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Canoe Country Title Prior to Closing
Canoe Country Title Prior to Closing
Today is : Thursday, 11 March 2010
| General Buying & Selling Process |
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What is the general process for buying or selling a home? Buying a home can be one of the most rewarding experiences a person can have and one of the most complicated and stressful. Every home purchase involves a number of complex legal issues, unfamiliar terminology, and lots of paperwork. Knowing how the process works can reduce much of the headache. Canoe Country Title provides closing services and title insurance throughout Minnesota, however, our primary service area includes northern Minnesota and the communities of Virginia, Hibbing, Ely, Grand Rapids, Bemidji, Cloquet, International Falls, and Duluth.
Real Estate Agents
Real estate agents are hired to help buyers and sellers come together to complete the sale of a house. Home buyers and sellers can choose to work with an agent either exclusively or nonexclusively. If one decides to work with an agent, he or she will sign several contracts to clarify the relationship between the consumer and the agent. These contracts may relate to dual agency. This term refers to an agent who is representing a buyer in an offer on a house when the agent has a relationship with the seller of the house. An agent has dual loyalties when he or she finds a buyer for a house that the agency has listed. It may be difficult for one party to fairly represent both a buyer and a seller. The seller wants the highest price possible while the buyer wants to pay the lowest price. The contracts state what the agent can share with the other party and which information must remain confidential.
Seller Disclosures
When a seller signs the standard purchase agreement, he or she is required to disclose certain known problems and hazards to the buyer. A buyer may ask for a real estate transfer disclosure statement which supplements the information provided in the purchase agreement. A seller is not required to provide this statement to the buyer. This statement notifies prospective buyers of all known structural defects, as well as comments on the heating, plumbing, mechanical, and electrical systems. Just because problems are listed on this statement does not mean that the seller must repair the problems, but the buyer may request either repair or a price break because of the problem. In some communities, the seller is also required to complete a Truth in Housing Inspection Report. In that case, an inspector checks the house for defects and lists them in the report. Sellers must disclose the location of any wells on the property and whether the wells are in use or sealed.
Home Warranties
All builders in Minnesota are required to warrant the quality of the homes they build. Some builders participate in additional, private insurance programs. Minnesota law requires builders to repair anything under warranty including workmanship and materials for one year, mechanical systems for two years, and major structural defects for up to ten years.
Lead-Based Paint Abatement
Home buyers should be aware of new laws dealing with removal of lead-based paint from a home. Any person who removes paint from a home built before February 27, 1978, must determine if lead is present and whether the work is considered lead abatement. If the work is considered lead abatement, the abatement must be done by either a licensed lead abatement contractor or in some instances, the owner, who must follow strict requirements. In addition to requirements for removal of lead-based paint, there are also requirements for disposal of the lead debris.
Foreclosure
Nobody in the process of buying a house wants to think about falling behind in house payments and the possibility that a bank or mortgage company will foreclose on a loan and claim possession of the house. Nevertheless, it is wise to give some thought to why lenders go about foreclosing on a piece of property so that the consumer can minimize the probability of losing a house.
Up to a point, lenders will typically work with a homeowner who falls behind in making payments because they do not want to go through the hassle and expense of foreclosing on a property. Homeowners should communicate with their lenders, possibly even before any payments are missed, if there are financial difficulties present which make the payment of the mortgage difficult. It can take months for a lender to begin a foreclosure, and more months before it is completed, so there is usually time available to get the money needed to assure a lender that the consumer will not default on a mortgage.
After a lender begins the foreclosure process, there is a period of time called a redemption period during which a homeowner can stop the foreclosure by making all delinquent mortgage payments plus the lender's court costs and attorney fees.
In Minnesota, a homeowner can offer a lender the deed to the property as a way to satisfy a debt. Doing this means losing the property, but if a property owner truly has no other way to avoid foreclosure, offering a deed in lieu of foreclosure can prevent his or her credit rating from being severely damaged by a foreclosure. However, because lenders generally want cash and not real estate, there is no guarantee that a lender will accept a deed offered in lieu of foreclosure.
Most foreclosures in Minnesota are done by the bank placing an advertisement in a newspaper announcing the exact date, time, and place of the sale of property. Banks must follow precisely a declared set of laws and rules. A foreclosure is deemed legal and may not be disputed three years after the sale of the property. |
Speak With A Closing Agent Today
Where would you like to close?
Our Customers always come first. We schedule closings at a time and location that is convenient for you. You can close at your new home or in one of our convenient offices.
Two North Woods Offices to serve you.
1 E. Chapman Street
Ely, MN 55731
(218) 365-3221
301 N. Broadway Street
Gilbert, MN 55741
(218) 741-2077