North Dakota · Real estate exam prep

North Dakota Real Estate Practice Test

20 free North Dakota practice questions with no signup required. When you're ready for more, the full RealReady bank has 1,030 questions for the 2026 exam that cover both national principles and North Dakota law.

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20 North Dakota Real Estate Test Questions & Answers

Use this like a free North Dakota real estate practice test: read the question, commit to an answer, then tap to reveal the correct answer and a plain-English explanation. The ones you miss tell you where to focus next.

Q1 of 20 Licensing & Regulation

A consumer files a complaint alleging a licensee committed fraud. Which NDREC power applies FIRST?

  1. Revoke the license immediately
  2. Order restitution from the Recovery Fund
  3. Investigate the complaint
  4. Refer the matter to the Governor
Show answer & explanation

Correct: C Investigate the complaint

The NDREC has authority to investigate complaints against licensees. Investigation is the first step before any disciplinary hearing or action takes place.

Q2 of 20 Licensing & Regulation

What distinguishes a broker associate from a standard broker in North Dakota?

  1. A broker associate holds a salesperson license
  2. A broker associate works under another broker
  3. A broker associate cannot supervise salespersons
  4. A broker associate has fewer education hours
Show answer & explanation

Correct: B A broker associate works under another broker

A broker associate holds a broker license but chooses to work under the supervision of another designated broker rather than operating independently.

Q3 of 20 Licensing & Regulation

Which action is grounds for disciplinary action under NDCC 43-23-11.1?

  1. Declining to represent a buyer client
  2. Commingling client funds with personal funds
  3. Charging a commission below market rate
  4. Advertising a listing at full price
Show answer & explanation

Correct: B Commingling client funds with personal funds

Commingling trust funds (mixing client money with personal or business funds) is specifically listed as grounds for discipline under North Dakota Century Code 43-23-11.1.

Q4 of 20 Licensing & Regulation

What is the dual purpose of the North Dakota Real Estate Education, Research, and Recovery Fund?

  1. Cover E&O claims and fund marketing campaigns
  2. Fund licensing exams and pay commission salaries
  3. Insure brokerages and subsidize CE courses
  4. Compensate aggrieved persons and fund education
Show answer & explanation

Correct: D Compensate aggrieved persons and fund education

The ND Recovery Fund under NDCC 43-23.2 serves two purposes: (1) compensating persons financially harmed by licensee misconduct, and (2) funding real estate education and research.

Q5 of 20 State Practice

A seller hires a brokerage to market her home. The listing agent represents only the seller's interests. What type of agency is this?

  1. Appointed agent relationship
  2. Dual agency relationship
  3. Seller's agent relationship
  4. Buyer's agent relationship
Show answer & explanation

Correct: C Seller's agent relationship

When a licensee represents only the seller's interests, this is a seller's (owner's) agent relationship. North Dakota recognizes seller's agents, buyer's agents, dual agents, and appointed agents as the primary types of agency.

Q6 of 20 State Practice

Which name must appear on ALL real estate advertising in North Dakota?

  1. The North Dakota Real Estate Commission
  2. The salesperson's personal name
  3. The brokerage's licensed trade name
  4. The designated broker's home address
Show answer & explanation

Correct: C The brokerage's licensed trade name

NDAC 70-02-03 requires that all advertising be conducted under the brokerage agency's licensed trade name. This ensures the public can identify the responsible brokerage behind every advertisement.

Q7 of 20 State Practice

Which of the following is a duty of the designated broker in North Dakota?

  1. Setting minimum commission rates statewide
  2. Active supervision of all licensees
  3. Approving all buyer mortgage applications
  4. Issuing real estate licenses to new agents
Show answer & explanation

Correct: B Active supervision of all licensees

The designated broker is responsible for active supervision of all licensees in the firm, including trust account management, compliance with license law, proper document handling, and maintaining E&O insurance coverage.

Q8 of 20 State Practice

Which type of listing agreement guarantees the broker a commission regardless of who finds the buyer?

  1. Net listing
  2. Open listing
  3. Exclusive right to sell
  4. Exclusive agency
Show answer & explanation

Correct: C Exclusive right to sell

An exclusive right to sell listing guarantees the broker a commission no matter who procures the buyer, including the seller themselves. This provides the strongest protection for the listing broker's compensation.

Q9 of 20 State Practice

A North Dakota salesperson closes a transaction and wants the seller to pay her directly. Is this permitted?

  1. No, but she may accept a gift instead
  2. No, compensation must flow through her broker
  3. Yes, for transactions under $10,000
  4. Yes, if the seller agrees in writing
Show answer & explanation

Correct: B No, compensation must flow through her broker

In North Dakota, a salesperson may receive compensation ONLY through their designated broker. Direct payment from a client or customer to a salesperson is prohibited regardless of the transaction amount.

Q10 of 20 State Transactions

When is a seller required to provide a property disclosure in North Dakota?

  1. In every residential transaction
  2. When a licensed agent represents a party
  3. Only when the buyer requests one
  4. When the property exceeds $100,000
Show answer & explanation

Correct: B When a licensed agent represents a party

In North Dakota, the seller's disclosure requirement is triggered when a LICENSED agent represents or assists a party in the transaction. Without a licensed agent, the disclosure is not required.

Q11 of 20 State Transactions

Under the Subdivided Lands Disposition Act, when must a subdivision be registered with NDREC?

  1. Only when marketing to out-of-state buyers
  2. Before any lots are sold in the state
  3. After the developer sells 10 or more lots
  4. Within 30 days after the first sale
Show answer & explanation

Correct: B Before any lots are sold in the state

Under NDCC 43-23.1, subdivisions must be registered with NDREC BEFORE any lots are offered for sale in North Dakota. This applies to both in-state and out-of-state subdivisions.

Q12 of 20 State Transactions

In a North Dakota contract for deed, who holds legal title during the payment period?

  1. The county recorder holds title
  2. The seller retains legal title
  3. Title is held in escrow
  4. The buyer holds legal title
Show answer & explanation

Correct: B The seller retains legal title

In a North Dakota contract for deed, the seller retains legal title until the buyer completes all required payments. The buyer holds equitable interest during the contract period.

Q13 of 20 Licensing & Regulation

Which function is NOT a general power of the NDREC?

  1. Administering the Recovery Fund
  2. Prosecuting criminal violations in court
  3. Disciplining licensees for violations
  4. Setting educational standards for licensees
Show answer & explanation

Correct: B Prosecuting criminal violations in court

The NDREC sets educational standards, licenses practitioners, enforces the license law, investigates complaints, disciplines licensees, and administers the Recovery Fund. Criminal prosecution is handled by county or state prosecutors, not the Commission.

Q14 of 20 Licensing & Regulation

Which license type is considered the entry-level real estate license in North Dakota?

  1. Apprentice license
  2. Broker associate license
  3. Broker license
  4. Salesperson license
Show answer & explanation

Correct: D Salesperson license

The salesperson license is the entry-level license in North Dakota. Salespersons must work under the supervision of a licensed broker.

Q15 of 20 Licensing & Regulation

A licensee represents both the buyer and seller in a transaction without informing either party. Which violation has occurred?

  1. Negligence in property inspection
  2. Failure to maintain E&O insurance
  3. Undisclosed dual agency
  4. Practicing beyond license scope
Show answer & explanation

Correct: C Undisclosed dual agency

Under NDCC 43-23-11.1, acting for more than one party in a transaction without proper disclosure to all parties is a specific ground for disciplinary action.

Q16 of 20 Licensing & Regulation

How is the North Dakota Recovery Fund financed?

  1. A one-time $20 fee at initial application
  2. An annual $20 fee at each renewal
  3. A percentage of each transaction commission
  4. A $50 fee collected at license issuance
Show answer & explanation

Correct: A A one-time $20 fee at initial application

The Recovery Fund is funded by a one-time $20 fee collected from each licensee at the time of their initial license application. No additional contributions are required at renewal.

Q17 of 20 State Practice

In a dual agency situation at a North Dakota brokerage, the designated broker appoints Licensee A to represent the seller and Licensee B to represent the buyer. What is Licensee A's role?

  1. Appointed agent for the seller
  2. Independent contractor for the seller
  3. Dual agent for both parties
  4. Subagent of the buyer's broker
Show answer & explanation

Correct: A Appointed agent for the seller

In North Dakota dual agency, the designated broker may appoint individual salespersons to act solely for one client. Each appointed agent represents only their assigned party, to the exclusion of the other party in the transaction.

Q18 of 20 State Practice

A North Dakota salesperson places a newspaper ad featuring her name in large bold type and the brokerage name in small print below. Does this comply with advertising rules?

  1. No, only the broker's name may appear
  2. Yes, if the broker approved the ad
  3. No, the brokerage name must be equal or larger
  4. Yes, any format is acceptable
Show answer & explanation

Correct: C No, the brokerage name must be equal or larger

Under NDAC 70-02-03, all advertising must include the brokerage agency's licensed trade name at a size equal to or greater than the name of any salesperson, associate broker, or team. The salesperson's name cannot be more prominent.

Q19 of 20 State Practice

A North Dakota licensee has their license revoked by the Commission. What must the designated broker do regarding that licensee?

  1. Return the license directly to the licensee
  2. Hold the license for a 90-day appeal period
  3. Destroy the license and remove the name
  4. Transfer the license to another brokerage
Show answer & explanation

Correct: C Destroy the license and remove the name

Upon revocation of a licensee's license, the designated broker must destroy the license and remove the licensee's name from the brokerage website. This prevents the public from believing the person is still licensed.

Q20 of 20 State Practice

A North Dakota seller signs an exclusive agency listing. She later finds a buyer on her own without any agent involvement. Does she owe the listing broker a commission?

  1. Yes, the full listed commission is owed
  2. No, the seller is not obligated to pay
  3. Yes, but only half the commission rate
  4. Only if the sale closes within 30 days
Show answer & explanation

Correct: B No, the seller is not obligated to pay

Under an exclusive agency listing, the broker earns a commission only if the broker or another agent procures the buyer. If the seller finds the buyer independently, no commission is owed to the listing broker.

Want the rest of North Dakota's 1,030-question bank?

The RealReady app has all 1,030 questions covering both national real estate principles and North Dakota-specific law. The full app also includes:

  • Short articles that walk you through the why behind each topic
  • A missed-question drill mode
  • Detailed explanations on every question
  • Progress tracking with per-category accuracy

Unlike other real estate prep apps, we don't cut off access or charge a monthly subscription fee. It's a one-time $17.99, and it's yours forever.

About the exam

More about the North Dakota real estate exam

The North Dakota real estate salesperson exam is a harder test than its quiet reputation suggests. The North Dakota Real Estate Commission, known as the NDREC, licenses agents and scores the national and North Dakota state-law portions separately, so a strong national score won't carry you if your grasp of North Dakota law is thin. That gap is exactly why North Dakota-specific preparation matters as much as the national material.

North Dakota tests its own rules in ways a national course never touches, from the five-member NDREC and the powers it uses to investigate and discipline licensees, to the four agency relationships the state recognizes including the appointed agent a designated broker assigns to each side of an in-house deal, the written agency disclosure that must be a separate signed document handed over at first substantive contact under NDAC 70-02-03, the seller's property disclosure that is triggered whenever a licensed agent is involved and only covers residential buildings of four units or fewer, and the oil and gas, radon, and flood-zone facts that come up across the Bakken and the rest of the state. None of that looks like the material a candidate in a neighboring state studies. A generic real estate practice test won't cut it. You need North Dakota-specific practice questions.

FAQ

North Dakota real estate exam: your questions answered

How many questions are on the North Dakota real estate exam?

The North Dakota Real Estate Salesperson Examination has 140 scored multiple-choice questions, split into a 100-question national portion and a 40-question North Dakota state-law portion. PSI delivers both portions in one computer session and mixes in five to ten unscored experimental questions that look just like the scored ones, so the time spent on those does not count against your result.

What's the passing score for the North Dakota real estate exam?

The two portions are scored separately. You need 70 percent on the national portion, which is 70 of 100, and 75 percent on the North Dakota portion, which is 30 of 40. If you pass one portion and fail the other you only retake the portion you failed, and you may keep testing for a full year after you register.

How much does the North Dakota real estate exam cost?

PSI charges $134 to sit the salesperson exam, and that one fee covers both portions whether you take them together or separately. A retake is also $134 for one or both portions. The fee is not refundable or transferable, and it is forfeited if you do not test within one year of paying it.

How long is the North Dakota real estate exam?

Four hours total. PSI allows two and a half hours for the 100-question national portion and an hour and a half for the 40-question North Dakota portion, taken in one sitting. PSI runs North Dakota test centers in Bismarck, Minot, Grand Forks, and Fargo, and your score report prints at the test site before you leave.

Who administers the North Dakota real estate exam?

The North Dakota Real Estate Salesperson Examination is administered by PSI for the North Dakota Real Estate Commission (NDREC). You register and schedule your exam date through PSI.

Is the North Dakota real estate exam hard?

It is a serious test, and the part that catches people off guard is the 40-question North Dakota portion. The national half covers the same principles taught in every state, but the state questions reward candidates who actually studied North Dakota's agency rules, the NDAC 70-02-03 disclosure requirements, the seller's property disclosure exemptions, and the powers of the NDREC. Most people who struggle leaned too heavily on national material and underprepared on North Dakota law. Honest reps on North Dakota-specific practice questions are the difference between a first-time pass and a $134 retake.

What's on the North Dakota real estate exam?

The 100-question national portion covers property ownership, land-use controls, valuation, financing, agency, contracts, property disclosures, transfer of title, the practice of real estate, property management, and real estate math, with contracts and agency carrying the most weight on PSI's content outline. The 40-question North Dakota portion covers the duties and powers of the NDREC, licensing rules, the statutes that govern advertising, the broker and salesperson relationship, commissions, conflicts of interest, the handling of offers and listings, cooperative transactions, the code of ethics, and the Real Estate Education, Research, and Recovery Fund. Agency and disclosure are the heaviest state topics, so they are worth extra attention.

What's the best way to prepare for the North Dakota real estate exam?

After you finish North Dakota's required pre-license education, the highest-leverage move is grinding North Dakota-specific practice questions with honest feedback on every miss. National principles you can pick up from any course, but the 40-question state portion rewards repetition on NDREC rules, the four agency relationships and the appointed agent, the first-substantive-contact disclosure under NDAC 70-02-03, and the seller's property disclosure exemptions. The RealReady app gives you the full North Dakota question bank plus the national bank, detailed explanations, a missed-question drill mode, and per-category progress tracking so you can see exactly where you are weak.

Is RealReady free?

The 20 North Dakota practice questions on this page are free, no account or signup needed. Unlocking the rest of the North Dakota bank is a single in-app purchase you pay once and own, with no recurring charge and no time limit on access.

Does RealReady cover the North Dakota real estate exam?

Yes. RealReady has a dedicated North Dakota question bank built for the North Dakota real estate exam, covering the national principles every candidate sees plus the North Dakota law that trips people up, like the four agency relationships including the appointed agent, the written agency disclosure under NDAC 70-02-03, and the seller's property disclosure.

Is RealReady a real estate license course?

No. RealReady is exam practice, not a pre-license course, so it doesn't count toward North Dakota's required pre-license education hours. Use it after or alongside your coursework to drill realistic practice questions and find your weak spots before exam day.