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SB 2229

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.

69th Legislative Assembly (2025-26) Introduced by Josh Boschee and 4 co-sponsors

Requires sellers of condos or HOA properties to provide buyers with association documents and finances early in a sale, within 10 days, with remedies for delays.

Filed with Secretary Of State 03/18
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Bill Summary · SB 2229

Summary — SB 2229 (North Dakota)

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 (HOA) or condominium project.

Purpose / Intent

Require sellers of condominium units or properties governed by a homeowners' association or condominium project to provide prospective buyers with specified association information and governing documents early in the transaction. The bill aims to increase buyer transparency about assessments, finances, rules, litigation, insurance, and leasing restrictions and to set timelines and remedies when association documents are requested.

Key provisions

  • Definitions: adopts definitions for "condominium" (per NDCC 47‑04.1‑01), "condominium project," and "homeowners' association."
  • Timing of disclosure: seller must disclose in writing to a prospective buyer either by a mutually agreed date or within 10 days of executing a sales agreement.
  • Required disclosure items (must include information covering at least the 90 days immediately preceding the agreement date):
    • Periodic common expense assessments, maintenance fees, and any unpaid common expenses or special assessments due from the seller.
    • Amount of approved special assessments.
    • Copies of bylaws, amendments, supplemental declarations, rules/regulations, the declaration (excluding plats/plans), and minutes from the last two association meetings.
    • Reserve and capital fund balances and committed funds; whether a reserve study is used.
    • Current operating and reserve budgets and year‑to‑date financial statements, and any portions of reserves designated for specific projects.
    • Association‑provided insurance documents.
    • Unsatisfied judgments against the association and status of pending lawsuits (excluding routine assessment collections).
    • Notice of alleged uncured violations that pertain to the unit.
    • Transfer/transaction fees; remedies available to the association for nonpayment; assessment collection policy.
    • Restrictions on leasing units; list of association amenities; and contact information for the association or manager.
  • HOA/Condominium obligations:
    • Within 10 days of a seller’s request, the association must furnish the items above or notify the seller if requested documents are unavailable (with a limited exception for certain items).
    • The association may charge a reasonable document fee, which must be disclosed before final acceptance of the purchase agreement.
  • Buyer/seller protections and contract effects:
    • Buyer is not liable for unpaid assessments or fees in excess of the amounts shown in the association‑prepared documents.
    • Seller/seller’s agent who comply with the disclosure requirements are not liable for claims based on the disclosed information.
    • If the association fails or delays providing required documents, the purchase contract is voidable by the buyer until the documents are provided and for five days after receipt (or until conveyance, whichever occurs first).
    • Seller must timely amend disclosures if a material change arises after initial delivery and before closing or possession.

Who is affected

  • Sellers and listing agents of condominiums and properties subject to HOAs or condominium projects in North Dakota.
  • Homeowners' associations and condominium projects — administrative burden to assemble and deliver required documents within 10 days, and potential revenue from reasonable documentation fees.
  • Prospective buyers — greater access to financial, governance, insurance, and enforcement information; limited exposure to unknown assessment liabilities; a short rescission window tied to document delivery.

Procedural / status notes

  • Introduced in the Sixty‑ninth Legislative Assembly by Senators Boschee, Larson, Cory and Representatives Ostlie, Vetter.
  • Legislative history in the file indicates the bill passed both chambers (Senate vote 44–2; House vote 87–4), was signed by legislative leaders, sent to the Governor, and is recorded as signed by the Governor and filed with the Secretary of State on March 18, 2025.
  • The bill creates a new statutory section; parties should consult the official codification or the Secretary of State’s filing for exact effective date and any implementation details.

Potential impacts / considerations

  • Increases buyer protections and transaction transparency; may reduce post‑closing disputes over assessments and association obligations.
  • Imposes prompt document‑production timelines and recordkeeping expectations on associations; smaller or volunteer HOAs may incur administrative costs.
  • Short buyer rescission window tied to document delivery may affect closing schedules and negotiations.
  • Associations should review their record availability, meeting minutes practices, reserve reporting, and fee structures to comply.

Compiled from official sources — confirm details with the bill’s official record.

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