North Dakota Real Estate Practice Exam

Is it lawful for any person in North Dakota to offer an interest in subdivided lands located outside the state without registration?

1. True

2. False

3. It depends on the situation

4. Only for certain types of lands

The correct answer is: False

In North Dakota, it is generally unlawful for any person to offer an interest in subdivided lands located outside the state unless that offering is registered in accordance with the specific legal requirements set forth by the North Dakota Century Code. This means that prospective sellers or promoters must comply with the regulatory framework designed to protect consumers and ensure that full disclosures are made about the properties being offered. Offering unregistered subdivided land could expose individuals to legal penalties and other consequences, as compliance with registration is crucial for maintaining a straightforward and transparent real estate market. The requirement for registration serves to safeguard the interests of potential buyers by ensuring that they receive comprehensive information about the properties in question. While there may be exceptions or specific circumstances under which certain types of transactions can occur, the overarching principle is that registration is a necessary step for offering interests in subdivided lands located outside North Dakota. This registration process is established to keep the market regulated and to ensure that sellers do not mislead potential buyers.