Closing costs by state
Closing costs in South Dakota
Closing costs in South Dakota run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $10,055. South Dakota charges a state transfer tax of $0.50 per $500 of value (real estate transfer fee, SDCL 43-4-21), about 0.1% of the price, and the seller customarily pays it.
Last verified ·Sources:sdlegislature.gov
The rules
What South Dakota does differently
- State transfer tax
- $0.50 per $500 of value (real estate transfer fee, SDCL 43-4-21) (about 0.1% of the price at $400,000).
- Who pays it
- Seller, by custom.
- County and city add-ons
- None; the county register of deeds collects the fee at recording.
- Attorney at closing
- South Dakota does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Owner’s title policy
- The owner’s title policy is customarily split between buyer and seller in South Dakota.
- Notes
- The statute puts the fee on the grantor: $400 on a $400,000 sale. Title companies conduct closings. The owner's policy is customarily divided equally.
- sdlegislature.gov — “fifty cents for each five hundred dollars of value or fraction thereof ... which fee shall be paid by the grantor”
Worked example
A $400,000 home in South Dakota, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow South Dakota’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Total (2.514% of price) | $10,055 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy, half (estimate) | $750 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.1%) | $400 |
| Total | $24,650 |
Questions
What people ask about South Dakota
- Who pays the transfer tax in South Dakota?
- South Dakota charges a state transfer tax of $0.50 per $500 of value (real estate transfer fee, SDCL 43-4-21), about 0.1% of the price, and the seller customarily pays it.
- Do you need an attorney to close on a house in South Dakota?
- South Dakota does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Who pays for the owner’s title policy in South Dakota?
- The owner’s title policy is customarily split between buyer and seller in South Dakota.
- How much are seller closing costs in South Dakota?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $24,650 for the seller, including $400 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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