North Dakota Real Estate Broker Exam — All Questions

When must a North Dakota licensee disclose the available agency relationships to a consumer?

• a.Only at closing
• b.Only if the consumer requests representation
• c.After a purchase agreement is signed
• d.Before the consumer relies on the licensee, so the consumer can make an informed choice✓

North Dakota licensees must disclose the available agency relationships before the consumer relies on the licensee, explaining seller representation, buyer representation, and dual agency. The disclosure is informational and does not by itself create an agency relationship.

North Dakota permits dual agency, in which a firm represents both the buyer and seller in one transaction, only when:

• a.The listing broker approves it internally
• b.Both parties give informed consent✓
• c.The property is located in the Bakken region
• d.The buyer waives all disclosures

Dual agency is permitted only with the informed consent of both parties. A dual agent must not disclose one party's confidential negotiating information to the other, and the supervising broker must ensure consent is documented.

A North Dakota broker receives earnest money on a listing. The broker must:

• a.Deposit it into the firm's operating account
• b.Hold it as cash until closing
• c.Keep it in a trust account separate from the broker's personal and business funds✓
• d.Give it to the seller immediately

Client funds such as earnest money must be held in a trust account separate from the broker's personal and business operating funds. Commingling or converting client money is prohibited and is a frequent basis for discipline.

A salesperson affiliated with a North Dakota broker receives an earnest money check. The salesperson should:

• a.Deliver it promptly to the broker, who is responsible for the trust account✓
• b.Deposit it into the salesperson's personal account
• c.Hold it until the commission is confirmed
• d.Endorse it to the buyer's lender

A salesperson who receives client funds must deliver them promptly to the broker, who is responsible for the trust account and its records. Salespersons may not hold or commingle client money.