North Dakota Real Estate Broker Exam — All Questions

In North Dakota, a 'split estate' means that:

• a.The property is divided equally between two owners
• b.The home and the garage are separately deeded
• c.Ownership of the surface is separated from ownership of the minerals beneath it✓
• d.The property straddles a county line

A split estate occurs when ownership of the surface of land is separated from ownership of the underlying minerals. A seller of the surface may own few or none of the minerals if they were previously severed. Buyers must understand that owning the surface does not necessarily include the oil, gas, and other minerals below.

Under North Dakota property law, the mineral estate is generally dominant, which means:

• a.The surface owner can prohibit all mineral development
• b.The mineral owner or lessee has the right to reasonable use of the surface to develop the minerals✓
• c.Minerals may never be developed without the surface owner's purchase
• d.The surface and mineral estates can never be separated

Because the mineral estate is generally dominant, the mineral owner or their lessee has the right to reasonable use of the surface to develop the minerals. A surface buyer in an oil-and-gas area may face drilling or access even though they own the surface, which makes accurate disclosure important.

When listing rural North Dakota property in an oil-and-gas area, a broker should:

• a.Assure the buyer that all minerals always convey with the surface
• b.Avoid mentioning minerals to keep the sale simple
• c.Tell the buyer minerals are never worth investigating
• d.Disclose known mineral-rights issues and encourage the buyer to have title and mineral ownership examined✓

Because mineral severances and leases can significantly affect value and use, brokers should disclose known mineral-rights issues and encourage buyers to have title and mineral ownership examined. Careful disclosure protects both the buyer and the brokerage from later misrepresentation claims.