North Dakota Real Estate Practice Exam

Who is defined as a Real Estate Salesperson?

1. A person performing any act or dealing in a transaction on behalf of a licensed real estate broker for compensation

2. A person conducting real estate transactions as an attorney

3. A property owner marketing their own property

4. An auctioneer selling real estate in public sales

The correct answer is: A person performing any act or dealing in a transaction on behalf of a licensed real estate broker for compensation

A Real Estate Salesperson is defined specifically as an individual who acts on behalf of a licensed real estate broker and engages in transactions for compensation. This definition highlights the crucial relationship between the salesperson and the broker, indicating that the salesperson must operate under the supervision and authority of a licensed broker and cannot independently conduct real estate transactions for compensation. The other options describe different roles that do not align with the definition of a real estate salesperson. For instance, while attorneys can conduct real estate transactions, they do so under their own professional capacity, separate from the role of a salesperson. Similarly, a property owner marketing their own property is typically engaging in private sales without the need for a salesperson's license, as they are representing themselves. An auctioneer selling real estate may facilitate the sale but operates independently and is not defined as a salesperson under real estate law. Therefore, the primary distinction lies in the salesperson's direct association with a licensed broker and their compensation structure.