The North Dakota residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in North Dakota Have To Disclose Property Defects?
North Dakota does require real estate sellers to disclose any material defects with a property. In most cases, this is through a standardized disclosure form provided through the Real Estate Commission by statute.
The seller always has a duty to disclose all material defects covered by the statutory requirement, even when the buyer agrees to take the property “as-is.”
North Dakota exempts the following common transfers, among others, from the standard disclosure form requirement:
- Court-ordered sales and transfers
- Sales by foreclosure or other debt default
- Transfer as part of the execution of a will or estate
- Transfer to a spouse, parent, or child
- Transfers to or from a government entity
Required Seller Disclosures in North Dakota
North Dakota sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Seller’s Property Disclosure Statement: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
Sources
- 1 N.D. Cent. Code § 47-10-02.1(2)
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Except as otherwise provided in an offer to purchase agreement, before the parties sign the final acceptance of the purchase agreement for the sale, exchange, or purchase of the real property, the seller in a transaction subject to subsection 1 shall prepare a written disclosure form and shall make the written disclosure form available to the prospective buyer. The written disclosure form must include all material facts the seller is aware could adversely and significantly affect an ordinary buyer’s use and enjoyment of the property or any intended use of the property of which the seller is aware. The written disclosure form must be in the form of the written disclosure form established by the North Dakota real estate commission under subsection 4 or in a substantially similar form and must include latent defects, general condition, environmental issues, structural systems, and mechanical issues regarding the property. The seller shall complete the written disclosure in good faith and based upon the best of the seller’s knowledge at the time of the disclosure.
Source Link - 2 N.D. Cent. Code § 47-10-02.1(7)
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This section does not apply to transactions for the sale, exchange, or purchase of real property made:
a. Pursuant to a court order;
b. Between government agencies;
c. By a mortgagor in default to a mortgagee;
d. Pursuant to a foreclosure sale;
e. By a mortgagee or a beneficiary of a deed of trust who acquired the real property by a:
(1) Foreclosure;
(2) Deed in lieu of foreclosure; or
(3) Collateral assignment of beneficial interest;
f. By a fiduciary administering a decedent’s estate, guardianship, conservatorship, or trust;
g. Between co-owners of the real property;
h. To a spouse, child, parent, sibling, grandchild, or grandparent; or
i. If the real property is newly constructed residential real property with no previous occupancy.
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