North Dakota Real Estate Salesperson Exam — All Questions

A North Dakota salesperson license authorizes brokerage activity only while the salesperson is:

• a.A resident of North Dakota for five years
• b.A member of a local board of Realtors
• c.Licensed under a broker and carrying the required E&O insurance✓
• d.Registered with the county assessor

A North Dakota salesperson may perform brokerage activity only while licensed under a broker and carrying the required errors and omissions insurance. The license is inactive for practice until placed under a broker, and the salesperson must be licensed under another broker before continuing after leaving one.

Before the North Dakota Real Estate Commission may issue a salesperson license, the applicant must show completion of:

• a.One hundred eighty hours of approved study
• b.A two-year degree in real estate or finance
• c.Thirty hours of approved courses of study
• d.Ninety hours of approved courses of study✓

A salesperson applicant must furnish evidence of successfully completing at least ninety hours in courses of study approved by the Commission. Cite: N.D.C.C. 43-23-08(4).

A North Dakota salesperson who wants a broker license must complete, beyond the salesperson education:

• a.An additional one hundred twenty hours of study
• b.No further coursework whatsoever
• c.An additional sixty hours✓
• d.An additional thirty hours of approved study

A broker applicant must complete an additional sixty hours of approved coursework beyond the ninety hours required of a salesperson, and must also meet the experience requirement. Cite: N.D.C.C. 43-23-08(4).

Besides the education requirement, an applicant for a North Dakota broker license generally must have:

• a.Owned income-producing property in North Dakota
• b.Been a resident of North Dakota for at least five years
• c.Two years of experience as a licensed salesperson✓
• d.Served a year as an unlicensed office assistant

A broker applicant must have been actively engaged as a licensed real estate salesperson for at least two years before the date of application, or have equivalent experience the Commission accepts. Cite: N.D.C.C. 43-23-08(3).

A North Dakota applicant who has not yet finished the required prelicense coursework:

• a.May be issued a license conditioned on later proof
• b.May sit for the examination but cannot yet be licensed✓
• c.Is barred from registering for the licensing examination
• d.May practice under a broker for six months first

An applicant may sit for the licensing examination before fulfilling the education prerequisite, but the Commission may not issue the license until satisfactory evidence of completion is furnished. Cite: N.D.C.C. 43-23-08(4).

A North Dakota prelicense course completed by an applicant remains valid for:

• a.Five years from the date of completion
• b.Six months from the date of completion
• c.One full year from the date of completion
• d.Two years from completion✓

A prelicensure course is valid for two years from the date the applicant completed it, as shown on the certificate of completion or other official school documentation. Cite: N.D.A.C. 70-02-01-03(6).

To renew on time, a North Dakota licensee must file the renewal application on or before:

• a.January thirty-first
• b.The first business day of October
• c.November fifteenth✓
• d.December thirty-first

Persons wishing to continue in business must apply for renewal on or before November fifteenth of each year; a late application carries a late fee, and a license not renewed by the late date is cancelled. Cite: N.D.A.C. 70-02-01-04.

The continuing education a North Dakota licensee must complete for each renewal is:

• a.Six hours in Commission-approved courses
• b.Twelve hours in approved courses✓
• c.Twenty-four hours in approved courses
• d.Thirty hours in approved courses each year

Each broker or salesperson must complete twelve hours of continuing education in approved courses every continuing education period, which is the twelve months preceding the renewal application deadline. Cite: N.D.A.C. 70-02-04-02.

For North Dakota continuing education credit, one hour of instruction means:

• a.Sixty minutes, including scheduled breaks
• b.Forty-five minutes of any classroom activity
• c.Any session the sponsor calls an hour
• d.Fifty minutes, not counting break time✓

An hour of continuing education is fifty minutes, and time spent on breaks does not count toward that fifty-minute hour. Cite: N.D.A.C. 70-02-04-03.

To hold an active North Dakota license, a broker or salesperson must carry errors and omissions coverage of at least:

• a.$1,000,000 per claim and $3,000,000 in the aggregate
• b.$100,000 single-limit per claim, $500,000 aggregate✓
• c.Whatever amount the employing broker selects
• d.$50,000 per claim with no annual aggregate limit

The group policy standard the Commission sets requires not less than one hundred thousand dollars of single-limit liability coverage for each licensee per occurrence or claim, and an annual aggregate of not less than five hundred thousand dollars per licensee. Licensees holding inactive licenses are excepted from the coverage requirement. Cite: N.D.A.C. 70-02-05-03.

An applicant already licensed in another, nonreciprocal state who has passed that state's real estate examination:

• a.Need take only the state portion of the examination✓
• b.Is licensed automatically upon paying the license fee
• c.Must complete the ninety-hour course again
• d.Must repeat the entire North Dakota examination

An applicant currently licensed in a nonreciprocal state who has passed that state's licensing examination need take only the state portion in North Dakota, and the prelicensure course is not required. Cite: N.D.A.C. 70-02-01-06(5).