Nevada Agency
Practice Questions & Answers (2026)

Agency law is one of the most tested subjects on the Nevada real estate exam, and it's also one of the most misunderstood. The Nevada Real Estate Division expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Nevada law. As a community property state, Nevada also tests how agency relationships are affected when spouses are both parties to a transaction. Study these questions carefully — candidates who rely on national agency frameworks and don't account for NV-specific rules are among the most common failures on the state portion.

Practice Questions

Nevada Agency — Practice Questions & Answers

129 questions on Agency from the Nevada real estate question bank. First 10 are free — sign up to unlock all 129.

Q1. In Nevada, the required agency disclosure must be provided to a prospective buyer or seller:

A.At the time of closing
B.Before engaging in substantive discussions about a specific property
C.Only after a listing agreement is signed
D.Only when dual agency is anticipated

Explanation

Nevada requires the agency disclosure form to be provided before substantive discussions about a specific property so that consumers understand the licensee's role and obligations.

Q2. Nevada law permits dual agency only when:

A.The transaction involves a new construction property
B.Both the buyer and seller have given written informed consent
C.The commission is reduced by at least half
D.A neutral third-party mediator is present

Explanation

Dual agency is permitted in Nevada only with the written informed consent of both the buyer and seller, who must understand that the agent cannot fully advocate for either party.

Q3. A Nevada listing agent discovers during a showing that the roof has a significant hidden leak. The agent must:

A.Keep this information confidential per their duty to the seller
B.Disclose the material defect to potential buyers
C.Only disclose it if the buyer asks directly
D.Report it to the NRED but not to the buyer

Explanation

Nevada law requires disclosure of known material defects to buyers regardless of which party the agent represents. This duty to disclose material facts cannot be waived by the seller.

Q4. A Nevada licensee who acts as a property manager for a landlord is the landlord's:

A.Sub-agent
B.Transaction broker
C.Agent and fiduciary
D.Independent contractor with no agency relationship

Explanation

A property manager acting on behalf of a landlord is the landlord's agent and owes fiduciary duties including loyalty, confidentiality, and acting in the landlord's best interests.

Q5. A buyer's broker agreement in Nevada:

A.Prevents the buyer from viewing homes not listed in the MLS
B.Creates a fiduciary agency relationship between the broker and buyer
C.Requires the broker to find a home within 30 days
D.Eliminates any commission obligation for the buyer

Explanation

A buyer's broker agreement establishes a formal agency relationship with fiduciary duties, defining the scope of representation, compensation, and duration of the agreement.

Q6. Under Nevada agency law, the duty of 'accounting' requires an agent to:

A.Prepare tax returns for the client
B.Keep careful records of and account for all client funds and documents
C.Provide monthly financial statements to the client
D.Audit the seller's financial statements before listing

Explanation

The duty of accounting requires the agent to safeguard and properly account for all money and property entrusted to them by the client, including earnest money deposits.

Q7. In Nevada, which document is used to establish a written agency relationship between a buyer and a licensee?

A.Listing agreement
B.Buyer Representation Agreement
C.Property Management Agreement
D.Disclosure of Services

Explanation

A Buyer Representation Agreement (or buyer's broker agreement) is the written contract that formally establishes the agency relationship between a buyer and their real estate agent in Nevada.

Q8. A Nevada licensee who represents both the buyer and seller in the same transaction without proper disclosure is guilty of:

A.Dual agency, which is always permitted
B.Undisclosed dual agency, which violates NRS 645
C.Limited representation, which requires a single form
D.Designated agency without consent

Explanation

Undisclosed dual agency violates NRS 645 and can result in license revocation. In Nevada, dual agency requires written informed consent from both parties before the agent can represent both buyer and seller in the same transaction.

Q9. Which of the following best describes a 'designated agency' arrangement in Nevada?

A.One agent represents both buyer and seller
B.A brokerage assigns separate agents to represent buyer and seller within the same firm
C.A broker designates a third party to represent a client
D.An out-of-state agent is designated to represent a Nevada client

Explanation

In designated agency, the broker designates one agent within the firm to represent the seller and a different agent to represent the buyer, allowing each party to receive full representation even when both are clients of the same brokerage.

Q10. In Nevada, the duty of loyalty in an agency relationship means the agent must:

A.Place the client's interests above all others, including the agent's own interests
B.Disclose all known information about the property
C.Present all offers in a timely manner
D.Account for all funds received

Explanation

The duty of loyalty requires the agent to put the client's interests first and foremost, above the agent's own interests and above those of other parties. This is a fiduciary duty owed to the principal.

Q11. Nevada law requires licensees to disclose their agency relationship to all parties:

A.Only at closing
B.At the time of listing
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