North Dakota Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the North Dakota real estate exam, and it's also one of the most misunderstood. The North Dakota Real Estate Commission expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under North Dakota law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for ND-specific rules are among the most common failures on the state portion.
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North Dakota Agency — Practice Questions & Answers
125 questions on Agency from the North Dakota real estate question bank. First 10 are free — sign up to unlock all 125.
Q1. In North Dakota, a seller's agent must disclose their agency relationship to a buyer:
Explanation
North Dakota requires agency disclosure at first contact. A seller's agent must disclose to prospective buyers that they represent the seller before discussing the property.
Q2. In North Dakota, a transaction broker (limited agent) owes which of the following duties?
Explanation
A transaction broker (limited agent) in North Dakota owes both parties the duties of honesty, fairness, and disclosure of material facts, but does not owe full fiduciary duties to either party.
Q3. Sub-agency occurs when:
Explanation
Sub-agency occurs when one broker acts on behalf of another broker's principal. For example, a cooperating broker who works with a buyer but represents the seller is a sub-agent of the listing broker.
Q4. Which of the following is a non-waivable duty owed by all North Dakota licensees regardless of agency relationship?
Explanation
Disclosure of known material defects is a non-waivable duty owed by all licensees to all parties, regardless of who the licensee represents. This duty exists even for transaction brokers.
Q5. An agency relationship is terminated when:
Explanation
An agency relationship is terminated by mutual agreement, expiration of the agreement, completion of the transaction (closing), or other events such as death or bankruptcy of a party.
Q6. In North Dakota, which disclosure form informs prospective clients about available agency options?
Explanation
North Dakota requires licensees to provide an Agency Disclosure Statement to prospective clients that explains the agency relationships available, including seller agency, buyer agency, and transaction brokerage.
Q7. A buyer's agent owes which of the following duties to their buyer-client?
Explanation
A buyer's agent owes full fiduciary duties to the buyer including loyalty, confidentiality, obedience, disclosure, accounting, and reasonable care. The agent must act in the buyer's best interest.
Q8. In North Dakota, dual agency occurs when:
Explanation
Dual agency occurs when a single licensee represents both the buyer and the seller in the same transaction. It requires informed written consent from both parties.
Q9. If a listing agent learns that the seller is willing to accept $10,000 less than the list price, the agent must:
Explanation
The seller's motivation, bottom-line price, and other confidential information shared by the client must be kept confidential by the listing agent. Disclosing it would breach the agent's fiduciary duty of confidentiality.
Q10. An agent who represents neither party but assists both parties in completing a transaction is known as a:
Explanation
A transaction broker (also called a facilitator or limited agent) assists both parties in completing the transaction without representing either party as a fiduciary.
Q11. Designated agency in North Dakota allows:
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