OpenExamsFREE PRACTICE — ANY EXAM

North Dakota Real Estate Salesperson — Requirements & Free Practice

US-ND · License preparation

350 free questions · Answer explanations · No signup required

Choose what to practice

Start with an exam below. Your examination requirements depend on your application pathway. View licensing requirements

Combined practice

Choose an exam or combined practice to begin.

Licenses, application pathways and examination requirements

Each license and applicant pathway has its own requirements and exemptions. Choosing practice questions does not determine your eligibility.

Real Estate Salesperson License

A real estate salesperson license tied to a designated broker; it does not authorize the licensee to transact business under another broker.

Licensing authority: North Dakota Real Estate Commission · Application information

Annual renewal of active salesperson license
No examination is required for this applicant pathway.
Continuing education
Complete 12 hours in the preceding continuing-education period, including any Commission-required topics; nonresidents meeting resident-state requirements are exempt and health, military service or other good cause may justify exceptions or extensions.
Existing license
Current active salesperson license.
Insurance
Provide errors-and-omissions coverage for active status.
Renewal
Apply by November 15 for the following calendar year; licenses expire December 31. Submit the renewal fee and education certification.

Official no-examination sources

Effective from 2026-09-22.

Reissue existing salesperson license on change of broker
No examination is required for this applicant pathway.
Notification
Notify the Commission within five days of change and identify the new supervising licensed broker.
Practice
Do not practice after the former broker supervision ends until the Commission reissues the license to the new broker.
Reissuance
Return the previously issued license for a new license covering its unexpired term.

Official no-examination sources

Effective from 2026-09-22.

Relicensure after nonrenewal cancellation — Military servicemember or spouse covered license recognition
No examination is required for this applicant pathway.
Cancellation
The former license was canceled for failure to renew; satisfy prospective-licensee application and examination requirements under the applicable initial-issuance pathway.
Duration
If these five criteria are met, the military service member or their spouse’s covered license shall be considered valid at a similar scope of practice and in the discipline (license level – broker or salesperson) applied for with the NDREC for the duration of military orders.
Eligibility
1.   Have moved to North Dakota because of orders for military service; 2.   Provide a copy of the military orders to the NDREC; 3.   Have actively used the license at some point during the two years immediately preceding the move; 4.   Remain in good standing with: a.   the licensing authority that issued the covered license; and b.   every other licensing authority that issued a license valid for a similar scope of practice and in the discipline       (license level – broker or salesperson) applied for in North Dakota; and 5.   Submit to the authority of the NDREC for the purposes of standards of practice, discipline, and fulfillment of any continuing       education requirements.
Issuance
Submit Request to Issue Real Estate License signed by the associated North Dakota broker, proof of errors-and-omissions insurance, and the one-time $20 recovery-fund payment.
Licensing documents
Provide military orders and certificates of licensure or other proof of good standing issued within the past 30 days from each licensing jurisdiction; contact NDREC for instructions.
Renewal
Annually complete 12 hours of required continuing education, obtain errors-and-omissions coverage, and renew with current certificates of licensure and the required renewal fee.
Waiver
If NDREC determines you are a military service member or their spouse who meets the 5 criteria above, NDREC will waive the application fee, credit check, background check, pre-licensure education, and state and national exam requirements.

Official no-examination sources

Effective from 2026-09-22.

Relicensure after nonrenewal cancellation — Nonresident licensure with nonreciprocal license
North Dakota Real Estate Examination — State Portion
Active status
Broker association and errors-and-omissions insurance are required for active status.
Application
Complete the online application and applicable fees, credit and criminal-history checks, certificate-of-licensure documents and nonresident consent where required; submit a Request to Issue License and the recovery-fund payment.
Broker
The designated broker must obtain a North Dakota nonresident license before the associated salesperson can be licensed.
Cancellation
The former license was canceled for failure to renew; satisfy prospective-licensee application and examination requirements under the applicable initial-issuance pathway.
Education
No prelicensure course required when already licensed in another nonreciprocal state.
License
Hold a valid salesperson license in the principal place of business, certified in good standing with no pending complaints.
Prior exam
Successfully passed the real estate licensing examination given in another state; that state examination is an applicant condition, not a North Dakota exam leaf.
Relicensure after nonrenewal cancellation — Nonresident reciprocal licensure
No examination is required for this applicant pathway.
Active status
For active status, obtain supervising broker approval and errors-and-omissions coverage.
Application
Complete the online reciprocal application, certificates of licensure, credit and criminal-history checks, application fees, Request to Issue License and one-time recovery-fund payment.
Cancellation
The former license was canceled for failure to renew; satisfy prospective-licensee application and examination requirements under the applicable initial-issuance pathway.
Eligibility
Both licensed and primarily resident in a jurisdiction named in the Commission reciprocal instructions; hold a salesperson license in good standing.
Licensing evidence
Meet the licensing requirements, including examinations, in the primary state of residence. Unidentified or other-state examinations are applicant conditions.

Official no-examination sources

Effective from 2026-09-22.

Relicensure after nonrenewal cancellation — Resident initial licensure by examination
Application
Submit the complete online application, documents and fees; supply fingerprints, criminal-history and credit information; Commission approval is required.
Authorization window
The rule requires testing within four months after the Commission notifies the applicant of qualification; otherwise a new application and fees are required.
Cancellation
The former license was canceled for failure to renew; satisfy prospective-licensee application and examination requirements under the applicable initial-issuance pathway.
Character
Honesty, truthfulness, fair dealing and competency; no real estate license revoked within the preceding two years.
Education
Complete at least 90 hours of Commission-approved education before issuance; the statute allows testing before completing education. Course completion remains valid for two years.
Issuance
Submit Request to Issue Real Estate License and the one-time $20 recovery-fund payment. Active status requires broker approval and errors-and-omissions insurance; initial inactive issuance is available.
Minimum age
At least 18 years old at application.
Rule scheduling
NDAC 70-02-01-02(2) and -03(1) require application and written authorization before testing; the Commission Exam Information page states: "Salesperson applicants can test at any time and no longer need test codes from the commission." The rule remains the higher-ranked requirement.
Score window
Pass both portions within twelve months of the first examination; otherwise submit a new application and fees.
Place a licensed salesperson on inactive status
No examination is required for this applicant pathway.
Existing license
Qualified licensed salesperson requests inactive status in the Commission-prescribed format.
Practice
Stop all licensed activities until reactivated.
Renewal
Continue paying annual renewal fees.

Official no-examination sources

Effective from 2026-09-22.

Annual renewal of inactive salesperson license
No examination is required for this applicant pathway.
Education
No continuing education is required during inactive status; applicable education must be completed before active reissuance.
Existing license
Inactive salesperson license.
Practice
No licensed activity is authorized while inactive.
Renewal
Renew annually and pay the renewal fee to retain inactive status indefinitely.

Official no-examination sources

Effective from 2026-09-22.

Reactivate license made inactive for missing insurance
No examination is required for this applicant pathway.
Insurance
Provide the Commission proof of qualifying insurance; activation is effective as of the insurance effective date.
Other conditions
Any otherwise applicable reactivation education and broker-association requirements remain applicable.
Practice
No licensed activities until proof is provided and the license has been activated.

Official no-examination sources

Effective from 2026-09-22.

Late renewal before cancellation
No examination is required for this applicant pathway.
Active status
Active renewal also requires insurance; do not practice after expiration until renewed.
Documents
Submit renewal fee, education certification and the late fee for each month or fraction of a month after the deadline.
Timing
File before the late-renewal date set by the Commission; a canceled license follows relicensure instead.

Official no-examination sources

Effective from 2026-09-22.

Military servicemember or spouse covered license recognition
No examination is required for this applicant pathway.
Duration
If these five criteria are met, the military service member or their spouse’s covered license shall be considered valid at a similar scope of practice and in the discipline (license level – broker or salesperson) applied for with the NDREC for the duration of military orders.
Eligibility
1.   Have moved to North Dakota because of orders for military service; 2.   Provide a copy of the military orders to the NDREC; 3.   Have actively used the license at some point during the two years immediately preceding the move; 4.   Remain in good standing with: a.   the licensing authority that issued the covered license; and b.   every other licensing authority that issued a license valid for a similar scope of practice and in the discipline       (license level – broker or salesperson) applied for in North Dakota; and 5.   Submit to the authority of the NDREC for the purposes of standards of practice, discipline, and fulfillment of any continuing       education requirements.
Issuance
Submit Request to Issue Real Estate License signed by the associated North Dakota broker, proof of errors-and-omissions insurance, and the one-time $20 recovery-fund payment.
Licensing documents
Provide military orders and certificates of licensure or other proof of good standing issued within the past 30 days from each licensing jurisdiction; contact NDREC for instructions.
Renewal
Annually complete 12 hours of required continuing education, obtain errors-and-omissions coverage, and renew with current certificates of licensure and the required renewal fee.
Waiver
If NDREC determines you are a military service member or their spouse who meets the 5 criteria above, NDREC will waive the application fee, credit check, background check, pre-licensure education, and state and national exam requirements.

Official no-examination sources

Effective from 2026-09-22.

Nonresident licensure with nonreciprocal license
North Dakota Real Estate Examination — State Portion
Active status
Broker association and errors-and-omissions insurance are required for active status.
Application
Complete the online application and applicable fees, credit and criminal-history checks, certificate-of-licensure documents and nonresident consent where required; submit a Request to Issue License and the recovery-fund payment.
Broker
The designated broker must obtain a North Dakota nonresident license before the associated salesperson can be licensed.
Education
No prelicensure course required when already licensed in another nonreciprocal state.
License
Hold a valid salesperson license in the principal place of business, certified in good standing with no pending complaints.
Prior exam
Successfully passed the real estate licensing examination given in another state; that state examination is an applicant condition, not a North Dakota exam leaf.
Reactivate inactive salesperson license
No examination is required for this applicant pathway.
Broker
Associate with a licensed broker and obtain Commission reactivation before practicing.
Education
Meet the continuing-education hours for each inactive period, capped at the preceding three periods, completed within the preceding three years.
Insurance
Submit proof of errors-and-omissions insurance for active status.

Official no-examination sources

Effective from 2026-09-22.

Nonresident reciprocal licensure
No examination is required for this applicant pathway.
Active status
For active status, obtain supervising broker approval and errors-and-omissions coverage.
Application
Complete the online reciprocal application, certificates of licensure, credit and criminal-history checks, application fees, Request to Issue License and one-time recovery-fund payment.
Eligibility
Both licensed and primarily resident in a jurisdiction named in the Commission reciprocal instructions; hold a salesperson license in good standing.
Licensing evidence
Meet the licensing requirements, including examinations, in the primary state of residence. Unidentified or other-state examinations are applicant conditions.

Official no-examination sources

Effective from 2026-09-22.

Resident initial licensure by examination
Application
Submit the complete online application, documents and fees; supply fingerprints, criminal-history and credit information; Commission approval is required.
Authorization window
The rule requires testing within four months after the Commission notifies the applicant of qualification; otherwise a new application and fees are required.
Character
Honesty, truthfulness, fair dealing and competency; no real estate license revoked within the preceding two years.
Education
Complete at least 90 hours of Commission-approved education before issuance; the statute allows testing before completing education. Course completion remains valid for two years.
Issuance
Submit Request to Issue Real Estate License and the one-time $20 recovery-fund payment. Active status requires broker approval and errors-and-omissions insurance; initial inactive issuance is available.
Minimum age
At least 18 years old at application.
Rule scheduling
NDAC 70-02-01-02(2) and -03(1) require application and written authorization before testing; the Commission Exam Information page states: "Salesperson applicants can test at any time and no longer need test codes from the commission." The rule remains the higher-ranked requirement.
Score window
Pass both portions within twelve months of the first examination; otherwise submit a new application and fees.

north dakota real estate organization license

Organization license for a licensed salesperson, with permitted spouse or same-firm licensee ownership; the organization cannot conduct transactions requiring a real estate license or portray itself as a broker or brokerage firm.

Licensing authority: North Dakota Real Estate Commission · Application information

Register salesperson compensation organization
No examination is required for this applicant pathway.
Application
Submit organizational documents and application; pay the organization fee. The statutory ownership restrictions control over broader membership wording on the Commission page.
Licensed individual
The owner must possess and maintain a valid active salesperson license.
Ownership
Meet the ownership limits in NDCC 43-23-05.1(1)(a): a licensed individual alone, with the spouse, or with other licensees in the same firm.
Restrictions
The organization must not engage in transactions requiring a license or advertise itself as a broker or brokerage firm.

Official no-examination sources

Effective from 2026-09-22.

Activate salesperson organization made inactive
No examination is required for this applicant pathway.
Fee
Pay the organization fee each time its license is activated.
Licensed individual
Owner must again possess and maintain a valid active individual real estate license.
Restrictions
The organization retains the ownership and nonbrokerage limitations of NDCC 43-23-05.1.

Official no-examination sources

Effective from 2026-09-22.

Provisional Real Estate Salesperson License

Provisional licensure authorized for military applicants by NDCC 43-51-11.1 and for complete routine applications between board meetings by NDCC 43-51.1-03(2).

Licensing authority: North Dakota Real Estate Commission · Application information

Automatic provisional license after thirty day military application delay
No examination is required for this applicant pathway.
Duration
Valid until the Commission grants or denies the permanent application or issues an authorization under subsection 2.
Eligibility
Completed military member or military spouse application under NDCC 43-51-11.1(1).
Timing
Commission neither grants nor denies the license nor issues an interim authorization within thirty days of receipt.

Official no-examination sources

Effective from 2026-09-22.

Provisional license for military applicant substantially meeting standards
No examination is required for this applicant pathway.
Assessment
Competency methods and unmet permanent-license requirements are determined by the Commission; the temporary issuance provision identifies no separate examination.
Duration
No more than two years; remains valid while progressing toward unmet requirements, subject to statutory termination events.
Eligibility
Military member or military spouse; apply and substantially meet the competency and public-protection requirements under NDCC 43-51-11.1(1).
Fee
No provisional-license or temporary-permit fee.

Official no-examination sources

Effective from 2026-09-22.

Routine application between board meetings — Military servicemember or spouse covered license recognition
No examination is required for this applicant pathway.
Delegation
Commission may authorize staff or selected members to issue this interim form between meetings; application must be routine, complete and meet every underlying licensure requirement.
Duration
If these five criteria are met, the military service member or their spouse’s covered license shall be considered valid at a similar scope of practice and in the discipline (license level – broker or salesperson) applied for with the NDREC for the duration of military orders.
Eligibility
1.   Have moved to North Dakota because of orders for military service; 2.   Provide a copy of the military orders to the NDREC; 3.   Have actively used the license at some point during the two years immediately preceding the move; 4.   Remain in good standing with: a.   the licensing authority that issued the covered license; and b.   every other licensing authority that issued a license valid for a similar scope of practice and in the discipline       (license level – broker or salesperson) applied for in North Dakota; and 5.   Submit to the authority of the NDREC for the purposes of standards of practice, discipline, and fulfillment of any continuing       education requirements.
Issuance
Submit Request to Issue Real Estate License signed by the associated North Dakota broker, proof of errors-and-omissions insurance, and the one-time $20 recovery-fund payment.
Licensing documents
Provide military orders and certificates of licensure or other proof of good standing issued within the past 30 days from each licensing jurisdiction; contact NDREC for instructions.
Renewal
Annually complete 12 hours of required continuing education, obtain errors-and-omissions coverage, and renew with current certificates of licensure and the required renewal fee.
Waiver
If NDREC determines you are a military service member or their spouse who meets the 5 criteria above, NDREC will waive the application fee, credit check, background check, pre-licensure education, and state and national exam requirements.

Official no-examination sources

Effective from 2026-09-22.

Routine application between board meetings — Nonresident licensure with nonreciprocal license
North Dakota Real Estate Examination — State Portion
Active status
Broker association and errors-and-omissions insurance are required for active status.
Application
Complete the online application and applicable fees, credit and criminal-history checks, certificate-of-licensure documents and nonresident consent where required; submit a Request to Issue License and the recovery-fund payment.
Broker
The designated broker must obtain a North Dakota nonresident license before the associated salesperson can be licensed.
Delegation
Commission may authorize staff or selected members to issue this interim form between meetings; application must be routine, complete and meet every underlying licensure requirement.
Education
No prelicensure course required when already licensed in another nonreciprocal state.
License
Hold a valid salesperson license in the principal place of business, certified in good standing with no pending complaints.
Prior exam
Successfully passed the real estate licensing examination given in another state; that state examination is an applicant condition, not a North Dakota exam leaf.
Routine application between board meetings — Nonresident reciprocal licensure
No examination is required for this applicant pathway.
Active status
For active status, obtain supervising broker approval and errors-and-omissions coverage.
Application
Complete the online reciprocal application, certificates of licensure, credit and criminal-history checks, application fees, Request to Issue License and one-time recovery-fund payment.
Delegation
Commission may authorize staff or selected members to issue this interim form between meetings; application must be routine, complete and meet every underlying licensure requirement.
Eligibility
Both licensed and primarily resident in a jurisdiction named in the Commission reciprocal instructions; hold a salesperson license in good standing.
Licensing evidence
Meet the licensing requirements, including examinations, in the primary state of residence. Unidentified or other-state examinations are applicant conditions.

Official no-examination sources

Effective from 2026-09-22.

Routine application between board meetings — Resident initial licensure by examination
Application
Submit the complete online application, documents and fees; supply fingerprints, criminal-history and credit information; Commission approval is required.
Authorization window
The rule requires testing within four months after the Commission notifies the applicant of qualification; otherwise a new application and fees are required.
Character
Honesty, truthfulness, fair dealing and competency; no real estate license revoked within the preceding two years.
Delegation
Commission may authorize staff or selected members to issue this interim form between meetings; application must be routine, complete and meet every underlying licensure requirement.
Education
Complete at least 90 hours of Commission-approved education before issuance; the statute allows testing before completing education. Course completion remains valid for two years.
Issuance
Submit Request to Issue Real Estate License and the one-time $20 recovery-fund payment. Active status requires broker approval and errors-and-omissions insurance; initial inactive issuance is available.
Minimum age
At least 18 years old at application.
Rule scheduling
NDAC 70-02-01-02(2) and -03(1) require application and written authorization before testing; the Commission Exam Information page states: "Salesperson applicants can test at any time and no longer need test codes from the commission." The rule remains the higher-ranked requirement.
Score window
Pass both portions within twelve months of the first examination; otherwise submit a new application and fees.

Temporary Real Estate Salesperson License

Temporary license that may be issued between board meetings on a complete routine application under delegated authority, NDCC 43-51.1-03(2).

Licensing authority: North Dakota Real Estate Commission · Application information

Routine application between board meetings — Military servicemember or spouse covered license recognition
No examination is required for this applicant pathway.
Delegation
Commission may authorize staff or selected members to issue this interim form between meetings; application must be routine, complete and meet every underlying licensure requirement.
Duration
If these five criteria are met, the military service member or their spouse’s covered license shall be considered valid at a similar scope of practice and in the discipline (license level – broker or salesperson) applied for with the NDREC for the duration of military orders.
Eligibility
1.   Have moved to North Dakota because of orders for military service; 2.   Provide a copy of the military orders to the NDREC; 3.   Have actively used the license at some point during the two years immediately preceding the move; 4.   Remain in good standing with: a.   the licensing authority that issued the covered license; and b.   every other licensing authority that issued a license valid for a similar scope of practice and in the discipline       (license level – broker or salesperson) applied for in North Dakota; and 5.   Submit to the authority of the NDREC for the purposes of standards of practice, discipline, and fulfillment of any continuing       education requirements.
Issuance
Submit Request to Issue Real Estate License signed by the associated North Dakota broker, proof of errors-and-omissions insurance, and the one-time $20 recovery-fund payment.
Licensing documents
Provide military orders and certificates of licensure or other proof of good standing issued within the past 30 days from each licensing jurisdiction; contact NDREC for instructions.
Renewal
Annually complete 12 hours of required continuing education, obtain errors-and-omissions coverage, and renew with current certificates of licensure and the required renewal fee.
Waiver
If NDREC determines you are a military service member or their spouse who meets the 5 criteria above, NDREC will waive the application fee, credit check, background check, pre-licensure education, and state and national exam requirements.

Official no-examination sources

Effective from 2026-09-22.

Routine application between board meetings — Nonresident licensure with nonreciprocal license
North Dakota Real Estate Examination — State Portion
Active status
Broker association and errors-and-omissions insurance are required for active status.
Application
Complete the online application and applicable fees, credit and criminal-history checks, certificate-of-licensure documents and nonresident consent where required; submit a Request to Issue License and the recovery-fund payment.
Broker
The designated broker must obtain a North Dakota nonresident license before the associated salesperson can be licensed.
Delegation
Commission may authorize staff or selected members to issue this interim form between meetings; application must be routine, complete and meet every underlying licensure requirement.
Education
No prelicensure course required when already licensed in another nonreciprocal state.
License
Hold a valid salesperson license in the principal place of business, certified in good standing with no pending complaints.
Prior exam
Successfully passed the real estate licensing examination given in another state; that state examination is an applicant condition, not a North Dakota exam leaf.
Routine application between board meetings — Nonresident reciprocal licensure
No examination is required for this applicant pathway.
Active status
For active status, obtain supervising broker approval and errors-and-omissions coverage.
Application
Complete the online reciprocal application, certificates of licensure, credit and criminal-history checks, application fees, Request to Issue License and one-time recovery-fund payment.
Delegation
Commission may authorize staff or selected members to issue this interim form between meetings; application must be routine, complete and meet every underlying licensure requirement.
Eligibility
Both licensed and primarily resident in a jurisdiction named in the Commission reciprocal instructions; hold a salesperson license in good standing.
Licensing evidence
Meet the licensing requirements, including examinations, in the primary state of residence. Unidentified or other-state examinations are applicant conditions.

Official no-examination sources

Effective from 2026-09-22.

Routine application between board meetings — Resident initial licensure by examination
Application
Submit the complete online application, documents and fees; supply fingerprints, criminal-history and credit information; Commission approval is required.
Authorization window
The rule requires testing within four months after the Commission notifies the applicant of qualification; otherwise a new application and fees are required.
Character
Honesty, truthfulness, fair dealing and competency; no real estate license revoked within the preceding two years.
Delegation
Commission may authorize staff or selected members to issue this interim form between meetings; application must be routine, complete and meet every underlying licensure requirement.
Education
Complete at least 90 hours of Commission-approved education before issuance; the statute allows testing before completing education. Course completion remains valid for two years.
Issuance
Submit Request to Issue Real Estate License and the one-time $20 recovery-fund payment. Active status requires broker approval and errors-and-omissions insurance; initial inactive issuance is available.
Minimum age
At least 18 years old at application.
Rule scheduling
NDAC 70-02-01-02(2) and -03(1) require application and written authorization before testing; the Commission Exam Information page states: "Salesperson applicants can test at any time and no longer need test codes from the commission." The rule remains the higher-ranked requirement.
Score window
Pass both portions within twelve months of the first examination; otherwise submit a new application and fees.

Temporary Permit — Military Members and Spouses

Military temporary permit under NDCC 43-51-11.1, offered as an alternative interim form to a provisional license.

Licensing authority: state real estate commission · Application information

Automatic temporary permit after thirty day military application delay
No examination is required for this applicant pathway.
Duration
Valid until the Commission grants or denies the permanent application or issues an authorization under subsection 2.
Eligibility
Completed military member or military spouse application under NDCC 43-51-11.1(1).
Timing
Commission neither grants nor denies the license nor issues an interim authorization within thirty days of receipt.

Official no-examination sources

Effective from 2026-09-22.

Temporary permit for military applicant substantially meeting standards
No examination is required for this applicant pathway.
Assessment
Competency methods and unmet permanent-license requirements are determined by the Commission; the temporary issuance provision identifies no separate examination.
Duration
No more than two years; remains valid while progressing toward unmet requirements, subject to statutory termination events.
Eligibility
Military member or military spouse; apply and substantially meet the competency and public-protection requirements under NDCC 43-51-11.1(1).
Fee
No provisional-license or temporary-permit fee.

Official no-examination sources

Effective from 2026-09-22.

North Dakota Real Estate Examination — State Portion

Provider
PSI Services LLC
Format
Computer examination
Exam questions
40 scored questions (40 points)
Time limit
90 minutes
Passing score
30 points
Examination outline
  • I. Duties and Powers of the Real Estate Commission
    • A. General Powers
    • B. Investigations, Hearings, and Appeals
    • C. Sanctions; License Suspension and
    • D. Revocation, Misdemeanor
    • E. Examination of Records
  • II. Licensing Requirements
    • A. Types of Licensing: Real Estate Salesperson, Real Estate Broker, Broker Associate
    • B. Activities Requiring a License; Reciprocity
    • C. License Renewal
    • D. Change in License
    • E. Education: 1. Continuing Education
    • E. Education: 2. Broker Prelicensing
    • E. Education: 3. Salesperson Prelicensing
  • III. Statutory Requirements Governing the Activities of Licensees
    • A. Advertising
    • B. Broker/Salesperson Relationship; Broker Supervision of Salespersons
    • C. Commissions
    • D. Disclosure/Conflict of Interest
    • E. Preparation and Handling of Offers and Other Documents
    • F. Listings
    • H. Licensee/Public Responsibility
    • I. Cooperative Transactions
    • J. Code of Ethics
  • IV. Additional Topics
    • A. Statutory Requirements Governing Subdivided or Out-of-State Land Sales (Registration Requirements, Disclosure Requirements)
    • C. Real Estate Education, Research, and Recovery Fund
Examination sources

Real Estate Salesperson Examination — National Portion (Real Estate Principles and Practices)

Provider
PSI Services LLC
Format
National portion of a state real estate salesperson examination delivered by PSI; a minimum score must be achieved on each portion, and a candidate who fails one portion (state or national) retakes only that portion
Exam questions
80 scored questions (80 points), plus one to ten unscored experimental items
Examination outline
  • I. Property Ownership (Sales 10%, Broker 10%) (10%)
    • A. Real and personal property; conveyances
    • B. Land characteristics and legal descriptions: 1. Metes and bounds method of legal property description; 2. Lot and block (recorded plat) method of legal property description; 3. Government survey (rectangular survey) method of legal property description; 4. Measuring structures (linear and square footage); 5. Land measurement
    • C. Encumbrances and effects on property ownership: 1. Types of liens and their effect on the title and value of real property; 2. Easements, rights of way and licenses, including their effect on the title, value and use of real property; 3. Encroachments and their effect on the title, value and use of real property; 4. Potential encumbrances on title, such as probate, leases, or adverse possession; 5. Property rights that may be conveyed separately from use of the land surface, such as mineral and other subsurface rights, air rights, or water rights
    • D. Types of ownership: 1. Ownership in severalty/sole ownership; 2. Implications of ownership as tenants in common; 3. Implications of ownership in joint tenancy; 4. Forms of common-interest ownership, such as Timeshares, Condominiums and Co-ops; 5. Property ownership held in a trust or by an estate; 6. Ownership by business entities; 7. Life Estate ownership
  • II. Land use Controls (Sales 5%, Broker 5%) (5%)
    • A. Government rights in land: 1. Government rights to impose property taxes and special assessments; 2. Government rights to acquire land through eminent domain, condemnation and escheat
    • B. Government controls on land use
    • C. Private controls: 1. Deed conditions or restrictions on property use; 2. Subdivision covenants, conditions and restrictions (CC&Rs) on property use; 3. Condominium and owners’ associations regulations or bylaws on property use
  • III. Valuation (Sales 8%, Broker 8%) (8%)
    • A. Appraisals: 1. Appraisals for valuation of real property; 2. Situations which require appraisal by a licensed or certified appraiser and brokerage-related actions that constitute unauthorized appraisal practice; 3. General steps in appraisal process
    • B. Estimating Value: 1. Economic principles and property characteristics that affect value of real property; 2. Sales or market comparison approach to property valuation and appropriate uses; 3. Cost approach to property valuation and appropriate uses; 4. Income analysis approach to property valuation and appropriate uses
    • C. Comparative Market Analysis (CMA): 1. Competitive/Comparative Market Analysis (CMA), BPO or equivalent; 2. Automated Valuation Method (AVM), appraisal valuation and Comparative Market Analysis (CMA)
  • IV. Financing (Sales 10%, Broker 9%) (10%)
    • A. Basic Concepts and Terminology: 1. Loan financing (for example, points, LTV, PMI, interest, PITI); 2. General underwriting process (e.g., debt ratios, credit scoring and history); 3. Standard mortgage/deed of trust clauses and conditions; 4. Essential elements of a promissory note
    • B. Types of Loans: 1. Conventional loans; 2. Amortized loans, partially amortized (balloon) loans, interest-only loans; 3. Adjustable-rate mortgage (ARM) loans; 4. Government Loans (a. FHA insured loans; b. VA guaranteed loans; c. USDA/Rural Development loan programs); 5. Owner financing (for example, installment or land contract/contract for deed); 6. Reverse-mortgage loans; 7. Home equity loans and lines of credit; 8. Construction loans; 9. Rehab loans; 10. Bridge loans
    • C. Financing and Lending: 1. Real Estate Settlement Procedures Act (RESPA), including kickbacks; 2. Truth-in-Lending Act (Regulation Z), including advertising; 3. Requirements and time frames of TRID (TILA-RESPA Integrated Disclosures); 4. Equal Credit Opportunity Act; 5. Lending Process (application through loan closing); 6. Risky loan features, such as prepayment penalties and balloon payments
  • V. Contracts (Sales 19%, Broker 19%) (19%)
    • A. General Contract Law: 1. General principles of contract law; 2. Elements necessary for a contract to be valid; 3. Effect of the Statute of Frauds; 4. Offer and a contract; 5. Enforceability of contracts; 6. Void, voidable and unenforceable contracts; 7. Bilateral and unilateral contracts; 8. Nature and use of option agreements; 9. Notice, delivery, acceptance and execution of contracts; 10. Appropriate use, risks, and advantages of electronic signatures and paperless transactions; 11. Rights and obligations of the parties to a contract; 12. Possible remedies for breach or non-performance of contract; 13. Termination, rescission and cancellation of contracts
    • B. Purchase and Lease Contracts: 1. Addenda and amendments to contracts; 2. Purchase agreements; 3. Contract contingencies and methods for satisfying them; 4. Leases and rental agreements; 5. Lease-purchase agreements; 6. Types of leases
    • C. Proper handling of multiple offers and counteroffers
  • VI. Agency (Sales 13%, Broker 13%) (13%)
    • A. Agency and non-agency relationships: 1. Agency relationships and how they are established; 2. Types of listing contracts; 3. Buyer brokerage/tenant representation contracts; 4. Other brokerage relationships, including transaction brokers and facilitators; 5. Powers of attorney and other assignments of authority; 6. Conditions for termination of agency or brokerage service agreements
    • B. Agent Duties: 1. Fiduciary duties of agents; 2. Agent's duties to customers/non-clients, including honesty and good faith
    • C. Agency Disclosures: 1. Disclosure of agency/representation; 2. Disclosure of possible conflict of interest or self-interest
  • VII. Property Disclosures (Sales 7%, Broker 7%) (7%)
    • A. Property Condition: 1. Seller's property condition disclosure requirements; 2. Property conditions that may warrant inspections or a survey; 3. Red flags that warrant investigation of public or private land use controls
    • B. Environmental and Government Disclosures: 1. Environmental issues requiring disclosure; 2. Federal, state, or local disclosure requirements regarding the property
    • C. Disclosure of material facts and material defects
  • VIII. Property Management (Sales 3%, Broker 5%) — items marked (BROKER ONLY) in this area are not part of the salesperson examination (3%)
    • A. Duties and Responsibilities: 1. Procurement and qualification of prospective tenants; 2. Fair housing and ADA compliance specific to property management; 3. How to complete a market analysis to identify factors in setting rents or lease rates (items 4. Property manager responsibility for maintenance, improvements, reporting and risk management; 5. Handling landlord and tenant funds; trust accounts, reports and disbursements; and 6. Provisions of property management contracts are marked BROKER ONLY)
    • B. Landlord and tenant rights and obligations
  • IX. Transfer of Title (Sales 6%, Broker 6%) (6%)
    • A. Types of deeds
    • B. Title Insurance and Searches: 1. Title insurance policies and title searches; 2. Potential title problems and resolutions; 3. Marketable and insurable title
    • C. Closing Process: 1. When transfer of ownership becomes effective; 2. Process and importance of recordation; 3. Settlement procedures (closing) and parties involved; 4. Home and new construction warranties
    • D. Special Processes: 1. Special issues in transferring foreclosed properties; 2. Special issues in short sale transactions; 3. Special issues in probate transactions
  • X. Practice of Real Estate (Sales 12%, Broker 12%) — subsection D. Supervisory Responsibilities is marked (BROKER ONLY) and is not part of the salesperson examination (12%)
    • A. Antidiscrimination: 1. Federal Fair Housing Act general principles and exemptions; 2. Protected classes under Federal Fair Housing Act; 3. Protections against discrimination based on gender identity and sexual orientation; 4. Prohibited conduct under Federal Fair Housing Act (Redlining, Blockbusting, Steering, Disparate Treatment); 5. Fair housing advertising rules; 6. Americans with Disabilities Act (ADA) obligations pertaining to accessibility and reasonable accommodations
    • B. Legislation and Regulations: 1. Licensees’ status as employees or independent contractors; 2. Antitrust laws and types of violations, fines and penalties; 3. Do-Not-Call List rule compliance; 4. Proper use of Social Media and Internet communication and advertising
    • C. Duties and Responsibilities: 1. Protection of confidential personal information (written, verbal or electronic); 2. Duties when handling funds of others in transactions; 3. Licensee responsibility for due diligence in real estate transactions
  • XI. Real Estate Calculations (Sales 7%, Broker 6%) (7%)
    • A. Calculations for Transactions: 1. Seller’s net proceeds; 2. Buyer funds needed at closing; 3. Real property tax and other prorations; 4. Real property transfer fees; 5. PITI (Principal, Interest, Taxes and Insurance) payments estimate given loan rate and term
    • B. General Concepts: 1. Equity; 2. Rate of return/Capitalization rate; 3. Loan-to-Value ratio; 4. Discount points and loan origination fees
Examination sources