As used in this chapter, unless the context otherwise requires:

Terms Used In North Dakota Code 43-23-06.1

  • Contract: A legal written agreement that becomes binding when signed.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
  • Property: includes property, real and personal. See North Dakota Code 1-01-49
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
  • written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37

1.    “Appointed agent” means a licensee appointed by a designated broker of the licensee’s real estate brokerage firm to act solely for a client of that brokerage firm to the exclusion of other licensees of that brokerage firm.

2.    “Client” means a person that has entered a written agency agreement with a real estate brokerage firm.

3.    “Commission” means the North Dakota real estate commission.

4.    “Customer” means a buyer, prospective buyer, seller, lessee, or lessor that is not represented by that real estate brokerage firm in a real property transaction.

5.    “Designated broker” means a licensee designated by a real estate brokerage firm to act on behalf of the brokerage firm.

6.    “Dual agency” means a situation in which a real estate brokerage firm or the real estate brokerage firm’s licensees owe a duty to more than one party in a real estate transaction. Dual agency is established only as follows:

a.    When one licensee represents both the buyer and the seller in a real estate transaction; or

b.    When two or more licensees, licensed to the same broker, each represents a party to the real estate transaction.

“Dual agency” does not exist unless both the seller and the buyer in a real estate transaction have written agency agreements with the same real estate brokerage firm.

For purposes of “dual agency” a subagency arrangement is not a written agency agreement.

7.    “Licensee” means a real estate broker, an associate real estate broker, or a real estate salesperson who is associated with a real estate brokerage firm.

8.    “Real estate”, “real property”, “realty”, or words of like import, means any interest or estate in land, including leaseholds, whether such interest or estate is corporeal, incorporeal, freehold, or nonfreehold, and whether situated in this state or elsewhere; provided, however, that the meaning as used in this chapter does not include oil, gas, or mineral leases, nor does it include any other mineral leasehold, mineral estate, or mineral interest of any nature whatsoever.

    9.    “Real estate broker”, or “broker”, means any person that, for another, for a fee, commission, salary, or other consideration, or with the intention or expectation of receiving or collecting such compensation from another, engages in or offers or attempts to engage in, either directly or indirectly by a continuing course of conduct or by a single act or transaction, any of the following acts:

a.    Lists, offers, attempts, or agrees to list real estate or any interest in that real estate, or any improvements affixed on that real estate for sale, exchange, or lease.

b.    Sells, exchanges, purchases, or leases real estate or any interest in that real estate, or any improvements affixed on that real estate.

c.    Offers to sell, exchange, purchase, or lease real estate or any interest in that real estate, or any improvements affixed on that real estate.

d.    Negotiates or offers, attempts, or agrees to negotiate the sale, exchange, purchase, or leasing of real estate or any interest in that real estate, or any improvements affixed on that real estate.

e.    Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or any interest in that real estate, or any improvements on that real estate.

f.    Who is a licensee under this chapter and performs any of the acts set out in this subsection while acting in the licensee’s own behalf.

g.    Advertises or holds out as being engaged in the business of buying, selling, exchanging, or leasing of real estate or any interest in that real estate, or any improvements on that real estate.

h.    Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, or leasing of real estate or any interest in that real estate, or any improvements on that real estate.

i.    Publicly markets for sale an equitable interest in a contract for the purchase of real property between a property owner and a prospective purchaser.

10.    “Real estate brokerage firm” means a person that is providing real estate brokerage services through that person’s licensees and which is licensed by the commission as a real estate brokerage firm.

11.    “Real estate salesperson” means any person that for a fee, compensation, salary, or other consideration, or in the expectation or upon the promise of that compensation, is employed or engaged by a licensed real estate broker to do any act or deal in any transaction as provided in subsection 9 for or on behalf of such licensed real estate broker.