Nevada Real Estate Broker Management - Final Exam

NRS 645.343 specifically defines the educational requirements for broker applicants in Nevada. Of the 24 credits of mandated topics, how many credits are required in an approved broker management course?

1.
3.
6.
9.

Any real estate licensee of any state may substitute two years of active experience as the equivalent of what number of semester units of college level courses?

8.
16.
24.
32.

A Nevada broker applicant must provide to the Division all of the following EXCEPT:

Current employer information.
Bank accounts with current balances.
FICO score of at least 650.
Proof of college education or experience.

Jones is applying for her Nevada broker’s license. Jones will have to demonstrate to the Division she has liquid assets sufficient to maintain a brokerage office for at least:

90 days.
120 days.
180 days.
360 days.

NRS 645.330 requires broker applicants to demonstrate experience requirements. Specifically, the experience requirements are to have been actively engaged as a full-time licensee for:

Two years.
At least two of the last four years.
Four years of the last five years.
None of these.

Tom wishes to accept a position as branch manager for Edison Realty, a Nevada real estate corporation. Tom must demonstrate he has:

Four years of active real estate experience.
A Nevada salesperson's license.
Liquid assets to maintain an office.
Two years experience within the last four years.

The author recommends that legal counsel be consulted in drafting the firm’s policies and procedures. This is recommended because:

The firm will want to know that the policies and procedures are legally ironclad for protective purposes in the event of a lawsuit.
The firm wants to be sure the systems do not violate any laws or even potentially become the source of litigation.
With legally sound policies and procedures, the broker has a much better defense in demonstrating communication and supervision of its salespeople.
All of these.

Which of these is NOT a legal obligation of broker Hammer to his salespeople?

To teach the fundamentals of real estate and ethics.
To supervise their activities and oversee all operations of their business.
To motivate and train them to increase their overall sales production.
To establish policies, rules, procedures, and systems.
To establish policies, rules, procedures, and systems.

Which of the following is TRUE regarding the payment of commissions, referrals, or fees?

It is unlawful for any licensee to pay any part of his commission to any person who is not licensed.
A salesperson shall not accept compensation from any person other than her employing broker.
It is unlawful for any licensee to pay a commission to any person except through the employing broker.
All of these.

NRS 645.252 defines the duties of a licensee when acting as an agent in a real estate transaction. A licensee is NOT obligated to disclose:

To each party as soon as practicable any material facts.
Each source of the licensee's compensation.
That the licensee is a principal to the transaction if such is the case.
The principal's motivation for selling or purchasing.

The identification of future, potential financial harm to the real estate brokerage as well as all associated individuals is known as:

Risk management.
Errors and omissions insurance.
Broker management.
Internal analysis.

If found guilty of a licensing violation, in addition to suspend, revoke, deny the renewal of, or place conditions upon the license, the Commission may sanction the licensee with an administrative fine of up to:

$2,500 for each violation.
$5,000 for each violation.
$10,000 for each violation.
$20,000 for each violation.

The primary distinction between misrepresentation and fraud is:

The dollar amount of the damages suffered.
Whether the licensee had prior violations.
Intent.
If the offense was of a financial nature.

Harrison remained silent and did not disclose a known roof leak to the purchasers. This offense is called:

Misrepresentation.
Active fraud.
Passive fraud.
Commingling.

Race and color were the only classes protected as a result of what legislation?

The Civil Rights Act of 1866.
The Fair Housing Act of 1968.
Regulation "Z".
Equal Credit Opportunity Act.

Which of the following is NOT a characteristic of real property value?

Scarcity.
Permanence.
Use.
Transferability.

For extra efforts that exceeded the seller’s expectations, a listing broker-salesperson can legally receive a performance bonus from:

The seller.
The buyer.
The seller if paid to her by the title company.
Her broker.

The Income Approach is best suited for which of these properties?

A single family residence.
A public airport.
An apartment complex.
A large vacant industrial building.

The Cost Approach would be the best suited for which of these properties?

A church.
A former, model home.
A 10 unit apartment building.
A car wash.

A home built in the 1970’s with leaking faucets, broken windows, and walls that are yellowed from age is suffering:

Curable functional depreciation.
Incurable physical depreciation.
Incurable environmental depreciation.
Curable physical deprecation.

The owner of a listed property suffered a heart attack and passed away while the listing contract was still in effect with the broker. Now, the listing:

Is binding on the owner's heirs for the remainder of the contract.
Remains valid.
May be terminated because of the death of the principal.
Is binding only if the broker can still produce a ready, willing, and able buyer.

A special agent is:

Given complete authority to bind the client to a contract.
Has no authority to bind the client to any contract.
Is most likely doing property management.
Is limited by his broker to represent buyers only.

You are writing an offer with your purchasers on an old ranch home built in 1963. You should be alerted that an additional federally mandated disclosure will be required in this transaction. It is:

RESPA.
Truth in Lending Act.
Lead based paint disclosure.
Fair housing act.

You are at the walk through at your seller’s property. This transaction has been a harrowing experience and is finally going to close. The buyer and her agent are doing the walk through inspection and don’t check the heat since it is 98? outside. Your seller whispers to you to please not mention the heating system does not work. What should you do?

Follow your client's instructions in honoring your fiduciary duty.
Explain to your seller you must disclose known defects to the customer.
Do nothing as you should get advice from your broker first.
Recommend to the buyer that she get a home warranty including air and heat.

Which is NOT covered by the Federal Fair Housing Act?

Sexual Orientation.
Ethnicity.
National Origin.
Race.

A property manager’s primary obligation is to the:

Tenants.
Owners.
Lenders.
CICA.

Dual agency is illegal in some states, while allowed in others only with disclosure and informed consent. Why is this so?

Dual agency has inherent conflicts of interest.
It is extremely difficult for one licensee to negotiate in the best interests of opposing clients in the same transaction.
It is common for a licensee to breach a fiduciary duty in such a relationship.
All of these.

As used in the real estate profession, the word “agency” describes:

A mandatory part of the name of any company dealing in real estate transactions.
The fiduciary relationship between an agent and a principal.
The relationship between a real estate broker and the associated salespeople.
The relationship between an agent and a customer.

With which type of income producing property would a GRM likely NOT be appropriate?

Shopping center.
Free-standing office suite.
Single family home.
A duplex.

What law provided financing to all qualified Americans and prohibited discrimination in lending practices?

ECOA.
RECD.
RESPA.
MGIC.

RESPA requires:

The borrow to receive a good faith estimate of loan closing costs within 3 business days of loan application.
The use of the uniform settlement statement HUD-1.
There be no undisclosed referral fees paid to the real estate professionals involved.
All of these.

The subject property has 4 bedrooms, 2 1/2 baths, and a pool. The comparable, which sold for $320,000, has 4 bedrooms, 3 baths, and no pool. The appraiser uses the following data for making adjustments: One Bedroom $8,000, One Bathroom $6,000, 1/2 Bathroom $4,500, Pool $18,000 What adjustment would the appraiser make?

Adjust the subject upward $22,500
Adjust the subject downward $13,500
Adjust the comparable downward $22,500
Adjust the comparable upward $13,500

Wilkins’ house is on the corner of a busy intersection where there have been many accidents. As a result, very few prospective buyers are interested in the home. Wilkins will suffer a loss in value due to:

Environmental obsolescence.
Physical depreciation.
Functional obsolescence.
Curable deterioration.

On the 5th of the month, a Broker writes a check against his trust account to pay the rent for his office space. The broker could be disciplined by the licensing authority for:

Conversion.
Delinquent rental payments.
Failure to account.
Commingling.

Errors and omissions insurance will NOT cover:

Misrepresentation.
Fraud.
Fair housing violations.
All of the above.

In an errors and omissions policy, “prior acts” refers to:

Actions resulting in claims that occurred prior to the effective date of the policy that will not be covered.
Prior actions of the broker or any affiliated licensees that will influence the premium on the policy.
Former real estate activities which have resulted in claims paid by the insurance carrier.
None of the above.

A real estate brokerage firm that chooses to provide financing, title insurance, and hazard insurance through subsidiary companies that operate within the brokerage is operating under:

Regulated practice agreements.
Controlled business arrangements.
Legalized trade practices provisions.
Legalized trade practices provisions.

A real estate firm offering ancillary services as described in question 37 is regulated by:

HUD.
Federal Trade Commission.
RESPA.
Nevada Real Estate Commission.

In order to offer ancillary services such as mortgage and title, a real estate brokerage firm must make a disclosure of the affiliation to consumers which:

Estimates charges for the services.
Discloses that consumers are free to obtain these services elsewhere.
Is in writing and signed.
All of the above.

Gross closed commission minus agent commission dollar equals:

Profit.
Company dollar.
Operating expenses.
Net operating income.

Which of the following statements is FALSE regarding the employment of real estate salespeople?

They may be hired as "employees."
They may NOT be paid a salary and must be paid commissions only.
They may be hired without the broker being responsible to deduct federal taxes and social security.
They must have a written employment agreement, usually called an independent contractor's agreement.

A member profile survey conducted by the National Association of REALTORS? in 2012 found that:

Most salespeople are employed by their firms as independent contractors.
Most salespeople are employed by their firms as employees.
There is an equal balance of employees and independent contractor.
None of the above.

In developing your agency’s business plan, the author suggests you:

Choose your market.
Scrutinize your competition.
Inspect your own agency internally.
All of the above.

The primary elements of a business plan include all of the following EXCEPT:

Mission statement.
Goals.
Prior accomplishments.
Objectives.

Nevada Real Estate Broker Management – Final Exam

Nevada Real Estate Broker Management – Final Exam

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

21. Question

22. Question

23. Question

24. Question

25. Question

26. Question

27. Question

28. Question

29. Question

30. Question

31. Question

32. Question

33. Question

34. Question

35. Question

36. Question

37. Question

38. Question

39. Question

40. Question

41. Question

42. Question

43. Question

44. Question