North Dakota Real Estate Exam Topics: Complete Breakdown

# North Dakota Real Estate Exam Topics: Complete Breakdown

The North Dakota real estate exam tests two bodies of knowledge: a national portion covering real estate principles applicable across the country, and a state-specific portion covering North Dakota law and practice. Here is what you need to know about each.

National Section Topics (80 Questions)

The national section is identical in structure to exams in most PSI-administered states. Expect questions across these content areas:

Property Ownership and Land Use - Types of ownership (joint tenancy, tenancy in common, severalty) - Freehold vs. leasehold estates - Encumbrances: easements, liens, deed restrictions, encroachments - Government powers: eminent domain, police power, taxation, escheat

Contracts - Elements of a valid contract (offer, acceptance, consideration, capacity, legality) - Bilateral vs. unilateral contracts - Contingencies and their effect on enforceability - Breach of contract and remedies

Finance - Types of mortgages (conventional, FHA, VA, USDA) - Loan-to-value ratio, amortization, and escrow accounts - Truth in Lending Act (TILA) and the Mortgage Disclosure Improvement Act - Foreclosure processes: judicial vs. non-judicial

Agency - Types of agency: buyer's agent, seller's agent, dual agent, transaction broker - Fiduciary duties: loyalty, obedience, disclosure, confidentiality, accounting, reasonable care - Agency disclosure requirements

Fair Housing - Federal Fair Housing Act: protected classes (race, color, national origin, religion, sex, familial status, disability) - Exemptions and steering/blockbusting/redlining definitions

Property Valuation - Three approaches: sales comparison, cost, income - Gross rent multiplier and capitalization rate

State Section Topics (50 Questions)

North Dakota License Law (NDCC Chapter 43-23) - NDREC composition: 5 members appointed by the governor - License types, application requirements, and renewal (2-year cycle, 9 CE hours) - Grounds for disciplinary action and the hearing process

Agency and Disclosure in North Dakota - Agency disclosure requirements at first substantive contact - Listing agreements and their required elements - Prohibited practices and misrepresentation

Water Rights - Prior appropriation doctrine: first in time, first in right - Beneficial use requirement - How water rights transfer with real property

Agricultural Land and Mineral Rights - Restrictions on corporate farming and non-resident land ownership - Severed mineral estates: how they are created, disclosed, and transferred - Oil and gas lease basics relevant to real estate transactions

Deeds and Title - Deed of trust as the primary security instrument - Warranty deed, special warranty deed, and quitclaim deed - No state transfer tax in North Dakota

Property Management - Landlord-tenant law basics - Security deposit rules

Master each of these areas and you will be well-positioned to reach the 75% threshold on both sections.