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HB 1125

RELATING TO THE GENERAL EXCISE TAX.

2025 Regular Session Introduced by Nadine Nakamura

Updates real estate licensing: clarifies agency, adds appointed agent and strict dual-agency rules, sets education prerequisites (90h sales, +60h broker) and limited out-of-state c

Carried over to 2026 Regular Session.
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Bill Summary · HB 1125

Summary — HB 1125 (North Dakota): Real estate licensing amendments

Status and timeline
- Bill: HB 1125 — "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."
- Introduced: November 12, 2024. Adopted by the Industry, Business and Labor Committee (Jan 28, 2025). Filed with the Secretary of State: April 8, 2025 (per provided status).
- Affects statutes in North Dakota Century Code chapters governing real estate licensing (sections cited above).

Purpose and intent
- To update and clarify key definitions and licensing standards governing real estate brokers, associate brokers, salespersons, and brokerage firms in North Dakota.
- To refine how agency relationships (including dual agency and appointed agents) are defined and to set explicit education/experience prerequisites and limits on waivers.

Key provisions and changes
- New / clarified definitions (43-23-06.1):
- "Appointed agent": a licensee appointed by a designated broker to act solely for a client of that brokerage, excluding other licensees of the firm.
- "Client", "customer", "commission", "designated broker", "licensee", "real estate", "real estate broker", "real estate brokerage firm", and "real estate salesperson" are restated or clarified.
- "Dual agency" is narrowly defined: it exists only when both the buyer and the seller have written agency agreements with the same brokerage firm. Subagency arrangements are expressly not treated as written agency agreements for establishing dual agency.

  • Licensing standards and prerequisites (43-23-08):

    • Minimum age for broker or salesperson licensure: 18 years.
    • Broker experience requirement: generally must have been a licensed salesperson actively engaged for at least two years, or possess substantially equivalent experience as determined by the commission.
    • Education prerequisites: salesperson applicants must show completion of at least 90 hours of commission‑approved coursework; broker applicants must complete an additional 60 hours (i.e., 150 hours total). Applicants may take exams before completing education in some cases, but licenses cannot be issued without satisfying the education requirement (and brokers must complete it before taking the broker exam).
    • The commission may waive the experience requirement in areas where employment opportunities are limited, but educational requirements cannot be waived.

  • Interstate commission-sharing language:

    • A licensed North Dakota broker may divide or share a real estate commission with an out‑of‑state licensed broker provided the out‑of‑state broker does not conduct negotiations on behalf of the referred client within North Dakota (either by physically entering the state or by communicating from outside the state).

Who is affected
- Primary: real estate license applicants, current real estate brokers, associate brokers, salespersons, and real estate brokerage firms operating in North Dakota.
- Secondary: consumers (buyers/sellers/lessees/ lessors) whose agency relationships and protections are governed by these rules.
- Administrative: North Dakota Real Estate Commission, which implements and enforces licensing, examinations, and any waivers.

Potential impact and considerations
- Clarifies agency concepts (especially dual agency and appointed agents), which affects how brokerages structure representation and disclosures.
- Maintains and formalizes clear education thresholds (90 hours for salespersons; +60 for brokers) and restricts waivers for education—likely to raise consistency in initial training.
- Permits limited commission sharing with out-of-state brokers under specific conditions, facilitating cross‑border referrals while trying to limit out‑of‑state negotiation activity in ND.
- Gives the Real Estate Commission explicit authority to assess experience equivalency and to waive experience requirements in constrained markets.

Procedural notes
- The bill amends four specified NDCC sections. Interested parties (brokers, schools, commission staff) should monitor the Real Estate Commission for implementing rules or updates to approved education programs and for guidance on the new dual‑agency and appointed‑agent language.

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

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