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.
Required Seller Disclosures in Minnesota
Residential real estate purchase agreements commonly contain promises and provisions guaranteeing a property’s condition. Many states legally require sellers to disclose specific information concerning a property’s condition. In states where this is required and a seller willfully hides such information, they can be sued for fraud.
In Minnesota, sellers are required to complete a real estate purchase agreement and the following disclosure statement in order for the sale to be considered legally binding:
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. (§ 513.55)