At a Minnesota closing, you sign a deed and a settlement statement, a title company or closing agent pays off your mortgage and any liens out of the sale price, and you receive what's left. Before that, the title work has to be clean and the required disclosures done. A cash sale can close in a few weeks because there is no lender, but the title steps still apply.
What are the steps from agreement to closing?
- Purchase agreement. You and the buyer sign. It sets the price, closing date, who pays what, and what happens with repairs. Your written disclosures (see the as-is guide) come before you sign.
- Title work. The title company searches the property's records and reports what it finds, including your mortgage, other liens and anything that must be cleared. The AG's handbook says title problems must be cleared before closing.
- City requirements. If your city requires a point-of-sale report, such as TISH in Minneapolis or St. Paul, it should already be done.
- Payoff request. The title company asks your lender for a payoff figure. Ask for any lien or judgment amounts too.
- Settlement statement. You review a line-by-line statement of the money in and out before you sign. The AG says to check the math.
- Signing. You sign the deed and other closing papers. The buyer's funds are delivered.
- Recording and payout. The deed is recorded with the county. You are paid what is left after payoffs and costs.
What does the title company do?
The title company or closing agent runs the closing. It searches the title, prepares or collects the closing documents, holds the funds, pays off your mortgage and liens, gets the deed recorded, and pays you. The Minnesota Attorney General's handbook lists a closing fee among seller costs if you hire a closing agent, so ask who is handling the closing and what they charge.
You can have your own agent or attorney review the documents. That is your right, and I encourage it. A cash buyer or an investor should be fine with that. If anyone pushes you to sign without time to read, slow down.
What happens to my mortgage and any liens?
They are paid from the sale price before you receive anything. You do not need to send a check yourself. The payoff comes from the proceeds. Afterward, the mortgage is discharged by recording a certificate of satisfaction signed by the lender (Minn. Stat. 507.40). Ask the title company who will make sure that gets recorded. Keep your payoff statement and final settlement statement in case a satisfaction is not recorded.
Who pays the deed tax and other costs?
Minnesota's state deed tax is 0.33% of the net consideration, plus 0.01% in Hennepin and Ramsey Counties. It is due when the deed is recorded. The statute does not say who pays it; the Attorney General's handbook lists it among the costs sellers typically pay, along with the commission, title search, recording fees for clearing your title, real estate taxes and assessments, and any closing fee. The purchase agreement controls, so check the settlement statement for who pays what. On a $200,000 sale the tax is $680 in Hennepin or Ramsey and $660 in other counties.
What is the well certificate?
Under Minn. Stat. 103I.235, you give the buyer a written well disclosure before signing. At closing you sign a well disclosure certificate, or the deed carries the statement "The Seller certifies that the Seller does not know of any wells on the described real property." The county recorder may not record the deed without one or the other. Septic systems and radon have their own pre-signing disclosures.
How long does it take?
| Cash buyer | Often a few weeks. There is no lender or appraisal, so the main time is title work, any city report, and payoff paperwork. My usual range is about two to four weeks, or your date. |
|---|---|
| Buyer with a loan | The AG's handbook says to allow at least six weeks from the purchase agreement. The buyer's loan type often sets the date. An appraisal that comes in low or a loan that isn't approved can delay or end the deal. |
What can go wrong, and what then?
The AG's handbook names two common causes of delays: the buyer's loan isn't approved, or the appraisal comes in below the agreed price. Both are lender problems, which is why a cash purchase avoids them. Other delays come from the title side: an unpaid lien, a judgment, a missing signature from a co-owner or an heir, or a mortgage payoff that takes longer than expected. Most of these are fixable if you hear about them early, so answer the title company's calls and emails quickly. If a problem can't be cleared by the closing date, the purchase agreement usually allows the date to move by agreement. Ask in advance what happens if closing slips.
It also helps to ask three things before the closing day: the payoff figure and its good-through date, the final settlement statement a day or two ahead, and the exact time and place of signing. Reading the statement ahead of time means there are no surprises at the table.
What should I bring?
- Government photo ID.
- All keys, garage openers and codes.
- Your mortgage account information (the title company already gets the payoff from the lender).
- Anything the purchase agreement requires, such as warranty documents or repair receipts.
- If the owner is an estate, the paperwork from the personal representative and the probate attorney. Confirm what is needed with them in advance.
- Your forwarding address and the details for how you want to be paid.
How do I get paid?
The title company pays you from the funds it holds, after payoffs and costs. Ask the title company before closing which payment methods it offers, and how fast the funds reach your account. Confirm the details with them directly, using a phone number you looked up yourself, and don't act on emailed payment changes.
On my purchases, the closing is at Executive Title, a Minnesota title company.
If you want to know what a closing with me would look like for your house, the offer form is the place to start, and you can have your own agent or attorney read everything first.