23.0627.01000
Sixty-eighth
Legislative Assembly HOUSE BILL NO. 1190
of North Dakota
Introduced by
Representatives Louser, Boschee, Cory, Koppelman, Mock, Steiner, VanWinkle
Senators Larsen, Larson
1 A BILL for an Act to amend and reenact sections 43-23-06.1 and 43-23-07 of the North Dakota
2 Century Code, relating to practicing as a real estate broker or salesperson.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Section 43-23-06.1 of the North Dakota Century Code is
5 amended and reenacted as follows:
6 43-23-06.1. Definitions.
7 As used in this chapter, unless the context otherwise requires:
8 1. "Appointed agent" means a licensee appointed by a designated broker of the
9 licensee's real estate brokerage firm to act solely for a client of that brokerage firm to
10 the exclusion of other licensees of that brokerage firm.
11 2. "Client" means a person that has entered a written agency agreement with a real
12 estate brokerage firm.
13 3. "Commission" means the North Dakota real estate commission.
14 4. "Customer" means a buyer, prospective buyer, seller, lessee, or lessor that is not
15 represented by that real estate brokerage firm in a real property transaction.
16 5. "Designated broker" means a licensee designated by a real estate brokerage firm to
17 act on behalf of the brokerage firm.
18 6. "Dual agency" means a situation in which a real estate brokerage firm or the real
19 estate brokerage firm's licensees owe a duty to more than one party in a real estate
20 transaction. Dual agency is established only as follows:
21 a. When one licensee represents both the buyer and the seller in a real estate
22 transaction; or
23 b. When two or more licensees, licensed to the same broker, each represents a
24 party to the real estate transaction.
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1 "Dual agency" does not exist unless both the seller and the buyer in a real estate
2 transaction have written agency agreements with the same real estate brokerage firm.
3 For purposes of "dual agency" a subagency arrangement is not a written agency
4 agreement.
5 7. "Licensee" means a real estate broker, an associate real estate broker, or a real estate
6 salesperson who is associated with a real estate brokerage firm.
7 8. "Real estate", "real property", "realty", or words of like import, means any interest or
8 estate in land, including leaseholds, whether such interest or estate is corporeal,
9 incorporeal, freehold, or nonfreehold, and whether situated in this state or elsewhere;
10 provided, however, that the meaning as used in this chapter does not include oil, gas,
11 or mineral leases, nor does it include any other mineral leasehold, mineral estate, or
12 mineral interest of any nature whatsoever.
13 9. "Real estate broker", or "broker", means any person that, for another, for a fee,
14 commission, salary, or other consideration, or with the intention or expectation of
15 receiving or collecting such compensation from another, engages in or offers or
16 attempts to engage in, either directly or indirectly by a continuing course of conduct or
17 by a single act or transaction, any of the following acts:
18 a. Lists, offers, attempts, or agrees to list real estate or any interest in that real
19 estate, or any improvements affixed on that real estate for sale, exchange, or
20 lease.
21 b. Sells, exchanges, purchases, or leases real estate or any interest in that real
22 estate, or any improvements affixed on that real estate.
23 c. Offers to sell, exchange, purchase, or lease real estate or any interest in that real
24 estate, or any improvements affixed on that real estate.
25 d. Negotiates or offers, attempts, or agrees to negotiate the sale, exchange,
26 purchase, or leasing of real estate or any interest in that real estate, or any
27 improvements affixed on that real estate.
28 e. Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or
29 any interest in that real estate, or any improvements on that real estate.
30 f. Who is a licensee under this chapter and performs any of the acts set out in this
31 subsection while acting in the licensee's own behalf.
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1 g. Advertises or holds out as being engaged in the business of buying, selling,
2 exchanging, or leasing of real estate or any interest in that real estate, or any
3 improvements on that real estate.
4 h. Assists or directs in the procuring of prospects, calculated to result in the sale,
5 exchange, or leasing of real estate or any interest in that real estate, or any
6 improvements on that real estate.
7 i. Publicly markets for sale an equitable interest in a contract for the purchase of
8 real property between a property owner and a prospective purchaser.
9 10. "Real estate brokerage firm" means a person that is providing real estate brokerage
10 services through that person's licensees and which is licensed by the commission as a
11 real estate brokerage firm.
12 11. "Real estate salesperson" means any person that for a fee, compensation, salary, or
13 other consideration, or in the expectation or upon the promise of that compensation, is
14 employed or engaged by a licensed real estate broker to do any act or deal in any
15 transaction as provided in subsection 69 for or on behalf of such licensed real estate
16 broker.
17 SECTION 2. AMENDMENT. Section 43-23-07 of the North Dakota Century Code is
18 amended and reenacted as follows:
19 43-23-07. Real estate brokers and salespersons - Exceptions.
20 1. The term "real estate broker" or "real estate salesperson" does not include:
21 1. a. Any person, partnership, association, corporation, or limited liability company
22 who is a bona fide owner or lessor or who accepts or markets leasehold interests
23 in residential or agricultural property and performs any of the aforesaid acts with
24 reference to property owned or leased by them, nor does it apply to regular
25 employees thereof, when the acts are performed in the regular course of or as an
26 incident to the management of the property and the investment therein.
27 2. b. An attorney at law, admitted to practice in this state, handling sales of real estate
28 in the course of estate or guardianship administration in district court, or trust
29 administration, bankruptcy proceedings, receiverships, or like actions subject to
30 approval by a court of competent jurisdiction, or sales of real estate arising in the
31 usual course of the practice of law.
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1 3. c. Any person selling real estate as an auctioneer, provided the sale is advertised
2 as a bona fide public auction.
3 4. d. Any bank or trust company or any of its officers or employees in the performance
4 of their duties as an officer or employee of the bank or trust company.
5 5. e. Any person holding in good faith a duly executed power of attorney from the
6 owner, authorizing a final consummation and execution for the sale, purchase,
7 lease, or exchange of real estate when such acts are not of a recurrent nature
8 and done with the intention of evading this section.
9 6. f. Any person while acting as a receiver, trustee, administrator, executor, guardian,
10 or under court order, or while acting under authority of a deed, trust, or will.
11 7. g. Public officers while performing their duties.
12 2. This section does not exempt from the definition of "real estate broker" or "real estate
13 salesperson" for consideration publicly marketing for sale an equitable interest in a
14 contract for the purchase of real property between a property owner and a prospective
15 purchaser.
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Statutes affected: INTRODUCED: 43-23-06.1, 43-23-07
FIRST ENGROSSMENT: 43-23-06.1, 43-23-07
Enrollment: 43-23-06.1, 43-23-07