North Dakota real estate: buy or sell with a local AXEN agent
North Dakota has no transfer tax, makes house sellers put known problems in writing before the deal is final, and gives every homeowner a property tax credit of up to $1,600 a year. Here is what is the same everywhere in North Dakota, and where to search homes.
North Dakota: search homes by city
Tap a city to see the newest homes for sale there.
What every North Dakota buyer and seller should know
Sellers disclose in writing before the deal is final
When an agent is involved in the sale of a home with 1 to 4 units, the seller must fill out the state disclosure form and make it available to you before both sides sign final acceptance of the purchase agreement (NDCC 47-10-02.1). It covers hidden defects, general condition, environmental issues, the structure and the mechanical systems.
For-sale-by-owner sellers disclose too
Even with no agent, the seller of a 1 to 4 unit home must tell you in writing about every problem they know of that could seriously affect how you use and enjoy the home, before final acceptance (NDCC 47-10-02.1).
Some sales skip the disclosure
The rule does not apply to foreclosures, court-ordered sales, estate and trust sales, sales between co-owners or close family, and brand-new homes no one has lived in (NDCC 47-10-02.1). Buying one of these? Your inspection matters even more.
There is no transfer tax
North Dakota does not charge a state transfer tax on home sales. Buyers and sellers pay county recording fees instead, which are small.
The deed must state the price
Almost every deed recorded in North Dakota must include a statement of the full price paid, or a statement that the sale is exempt (NDCC 11-18-02.2). The county recorder will not accept the deed without it.
Check for special assessments before you offer
North Dakota cities pay for new streets, water mains and sewers by charging the homes that benefit, often spread over many years on the tax bill (NDCC chapter 40-23). Unpaid and pending assessments usually stay with the home when it sells. Ask the city for the full list before you write an offer, then negotiate who pays.
Mineral rights often do not come with the land
In much of North Dakota, the oil, gas and other minerals under a property were sold off separately years ago. Buying the house does not mean you own what is underneath. If it matters to you, have a lawyer check the title before closing.
Every homeowner can get up to $1,600 a year
The Primary Residence Credit gives anyone who owns and lives in their North Dakota home up to $1,600 off their property taxes, with no age or income limit. You must apply online at tax.nd.gov/prc every year, between January 1 and April 1.
Closing costs in North Dakota: who pays what
Who pays what in North Dakota. There is no transfer tax, so most costs are set by your contract and local custom, and all of them can be negotiated.
| Buyer pays | How it works |
|---|---|
| Lender's title policy | Required with a loan. Usually paid by the buyer. |
| Recording fees | County fees to record the deed and mortgage. |
| Loan costs | Origination, appraisal and credit report, if you have a loan. |
| Home inspection | A flat fee, paid during your inspection period. |
| Closing fee | Often split between buyer and seller. |
| Prepaid taxes and insurance | Your first year of homeowners insurance and any tax escrow. |
| Special assessments you take over | Only if the contract says you take them. |
| Tax adjustments | Your share of property taxes from the closing date. |
| Seller pays | How it works |
|---|---|
| Owner's title policy or abstract update | Often paid by the seller. Set in the contract. |
| Special assessments you agree to pay | Negotiated. Many contracts have the seller pay off levied ones. |
| Mortgage payoff | Your lender's payoff plus the fee to release the mortgage. |
| Closing fee | Often split between buyer and seller. |
| Listing agent's commission | Set in your listing agreement. Always negotiable. |
| Deed preparation | The fee to draft the deed. |
| Tax adjustments | Your share of property taxes for the time you owned the home. |
| Repairs or credits you agree to | Only what you agree to in the contract. |
Recording fees are set by state law and collected by the county recorder. Special assessments vary a lot by city and street. Get the city's written list before you offer.
How a North Dakota home purchase runs
The order most North Dakota purchases follow. Your purchase agreement sets the exact deadlines, so keep a calendar.
Get pre-approved →-
Get pre-approved. Know your budget and payment before you tour.
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Check taxes and specials. Ask the city for levied and pending special assessments.
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Get the disclosure. The seller's form comes before final acceptance.
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Make an offer. Include inspection, financing and appraisal contingencies.
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Inspect. Book it right away and ask for repairs by your deadline.
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Title work. An abstract update or title search checks the ownership and liens.
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Loan approval. The lender finishes the appraisal and underwriting.
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Final walk-through. Check the home is in the condition you agreed to.
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Close, then apply for your credit. Sign, get the keys, then apply for the Primary Residence Credit between January 1 and April 1.
North Dakota by region
North Dakota markets run from the Red River Valley to oil country in the west. Tap a city to see the newest homes for sale there.
Red River Valley
Fargo, West Fargo and Grand Forks on the eastern border.
AXEN Realty in North Dakota
Every AXEN agent in North Dakota works under a licensed managing broker: Laura Nerbonne (AXEN Realty, LLC, firm license 3530). See every state on the state brokers page.
Buying? Start with the home buying guide and get pre-approved.
Selling? Read the home selling guide and get your home value.
Moving here? Read buying in a new state.
North Dakota real estate questions
Does North Dakota have a transfer tax?
No. There is no state transfer tax on home sales. You pay small county recording fees for the deed and mortgage.
Does the seller have to give me a disclosure in North Dakota?
Yes, for a home with 1 to 4 units, before final acceptance of the purchase agreement. Foreclosures, estate sales, family sales and brand-new homes are exempt.
What are special assessments?
Charges a city puts on homes to pay for streets, water, sewer and similar work nearby. They are often paid over years on the tax bill and usually stay with the home. Ask the city for levied and pending assessments before you offer.
What is the Primary Residence Credit?
A property tax credit of up to $1,600 a year for anyone who owns and lives in their North Dakota home. There is no age or income limit. Apply online at tax.nd.gov/prc each year from January 1 to April 1.
Do I get the mineral rights when I buy a home?
Often not. In many parts of North Dakota the minerals were split off from the land long ago. A lawyer can check the title if it matters to you.
Is the sale price public in North Dakota?
Each deed must carry a statement of the full price paid, or say the sale is exempt, before the county will record it. Ask the county recorder how that statement is handled where you buy.
Is a home inspection required?
No law requires one, but it is your best protection. Write an inspection contingency into your offer so you can back out or ask for repairs.
Who pays for title work?
It depends on the contract and local custom. North Dakota uses both abstracts of title and title insurance. Settle who pays for each in your purchase agreement.