# Title 32 — Judicial Remedies

## Chapter 32-18 — Cancellation of Land Contracts

### § 32-18-01. Instruments for future conveyance - Cancellation - Owner must give written

notice to vendee or purchaser.
No owner of real estate, or owner of any equity therein, who shall make or execute a
contract for deed, bond for deed, or other instrument for the future conveyance of any such real
estate or equity therein, shall have the right to declare a cancellation, termination, or forfeiture
thereof or thereunder, except upon written notice to the vendee or purchaser, or the vendee's or
purchaser's assigns, as provided in this chapter, and such notice shall be given to such vendee
or purchaser or such vendee's or purchaser's assigns, notwithstanding any provision or
condition in any such instrument to the contrary.
### § 32-18-02. Default - Contents of notice.

Whenever any default shall have been made in the terms or conditions of any such
instrument for future conveyance of real estate or equity therein, and the owner or vendor shall
desire to cancel or terminate the same, the owner or vendor, within a reasonable time after such
default, shall cause a written notice to be served upon the vendee or purchaser, or the vendee's
or purchaser's assigns, stating that such default occurred and that said contract will be canceled
or terminated, and the time when said cancellation or termination shall take effect, which shall
be as provided in section 32-18-04.
### § 32-18-03. Notice of default - How served.

Notice of cancellation shall be served upon the vendee or purchaser, or the vendee's or
purchaser's assigns, in the manner provided for the service of a summons in the district court of
this state, if the person to be served resides within the state. If such vendee or purchaser, or
such vendee's or purchaser's assigns, as the case may be, resides without the state or cannot
be found therein, of which fact the return of the sheriff of the county in which said real estate is
situated that such person cannot be found in the sheriff's county shall be prima facie evidence,
then such notice shall be served by the publication thereof in a legal newspaper within said
county, or, if there is no legal newspaper within said county, then in a newspaper published in an
adjoining county and having a general circulation in the county, once each week for three
successive weeks.
### § 32-18-04. Time allowed to correct default.

The vendee or purchaser, or the vendee's or purchaser's assigns, shall have the following
periods of time after the service of notice of cancellation upon such party in which to perform the
conditions or comply with the provisions upon which the default shall have occurred:
1. If the amount claimed due under such instrument at the date of notice is more than
sixty-six and two-thirds percent of the original indebtedness, the time allowed to
correct the default shall be six months.
2. In any other case, the time for correction shall be one year.
Upon such performance and upon making such payments, together with the cost of service of
such notice, such contract or other instrument shall be reinstated and shall remain in full force
and effect as if no default had occurred therein. If, however, such vendee or purchaser, or such
vendee's or purchaser's assigns, shall not complete such performance or make such payment
within the time periods provided by this section, the contract shall be terminated and shall not be
reinstated by any subsequent offer of performance, or tender of payment. No provisions in any
contract for the purchase of land or an interest in land shall be construed to obviate the
necessity of giving the aforesaid notice and no contract shall terminate unless such notice is
given, any provision in such contract to the contrary notwithstanding, but the notice herein
required shall not be deemed necessary if the contract in question is sought to be terminated by
an action at law or in equity brought for that purpose upon failure to perform. This section shall
apply to all instruments for a future conveyance of real estate or an equity therein which are

executed on or after July 1, 1971. The time allowed to correct the default shall not be less than
one year except in contracts involving an area not to exceed three acres.
### § 32-18-05. Notice of cancellation to be recorded.

In all cases of cancellation by notice of any contract for deed which has been recorded in
the office of the recorder, the following documents shall also be recorded in that office: a copy of
the notice of cancellation served upon the vendee, together with an affidavit of service and an
affidavit of the vendor or the vendor's assigns that the default of the vendee under the terms of
the contract was not cured, after the date of service of such notice, within the time periods
provided in section 32-18-04.
### § 32-18-06. Counterclaim - Injunction against canceling contract.

When it shall be made to appear by affidavit of the vendee or purchaser, or the vendee's or
purchaser's assigns, agent, or attorney, to the satisfaction of a judge of the district court of the
county where the property is situated, that the vendee or purchaser, or the vendee's or
purchaser's assigns, has a legal counterclaim or any other valid defense against the collection
of the whole or any part of the amount claimed to be due on such contract, such judge, by an
order to that effect, may enjoin the vendor or the vendor's successor in interest from the
cancellation of such contract by notice and may direct that all further proceedings for the
cancellation be had in the district court properly having jurisdiction of the subject matter, and, for
the purpose of carrying out the provisions thereof, service may be made upon the vendor or the
vendor's assigns or upon the vendor's attorney or agent.
