North Dakota Real Estate Practice Exam

What does the term "Real Estate Brokerage Firm" refer to?

1. A firm licensed by the commission to provide real estate brokerage services

2. A person acting as a real estate broker without a license

3. A single person offering real estate consulting services

4. A partnership that only manages properties

The correct answer is: A firm licensed by the commission to provide real estate brokerage services

The term "Real Estate Brokerage Firm" refers specifically to an entity that is licensed by the real estate commission to provide brokerage services, which includes assisting clients in buying, selling, and leasing properties. This definition encompasses the legal and professional framework required for a firm to operate in the real estate market, ensuring it meets the standards and regulations set forth by the governing body in the jurisdiction. In contrast, other choices do not align with the definition of a brokerage firm. A person acting without a license does not meet the necessary legal requirements to operate as a brokerage, and thus cannot be classified as a firm. Additionally, a single individual providing consulting services lacks the business structure and regulatory framework inherent in brokerage firms, as they typically operate independently without the formal licensing needed for brokerage activities. Lastly, a partnership that focuses solely on managing properties does not encompass the broader scope of brokerage activities, such as transactions, listings, and representation offered by a full-fledged brokerage firm.