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The real estate market in Minnesota requires knowledge of how many things work, especially those that may be guided by federal or state law. For example, landlords may want to know how rent control functions in the state before attempting to make any changes.
Similarly, both a potential buyer and a seller should familiarize themselves with the elements of a real estate purchase agreement and what kind of written disclosure may be required to ensure that the contract is legally binding.
Note that you don't need to head over to the Minnesota State Bar Association to learn these things or to get the documentation on your own. At the end below there's a link that will take you to all the Minnesota documentation you could need.
Required Disclosures
The first disclosure statement that's required for the sale agreement is the Seller's Property Disclosure Statement. This will cover all the elements of the property that a buyer should know of to the best of the seller's knowledge that could impact its usefulness.
Potential buyers may alter their decisions based on these details, and they must be given the information to do so. Sellers are expected to act in good faith, ensuring that the written statement covers all the bases it is expected to.
Other disclosures will be required if the piece of residential real estate falls under specific categories.
For example, if the property happens to be a part of a common interest community, then a Common Interest Community Resale written disclosure is required to detail the rules of the community, membership mandates, etc.
A Lead-Based Paint Disclosure is required if the purchase agreement covers a property built before 1978 that may have lead paint content.
If there are any wells within the property lines, a Location of Wells Disclosure must be made.
Final Remarks
A real estate purchase agreement must be carefully constructed, ensuring that it covers all bases to be seen as a legitimate contract. Some of the typical elements in one include:
- Names and contact details of the involved parties
- Conditions to be fulfilled before the buyer can obtain the property
- How the property purchase will be financed
- Any other contingencies that may apply to the purchase
- Closing date
- Signatures of the parties.
You should also know that you don't need to stress about creating your purchase agreement on your own since Doorloop has already done it for you. Check out this and other Minnesota forms here!
FAQs
What's the Best Way to Write Up a Sale Agreement for Residential Real Estate in Minnesota?
The best way is to use the prepared version that Doorloop offers here, which will cover all expected bases.
What if Both Parties Don't Close on the Transaction By the Closing Date?
This depends on the rules of the agreement. However, you'll typically find that a mutual agreement needs to be present in writing before the contract is considered canceled.
Can a Seller Choose Not to Disclose the Home's Condition in a Statement?
No. Doing so would render the agreement invalid.
Is There a Way to Get Out of the Contract for the Seller?
This would need to be done before both parties have signed the agreement.
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