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Which agency is responsible for licensing and regulating real estate salespersons in North Dakota?

A
B
C
D
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Key Facts: ND Real Estate Exam

140 Q

Exam Length

PSI ND candidate bulletin

100 + 40

National + State Split

PSI ND candidate bulletin

70%

Passing Score (Each Section)

NDREC

90 hrs

Pre-License Education

NDREC licensing requirements

$131

Exam Fee (PSI)

PSI ND fee schedule

12 hrs/yr

CE Renewal Requirement

NDREC (annual, Nov 16–Nov 15)

North Dakota requires 90 hours of NDREC-approved pre-license education and passage of the PSI exam (100 national + 40 state questions = 140 total; 70% passing score on each). The exam fee is $131, administered at PSI centers in Bismarck, Fargo, Grand Forks, Minot, and Williston. Key ND topics: NDREC powers (investigations, sanctions), three license types (salesperson, broker, broker associate), 12 hours annual CE (November 16–November 15 cycle), trust account rules, broker supervision, advertising (broker name required in all ads), cooperative transactions, the Recovery Fund (requires court judgment first, then NDREC suspends license after payout), subdivided/out-of-state land registration, and mineral rights severance (Bakken context — mineral rights do NOT automatically transfer unless specifically included in the deed).

Sample ND Real Estate Practice Questions

Try these sample questions to test your ND Real Estate exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 200+ question experience with AI tutoring.

1Which agency is responsible for licensing and regulating real estate salespersons in North Dakota?
A.North Dakota Real Estate Commission (NDREC)
B.North Dakota Department of Financial Institutions
C.North Dakota Secretary of State
D.North Dakota Insurance Department
Explanation: The North Dakota Real Estate Commission (NDREC) is the state agency charged with licensing, regulating, and disciplining real estate licensees in North Dakota. It is located at 1120 College Drive Suite 204, Bismarck, ND 58501. The other agencies listed have no jurisdiction over real estate licensees.
2What is the phone number for the North Dakota Real Estate Commission?
A.701-328-9749
B.701-224-5900
C.701-328-2700
D.701-255-3100
Explanation: The NDREC can be reached at 701-328-9749. Knowing how to contact the Commission is important for licensees who need guidance on compliance, need to report issues, or must submit documentation. The other numbers listed correspond to other state agencies.
3The North Dakota Real Estate Commission has the authority to do all of the following EXCEPT:
A.Impose criminal penalties and jail sentences on licensees
B.Suspend or revoke a real estate license
C.Impose fines and civil penalties on licensees
D.Investigate complaints filed against licensees
Explanation: The NDREC is an administrative body and cannot impose criminal penalties such as jail sentences — that is the exclusive power of the courts. The Commission can, however, suspend or revoke licenses, impose civil fines, and investigate complaints. Criminal charges must be pursued through the appropriate prosecutorial channels.
4When the NDREC receives a complaint against a licensee, what is the first step in the disciplinary process?
A.An investigation is conducted to gather facts
B.The licensee's license is immediately suspended
C.A public hearing is scheduled without notice
D.The complaint is automatically forwarded to the courts
Explanation: Upon receiving a complaint, the NDREC first conducts an investigation to determine whether sufficient evidence exists to support the complaint. Immediate suspension without investigation would violate due process. Only after the investigation may the Commission proceed to a formal hearing or take action.
5Under North Dakota law, which of the following is grounds for revoking a real estate license?
A.Misrepresenting the condition of a property to a buyer
B.Failing to close a transaction within 30 days
C.Representing more than one buyer in the same calendar month
D.Showing properties without a buyer representation agreement
Explanation: Misrepresentation is a serious violation under North Dakota real estate law and can result in license revocation. The NDREC treats intentional deception of clients as a fundamental breach of a licensee's duties. The other options described are not grounds for revocation under North Dakota statutes.
6A North Dakota real estate licensee who has their license suspended may appeal the NDREC's decision to which body?
A.The district court of the county in which the licensee practices
B.The North Dakota Supreme Court directly
C.The U.S. District Court for North Dakota
D.The North Dakota Department of Labor
Explanation: Administrative agency decisions in North Dakota, including NDREC disciplinary actions, are appealed to the district court in the relevant county under the Administrative Agencies Practice Act. Appeals do not go directly to the Supreme Court; the district court serves as the initial appellate body for Commission decisions.
7The NDREC may place a licensee's license on probation. What does probation typically allow?
A.The licensee to continue practicing under specific conditions set by the Commission
B.The licensee to practice without any restrictions for a trial period
C.The licensee's supervising broker to take over all transactions
D.Automatic reinstatement of the license after 90 days
Explanation: Probation is a disciplinary sanction that allows a licensee to continue practicing real estate but subject to conditions imposed by the NDREC, such as additional education, supervision, or practice restrictions. It is less severe than suspension (which stops practice) but more restrictive than a simple reprimand.
8Which of the following actions is the NDREC authorized to take without a formal hearing when there is an immediate threat to the public?
A.Issue a summary suspension of the license pending a hearing
B.Permanently revoke the license without any appeal rights
C.Impose a fine exceeding $50,000 without notice
D.Refer the matter directly to criminal prosecution
Explanation: When a licensee poses an immediate threat to public welfare, the NDREC may issue a summary (emergency) suspension to immediately halt the licensee's practice pending a full hearing. This is an exception to the normal due-process requirement because the urgency justifies action before a formal proceeding, but a hearing must follow promptly.
9How many hours of pre-licensing education must an applicant complete before taking the North Dakota real estate salesperson exam?
A.90 hours
B.60 hours
C.120 hours
D.45 hours
Explanation: North Dakota requires 90 hours of pre-licensing education for salesperson applicants. This coursework covers real estate principles, practices, and North Dakota-specific law. States vary widely in pre-licensing hours (45-180 hours), and 90 hours is North Dakota's specific requirement.
10Which company administers the North Dakota real estate licensing examination?
A.PSI Services LLC
B.Pearson VUE
C.Prometric
D.AMP (Applied Measurement Professionals)
Explanation: The North Dakota real estate licensing exam is administered by PSI Services LLC. PSI provides computer-based testing at approved testing centers. Candidates must register with PSI and pay the exam fee directly to PSI before scheduling their appointment.

About the ND Real Estate Exam

The North Dakota real estate salesperson exam covers national real estate fundamentals plus North Dakota-specific topics including NDREC regulations, salesperson and broker licensing requirements (90 hours pre-license), broker supervision rules, trust account management, advertising requirements, cooperating transactions, the Real Estate Education Research and Recovery Fund, subdivided and out-of-state land sales registration, and North Dakota's unique mineral rights laws related to the Bakken oil formation.

Questions

140 scored questions

Time Limit

4 hours total

Passing Score

70% on each section

Exam Fee

$131 (North Dakota Real Estate Commission (NDREC) / PSI Services LLC)

ND Real Estate Exam Content Outline

30%

ND Licensing & NDREC Commission

NDREC structure and powers (investigations, hearings, sanctions, license suspension/revocation), three license types (salesperson, broker, broker associate), 90-hour pre-license education, exam format (100 national + 40 state, 70% passing), $131 PSI exam fee, 12 hrs annual CE (November 16–November 15 cycle), reciprocity, inactive license status, background check requirements, Recovery Fund procedures

28%

ND Statutory Requirements & Agency

Broker supervision of salespersons, advertising rules (broker name required), commission flow (salesperson paid through broker only), agency disclosures, types of listing agreements, cooperative transactions, offer preparation and handling, conflict of interest disclosure, Code of Ethics, record-keeping requirements, trust account management (commingling prohibition, timely deposit)

22%

ND Special Topics

Subdivided land sales registration (NDREC registration before marketing), out-of-state subdivision registration requirements, buyer rescission rights for unregistered lots, Real Estate Education Research and Recovery Fund (court judgment required before claim, license suspended after payout, max per licensee), mineral rights severance (Bakken oil formation — deeds do not transfer mineral rights unless explicitly stated), agricultural land regulations, foreign ownership restrictions

20%

National Real Estate Fundamentals

Property ownership and types, contracts (purchase agreements, listing agreements, option contracts), financing (FHA/VA/conventional loans, RESPA, Reg Z, TRID), fair housing (7 protected classes, prohibited conduct), transfer of title (deeds, title insurance, closing process), valuation methods (sales comparison, cost, income approaches), real estate calculations (prorations, commission splits, LTV), property management, land use controls

How to Pass the ND Real Estate Exam

What You Need to Know

  • Passing score: 70% on each section
  • Exam length: 140 questions
  • Time limit: 4 hours total
  • Exam fee: $131

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

ND Real Estate Study Tips from Top Performers

1Know the exam format: 100 national (150 min, pass at 70) + 40 state (90 min, pass at 30) = 140 total questions; $131 PSI fee
2Master mineral rights: in North Dakota, mineral rights do NOT automatically transfer with a deed — they must be explicitly included. This is critical in Bakken oil country.
3Know the Recovery Fund process: claimant must obtain a court judgment first, then file with NDREC; after payout, NDREC automatically suspends the licensee's license
4Remember that all salesperson compensation must flow through the supervising broker — salespersons cannot be paid directly by clients or other parties
5Study subdivided/out-of-state land sales registration: lots cannot be marketed or sold to ND buyers without NDREC registration; buyers have rescission rights for unregistered lots
6Know the CE cycle: 12 hours annually from November 16 to November 15; new 90-hour pre-license graduates are exempt for first renewal
7Advertising must include the broker's name — individual salesperson names alone are not sufficient in any ND advertising
8Understand the three license types: Salesperson (supervised), Broker (supervises salespersons), and Broker Associate (broker-level who works under another broker)

Frequently Asked Questions

How many questions are on the North Dakota real estate salesperson exam?

The North Dakota real estate salesperson exam has 140 scored questions administered by PSI: 100 questions on the national portion (150 minutes) and 40 questions on the North Dakota state-specific portion (90 minutes), for a total of 240 minutes (4 hours). You must score at least 70 on the national portion and 30 on the state portion (both 70%) to pass. The $131 exam fee covers both portions. If you pass one portion but fail the other, you only need to retake the failed section — but both must be passed within 12 months of your first attempt.

What education is required for a North Dakota real estate license?

North Dakota requires 90 hours of NDREC-approved pre-license education. (Applicants who completed an older 45-hour pre-license course before January 1, 2021 may still qualify under transitional rules.) After passing the exam, new salespersons must work under a supervising broker to activate their license. The license must be placed on inactive status if the salesperson is not affiliated with a broker.

What are North Dakota's continuing education requirements?

North Dakota real estate licensees must complete 12 hours of NDREC-approved continuing education annually. The CE cycle runs from November 16 through November 15 each year. New licensees who completed the 90-hour pre-license course are exempt from CE for their first renewal. Licensees who completed the older 45-hour pre-license course must take 15 hours of post-license education within 1 year and are exempt from the 12-hour CE requirement during that period.

What is unique about North Dakota real estate law?

North Dakota has several unique real estate topics: (1) Mineral rights can be severed from surface rights — in the Bakken oil region, this is extremely important because mineral rights do NOT automatically transfer with a deed unless specifically included. Always verify mineral rights ownership separately. (2) Out-of-state and subdivided land sales require NDREC registration before marketing or selling lots to ND buyers. (3) The Real Estate Education, Research, and Recovery Fund requires a buyer to obtain a court judgment against the licensee before filing a claim — NDREC then suspends the licensee's license automatically after making a payout.