11 Oct Fees in a real estate transaction Minnesota
Fees in real estate transaction
All of us in Minnesota pay into the State in a real estate transaction. Both the buyers and sellers have costs associated fees in a real estate transaction. Listed below are both sides for your review. Consequently, these costs are one of the reasons the State of Minnesota has a budget surplus. Therefore, the better the real estate market – the better the State does.
The buyers costs to the State of Minnesota
The largest fee to the buyer is the State Deed Tax. This is 3.3 per thousand in most areas of the Twin Cities. But that is taxed only on the mortgage amount. So, if you have a $300,000 mortgage you pay $990.00 to the State of Minnesota. However, if you pay cash you have no Deed Tax. Also, you have a $5.00 conservation fee. This is for the Agricultural Land Preservation Program. In addition, you have recording fees ranging from $46 to $138. This is for recording the deed.
The Sellers costs to the State of Minnesota
We as sellers also pay the State Deed Tax. It is the same approximately 3.3 per thousand. However, it is based on the full sales price of the property. In short, the seller has a greater burden. In addition, the seller has the $5.00 conservation fee. Also, the same recording fees.
Other state of Minnesota costs to the seller
We find there are some additional tax expenses in some cases. For example, if you flip the house and realize a profit. You must live in your property a specific minimum period of time for that tax to expire. It is best to consult your tax person. Especially if you have lived in your home a short time.
In conclusion
The real estate market in Minnesota effects the health of our economy. Surprisingly, it also effects the financial health of our State Government!
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