The Montana Home-Buying Process: Your Step-by-Step Checklist

With your agent, look at what similar homes have sold for in the same neighborhood in the last 90 days. Decide on your offer price, the closing date you want, how much earnest money you'll put down, and which contingencies you need (inspection, financing, appraisal). Going in with a clear top number keeps you from overpaying in a back-and-forth.

Cost: $0

Montana residential offers are typically written on the Montana Association of REALTORS Buy-Sell Agreement, the standard form for the state. It has specific fields for things you won't see on a generic contract — including whether appurtenant water rights, mineral rights, and any agricultural leases convey with the property. Read these fields carefully with your agent before signing because anything left off the form will not transfer.

Cost: $0

Since the 2024 NAR settlement, your agent's compensation can no longer be listed in the MLS as a structured field. Instead it has to be negotiated separately — usually as a seller concession written into the Buy-Sell Agreement, or directly between brokers. Confirm before you sign whether the seller is covering all, part, or none of your agent's fee, so there are no surprises at closing.

Cost: Depends on what the seller agrees to pay

Earnest money is a deposit that shows the seller you're serious. It's typically 1-3% of the purchase price and is held in a brokerage trust account (not the seller's account) until closing, when it gets credited to your purchase. If the deal closes you get the money back as part of your down payment; if you back out for a reason that isn't covered by your contingencies, you could lose it.

Cost: 1-3% of purchase price typical

Under Montana rules, your earnest money must be deposited into a separate broker trust account no later than the third business day after the broker receives it. Ask your agent for written confirmation of the deposit. Earnest money sitting in someone's personal or operating account is a red flag and a violation of state rules.

Cost: $0

Montana follows a 'first in time, first in right' rule for water — water rights are separate from the land and only transfer if they're explicitly listed in the deed. If the property has a well, irrigation, stock water, or any other water use, ask the seller for documentation from the Department of Natural Resources and Conservation showing which rights exist and confirm those exact rights are written into your Buy-Sell Agreement. Assuming water 'comes with the land' the way it does in other states can leave you without the right to use it.

Cost: $0

In Montana, oil, gas, coal, and other mineral rights are often owned separately from the surface — this is especially common in eastern Montana counties like Richland, Roosevelt, and Sheridan. If a third party owns the minerals beneath your land, they can have the legal right to enter the surface to extract them. Ask the title company for a mineral rights search and confirm in your Buy-Sell Agreement whether minerals are included or excluded.

Cost: Usually included in title commitment fee

Montana doesn't have a single state-mandated property condition form, but the seller and their agent must disclose every material fact they actually know about the property under state license law. Read each disclosure line by line — flood history, prior damage, known structural issues, methamphetamine contamination, conservation easements, and anything else flagged. If something looks vague, ask in writing for a clearer answer before your contingency deadline.

Cost: $0

If you're buying a condo or a home in a homeowner association, Montana law requires the seller to give you the declaration, bylaws, rules and regulations, and a certificate from the association showing monthly dues, any special assessments, the reserve fund balance, and any pending lawsuits or violations. You have a right to back out within a review period after receiving the full packet. Read carefully — surprise assessments and lawsuits are common deal-breakers.

Cost: Usually paid by seller

Hire a licensed home inspector to physically check the roof, foundation, framing, plumbing, electrical, HVAC, and major appliances. You'll get a written report with photos within a few days, usually 30-50 pages long. Attend the inspection in person if you can — the inspector can show you things on site that don't translate well in a report.

Cost: $400-700 typical

Many homes outside Montana city limits use a private well for water and a septic system for waste. Test the well for flow rate and water quality (bacteria, nitrates, arsenic — arsenic is common in some Montana groundwater) and have the septic system inspected and pumped. These systems are expensive to fix or replace, so finding problems now is much better than after closing.

Cost: $300-700 typical for both

Montana law requires sellers who know a property was used as a meth lab or for meth storage to disclose it, whether or not it has been cleaned up. If anything in the home's history feels off (a price that seems too low, vague answers from the seller, certain neighborhoods), a few hundred dollars for a swab test is worth it. A contaminated property has to be professionally remediated before it can be legally lived in.

Cost: $100-300 typical

Look up the property's address on the FEMA Flood Map Service Center to see if it's in a Special Flood Hazard Area — if it is, your lender will require flood insurance and it can run over a thousand dollars a year. Also check the local wildfire risk if the property is in or near the Wildland-Urban Interface (Flathead, Missoula, Ravalli, Gallatin, and Jefferson counties have heavy exposure) because some insurers won't write standard policies in high-risk areas.

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Once you have all the inspection reports, decide which issues you want addressed. Three common ways to handle problems: ask the seller to fix them before closing, ask for a credit at closing so you can fix them yourself, or ask for a price reduction. Anything you negotiate should be put in writing as a contract amendment — verbal promises don't hold up.

Cost: $0 to negotiate

Your lender orders an independent appraisal to confirm the home is worth what you agreed to pay. You'll pay for it (the cost shows up on your loan documents) but you'll get a copy of the report. If the appraisal comes in below your contract price, you have options: ask the seller to drop the price, bring extra cash to cover the gap, or back out using your appraisal contingency.

Cost: $500-800 typical

Your lender will require proof of homeowner's insurance before closing. Get quotes from 2-3 insurers and ask specifically about wildfire coverage, flood coverage (separate policy through the National Flood Insurance Program if you're in a flood zone), and replacement-cost coverage for the structure. The insurance has to be in place and paid for the first year before the title company can close.

Cost: $800-2,500/year typical

After the appraisal, your loan goes through 'underwriting' — the lender's final review. Expect last-minute requests for updated pay stubs, a letter explaining a deposit, or an updated bank statement. Send everything within 24 hours. Avoid opening new credit cards, financing furniture, or changing jobs during this period because any of those can blow up your loan approval.

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A day or two before closing, the title company sends you an ALTA settlement statement showing every dollar coming in and going out. Montana doesn't have a state real estate transfer tax, so you won't see that fee — but you will see title insurance, escrow fees, lender fees, prorated property taxes, and your down payment. Compare the final numbers to your original loan estimate and ask about anything that changed.

Cost: $0 to review

Walk through the home within 24-48 hours of closing to confirm the seller has moved out, all agreed-on repairs are done, and the property is in the condition you expect. Test the lights, faucets, appliances, and HVAC. If you find a serious problem now, it is much easier to delay closing than to fight about it after the deed is recorded.

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Wire fraud is a serious risk in real estate — criminals impersonate title companies over email and trick buyers into wiring closing funds to the wrong account. When the title company sends you wire instructions, call the office at a number you find independently (not the one in the email) and read the wiring details back to confirm. Once a wire is sent to a fraudulent account it is almost impossible to recover.

Cost: $0

Montana is a title-company closing state. A licensed escrow officer at a title company runs the closing, prepares the settlement statement, gathers the lender payoff information, and disburses funds. Attorneys can attend if you hire one, but it isn't standard. Expect to sign 30-50 pages including the deed, the mortgage note, the deed of trust, your settlement statement, and various federal disclosures. Read everything; don't be rushed.

Cost: Closing costs typically 2-5% of purchase price

Title insurance protects you if someone later claims they have an ownership interest in your property — a missed heir, a forgotten lien, a recording mistake. Your lender will require a lender's policy that protects them, but they don't have to buy one for you. For a one-time premium at closing, an owner's policy protects you for as long as you own the home. It's optional but strongly worth it.

Cost: $500-2,000 typical one-time premium

Once all the documents are signed and your funds are wired, the title company records the deed at the county clerk and recorder's office — that's the legal moment you become the owner. Get the keys, garage door openers, alarm codes, and any other access items from the seller through your agent. The recorded deed will be mailed to you (or available online) once the county processes it, usually within a few weeks.

Cost: $0