North Dakota process · buyer view

The North Dakota Home-Buying Process: Your Step-by-Step Checklist

This checklist walks first-time buyers through every step of buying a home in North Dakota, from getting pre-approved to signing at closing.

Reading as buyer. Switch to seller

Phase 1 of 7 · typically 2-6 weeks

Pre-Offer

You set up the basics before touring homes: figure out what you can borrow, sign a written agreement with a buyer's agent, and understand how that agent gets paid.

  1. Get pre-approved for a mortgage

    LenderBefore you start touring homes

    Contact 2-3 lenders to compare interest rates, fees, and loan programs. You'll need recent pay stubs, two years of W-2s or tax returns, and two months of bank statements. A pre-approval letter shows sellers you're a serious buyer.

    You'll need

    • Pay stubs (last 30 days)
    • W-2s or tax returns (last 2 years)
    • Bank statements (last 2 months)
    • Government-issued ID

    Cost: $0

  2. Sign a written buyer broker agreement before any showings

    Your agentBefore you tour any home with the agent

    In North Dakota, agents working through an MLS-participating brokerage must have a signed written buyer representation agreement in place before they can tour a home with you. The agreement must spell out a specific compensation amount (a flat fee, percentage, or dollar figure), the term, and the geographic area and property types covered. The agent cannot collect more than the amount written in the agreement.

    You'll need

    • Government-issued ID

    Cost: $0

  3. Receive and review the North Dakota agency disclosure form

    Your agentAt first substantive contact with an agent

    Every North Dakota licensee must give you a written agency disclosure on the NDREC-approved form at first substantive contact. This explains who the agent represents (you, the seller, or both as a dual agent) and what duties they owe. Read it before you discuss price, terms, or your motivations with the agent.

    Cost: $0

  4. Decide whether you'll consent to dual agency

    YouBefore signing the buyer broker agreement

    Dual agency is legal in North Dakota only if both buyer and seller give informed written consent in advance. In dual agency, the agent cannot fully advocate for either side, cannot share one party's confidential motivations with the other, and cannot give negotiation strategy advice. Decide ahead of time whether you'd rather have your own dedicated agent.

    Cost: $0

  5. Set your budget and must-have list

    YouBefore touring homes

    Decide your max purchase price, target monthly payment, preferred neighborhoods, and the features you actually need (bedrooms, garage, school district). Sharing this with your agent up front saves weeks of touring the wrong homes.

    Cost: $0

  6. Tour homes with your agent

    Your agentAfter signing the buyer broker agreement

    Walk through homes that fit your criteria. Take photos, write notes, and ask about anything that looks off — water stains, sloping floors, smells, recent paint patches. Your agent can help you spot issues, but the formal inspection comes later.

    Cost: $0

Phase 2 of 7 · typically 1-7 days

Offer

You write up a formal offer on a North Dakota purchase agreement and negotiate with the seller until both sides sign.

  1. Review the North Dakota purchase agreement before you sign

    Your agentBefore submitting your offer

    North Dakota has no single state-mandated purchase contract. Most agents use forms approved by NDREC or supplied by the local MLS. The contract spells out the price, financing terms, earnest money, contingencies (inspection, financing, title), and closing date. Read every line before you sign — once accepted, you're legally bound to the terms.

    Cost: $0

  2. Decide your earnest money amount

    YouWhen writing your offer

    Earnest money is a good-faith deposit that shows the seller you're serious. In North Dakota, it's typically 1-2% of the purchase price. Once the offer is accepted, the broker must deposit it into a trust account within three business days unless the contract says otherwise. You can lose this deposit if you back out for reasons not protected by a contingency.

    Cost: varies (typically 1-2% of purchase price)

  3. Address buyer-agent compensation in the offer

    Your agentWhen writing your offer

    Since the August 17, 2024 NAR settlement, the MLS can no longer publish what the seller will pay your agent. You'll need to ask whether the seller is offering a concession or commission contribution and put any agreement directly into the purchase contract. If the seller won't cover your agent's fee, that gap may come out of your own pocket at closing.

    Cost: varies

  4. Submit the offer and negotiate any counteroffers

    Your agentWithin hours to a few days of submission

    Your agent presents the signed offer to the listing agent. The seller may accept, reject, or counter. Counteroffers might change the price, closing date, contingencies, or what stays with the home (appliances, fixtures). Stay reachable so you can respond quickly — offers usually have a short expiration window.

    Cost: $0

Phase 3 of 7 · typically 3-7 days

Under Contract

Once both sides sign, the clock starts. You move money into escrow, open title, and formally apply for your loan.

  1. Deliver earnest money to the broker's trust account

    YouWithin 3 business days of acceptance

    In North Dakota, earnest money must be deposited into the supervising broker's dedicated trust account within three business days of offer acceptance unless your contract sets a different deadline. Brokers cannot mix client funds with their own — commingling is grounds for license discipline. Keep your wire confirmation or check copy.

    You'll need

    • Wire instructions or cashier's check

    Cost: varies (your earnest money amount)

  2. Open title and escrow

    Escrow / titleWithin a few days of acceptance

    Your agent sends the signed contract to a title or escrow company, which orders a title commitment to confirm the seller can transfer clean ownership. They'll also coordinate the closing date, hold escrow funds, and prepare the deed for recording.

    You'll need

    • Signed purchase agreement

    Cost: $0 (paid at closing)

  3. Submit your full loan application to the lender

    LenderWithin a few days of acceptance

    Send the executed purchase contract to your lender so they can convert your pre-approval into a full application. They'll re-verify income, assets, and credit, then begin underwriting. Avoid taking on new debt, switching jobs, or making large deposits that aren't documented.

    You'll need

    • Signed purchase agreement
    • Updated pay stubs
    • Updated bank statements

    Cost: varies (application fees)

  4. Request condo or HOA documents if applicable

    Seller's sideRight after going under contract

    If you're buying a condominium in North Dakota, the seller must give you the declaration, bylaws, rules and regulations, most recent financial statements, and any pending or anticipated special assessments before closing. You have a defined window after receiving the complete package to rescind the purchase agreement, so request them right away.

    Cost: $0

Phase 4 of 7 · typically 7-14 days

Inspection & Due Diligence

You hire experts to examine the home and the property's history. North Dakota has unique items to check, including mineral rights, flood zones, and possible meth contamination.

  1. Hire a licensed home inspector

    InspectorWithin the inspection contingency window

    A general home inspection covers structure, roof, plumbing, electrical, HVAC, and visible safety issues. Plan to attend so the inspector can walk you through findings. The written report becomes your basis for repair requests or walking away under your inspection contingency.

    Cost: $400-800 typical

  2. Check the property's flood zone designation

    YouDuring the inspection period

    North Dakota's Red River Valley (Fargo, Grand Forks, and surrounding towns) sits in some of the most flood-prone land in the country. Look up the property on FEMA's Map Service Center to see if it falls in a Special Flood Hazard Area. If it does, your lender will require flood insurance, which can add hundreds to thousands of dollars per year.

    Cost: $0

  3. Find out who owns the mineral rights

    Escrow / titleDuring the inspection period

    Severed mineral estates are the norm in North Dakota — surface ownership and mineral ownership are often held by completely different parties, especially in western counties near the Bakken. If minerals have been severed, you do not own them, and the mineral owner's lessee has a legal right to access the surface for production, subject to surface-damage compensation. Ask the title company to research the mineral chain of title.

    Cost: varies

  4. Ask whether the property has any methamphetamine remediation history

    Your agentDuring the inspection period

    North Dakota law treats a property's history as a confirmed meth lab as a material fact that the seller and agent must disclose if they know about it. A property identified as a meth lab must be tested and remediated by a licensed contractor before reoccupation. Ask the seller and listing agent directly in writing — silence to a direct question can become misrepresentation.

    Cost: $0

  5. Negotiate repairs, credits, or price adjustments

    Your agentBefore the inspection contingency expires

    Use the inspection report to ask the seller to fix major issues, give you a closing-cost credit, or lower the price. The seller can accept, counter, or refuse. If you can't reach agreement and your inspection contingency is still active, you can usually walk away and recover your earnest money.

    You'll need

    • Inspection report

    Cost: $0

Phase 5 of 7 · typically 2-4 weeks

Loan & Appraisal

The lender orders an appraisal to confirm the home is worth the price, then completes underwriting and issues a clear-to-close.

  1. Lender orders the appraisal

    LenderSoon after going under contract

    Your lender hires an independent appraiser to estimate the home's market value. The lender won't loan more than the appraised value, so a low appraisal can force a renegotiation, a larger down payment, or a contract cancellation under your appraisal contingency.

    Cost: $500-700 typical (paid by buyer)

  2. Respond quickly to lender document requests

    YouThroughout underwriting

    Underwriters often request updated bank statements, letters explaining large deposits, gift letters, or proof of insurance. Every day you delay pushes back closing. Reply the same day when possible.

    You'll need

    • Updated pay stubs
    • Updated bank statements
    • Letters of explanation as requested

    Cost: $0

  3. Lock your interest rate

    LenderAfter appraisal, before closing

    Ask your lender when to lock your rate. A rate lock guarantees a quoted rate for a set window (usually 30-60 days). If rates are rising, locking early protects you; if they're falling, you may want to wait. A blown lock can mean a higher monthly payment for the life of the loan.

    Cost: varies

  4. Receive your clear-to-close from the lender

    LenderA few days before closing

    Once underwriting is satisfied, the lender issues a clear-to-close, which lets escrow schedule the signing. Don't open new credit cards, finance furniture, or change jobs between clear-to-close and closing — lenders re-pull credit and verify employment right before funding.

    Cost: $0

Phase 6 of 7 · typically 3-7 days

Pre-Closing

Final paperwork, disclosures, and walkthrough before signing day. Confirm everything in the contract has been satisfied.

  1. Review the seller's property disclosures

    Seller's sideBefore closing

    North Dakota does not have a statute requiring a general residential seller disclosure form, but most sellers complete the NDREC-approved property disclosure in practice. Even without a statute, sellers and their agents are liable under common law fraud for concealing known material defects. Read the disclosure carefully and ask follow-up questions about anything that's vague.

    Cost: $0

  2. Review the federal lead-based paint disclosure (homes built before 1978)

    Seller's sideBefore closing

    Federal law requires sellers of homes built before 1978 to disclose any known lead-based paint or hazards, share any related records, and give you the EPA pamphlet "Protect Your Family From Lead in Your Home." You also have a 10-day window (unless waived in writing) to test for lead before becoming obligated under the contract.

    You'll need

    • EPA lead pamphlet

    Cost: $0

  3. Bind your homeowners insurance

    YouAt least 1-2 weeks before closing

    Your lender requires proof of an active homeowners insurance policy effective on closing day. Get quotes from a few carriers and ask about wind/hail coverage, which matters in North Dakota. If the home is in a FEMA flood zone, you'll also need a separate flood policy.

    You'll need

    • Property address and details

    Cost: $800-2,000/year typical

  4. Do a final walkthrough

    You24-48 hours before closing

    Walk the home within 24-48 hours of closing to confirm it's in the agreed condition, agreed repairs were made, and nothing that was supposed to stay (appliances, fixtures, window coverings) has been removed. Bring your contract and inspection report so you can compare against what was promised.

    You'll need

    • Purchase agreement
    • Inspection report

    Cost: $0

  5. Review your Closing Disclosure

    LenderAt least 3 business days before closing

    Federal law requires the lender to send your Closing Disclosure at least 3 business days before closing. It lists your loan terms, monthly payment, and every fee. Compare it to your Loan Estimate and flag changes immediately. Errors caught here are easy to fix — errors found at the closing table can delay closing.

    You'll need

    • Loan Estimate (for comparison)

    Cost: $0

Phase 7 of 7 · typically 1-3 days

Closing

You sign the loan and ownership documents, wire your funds, and the deed gets recorded with the county. The keys are yours.

  1. Wire your closing funds

    YouDay before or morning of closing

    Escrow will give you a final cash-to-close figure and wire instructions. Always confirm wire instructions by phone using a number you already have on file — wire fraud is one of the biggest risks in real estate. Send the wire from your bank the day before or the morning of closing.

    You'll need

    • Wire instructions (verified by phone)
    • Government-issued ID

    Cost: varies (your down payment + closing costs)

  2. Sign the closing documents

    Escrow / titleOn closing day

    At the closing appointment, you'll sign the promissory note, mortgage or deed of trust, Closing Disclosure, and a stack of affidavits and disclosures. Bring a government-issued photo ID. Read what you sign — escrow can explain any document, but they can't give you legal advice.

    You'll need

    • Government-issued photo ID

    Cost: $0

  3. Pay recording fees (no transfer tax in North Dakota)

    Escrow / titleAt closing

    North Dakota does not charge a state, county, or city real estate transfer tax. The only government fee at closing for transferring the property is the county recorder's per-page recording fee, which is set by a fee schedule rather than a percentage of the sale price. This is one area where North Dakota closings are cheaper than most states.

    Cost: varies (per-page county fee, typically under $100)

  4. Get your keys and confirm the deed is recorded

    Escrow / titleOn closing day

    Once funds are disbursed and the deed is delivered to the county recorder, you officially own the home. You should receive keys, garage remotes, and any access codes the same day. The recorded deed will be returned to you (or to the title company on your behalf) in the weeks after closing — keep it with your important records.

    Cost: $0

Sources

  1. [1] NAR Settlement FAQs — MLS Policy Changes
  2. [2] NDCC 43-23-11.1 — Agency Disclosure and Buyer Representation
  3. [3] NDCC Title 11 — County Recording Fees
  4. [4] FEMA Map Service Center — Flood Insurance Rate Maps
  5. [5] NDCC 43-23-11 — Material Fact Disclosure
  6. [6] NDCC Chapter 23-40 — Methamphetamine Remediation
  7. [7] NDCC 43-23-11 — Licensee Material Fact Disclosure
  8. [8] NDCC Chapter 38-08 — Oil and Gas Production
  9. [9] NDCC Chapter 38-11.1 — Surface Owner Protection Act
  10. [10] NDCC 43-23-11 — Material Fact Disclosure
  11. [11] NDREC Approved Forms — Buyer Representation Agreement
  12. [12] NAR Settlement FAQs — Buyer Agreement Requirements
  13. [13] NDCC 43-23-11.1 — Agency Disclosure and Dual Agency Consent
  14. [14] NDCC Chapter 47-04.1 — Condominium Ownership Act
  15. [15] NDCC 43-23-11 — Licensee Disclosure Duties
  16. [16] NDREC Approved Forms — Seller Property Disclosure
  17. [17] NDCC 43-23-11.1 — Agency Disclosure
  18. [18] NDREC Approved Forms — Agency Disclosure
  19. [19] EPA Lead-Based Paint Disclosure — Real Estate
  20. [20] NDREC Approved Forms
  21. [21] NDCC 43-23-11 — Trust Account and Escrow Requirements
  22. [22] NDREC Administrative Rules — Trust Accounts

Last updated May 15, 2026