NEVADA REAL ESTATE EXAM
QUESTIONS AND ANSWERS (GRADED A)
NEVADA REAL ESTATE SALESPERSON LICENSING
EXAMINATION
NEVADA REVISED STATUTES (NRS) CHAPTER 645 | NEVADA
ADMINISTRATIVE CODE (NAC) CHAPTER 645
PSI/PEARSON VUE TESTING | VERIFIED | CURRENT CYCLE
INTRODUCTION
This comprehensive practice examination is designed for real estate license candidates preparing for the
Nevada Real Estate Salesperson Exam for the current licensing cycle. The exam is administered by PSI
(Pearson VUE) and consists of 120 scored questions (80 national, 40 Nevada-specific) plus 5-10 pretest
questions. Candidates must achieve a score of 75% or higher on both portions to pass.
Section 1: Nevada Real Estate Law and Licensing (Questions 1-20)
Q1. The primary mission of the Nevada Real Estate Division includes all of the following EXCEPT:
A. Protecting the public through fair regulation of real estate professionals
B. Providing licensure and registration services for real estate professionals
C. Setting maximum commission rates for real estate transactions
D. Enforcing compliance with Nevada real estate laws through education and discipline
[CORRECT] C. Setting maximum commission rates for real estate transactions
Rationale:
The Nevada Real Estate Division is statutorily charged with protecting the public and regulating real
estate professionals through licensure, registration, education, and enforcement (NRS 645.160).
Commission rates are set by market forces; any attempt by the Division or licensees to set fixed
commission rates would constitute a violation of federal and state antitrust laws (price-fixing).
Q2. Under current Nevada law, a real estate salesperson license must be renewed:
A. Annually, by December 31st of each year
B. Biennially, on the last day of the licensee's birth month
C. Every three years from the date of initial licensure
,D. Biennially, on the anniversary of the first licensure date
[CORRECT] B. Biennially, on the last day of the licensee's birth month
Rationale:
NRS 645.390 requires licenses to be renewed biennially (every two years) on the last day of the
licensee's birth month.
This "birth month renewal" system was implemented to distribute renewal workload evenly throughout
the year rather than having all renewals due simultaneously.
Q3. How many total continuing education (CE) hours are required for each biennial renewal period, and
what are the specific mandatory subject areas?
A. 12 hours total; 3 hours Nevada law, 2 hours ethics, 1 hour risk management, and 6 hours elective
B. 15 hours total; 6 hours Nevada law, 3 hours ethics, and 6 hours elective
C. 8 hours total; 4 hours Nevada law and 4 hours elective topics
D. 24 hours total; 12 hours Nevada law, 6 hours ethics, and 6 hours risk management
[CORRECT] A. 12 hours total; 3 hours Nevada law, 2 hours ethics, 1 hour risk management, and 6 hours
elective
Rationale:
NAC 645.410 mandates 12 CE hours per biennial renewal period, including:
3 hours Nevada law (updates to NRS 645 and NAC 645)
2 hours ethics (professional standards and Code of Ethics)
1 hour risk management (reducing liability exposure)
6 hours elective (any approved real estate-related courses)
Q4. Which of the following activities requires a Nevada real estate license?
A. A property manager managing 10 rental units for a single owner for a monthly fee
B. An attorney-in-fact acting under a valid power of attorney for a family member
C. A trustee selling property under the terms of a deed of trust
D. A person selling their own personal residence without representation
[CORRECT] A. A property manager managing 10 rental units for a single owner for a monthly fee
Rationale:
NRS 645.020 defines "broker" broadly to include anyone who for compensation engages in property
management.
,NRS 645.030(4) requires a property management permit for managing real property for others.
Exemptions under NRS 645.030 include: attorneys-in-fact (B), trustees acting under specific authority
(C), and owners selling their own property (D).
Q5. The Nevada Real Estate Commission has the authority to do all of the following EXCEPT:
A. Adopt regulations to administer NRS Chapter 645
B. Establish pre-licensing education requirements
C. Issue real estate licenses directly to applicants
D. Conduct disciplinary hearings for license violations
[CORRECT] C. Issue real estate licenses directly to applicants
Rationale:
While the Commission (NRS 645.140) has quasi-legislative authority to adopt regulations (A), establish
education standards (B), and quasi-judicial authority to conduct disciplinary hearings (D), licenses are
actually issued by the Administrator of the Real Estate Division (NRS 645.190), not the Commission itself.
The Commission makes policy; the Division administers licensing.
Q6. A non-resident licensee from a state that has a reciprocal agreement with Nevada wishes to obtain a
Nevada license. Which of the following is TRUE regarding reciprocity?
A. The non-resident is exempt from all Nevada-specific education requirements
B. The non-resident must pass only the Nevada state portion of the examination
C. The non-resident must maintain an active license in their home state to keep Nevada license active
D. Nevada has full reciprocity with all 50 states
[CORRECT] C. The non-resident must maintain an active license in their home state to keep Nevada
license active
Rationale:
NRS 645.360 allows the Commission to enter reciprocal agreements with other states.
Current reciprocity agreements (primarily with neighboring states) typically require the applicant to pass
the Nevada state law portion of the exam (not exempt from it), and must maintain their home state
license in good standing or the Nevada license becomes invalid.
Nevada does not have reciprocity with all states (D is false).
Q7. A broker-salesperson differs from a salesperson in that a broker-salesperson:
A. May operate their own brokerage without supervision
B. Must work under the supervision of a employing broker but has met the additional education and
experience requirements for a broker's license
, C. Is exempt from continuing education requirements
D. May accept commissions directly from clients
[CORRECT] B. Must work under the supervision of a employing broker but has met the additional
education and experience requirements for a broker's license
Rationale:
A broker-salesperson (NRS 645.020(2)) has qualified for a broker's license but chooses to work under
another broker's supervision rather than opening their own brokerage.
They cannot operate independently (A), are not exempt from CE (C), and must receive commissions
through their employing broker (D).
Q8. Under NRS 645.300, an applicant for a salesperson license must complete how many college-level
semester units (or equivalent) of pre-licensing education?
A. 45 hours of approved real estate courses
B. 90 hours of approved real estate courses (45 hours Real Estate Principles, 45 hours Real Estate Law)
C. 120 semester units of college education
D. 60 hours of general business education
[CORRECT] B. 90 hours of approved real estate courses (45 hours Real Estate Principles, 45 hours Real
Estate Law)
Rationale:
NRS 645.300 and NAC 645.304 require 90 hours total of approved pre-licensing education:
45 hours in Real Estate Principles
45 hours in Real Estate Law (must include Nevada-specific law)
These requirements ensure competency in both general real estate knowledge and Nevada-specific
regulations.
Q9. If a licensee fails to renew their license by the expiration date but within 30 days after expiration,
what is required for late renewal?
A. Payment of the standard renewal fee only
B. Payment of the renewal fee plus a late penalty fee and completion of continuing education
requirements
C. Automatic license suspension requiring re-application
D. A written examination on current law changes
[CORRECT] B. Payment of the renewal fee plus a late penalty fee and completion of continuing
education requirements
QUESTIONS AND ANSWERS (GRADED A)
NEVADA REAL ESTATE SALESPERSON LICENSING
EXAMINATION
NEVADA REVISED STATUTES (NRS) CHAPTER 645 | NEVADA
ADMINISTRATIVE CODE (NAC) CHAPTER 645
PSI/PEARSON VUE TESTING | VERIFIED | CURRENT CYCLE
INTRODUCTION
This comprehensive practice examination is designed for real estate license candidates preparing for the
Nevada Real Estate Salesperson Exam for the current licensing cycle. The exam is administered by PSI
(Pearson VUE) and consists of 120 scored questions (80 national, 40 Nevada-specific) plus 5-10 pretest
questions. Candidates must achieve a score of 75% or higher on both portions to pass.
Section 1: Nevada Real Estate Law and Licensing (Questions 1-20)
Q1. The primary mission of the Nevada Real Estate Division includes all of the following EXCEPT:
A. Protecting the public through fair regulation of real estate professionals
B. Providing licensure and registration services for real estate professionals
C. Setting maximum commission rates for real estate transactions
D. Enforcing compliance with Nevada real estate laws through education and discipline
[CORRECT] C. Setting maximum commission rates for real estate transactions
Rationale:
The Nevada Real Estate Division is statutorily charged with protecting the public and regulating real
estate professionals through licensure, registration, education, and enforcement (NRS 645.160).
Commission rates are set by market forces; any attempt by the Division or licensees to set fixed
commission rates would constitute a violation of federal and state antitrust laws (price-fixing).
Q2. Under current Nevada law, a real estate salesperson license must be renewed:
A. Annually, by December 31st of each year
B. Biennially, on the last day of the licensee's birth month
C. Every three years from the date of initial licensure
,D. Biennially, on the anniversary of the first licensure date
[CORRECT] B. Biennially, on the last day of the licensee's birth month
Rationale:
NRS 645.390 requires licenses to be renewed biennially (every two years) on the last day of the
licensee's birth month.
This "birth month renewal" system was implemented to distribute renewal workload evenly throughout
the year rather than having all renewals due simultaneously.
Q3. How many total continuing education (CE) hours are required for each biennial renewal period, and
what are the specific mandatory subject areas?
A. 12 hours total; 3 hours Nevada law, 2 hours ethics, 1 hour risk management, and 6 hours elective
B. 15 hours total; 6 hours Nevada law, 3 hours ethics, and 6 hours elective
C. 8 hours total; 4 hours Nevada law and 4 hours elective topics
D. 24 hours total; 12 hours Nevada law, 6 hours ethics, and 6 hours risk management
[CORRECT] A. 12 hours total; 3 hours Nevada law, 2 hours ethics, 1 hour risk management, and 6 hours
elective
Rationale:
NAC 645.410 mandates 12 CE hours per biennial renewal period, including:
3 hours Nevada law (updates to NRS 645 and NAC 645)
2 hours ethics (professional standards and Code of Ethics)
1 hour risk management (reducing liability exposure)
6 hours elective (any approved real estate-related courses)
Q4. Which of the following activities requires a Nevada real estate license?
A. A property manager managing 10 rental units for a single owner for a monthly fee
B. An attorney-in-fact acting under a valid power of attorney for a family member
C. A trustee selling property under the terms of a deed of trust
D. A person selling their own personal residence without representation
[CORRECT] A. A property manager managing 10 rental units for a single owner for a monthly fee
Rationale:
NRS 645.020 defines "broker" broadly to include anyone who for compensation engages in property
management.
,NRS 645.030(4) requires a property management permit for managing real property for others.
Exemptions under NRS 645.030 include: attorneys-in-fact (B), trustees acting under specific authority
(C), and owners selling their own property (D).
Q5. The Nevada Real Estate Commission has the authority to do all of the following EXCEPT:
A. Adopt regulations to administer NRS Chapter 645
B. Establish pre-licensing education requirements
C. Issue real estate licenses directly to applicants
D. Conduct disciplinary hearings for license violations
[CORRECT] C. Issue real estate licenses directly to applicants
Rationale:
While the Commission (NRS 645.140) has quasi-legislative authority to adopt regulations (A), establish
education standards (B), and quasi-judicial authority to conduct disciplinary hearings (D), licenses are
actually issued by the Administrator of the Real Estate Division (NRS 645.190), not the Commission itself.
The Commission makes policy; the Division administers licensing.
Q6. A non-resident licensee from a state that has a reciprocal agreement with Nevada wishes to obtain a
Nevada license. Which of the following is TRUE regarding reciprocity?
A. The non-resident is exempt from all Nevada-specific education requirements
B. The non-resident must pass only the Nevada state portion of the examination
C. The non-resident must maintain an active license in their home state to keep Nevada license active
D. Nevada has full reciprocity with all 50 states
[CORRECT] C. The non-resident must maintain an active license in their home state to keep Nevada
license active
Rationale:
NRS 645.360 allows the Commission to enter reciprocal agreements with other states.
Current reciprocity agreements (primarily with neighboring states) typically require the applicant to pass
the Nevada state law portion of the exam (not exempt from it), and must maintain their home state
license in good standing or the Nevada license becomes invalid.
Nevada does not have reciprocity with all states (D is false).
Q7. A broker-salesperson differs from a salesperson in that a broker-salesperson:
A. May operate their own brokerage without supervision
B. Must work under the supervision of a employing broker but has met the additional education and
experience requirements for a broker's license
, C. Is exempt from continuing education requirements
D. May accept commissions directly from clients
[CORRECT] B. Must work under the supervision of a employing broker but has met the additional
education and experience requirements for a broker's license
Rationale:
A broker-salesperson (NRS 645.020(2)) has qualified for a broker's license but chooses to work under
another broker's supervision rather than opening their own brokerage.
They cannot operate independently (A), are not exempt from CE (C), and must receive commissions
through their employing broker (D).
Q8. Under NRS 645.300, an applicant for a salesperson license must complete how many college-level
semester units (or equivalent) of pre-licensing education?
A. 45 hours of approved real estate courses
B. 90 hours of approved real estate courses (45 hours Real Estate Principles, 45 hours Real Estate Law)
C. 120 semester units of college education
D. 60 hours of general business education
[CORRECT] B. 90 hours of approved real estate courses (45 hours Real Estate Principles, 45 hours Real
Estate Law)
Rationale:
NRS 645.300 and NAC 645.304 require 90 hours total of approved pre-licensing education:
45 hours in Real Estate Principles
45 hours in Real Estate Law (must include Nevada-specific law)
These requirements ensure competency in both general real estate knowledge and Nevada-specific
regulations.
Q9. If a licensee fails to renew their license by the expiration date but within 30 days after expiration,
what is required for late renewal?
A. Payment of the standard renewal fee only
B. Payment of the renewal fee plus a late penalty fee and completion of continuing education
requirements
C. Automatic license suspension requiring re-application
D. A written examination on current law changes
[CORRECT] B. Payment of the renewal fee plus a late penalty fee and completion of continuing
education requirements
