Nevada Practice TestContracts

Nevada Contracts
Practice Questions & Answers (2026)

Contract law questions on the Nevada real estate exam test both general contract principles and Nevada-specific transaction requirements. The Nevada Real Estate Division tests how Nevada contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Nevada law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong NV-specific timeframe or rule.

Practice Questions

Nevada Contracts — Practice Questions & Answers

130 questions on Contracts from the Nevada real estate question bank. First 10 are free — sign up to unlock all 130.

Q1. Nevada is a community property state. In a community property marriage, real property acquired during the marriage is generally owned:

A.Solely by the spouse whose income purchased it
B.Equally by both spouses as community property
C.By the spouse listed first on the deed
D.By the spouse who manages the household

Explanation

Nevada is a community property state. Property acquired during marriage with community funds is owned 50/50 by both spouses, regardless of whose name is on the title.

Q2. In Nevada, a purchase agreement becomes binding when:

A.The buyer signs the offer
B.The seller signs the counteroffer
C.Both parties have signed and the acceptance is communicated to the offeror
D.The earnest money check is cashed

Explanation

A contract is formed when there is a meeting of the minds — both parties have agreed to the same terms AND the acceptance has been communicated back to the offering party.

Q3. Liquidated damages in a Nevada purchase contract refer to:

A.The seller's obligation to repair all property defects before closing
B.A pre-agreed amount (often the earnest money) that is the maximum damages if the buyer defaults
C.Court-ordered damages paid by the agent for misrepresentation
D.The lender's fees charged for early payoff of the mortgage

Explanation

A liquidated damages clause pre-sets the amount of damages if the buyer defaults — typically the earnest money deposit — so the seller's remedy is limited to that amount rather than suing for full damages.

Q4. A seller's disclosure in Nevada must include:

A.The seller's asking price rationale
B.Known material defects and conditions affecting the property
C.A list of all prior offers received
D.The seller's mortgage balance

Explanation

Nevada's seller disclosure law requires sellers to disclose known material defects and conditions that could affect the property's value or the buyer's decision to purchase.

Q5. Which type of listing agreement requires the seller to pay the broker a commission regardless of who sells the property, even if the seller finds the buyer themselves?

A.Open listing
B.Exclusive agency listing
C.Exclusive right-to-sell listing
D.Net listing

Explanation

An exclusive right-to-sell listing entitles the broker to a commission regardless of who produces the buyer — even if the seller sells the property themselves — because the broker has the exclusive right to sell.

Q6. In Nevada, a lease for more than one year must be:

A.Approved by the local housing authority
B.In writing under the Statute of Frauds
C.Recorded with the county recorder
D.Witnessed by a notary public

Explanation

Under Nevada's Statute of Frauds, a lease for a period exceeding one year must be in writing to be enforceable.

Q7. In Nevada, a real estate purchase contract must include all of the following to be enforceable EXCEPT:

A.Mutual consent (offer and acceptance)
B.Consideration
C.Legal purpose
D.Acknowledgment by a notary public

Explanation

A valid contract requires offer and acceptance (mutual consent), consideration, competent parties, legal purpose, and in Nevada, must be in writing under the Statute of Frauds. Notarization is required for deeds, not contracts.

Q8. A counteroffer in Nevada real estate practice legally:

A.Amends the original offer without rejecting it
B.Rejects the original offer and creates a new offer
C.Extends the acceptance deadline of the original offer
D.Requires NRED approval before becoming valid

Explanation

A counteroffer rejects the original offer and substitutes a new offer with different terms. The original offer is extinguished and the offeror becomes the offeree on the counteroffer.

Q9. The Statute of Frauds requires that contracts for the sale of real property in Nevada must be:

A.Notarized
B.Recorded with the county
C.In writing and signed by the party to be charged
D.Reviewed by an attorney

Explanation

Nevada's Statute of Frauds (NRS 111) requires contracts for the sale of real property to be in writing and signed by the party against whom enforcement is sought. Oral contracts for real estate are generally unenforceable.

Q10. In Nevada, earnest money in a real estate transaction is:

A.Required by law to be at least 1% of the purchase price
B.A form of consideration that demonstrates the buyer's good faith
C.Automatically forfeited if the buyer fails to close
D.Paid directly to the seller at time of offer

Explanation

Earnest money (also called a good faith deposit) demonstrates the buyer's serious intent. While there is no statutory minimum in Nevada, it serves as consideration supporting the contract and is held in trust by the broker or escrow.

Q11. A contingency in a real estate contract is best described as:

A.A penalty clause for breach
B.A condition that must be met for the contract to become binding
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