All delinquent taxes must be paid before a deed may be recorded; and if the sale divides real estate being taxed under one tax statement, all of the current year's taxes must also be paid prior to recording a deed. Customarily, taxes payable in the year of closing are prorated between the parties as of the date of closing, the Seller pays all prior taxes, and the Buyer pays all subsequent taxes.

The Seller must disclose to the Buyer, in writing, the existence of any well or individual sewer system on the premises. The Seller must complete a Property Disclosure.

A Certificate of Real Estate Value which must be filed with any deed having a deed tax of $3.30 or more must include the social security numbers of the Seller and Buyer.

If the sale involves a split of real property covered under one tax statement and the property is located in the county (not city limits), a parcel split request form must be submitted to and approved by Koochiching County Environmental Services. The County will verify that the resulting parcels meet the County's building, platting, zoning, etc. regulations.

Internal Revenue Service regulations may require the reporting of the sale or exchange of real estate. If a report must be filed, the social security number of the Seller is required and Form 1099-S, Proceeds from Real Estate Transaction, will be mailed to the Seller as well as filed with the I.R.S.

A Seller's typical charges include: abstract update prior to closing (by abstracter or personal search), deed Preparation, deed tax, recording satisfactions, and closing fee.

A Buyer's typical charges include: title opinion, certificate of real estate value, recording deed, recording mortgage, filing well certificate, mortgage registration tax, title insurance premium, plat sketch, title update following recording of lender's documentation, note and mortgage preparation (if loan is from an individual), and closing fee.

Contracts for Deed (including certificate of real estate value and recording fee) and Purchase Agreements are the responsibility of the person requesting the documentation but the costs may be split between the parties by agreement.

The standard Minnesota form Purchase Agreement calls for the Seller to provide an updated abstract of title or a title commitment. An abstract of title is a condensed history of the title to real property and certified by an abstracter it does not represent that the title is good and marketable. A title commitment is prepared by a title insurance agent who examines the County Records and issues a report as to the status of the title. If an updated abstract is provided, the purchaser is responsible for having the abstract examined by an attorney for purposes of issuing a title opinion or a title commitment. A title opinion or loan policy addressed to a lending institution for purposes of mortgaging the property does not extend to the owner of the property.

THE FOLLOWING IS A LIST OF TYPICAL DOCUMENTS/FEES WHICH MAY BE INVOLVED IN A RESIDENTIAL REAL ESTATE TRANSACTION

• Purchase Agreement
• Deed
• Certificate of Real Estate Value
• Closing Fee
• Contract for Deed
• Affidavit of Survivorship
• Note and Mortgage
• Examination of abstract of title and preparation of Title Opinion
• Personal Search of the records to update an abstract prior to issuing a Title Opinion 

THE FOLLOWING IS A LIST OF TYPICAL EXPENSES INCURRED:

• Recording Deed, Contract for Deed, Mortgage, Satisfaction - $46.00
• Recording Well Certificate - $40.00
• Recording Affidavit of Survivorship - $46.00 (A certified copy of decedent's death certificate must be attached to the Affidavit before it maybe recorded. The cost of a certified copy is $13.00 )
• Deed Tax - 33˝ per $100
• Mortgage Reg. Tax - 23˝ per $100
• Abstract Updating - varies by number of entries required
• Title Insurance Premiums - Lender and/or Owner - based upon purchase price/loan amount
• Plat Sketch - varies by location

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