Nevada · state portion

Free Nevada Contracts practice questions

10 original questions with full explanations. 9 of the 40 scored state-portion questions (about 23%) come from this area.

1. 1

   In Nevada, who is responsible for preparing the settlement statement in a real estate transaction?

   • A. The broker
   • B. The salesperson
   • C. The lender
   • D. The title company
   Show answer & explanation

   Answer: D

   The title company is typically responsible for preparing the settlement statement, which outlines the terms of the transaction, including the purchase price, closing costs, and any credits or debits.

2. 2

   A Nevada real estate transaction involves a cash sale with no financing contingency. What is the typical timeline for the buyer to deliver the earnest money deposit?

   • A. Within 24 hours of contract execution
   • B. At the time of closing
   • C. Within 10 days of contract execution
   • D. Within 3 days of contract execution
   Show answer & explanation

   Answer: D

   In Nevada, the buyer typically has 3 days to deliver the earnest money deposit after the contract is executed.

3. 3

   A Nevada real estate salesperson charges an advance fee to a client. What is the salesperson required to do?

   • A. Deposit the fee into the broker's trust account
   • B. Use the fee to pay for marketing expenses
   • C. Split the fee with the broker
   • D. Provide a written disclosure to the client
   Show answer & explanation

   Answer: D

   In Nevada, a salesperson who charges an advance fee must provide a written disclosure to the client, as advance fees are regulated in the state.

4. 4

   A buyer and seller have signed a purchase agreement, and the buyer has deposited earnest money into the broker's trust account. What is the next step regarding the earnest money?

   • A. The salesperson should hold the earnest money until the transaction closes
   • B. The broker should commingle the earnest money with their personal funds
   • C. The seller should be given the earnest money as a deposit
   • D. The earnest money should be held in the broker's trust account until the transaction closes or is terminated
   Show answer & explanation

   Answer: D

   The earnest money should be held in the broker's trust account until the transaction closes or is terminated.

5. 5

   A Nevada broker enters into a buyer representation agreement with a client. What is the primary purpose of this document?

   • A. To establish the sales price of a property
   • B. To transfer ownership of a property
   • C. To secure financing for the buyer
   • D. To define the scope of services to be provided by the broker
   Show answer & explanation

   Answer: D

   The buyer representation agreement outlines the terms of the relationship between the broker and the buyer, including the services to be provided and the compensation to be paid.

6. 6

   A Nevada salesperson represents a buyer in a transaction. What is the primary purpose of the buyer representation agreement?

   • A. To establish the sales price of the property
   • B. To transfer ownership of the property
   • C. To disclose known defects in the property
   • D. To define the terms of the brokerage relationship
   Show answer & explanation

   Answer: D

   The buyer representation agreement outlines the terms of the brokerage relationship, including the scope of services, duration, and compensation.

7. 7

   In Nevada, how long does a buyer typically have to review and approve the title report and inspection reports before closing?

   • A. 1 day
   • B. 5 days
   • C. The timeframe is negotiated between the buyer and seller
   • D. 10 days
   Show answer & explanation

   Answer: D

   While the timeframe can be negotiated, 10 days is a common period for the buyer to review these reports.

8. 8

   A Nevada real estate salesperson is preparing a settlement statement for a residential transaction. What information must be included on this statement?

   • A. The sales price of the property
   • B. The buyer's financing terms
   • C. The seller's net proceeds
   • D. All of the above
   Show answer & explanation

   Answer: D

   A settlement statement in Nevada must include the sales price of the property, the buyer's financing terms, the seller's net proceeds, and other relevant details to ensure an accurate accounting of the transaction.

9. 9

   A Nevada real estate salesperson prepares a residential purchase agreement. What is the primary purpose of including a financing contingency in this contract?

   • A. To ensure the seller can obtain financing for the sale
   • B. To specify the terms of the seller's financing for the buyer
   • C. To allow the seller to back out of the contract if the buyer's financing falls through
   • D. To provide the buyer with an opportunity to secure financing for the purchase
   Show answer & explanation

   Answer: D

   The primary purpose of a financing contingency is to provide the buyer with an opportunity to secure financing for the purchase, allowing them to back out of the contract if they are unable to obtain financing.

10. 10

    A salesperson represents a buyer in a transaction. What document must the salesperson ensure is provided to the buyer in a common-interest community?

    • A. The resale package
    • B. The Seller's Real Property Disclosure Form
    • C. The settlement statement
    • D. The brokerage agreement
    Show answer & explanation

    Answer: A

    Nevada law requires that buyers in common-interest communities be provided with a resale package, which includes certain disclosures about the community.