Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Estate Sales topic
No spam. Unsubscribe anytime.
Committee backs bill allowing cities to use exclusive listing agreements to sell public property
Summary
House Bill 1401, backed by the League of North Dakota Cities, would allow non‑home‑rule cities to enter exclusive agency agreements with real‑estate brokers and requires a competitive and transparent selection process; committee gave the bill a unanimous due‑pass recommendation.
The Senate Industry and Business Committee unanimously recommended a due pass for House Bill 1401, which would let cities use exclusive listing agreements with licensed real‑estate brokers when selling public property and requires a public, competitive process for selecting an agent.
Representative Jonathan Warrie, who introduced the bill on behalf of the League of North Dakota Cities, said some cities do not get fair market value when they rely solely on the public‑notice and highest‑responsible‑bid approach under current state law. “They want to contract with real estate brokers,” Warrie said, and the House committee amended the bill to “establish a fair process for selecting who the real estate agent's going to be.”
Stephanie Ingebretsen, testifying for the League of North Dakota Cities, said the change would enable smaller non‑home‑rule cities to use a specified, transparent process to hire brokers and list properties on the multiple listing service (MLS). “We are seeking the ability for cities to enter exclusive listing agreements with a real estate broker to sell these properties,” she told the committee. She said the House amendment requires at least 14 days’ notice on a city's website, or an alternative notification process for towns without a website, and sets evaluation factors such as prior experience, marketing strategy and proposed compensation.
Jill Beck, representing the real‑estate association, said MLS exposure typically draws more buyers and can increase sales prices. Committee members discussed whether the bill should include an emergency clause; Ingebretsen said cities that use home‑rule authority already do this and she did not recommend an emergency clause.
Senator Angott moved for a due pass and Senator Behm seconded. The committee recorded a unanimous 5‑0 vote to recommend passage; Senator Angott agreed to carry the bill to the floor.
The bill's text also includes language on broker compensation and expresses legislative intent that both seller's and buyer's brokers be compensated where appropriate; testimony noted that language was drafted carefully because ongoing litigation affects national commission practices.
