North Dakota Real Estate Practice Exam

Which of the following individuals is excluded from the definition of a real estate broker or salesperson?

1. A bank employee managing property for the bank

2. A real estate auctioneer selling through advertisements

3. A licensed property manager

4. All of the above

The correct answer is: A bank employee managing property for the bank

In real estate terminology, certain individuals are explicitly excluded from the definition of a real estate broker or salesperson based on the scope of their activities. A bank employee managing property for the bank is performing a function that is typically related to their employment rather than engaging in real estate transactions as an independent broker or salesperson. Such employees are not involved in the buying, selling, or leasing of real estate on behalf of others for a fee, which is the primary characteristic of a broker or salesperson. On the other hand, a real estate auctioneer involved in selling property is actively participating in brokerage activities, as they are representing sellers and helping to execute real estate transactions. Similarly, a licensed property manager manages rental properties and can collect rents, which also aligns with activities typical of a real estate broker or salesperson. Therefore, both the auctioneer and the property manager do not fit the criteria for exclusion as they engage in activities that are within the purview of real estate brokerage. This distinction clarifies why a bank employee managing property for the bank stands alone in being excluded from the definition of a real estate broker or salesperson.