Do you know that Minnesota law requires a material fact disclosure (Seller's Disclosure), made by the seller to the buyer? Sellers must be prepared to adhere to the statutory legal requirements for this disclosure and Buyers should understand what to look for and whether the Seller has met this requirement. Minnesota requires sellers to disclose "material facts", and candid disclosure is often a proactive risk management strategy, ask us for advice on this issue if you choose to retain our firm.
Was the property built before 1978? If so, Federal Law requires a lead-based paint disclosure. You will need to make sure you understand what this disclosure requires, and that you provide a prospective buyer with a sufficient written disclosure.
Are there wells, septic systems, etc.? The seller must make the required disclosures for these systems, separate from the "material fact" disclosure requirements of Minn. Stat. Sec. 513.52 - 513.60.
Is the sale of the house contingent on financing, an inspection, or the sale of the buyers own home? If so, this can shift the burden of risk to Buyer or Seller, depending on how these contingencies are structured, and the contingencies should be structured or reviewed by your attorney.
How much earnest money should I get from a prospective buyer and do I get to keep the earnest money if the buyer defaults? Despite what you may think, there is not always a clear answer for this either, and the more information you are armed with, the more you can manage some of the risk in the transaction. If you only obtain $500 or $1000 earnest money, you may not have the protection you need if you have to cancel the purchase agreement upon a buyer default.
Buying or selling a home is a complex transaction, and once buyer and seller have agreed to a price and closing date, that is only part of the transaction. Real estate purchase contracts must be in writing to be valid in Minnesota, and the clearer and more accurate they are, the better for all parties involved.
Even if a real estate agent (or REALTOR) is involved in one or both sides of the transaction, a proactive and prudent buyer or seller would be well-advised to seek the help of an attorney to handle contract or purchase agreement drafting, review, or assistance in the transaction. Since your real estate agent cannot provide legal advice, we can help provide advice and assistance where the agent is unable to help. Our fees are reasonable, and the time-tested maxim "an ounce of prevention is worth a pound of cure" truly applies to seeking legal counsel to assist you through a real estate transaction.
If you are thinking about selling a home in Minnesota as a For Sale By Owner, feel free to contact Brad Boyd to discuss how he might be able to help you through the process. If you engage Brad Boyd when you sell your home as a For Sale By Owner, you will also benefit from the Seller's Question and Answer Guide Brad has custom designed. In representing a buyer or seller in a real estate transaction, Brad can help you as a legal advisor, beyond simply just reviewing or drafting the purchase agreement. Call Brad at Thomsen Nybeck, at 952.835.7000.