Key Takeaways
- The North Dakota Real Estate Commission (NDREC) regulates real estate licensees under the North Dakota Century Code
- NDREC consists of five members appointed by the Governor for five-year staggered terms
- NDREC has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- The Real Estate Education, Research, and Recovery Fund provides consumer protection
- North Dakota requires 90 hours of pre-license education for salesperson applicants
North Dakota Real Estate Commission (NDREC)
The North Dakota Real Estate Commission (NDREC) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in North Dakota under the North Dakota Century Code Chapter 43-23.
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NDREC Structure and Authority
Commission Members
NDREC consists of five members appointed by the Governor:
| Member Type | Number | Requirements |
|---|---|---|
| Licensed brokers | 4 | Active North Dakota broker license |
| Public member | 1 | Not licensed in real estate |
Members serve five-year staggered terms with no more than two terms.
Key NDREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Recovery Fund | Administer the Real Estate Education, Research, and Recovery Fund |
North Dakota Real Estate License Law
The North Dakota Century Code Chapter 43-23 is the primary statute governing real estate licensing in North Dakota. Key provisions include:
- Who must be licensed - Definitions of broker and salesperson activities
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Trust fund handling - Requirements for client funds
NDREC Administrative Code
NDREC adopts administrative rules (Title 70) that implement the License Law. These rules cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- Agency disclosure procedures
Exam Tip: NDREC can impose administrative penalties and revoke licenses. Stay current on recent legislative changes affecting licensing requirements.
Real Estate Education, Research, and Recovery Fund
The North Dakota Real Estate Education, Research, and Recovery Fund provides compensation to consumers who suffer financial losses due to the misconduct of a licensed real estate professional.
Fund Details
| Requirement | Details |
|---|---|
| One-time payment | $20 contribution required for new licensees |
| Maximum per transaction | $25,000 |
| Maximum per licensee | $50,000 total |
| Filing requirements | Must obtain court judgment first |
| License consequence | License suspended until fund repaid |
How the Fund Works
- Consumer is harmed by licensee misconduct
- Consumer obtains court judgment against licensee
- Consumer cannot collect judgment from licensee
- Consumer applies to NDREC for payment from Recovery Fund
- NDREC pays from fund (if eligible)
- Licensee's license is suspended until repayment
Key Point: The Recovery Fund covers actual damages only—not punitive damages, attorney fees, or court costs.
NDREC Contact Information
| Resource | Information |
|---|---|
| Website | realestatend.org |
| Main Office | Bismarck, North Dakota |
| Phone | (701) 328-9749 |
| Online System | NDREC online licensing portal |
How many members serve on the North Dakota Real Estate Commission?
What is the one-time contribution required for the North Dakota Real Estate Education, Research, and Recovery Fund?