North Dakota guide

North Dakota Has No Real Estate Transfer Tax: Closing Cost Implications

North Dakota does not charge a real estate transfer tax, so you skip a fee that most other states tack onto closing.

Reading as buyer.

TL;DR

North Dakota does not charge a real estate transfer tax, so you skip a fee that most other states tack onto closing. On a typical home purchase, this can save hundreds to thousands of dollars compared to states like Minnesota or California. You will still pay county recording fees for your deed, but those are flat per-page charges, not a percentage of the sale price.

Before you start — 7 things to know

  • North Dakota has no real estate transfer tax at the state, county, or city level, so there is no extra closing line item tied to the purchase price.

  • Recording fees in North Dakota are set per page by the county recorder, not as a percentage of the home price, so a buyer can predict them ahead of closing.

  • A buyer moving from Minnesota would have paid a 0.33% state deed tax there plus metro surcharges, and North Dakota skips that charge entirely.

  • On a $350,000 North Dakota home, skipping a 0.5% transfer tax keeps about $1,750 in the buyer's pocket compared to many other states.

  • A buyer should ask the closing agent for an itemized estimate so the absence of a transfer tax line is clear, since some out-of-state templates may include a placeholder line.

  • The lack of transfer tax does not change other buyer closing costs such as title insurance, lender fees, or prepaid escrow, so a buyer should budget those separately.

  • Local custom in North Dakota typically splits recording costs by document, with the buyer paying to record the new deed and mortgage and the seller paying to record lien releases.

The timeline — step by step

  1. When the buyer makes an offer, the buyer's agent provides a closing cost estimate that lists county recording fees but no North Dakota transfer tax line.

  2. Within three business days after the offer is accepted, the lender sends the buyer a Loan Estimate that shows recording charges but no state transfer tax.

  3. About a week before closing, the closing agent prepares a settlement statement, and the buyer should confirm there is no transfer tax line item for the North Dakota property.

  4. At closing, the buyer pays the county recording fees for the deed and the new mortgage, calculated per page on the schedule set by the county recorder.

  5. After closing, the county recorder files the buyer's deed within a few business days, and the buyer receives a recorded copy by mail or electronic delivery.

Common questions

Does North Dakota charge a transfer tax when I buy a home?
No, North Dakota does not have a state, county, or city real estate transfer tax, so this line does not appear on the buyer's closing statement.
What closing costs are tied to the deed in North Dakota if there is no transfer tax?
The buyer pays a recording fee to the county recorder based on a flat per-page schedule, which is typically much smaller than a percentage-based transfer tax.
How much could a buyer save compared to other states?
On a $350,000 purchase, skipping a 0.5% transfer tax saves about $1,750, and states like Minnesota, New York, and California charge similar or higher rates that North Dakota buyers avoid.
Do I still need title insurance and lender fees at closing in North Dakota?
Yes, the lack of transfer tax does not change other standard buyer closing costs such as title insurance premiums, lender origination fees, and prepaid property taxes.
Who pays the recording fees on a North Dakota purchase?
Local custom usually has each party pay for the documents they file, so the buyer pays for the new deed and the new mortgage to be recorded with the county.

Glossary

1 term
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

  1. [1]
  2. [2]

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