A BILL for an Act to create and enact a new section to chapter 57-28, relating to the priority of liens; to amend and reenact sections 47-18-01, 47-18-04, 47-18-18, and 57-28-03 of the North Dakota Century Code, relating to the homestead exemption, declaration of a homestead, and the contents of a tax lien.
Summary
HB 1343 would revise North Dakota’s homestead exemption laws and the rules governing property tax liens. The bill raises the protected homestead value cap to $150,000, clarifies that the homestead may consist of contiguous tracts of land, and specifies that the exemption applies against judgment liens and forced sale except in existing statutory exceptions. It also updates the process for declaring a homestead, including treating a debtor’s post-discharge homestead claim as a declaration and requiring notice that a recorded discharge can establish homestead status.
The bill further amends tax lien notice requirements to require foreclosure notices to include information about the homestead exemption and how to claim homestead status. In addition, it creates a new lien-priority rule stating that liens for unpaid property taxes or special assessments have priority over most other liens or claims against the property, while property tax liens take priority over special assessment liens. The measure would therefore affect homeowners, creditors, mortgage holders, and local governments that collect property taxes and special assessments.
Impact
If enacted, HB 1343 would change Chapter 47-18’s homestead protections and Chapter 57-28’s tax lien foreclosure procedures in the North Dakota Century Code. It would increase the amount of home equity shielded from judgment creditors, refine what property can qualify as a homestead, and expand the statutory notice given in tax foreclosure proceedings. It would also codify lien priority rules that favor property tax and special assessment collection over most competing claims, while preserving existing exceptions such as mechanics’ and construction-related liens.
Sentiment
The bill appears to have been supported by a minority of members but rejected on the House floor, failing 25-62 on second reading. That vote suggests the proposal had some backing, likely from members concerned with strengthening homestead protections and clarifying tax lien procedures, but not enough to overcome broader opposition. No committee transcript is available, so the recorded vote is the main indicator of sentiment.
Contention
The likely points of contention were the higher homestead exemption amount and the reallocation of lien priorities. Creditors, mortgage interests, and others holding judgment liens may have viewed the increased exemption as limiting collection options, while local taxing authorities may have supported clearer and stronger tax lien priority rules. Another possible area of disagreement was the added notice and declaration requirements, which could be seen either as consumer protection for homeowners or as added procedural complexity for foreclosure and recording officials.