FSBO paperwork checklist for Minnesota

1. Disclosures you give the buyer

Before the purchase agreement is signed:

• Seller’s disclosure. Sellers must disclose material facts they know about that could significantly affect the buyer’s use or enjoyment of the property, using a written disclosure or an inspection report, or both sides can agree in writing to waive it. Minn. Stat. 513.52–513.60
• Wells. Before signing a purchase agreement, the seller must disclose in writing whether there are any wells on the property and their status; a well disclosure certificate is filed with the deed. Minn. Stat. 103I.235
• Septic systems. Sellers must disclose whether the home has a septic (subsurface sewage treatment) system and where it is. Many counties also require a compliance inspection before the sale, for example Dakota County. Minn. Stat. 115.55, subd. 6
• Radon. Before the purchase agreement, sellers must disclose what they know about radon testing, levels and any mitigation system, include the state’s radon warning statement and give the buyer the Minnesota Department of Health publication “Radon in Real Estate Transactions.” Minn. Stat. 144.496
• Lead-based paint. For homes built before 1978, federal law requires a lead-based paint disclosure and pamphlet, and gives buyers a chance to test. 42 U.S.C. 4852d
• Methamphetamine production. Sellers must disclose in writing if they know methamphetamine was produced on the property. Minn. Stat. 152.0275
• Condos and townhomes. In most common-interest communities, the seller provides the association’s resale disclosure information. Unless the buyer had it more than 10 days before signing, the buyer can cancel within 10 days of receiving it. Minn. Stat. 515B.4-107 and 515B.4-108

The Minnesota Department of Health publishes the required radon booklet (MDH radon in real estate) and the well disclosure rules and forms (MDH well disclosure). There is no state-issued seller disclosure form; the law lists what must be disclosed.

2. City inspection reports

If your city requires a Truth in Sale of Housing, time-of-sale or sewer inspection, the report or certificate is part of your paperwork, often before the first showing. See your city.

3. The purchase agreement and addenda

The contract between you and the buyer: price, earnest money, contingencies, closing date, what stays with the house and who pays which costs, plus any addenda (for example, an inspection or financing addendum). Have a Minnesota real estate attorney draft or review it.

4. What the title company or attorney prepares

• Title commitment and payoff statement for your mortgage.
• The deed, including the well certification or Well Disclosure Certificate.
• The electronic Certificate of Real Estate Value (eCRV), required to record the deed.
• The settlement statement showing the deed tax (0.33% of the price, plus 0.01% in Hennepin and Ramsey counties), prorated property taxes and your net proceeds.

5. Keep for your records

Keep the signed purchase agreement, disclosures, inspection reports and settlement statement. You’ll want the settlement statement at tax time; see taxes when you sell.

General information, not legal or tax advice. A Minnesota real estate attorney or title company should prepare or review your purchase agreement, deed and closing documents.