Biggest Closing Costs Paid by Sellers in North Dakota
Selling land involves various expenses associated with finalizing the transaction, known as closing costs. These costs are typically shared between the buyer and seller, with some being specifically borne by the seller. In North Dakota, the biggest closing costs usually paid by sellers include:
- Transfer Tax: The transfer tax is a fee imposed by the state of North Dakota on the sale of real estate. The transfer tax rate is a flat 0.25%. For example, if the sale price of your land is $200,000, you would pay a transfer tax of $500.
- Title Insurance: Title insurance protects both the buyer and the seller from financial losses due to title defects, which are errors or problems with the legal ownership of the property. These defects can arise from various sources, such as forged documents, undisclosed heirs, or liens that were not properly recorded. Title insurance for sellers in North Dakota typically costs between $300 and $400.
- Recording Fees: Recording fees are paid to the county clerk’s office for recording documents related to the sale of the property, such as the deed transfer. Recording fees for sellers in North Dakota typically range from $20 to $35.
- Attorney Fees (if using an attorney): While not mandatory, consulting with a real estate attorney is highly recommended for FSBO transactions, especially for complex properties or those with a history of title issues. Attorney fees for sellers in North Dakota typically range from $500 to $1,000.