§ 47-10-02.3 — Required disclosures - Seller to provide

North Dakota § 47-10-02.3

• Jurisdiction: North Dakota
• Title 47: Property
• Ch. 47-10: Real Property Transfers

Text

1. As used in this section:
a. "Condominium" has the same meaning as provided under section 47-04.1-01.
b. "Condominium project" means a real property development or plan consisting of
a condominium.
c. "Homeowners' association" means an organization making and enforcing rules
and guidelines for a residential subdivision or planned community.
2. By a mutually agreed upon date or within ten days of executing an agreement to sell or
transfer a property subject to the rules and regulations of a homeowners' association
or condominium project, the seller shall disclose in writing to a prospective buyer:
a. A statement describing the amount of the periodic common expense assessment,
maintenance fees, or other charges and any unpaid common expenses or special
assessments currently due and payable from the seller;
b. The amount of approved special assessments;
c. A copy of the bylaws, amendments, supplemental declarations, rules, or
regulations of the homeowners' association or condominium project, official
minutes from the last two meetings of the association or condominium project,
and the declaration other than the plats and plans;
d. The amount of reserve and capital funds available and committed to current or
pending projects of the homeowners' association or condominium project;
e. Whether the homeowners' association or condominium project uses a reserve
study;
f. The current operating and reserve budgets and year-to-date financial statement
of the homeowners' association or condominium project and of any portions of
those reserves designated by the association or condominium project for any
specified projects;
g. Any insurance documents indicating coverage provided by a homeowners'
association or condominium project;
h. A statement of any unsatisfied judgments against the homeowners' association or
the condominium project and the status of any pending lawsuits in which the
association or project is a defendant, excluding routine assessment collections;
i. Notice of any homeowners' association or condominium project alleged and
uncured violations pertaining to the home or unit;
j. Any fees relating to the transfer of ownership or other transactions;
k. A statement of the remedies available to the homeowners' association or
condominium project as a result of nonpayment;
l. The assessment collection policy;
m. Notice of any homeowners' association or condominium project restrictions
related to the leasing of a unit;
n. A list of homeowners' association or condominium project amenities; and
o. The contact information for the homeowners' association or condominium project
or community association manager.
3. The documents provided under subsection 2 must include information from at least the
ninety days immediately preceding the effective date of the agreement to sell or
transfer a property.
4. A seller or seller's agent complying with this section is not liable for any claim or action
based on the disclosed information under subsection 1.
5. The homeowners' association or condominium project, within ten days after a request
by a seller, or the seller's authorized representative, shall furnish the documents
required under subsection 2. The homeowners' association or condominium project
may charge a reasonable fee, which must be disclosed before the final acceptance of
a purchase agreement, for furnishing any homeowners' association or condominium

project documents under subsection 2. If the requested documents under subsection 2
are not available, the homeowners' association or condominium project shall notify the
seller of the unavailability of the documents, provided the documents are not the
information requested under subdivisions a, b, d, and f of subsection 2.
6. A buyer is not liable for any unpaid assessment or fee greater than the amount
provided in the documents prepared by the homeowners' association or condominium
project. A seller is not liable to a buyer for the failure or delay of the homeowners'
association or condominium project to provide the documents in a timely manner, but
the purchase contract is voidable by the buyer until the documents have been
provided and for five days after receipt of the documents or until conveyance,
whichever occurs first.
7. If, after delivering the homeowners' association or condominium project information to
the buyer or the buyer's agent and before the date of closing for the property or the
date of possession of the property, whichever comes first, the seller becomes aware of
any change of material fact that would affect the information, the seller must furnish a
written amendment disclosing the change of material fact.