Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
HOUSE BILL NO. 1401
(Representatives Warrey, Longmuir, Mitskog, Motschenbacher, Schneider, Stemen)
(Senators Axtman, Davison, Thomas)
AN ACT to amend and reenact section 40-11-04.2 of the North Dakota Century Code, relating to the
transfer of real property by exclusive and nonexclusive listing agreements.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 40-11-04.2 of the North Dakota Century Code is amended and
reenacted as follows:
40-11-04.2. Transfer of real property by exclusive and nonexclusive listing agreements.
1.As an alternative to the procedure established under section 40-11-04.1, the governing body
of a city may by resolution describe:
a.Describe the real property of the city which is to be sold; provide
b.Provide a maximum rate of fee, compensation, or commission; and provide
c.Provide that the city reserves the right to reject any and all offers determined to be
insufficient.
2.After adoption of the resolution, and publication of the resolution on the city website for at least
fourteen days, if the city maintains a website, the governing body of a city may engage
licensed real estate brokers to attempt to sell the described property by way of nonexclusive
listing agreements or by way of an exclusive listing agreement if the real estate broker is
selected through a competitive process.
3.A proposal from a licensed real estate broker to enter an exclusive listing agreement with the
governing body of a city must be based on the:
a.Experience of the licensed real estate broker;
b.Experience of the licensed real estate broker selling similar property;
c.Marketing strategy the licensed real estate broker intends to use; and
d.Rate of fee, compensation, or commission the licensed real estate broker intends to
accept.
4.In the negotiation of a purchase agreement with a buyer represented by a real estate broker,
the governing body of a city may agree to pay compensation to the buyer's real estate broker.
In the negotiation of a listing agreement, the governing body of a city shall consider the
financial impact of paying compensation to the buyer's real estate broker on the total fees,
compensation, or commission that may become payable by the city. H. B. NO. 1401 - PAGE 2
____________________________ ____________________________
Speaker of the House President of the Senate
____________________________ ____________________________
Chief Clerk of the House Secretary of the Senate
This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
Assembly of North Dakota and is known on the records of that body as House Bill No. 1401.
House Vote: Yeas 89 Nays 0 Absent 5
Senate Vote:Yeas 44 Nays 0 Absent 3
____________________________
Chief Clerk of the House
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State