North Dakota Real Estate Practice Exam

In which scenario would a person not be classified as a real estate salesperson?

1. When they are selling property for a friend

2. When they act as a receiver under court order

3. When they sell their own home for profit

4. When they assist a licensed broker with transactions

The correct answer is: When they act as a receiver under court order

In the context of real estate, a person is typically classified as a real estate salesperson when they are actively involved in helping others buy, sell, or lease property for a fee or commission. However, this classification does not extend to every involvement with real estate. Acting as a receiver under court order is a specific legal role typically assigned by a court to manage a property or assets in a legal context, not as part of regular real estate transaction activities. In this scenario, the individual is fulfilling a court-mandated duty and not engaging in the business of real estate sales. This role is distinct from being a real estate salesperson, as it lacks the intent to facilitate transactions for personal profit or commission, which is the hallmark of a real estate professional. Conversely, selling property for a friend, selling one’s own home for profit, and assisting a licensed broker with transactions all imply activities that align more closely with the functions of a real estate salesperson, as these involve transactions that benefit the individual either directly or indirectly within the real estate market.