Free North Dakota State Law Practice Test — LicenseIQ

Question 1

On what date do all North Dakota real estate licenses expire?

Accepted Answer

N.D. Admin. Code 70-02-01-04 makes all licenses expire December 31 each year. November 15 is the date renewal applications are due.

Question 2

An applicant's real estate license in another state was revoked 18 months ago.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NDCC 43-23-08 bars licensing a person whose license was revoked in any state within the two years before applying.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 3

Three claimants hold valid unpaid judgments of $10,000, $10,000 and $5,000 against one licensee, from different transactions. How much does the $5,000 claimant receive from the fund?

Accepted Answer

NDCC 43-23.2-08 caps total payment per licensee at $15,000 and distributes pro rata. Total claims are $25,000, so the $5,000 claimant gets 5/25 × $15,000 = $3,000. Payment is not first-come, first-served.

Question 4

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 5

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 6

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 7

A North Dakota broker's trust account must be:

Accepted Answer

NDCC 43-23-14.1 requires a separate noninterest-bearing account at a federally insured in-state institution. Contrast tenant security deposits, which must be in an interest-bearing account.

Question 8

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 9

When the Commission sues in district court to stop unlicensed activity, it:

Accepted Answer

NDCC 43-23-18 lets the Commission sue in the county where the violator resides or the act occurred, and no bond is required. No prior conviction is needed for an injunction.

Question 10

When a person is first licensed in North Dakota, how much must be paid to the Real Estate Education, Research, and Recovery Fund?

Accepted Answer

NDCC 43-23.2-02 requires a $20 fee at first licensure, paid only once except for special assessments. $150 is the license application fee.

Question 11

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 12

In a sale of a 40-unit apartment building, unless all parties agree otherwise in writing, the licensee is presumed to be:

Accepted Answer

N.D. Admin. Code 70-02-03-15 covers commercial, agricultural and five-or-more-unit residential transactions and makes the licensee the seller's agent unless all parties agree otherwise in writing. North Dakota's rules do not create a transaction-broker default.

Question 13

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 14

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 15

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 16

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 17

The maximum special assessment per licensee when the Recovery Fund falls below its minimum balance is:

Accepted Answer

NDCC 43-23.2-02 limits the assessment to a sum not exceeding $20, set to restore the balance to at least $60,000.

Question 18

Which activity may an unlicensed assistant generally perform?

Accepted Answer

Unlicensed staff may perform clerical tasks like typing licensee-prepared ads, but may not compose ads, negotiate or show property.

Question 19

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 20

On a closing statement, the purchase price is a:

Accepted Answer

The seller receives the price (credit); the buyer owes it (debit).

Question 21

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 22

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 23

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 24

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 25

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

North Dakota real estate state law practice test

1. On what date do all North Dakota real estate licenses expire?

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

3. Three claimants hold valid unpaid judgments of $10,000, $10,000 and $5,000 against one licensee, from different transactions. How much does the $5,000 claimant receive from the fund?

4. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

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

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

7. A North Dakota broker's trust account must be:

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

9. When the Commission sues in district court to stop unlicensed activity, it:

10. When a person is first licensed in North Dakota, how much must be paid to the Real Estate Education, Research, and Recovery Fund?

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

12. In a sale of a 40-unit apartment building, unless all parties agree otherwise in writing, the licensee is presumed to be:

13. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

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

15. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

16. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

17. The maximum special assessment per licensee when the Recovery Fund falls below its minimum balance is:

18. Which activity may an unlicensed assistant generally perform?

19. Which is the most common and desirable way a real estate sales contract terminates?

20. On a closing statement, the purchase price is a:

21. A life estate is measured by:

22. Under the statute of frauds, a real estate sales contract must be:

23. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

24. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

25. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

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