Key Takeaways
- North Dakota recognizes seller's agency, buyer's agency, and dual agency
- A single agent represents only the buyer OR the seller—never both simultaneously
- Dual agency requires written consent from both parties and occurs when one licensee represents both parties or two licensees from the same brokerage each represent a party
- All licensees owe duties of honesty, confidentiality, and disclosure of material facts
- Licensees must disclose personal interests in transactions
North Dakota Agency Relationships
North Dakota law defines the types of agency relationships that real estate licensees may have with consumers.
Types of Agency Relationships
Seller's (Owner's) Agent
A seller's agent is a licensee who represents only the seller in a transaction:
Duties to the Seller (Client):
| Duty | Description |
|---|---|
| Loyalty | Act in the seller's best interests |
| Confidentiality | Keep seller's information confidential |
| Disclosure | Inform seller of all relevant information |
| Obedience | Follow lawful instructions |
| Accounting | Account for all funds |
| Care | Exercise reasonable skill and care |
Buyer's Agent
A buyer's agent is a licensee who represents only the buyer in a transaction:
Duties to the Buyer (Client):
| Duty | Description |
|---|---|
| Loyalty | Act in the buyer's best interests |
| Confidentiality | Keep buyer's information confidential |
| Disclosure | Disclose material facts about property |
| Obedience | Follow lawful instructions |
| Accounting | Account for all funds |
| Care | Exercise reasonable skill and care |
Dual Agency
Dual agency occurs when a licensee owes duties to more than one party:
| Dual Agency Scenarios |
|---|
| One licensee represents both buyer and seller |
| Two licensees from the same broker each represent a party |
Key Requirement: Both parties must give written consent to dual agency.
Duties to ALL Parties
Regardless of who they represent, North Dakota licensees owe certain duties to all parties:
Universal Duties
| Duty | Description |
|---|---|
| Honesty | Deal honestly with all parties |
| Material facts | Disclose facts that could adversely affect a party's use and enjoyment |
| Confidentiality | Maintain confidentiality of information gained in confidence |
| Competence | Provide competent service |
Material Facts Disclosure
Licensees must disclose material facts to all parties, including:
- Facts that may adversely and significantly affect use or enjoyment of the property
- Known defects in the property
- Environmental hazards
- Legal issues affecting the property
Confidentiality Requirements
Information gained in confidence must be kept confidential unless:
- Disclosure is required by law
- Disclosure is authorized in writing
- Information becomes public knowledge
Dual Agency Limitations
When acting as a dual agent, a licensee:
| Can Do | Cannot Do |
|---|---|
| Facilitate the transaction | Advocate for one party over the other |
| Present offers fairly | Disclose confidential information of either party |
| Provide factual information | Give advice that favors one party |
| Help with paperwork | Negotiate against either party's interests |
Personal Interest Disclosure
A licensee must disclose in writing when acting for:
- Themselves - purchasing or selling own property
- Family members - immediate family transactions
- Business interests - entities in which licensee has an interest
Key Rule: This disclosure must be provided to ALL parties to the transaction.
Compensation Disclosure
| Situation | Requirement |
|---|---|
| Receiving compensation from one party | Standard—no special disclosure |
| Receiving compensation from multiple parties | Must disclose to ALL parties in writing |
When does dual agency exist in North Dakota?
Which duty does a North Dakota licensee owe to ALL parties in a transaction?
When must a licensee disclose a personal interest in a property?