Real Estate in Minnesota

If you are planning on selling or buying property in Minnesota, you need to take a little time to familiarize yourself with some of the real estate laws and regulations in the state. Although real estate transactions are much the same across the United States, each state does have individual differences in its laws involving the sale and purchase of property. Here are some of the significant aspects to Minnesota real estate law.

Property Disclosure Law

In Minnesota, sellers of single-family homes are required by law to tell prospective buyers about any potentially adverse physical problems in the home that may affect the buyer's use or enjoyment of the home. This disclosure includes telling buyers about conditions that may cause the buyer to not be able to use the property as intended.

All material facts must be disclosed to buyers. This means that the sellers need to tell buyers about anything and everything that could possibly affect a person's enjoyment of the property. For instance, perhaps the decorative stained glass window in the front room looks beautiful, but it rattles loudly during high winds. Or maybe the drop-down door to the attic is difficult to pull down during humid weather because the door sticks.

Taking Property Disclosure Seriously

It isn't only the interior of the home that sellers in Minnesota are to concern themselves with, though-all material facts about property are to be disclosed to prospective buyers. So, if there is a set of railroad tracks a half mile from the property from which the trains can be heard on a daily basis (even though the tracks and trains cannot be seen from the home), the buyers need to be told. Or, if the National Guard frequently does training exercises with its aircraft above the home area, the buyers should know.

Minnesota Realtor Arbitration System

When there is a dispute between a seller and a buyer, they can opt to go through the arbitration system created by the Minnesota Association of Realtors. This is voluntary, of course; the parties can opt to instead go through the court system. However, it can save a great deal of time to go through the arbitration. Here are the differences:

Time to file a claim:

• Arbitration: within 18 months
• Court System: within 72 months

Filing Fee:

• Arbitration: $250 - $1150
• Court System: $20 - $135

Who Decides?

• Arbitration: Arbitrator Inlvoved in real estate
• Court System: Judge or attorney referee

Time of hearing:

• Arbitration: Within a few months of filing claim
• Court System: Within 18 months in district court