Minnesota Seller's Disclosure | MN Disclosure Waiver

Seller’s Disclosure is Required!

It seems like the banks that are selling the foreclosed properties (REO banks) are trying to rewrite Minnesota law! I am constantly bombarded by their version of purchase agreement and 100% of them require the buyer to sign a “bank addendum” after they accept the offer.

Many of these REO banks also believe that they are not required to sign a seller’s disclosure or the seller’s disclosure waiver. Minnesota Statute 513.52 -513.60 (Seller Disclosure law) requires a property owner of an existing residential property (including banks selling bank-owned foreclosed properties ...

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2 comments

#1MN PropertiesDecember 9, 2008, 4:21 pm

This is a great post Scott. Albeit, most banks continue to play by their own rules and it will always be a “buyer beware” market when it comes to buying an REO.

#2Jeanie Hoholik – Twin City Real Estate ChatDecember 9, 2008, 9:17 pm

A good Realtor will advise his/her client to check out the property with their inspector FIRST. After that process and the buyer is OK with it, it’s the buyer’s problem if there are issues. Usaully, not a big deal. But, make sure to give the buyer plenty of time on the p.a. to back out. Most folks know that in a bank owned property situation, it will be the buyer’s issue. Better beware of city inspections, assessments, liens, etc. One can only be so careful! Even after closing, there may be “hidden” assessments due to errant title companies. It can be a true nightmare to unravel the city assessments from the past. Seller’s diclosures and 311 will only take you so far.

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