Free North Dakota Agency Practice Test — LicenseIQ

Question 1

A homicide occurred in a listed home three years ago. A buyer does not ask about it. The listing agent:

Accepted Answer

N.D. Admin. Code 70-02-01-20 says psychologically impacted properties are not a material fact that must be volunteered. If a buyer asks, the licensee must ask the owner and relay the answer, or say the owner refused.

Question 2

An appointed agent may share the client's confidential information with:

Accepted Answer

N.D. Admin. Code 70-02-03-17 lets an appointed agent share confidences with the designated broker for advice and requires the broker to keep them confidential. Sharing with other licensees in the firm is not permitted.

Question 3

At an open house for a listed home, individual written agency disclosure to each visitor is not required if:

Accepted Answer

N.D. Admin. Code 70-02-03-15.1 excuses individual written notice at an open house if the agency relationship is conspicuously displayed. Business cards do not disclose whom the licensee represents.

Question 4

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 5

A buyer asks the agent whether the seller's title has any defects. The agent should:

Accepted Answer

N.D. Admin. Code 70-02-03-08 forbids licensees from practicing law and directs them to recommend title examination and legal counsel when a party's interests require it.

Question 6

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 7

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 8

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 9

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 10

A licensed agent from a state that has no reciprocity agreement with North Dakota passed her home state's exam. To get a North Dakota salesperson license she must:

Accepted Answer

N.D. Admin. Code 70-02-01-06 lets an applicant licensed in a nonreciprocal state who passed another state's exam take only the North Dakota state portion, without a prelicense course. The Commission's application page says the same.

Question 11

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 12

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 13

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 14

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 15

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 16

In a sale of a single-family home, when must a licensee give a seller the written agency disclosure?

Accepted Answer

N.D. Admin. Code 70-02-03-15.1 requires disclosure at the first substantive contact, which for a seller is before a listing agreement is signed. 'Within five days after' would come too late.

Question 17

A licensee never gave the required agency disclosure in a one-to-four-unit residential sale. Under the Commission's rule, the licensee:

Accepted Answer

N.D. Admin. Code 70-02-03-15.1(8) bars a licensee from suing for a commission unless agency was disclosed as required. The Recovery Fund fee is a one-time licensing payment unrelated to disclosure.

Question 18

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 19

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 20

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 21

A seller whose exclusive listing with another firm has two months left calls Agent K and asks K to list the home. K may:

Accepted Answer

N.D. Admin. Code 70-02-03-11 allows a licensee to respond when the owner initiates contact, but the new agreement takes effect only after the existing one expires or is released.

Question 22

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 23

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 24

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 25

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

North Dakota real estate agency practice test

1. A homicide occurred in a listed home three years ago. A buyer does not ask about it. The listing agent:

2. An appointed agent may share the client's confidential information with:

3. At an open house for a listed home, individual written agency disclosure to each visitor is not required if:

4. An agency relationship can be terminated by all of the following EXCEPT:

5. A buyer asks the agent whether the seller's title has any defects. The agent should:

6. An agent authorized to perform a single specific act for a principal is a:

7. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

8. Which fiduciary duty continues even after the agency relationship has ended?

9. A material defect that a seller/agent must disclose is one that:

10. A licensed agent from a state that has no reciprocity agreement with North Dakota passed her home state's exam. To get a North Dakota salesperson license she must:

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

12. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

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

14. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

15. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

16. In a sale of a single-family home, when must a licensee give a seller the written agency disclosure?

17. A licensee never gave the required agency disclosure in a one-to-four-unit residential sale. Under the Commission's rule, the licensee:

18. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

19. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

20. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

21. A seller whose exclusive listing with another firm has two months left calls Agent K and asks K to list the home. K may:

22. The client a broker represents is the:

23. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

24. The best way to create an agency relationship is a(n):

25. Which of the following is a fiduciary duty an agent owes the principal?

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