NRES - Nevada Real Estate Salesperson Exam

Question 1: A seller hires a broker to act on the seller's behalf in selling a home, placing special trust and confidence in the broker to represent the seller's interests in dealings with prospective buyers. What is this relationship of trust between the two parties called?

An escrow arrangement

An agency relationship

A subdivision plat

A promissory note

Question 2: During a transaction, a broker represents the seller as principal but also works with an unrepresented buyer, to whom the broker owes honesty, fair dealing, and disclosure of known material facts, but not advice or loyalty. What is this unrepresented party called?

The principal

A subagent

A fiduciary

The customer

Question 3: Under the common law of agency, an agent owes a principal six fiduciary duties, which many students remember with a single acronym covering care, obedience, loyalty, disclosure, accounting, and confidentiality. Which acronym is used to remember these six duties?

COLD-AC

DUST

MARIA

PITT

Question 4: An agent must place the principal's interests above those of everyone else, including the agent's own self-interest, and must avoid conflicts such as buying the listed property without first disclosing it and obtaining consent. Which fiduciary duty does this describe?

The duty of care

The duty of disclosure

A ministerial act

The duty of loyalty

Question 5: A seller's agent must not reveal the seller's personal information, such as a willingness to accept less than the listing price or an urgent need to sell, unless the seller has authorized it. Which fiduciary duty does this protect?

The duty of confidentiality

The duty of care

The duty of disclosure

A gratuitous agency

Question 6: An agent must act in good faith and follow the principal's lawful instructions in carrying out the agency, but may refuse instructions that are unlawful or unethical, and is liable for exceeding the authority granted. Which fiduciary duty does this describe?

The duty of care

The duty of disclosure

The duty of obedience

A ministerial act

Question 7: An agent must be able to report the status of all funds received from or on behalf of a principal, must promptly deposit client money into a trust account, and may never mix that money with personal funds. Which fiduciary duty does this describe?

The duty of care

The duty of disclosure

A ministerial act

The duty of accounting

Question 8: A broker is hired by a seller with authority limited to finding a qualified buyer for one particular property, and the broker cannot bind the seller to a contract. What type of agent, authorized for one specific transaction only, is this?

A special agent

A subagent

A gratuitous agent

A facilitator

Question 9: A property manager is hired to handle the ongoing operation of an owner's apartment building, with authority to represent the owner in a broad range of matters connected to managing that property. What type of agent, with broad ongoing authority, is this?

A subagent

A gratuitous agent

A general agent

A facilitator

Question 10: A court appoints a guardian with authority to do virtually anything the ward could do personally, including managing both the person and all the property of the ward. What type of agent, with essentially unlimited authority, is this?

A subagent

A gratuitous agent

A facilitator

A universal agent

Question 11: In a single transaction, one broker ends up representing both the seller and the buyer at the same time, owing equal loyalty to two principals whose interests conflict. What is this arrangement, permitted only with the informed consent of both parties, called?

Single agency

A gratuitous agency

Dual agency

A subagency

Question 12: A sales associate representing the seller quietly advises a buyer on how low to offer, unintentionally starting to represent the buyer too, and tells neither party. Considering the consequences of this hidden situation, which of the following BEST describes the risk to the associate?

The arrangement is fully lawful

The associate owes neither party anything

It is a permitted facilitator role

The deal may be rescinded

Question 13: To handle an in-house sale, a broker assigns one sales associate to represent the seller and a different sales associate in the same firm to represent the buyer, with both parties consenting. What is this arrangement, using separately assigned associates, called?

Single agency

A gratuitous agency

Designated agency

A subagency

Question 14: A sales associate describes an ordinary house as charming and beautiful, offering enthusiastic personal opinions meant to cast the property in a positive light rather than stating any verifiable facts. What is this legal exaggeration of a property's benefits called?

A latent defect

A binding warranty

An arm's length sale

Puffing

Question 15: A broker who knows a house sits on a former landfill deliberately conceals that fact and assures a worried buyer there are no problems, intending the buyer to rely on the false assurance and buy. What is this intentional deception about a material fact called?

A latent defect

An honest opinion

Fraud

A ministerial act

Question 16: For a contract to be fully valid, it must satisfy several minimum requirements, including agreement between the parties, something of value exchanged, capable parties, genuine consent, and a lawful objective. Which of the following is one of these essential elements of a valid contract?

Offer and acceptance

A recorded plat

A title search

An appraisal report

Question 17: One party proposes definite terms and the other party agrees to be bound by those exact terms, producing complete agreement in which both sides genuinely share the same understanding of the deal's purpose and terms. What is this meeting of the minds called?

A legal purpose

Genuine capacity

A contingency

Mutual assent

Question 18: A valid contract must be supported by something of legal value that each party gives or promises as an inducement to enter the deal, whether a sum of money or even a promise of love and affection between relatives. What is this element called?

Consideration

A contingency

An addendum

A binder

Question 19: For a contract to bind the parties, each must be old enough and mentally able to understand the nature and consequences of the agreement, which in most states means being at least eighteen years old and of sound mind. Which contract element is this?

A legal purpose

Genuine consent

Legally competent parties

A contingency

Question 20: A listing contract is signed using a forged name in place of a real party, so it lacks a genuine essential element and has no legal force or effect at all; in truth it was never a contract. How is such an agreement described?

Void

Valid

Enforceable

Binding

NRES Nevada Real Estate Salesperson Exam - Set 4 - Part 1

Question 1: A seller hires a broker to act on the seller's behalf in selling a home, placing special trust and confidence in the broker to represent the seller's interests in dealings with prospective buyers. What is this relationship of trust between the two parties called?

Question 2: During a transaction, a broker represents the seller as principal but also works with an unrepresented buyer, to whom the broker owes honesty, fair dealing, and disclosure of known material facts, but not advice or loyalty. What is this unrepresented party called?

Question 3: Under the common law of agency, an agent owes a principal six fiduciary duties, which many students remember with a single acronym covering care, obedience, loyalty, disclosure, accounting, and confidentiality. Which acronym is used to remember these six duties?

Question 4: An agent must place the principal's interests above those of everyone else, including the agent's own self-interest, and must avoid conflicts such as buying the listed property without first disclosing it and obtaining consent. Which fiduciary duty does this describe?

Question 5: A seller's agent must not reveal the seller's personal information, such as a willingness to accept less than the listing price or an urgent need to sell, unless the seller has authorized it. Which fiduciary duty does this protect?

Question 6: An agent must act in good faith and follow the principal's lawful instructions in carrying out the agency, but may refuse instructions that are unlawful or unethical, and is liable for exceeding the authority granted. Which fiduciary duty does this describe?

Question 7: An agent must be able to report the status of all funds received from or on behalf of a principal, must promptly deposit client money into a trust account, and may never mix that money with personal funds. Which fiduciary duty does this describe?

Question 8: A broker is hired by a seller with authority limited to finding a qualified buyer for one particular property, and the broker cannot bind the seller to a contract. What type of agent, authorized for one specific transaction only, is this?

Question 9: A property manager is hired to handle the ongoing operation of an owner's apartment building, with authority to represent the owner in a broad range of matters connected to managing that property. What type of agent, with broad ongoing authority, is this?

Question 10: A court appoints a guardian with authority to do virtually anything the ward could do personally, including managing both the person and all the property of the ward. What type of agent, with essentially unlimited authority, is this?

Question 11: In a single transaction, one broker ends up representing both the seller and the buyer at the same time, owing equal loyalty to two principals whose interests conflict. What is this arrangement, permitted only with the informed consent of both parties, called?

Question 12: A sales associate representing the seller quietly advises a buyer on how low to offer, unintentionally starting to represent the buyer too, and tells neither party. Considering the consequences of this hidden situation, which of the following BEST describes the risk to the associate?

Question 13: To handle an in-house sale, a broker assigns one sales associate to represent the seller and a different sales associate in the same firm to represent the buyer, with both parties consenting. What is this arrangement, using separately assigned associates, called?

Question 14: A sales associate describes an ordinary house as charming and beautiful, offering enthusiastic personal opinions meant to cast the property in a positive light rather than stating any verifiable facts. What is this legal exaggeration of a property's benefits called?

Question 15: A broker who knows a house sits on a former landfill deliberately conceals that fact and assures a worried buyer there are no problems, intending the buyer to rely on the false assurance and buy. What is this intentional deception about a material fact called?

Question 16: For a contract to be fully valid, it must satisfy several minimum requirements, including agreement between the parties, something of value exchanged, capable parties, genuine consent, and a lawful objective. Which of the following is one of these essential elements of a valid contract?

Question 17: One party proposes definite terms and the other party agrees to be bound by those exact terms, producing complete agreement in which both sides genuinely share the same understanding of the deal's purpose and terms. What is this meeting of the minds called?

Question 18: A valid contract must be supported by something of legal value that each party gives or promises as an inducement to enter the deal, whether a sum of money or even a promise of love and affection between relatives. What is this element called?

Question 19: For a contract to bind the parties, each must be old enough and mentally able to understand the nature and consequences of the agreement, which in most states means being at least eighteen years old and of sound mind. Which contract element is this?

Question 20: A listing contract is signed using a forged name in place of a real party, so it lacks a genuine essential element and has no legal force or effect at all; in truth it was never a contract. How is such an agreement described?

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