1.2 North Dakota License Requirements

North Dakota's licensing requirements differ for salespersons and brokers. Getting the numbers exactly right matters, because the state portion of the exam tests them directly.

Salesperson License Requirements

Age, Character, and Legal Status

• Be at least 18 years old at the time of application.
• Have the legal right to work in the United States.
• Demonstrate honesty, trustworthiness, and good reputation.
• Pass a criminal-history background check conducted by the ND Office of Attorney General.
• Obtain Errors & Omissions (E&O) insurance before the license is activated.

E&O note: Active licensees who lack individual coverage can buy the NDREC group policy through Rice Insurance (about $187 per calendar year). The policy must cover all activities described in NDCC 43-23-19 through 43-23-23.

Pre-License Education and Examination

Complete 90 hours of pre-license education from an NDREC-certified school, then pass the PSI exam. You must apply for licensure within two years of finishing the course.

Correction: The state passing score is 30 of 40 (75%), not "28 of 40 (70%)." The national passing score is 70 of 100. Each portion is scored separately, and you only retake a portion you fail.

Background Check Fees

All applicants undergo two reviews, paid as part of the application:

NDREC reviews the results for suitability. Convictions that may affect licensure include felonies involving fraud or dishonesty, crimes tied to real estate activity, and recent offenses. A poor credit report does not automatically disqualify an applicant, but a pattern of financial irresponsibility may be reviewed because licensees handle trust money.

Correction: The credit-history fee is $13 (not $8), and there is a separate $40 criminal-history check by the Attorney General's office.

Broker License Requirements

To upgrade to a North Dakota broker license, a salesperson must add experience and education.

Experience

Generally, active licensed real estate experience as a salesperson is required (commonly described as several years of recent, active practice), or equivalent experience that NDREC accepts.

Education and Exam

Brokers complete additional broker-level coursework beyond the original 90 hours. The broker examination is multiple choice, delivered by PSI like the salesperson exam:

Correction / common myth: North Dakota's broker exam is not a 12-problem simulation. It is a multiple-choice exam; some national broker items are scenario-based and weighted up to two points, but it is not the ARELLO-style simulation used in a few other states.

Application Process and Fees

1. Complete 90 hours of education at an NDREC-certified school.
2. Register with PSI and pass both exam portions.
3. Submit the application through NDREC Online Services with your score reports.
4. Clear the background and credit checks ($40 + $13).
5. Obtain E&O insurance (group policy ~$187/year).
6. Affiliate with a sponsoring broker so the license can be active.
7. Pay the $150 application fee and the one-time $20 Recovery Fund contribution when the license is ready to issue.

Reciprocity / Exam Waivers

North Dakota has agreements with several states that waive the national portion for qualifying out-of-state licensees, but reciprocity is never a free pass:

Exam tip: Reciprocal applicants must still pass the state portion, carry E&O insurance, and affiliate with a broker. Confirm the current list of reciprocal states on realestatend.org, because agreements change.

Unlicensed Activity and the Need for a Broker

North Dakota law makes it unlawful — and a criminal offense — to perform licensed real estate activity for compensation without a license. A salesperson can never operate independently: the license must be held by, and affiliated with, an active North Dakota broker who supervises the salesperson's transactions and handles all trust money and commissions. This is why "find a sponsoring broker" is a hard gate before activation, not an optional step.

Brokers may pay commissions only to their own affiliated, licensed salespersons (and to other brokers by agreement); they may not pay an unlicensed person for activity that requires a license. Out-of-state licensees who want to share a referral fee must do so broker-to-broker.

Exam tip: Memorize the salesperson exam line — 100 national (pass 70) + 40 state (pass 30) — and the fee stack: $134 exam, $150 application, $40 criminal check, $13 credit check, $20 one-time Recovery Fund. These exact figures appear on the state portion.