North Dakota Real Estate Practice Exam

True or False: A salesperson can conduct real estate transactions while waiting for a new license after transferring employers.

1. True

2. False

3. Only with specific permission

4. Depends on the commission's ruling

The correct answer is: False

A salesperson cannot conduct real estate transactions while waiting for a new license after transferring employers because they are considered to be unlicensed during that interim period. In North Dakota, when a salesperson changes employers, the new brokerage must apply for the transfer of the salesperson's license, and until that license is formally transferred and approved, the salesperson does not have the legal authority to perform activities associated with real estate transactions. The importance of this rule is to ensure that all real estate professionals are properly licensed and accountable, providing a framework that protects consumers and maintains industry standards. This allows the regulatory authority to maintain oversight of who is engaging in real estate transactions. As a result, until the new license is received, the salesperson must refrain from conducting any activities that would require a licensed status.