Quiz 3 (Answers found near end of workbook.)

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1 Quiz 3 (Answers found near end of workbook.) NRS 645 and NAC Nevada Broker Kay lives in California. She has been trying to find Buyer Jay a condo since before she became licensed. Jay finally purchased a condo on the strip and Kay will receive a $10,000 commission check from Lawyers Title. This is an illegal transaction because: A. Broker Kay needs to live in Nevada. B. The commission check should come from her trust account. C. She wasn t licensed when she started working with Jay. D. Jay doesn t live in Nevada. 2. Jenny is a real estate salesperson in Nevada. She received a $5,000 earnest money check at 10 a.m. on Monday morning. When should she supply the check to her broker? A. By 5 p.m. Monday. B. By 9 a.m. Tuesday. C. By 5 p.m. Wednesday. D. Within 2 business days. 3. Rudi s neighbor Sal is selling his house. Rudi called her friend Aletha, a broker-salesperson. After the house closes, Aletha is going to give Rudi $200 for the referral, because she wouldn t have sold the house if not for Rudi. This is illegal because: A. Aletha is not a Broker in Nevada. B. The Title Company won t make out a check to Rudi. C. Aletha s broker doesn t know about the referral fee. D. Rudi is not licensed. 4. Broker Taylor wants to cut down on paperwork. He is trying to decide how long to keep files in his office. Should he keep them? A. 5 years from the listing date. B. 5 years from the closing date. C. 5 years from the date escrow was started. D. 5 years from the date of an accepted offer. ABC Real Estate School Nevada Law Nov 2009 Page 198

2 5. Regina is a salesperson and hangs her license with an owner-developer. She is selling a model home to Mr. and Mrs. Jinx. The Jinx s own a home in North Las Vegas, and would like Regina to list the home. Regina doesn t list homes, so she referred it to Broker Jesse and will receive a $5,000 commission check drawn on Jesse s trust account, after it closes. This is in violation of Nevada law because: A. Jesse can t pay Regina out of his trust account. B. Regina can t receive two checks from one deal. C. Regina isn t representing the Jinx s directly. D. Regina can only accept commissions from the owner-developer that hangs her license. 6. Salesperson Wendy has buyers for a ranch in Mesquite, NV. On the way to have the buyers sign the contract, Wendy spilled Pepsi on her paperwork. Because of the mishap, only the first page of the contract was readable. Wendy was scared that the buyers would change their mind, so she still had them sign the form. When does Wendy need to give the buyers a copy? A. By the next business day. B. By the next banking day. C. Within a reasonable time. D. By 5 p.m. that day. 7. Broker-salesperson Jessie had her clients execute an offer at 9 a.m. on Monday. At the latest, Jessie needs to supply this paperwork to her Broker by: A. Next Monday by 5 p.m. B. Within 1 business day. C. Within 2 banking days. D. Friday afternoon. 8. Broker Reggie is selling his homestead. He has purchased a For Sale by Owner FSBO sign from Home Depot that he only needed to add his phone number to. What mistake(s) did Reggie make? A. He didn t include his office phone number. B. He did not include his office name. C. He didn t include his office phone number or office name. D. He should have used something like for sale by owner-broker instead. ABC Real Estate School Nevada Law Nov 2009 Page 199

3 9. Salesperson Connie Pup is advertising on a bus stop bench. What is legally wrong with her ad? Looking for a top dog salesperson? Call Connie Pup! Ruf-2222 Realtor A. She can t use her own phone number in the ad. B. She needs to state the office name. C. She needs to state her broker s name. D. She can t use the term, Realtor. 10. What is a requirement for Advance Fee advertising? A. It can t be in writing. B. It can t guarantee results. C. It can t specify the fee. D. It shouldn t specify the date of full performance. 11. Salesperson Alexis has taken an exclusive agency listing. All of the following are required EXCEPT: A. It must be in writing. B. It must be automatically renewing. C. It must be signed by both the client and Alexis. D. The salesperson must install both a company for sale sign and a FSBO sign in the front yard. 12. Salesman Allen is working with buyer Diana on a 10-acre home priced at $825,000. Since he also represents seller Alvin, he knows that Alvin needs to net at least $810,000 for the home and won t accept anything less, because those are his costs. Diana has requested that Allen write an offer for $620,000, because the market is saturated with homes. What should Allen do? A. Write the offer and present it to Alvin. B. Verbally ask Alvin if he wants him to write the offer. C. Tell Diana that Alvin won t accept any amount less than $810,000. D. Tell Diana that Alvin s costs are $810,000. ABC Real Estate School Nevada Law Nov 2009 Page 200

4 13. Connie wants to buy a home in Reno. She signed an offer for $275,000 that was given to the listing agent 10 days ago. She has asked her agent about the offer, but he has told her that it probably wasn t accepted. What should her agent do? A. Call the listing agent and verify that the sellers didn t accept the offer. B. Make another offer on the property, assuming this one wasn t accepted. C. Request that written notice be signed by the seller. D. Request that written notice be signed by the listing agent. 14. Buyer s agent Tony wrote 1 of 20 offers presented to Seller Eugene. Seller Eugene accepted an offer other than Tony s. Tony s Broker asked about the offer, because it was presented 7 days ago and Tony didn t open a file. What should Tony have done? A. Tell his broker that the offer wasn t accepted within 48 hours. B. File it at his home with his other deals. C. Throw it away and try again. D. Put it in a file at his broker s office. 15. Broker Lee has been steering his clients towards a particular area of the Las Vegas valley. He already has 1 conviction for a violation of Fair Housing. If he is found guilty again, what will probably be the penalty? A. $500 fine. B. A suspended license. C. A revoked license. D. A warning. 16. Salesperson Roderick is changing brokers. He is finishing up a deal with his present broker, and doesn t want to change brokers at the Division until the deal is over and he has his commission check. His new broker has referred him a client that he will meet in 3 days. What should Roderick do? A. Work with the referral, because as long as his license is at the new office before he collects a commission, it is legal. B. Tell his new broker to refer the client to another salesperson. C. Tell his present broker that he will be starting to do deals at the new office. D. Request that his present broker sign a consent form. ABC Real Estate School Nevada Law Nov 2009 Page 201

5 17. Salesperson Jessica is finding her mother a house. She is excited because her mother has told her that when she finds her a house, she will give Jessica her 1991 Jeep Wrangler as an earnest money deposit. This afternoon, her mother signed an offer for a ranch style home in Lake Tahoe. What must Jessica do? A. Make sure her mom gives her the Jeep, with a full tank of gas, as soon as the offer is accepted. B. Write out a receipt for the Wrangler and make sure it is presented with the offer. C. Get permission in writing from her broker to accept the Jeep. D. Get permission in writing from the seller. 18. Broker-salesperson Misty listed a newly built home near Nellis Air Force Base in Las Vegas. She has worked with the builder before and knows that he builds on lots of 2 different sizes, 1 is 80 X 120 and 1 is 100 X 120. It is a recently subdivided area, so the tax records haven t been updated with the information, and the walls aren t in to separate out the lots, so she asked the builder the lot size. He said that it is 100 X 120, so she relayed that information to the buyer. The house closed and on the final closing documents the buyer noticed that it said that the lot is 80 X 120. The buyer said he purchased the house because of the large lot and has filed a complaint against Misty with the Real Estate Division. The Commission has agreed to hear the case. What do you think they will decide? (note: this was an actual case) A. Find that Misty did nothing wrong because she relied on the builder. B. Find that Misty did nothing wrong because she checked the tax records and asked the builder. C. Find that Misty did nothing wrong because she was representing the builder, and buyers should beware. D. Find Misty guilty of making a material misrepresentation because she did not verify the lot size on a plat map. 19. Broker Al received an earnest money check from Salesperson Jack at 11 a.m. Friday. When would the Nevada Real Estate Commissioners like that the check to be on deposit? A. When the bank closes on Saturday. B. When the bank closes on Friday. C. When the bank closes next Friday. D. When the bank closes on Monday. ABC Real Estate School Nevada Law Nov 2009 Page 202

6 20. Broker Shawna doesn t like accounting, but has a trust account. She gave the Division an annual accounting of the trust account but hasn t used it or looked at it for about 4 months. What is Shawna supposed to be doing? A. As long as it hasn t been used, nothing. B. Balance the trust account at least monthly. C. Send the Division a monthly accounting. D. Shawna doesn t need a trust account. 21. Salesperson Angelica knows the neighborhood in a suburb of Las Vegas Summerlin has increased in value over 45% in the last year. She has a buyer that has signed an offer on a house in Summerlin for the appraised value. They plan to keep the house for 2 years. She has told the buyers that if the house doesn t increase in value at least 30% within the next 2 years, she will represent them for 0% commission. Has Angelica violated Nevada Law? A. No, because Angelica can work for free if she chooses. B. No, as long as Angelica s Broker agrees to the 0% commission. C. Yes, because Angelica can t guarantee future profits. D. Yes, because Angelica is not an appraiser. 22. Broker Tyler is selling his mom s house. Because she will only list with Tyler and she wants to sell the house, she has left out an expiration date on the listing contract. Is Tyler violating Nevada Law? A. No, because he is a broker rather than a salesperson. B. No, because he doesn t need to use his office to do a deal for his mother. C. Yes, because an expiration date is required on listing contracts. D. Yes, because he can t represent his mother. 23. Broker-salesperson Savannah has been accused of tax evasion in Arkansas. Will that affect his Nevada real estate license? A. No, because it is taking place in Arkansas. B. No, not unless he is convicted. C. Yes, because it is a felony. D. No, because it is not a real estate crime. ABC Real Estate School Nevada Law Nov 2009 Page 203

7 24. Emily was a licensed appraiser in Arizona in She is now licensed as a broker-salesperson, but also counsels her clients about appraisals after disclosing to her clients her appraiser licensing status. Is she violating Nevada Law? A. No, because she is disclosing to her clients that she isn t a licensed appraiser. B. No, because she has knowledge about appraising. C. Yes, because she should hire an appraiser. D. Yes, because she was never licensed in Nevada as an appraiser. 25. Salesperson Alex has closed on a house in Carson City 9 days ago. The clients used attorneys, rather than a Title Company to facilitate the transaction. As of today, the clients have not been given a closing statement. Is it Alex s responsibility to deliver a detailed closing statement to her client? A. No, it is the attorney s responsibility. B. No, a Title Company must also be hired to take care of the financing. C. Yes, Alex has 10 days to deliver it. D. Yes, Alex has 20 days to deliver it. 26. Broker Jose has a client, Romano, without a down payment. Romano has offered $200,000 for a house in Green Valley, NV and it was accepted today. Jose submitted paperwork to the finance company stating that the sales price will be $220,000, so that Romano will have a 10% down payment. Was this legal? A. Yes, now Romano will have a good down payment. B. Yes, except that Romano now needs to borrow closing costs also. C. No, because Jose needs to disclose the actual sales price to his broker. D. No, because the paperwork needs to match the agreed upon price. 27. Broker-Salesperson Scott has closed several transactions within the past several months without completing files at his broker s office. The Real Estate Division has been investigating Scott. Can his broker also get in trouble for the oversight? A. Yes, the commission may suspend, revoke or deny the renewal of his broker s license because he failed to supervise Scott. B. No, Scott alone is responsible for his actions. C. No, because Scott is a broker-salesperson, rather than a salesperson. D. No, the office accountant is the one that is accountable. ABC Real Estate School Nevada Law Nov 2009 Page 204