Buying a home in Minnesota
When planning on buying a home in Minnesota, it’s a good idea to take some time to familiarize yourself with the main real estate laws and regulations in the state. Even though real estate transactions are much the same all across the country, each state does have some small differences in its laws. Here’s a few of the notable aspects to Minnesota real estate law:- Property disclosure
- Sellers are required by law to inform prospective buyers of any known, potentially adverse physical problems with the home that could affect the buyer’s enjoyment and/or use of the home
- In Minnesota, all material facts about a property must be disclosed to any prospective buyer. This means if the local airport has a flight path over the property even just one day a week, the seller is obliged to let the buyer know
- Minnesota Realtor Arbitration System
- Minnesota law states when a dispute breaks out between a seller and a buyer, they can go through an arbitration system managed by the Minnesota Association of Realtors. This is a voluntary decision. It’s an alternative to going through the normal court system. Going through the arbitration system can however save a great deal of time and money. Here are a few of the differences:
- Under the court system, a buyer has six years in which to file a claim, whereas in arbitration this must be done in 18 months
- The district courts can take up to 18 months to hear the case, but in arbitration, the case will be heard within a few months
- Arbitration filing fees can be anything from $250 - $1,150, and the court system fees are $20 - $135
- Minnesota law states when a dispute breaks out between a seller and a buyer, they can go through an arbitration system managed by the Minnesota Association of Realtors. This is a voluntary decision. It’s an alternative to going through the normal court system. Going through the arbitration system can however save a great deal of time and money. Here are a few of the differences:
Refinancing in Minnesota
Minnesotans don’t have to worry much about state-level regulations when they want to refinance their mortgages. There seem to be few Minnesota laws to stop you from doing what you want. Of course, you’ll still be bound by federal regulations. However, some who wish to refinance may face mandatory counseling as a result of a Minnesota law. Whether or not you do will depend on the sort of mortgage you currently have. The US Department of Housing and Urban Development (HUD) has a long list of approved counselors in Minnesota on its website. So you’ll likely find one who’s convenient for your home or workplace. You may have to pay a "reasonable and customary fee" for counseling. However, that’s waived if you’re facing foreclosure or can show you can’t afford it. And HUD has other rules for counselors and agencies that employ them:- You must be told the fee before you commit to counseling
- That fee must be reasonable for (“commensurate with”) the level of help you get