Free North Dakota State Portion of the Real Estate Broker Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the North Dakota State Portion of the Real Estate Broker Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1How is the five-member North Dakota Real Estate Commission statutorily composed?

   1. A. Three members must be active real estate brokers
   2. B. Four members must be active real estate brokers
   3. C. Two members must be active real estate brokers
   4. D. All five members must be active real estate brokers

   Answer: A

   Explanation: NDCC 43-23-01 states, "The state real estate commission consists of five members, three of whom must be active real estate brokers, appointed by the governor." Therefore, three of the five members must be active brokers.

   Reference: North Dakota Century Code t43c23 — NDCC 43-23-01

2. 2A broker licensee is affiliated with another broker and performs services like a salesperson. What restriction applies to this broker associate?

   1. A. The associate may open an independent office without notice
   2. B. The associate may act independently on commercial transactions
   3. C. The associate may supervise the designated broker
   4. D. The associate must not act independently as a broker

   Answer: D

   Explanation: NDAC 70-02-01-09 states that such a broker "must not at any time act independently as a broker." The broker associate remains under the supervising broker's consent and knowledge.

   Reference: nd1.ac_web — NDAC 70-02-01-09

3. 3While an individual broker's license is properly inactive, what does the rule say about maintaining an active trust account?

   1. A. Two trust accounts are required
   2. B. The existing account must remain interest-bearing
   3. C. The account must be transferred to the commission
   4. D. An active trust account is not necessary

   Answer: D

   Explanation: NDAC 70-02-01-05(3) says, "While a license is on inactive status it is not necessary, in the case of a broker, to maintain an active trust account." The inactive broker need not keep one active.

   Reference: nd1.ac_web — NDAC 70-02-01-05(3)

4. 4For North Dakota's Subdivided Lands Disposition Act, which out-of-state land division ordinarily meets the numerical definition of a subdivision?

   1. A. Three lots offered under unrelated plans
   2. B. Five or more lots offered as part of a common promotional plan
   3. C. Two agricultural parcels sold in one deed
   4. D. Four condominium units located in North Dakota

   Answer: B

   Explanation: NDCC 43-23.1-02(7) defines subdivided lands as land outside North Dakota divided for disposition into "five or more lots, parcels, units, or interests" and includes five or more offered under a common promotional plan. Option B meets that definition.

   Reference: North Dakota Century Code t43c23.1 — NDCC 43-23.1-02(7)

5. 5A newly appointed North Dakota Real Estate Commission member is filling a regular full term. What is the length of that term?

   1. A. Four years
   2. B. Five years
   3. C. Six years
   4. D. Three years

   Answer: B

   Explanation: NDCC 43-23-02 provides, "The governor shall appoint each member of the commission for a term of five years." The regular term is five years.

   Reference: North Dakota Century Code t43c23 — NDCC 43-23-02

6. 6Which North Dakota statutory role is the designated broker?

   1. A. The licensee designated by a brokerage firm to act on the firm's behalf
   2. B. The licensee appointed to act solely for one client to the exclusion of other firm licensees
   3. C. The person who entered a written agency agreement with the brokerage firm
   4. D. The buyer, seller, lessee, or lessor not represented by the brokerage firm

   Answer: A

   Explanation: NDCC 43-23-06.1(5) defines a designated broker as "a licensee designated by a real estate brokerage firm to act on behalf of the brokerage firm." The other choices describe the statute's appointed-agent, client, and customer roles.

   Reference: North Dakota Century Code t43c23 — NDCC 43-23-06.1(1)-(5)

7. 7In a brokerage advertisement, how must the agency's licensed trade name compare with a salesperson's or team's name?

   1. A. It may be smaller if a phone number is shown
   2. B. It must be equal to or greater in size and visibility
   3. C. It need appear only on the linked website
   4. D. It must always be exactly twice as large

   Answer: B

   Explanation: NDAC 70-02-03-02.1(2) requires that "the trade name must be equal to or greater than, in size and visibility, the name of any salesperson, associate broker, or team on the advertising." Equal or greater prominence is required.

   Reference: nd1.ac_web — NDAC 70-02-03-02.1(2)

8. 8Absent an exemption, when may a person in North Dakota first offer an interest in subdivided lands located outside the state?

   1. A. After delivering an unregistered draft statement
   2. B. After the purchaser signs a waiver
   3. C. After the subdivided lands are registered under the Act
   4. D. After accepting earnest money but before closing

   Answer: C

   Explanation: NDCC 43-23.1-04(1) makes it unlawful to offer or dispose of the interest "prior to the time that the subdivided lands are registered in accordance with this chapter." Registration must precede the offer.

   Reference: North Dakota Century Code t43c23.1 — NDCC 43-23.1-04(1)

9. 9What is the statutory limit on consecutive full five-year terms for a North Dakota Real Estate Commissioner?

   1. A. One consecutive term
   2. B. Three consecutive terms
   3. C. Two consecutive terms
   4. D. No consecutive-term limit

   Answer: C

   Explanation: The controlling sentence in NDCC 43-23-02 is, "A commissioner may not serve more than two consecutive five-year terms." Thus, the limit is two consecutive full terms.

   Reference: North Dakota Century Code t43c23 — NDCC 43-23-02

10. 10Under the North Dakota statutory definition, for whom does a real estate salesperson perform brokerage acts?

    1. A. For the Real Estate Commission
    2. B. For or on behalf of the licensed broker employing or engaging the salesperson
    3. C. Only for the property owner personally
    4. D. For any broker in any state

    Answer: B

    Explanation: NDCC 43-23-06.1(11) defines a salesperson as a person "employed or engaged by a licensed real estate broker to do any act or deal in any transaction as provided in subsection 9 for or on behalf of such licensed real estate broker." The work is for the employing or engaging broker.

    Reference: North Dakota Century Code t43c23 — NDCC 43-23-06.1(11)