The Minnesota residential real estate purchase agreement (“residential purchase and sale agreement”) is a contract that is drafted to legally formalize the sale of a residential property. The document will present a potential buyer’s offer and terms for the purchase of the property.
The potential buyer will set a date by which their offer will terminate, at which time; the seller may present a counteroffer. The potential buyer may request to have the property inspected by a third party. Once both parties (buyer and seller) have reached an agreement, they will sign the contract to finalize the deal.
Do Sellers in Minnesota Have to Disclose Property Defects?
Minnesota does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.
Required Seller Disclosures in Minnesota
Along with any material defects with the property, sellers in Minnesota will also need to provide the following:
- Seller’s Property Disclosure Statement. In Minnesota, the seller of the property must give the buyer a written disclosure that includes all material facts of which the seller is aware that could adversely and significantly affect a buyer’s use and enjoyment of the property or any intended use of the property of which the seller is aware. The disclosure must be made in good faith and based upon the best of the seller’s knowledge at the time of the disclosure.
- Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.