State guide

Buying or Selling a Home in North Dakota: What You Need to Know

North Dakota's real estate market is shaped by federal rules from the recent National Association of Realtors settlement, a long oil and gas history that complicates land ownership, and a few quirks that work in consumers' favor — like no real estate transfer tax.

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TL;DR

North Dakota's real estate market is shaped by federal rules from the recent National Association of Realtors settlement, a long oil and gas history that complicates land ownership, and a few quirks that work in consumers' favor — like no real estate transfer tax. Both buyers and sellers should pay close attention to mineral rights, flood risk in the Red River Valley, and the written agreements that now spell out who pays whom. The North Dakota Real Estate Commission (NDREC) licenses every agent and runs a Recovery Fund that can compensate consumers harmed by licensee fraud.

9 things every North Dakota buyer or seller should know

  • North Dakota does not charge a real estate transfer tax, so neither buyers nor sellers pay a percentage of the sale price to the state, county, or city when a deed changes hands. The only deed cost is a flat per-page recording fee set by the county recorder, which keeps closing costs noticeably lower than in most other states.

  • Mineral rights in North Dakota are very often severed from the surface, meaning the person who owns the land may not own the oil, gas, or other minerals underneath. If you are buying a home or acreage, never assume the minerals come with it — the title work should spell out exactly what is and is not included before you close.

  • Since August 17, 2024, an NAR settlement rule requires you to sign a written buyer broker agreement before an agent who participates in the MLS can take you to tour a home. The agreement must state the specific compensation your agent will be paid (a dollar amount, flat fee, or percentage), how long it lasts, and the property types and area it covers.

  • North Dakota has no statute requiring sellers to fill out a general residential disclosure form, unlike most states. Even so, common law fraud and misrepresentation rules still hold a North Dakota seller liable for hiding known defects (like a basement that floods every spring), and most agents will use the NDREC-approved disclosure form anyway to document what was shared.

  • Even after the NAR settlement, North Dakota sellers can still offer to pay all or part of the buyer's agent's commission — that offer just cannot be advertised through the MLS anymore. Sellers can communicate the offer directly to the buyer's agent, write it into the purchase agreement as a seller concession, or include it in marketing that is not distributed through the MLS.

  • Every North Dakota licensee must give you a written agency disclosure at first substantive contact — meaning the moment you start talking about price, terms, condition, motivation, or financing. The NDREC-approved form tells you whether the agent represents the seller, the buyer, both parties as a dual agent, or neither.

  • Dual agency — one agent or brokerage representing both the buyer and the seller in the same deal — is legal in North Dakota only with informed written consent from both sides. A dual agent cannot give either party negotiation advice or share confidential information like the seller's lowest acceptable price or the buyer's maximum budget.

  • Homes in or near Fargo and Grand Forks often sit inside FEMA Special Flood Hazard Areas because of the Red River Valley's flood history. If a property falls in one of these zones and you are using a federally backed mortgage, your lender will require flood insurance through the National Flood Insurance Program for as long as the loan is in place.

  • If a North Dakota licensee defrauds you and you cannot collect from them personally, the state's Real Estate Education and Recovery Fund can pay your actual monetary losses up to statutory limits. You first need a final court judgment proving fraudulent, dishonest, or deceitful conduct, proof you tried to collect from the licensee, and a verified application filed with NDREC within the deadlines.

The guides

Common questions

Does North Dakota charge a real estate transfer tax at closing?
No. North Dakota is one of a small group of states with no state, county, or city transfer tax on real estate sales, so you will not see a percentage-based deed tax on your settlement statement. You will still pay a flat per-page recording fee charged by the county recorder, but those fees are usually a small fixed amount, not a percentage of the sale price.
Do I have to sign a buyer broker agreement before I can tour homes in North Dakota?
Yes, if your agent participates in the MLS. Since August 17, 2024, an NAR settlement rule requires a written buyer representation agreement before any MLS-listed home tour, and the agreement has to state the specific compensation your agent will earn. The term, geographic area, and property types are all negotiable, so do not feel locked into the first version handed to you.
If I buy land or a home in North Dakota, do I get the oil and gas rights underneath?
Often you do not. Severed mineral estates are extremely common in North Dakota because of the Bakken and other oil and gas plays, so the surface and the minerals are frequently owned by different parties. Ask your agent and your title company to confirm in writing exactly what minerals are included with the purchase before you remove your title contingency.
Do I have to fill out a seller disclosure form when I sell my home in North Dakota?
There is no state statute that requires a general residential seller disclosure form, unlike many other states. Common law in North Dakota still holds you and your agent liable for hiding known defects or making false statements about the property, so most sellers use the NDREC-approved disclosure form anyway as a paper trail of what was shared with the buyer.
Can the same agent represent me and the other party in the same North Dakota deal?
Yes, but only if both the buyer and the seller give written informed consent to dual agency under NDCC 43-23-11.1. In dual agency, the agent cannot give negotiation advice to either side or reveal confidential information like the seller's bottom line or the buyer's top budget — you trade advocacy for simplicity.
Will I have to buy flood insurance for a home in Fargo or Grand Forks?
If the property sits inside a FEMA Special Flood Hazard Area and you are financing with a federally backed mortgage, your lender will require flood insurance for the life of the loan. Even if you are paying cash or the home is just outside the mapped flood zone, flood insurance is worth pricing in the Red River Valley because of the area's history of major floods.
Now that buyer-agent commissions cannot be posted on the MLS, do North Dakota sellers still pay the buyer's agent?
They often still do — they just cannot publish the offer through the MLS data fields anymore under the August 2024 NAR settlement change. Sellers can offer to pay the buyer's agent through a seller concession written into the purchase agreement, or through a direct offer of compensation communicated outside the MLS.
What protection do I have if a North Dakota real estate agent defrauds me?
North Dakota maintains a Real Estate Education and Recovery Fund under NDCC 43-23-30 that can compensate you for actual monetary losses caused by a licensee's fraudulent, dishonest, or deceitful conduct in a transaction. You first need a court judgment against the agent and proof you tried to collect from them personally, then you file a verified claim with NDREC within the statutory deadlines.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.