A city that has purchased property or a county that has acquired a tax deed to property under this chapter is deemed to have marketable record title to the property if all of the following apply:
A city or county that is deemed to have marketable record title may convey title free of any claims based on a defect in the process through which the city or county obtained title to the property. If title of the city or county is deemed marketable under this section, a claimant who would be entitled to some claim on the property because of a defect in the process by which the city or county obtained title has instead the right to recover from the city or county the net value of that claim, subject to the statutory restrictions on claims against a city or county. For the purpose of this section, the fact of possession by the city or county may be shown of record by one or more affidavits that contain the legal description of the property and show that the city or county entered into possession of the property and continued possession for three months or longer. The posting on the property of a sign or notice, legible from the street adjacent to the property, stating that the property is owned or for sale by the city or county is an act of possession by the city or county, but is not required.
N.D.C.C. § 57-28-19.1