A North Dakota real estate licensee is advising a client purchasing irrigated farmland in the Red River Valley. The client asks about water rights issues that could affect the property. Which of the following is NOT a water rights concern that a North Dakota licensee should typically address when facilitating an agricultural land transaction?
Correct Answer
D) Whether the buyer can unilaterally change the permitted water use from irrigation to municipal supply without state approval
Changing the purpose or place of use of a water appropriation permit in North Dakota requires approval from the State Water Commission — it cannot be done unilaterally by the buyer. Because this action requires state approval rather than being a concern the licensee must 'address' as part of the transaction due diligence, it is the option that does NOT represent a standard water rights concern a licensee would raise on its own. The licensee's role is to identify existing rights and their status, not to advise that unilateral changes are permissible. This answer also reflects a common misunderstanding: buyers sometimes assume they can freely change permitted water uses after purchase, which is incorrect under North Dakota prior appropriation law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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