2.3 Property Disclosure Requirements
Key Takeaways
- When a licensee is involved in a 1-4 unit residential transaction, North Dakota requires written property disclosure of known material facts
- Without a licensee involved, North Dakota follows caveat emptor (buyer beware)
- A radon disclosure became required effective August 1, 2025, using the statutory statement and any test results in the seller's possession
- Federal law requires lead-based paint disclosure and the EPA pamphlet for homes built before 1978
- Licensees must disclose known defects and answer direct questions honestly even if the seller does not disclose
North Dakota's property-disclosure rules turn on a single question: is a real estate licensee involved? When the answer is yes, the seller of a residential dwelling must disclose known material facts. When no licensee is involved, the common-law rule of caveat emptor (buyer beware) governs.
When Disclosure Is Required
| Condition | Required? |
|---|---|
| 1–4 unit residential dwelling in ND | Yes |
| A licensee represents or assists a party | Yes |
| Both conditions met | Disclosure required |
Important: If no licensee is involved (a true for-sale-by-owner with no agent on either side), North Dakota does not impose a statutory disclosure duty on the seller — the buyer must investigate. The disclosure obligation is tied to licensee involvement in residential transactions.
What Must Be Disclosed: Material Facts
Sellers must disclose all material facts they are aware of that could adversely and significantly affect an ordinary buyer's use and enjoyment, an intended use, or the value of the property.
| Category | Examples |
|---|---|
| Structural | Foundation problems, roof condition, structural damage |
| Systems | HVAC failures, plumbing leaks, electrical defects |
| Environmental | Flooding history, mold, contamination, radon |
| Legal | Zoning violations, easements, boundary disputes |
| Improvements | Unpermitted work, code violations |
The North Dakota Realtors Association publishes a standard Seller's Property Disclosure form. The seller completes it (typically before contract acceptance), answering questions about condition with Yes, No, Unknown, or N/A. The disclosure reflects the seller's actual knowledge — it is not a warranty or a substitute for a professional inspection.
Radon Disclosure (Effective August 1, 2025)
A North Dakota law effective August 1, 2025 added a specific radon disclosure for residential transfers (NDCC 47-10-02.2).
| Requirement | Detail |
|---|---|
| Written disclosure | Seller discloses any knowledge of radon concentrations |
| Statutory statement | Provide the exact radon statement set out in NDCC 47-10-02.2(2) |
| Test results | Provide any radon test results in the seller's possession |
| Mitigation | Disclose any radon mitigation systems or work performed |
| Buyer acknowledgment | Buyer signs acknowledging receipt |
| Timing | Provide before executing an agreement to sell or transfer |
Radon is a naturally occurring radioactive gas common in the Northern Plains, which is why North Dakota singled it out.
Exam alert: This is a recent requirement — expect a state-portion question. The key facts are the August 1, 2025 effective date and that the disclosure must use the statutory statement and come before the agreement is executed.
Lead-Based Paint Disclosure (Federal Law)
For homes built before 1978, federal law (the Residential Lead-Based Paint Hazard Reduction Act of 1992) overrides any state rule.
| Requirement | Detail |
|---|---|
| Disclosure | Known lead-based paint and hazards |
| EPA pamphlet | "Protect Your Family From Lead in Your Home" |
| Inspection period | Buyer has 10 days to inspect (the period is waivable) |
| Written form | Federal Lead-Based Paint Disclosure with signatures |
Note: Lead-based paint disclosure is required regardless of North Dakota's other rules — it is federal and applies whenever a pre-1978 dwelling is sold or leased.
Stigmatized Property and Direct Questions
North Dakota does not require disclosure of certain "stigmas" unrelated to the physical condition of the property.
| Generally Not Required | Reason |
|---|---|
| Deaths on the property | Not a physical/material condition |
| Alleged hauntings | Psychological, not physical |
| Proximity to registered offenders | Publicly available information |
| Occupant's HIV/AIDS status | Protected; fair housing concern |
Exception — direct questions: If a buyer asks a licensee directly about a specific issue and the licensee knows the answer, the licensee must answer honestly. A licensee may never knowingly lie.
Licensee Obligations Even If the Seller Stays Silent
| Duty | Description |
|---|---|
| Disclose known defects | If the licensee knows of a material defect, disclose it |
| Do not conceal | Cannot hide or minimize a known problem |
| Answer honestly | Truthfully answer direct questions |
| Recommend inspections | Suggest professional inspections for major systems |
Exam tip: The licensee's duty is independent of the seller's. Even if a seller hides a cracked foundation, a licensee who knows about it must disclose it — silence by the agent is itself a violation.
Putting the Disclosure Rules Together
A single residential sale can trigger several overlapping disclosures, and the exam may layer them. Consider a 1962 single-family home sold through a listing agent: the seller owes a material-facts disclosure (licensee involved); must provide the radon disclosure with the statutory statement before signing (post-August 2025); and must complete the federal lead-based paint disclosure with the EPA pamphlet and 10-day inspection window (pre-1978). Each requirement comes from a different source — state material-fact duty, the 2025 ND radon statute, and federal lead law — but all three apply to that one transaction.
| Disclosure | Source | Trigger |
|---|---|---|
| Material facts | ND license law | Licensee in a 1–4 unit residential sale |
| Radon | NDCC 47-10-02.2 (8/1/2025) | Residential transfer |
| Lead-based paint | Federal (1992 Act) | Home built before 1978 |
Exam tip: Don't pick just one. When a fact pattern mentions a pre-1978 home sold with an agent after mid-2025, all three disclosures are in play.
When is written property disclosure required in North Dakota?
What new disclosure requirement takes effect on August 1, 2025 in North Dakota?
Which disclosure is required by FEDERAL law for pre-1978 homes?