What closing costs does a Minnesota seller pay?
Every home sale has costs that come out at closing. In Minnesota, a few are almost always the seller’s, and a few come up often in estate sales. Here’s a plain-language rundown, and which ones Minnesold covers when you sell to us.
This is general information. Exact costs and customs vary, and your title company prepares the actual numbers on the settlement statement.
The Minnesota state deed tax
When a property sells, the deed gets recorded, and Minnesota charges a state deed tax based on the sale price. By custom, the seller usually pays it. It’s one of the larger closing costs on most Minnesota sales.
The Hennepin and Ramsey environmental surcharge
If the property is in Hennepin or Ramsey county, those counties add an environmental surcharge on top of the state deed tax. Sellers in Minneapolis, St. Paul, and many inner suburbs see it on their settlement statements.
On a sale to us: we pay the state deed tax and the Hennepin/Ramsey surcharge.
Title costs: abstract update or title search
Minnesota has two title systems, abstract and Torrens. For abstract property, the paper abstract of title is usually updated for the sale. For both kinds, the title company searches the records and prepares a title commitment. The seller commonly pays for the abstract update or title search. If the family can’t find the original abstract, which happens a lot in estates, it can add time and cost. See abstract vs. Torrens title.
On a sale to us: we pay for the abstract update or title search.
Title company closing fees
The title company charges fees to prepare documents, handle the money, and run the closing. These are often split between buyer and seller, or follow local custom.
On a sale to us: we pay the seller’s share of the closing fees.
What comes out of your proceeds
These aren’t “closing costs” in the fee sense, but they’re paid at closing from the sale price:
- Mortgage payoff, including interest to the payoff date, and any home equity line
- Liens, like judgments or contractor liens
- Unpaid property taxes, prorated to the closing date
- Utility or special assessment balances the city requires to be paid
What’s left after these is your net proceeds, paid to you or to the estate.
Summary table
| Cost | Who usually pays in Minnesota | On a sale to Minnesold |
|---|---|---|
| State deed tax | Seller | We pay |
| Hennepin/Ramsey surcharge | Seller (in those counties) | We pay |
| Abstract update or title search | Seller | We pay |
| Title closing fees | Split or by custom | We pay the seller’s share |
| Commission | Seller, on a listing (negotiable) | None |
| Mortgage, liens, unpaid taxes | Paid from proceeds | Paid from proceeds |
| TISH or required septic inspection | Seller, usually | We pay |
Other costs sellers sometimes forget
On a listing, sellers also often pay for repairs after inspection, cleaning, staging, and months of carrying costs. None of those show up as a “closing cost,” but they come out of your net just the same. Our cash offer vs. listing guide helps compare the full picture, and how we calculate your cash offer shows what’s in our number.
Reading your settlement statement
At closing, the title company gives you a settlement statement (sometimes called a closing disclosure or ALTA statement). It lists every dollar in and out. For a seller, it usually shows:
- Sale price at the top
- Credits and prorations, like property taxes for part of the year
- Payoffs, like the mortgage and any liens
- Seller charges, like deed tax and title fees, unless the buyer is paying them
- Net to seller, the amount you receive
On a sale to us, the seller charges section is where you’ll see our commitment reflected: the standard seller closing costs are paid by us.
Property tax prorations, briefly
Minnesota property taxes are generally paid in two halves during the year. At closing, taxes are usually split between buyer and seller based on the closing date. If taxes are delinquent, they’re paid from the proceeds. The title company handles the math.
Special assessments
Some cities charge special assessments for things like street or sewer projects. Pending or levied assessments may need to be paid or addressed at closing, depending on the agreement. The title company will find them in its search, and we’ll talk through how they’re handled.
Estate sales: costs that sometimes surprise heirs
- Attorney fees for probate, paid by the estate
- Court filing fees
- Costs to fix title problems, such as a Torrens proceeding
- Carrying costs while probate is open
These aren’t closing costs, but they affect what heirs receive in the end.
A note on estates
In an estate sale, the personal representative signs for the estate, and net proceeds go to the estate, not directly to the heirs. How they’re distributed is up to the estate’s attorney and the court. Ask the attorney before assuming when funds will reach you.
Minnesold's team includes a licensed Minnesota real estate agent. Information on this site is general and educational. It is not legal, tax, or Medical Assistance advice. Talk with a probate attorney, elder law attorney, or CPA about your situation.