North Dakota Real Estate Practice Exam

What are the consequences if a brokerage conducts activities regarding subdivided lands without registration?

1. Fines and penalties

2. No consequence

3. Licensing suspension

4. Legal action from buyers

The correct answer is: Fines and penalties

When a brokerage engages in activities related to subdivided lands without proper registration, one of the primary consequences is the imposition of fines and penalties. Registration is generally required to ensure that brokers adhere to state regulations designed to protect consumers and maintain the integrity of the real estate marketplace. Operating without registration can be viewed as a violation of these regulations, which can result in financial repercussions for the brokerage. This consequence serves as a protective measure for consumers, ensuring that only qualified and registered companies are allowed to manage subdivided properties. The fines are typically established under real estate laws, which dictate the necessity for proper registration and compliance. Therefore, the act of carrying out such activities without registration not only jeopardizes the brokerage’s standing in the industry but also exposes it to significant monetary liabilities.