Closing costs in Montana: what buyers and sellers pay

Why there is no single “typical” total

A few Montana closing costs follow a rule: county recording fees are set by statute, and title insurance rates must be filed with the insurance commissioner. Most others are set by private providers and vary: lender charges, escrow fees, inspections, surveys and brokerage compensation. Prorated property tax and insurance deposits depend on the house, the closing date and the loan.

Two federal forms show the variable pieces. The lender must give you a Loan Estimate “within three business days of receiving your application,” and you must receive the Closing Disclosure “at least three business days before you close” (Consumer Financial Protection Bureau, CFPB).

Line by line: what each cost is

Lender charges. Origination, appraisal, credit report and underwriting fees are set by the lender and the firms it hires. No Montana table applies. Compare lenders on the standard Loan Estimate. See home appraisal cost and private mortgage insurance for costs that may appear.

Title insurance. I found no single state premium schedule. Each title insurer must file a complete schedule of rates with the insurance commissioner, the rate may not be “excessive, inadequate, or unreasonably discriminatory,” and the insurer may not quote or charge any other rate (MCA 33-25-212). Ask for the insurer’s filed rate for your price. The Montana Commissioner of Securities and Insurance website, which I could not open from this tool, is the place to ask about filings. See title insurance explained.

Escrow and closing services. A title insurer or title insurance producer may act as escrow, settlement or closing agent, and must keep the funds in a separate fiduciary trust account at an insured institution (MCA 33-25-201). The fee for the service is not set in the statute; ask for it in writing.

Recording fees. The county clerk and recorder charges $20 for the first page and $10 for each additional page for documents recorded by a photographic or similar process (MCA 7-4-2632). The deed and the lender’s security instrument are recorded separately. Before the clerk accepts a deed, the parties must complete a realty transfer certificate that states the price (MCA 15-7-305).

Transfer tax. None. See the Montana transfer tax page.

Survey and inspection. Prices are not regulated; see land survey cost and home inspection cost.

Prepaids and prorations. Property taxes are paid in two halves, due November 30 and May 31 (MCA 15-16-102), so a closing in between usually prorates the tax between buyer and seller. If your lender requires reserve deposits, they fund your escrow account. The amount depends on your tax bill; see Montana property tax.

Who pays what in Montana

The statutes I read do not assign closing costs between buyer and seller. The purchase agreement decides, so read the cost clauses before you sign. Brokerage compensation is also a matter of the written agreements; see real estate commission.

One Montana-specific item matters to buyers: the homestead reduced property tax rate. If the home was not already enrolled, the tax for that year is billed at the flat 1.9% rate, and the new owner can claim a refund of the difference between January 1 and May 31 of the next year if the home was a principal residence for at least seven months (Montana Department of Revenue). Budget for that cash timing; see Montana property tax.