North Dakota · owner financing
North Dakota owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in North Dakota — statute, recording, default remedies, interest caps, and where deals actually happen.
N.D. Cent. Code § 32-18-01 et seq. (cancellation of contracts for deed); § 47-19 (recording)
Recording with county Recorder permitted under N.D. Cent. Code § 47-19-01 et seq.; not strictly mandated but unrecorded contracts subordinate to BFPs. Recording fees per § 11-18-05.
Statutory cancellation under N.D. Cent. Code Ch. 32-18 with 30-day notice for residential and 6-month period when buyer has paid certain percentages; alternatively foreclosure under standard mortgage procedures (N.D. Cent. Code Ch. 32-19).
Is owner financing legal in North Dakota?
North Dakota strongly recognizes 'contracts for deed' with a statutory cancellation framework.
How do you record a owner financing agreement in North Dakota?
Recording with county Recorder permitted under N.D. Cent. Code § 47-19-01 et seq.; not strictly mandated but unrecorded contracts subordinate to BFPs. Recording fees per § 11-18-05.
What happens if the buyer defaults?
Statutory cancellation under N.D. Cent. Code Ch. 32-18 with 30-day notice for residential and 6-month period when buyer has paid certain percentages; alternatively foreclosure under standard mortgage procedures (N.D. Cent. Code Ch. 32-19).
What is the maximum interest rate?
6% if no written agreement; written contracts up to 5.5% above the average Treasury bill rate (N.D. Cent. Code § 47-14-09); various exemptions.
What disclosures are required?
No statutory residential property condition disclosure (largely caveat emptor); lead-based paint (federal).
Who's protected — buyer vs. seller
Buyer protections
Statutory cancellation notice and cure period; redemption rights if foreclosure pursued; equitable interest recognized.
Seller protections
Streamlined statutory cancellation; quick recovery; retention of payments as liquidated damages.
Where in the state do these deals happen?
Farmland and ranchland transfers; rural residential; occasional oil-patch property in the Bakken region.
Notable case law
Pinske v. Allen, 2010 ND 83; Ellingsen v. Investors Realty, 463 N.W.2d 654 (N.D. 1990).
Looking at a North Dakota deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. North Dakota contracts and remedies are fact-specific — consult a licensed North Dakota real-estate attorney before signing anything.