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North Dakota Laws to Know Before Investing In Rental Real Estate

Landlord-Tenant Law Book on a Desk with a GavelOnce most beginning West Fargo investors seriously consider taking a single-family rental property, what typically comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not actually be aware of is that there are also astonishingly several laws and legal matters that relate to buying and leasing rental homes.

Though a handful of federal laws can definitely be applied to rental properties nationwide, a great number of the laws that you should be informed about are those on the books of your state, county, or even city. Due to this, it is salient to do your research and actually get a clear perception of these laws before you spend on an investment property.

Real Estate Agency and Licensing Law

One of the pertinent people on your investing team is your real estate agent. The laws that govern the relationship between an agent and their clients differ from state to state. As an investor, it’s important to take into consideration what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.

In the same vein, acknowledge that real estate agents may or may not be appraised of property management laws. You should additionally have a detailed knowledge of the procedures required by North Dakota for accomplishing and keeping a real estate license and always make certain to check out that your agent’s license is current and in good standing.

Transfers of Ownership

Another state-specific set of laws you should learn more about are those actively involved in voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that transpire when a rental property is taken and purchased. Though, there are a handful of differences among state laws with respect to who will handle the transfer (your real estate agent or an attorney, for example), whether title insurance is required, who pays which closing costs, and who owns the property on the day of closing.

But still, you should similarly learn your state laws about involuntary ownership transfers. These transfers, again and again, happen when the heirs of a deceased property owner inherit the property. Ascertaining these laws can help you plan and iron out everything as well as make the process far easier whether you inherit property or leave your property to someone else.

Limitations on Use

In quite a lot of states, local regulations will guide how a property owner may use their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may utilize their land or structures.

As an investor, it’s pivotal to be aware of any local ordinances that may butt in with your chance to renovate or lease the property you like to buy. You should additionally watch if any occupancy laws impact your plans to put into service the property as a rental.

Fair Housing and Others

There are federal, state, and even countless local laws intended to protect tenants’ rights and prevent discrimination. So while comprehending your federal tenants’ rights laws is important, you have to discover whether your state has supplemented those laws with stricter versions of their own. You should, aside from that, check seriously for any rent control policies that may apply, both current and those highly probable to be enacted right away.

Comprehending your local Landlord/Tenant laws and habitability standards will help to always make sure you manage your investment property the accurate way. Tenants’ rights laws can cover an inconceivable assortment of things, from security requirements to frequency and notification about rent increases.


Learning all of the substantial laws in North Dakota can be a lot of work, so in light of this, it stands to reason why several rental property investors decide to hire West Fargo property management experts instead. At Real Property Management Optimum, we comprehend all the ins and outs of state and federal laws and can always see to it that your investment properties are leased and managed in accordance with those laws. Call today at 320-289-4649.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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