North Dakota Closing Costs Guide 2026
Why North Dakota charges no real estate transfer tax or mortgage tax, the statewide recording fees, the full consideration statement on deeds, what the Insurance Department says about title insurance, how the closing process runs, and a fee-by-fee breakdown for North Dakota buyers and sellers.
Buyer Closing Costs in North Dakota
North Dakota buyers pay no real estate transfer tax and no mortgage tax. The county recorder’s fees are fixed in state law. The rest of a buyer’s closing costs are set by the lender, appraiser, title company and closing agent, which is why comparing Loan Estimates line by line matters.
| Cost | Amount | Who Sets It |
|---|---|---|
| Transfer tax | None | N.D. Const. art. X, § 27 |
| Mortgage tax | None | N.D. Const. art. X, § 27 |
| Recording the mortgage, 1–6 pages | $20 | NDCC 11-18-05 — the same in every county |
| Recording the mortgage, more than 6 pages | $65, plus $3 per page after the first 25 | NDCC 11-18-05 |
| Lender origination and underwriting | Set by the lender | Compare on the Loan Estimate |
| Appraisal | Set by the appraiser | Ordered through your lender |
| Title insurance | Set by the title insurer | Lender’s policy nearly always required |
| Prepaid property taxes and insurance | Depends on closing date | Escrow set-up |
North Dakota’s estimated effective property tax rate is 0.99%, so the prepaid tax and escrow reserve lines scale with the price of the home.
North Dakota Seller Closing Costs
Sellers also pay no transfer tax in North Dakota. Their costs are mostly negotiated and provider charges.
| Cost | Amount | Notes |
|---|---|---|
| Transfer tax | None | N.D. Const. art. X, § 27 |
| Recording a mortgage satisfaction or release, 1–6 pages | $20 | NDCC 11-18-05; $65 for more than 6 pages, plus $3 per page after the first 25 |
| Real estate commission | Negotiated | Agreed in the listing agreement |
| Mortgage payoff | Payoff amount | Paid from the sale proceeds |
| Property tax proration | Depends on closing date | Seller covers their share of the year |
North Dakota Has No Real Estate Transfer Tax
Article X, section 27 of the North Dakota Constitution provides that the state and any county, township, city or other political subdivision may not impose any mortgage taxes or any sales or transfer taxes on the mortgage or transfer of real property. Neither buyer nor seller pays a transfer tax at closing.
| Sale Price | Buyer’s Transfer Tax | Seller’s Transfer Tax | Mortgage Tax |
|---|---|---|---|
| $200,000 | $0 | $0 | $0 |
| $300,000 | $0 | $0 | $0 |
| $400,000 | $0 | $0 | $0 |
The full consideration statement
Although there is no tax, NDCC 11-18-02.2 requires a deed to carry a statement of the full consideration paid for the property, unless an exemption applies, and the recorder may not record a deed that does not comply. Exempt transfers include quitclaim deeds, sales between family members or corporate affiliates, estate settlements, foreclosures and tax sales. Willfully falsifying the consideration is a class B misdemeanor.
Title Insurance in North Dakota
According to the North Dakota Insurance Department, nearly all lenders require the buyer to purchase a lender’s title policy for an amount equal to the loan, while either the seller or the buyer may buy the owner’s policy, and who pays for it can be negotiated. Title premiums are usually paid once, at closing.
| Policy Type | Who Pays (Negotiable) | Purpose |
|---|---|---|
| Lender’s policy | Buyer | Protects the lender up to the loan amount until the loan is repaid or refinanced or the home is sold |
| Owner’s policy | Seller or buyer, as negotiated | Protects the buyer for as long as they own the property |
| Search, examination and closing services | Varies | May be charged separately from the premium |
You are not obligated to use the title company suggested to you, and the Department notes that premium discounts may be available when both the owner’s and lender’s policies come from the same company, or when you refinance.
The North Dakota Closing Process
A North Dakota closing ends with the deed and mortgage recorded by the county recorder under the statewide fee schedule, with the deed carrying its full consideration statement.
| Stage | What Happens |
|---|---|
| Offer accepted | Purchase agreement signed; earnest money deposited |
| Loan application | Lender issues a Loan Estimate |
| Title search | Title company examines the chain of ownership and identifies liens or encumbrances |
| Appraisal and underwriting | Value confirmed; conditions cleared |
| Closing Disclosure | Final figures issued before closing |
| Closing and recording | Documents signed, funds disbursed, deed and mortgage recorded |
How to Reduce Your North Dakota Closing Costs
With no transfer tax and fixed recording fees, most of a North Dakota closing is negotiable or shoppable.
- Compare lenders. Origination, underwriting and processing fees vary between lenders, and the Loan Estimate exists so you can put them side by side. This is where working with an experienced Brokered Mortgage Advisor can help you save time and money throughout your transaction, by shopping rates and costs with several different lenders before your loan package is submitted.
- Shop title insurance. The ND Insurance Department says you are free to shop for a title agent or insurer, and to ask about discounts when buying the owner’s and lender’s policies together.
- Ask for seller concessions. Sellers can contribute toward buyer closing costs within your loan program’s limits — VA, for example, caps seller concessions at 4% of reasonable value but does not limit seller credits for closing costs.
- Consider NDHFA assistance. NDHFA’s Start and DCA programs provide 3% of the first mortgage toward the down payment, closing costs and prepaid items.
- Check the page count. A recorded document of more than six pages costs $65 instead of $20.
