Minnesota real estate: buy or sell with a local AXEN agent
Minnesota makes a seller put known problems in writing, hand over a radon disclosure, and sign a well certificate at closing. It also runs two different land systems, and which one your property is on changes the whole closing. Here is what is the same everywhere in Minnesota, and where to search homes.
Minnesota cities we cover
Tap a city for its local guide or the newest homes for sale there.
What every Minnesota buyer and seller should know
Sellers have to put material facts in writing
Before you sign an agreement to sell a home you have to tell the buyer in writing about problems you know of, anything that could badly affect how they use the home. You act in good faith with what you know at the time. This is a real disclosure duty, not a form you check boxes on.
A third-party report can replace part of it
If a qualified third party writes a report that covers an issue and the buyer gets it, the seller does not have to disclose that item again. But if the seller knows something that contradicts the report, they still have to say so. Buyer and seller can also waive the whole written disclosure in writing.
Radon disclosure is required, a radon test is not
Before signing, the seller has to give you a written radon disclosure, a Radon Warning Statement, any past radon test records, and the state health department booklet on radon in real estate. The law does not require testing or fixing. The health department says about 40% of Minnesota homes have high radon, so most buyers test anyway.
Septic disclosure is state law, the inspection is a local rule
If the home has a septic system the seller has to give you a written statement saying where the sewage goes and describing the system, with any inspection report they already have attached. State law does not order a compliance inspection at sale. Many counties, cities and townships do. Check the local ordinance every time.
The well disclosure certificate at closing
If the property has a well the seller signs a certificate at closing showing each well and its status. The county collects $54 from the buyer or whoever records the deed, and sends $46.50 of it to the health department. No certificate is needed if the deed says the seller knows of no wells, or nothing has changed since the last filed one.
Deed tax and mortgage registry tax
State deed tax is 0.33% of the price. Mortgage registry tax is 0.23% of the loan. Hennepin and Ramsey counties add a 0.01% ERF tax to each. No other county does, so this is not a general metro surcharge. The tax is due when the document is recorded. By custom the seller pays the deed tax and the buyer pays the mortgage registry tax, but the statute names no payer.
Abstract land versus Torrens land
Minnesota has two land systems. Most land is abstract. Some is Torrens, or registered, with a certificate of title held by the county registrar. A Torrens owner takes title free of claims except those listed on the certificate and a short list in the statute, and Torrens land cannot be lost to adverse possession. Torrens deals often need an examiner of titles or an attorney, and they take longer. Find out which you are buying early.
Homestead by December 31, refund by August 15
File for homestead with your county assessor by December 31 to get it for taxes payable next year. You have to own the home, live in it as your main home, and be a Minnesota resident. Homestead can qualify you for the market value exclusion and the Homestead Credit Refund, which is a separate filing due August 15 on Form M1PR. A special refund applies when your tax jumps more than 12% and at least $100.
Closing costs in Minnesota: who pays what
Who pays what in Minnesota. The deed tax, mortgage registry tax and well fee are set by law. The rest is custom and can be negotiated.
| Buyer pays | How it works |
|---|---|
| Mortgage registry tax | Minn. Stat. 287.05: 0.23% of the loan, or 0.24% in Hennepin and Ramsey. |
| Recording the deed and mortgage | Set by your county, a flat fee per document. |
| Torrens extra entries | Registered land is charged per memorial and per certificate canceled or issued, so it costs more than abstract. |
| Well disclosure certificate fee | Minn. Stat. 103I.235: $54, collected from the buyer or whoever records. |
| Lender's title policy and closing fee | Quoted by the title company. |
| Home inspection and radon test | Quoted by the inspector. Neither is required by law. |
| Septic compliance inspection | Required by many counties at transfer, not by the state. |
| Survey | Optional unless your lender or a Torrens issue calls for one. |
| Property tax proration | Split at closing by the purchase agreement. |
| Seller pays | How it works |
|---|---|
| State deed tax | Minn. Stat. 287.21: 0.33% of the price, or 0.34% in Hennepin and Ramsey. Minimum $1.65 when the price is $3,000 or less. |
| Owner's title policy | Often paid by the seller by custom. Quoted by the title company. |
| Title commitment and search | The abstract update, or the Torrens certificate. |
| Recording releases and corrections | A county fee per document. |
| Septic compliance inspection or repair | Where a local ordinance requires it at sale. |
| Well sealing or well records | Where required for a well on the land. |
| Share of the closing fee | Set by the title company. |
| Property tax proration | Your share of the taxes through the closing date. |
Recording fees, Torrens fee structures, septic point-of-transfer rules and shoreland ordinances all change by county, city and township, and many local rules are stricter than the state's. Ask your AXEN agent what your county requires before you sign.
How a Minnesota home purchase runs
From purchase agreement to recording, most Minnesota sales run 30 to 45 days. Torrens files take longer. Here is the order.
Get pre-approved →-
Purchase agreement signed. The disclosures have to already be delivered: seller disclosure, radon, septic. That timing is law, not custom.
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Earnest money to the broker or title company. Your agent delivers it, usually within 1 to 3 business days.
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Title order opened. The title company pulls the abstract or the Torrens certificate of title and issues a commitment. Days 5 to 15, and longer on Torrens.
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Inspections. General inspection, radon test, a septic compliance inspection where a local rule requires one, and a well water test. Days 5 to 10.
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Appraisal and loan underwriting. Your lender orders both. Two to four weeks.
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Title objections cleared. An attorney or the examiner of titles handles Torrens and complex issues. One to three weeks.
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Closing documents prepared. The deed, the well disclosure certificate, and the deed tax and mortgage registry tax get figured. Two to three days before closing.
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Closing. Everyone signs, the money moves, and taxes are prorated. An attorney is usually involved on a Torrens or complex file.
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Recording. The deed and mortgage go to the county recorder or registrar of titles with the taxes and the $54 Minnesota Department of Health well fee paid. How long it takes depends on the county and on whether the land is abstract or Torrens.
Minnesota by region
Minnesota's rules get more local the further you get from the metro. Tap a city for homes for sale there.
Twin Cities metro
The state's biggest job market and busiest housing area. This is the only region with the extra ERF tax, and only in Hennepin and Ramsey counties.
Central and Southern Minnesota
Regional hubs built around health care, education and manufacturing, each serving a wide rural area. Septic and well rules come up more often here than in the core metro.
AXEN Realty in Minnesota
Every AXEN agent in Minnesota works under a licensed managing broker: Larry Klecker (AXEN Realty, LLC, firm license 41012263). 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.
Real estate agent? Changing brokerages in Minnesota: your new broker files it; state fee: $20, paid when the new broker files. See how to transfer a Minnesota license, the switching checklist, advice for new agents and how keeping 100% works.
Minnesota real estate questions
Do I have to test for radon before I sell?
No. Minnesota law requires disclosure, not testing. You have to give the buyer a written radon disclosure, the Radon Warning Statement, any test records you have, and the state health department booklet. Many buyers test anyway, because the health department says about 40% of Minnesota homes come back high.
What is Torrens property?
Torrens is Minnesota's registered land system. The county registrar of titles holds a certificate showing who owns the land and what claims are on it. A buyer takes title free of claims not on that certificate, with a short list of exceptions. Torrens files often need an examiner of titles and take longer to close.
How do I know if my property is abstract or Torrens?
Ask the county. Most Minnesota land is abstract, and counties keep property search tools that show which system applies. Your title company checks as soon as the file opens. Torrens changes the search, the paperwork, the recording fees and often the timeline, so find out early.
Who pays the deed tax?
The statute does not name a payer. By custom the seller pays the deed tax and the buyer pays the mortgage registry tax. Either can be moved in the purchase agreement. Deed tax is 0.33% of the price, or 0.34% in Hennepin and Ramsey counties.
What is the ERF tax?
ERF stands for Environmental Response Fund. It is an extra 0.01% added to both the deed tax and the mortgage registry tax, and it applies only in Hennepin and Ramsey counties. A sale in Anoka, Wright, Olmsted or St. Louis County does not include it.
Do I need a septic inspection to sell?
State law only requires a written septic disclosure describing the system and where the sewage goes. It does not order an inspection at sale. Many counties, cities and townships do require a compliance inspection before transfer, especially near lakes. Always check the local ordinance for that property.
What is the well disclosure certificate?
If the property has a well the seller signs a certificate at closing listing each well and its status. The county collects $54 and sends $46.50 to the health department. You can skip it if the deed states the seller knows of no wells, or if nothing has changed since the last filed certificate.
When do I file for homestead?
File with your county assessor by December 31 to get homestead for taxes payable the next year. You have to own the home, live in it as your main home, and be a Minnesota resident. Homestead can qualify you for the market value exclusion and the Homestead Credit Refund, filed by August 15 on Form M1PR.