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North Dakota House Bill HB1125

North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1125 Compare Versions

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1-Sixty-ninth Legislative Assembly of North Dakota
2-In Regular Session Commencing Tuesday, January 7, 2025
3-HOUSE BILL NO. 1125
4-(Representative Louser)
5-AN ACT to amend and reenact sections 43-23-06.1, 43-23-08, 43-23-13.1, and 43-23-24 of the North
6-Dakota Century Code, relating to real estate licensing.
1+25.8068.01001
2+Title.02000
3+Adopted by the Industry, Business and
4+Labor Committee
5+Sixty-ninth
6+January 28, 2025
7+Legislative Assembly
8+of North Dakota
9+Introduced by
10+Representative Louser
11+A BILL for an Act to amend and reenact sections 43-23-06.1, 43-23-08, 43-23-13.1, and
12+43-23-24 of the North Dakota Century Code, relating to real estate licensing.
713 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
8-SECTION 1. AMENDMENT. Section 43-23-06.1 of the North Dakota Century Code is amended and
9-reenacted as follows:
14+SECTION 1. AMENDMENT. Section 43-23-06.1 of the North Dakota Century Code is
15+amended and reenacted as follows:
1016 43-23-06.1. Definitions.
1117 As used in this chapter, unless the context otherwise requires:
12-1."Appointed agent" means a licensee appointed by a designated broker of the licensee's real
13-estate brokerage firm to act solely for a client of that brokerage firm to the exclusion of other
14-licensees of that brokerage firm.
15-2."Client" means a person that has entered a written agency agreement with a real estate
16-brokerage firm.
18+1."Appointed agent" means a licensee appointed by a designated broker of the
19+licensee's real estate brokerage firm to act solely for a client of that brokerage firm to
20+the exclusion of other licensees of that brokerage firm.
21+2."Client" means a person that has entered a written agency agreement with a real
22+estate brokerage firm.
1723 3."Commission" means the North Dakota real estate commission.
18-4."Customer" means a buyer, prospective buyer, seller, lessee, or lessor that is not represented
19-by that real estate brokerage firm in a real property transaction.
20-5."Designated broker" means a licensee designated by a real estate brokerage firm to act on
21-behalf of the brokerage firm.
22-6."Dual agency" means a situation in which a real estate brokerage firm or the real estate
23-brokerage firm's licensees owe a duty to more than one party in a real estate transaction. Dual
24-agency is established only as follows:
25-a.When one licensee represents both the buyer and the seller in a real estate transaction;
26-or
27-b.When two or more licensees, licensed to the same broker, each represents a party to the
28-real estate transaction.
29-"Dual agency" does not exist unless both the seller and the buyer in a real estate transaction
30-have written agency agreements with the same real estate brokerage firm. For purposes of
31-"dual agency" a subagency arrangement is not a written agency agreement.
24+4."Customer" means a buyer, prospective buyer, seller, lessee, or lessor that is not
25+represented by that real estate brokerage firm in a real property transaction.
26+5."Designated broker" means a licensee designated by a real estate brokerage firm to
27+act on behalf of the brokerage firm.
28+6."Dual agency" means a situation in which a real estate brokerage firm or the real
29+estate brokerage firm's licensees owe a duty to more than one party in a real estate
30+transaction. Dual agency is established only as follows:
31+Page No. 1 25.8068.01001
32+ HOUSE BILL NO. 1125
33+PROPOSED AMENDMENTS TO
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55+a.When one licensee represents both the buyer and the seller in a real estate
56+transaction; or
57+b.When two or more licensees, licensed to the same broker, each represents a
58+party to the real estate transaction.
59+"Dual agency" does not exist unless both the seller and the buyer in a real estate
60+transaction have written agency agreements with the same real estate brokerage firm.
61+For purposes of "dual agency" a subagency arrangement is not a written agency
62+agreement.
3263 7."Licensee" means a real estate broker, an associate real estate broker, or a real estate
3364 salesperson who is associated with a real estate brokerage firm.
34-8."Real estate", "real property", "realty", or words of like import, means any interest or estate in
35-land, including leaseholds, whether such interest or estate is corporeal, incorporeal, freehold,
36-or nonfreehold, and whether situated in this state or elsewhere; provided, however, that the
37-meaning as used in this chapter does not include oil, gas, or mineral leases, nor does it
38-include any other mineral leasehold, mineral estate, or mineral interest of any nature
39-whatsoever. H. B. NO. 1125 - PAGE 2
40-9."Real estate broker", or "broker", means any person that, for another, for a fee, commission,
41-salary, or other consideration, or with the intention or expectation of receiving or collecting
42-such compensation from another, engages in or offers or attempts to engage in, either directly
43-or indirectly by a continuing course of conduct or by a single act or transaction, any of the
44-following acts:
45-a.Lists, offers, attempts, or agrees to list real estate or any interest in that real estate, or
46-any improvements affixed on that real estate for sale, exchange, or lease.
47-b.Sells, exchanges, purchases, or leases real estate or any interest in that real estate, or
48-any improvements affixed on that real estate.
49-c.Offers to sell, exchange, purchase, or lease real estate or any interest in that real estate,
50-or any improvements affixed on that real estate.
51-d.Negotiates or offers, attempts, or agrees to negotiate the sale, exchange, purchase, or
52-leasing of real estate or any interest in that real estate, or any improvements affixed on
53-that real estate.
54-e.Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or any
55-interest in that real estate, or any improvements on that real estate.
65+8."Real estate", "real property", "realty", or words of like import, means any interest or
66+estate in land, including leaseholds, whether such interest or estate is corporeal,
67+incorporeal, freehold, or nonfreehold, and whether situated in this state or elsewhere;
68+provided, however, that the meaning as used in this chapter does not include oil, gas,
69+or mineral leases, nor does it include any other mineral leasehold, mineral estate, or
70+mineral interest of any nature whatsoever.
71+9."Real estate broker", or "broker", means any person that, for another, for a fee,
72+commission, salary, or other consideration, or with the intention or expectation of
73+receiving or collecting such compensation from another, engages in or offers or
74+attempts to engage in, either directly or indirectly by a continuing course of conduct or
75+by a single act or transaction, any of the following acts:
76+a.Lists, offers, attempts, or agrees to list real estate or any interest in that real
77+estate, or any improvements affixed on that real estate for sale, exchange, or
78+lease.
79+b.Sells, exchanges, purchases, or leases real estate or any interest in that real
80+estate, or any improvements affixed on that real estate.
81+c.Offers to sell, exchange, purchase, or lease real estate or any interest in that real
82+estate, or any improvements affixed on that real estate.
83+d.Negotiates or offers, attempts, or agrees to negotiate the sale, exchange,
84+purchase, or leasing of real estate or any interest in that real estate, or any
85+improvements affixed on that real estate.
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119+e.Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or
120+any interest in that real estate, or any improvements on that real estate.
56121 f.Who is a licensee under this chapter and performs any of the acts set out in this
57122 subsection while acting in the licensee's own behalf.
58-g.Advertises or holds out as being engaged in the business of buying, selling, exchanging,
59-or leasing of real estate or any interest in that real estate, or any improvements on that
60-real estate.
61-h.Assists or directs in the procuring of prospects or refers a prospect, calculated to result in
62-the sale, exchange, or leasing of real estate or any interest in that real estate, or any
63-improvements on that real estate. A licensed broker in this state may divide or share a
64-real estate commission with a licensed broker in another state if the out-of-state broker
65-does not carry on any of the negotiations on behalf of the referred client or prospect in
66-this state, either by physically entering the state or by communicating with the broker
67-electronically or through other means.
68-i.Publicly markets for sale an equitable interest in a contract for the purchase of real
69-property between a property owner and a prospective purchaser.
70-10."Real estate brokerage firm" means a person that is providing real estate brokerage services
71-through that person's licensees and which is licensed by the commission as a real estate
72-brokerage firm.
73-11."Real estate salesperson" means any person that for a fee, compensation, salary, or other
74-consideration, or in the expectation or upon the promise of that compensation, is employed or
75-engaged by a licensed real estate broker to do any act or deal in any transaction as provided
76-in subsection 9 for or on behalf of such licensed real estate broker.
77-SECTION 2. AMENDMENT. Section 43-23-08 of the North Dakota Century Code is amended and
78-reenacted as follows:
123+g.Advertises or holds out as being engaged in the business of buying, selling,
124+exchanging, or leasing of real estate or any interest in that real estate, or any
125+improvements on that real estate.
126+h.Assists or directs in the procuring of prospects or refers a prospect, calculated to
127+result in the sale, exchange, or leasing of real estate or any interest in that real
128+estate, or any improvements on that real estate. A licensed broker in this state
129+may divide or share a real estate commission with a licensed broker in another
130+state if the out-of-state broker does not carry on any of the negotiations on behalf
131+of the referred client or prospect in this state , either by physically entering the
132+state or by communicating with the broker electronically or through other means.
133+i.Publicly markets for sale an equitable interest in a contract for the purchase of
134+real property between a property owner and a prospective purchaser.
135+10."Real estate brokerage firm" means a person that is providing real estate brokerage
136+services through that person's licensees and which is licensed by the commission as a
137+real estate brokerage firm.
138+11."Real estate salesperson" means any person that for a fee, compensation, salary, or
139+other consideration, or in the expectation or upon the promise of that compensation, is
140+employed or engaged by a licensed real estate broker to do any act or deal in any
141+transaction as provided in subsection 9 for or on behalf of such licensed real estate
142+broker.
143+SECTION 2. AMENDMENT. Section 43-23-08 of the North Dakota Century Code is
144+amended and reenacted as follows:
79145 43-23-08. License standards.
80-1.Licenses and license renewals may be granted only to persons who bear a good reputation for
81-honesty, truthfulness, and fair dealing and who are competent to transact the business of a
82-real estate broker or a real estate salesperson in such manner as to safeguard the interest of
83-the public, and whose real estate license has not been revoked in this or any other state within H. B. NO. 1125 - PAGE 3
84-two years before the date of application. To determine the competency of applicants, the
85-commission shall prescribe and hold examinations at designated times and places.
86-2.In addition to the requirements established by subsection 1, an applicant for a broker's or
87-salesperson's license must be at least eighteen years of age.
146+1.Licenses and license renewals may be granted only to persons who bear a good
147+reputation for honesty, truthfulness, and fair dealing and who are competent to
148+transact the business of a real estate broker or a real estate salesperson in such
149+manner as to safeguard the interest of the public, and whose real estate license has
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183+not been revoked in this or any other state within two years before the date of
184+application. To determine the competency of applicants, the commission shall
185+prescribe and hold examinations at designated times and places.
186+2.In addition to the requirements established by subsection 1, an applicant for a broker's
187+or salesperson's license must be at least eighteen years of age.
88188 3.Every applicant for a license as a real estate broker:
89-a.Must have been actively engaged as a licensed real estate salesperson for a period of at
90-least two years preceding the date of application; or
91-b.Must have had experience as determined by the commission to be substantially equal to
92-that which a licensed real estate salesperson would ordinarily receive during a period of
93-two years.
94-4.As a prerequisite for licensure, an applicant for a salesperson's license shall furnish to the
95-commission evidence the applicant has successfully completed at least ninety hours in
96-courses of study approved by the commission. An applicant for a broker's license must have
97-successfully completed an additional sixty hours in courses of study approved by the
98-commission. An applicant for a salesperson's or broker's license may take the licensing
99-examination before fulfillment of the prerequisite educational requirement; however, the
100-commission may not issue a salesperson's license to an applicant unless satisfactory
101-evidence of completion of this prerequisite educational requirement is furnished to the
102-commission. An applicant for a broker's license must have satisfactorily fulfilled the
103-educational requirement before taking the broker's licensing examination.
104-5.If the commission finds an applicant could not acquire employment as a licensed real estate
105-salesperson because of conditions existing in the area where the salesperson resides, the
106-experience requirements established in subdivisions a and b of subsection 3 may be waived
107-by the commission. The educational requirements of subsection 4 may not be waived by the
108-commission, but guidelines may be established by which applicants who have engaged in
109-certain educational courses of study which are closely related to the real estate profession
110-may be deemed to have satisfied this requirement.
111-6.The commission may adopt reasonable rules and regulations pursuant to the provisions of
112-chapter 28-32 relative to procedures for licensing, approval of coursework, and for the type of
113-certification or proof of coursework completion that must be submitted.
114-SECTION 3. AMENDMENT. Section 43-23-13.1 of the North Dakota Century Code is amended and
115-reenacted as follows:
189+a.Must have been actively engaged as a licensed real estate salesperson for a
190+period of at least two years preceding the date of application; or
191+b.Must have had experience as determined by the commission to be substantially
192+equal to that which a licensed real estate salesperson would ordinarily receive
193+during a period of two years.
194+4.As a prerequisite for licensure, an applicant for a salesperson's license shall furnish to
195+the commission evidence the applicant has successfully completed at least ninety
196+hours in courses of study approved by the commission. An applicant for a broker's
197+license must have successfully completed an additional sixty hours in courses of study
198+approved by the commission. An applicant for a salesperson's or broker's license may
199+take the licensing examination before fulfillment of the prerequisite educational
200+requirement; however, the commission may not issue a salesperson's license to an
201+applicant unless satisfactory evidence of completion of this prerequisite educational
202+requirement is furnished to the commission. An applicant for a broker's license must
203+have satisfactorily fulfilled the educational requirement before taking the broker's
204+licensing examination.
205+5.If the commission finds an applicant could not acquire employment as a licensed real
206+estate salesperson because of conditions existing in the area where the salesperson
207+resides, the experience requirements established in subdivisions a and b of
208+subsection 3 may be waived by the commission. The educational requirements of
209+subsection 4 may not be waived by the commission, but guidelines may be
210+established by which applicants who have engaged in certain educational courses of
211+study which are closely related to the real estate profession may be deemed to have
212+satisfied this requirement.
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245+6.The commission may adopt reasonable rules and regulations pursuant to the
246+provisions of chapter 28-32 relative to procedures for licensing, approval of
247+coursework, and for the type of certification or proof of coursework completion that
248+must be submitted.
249+SECTION 3. AMENDMENT. Section 43-23-13.1 of the North Dakota Century Code is
250+amended and reenacted as follows:
116251 43-23-13.1. License renewal.
117-1.Every person licensed to practice as a real estate broker or real estate salesperson shall
118-register annually with the commission at a regular interval set by the commission not less than
119-annually and pay the appropriate annual renewal fee as provided in section 43-23-13. The
120-application for renewal must be accompanied by such certification as required by this chapter
121-and rules of the commission to show compliance with the educational requirements of
122-sections 43-23-08 and 43-23-08.2, and must be submitted to the commission with the
123-appropriate fee no later than the application deadline set by the commission. A licensee that
124-fails to file a timely application for the renewal of any license and pay the renewal fee on or
125-before the application deadline set by the commission may file a late renewal application,
126-together with the required educational certification, before January fifteenth of the subsequent
127-yearon or before a date set by the commission and shall pay, in addition to the renewal fee, a
128-late fee as set by the commission for each month or fraction of a month after the application
129-deadline. Any license not renewed by January fifteenththe late renewal date set by the
130-commission must be canceled. The cancellation must be performed without any notice or
131-opportunity for hearing. Any person whose license has been canceled and which desires H. B. NO. 1125 - PAGE 4
132-relicensure must be required to satisfy the application and examination requirements for
133-prospective licensees in accordance with this chapter and rules of the commission.
134-2.A licensee may not engage in any activity after December thirty-firstthe license renewal date
135-set by the commission of any year for which a license is required under this chapter unless
136-that person's license has been renewed by the commission.
137-SECTION 4. AMENDMENT. Section 43-23-24 of the North Dakota Century Code is amended and
138-reenacted as follows:
252+1.Every person licensed to practice as a real estate broker or real estate salesperson
253+shall register annually with the commission at a regular interval set by the commission
254+not less than annually and pay the appropriate annual renewal fee as provided in
255+section 43-23-13. The application for renewal must be accompanied by such
256+certification as required by this chapter and rules of the commission to show
257+compliance with the educational requirements of sections 43-23-08 and 43-23-08.2,
258+and must be submitted to the commission with the appropriate fee no later than the
259+application deadline set by the commission. A licensee that fails to file a timely
260+application for the renewal of any license and pay the renewal fee on or before the
261+application deadline set by the commission may file a late renewal application,
262+together with the required educational certification, before January fifteenth of the
263+subsequent yearon or before a date set by the commission and shall pay, in addition
264+to the renewal fee, a late fee as set by the commission for each month or fraction of a
265+month after the application deadline. Any license not renewed by January fifteenththe
266+late renewal date set by the commission must be canceled. The cancellation must be
267+performed without any notice or opportunity for hearing. Any person whose license has
268+been canceled and which desires relicensure must be required to satisfy the
269+application and examination requirements for prospective licensees in accordance
270+with this chapter and rules of the commission.
271+2.A licensee may not engage in any activity after December thirty-firstthe license
272+renewal date set by the commission of any year for which a license is required under
273+this chapter unless that person's license has been renewed by the commission.
274+SECTION 4. AMENDMENT. Section 43-23-24 of the North Dakota Century Code is
275+amended and reenacted as follows:
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139309 43-23-24. Wholesale buyers and sellers - Disclosure.
140310 1.As used in this section:
141-a."Residential real property" means real property with fewer than five dwelling units.
142-b., "Wholesalerwholesaler" means a person that enters an agreement to make income or
143-profit from the transfer of or equitable interest in residential real property.
144-2.A wholesaler of residential real property shall disclose in writing to all parties to the agreement
145-that the wholesaler holds an equitable interest in the property, may not be able to convey title
146-to the property, and intends to make a profit or income from the transfer of the equitable
147-interest.
311+a."Residential real property" means real property with fewer than five dwelling
312+units.
313+b., "Wholesalerwholesaler" means a person that enters an agreement to make
314+income or profit from the transfer of or equitable interest in residential real
315+property.
316+2.A wholesaler of residential real property shall disclose in writing to all parties to the
317+agreement that the wholesaler holds an equitable interest in the property, may not be
318+able to convey title to the property, and intends to make a profit or income from the
319+transfer of the equitable interest.
148320 3.Notwithstanding any other provision contained in a contract for sale of residential real
149-property, if a wholesaler violates this section, the seller may cancel the contract for sale at any
150-time before the close of escrow without penalty and may retain any earnest money paid by the
151-wholesaler.
152-4.Notwithstanding any other provision contained in the contract for sale, if a wholesaler violates
153-this section, the buyer may cancel the contract for sale at any time before the close of escrow
154-without penalty and must be refunded all earnest money paid by the buyer. H. B. NO. 1125 - PAGE 5
155-____________________________ ____________________________
156-Speaker of the House President of the Senate
157-____________________________ ____________________________
158-Chief Clerk of the House Secretary of the Senate
159-This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
160-Assembly of North Dakota and is known on the records of that body as House Bill No. 1125.
161-House Vote: Yeas 93 Nays 0 Absent 1
162-Senate Vote:Yeas 46 Nays 0 Absent 1
163-____________________________
164-Chief Clerk of the House
165-Received by the Governor at ________M. on _____________________________________, 2025.
166-Approved at ________M. on __________________________________________________, 2025.
167-____________________________
168-Governor
169-Filed in this office this ___________day of _______________________________________, 2025,
170-at ________ o’clock ________M.
171-____________________________
172-Secretary of State
321+property, if a wholesaler violates this section, the seller may cancel the contract for
322+sale at any time before the close of escrow without penalty and may retain any earnest
323+money paid by the wholesaler.
324+4.Notwithstanding any other provision contained in the contract for sale, if a wholesaler
325+violates this section, the buyer may cancel the contract for sale at any time before the
326+close of escrow without penalty and must be refunded all earnest money paid by the
327+buyer.
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