Changes Coming To Minnesota Real Estate Forms
June 16th, 2018 by Frank Hough
Throughout the past year I’ve had the privilege of serving on the forms committee for the Minnesota Association of REALTORs® This committee of approximately 20 people is responsible for writing and revising all of the residential real estate contracts used by over 21,000 agents in Minnesota.
We’ve made some exciting changes to the forms this year, and I want to address a few notable changes in this article. These changes will be implemented in August of 2018.
Wire Fraud Disclosure. Wire fraud has been on the rise over the past few years. There have been multiple cases in Minnesota where consumers have been scammed into wiring funds to fraudulent accounts. Because of this, we are implementing a Wire Fraud Disclosure. This is a one page disclosure to the consumer explaining the issue of wire fraud and how to avoid being scammed.
Co-op Payout Disclosure. This is a much needed change to the listing agreement which I’m proud to say fellow Rochester agent Carrie Klassen and I both voted in favor of. When an agent lists a home for sale in the MLS they’re required to offer compensation to other agents for bringing in a buyer. Now consumers will be able to see how much compensation they’re willing to offer.
Eliminating “Seller Shall / Shall Not Have The Right To Continue To Offer The Property For Sale. We’ve unanimously decided to get rid of this language at the end of the purchase agreement. It’s meaningless and confusing for the consumer, and sometimes for agents as well. This language seemed to imply that a seller could accept a better offer if one came along after they executed a purchase agreement. As agents we know they can’t because the executed purchase agreement is binding. We’re getting rid of this language to avoid confusion.
Bonus! Failing By One Vote… “Subsurface Sewage Treatment System and Well Inspection Contingency”. This contingency was almost changed to be called a “Subsurface Sewage Treatment System and Well Water Inspection Contingency”. Technically it’s the water quality of the well that’s being tested rather than the well itself. A test is done to make sure the well water is potable and in compliance with quality standards. The name of this form might cause some consumers to think the actual structure of the well is being tested. But for now it remains as is.