's license is issued through their employing broker. A transfer requires the new broker to submit a transfer application to NRED with the required fee before the salesperson may legally practice under the new broker.
8. Under Nevada law, which of the following is grounds for NRED to revoke or suspend a real estate license?
- A. Failing to close a transaction that the buyer later withdrew from
- B. Representing a buyer and seller in the same transaction with written consent
- C. Commingling client funds with the licensee's personal funds ✓
- D. Advertising a property without the seller's street address
NRS 645.633 lists commingling — mixing client or trust funds with a licensee's personal funds — as a specific ground for disciplinary action including suspension or revocation. Disclosed dual agency with consent is permitted; the other options are not statutory violations.
9. Nevada's Real Estate Education, Research and Recovery Fund is designed primarily to:
- A. Fund continuing education courses approved by NRED
- B. Reimburse consumers who suffer monetary losses due to licensee fraud or misrepresentation ✓
- C. Compensate real estate instructors for developing exam preparation materials
- D. Provide grants to Nevada counties for housing development
The Recovery Fund under NRS 645.841–645.8494 provides a mechanism for members of the public who have obtained a final civil judgment against a licensee for fraud, misrepresentation, or deceit to recover monetary damages when the licensee cannot satisfy the judgment.
10. A Nevada real estate license applicant who has been convicted of a felony involving fraud may be denied a license. Under NRS 645, which body has the authority to deny such an application?
- A. The Nevada Legislature's Committee on Commerce and Labor
- B. The Nevada Real Estate Division Administrator ✓
- C. The Nevada Gaming Control Board
- D. The Nevada Attorney General's office
The Administrator of the Nevada Real Estate Division has statutory authority under NRS 645.380 to deny a license application based on factors including criminal convictions involving moral turpitude, fraud, or misrepresentation.