Free North Dakota Real Estate Practice Test (2026) — LicenseIQ

Question 1

On June 30 the fund holds $51,000 and there are 3,000 licensees. What is the smallest equal per-licensee assessment that restores the fund to its required minimum?

Accepted Answer

The shortfall is $60,000 − $51,000 = $9,000, and $9,000 ÷ 3,000 = $3. Nine dollars is the shortfall in thousands, not the per-person amount; $20 is only the cap.

Question 2

A seller wants to change several material terms in a buyer's offer. Under the Commission's rule, the best practice is to:

Accepted Answer

N.D. Admin. Code 70-02-03-06 says changes must be initiated and agreed to by the offeror, and material or extensive changes call for rewriting the entire offer.

Question 3

A listing agent receives three written offers on the same afternoon. The agent must:

Accepted Answer

N.D. Admin. Code 70-02-03-06 requires prompt presentation of every written offer. Screening offers violates the rule and NDCC 43-23-11.1.

Question 4

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 5

A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

Accepted Answer

A variance grants relief from a specific zoning requirement; a setback deviation is an area variance. A building permit only authorizes construction that complies with the rules.

Question 6

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 7

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 8

Who is responsible for supervising all advertising by licensees of a North Dakota firm?

Accepted Answer

N.D. Admin. Code 70-02-03-02.1 requires all advertising to be supervised by the designated broker, who also supervises teams under a written policy (70-02-01-21).

Question 9

North Dakota's homestead exemption protects a home with a value of up to how much over and above liens and encumbrances?

Accepted Answer

NDCC 47-18-01 limits the homestead to $150,000 in value over and above liens or encumbrances.

Question 10

Which is an example of an economic characteristic of land?

Accepted Answer

Scarcity, improvements, permanence of investment and area preference are economic characteristics; immobility, indestructibility and uniqueness are physical.

Question 11

An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

Accepted Answer

Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.

Question 12

When a licensee will serve a person as a customer rather than a client, the Commission's rules require:

Accepted Answer

N.D. Admin. Code 70-02-03-15.2 requires the customer to sign a written nonagency disclosure before services begin, with a copy in the file. A buyer's broker agreement would create a client relationship.

Question 13

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 14

A rectangular lot is 100 ft by 150 ft. How many square feet is it?

Accepted Answer

Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)

Question 15

The Subdivided Lands Disposition Act (NDCC 43-23.1) applies to:

Accepted Answer

NDCC 43-23.1 defines a subdivision as land outside North Dakota divided into five or more lots or interests for disposition, or offered under a common promotional plan.

Question 16

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 17

Which debt can be enforced against a North Dakota homestead despite the exemption?

Accepted Answer

NDCC 47-18-04 subjects the homestead to improvement liens, mortgages signed by both spouses, purchase-money debt and taxes. Unsecured debts reach only value above $150,000 over liens.

Question 18

Either party may end a month-to-month residential tenancy by giving at least:

Accepted Answer

NDCC 47-16-15 requires at least one calendar month's written notice. Three days is the notice of intent to evict under 47-32-02.

Question 19

After the buyer and seller sign a sales contract but before closing, the contract is:

Accepted Answer

A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).

Question 20

An Arizona developer's advertising for lots offered in North Dakota states 'Approved by the North Dakota Real Estate Commission.' This statement is:

Accepted Answer

NDCC 43-23.1 provides that advertising may not claim Commission approval or endorsement, even after registration. The $25,000 bond is a separate registration requirement.

Question 21

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 22

Under IRC Section 121, a single homeowner may generally exclude how much capital gain on a primary residence?

Accepted Answer

Section 121 allows up to $250,000 exclusion for a single filer ($500,000 married filing jointly) on a primary residence used 2 of the last 5 years.

Question 23

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 24

The most common form of homeowner's insurance policy for a single-family home is the:

Accepted Answer

HO-3 (special form) is the most common homeowner's policy. HO-4 is renter's insurance and HO-6 is for condominium owners.

Question 25

On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

Accepted Answer

Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.

North Dakota real estate practice test

1. On June 30 the fund holds $51,000 and there are 3,000 licensees. What is the smallest equal per-licensee assessment that restores the fund to its required minimum?

2. A seller wants to change several material terms in a buyer's offer. Under the Commission's rule, the best practice is to:

3. A listing agent receives three written offers on the same afternoon. The agent must:

4. Which action may a life tenant take WITHOUT the remainderman's consent?

5. A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

6. A salesperson receives an earnest money check from a buyer. The salesperson should:

7. A property manager owes fiduciary duties primarily to the:

8. Who is responsible for supervising all advertising by licensees of a North Dakota firm?

9. North Dakota's homestead exemption protects a home with a value of up to how much over and above liens and encumbrances?

10. Which is an example of an economic characteristic of land?

11. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

12. When a licensee will serve a person as a customer rather than a client, the Commission's rules require:

13. Which document is recorded in the county records and makes the property collateral for a loan?

14. A rectangular lot is 100 ft by 150 ft. How many square feet is it?

15. The Subdivided Lands Disposition Act (NDCC 43-23.1) applies to:

16. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

17. Which debt can be enforced against a North Dakota homestead despite the exemption?

18. Either party may end a month-to-month residential tenancy by giving at least:

19. After the buyer and seller sign a sales contract but before closing, the contract is:

20. An Arizona developer's advertising for lots offered in North Dakota states 'Approved by the North Dakota Real Estate Commission.' This statement is:

21. Under an open listing, the seller owes a commission to:

22. Under IRC Section 121, a single homeowner may generally exclude how much capital gain on a primary residence?

23. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

24. The most common form of homeowner's insurance policy for a single-family home is the:

25. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

Sources