Closing Costs in North Dakota
The average closing cost in North Dakota is $12,307, which is 4.25% of the home price. North Dakota has no transfer tax, which saves buyers money.
North Dakota's closing costs are among the lowest in the nation, driven by the absence of a state transfer tax and generally affordable home prices. The state does not require an attorney at closing, and title company fees are competitive. Overall closing costs typically run 2-3% of the purchase price, with the primary costs being title insurance, lender origination, and prepaids.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$12,307
As % of Price
4.25%
Transfer Tax
None
Attorney Required
Yes
Closing Cost Breakdown for a $289,622 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $2,317 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $1,448 |
| Transfer Tax | N/A |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (required) | $1,200 |
| Prepaid Property Tax (2 months) | $454 |
| Prepaid Homeowners Insurance (1 year) | $869 |
| Prepaid Interest (15 days) | $619 |
| Estimated Total | $8,357 |
* Estimates based on average North Dakota home price of $289,622 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in North Dakota
No Transfer Tax Savings
North Dakota charges no state or local transfer tax on real estate transactions. Combined with the state's affordable home prices, this results in some of the lowest total closing costs in the country.
Use NDHFA FirstHome Program
The North Dakota Housing Finance Agency offers the FirstHome program with competitive rates and the Start program providing down payment and closing cost assistance as a second mortgage. DCA grants of up to $5,000 are available for qualifying buyers.
Check Oil and Mineral Rights
In western North Dakota, mineral rights may have been severed from surface rights decades ago. This means you could own the land but not what's beneath it. Verify mineral rights status in the title search, especially in oil-producing counties where this can significantly affect property value.
Budget for Heating Costs
North Dakota's severe winters mean heating costs of $2,000-4,000+ annually. Have the heating system professionally inspected and check the home's insulation, windows, and weatherization before purchasing. Upgrading from older systems can save $500-1,000 per year.
Legal Context for North Dakota Closings
Conveyance Document
Warranty deed
Security Instrument
Mortgage; deed of trust sometimes used
Foreclosure Process
Judicial
Attorney Required
Yes
North Dakota uses warranty deed for property transfers and mortgage; deed of trust sometimes used as the security instrument. An attorney is required at closing, which adds to your closing costs.
