What is the correct answer to: Nevada recognizes which brokerage relationships?

The correct answer is Agent of seller, buyer, both (with consent), or neither. Answer B is correct because NRS 645.252 through 645.254 explicitly recognizes four brokerage relationships in Nevada: agent of the seller, agent of the buyer, agent of both (dual agency with informed written consent from all parties), and a non-agent role where the licensee facilitates the transaction without representing either party. This comprehensive framework ensures consumers can select the type of representation that best serves their interests while licensees remain compliant with disclosure requirements.

What background knowledge is needed for this Agency question?

Nevada's agency disclosure laws were substantially reformed in the late 1990s and early 2000s in response to widespread consumer confusion about whom real estate licensees actually represented. Prior to codification, many buyers mistakenly believed the agent showing them homes was 'their' agent, when in fact that agent legally represented the seller. The Nevada Legislature addressed this through NRS Chapter 645, aligning the state with the national trend toward mandatory agency disclosure that gained momentum after the Federal Trade Commission's landmark 1983 report on agency relationships. Over time, Nevada added the non-agent category to accommodate transaction coordinators and other facilitative roles that did not fit neatly into traditional agency models.

What is a good way to remember the answer to this Agency question?

Use the acronym **SBBN** — **S**eller, **B**uyer, **B**oth, **N**either — to remember all four Nevada brokerage relationships in order. Visualize a real estate office with four doors labeled S, B, B, and N, and a client choosing which door to walk through based on their representation needs. This 'four-door agency' image anchors the concept that Nevada gives consumers a full menu of choices. Remember Nevada's agency relationships by thinking of S-B-D-T. This acronym helps recall the four recognized brokerage relationships in Nevada.

What exam tip applies to this Agency question?

When you see a question asking which brokerage relationships a state 'recognizes,' always look for the most inclusive answer — exam writers frequently use restrictive wrong answers (only seller, only buyer) to trap students who haven't memorized the full statutory list. In Nevada questions specifically, remember that 'neither' (non-agent) is always a recognized option and is often the answer choice that separates students who truly know the law from those guessing.

How does this Agency concept apply in real world practice?

Consider a Nevada transaction where a listing agent from XYZ Realty is showing a home to an unrepresented buyer who expresses interest in making an offer. Before any substantive negotiation begins, the agent must present the Nevada Agency Disclosure form and explain all four relationship options. The buyer may choose to remain unrepresented (non-agent facilitation), hire their own buyer's agent, or consent in writing to dual agency with XYZ Realty representing both sides. If the buyer selects dual agency, both the buyer and seller must sign written consent acknowledging the potential conflicts, and the agent must remain neutral on price negotiations.

AgencyAgency_types_and_creationMEDIUM

Nevada recognizes which brokerage relationships?

Correct Answer

B) Agent of seller, buyer, both (with consent), or neither

Nevada allows agents to represent sellers, buyers, both parties with consent, or work as a non-agent.

Answer Options

Only seller agency

Agent of seller, buyer, both (with consent), or neither

Only buyer agency

Only transaction brokerage

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Related Concepts

Express Agency

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

Fiduciary Duty

The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.

Gratuitous Agency

An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.

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Nevada recognizes which brokerage relationships?

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