Closing costs in North Dakota: what buyers and sellers pay

Why there is no single “typical” total

Some closing lines come from government: recording fees (set by statute) and property tax prorations (set by the tax bill). Others come from private companies and vary: lender charges, title insurance and escrow, inspections and brokerage compensation. Your total depends mostly on your loan, your purchase agreement and your closing date.

Two federal forms show the variable pieces. The lender must give you a Loan Estimate within three business days of receiving your application, on a standard form every lender uses. You must get the Closing Disclosure at least three business days before you close (Consumer Financial Protection Bureau). For a walk-through of each line, see closing costs explained.

Line by line

Lender charges. Origination, appraisal, credit report and underwriting fees are set by the lender and its vendors. Compare them on the Loan Estimate. See also home appraisal cost.

Title insurance. The North Dakota Insurance Department describes two policies: the lender’s policy, which nearly all lenders require for the loan amount and which protects only the lender, and the owner’s policy, which protects you. Either seller or buyer may buy the owner’s policy, and “the party paying for the owner’s policy can be negotiated.” The Department adds that you are not obliged to use the title company your lender suggests, that premiums are normally a one-time payment at closing, and that discounts may apply when both policies come from the same company. It also says to ask which services, such as search, examination or closing, are in the premium and which are charged separately. The Department publishes no premium table on that page, so get quotes. See title insurance explained.

Closing or escrow services. The Department notes that title agents may hold money in escrow and perform closing services for an additional fee. The Department’s page gives no amount for it.

Recording fees. Under § 11-18-05, a deed, mortgage or similar title document costs $20 for one to six pages, or $65 for more than six pages plus $3 for each page after the first 25. A document without the one-inch margins required for recording labels pays $10 extra. See North Dakota transfer tax and recording.

Transfer tax. None. The buyer must still certify the full sale price on the deed (§ 11-18-02.2).

Property tax proration. Property tax is due January 1 of the year after the levy year, with a first installment payable by March 1 and a second by October 15 (§ 57-20-01). At closing the tax for the current year is usually split between buyer and seller. Where the owner holds the Primary Residence Credit, the statute says the proration must use the tax owed after the credit (§ 57-02-08.9). See North Dakota property tax and escrow accounts.

Survey and inspection. Not regulated by a fee table. See what a land survey costs and home inspection cost.

Brokerage compensation. Negotiated; see real estate commission.

Who pays what

North Dakota law, as read here, does not assign most closing costs. The purchase agreement decides, and federal rules require the lender’s costs to appear on your Loan Estimate. The Insurance Department confirms that the owner’s title policy payer is negotiable, and says that in many areas sellers pay for it.

Worked example: recording in Fargo

This is an example, not a quote. A buyer records a 4-page deed and an 8-page mortgage (page counts assumed).