North Dakota Real Estate Practice Exam

What can indicate the intent of a seller in terms of evasion according to the registration provisions?

1. Length of time for construction

2. Type of property being sold

3. Method of disposition

4. Location of the property

The correct answer is: Method of disposition

The method of disposition is a key indicator of a seller's intent in terms of evasion according to the registration provisions. When analyzing how a property is being sold—whether through direct sale, auction, or some form of creative financing—a buyer can glean insights into whether the seller is attempting to circumvent regulatory or legal obligations. For instance, if a seller opts for a less traditional or more obscure method of sale, it may suggest a desire to avoid scrutiny or requirements that come with standard real estate transactions. In contrast, factors such as the length of time for construction, the type of property being sold, and the location of the property, while they may provide valuable context in a real estate transaction, do not directly reveal a seller's intent to evade registration provisions. These aspects might reflect market trends, property characteristics, or logistical considerations, rather than a conscious effort to evade regulations or responsibilities associated with the sale. Thus, the method of disposition stands out as the most telling indicator in this context.