Free North Dakota Property Practice Test — LicenseIQ

Question 1

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 2

A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

Accepted Answer

When no bid meets the lender's minimum, the lender takes title and the property becomes REO inventory.

Question 3

An applicant's real estate license in another state was revoked 18 months ago. The North Dakota Commission:

Accepted Answer

NDCC 43-23-08 bars licensing a person whose license was revoked in any state within the two years before applying. Eighteen months is inside that window, and an inactive license is still a license.

Question 4

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 5

A title search is performed primarily to:

Accepted Answer

A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)

Question 6

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 7

The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

Accepted Answer

Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.

Question 8

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 9

Regarding commission rates, the North Dakota Real Estate Commission:

Accepted Answer

N.D. Admin. Code 70-02-01-18 says the Commission neither recommends nor recognizes uniform commission rate agreements. Commissions are negotiable; there is no state maximum percentage.

Question 10

A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

Accepted Answer

Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.

Question 11

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 12

What is the length of a regular term on the North Dakota Real Estate Commission?

Accepted Answer

NDCC 43-23-02 sets staggered five-year terms so that one expires each year. Four years is a common carryover from other states.

Question 13

For residential property of one to four units, a licensee must have a signed written listing agreement:

Accepted Answer

N.D. Admin. Code 70-02-03-04 requires a signed written listing before the property is advertised or offered.

Question 14

The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Accepted Answer

Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Question 15

The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

Accepted Answer

Substitution: a buyer will pay no more than the cost of an equally desirable alternative.

Question 16

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 17

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 18

Recording a deed in the county records primarily serves to:

Accepted Answer

Recording provides public (constructive) notice, protecting the owner's interest against later claims.

Question 19

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 20

Acting as a real estate broker in North Dakota without a license is a:

Accepted Answer

NDCC 43-23-17 makes unlicensed activity under 43-23-05 a class B misdemeanor. A class C felony is the penalty for willful violations of the Subdivided Lands Disposition Act, and an infraction is the penalty for trust account violations.

Question 21

Unless it agrees in writing, a North Dakota real estate firm has:

Accepted Answer

NDCC 43-23-12.1 relieves firms of any duty to discover defects or verify others' statements unless agreed in writing. The disclosure forms must say so (70-02-03-15.1).

Question 22

Who appoints members of the North Dakota Real Estate Commission?

Accepted Answer

Commissioners are appointed by the governor (NDCC 43-23-01), who also fills vacancies (43-23-02). A trade association may recommend people, but it has no appointment power.

Question 23

How many members serve on the North Dakota State Real Estate Commission?

Accepted Answer

NDCC 43-23-01 creates a five-member commission appointed by the governor. Three is the number of members who must be active brokers, not the total.

Question 24

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 25

What is the minimum age for a North Dakota real estate license?

Accepted Answer

NDCC 43-23-08 and N.D. Admin. Code 70-02-01-02 set the minimum age at 18. Twenty-one is a common distractor from other licensing fields.

North Dakota real estate property practice test

1. In a lease, the tenant holds a estate and the landlord holds a .

2. A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

3. An applicant's real estate license in another state was revoked 18 months ago. The North Dakota Commission:

4. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

5. A title search is performed primarily to:

6. When an owner dies with no will and no heirs, the property passes to the state through:

7. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

8. Who may perform an appraisal of real property for a lender?

9. Regarding commission rates, the North Dakota Real Estate Commission:

10. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

11. In a deed, the party conveying title is the and the party receiving title is the .

12. What is the length of a regular term on the North Dakota Real Estate Commission?

13. For residential property of one to four units, a licensee must have a signed written listing agreement:

14. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

15. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

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

17. The four unities required to create a joint tenancy are:

18. Recording a deed in the county records primarily serves to:

19. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

20. Acting as a real estate broker in North Dakota without a license is a:

21. Unless it agrees in writing, a North Dakota real estate firm has:

22. Who appoints members of the North Dakota Real Estate Commission?

23. How many members serve on the North Dakota State Real Estate Commission?

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

25. What is the minimum age for a North Dakota real estate license?

Sources

1. In a lease, the tenant holds a ____ estate and the landlord holds a ____.