AN ACT to create and enact a new section to chapter 47-10 of the North Dakota Century Code, relating to required disclosures before the sale of a condominium unit or a property subject to a homeowners' association or a condominium project.
SB 2229 creates a new disclosure requirement for sales of condominium units and properties governed by a homeowners’ association (HOA) or condominium project. Before closing, the seller must provide a prospective buyer with a detailed written package covering assessments and unpaid charges, special assessments, governing documents, recent meeting minutes, reserve and operating financial information, insurance documents, pending lawsuits, known violations, transfer fees, collection remedies, leasing restrictions, amenities, and contact information for the association or manager. The bill also requires that the information reflect at least the 90 days immediately preceding the effective date of the sale agreement.
The bill further requires the HOA or condominium project to furnish the requested documents within 10 days of a seller’s request and allows a reasonable fee, so long as the fee is disclosed before final acceptance of the purchase agreement. If documents are unavailable, the association must notify the seller, with limited exceptions for certain financial and assessment information. The bill also gives buyers protection from liability for unpaid assessments or fees beyond what is stated in the documents, and it makes the purchase contract voidable for a limited period if the documents are not timely provided. Sellers must also update the buyer if a material fact changes before closing or possession.
SB 2229 adds a new section to Chapter 47-10 of the North Dakota Century Code governing real estate transactions involving condominiums and HOA-managed properties. It imposes statutory disclosure duties on sellers and document-production duties on HOAs and condominium projects, while limiting seller liability when they comply and limiting buyer exposure to undisclosed assessments or fees. The bill affects sellers, buyers, HOAs, condominium associations, and community association managers by standardizing what must be disclosed and when, and by creating a contractual remedy if disclosures are delayed.
The bill appears to have broad bipartisan support and passed both chambers by large margins, with 44-2 in the Senate and 87-4 in the House. The vote totals suggest general agreement that buyers should receive clearer information before purchasing HOA or condominium property. No committee transcript was provided, so there is no recorded floor or committee debate to indicate significant opposition or amendments in the available materials.
The main potential points of contention are the scope and burden of the disclosure package, the 10-day deadline for associations to produce documents, and the ability of HOAs or condominium projects to charge a reasonable fee for furnishing records. Another likely issue is the contract-voidability provision, which protects buyers but could create uncertainty for sellers if disclosures are delayed. The limited opposition reflected in the votes suggests these concerns did not prevent passage, but they are the most plausible areas of disagreement among sellers, associations, and buyers.