Committee hears bill to allow cities to use exclusive real-estate listings; motion to advance fails

Representative Jonathan Worrie (District 22) introduced House Bill 1401, which would allow cities to use exclusive listing agreements with licensed real-estate brokers when selling publicly owned property.

Supporters said the current process limits marketing reach and may suppress sale prices. Stephanie Ingebretsen, deputy director and attorney for the North Dakota League of Cities, told the committee that cities currently have two options: a public sale (published in a newspaper twice, oral or written competitive bids and a requirement to accept the highest bid) or a nonexclusive listing agreement that often fails to get properties onto MLS and attracts little broker interest. She said the bill would allow a competitive selection of a listing broker and the option to market properties on MLS.

Jill Beck, CEO of the North Dakota Association of Realtors, also supported the bill. Beck described exclusive listings as a standard private-market tool that gives sellers more marketing reach and allows a listing broker to perform fiduciary duties to a municipal seller. She said buyer-agent compensation would remain a negotiated matter between listing and selling brokers as in private transactions.

Committee members raised concerns about preserving objective, competitive selection and avoiding favoritism. Representative Koppelman and others pressed supporters on safeguards—suggesting objective scoring factors, transparency in selection and limits on how commissions are split so a listing broker cannot unilaterally reduce the buyer-agent share. Sponsor Worrie and witnesses said they were willing to add language describing evaluation factors for the competitive process.

Representative Shower moved a do-pass recommendation; Representative Ulmer seconded. Committee debate focused on whether to add “guardrails” to ensure an objective broker-selection process and to clarify how buyer-agent compensation would be handled. After a roll call, the motion to advance the bill failed. Members discussed continuing work on language and possibly returning the bill to committee with amendments. The committee closed the hearing on HB 1401 without a recommendation.

Why it matters: The bill would change how municipalities can market and sell public land, shifting authority from a formal public-bid requirement toward negotiated listings that can use MLS exposure. Supporters said the change could increase bids and speed sales; critics warned it could concentrate opportunities with favored agents unless the statute requires clear competitive criteria and commission-splitting rules.

Next steps: Sponsors and industry groups agreed to work on specific statutory language addressing objective selection criteria and commission-split transparency before returning the bill to committee.