North Dakota Real Estate Practice Exam

To whom may subdivided lands be disposed of without compliance to registration rules?

1. Any individual

2. Persons in the business of constructing buildings for resale

3. Non-profit organizations

4. Real estate agents

The correct answer is: Persons in the business of constructing buildings for resale

Disposing of subdivided lands without adherence to registration rules is specifically applicable to persons engaged in the business of constructing buildings for resale. This exemption is based on the understanding that such individuals or entities are typically experienced in real estate transactions and are usually acting in a professional capacity when dealing with subdivided lands. They have the necessary knowledge and resources to navigate the complexities involved in these transactions, reducing the need for the same level of oversight required for the general public, which includes inexperienced buyers who could be at greater risk if not adequately informed. In contrast, the other options do not encapsulate the same professional context or legal exemption. For instance, any individual could include untrained consumers who may not have the requisite understanding of real estate laws or practices, potentially leading to regulatory concerns. Non-profit organizations, while often involved in community development, do not automatically possess the exemption simply based on their status. Similarly, real estate agents, despite their professional training, still need to comply with registration rules when it comes to subdivided lands unless they are directly involved in the constructing and reselling process, which would then place them in the same category as the correct choice. Thus, the correct answer highlights a specific professional exemption rather than a general one.