What the State Association of Realtors is changing in some housing forms.
Every year the State Association of Realtors revises the real estate forms to clarify or improve how we conduct real estate transactions in Minnesota. This year is no different. We’re here to briefly discuss a few important modifications you need to know about if you’re going to buy or sell a home.
The first change, and perhaps the most significant one, occurs in the Minnesota Purchase Agreement. It dictates how a financing contingency is handled if a buyer fails to perform. Many people are under the impression that non-contingent offers only pertain to the sale of the home or an inspection; in reality, it also refers to mortgage financing. What if a buyer fails to obtain a mortgage loan? This form change addresses the issue and helps direct what happens to the earnest money if a buyer fails to perform under the terms of the purchase agreement.
“It’s crucial to have a good agent who knows when these changes are happening.”
A second form change on the financing side of things is the removal of a specific checkbox. Initially, this box was for whether a buyer needed a special bond or assistance for a down payment. Sellers would look at an offer, see that the buyer needed assistance, and decide they didn’t want to work with them. Chances were the buyer already qualified for the aid, so this was adversely hurting the negotiations. That checkbox has been eliminated, so buyers no longer need to worry about it.
The third change was made to the buyer’s move-in agreement. The liability insurance template now has “300,000” where it used to be blank. This helps clients who were unsure how to fill out that portion.
Lastly, the Association also changed the seller’s disclosure statement form. It now asks if there was an insurance claim and if one was filed, whether or not payment was received. Upon compensation, it’s removed from the disclosure statement.
With all of these alterations, it is crucial to have a good agent who knows when the changes are happening and how to utilize them. If you have any questions regarding this topic or anything else about real estate, please let us know. We’d love to help.