North Dakota Real Estate Practice Exam

Under the North Dakota Subdivided Lands Disposition Act, who is exempt from the prohibitions related to constructing buildings for resale?

1. Persons who do not engage in construction

2. Individuals purchasing improved land

3. Those constructing buildings for resale

4. All landowners in North Dakota

The correct answer is: Those constructing buildings for resale

The correct answer is based on the specific provisions of the North Dakota Subdivided Lands Disposition Act, which governs the sale of subdivided lands and the construction of buildings for resale. In this context, "those constructing buildings for resale" are exempt from prohibitions under the Act, meaning that they are allowed to construct buildings with the intent to sell them without being subjected to certain restrictions that apply to other individuals or entities engaging in these activities. This exemption is essential for individuals or entities that operate in the real estate development sector, as it facilitates the construction and subsequent sale of properties, thus promoting economic activity and development in the state. The Act is designed to manage how subdivided land is handled and to protect buyers from potential fraud or misrepresentation, but it also recognizes the legitimate interests of those in the construction and real estate markets. The other choices, such as persons who do not engage in construction, individuals purchasing improved land, and all landowners in North Dakota, do not align with the specifics of the exemption defined in the Act. These categories are not involved in the construction process aimed at resale and therefore do not benefit from the same allowances under the law as those who are actively engaged in the construction of buildings for resale.