South Dakota

Closing costs in South Dakota: what buyers and sellers pay

South Dakota's transfer fee is $400 on a $400,000 sale and the seller owes it. A deed or mortgage costs $30 to record in Minnehaha County. Line by line.

In short

No official source gives a “typical” South Dakota closing-cost percentage, so add the costs line by line. The state transfer fee is $0.50 per $500 of value (SDCL 43-4-21), or $400 on a $400,000 sale, and the statute makes the seller pay it. Minnehaha County charges $30 to record a deed and $30 to record a mortgage (county schedule, October 2026).

Why there is no single “typical” total

A few South Dakota closing costs are set by law: the transfer fee and the county recording fees. Most others come from private companies and depend on your loan, your contract and the closing date. These include lender charges, the title insurance premium, inspections and a survey.

Your lender must give you a Loan Estimate within three business days after it receives your application, and you must receive the Closing Disclosure at least three business days before closing (12 CFR 1026.19(e) and (f)). Compare lenders on that standard form. For a general walk-through, see closing costs explained.

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 South Dakota rate table applies. See what an appraisal costs.

Title insurance. South Dakota does not fix one statewide premium. Each insurer must file its manual or schedule of rates with the director of the Division of Insurance, and no change in rates is permitted until a filing is approved (SDCL 58-25-7 and 58-25-9). Because each insurer files its own schedule, ask for a written quote. The article on title insurance explains what the policy covers.

Transfer fee. $0.50 for each $500 of value, or fraction, paid by the grantor, meaning the seller (SDCL 43-4-21). Details and exemptions are in our transfer fee guide.

Recording fees. The register of deeds records the deed and the mortgage. Minnehaha County lists $30 for a deed, $30 for a mortgage and $30 for a satisfaction of mortgage, with $2 more for each page beyond 50 (county fee schedule, October 2026). The deed must also carry a certificate of real estate value stating the actual consideration (SDCL 7-9-7(4)).

Property tax. South Dakota taxes are billed in arrears. Taxes are due January 1 of the year after the assessment, and half is accepted without penalty until April 30 and the other half until October 31 (Minnehaha County Treasurer). Taxes become delinquent on May 1 and November 1, with a 10% annual penalty (same source). How the current year is split between buyer and seller is a matter for the purchase contract. For how the bill is built, see South Dakota property tax.

Owner-occupied certificate. A buyer who will live in the home should check the school-tax classification. If the property is already classified as owner-occupied, the new owner may meet the requirement by filing the certificate of value at the transfer (SDCL 10-13-40). Otherwise the owner files a certificate with the county director of equalization by March 15.

Survey, inspection, attorney. These are set by each provider. See what a land survey costs and what a home inspection costs. Whether you need a lawyer is covered in South Dakota real estate attorneys.

Who pays what?

The transfer fee is the one cost whose payer is set by statute: the grantor, so the seller. The texts reviewed do not assign the other costs. They follow the purchase agreement and the lender’s requirements.

CostWho pays
Transfer feeSeller, by statute (SDCL 43-4-21)
Lender charges, appraisal, credit reportSet by your loan and contract
Title insurance premiumSet by the contract
Recording the deed and the mortgageSet by the contract
Prorated property taxSet by the contract
Real estate commissionNegotiable; see real estate commission

What it costs: a worked example in Sioux Falls

This is an example, not a quote. Assume a $400,000 home and a $320,000 loan. Only the lines fixed by statute or by the county schedule are calculated.

LineRule usedAmount
Transfer fee800 increments of $500 × $0.50 (SDCL 43-4-21)$400
Recording the deedMinnehaha County schedule$30
Recording the mortgageMinnehaha County schedule$30
Recording a satisfaction of the seller’s old mortgageMinnehaha County schedule$30
Title insurance premiumInsurer’s filed ratesGet a written quote
Lender charges, survey, inspectionSet by each providerSee your Loan Estimate
Property tax prorationDepends on the bill and closing dateSee your Closing Disclosure

At a different price, redo the transfer fee: divide the price by $500, round up, and multiply by $0.50. For city context, see the Sioux Falls guide.

Frequently asked questions

What are typical closing costs in South Dakota?

No official source gives a typical percentage, so check your Loan Estimate. The fixed pieces are the transfer fee ($0.50 per $500, paid by the seller) and county recording fees. Lender, title and inspection costs vary.

How much does it cost to record a deed in Minnehaha County?

As of October 2026, the Minnehaha County Register of Deeds charges $30 to record a deed. Documents over 50 pages cost $2 more for each extra page. A mortgage is also $30.

Who pays the title insurance premium in South Dakota?

The texts reviewed set no default. The purchase agreement decides. Each insurer files its own rates with the Division of Insurance, so get written quotes (SDCL 58-25-7).

When do I get my exact closing costs?

The lender must send a Loan Estimate within three business days of your application. You must receive the Closing Disclosure with the final figures at least three business days before closing.

Is there a mortgage tax in South Dakota?

The Minnehaha County schedule shows a $30 flat fee to record a mortgage and no percentage-based mortgage charge. The only value-based charge on the register’s list is the transfer fee on deeds.

Compare with the other states: Closing costs by state.

More South Dakota guides

Sources

South Dakota · All states · Federal guides