North Dakota Agency Disclosure and Trust Accounts
North Dakota requires licensees to disclose the agency relationships available to consumers and requires brokers to hold client money in trust. This chapter covers both, as the supervising broker must enforce them.
Agency Disclosure
North Dakota licensees must disclose the available agency relationships to consumers, explaining seller representation, buyer representation, and dual agency, before the consumer relies on the licensee. The disclosure lets the consumer make an informed choice about representation. Providing the disclosure is informational and does not by itself create an agency relationship.
Dual Agency
North Dakota permits dual agency, in which a firm represents both the buyer and the seller in one transaction, only with the informed consent of both parties. A dual agent must not disclose one party's confidential negotiating information to the other. The supervising broker is responsible for ensuring the firm documents consent and manages in-house transactions consistently.
Trust and Escrow Accounts
A North Dakota broker who receives earnest money or other client funds must keep them in a trust account separate from the broker's personal and business operating funds. Commingling or converting client money is prohibited and is a frequent basis for discipline. A salesperson who receives funds must deliver them promptly to the broker, who is responsible for the trust account and its records.