Free North Dakota Real Estate Examination — State Portion Practice Questions

Sample Practice Questions

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

1. 1The governor is filling a seat on the North Dakota Real Estate Commission. Which candidate profile satisfies the statutory composition requirement for the five-member commission?

   1. A. A commission with three active real estate brokers among its five members
   2. B. A commission with three active real estate salespersons among its five members
   3. C. A commission with two active real estate brokers among its five members
   4. D. A commission with four public members among its five members

   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. 2Which description matches a North Dakota real estate salesperson under the license law?

   1. A. A person independently operating a brokerage for the public
   2. B. A person employed or engaged by a licensed broker to perform brokerage acts for that broker
   3. C. A person who only appraises property for federally insured lenders
   4. D. A person who manages another broker's trust account without supervision

   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." Supervised brokerage service is central to the credential.

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

3. 3When may a North Dakota broker share a commission with a licensed broker in another state?

   1. A. When the out-of-state broker conducts negotiations in North Dakota
   2. B. When the out-of-state broker does not conduct negotiations in North Dakota physically or through communications
   3. C. Only when the customer pays the out-of-state broker directly
   4. D. Only when both brokers open a joint North Dakota trust account

   Answer: B

   Explanation: NDAC 70-02-03-03 permits the split if the out-of-state broker "does not carry on any of the negotiations in this state either by physically entering the state or by communicating with the broker electronically or through other media." Option B states that condition.

   Reference: nd1.ac_web — NDAC 70-02-03-03

4. 4Which land offering falls within North Dakota's statutory definition of subdivided lands?

   1. A. Land inside North Dakota divided into four lots
   2. B. Land outside North Dakota divided for disposition into five or more lots
   3. C. A single commercial building inside North Dakota
   4. D. Two farms outside North Dakota sold without a common promotional plan

   Answer: B

   Explanation: NDCC 43-23.1-02(7) defines subdivided lands as land "situated outside the state of North Dakota which is divided or is proposed to be divided for the purpose of disposition into five or more lots, parcels, units, or interests." Option B meets the definition.

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

5. 5At a duly assembled meeting of the five-member North Dakota Real Estate Commission, what is the minimum number of commissioners authorized to exercise its powers?

   1. A. Two commissioners
   2. B. Three commissioners
   3. C. Four commissioners
   4. D. Five commissioners

   Answer: B

   Explanation: NDCC 43-23-02 provides, "A majority of the commission, in a duly assembled meeting, may perform and exercise all of the duties and powers devolving on the commission." A majority of five is three.

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

6. 6A licensed broker affiliates with another licensed broker and performs services similar to a salesperson. What restriction applies to this broker associate?

   1. A. The broker associate may open a separate office immediately
   2. B. The broker associate may act independently on residential sales only
   3. C. The broker associate must not act independently as a broker
   4. D. The broker associate may supervise the designated broker

   Answer: C

   Explanation: NDAC 70-02-01-09 states that the affiliated broker associate "must not at any time act independently as a broker." Services require the supervising broker's full consent and knowledge.

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

7. 7A salesperson creates an advertisement that displays the salesperson's name more prominently than the brokerage trade name. Does it comply with North Dakota rules?

   1. A. Yes, if the salesperson has a current license
   2. B. Yes, if the broker approves by email
   3. C. No, the trade name must be at least equal in size and visibility
   4. D. No, a salesperson's name can never appear

   Answer: C

   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." The proposed layout does not comply.

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

8. 8Absent an exemption, after which registration milestone may a person in North Dakota first offer an interest in out-of-state subdivided lands?

   1. A. Filing the registration application
   2. B. Issuance of the notice of filing
   3. C. Drafting the public offering statement
   4. D. Registration of the subdivided lands

   Answer: D

   Explanation: NDCC 43-23.1-04(1) makes it unlawful "To offer or to dispose of any interest in subdivided lands located without this state prior to the time that the subdivided lands are registered in accordance with this chapter." The preliminary filing steps do not authorize the offer.

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

9. 9Who is the statutory custodian of the North Dakota Real Estate Commission's records?

   1. A. The commission chair
   2. B. The attorney general
   3. C. The executive director
   4. D. The secretary of state

   Answer: C

   Explanation: NDCC 43-23-03 says, "The executive director is the custodian of all records of the commission." The executive director is the correct official.

   Reference: North Dakota Century Code t43c23 — NDCC 43-23-03

10. 10An individual salesperson forms an organization to receive compensation. Which ownership structure can qualify for an organization license?

    1. A. Ownership by the salesperson alone or with the spouse or licensees in the same firm
    2. B. Ownership by any unlicensed investors selected by the salesperson
    3. C. Ownership exclusively by customers of the brokerage
    4. D. Ownership by licensees from unrelated firms without the salesperson

    Answer: A

    Explanation: NDCC 43-23-05.1(1)(a) permits ownership "solely by an individual who is licensed as a salesperson, broker, or broker associate, or by that individual and that individual's spouse, or by that individual and other salespersons, brokers, and broker associates within the same firm." Option A tracks that rule.

    Reference: North Dakota Century Code t43c23 — NDCC 43-23-05.1(1)(a)