North Dakota Condo Act vs HOA Act: Which Law Governs Your Community

North Dakota Condo Act vs HOA Act: Which Law Governs Your Community

North Dakota does not have a separate condominium act or homeowners association act. Unlike states that enacted detailed statutory frameworks for community associations in the 1980s and 1990s, North Dakota relies on common law property principles, nonprofit corporation statutes, and the specific language in your governing documents to define how your association operates. The North Dakota Attorney General's office and state courts provide oversight when disputes arise, but no dedicated statutory chapter controls budget timelines, meeting procedures, or enforcement authority for condos or HOAs.

Why North Dakota Has No Dedicated Community Association Statute

North Dakota's population of approximately 780,000 residents is concentrated in Fargo, Bismarck, Grand Forks, and Minot. The state experienced rapid housing development during the oil boom years between 2010 and 2014, when thousands of workers moved to western North Dakota counties like Williams and McKenzie. New apartment complexes and workforce housing developments were built quickly, but most of these projects were rental properties rather than condominiums or traditional planned developments with homeowner associations.

When your community was created, the developer recorded a declaration of covenants, conditions, and restrictions with the county recorder. That declaration establishes whether your community is structured as a condominium, a planned unit development, or a homeowners association. The declaration also specifies whether your association is incorporated as a nonprofit corporation under North Dakota Century Code Title 10, Chapter 10-33, which governs nonprofit corporations generally.

How to Determine Which Framework Applies to Your Community

Pull your declaration and articles of incorporation. Look for the legal description of the property and the definition of units or lots. A condominium declaration typically describes individual units by number and defines common elements as jointly owned by all unit owners. A homeowners association declaration describes individual lots by metes and bounds or plat reference and defines common areas as owned by the association itself or held in trust for members.

If your declaration uses the word condominium and describes units as separate parcels of real property with undivided interests in common elements, your community operates as a condominium. If your declaration describes lots as separate parcels with easements over common areas or streets, your community operates as a homeowners association. The distinction matters because it determines how ownership is recorded, how liens attach, and how assessments are enforced.

A concrete example: the Gateway Townhomes Association in Fargo was created in 2008 as a planned unit development with 42 single family attached homes. The original declaration defined each home as a separate lot and granted easements over the private streets and common park areas. In 2019, the board attempted to foreclose on a delinquent owner using a condominium lien statute from Minnesota, which does not apply in North Dakota. The foreclosure was dismissed, and the association had to restart the process using North Dakota's general mechanic's lien procedure under North Dakota Century Code Title 35, Chapter 35-27. The delay cost the association six months and over eight thousand dollars in legal fees.

What North Dakota Common Law Requires

Even without a dedicated statute, your board owes fiduciary duties to the membership. North Dakota courts have held that association boards must act in good faith, avoid conflicts of interest, and exercise reasonable care in managing association funds. These duties flow from common law agency principles and from the nonprofit corporation statute if your association is incorporated.

Your board must follow the procedures in your bylaws for calling meetings, noticing members, and conducting votes. If your bylaws require 15 days' written notice of a special assessment vote, you must provide exactly that. North Dakota courts will enforce the specific terms of your governing documents unless those terms violate public policy or constitutional rights.

Your declaration and bylaws also control your assessment collection powers. If your declaration includes a lien provision, you can record a lien against a delinquent owner's property. If your declaration does not include a lien provision, you must sue for breach of contract and obtain a judgment before you can enforce collection.

The Role of North Dakota Nonprofit Corporation Law

Most North Dakota associations are incorporated as nonprofit corporations under Title 10, Chapter 10-33. This chapter requires your association to maintain a registered agent, file an annual report with the North Dakota Secretary of State, and hold at least one annual meeting of members. Chapter 10-33 also establishes voting rules, quorum thresholds, and procedures for amending your articles of incorporation.

If your association is incorporated, your board members are directors under the nonprofit statute. Directors have authority to manage the association's affairs between member meetings, but they cannot amend the governing documents without member approval unless the declaration or bylaws grant that power. Check your bylaws to confirm what percentage of members must vote to approve an amendment.

If your association is unincorporated, you operate as a voluntary association under North Dakota common law. Unincorporated associations have more limited powers and face greater personal liability risks for board members. Most attorneys recommend incorporation for any association with more than ten units or lots.

The Attorney General's Oversight Role

The North Dakota Attorney General's office does not regulate community associations directly, but it does enforce consumer protection laws and can investigate complaints about fraud or misrepresentation. If a board member diverts association funds for personal use, the Attorney General can bring criminal charges. If a developer fails to disclose defects in common elements before closing sales, the Attorney General can pursue civil penalties under North Dakota's consumer fraud statute.

Unit owners and lot owners also have the right to file civil lawsuits against the association or individual board members. North Dakota courts have jurisdiction over disputes involving governing document interpretation, assessment collection, and board election challenges. Litigation is expensive, so your first step should always be to attempt mediation or negotiation before filing a complaint.

What Happens When Your Documents Are Silent

If your declaration and bylaws do not address a specific issue, North Dakota courts will apply common law property principles and the nonprofit corporation statute. For example, if your bylaws do not specify how many days' notice are required for a special meeting, a court would likely apply the 10 day notice requirement from Chapter 10-33 as a default rule.

If your declaration does not specify whether the board or the members must approve the annual budget, a court would likely hold that the board has authority to adopt the budget unless the governing documents require member approval. This rule flows from the principle that boards are elected to manage daily operations and members retain authority only over major decisions like amendments and special assessments.

What You Should Do Now

Locate your declaration, articles of incorporation, and bylaws. Read each document carefully to identify which terms define your community structure, how ownership is described, and what powers the board and members each hold. Create a checklist of every deadline, notice requirement, and approval threshold in your documents.

If your documents are ambiguous or contradict each other, consult your attorney for your specific situation. An attorney can review your documents, research relevant North Dakota case law, and advise you on how courts would interpret unclear provisions.

Document your board's compliance with governing document procedures. Maintain minutes of every board meeting and member meeting. Record the date and method of every notice sent to members. Store financial records, contracts, and correspondence in an organized system that you can access quickly if a dispute arises.

How Manorway Supports North Dakota Associations

Manorway's AI assisted platform helps you track governing document deadlines, store your declaration and bylaws, and maintain a complete audit trail of board actions. When you upload your governing documents, Manorway extracts key dates and requirements and reminds you when deadlines approach. You can record meeting minutes, share financial reports, and communicate with members through a single platform that keeps every document secure and searchable.

Because North Dakota law does not provide a detailed statutory framework for associations, your governing documents are the primary source of authority. Manorway helps you stay compliant by organizing those documents and making it easy to reference specific provisions when questions arise. When your board uses an AI assisted platform to manage documents and track procedures, you reduce the risk of missing deadlines and create a record that protects the board in disputes.