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 Dakota Century Code, relating to real estate licensing.
HB 1125 updates North Dakota’s real estate licensing law in several areas. It revises statutory definitions used in the real estate licensing chapter, including clarifying who qualifies as a client, customer, licensee, brokerage firm, and broker, and it refines the state’s definition of dual agency. The bill also preserves the existing exclusion of oil, gas, and mineral interests from the chapter’s definition of real estate.
The bill adjusts licensing standards and renewal procedures for real estate brokers and salespersons. It keeps the core education, age, experience, and character requirements in place, but changes renewal timing and late-renewal procedures by allowing the commission to set deadlines and late-renewal dates by rule. It also authorizes the commission to set the annual registration interval and related administrative details, while maintaining the consequence that a license not renewed by the applicable deadline is canceled and the person must requalify as a new applicant.
HB 1125 also revises the section governing wholesale buyers and sellers of residential real property. It defines “wholesaler” more clearly, requires written disclosure that the wholesaler has only an equitable interest and may not be able to convey title, and states that the wholesaler intends to profit from the transfer of that interest. If a wholesaler fails to comply, either the seller or buyer may cancel the contract before closing without penalty, with the seller allowed to keep earnest money and the buyer entitled to a refund.
The bill’s impact is primarily on the regulation of real estate professionals and residential property wholesaling in North Dakota. It affects brokers, salespersons, brokerage firms, the Real Estate Commission, and parties to residential real estate contracts by tightening disclosure obligations and giving the commission more flexibility over licensing administration and renewal timing. The bill amends four sections of the Century Code: 43-23-06.1, 43-23-08, 43-23-13.1, and 43-23-24.
The overall sentiment appears strongly favorable and noncontroversial. The bill passed both chambers unanimously, with a 93-0 House vote and a 46-0 Senate vote, and there is no recorded committee debate in the provided materials. The main point of potential concern, based on the text itself, is the regulation of wholesaling practices and the expanded disclosure/cancellation rights, but no opposition is reflected in the voting record or available discussion.
HB 1125 amends North Dakota Century Code chapter 43-23 to update real estate licensing definitions, licensing standards, renewal procedures, and wholesaling disclosure rules. It gives the Real Estate Commission additional administrative discretion over renewal intervals and deadlines, while preserving existing education, age, and experience requirements for licensure. It also strengthens disclosure requirements for wholesalers of residential real property and creates contract cancellation remedies for noncompliance, directly affecting brokers, salespersons, brokerage firms, wholesalers, and buyers and sellers in residential transactions.
The bill appears to have been broadly supported and largely uncontroversial. It passed the House 93-0 and the Senate 46-0, with no recorded dissenting votes and no committee transcript provided to indicate substantive opposition. The unanimous votes suggest consensus around clarifying licensing rules and increasing transparency in residential wholesaling.
No explicit contention is reflected in the available committee or floor materials. Based on the bill text, the most likely areas of concern would be the new wholesaler disclosure requirements, the ability of either party to cancel a contract for noncompliance, and the commission’s expanded authority to set renewal timing and late-renewal dates. However, the voting record shows no opposition, so any disagreement was either minimal or resolved before final passage.