No net loss sale procedure.

85-04-08-03. No net loss sale procedure. 1. The department may recommend a tract of land that meets the criteria of section 85-04-08-02 to the commissioner for consideration for a no net loss sale. 2. If the commissioner determines to proceed with the sale, the commissioner shall present to the board the proposed no net loss land sale for preliminary review. Upon a determination the board is willing to sell, the department shall: a. Notify the lessee if the lands are leased. 2 b. Publish a notice of sale, that includes a request for bidders, in accordance with the procedures set out in North Dakota Century Code chapter 15-06. The notice of sale must contain: (1) The legal description of the proposed trust land tract to be sold; (2) Instructions on how to register to bid; and (3) Deadline for bidders to register. c. Obtain all appraisals from a certified appraiser for tracts to be sold and for lands provided for consideration, as follows: (1) Appraisals must be obtained in accordance with the procedures set out in North Dakota Century Code sections 15-06-22 and 15-06-23. (2) Appraisals for trust lands and the proposed no net loss sale land must be appraised by the same certified appraiser. (3) If the commissioner is not satisfied with the appraisals, the commissioner may require additional appraisals by alternative certified appraisers. d. Solicit public comment regarding the proposed sale. All comments must be in writing and include the following: (1) Name and address of the interested person; (2) The legal description of the proposed tract for sale as shown on the published notice; and (3) A detailed statement as to whether the interested person supports or opposes the sale. 3. a. To register, bidders shall provide the following: (1) A nonrefundable application fee; and (2) A legal description of the lands to be provided for consideration. b. Bidders shall agree to an offer to purchase that contains the following: (1) Bidder is subject to all costs associated to the bidder review and sale process, including: (a) Appraisal costs; (b) Title examination; and (c) Legal survey, if deemed necessary by the commissioner. (2) Bidder agrees to allow the department and its agents access to the lands offered for consideration or shall obtain access on department's behalf. c. The department shall review the lands proposed by each potential bidder to determine if they meet the criteria under section 85-04-07-02. 4. The board shall review all approved registered bidders, including appraisals, land offered as consideration, any public comments, other relevant information including title examinations, and determine whether to proceed with the sale. If the board decides to proceed with the sale, 3 the board shall establish a minimum acceptable sale price and the following shall be conducted: a. If the land is leased, the commissioner shall notify the lessee of the intent to sell the property. b. The commissioner shall conduct an auction pursuant to North Dakota Century Code chapter 15-07. c. A purchase agreement must be executed with the winning bidder at the closing of the sale. The purchase agreement must require that the purchaser: (1) Pay twenty percent of the purchase price at the time the purchase agreement is executed; and (2) Convey the land used as consideration within sixty calendar days after execution of the agreement. The commissioner may extend the deadline to convey, at the commissioner's sole discretion, up to a maximum of one hundred eighty days after execution of the purchase agreement. d. If no bids are received at auction, the tract may be sold for the board-established minimum acceptable sale price to the first interested party at a private sale during the six months following the date of the auction. 5. Acquired lands acquired after January 1, 2020, may be sold to any mortgagor or a member of the mortgagor's immediate family under North Dakota Century Code section 15-07-10. The sale must be for cash only with twenty percent payment of the purchase price on the day of the sale, which may include earnest money paid, and the balance due within sixty calendar days. The balance due date may be extended at the commissioner's discretion, up to a maximum of one hundred eighty days from the date of the sale. Interest must be charged on any remaining balance, beginning sixty days after the date of sale, at the Bank of North Dakota base rate plus one percent. History: Effective January 1, 2021; amended effective April 1, 2026. General Authority: N.D. Constitution article IX, § 6; NDCC 15-01-02, 28-32-02 Law Implemented: NDCC 15-07, 15-08