North Dakota House Bill HB1190

North Dakota 2023-2024 Regular Session

• Introduced: 1/9/23
• Refer: 1/9/23
• Report Pass: 2/8/23
• Engrossed: 2/13/23
• Refer: 2/15/23
• Report Pass: 3/13/23
• Enrolled: 3/20/23
• Passed: 3/23/23

Caption

Practicing as a real estate broker or salesperson.

Impact

The passage of HB 1190 amends and reenacts specific sections of the North Dakota Century Code related to real estate brokerage operations. By formalizing disclosure requirements for wholesalers, the bill is expected to impact the legal landscape of residential real estate transactions in the state. It aims to protect buyers and sellers from potential fraudulent activities and to ensure that consumers are adequately informed about the nature of their transactions, thereby enhancing consumer confidence in the real estate market.

Summary

House Bill 1190 seeks to address the practices of wholesale buyers and sellers in the North Dakota real estate market. The bill mandates that wholesalers must disclose their equitable interest in residential real property, which is defined as real property with fewer than five dwelling units. This disclosure is aimed at enhancing transparency in transactions involving wholesalers, who often profit from transferring interests in real estate rather than directly selling properties themselves. Additionally, the bill introduces provisions allowing both sellers and buyers to cancel contracts without penalty if a wholesaler fails to make the required disclosures.

Sentiment

Overall sentiment surrounding HB 1190 appears to be generally positive, especially among consumer advocacy groups who believe that increased transparency will benefit both buyers and sellers in the housing market. However, there may be some opposition from wholesalers who view the new disclosure requirements as an additional regulatory burden. The legislative discussions seem to highlight a growing recognition of the need for better oversight in the real estate wholesale sector.

Contention

Key points of contention stem from the implications of the bill for wholesalers. Some argue that the additional disclosure requirements could deter individuals from engaging in wholesale real estate practices due to concerns about liability and the potential for penalties if compliance is not met. This has raised discussions about balancing necessary consumer protections with the freedom of business practices in real estate wholesaling.