Bulletin: ND2011001

Dear Associates:

The state of North Dakota has passed House Bill No. 1421 creating a new chapter 47-34-01 of the North Dakota Century Code requiring closing agents handling real estate transactions in excess of $10,000.00 to disburse from their escrow account only when they are in possession of "good funds".

Under the statute "closing agent" means a person that closes real estate transactions in connection with the purchase, sale or financing of any interest in real estate.  It does not include closings that are conducted in a lender's office by the lender.

Good Funds is defined to be:

a) US currency

b) Wired funds actually received

c) A check for which payment has been received

d) A check not to exceed $3,000.00 drawn on the account of a licensed real estate broker or attorney if the closing agent reasonable believes that the check will be good when disbursements are made

e) A cashier's check not to exceed $10,000.00

f) A check from the escrow account of another closing agent if the closing agent in the current transaction reasonably believes that it will be good when disbursements are made.

NOTE: Certified checks, bank drafts and money orders are not addressed under the statute, nor does it provide any penalties for violation.

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