North Dakota Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. A North Dakota licensee receives a secret transaction payment and conceals the full compensation from the principal or employer. What is the issue?

   • AOnly the payment's tax treatment matters
   • BEvery secret payment becomes lawful at closing
   • COnly checks, never cash, must be disclosed
   • DUndisclosed compensation is a listed ground for actioncorrect

   Why: Undisclosed compensation is a listed ground for action. Section 43-23-11.1(1)(g) addresses the undisclosed benefit and full compensation disclosure.

   Agency

2. 2. A North Dakota property advertisement names the brokerage but gives the public no way to contact it. What is missing?

   • AThe buyer's employment history
   • BEvery affiliated licensee's birth date
   • CBrokerage contact informationcorrect
   • DThe seller's bank account number

   Why: NDAC 70-02-03-02.1 requires information showing how the public can contact the brokerage. Naming the business alone does not provide that contact route.

   Practice of real estate

3. 3. A North Dakota inactive licensee faces accumulated education for reactivation. What limit does North Dakota law place on the accumulated requirement?

   • ANo education under any circumstances
   • BNo more than the hours required for the preceding 3 CE periods, completed in the immediately preceding 3 yearscorrect
   • CUnlimited accumulated hours from every inactive year
   • DOnly education completed before becoming inactive

   Why: NDAC 70-02-01-05(4) caps inactive-license reactivation education at the three education periods before reactivation and requires completion in the immediately preceding three years. The rule limits both the accumulation period and the recency of completed education.

   Practice of real estate

4. 4. An applicant already licensed in another nonreciprocal state seeks North Dakota licensure under North Dakota law. What coursework treatment applies?

   • AEvery other application requirement disappears
   • BThe applicant can practice without a North Dakota license
   • CThe applicant must repeat all coursework regardless of existing licensure
   • DPrelicensure coursework is not required under that provisioncorrect

   Why: NDAC 70-02-01-06(5) waives prelicensure coursework for an applicant already licensed in another nonreciprocal state. The coursework waiver is not a blanket waiver of examination or other licensing requirements.

   Practice of real estate

5. 5. A North Dakota wholesaler prepares the required written disclosure. Which statement belongs in it?

   • AThe wholesaler already guarantees conveyance of legal title.
   • BThe wholesaler must waive every possible assignment fee.
   • CThe buyer is prohibited from obtaining independent advice.
   • DThe wholesaler holds an equitable interest and intends to profit.correct

   Why: NDCC 43-23-24 requires disclosure of the equitable interest, possible inability to convey title and intent to profit. It does not permit implying guaranteed title ownership.

   Property disclosures

6. 6. A North Dakota salesperson sells property in which the salesperson owns an interest. What must be disclosed to the purchaser?

   • ANothing if the property is sold through another broker
   • BThe salesperson's ownership interestcorrect
   • COnly the amount of the buyer's proposed financing
   • DOnly the seller's preferred move-out date

   Why: NDAC 70-02-03-13 requires the selling licensee ownership interest to be made known to the purchaser. Using another broker does not remove that personal-interest disclosure.

   Property disclosures

7. 7. For a North Dakota real estate education course, how many minutes define a course hour under North Dakota law?

   • A30 minutes
   • B45 minutes
   • C50 minutescorrect
   • D60 minutes

   Why: NDAC 70-02-02-10 defines an education course hour as 50 minutes. A regulatory course hour is not necessarily a full 60-minute clock hour.

   Practice of real estate

8. 8. How much additional approved education does North Dakota require for broker licensure beyond the salesperson education requirement?

   • A60 additional approved hourscorrect
   • B15 additional approved hours
   • CNo additional approved education
   • DThe same 90 hours counted a second time

   Why: NDCC 43-23-08 requires a broker applicant to complete 60 additional approved hours. Reusing the salesperson hours does not meet an additional-hour requirement.

   Practice of real estate

9. 9. A North Dakota CE session contains 40 instructional minutes and a 10-minute break. Does that produce a full CE hour?

   • ANo, the 50-minute CE hour excludes breakscorrect
   • BYes, breaks always count as instruction
   • CYes, any session longer than 30 minutes counts
   • DNo, a CE hour requires 90 instructional minutes

   Why: NDAC 70-02-04-03 defines a CE hour as fifty minutes excluding breaks. Only instructional time counts toward the 50-minute requirement.

   Practice of real estate

10. 10. A North Dakota broker handles funds for a represented client at consummation. What statement is required?

    • AOnly the property's old assessed value
    • BOnly an unexplained commission invoice
    • COnly a moving estimate
    • DA complete detailed closing statement of handled receipts and disbursementscorrect

    Why: A complete detailed closing statement of handled receipts and disbursements. The broker must also retain true copies of the statements.

    Transfer of title