North Dakota Real Estate Practice Exam

If the subdivider is a company, which document must it submit with its application for registration?

1. Business license

2. Articles of incorporation

3. Tax identification number

4. Shareholder agreement

The correct answer is: Articles of incorporation

When a subdivider is a company, it is required to submit articles of incorporation with its application for registration. Articles of incorporation are essential documents that establish the existence of a corporation in a specific jurisdiction. They typically include vital information such as the corporation's name, purpose, duration, and details regarding its stock structure. This document helps state authorities and the public to recognize the company as a legal entity, thereby providing a clear understanding of the company's structure and its legal ability to engage in transactions, including subdivision activities. The other options—such as a business license, tax identification number, and shareholder agreement—are important for various operational and regulatory reasons, but they are not the primary documents required for the registration application itself. A business license permits a company to operate legally within a locality, while a tax identification number is essential for tax purposes. Shareholder agreements outline the rights and responsibilities among shareholders but do not contribute to the foundational legal recognition of the corporation as required in the registration process.