North Dakota Practice TestProperty Management

North Dakota Property Management
Practice Questions & Answers (2026)

Property management questions on the North Dakota exam cover both the practical aspects of managing rental properties and the landlord-tenant law specific to North Dakota. The North Dakota Real Estate Commission tests security deposit limits, required notice periods for entry and termination, habitability standards, and the property manager's fiduciary duties. North Dakota's landlord-tenant law has specific provisions — including notice requirements and tenant protections — that differ from what national study materials cover. These questions often involve scenarios where a property manager must navigate competing obligations to the owner-client and the tenant.

Practice Questions

North Dakota Property Management — Practice Questions & Answers

112 questions on Property Management from the North Dakota real estate question bank. First 10 are free — sign up to unlock all 112.

Q1. A property manager's primary duty is to:

A.Maximize the property's value and income for the owner
B.Protect the tenant's interests above all else
C.Minimize maintenance costs regardless of property condition
D.Comply only with local ordinances

Explanation

A property manager acts as an agent for the property owner and has a fiduciary duty to manage the property in the owner's best interest, including maximizing income and preserving or increasing property value.

Q2. A management agreement between a property manager and an owner must include:

A.A guarantee of minimum rental income
B.The scope of the manager's authority, management fees, and the term of the agreement
C.A list of all prospective tenants
D.A fixed lease rate for all units

Explanation

A management agreement must clearly define the scope of the manager's authority and responsibilities, the management fee structure, the term of the agreement, and other key terms.

Q3. Under North Dakota law, security deposits held by a property manager must be:

A.Deposited into the manager's personal account
B.Held in a separate trust account and not commingled with operating funds
C.Invested in real estate investment trusts
D.Returned within 30 days regardless of damages

Explanation

Security deposits must be held in a separate trust account and may not be commingled with the property manager's or owner's personal or operating funds.

Q4. North Dakota's landlord-tenant law generally requires a landlord to return a security deposit within how many days after a tenant vacates?

A.14 days
B.21 days
C.30 days
D.45 days

Explanation

Under North Dakota law, a landlord must return the security deposit (or provide an itemized statement of deductions) within 30 days of the tenant vacating the premises.

Q5. A gross lease requires the tenant to pay:

A.Base rent plus a share of operating expenses
B.Only a fixed base rent, with the landlord paying all operating expenses
C.All property expenses including taxes and insurance
D.Rent based on a percentage of the tenant's gross sales

Explanation

In a gross lease, the tenant pays a fixed rent amount and the landlord is responsible for paying all or most of the property's operating expenses such as taxes, insurance, and maintenance.

Q6. A triple net (NNN) lease requires the tenant to pay:

A.Only base rent
B.Base rent plus their share of taxes, insurance, and maintenance
C.Rent based on a percentage of their gross sales
D.A fixed gross rent with no additional charges

Explanation

A triple net (NNN) lease requires the tenant to pay base rent plus their proportionate share of the three 'nets': property taxes, building insurance, and maintenance/operating expenses.

Q7. When a tenant remains in possession after their lease expires without a new agreement, this is called:

A.A periodic tenancy
B.A holdover tenancy (tenancy at sufferance)
C.A tenancy at will
D.A license to occupy

Explanation

A holdover tenancy (tenancy at sufferance) exists when a tenant remains in possession after their lease has expired without the landlord's permission. The landlord may either evict the tenant or accept rent to create a new tenancy.

Q8. A property manager signs a lease on behalf of the owner. This is an example of:

A.Unauthorized practice of law
B.Express authority granted by the management agreement
C.Implied agency
D.Dual agency

Explanation

If the management agreement grants the property manager authority to sign leases, this is express authority. The manager acts as the owner's agent when executing lease agreements.

Q9. A landlord who fails to maintain a rental property in habitable condition may be subject to:

A.No penalty if the tenant fails to notify the landlord
B.Rent withholding, repair-and-deduct remedies, or lease termination by the tenant
C.Criminal prosecution only
D.A fine paid directly to the tenant

Explanation

Landlords have an implied warranty of habitability. If they breach this duty, tenants may have remedies including rent withholding, repair-and-deduct, or lease termination, depending on state law.

Q10. A property manager who discovers a fair housing violation by an owner's rental policy should:

A.Ignore it — the owner is responsible, not the manager
B.Follow the discriminatory policy since the owner signs the paychecks
C.Advise the owner of the violation and refuse to enforce the discriminatory policy
D.Report it to the tenant only

Explanation

A property manager can be held liable for fair housing violations along with the owner. The manager should advise the owner about the violation and refuse to implement discriminatory policies.

Q11. A property management company manages 50 residential units. The property manager's main goal when screening tenants should be to:

A.Select tenants based on personal preference
B.Apply consistent, objective criteria to all applicants that comply with fair housing laws
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