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North Dakota House Bill HB1401

North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1401 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. 1401
4-(Representatives Warrey, Longmuir, Mitskog, Motschenbacher, Schneider, Stemen)
5-(Senators Axtman, Davison, Thomas)
6-AN ACT to amend and reenact section 40-11-04.2 of the North Dakota Century Code, relating to the
7-transfer of real property by exclusive and nonexclusive listing agreements.
1+25.1105.01001
2+Title.02000
3+Adopted by the Industry, Business and
4+Labor Committee
5+Sixty-ninth
6+January 27, 2025
7+Legislative Assembly
8+of North Dakota
9+Introduced by
10+Representatives Warrey, Longmuir, Mitskog, Motschenbacher, Schneider, Stemen
11+Senators Axtman, Davison, Thomas
12+A BILL for an Act to amend and reenact section 40-11-04.2 of the North Dakota Century Code,
13+relating to the transfer of real property by exclusive and nonexclusive listing agreements.
814 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
9-SECTION 1. AMENDMENT. Section 40-11-04.2 of the North Dakota Century Code is amended and
10-reenacted as follows:
11-40-11-04.2. Transfer of real property by exclusive and nonexclusive listing agreements.
12-1.As an alternative to the procedure established under section 40-11-04.1, the governing body
13-of a city may by resolution describe:
15+SECTION 1. AMENDMENT. Section 40-11-04.2 of the North Dakota Century Code is
16+amended and reenacted as follows:
17+40-11-04.2. Transfer of real property by exclusive and nonexclusive listing
18+agreements.
19+1.As an alternative to the procedure established under section 40-11-04.1, the governing
20+body of a city may by resolution describe:
1421 a.Describe the real property of the city which is to be sold; provide
1522 b.Provide a maximum rate of fee, compensation, or commission; and provide
16-c.Provide that the city reserves the right to reject any and all offers determined to be
17-insufficient.
18-2.After adoption of the resolution, and publication of the resolution on the city website for at least
19-fourteen days, if the city maintains a website, the governing body of a city may engage
20-licensed real estate brokers to attempt to sell the described property by way of nonexclusive
21-listing agreements or by way of an exclusive listing agreement if the real estate broker is
22-selected through a competitive process.
23-3.A proposal from a licensed real estate broker to enter an exclusive listing agreement with the
24-governing body of a city must be based on the:
23+c.Provide that the city reserves the right to reject any and all offers determined to
24+be insufficient.
25+2.After adoption of the resolution, and publication of the resolution on the city website for
26+at least fourteen days, if the city maintains a website, the governing body of a city may
27+engage licensed real estate brokers to attempt to sell the described property by way of
28+nonexclusive listing agreements or by way of an exclusive listing agreement if the real
29+estate broker is selected through a competitive process .
30+ 3. A proposal from a licensed real estate broker to enter an exclusive listing agreement
31+with the governing body of a city must be based on the:
32+Page No. 1 25.1105.01001
33+ HOUSE BILL NO. 1401
34+PROPOSED AMENDMENTS TO
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54+20 Sixty-ninth
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2556 a. Experience of the licensed real estate broker;
2657 b. Experience of the licensed real estate broker selling similar property;
2758 c. Marketing strategy the licensed real estate broker intends to use; and
28-d.Rate of fee, compensation, or commission the licensed real estate broker intends to
29-accept.
30-4.In the negotiation of a purchase agreement with a buyer represented by a real estate broker,
31-the governing body of a city may agree to pay compensation to the buyer's real estate broker.
32-In the negotiation of a listing agreement, the governing body of a city shall consider the
33-financial impact of paying compensation to the buyer's real estate broker on the total fees,
34-compensation, or commission that may become payable by the city. H. B. NO. 1401 - PAGE 2
35-____________________________ ____________________________
36-Speaker of the House President of the Senate
37-____________________________ ____________________________
38-Chief Clerk of the House Secretary of the Senate
39-This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
40-Assembly of North Dakota and is known on the records of that body as House Bill No. 1401.
41-House Vote: Yeas 89 Nays 0 Absent 5
42-Senate Vote:Yeas 44 Nays 0 Absent 3
43-____________________________
44-Chief Clerk of the House
45-Received by the Governor at ________M. on _____________________________________, 2025.
46-Approved at ________M. on __________________________________________________, 2025.
47-____________________________
48-Governor
49-Filed in this office this ___________day of _______________________________________, 2025,
50-at ________ o’clock ________M.
51-____________________________
52-Secretary of State
59+ d. Rate of fee, compensation, or commission the licensed real estate broker intends
60+to accept.
61+ 4. In the negotiation of a purchase agreement with a buyer represented by a real estate
62+broker, the governing body of a city may agree to pay compensation to the buyer's real
63+estate broker. In the negotiation of a listing agreement, the governing body of a city
64+shall consider the financial impact of paying compensation to the buyer's real estate
65+broker on the total fees, compensation, or commission that may become payable by
66+the city.
67+Page No. 2 25.1105.01001
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