North Dakota Real Estate Practice Exam
(Free Questions & Answers)
The North Dakota real estate exam is administered by the North Dakota Real Estate Commission (NDREC) and covers mineral rights extensively — North Dakota's Bakken Formation has made oil and gas rights a critical real estate issue in the state. Questions on severed mineral interests, surface use agreements, and how oil and gas royalties transfer with property ownership appear regularly on the state exam. The state portion also tests NDREC's specific licensing requirements and North Dakota's exclusive buyer's broker agreement provisions.
Administered by: North Dakota Real Estate Commission · 140 questions · Passing score: 70%
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Updated May 2026 · North Dakota Real Estate Commission exam outline
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Free North Dakota Real Estate Practice Exam Questions
Test your knowledge with these North Dakota real estate practice questions. Each question is based on topics from the North Dakota Real Estate Commission exam and includes detailed explanations.
Q1. Which agency regulates real estate licenses in North Dakota?
Explanation
The North Dakota Real Estate Commission (NDREC) is the state agency responsible for licensing and regulating real estate professionals in North Dakota.
Q2. 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.
Q3. Consideration in a real estate contract can be:
Explanation
Consideration is anything of legal value exchanged between parties. It can be money, a promise to pay, a promise to do something, or a promise to refrain from doing something.
Q4. The USDA Rural Development loan program is designed to help:
Explanation
USDA Rural Development loans are available to buyers in USDA-eligible rural and suburban areas who meet income limits. These loans can offer 100% financing (no down payment) to qualifying borrowers.
Q5. In North Dakota, real property is best defined as:
Explanation
Real property (real estate) is defined as land and anything permanently attached to it, including buildings, structures, and natural features such as trees and minerals.
Q6. In the cost approach to value, reproduction cost differs from replacement cost because:
Explanation
Reproduction cost is the cost to build an exact replica of the existing structure using the same materials and design. Replacement cost is the cost to build a structure of similar utility using current materials and standards.
Q7. The Fair Housing Act exempts certain properties from its coverage. Which of the following is an exempt property?
Explanation
The Fair Housing Act exempts single-family homes sold or rented by the owner (without a broker and without discriminatory advertising) from its provisions. This is sometimes called the 'Mrs. Murphy' exemption for small owner-occupied buildings.
Q8. A special warranty deed provides that the grantor:
Explanation
A special warranty deed limits the grantor's warranty to defects that arose only during their period of ownership. It does not warrant against defects that existed before they owned the property.
Q9. A property sold for $185,000. The seller paid a 6% commission and $2,000 in other closing costs. What were the seller's total costs?
Explanation
Commission = $185,000 x 6% = $11,100. Total costs = $11,100 + $2,000 = $13,100. To solve this, multiply the relevant values: $185,000 and $2,000 at 6%.. The correct answer is $13,100.. This is a common calculation on the North Dakota real estate exam.
Q10. Radon is a naturally occurring radioactive gas that enters buildings primarily through:
Explanation
Radon is a naturally occurring radioactive gas that rises from soil and rock and enters buildings through cracks and openings in foundations. North Dakota has areas with elevated radon levels.
Q11. A variance is a request for:
Explanation
A variance is permission from the zoning authority to deviate from specific zoning requirements (such as setbacks, lot coverage, or height limits) for a particular property when strict application would cause undue hardship.
Q12. A property manager's primary duty is to:
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.
Q13. How many hours of pre-license education are required to sit for the North Dakota real estate salesperson exam?
Explanation
North Dakota requires 45 hours of approved pre-license education before a candidate may sit for the salesperson licensing exam.
Q14. 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.
Q15. A real estate contract is void if it lacks:
Explanation
A contract is void if the parties lack legal capacity. This includes minors, persons who are mentally incompetent, or those who are under the influence of substances at the time of signing.
Q16. What is amortization in the context of a mortgage loan?
Explanation
Amortization is the process of gradually paying off a mortgage loan through regular payments that cover both principal and interest. Early payments are mostly interest; later payments are mostly principal.
Q17. A fixture is an item that was once personal property and has been:
Explanation
A fixture is personal property that has been permanently attached to real property in such a way that it becomes part of the real estate. Tests for fixtures include method of attachment, adaptation, and intent.
Q18. Which appraisal principle states that the value of a property is affected by the values of surrounding properties?
Explanation
The principle of progression states that a lower-value property benefits from being located near higher-value properties. The principle of regression states the opposite — a higher-value property may suffer when surrounded by lower-value properties.
Q19. Which federal agency enforces the Fair Housing Act?
Explanation
HUD (Department of Housing and Urban Development) is the primary federal agency that enforces the Fair Housing Act. Complaints can also be filed in federal court.
Q20. In North Dakota, escrow is best described as:
Explanation
Escrow is a neutral arrangement where a third party holds funds, documents, or other items until the conditions specified in the agreement are fulfilled, at which point they are delivered to the appropriate parties.
Q21. A buyer finances $160,000 at 7% annual interest (interest only). What is the monthly interest payment?
Explanation
Monthly interest = $160,000 x (7% / 12) = $160,000 x 0.005833 = $933.33, approximately $933. To solve this, multiply the relevant values: $160,000 at 7%.. The correct answer is $933.. This is a common calculation on the North Dakota real estate exam.
Q22. Lead-based paint disclosure is required for homes built:
Explanation
Federal law (Residential Lead-Based Paint Hazard Reduction Act) requires disclosure of known lead-based paint hazards in homes built before 1978, when lead paint was banned for residential use.
Q23. A nonconforming use is a property use that:
Explanation
A nonconforming use (or legal nonconforming use) is a use that was legally established before current zoning regulations were enacted. It is allowed to continue but generally cannot be expanded.
Q24. A management agreement between a property manager and an owner must include:
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.
Q25. How many questions are on the North Dakota real estate salesperson licensing exam?
Explanation
The North Dakota real estate salesperson exam contains 120 questions divided between national and state-specific portions.
1,500+ questions · Timed mock exams · Detailed explanations
North Dakota Real Estate Exam — What to Expect
What Is On The North Dakota Real Estate Exam?
The North Dakota real estate salesperson exam is administered by the North Dakota Real Estate Commission and tests both national real estate principles and North Dakota-specific laws and regulations. The exam contains 140 multiple-choice questions, and you must score at least 70% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to North Dakota — including regulations set by the North Dakota Real Estate Commission, North Dakota agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the North Dakota exam include: Property Ownership, Agency Law, Contracts, Finance, North Dakota License Law. Candidates who struggle on the ND exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but North Dakota law questions require targeted preparation.
Official North Dakota Exam Content Areas
Source: North Dakota Real Estate Commission · Updated June 2026
| Content Area | Questions |
|---|---|
| National Section (11 PSI topic areas — North Dakota uses 100 national questions, more than most PSI states) | 100 |
| North Dakota State Section (ND real estate law, licensing requirements, NDREC rules) | 40 |
- ▸North Dakota salesperson national section is 100 questions (not 80 like most PSI states) — salesperson national passing = 70; broker national passing = 75
- ▸State section passing: 30/40 correct (75%) — higher threshold than the national section for salesperson candidates
- ▸Source: North Dakota Real Estate Commission (realestatend.org) and PSI Candidate Bulletin #4662
Practice North Dakota questions by topic — start with North Dakota License Law, Agency, and Contracts to build your foundation, then work through remaining topics.
How Many Questions Are On The North Dakota Exam?
The North Dakota real estate salesperson exam has 140 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering North Dakota-specific laws administered by the North Dakota Real Estate Commission. You have 4 hours to complete the exam.
North Dakota Real Estate Exam Passing Score
You need a 70% to pass the North Dakota real estate exam. The first-time pass rate in North Dakota is approximately 54%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the ND-specific portion. Our North Dakota practice exam is built specifically around the North Dakota Real Estate Commission exam outline.
Read our complete North Dakota exam study guide — state-specific topics, 5-week study plan, and what to focus on before exam day.
Most Difficult Topics On The North Dakota Exam
These are the areas where North Dakota candidates most commonly lose points — and a key reason why some states produce harder real estate exams than others.
North Dakota Real Estate Commission's specific licensing requirements, supervision rules, and the 45-hour pre-license course requirements are tested on the state portion with ND-specific provisions.
North Dakota's Bakken Formation means oil and gas rights are a major real estate issue. Questions on severed mineral interests, surface use agreements, and how mineral rights transfer with property are tested regularly on the ND state exam.
North Dakota's specific requirements for exclusive buyer broker agreements — including what must be disclosed and the legal effect of these agreements under ND law — are tested on the state portion.
North Dakota's underground storage tank regulations and environmental disclosure requirements related to oil and gas activity near residential properties are state-specific topics that appear on the state exam.
North Dakota Real Estate Math
The North Dakota real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the ND exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
🧮 See all exam math formulas →How To Get Your North Dakota Real Estate License
- 1Complete 45 hours of state-approved pre-license education covering topics required by the North Dakota Real Estate Commission.
- 2Submit your application to the North Dakota Real Estate Commission and pay the required fees (exam fee: $80).
- 3Pass the North Dakota real estate salesperson exam (140 questions, 70% to pass).
- 4Complete a background check and fingerprinting as required by North Dakota law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the North Dakota Real Estate Commission.
Best Study Strategy For The North Dakota Exam
Start with North Dakota license law first. State-specific regulations administered by the North Dakota Real Estate Commission make up a significant portion of the ND exam and are not covered in most national study materials.
Master the math early. The North Dakota real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The North Dakota exam has 140 questions within a 4 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the ND exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of North Dakota law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but North Dakota may have additional protected classes. Know both federal and North Dakota-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
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