Tom, a licensed Minnesota salesperson, is helping a buyer draft a purchase agreement for a rural property in Otter Tail County that has a private well. Which Minnesota-specific document must be addressed at or before the closing of this transaction?
Correct Answer
B) A Well Disclosure Certificate filed with the county recorder
Under Minn. Stat. § 103I.235, sellers of real property in Minnesota must disclose the location and status of all wells on the property by filing a Well Disclosure Certificate with the county recorder at the time of closing. This is a mandatory closing document unique to Minnesota, required because of the state's extensive use of private groundwater wells.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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