Minneapolis Truth-of-Sale-in-Housing Requirements

Minneapolis requires a Truth-in-Sale-of-Housing evaluation on residential properties prior to sale of home. The evaluation report must be prominently displayed at the property for perusal by potential buyers.

Types of Minneapolis homes subject to evaluation:

• Single-family houses
• Duplexes
• Townhouses
• First-time condo conversions

Tpes of sales subject to evaluation:

• Sale by owner
• Sale by real estate agent
• Real estate agent-assisted sale
• Contract-for-deed
• Other title transfer

Ordinance Requirements

• An interior and exterior inspection of the condition of the property is required. A written evaluation must be prepared and submitted to the City of Minneapolis by a licensed evaluator. The City of Minneapolis does not contract with these evaluatiors. Evaluators can set their own fees, but must be licensed. The report will contain a list of required repairs.
• The property must be re-inspected after required repairs have been competed. Typically, these are completed prior to closing, However, a buyer may have up to 90 days after day of closing to make required repairs and have a re-inspection performed. The evaluator will always charge a re-inspection fee. A total of two trips by the evaluator are usually needed. If repairs require permits, a city inspector will be required to inspect the work.

Avoid an Unnecessary Return Trip and Charge by Evaluator

• Make sure that the entire building is accessible, including all rooms, attic, basement, and garage. The evaluator must also be able to access the water heater, floor drains, furnace, and water meter.
• Gas, water, and electricity must be turned on.
  The evaluator must see that the furnace, water heater, and garage door opener are in working condition.
• All smoke detectors must be working.

Most Commonly Required Repairs

• Install, repair or replace battery or battery-backup smoke alarms on all floors (one per floor, ncluding attic and basement
• Install backflow valves on laundry tub and outside faucet.

These repairs are minor, but they are extremely common. Other requirements could encompass electrical, heating and plumbing systems repairs, or inadequate structural support systems. The actual list of possible required repairs is quite lengthy. As a courtesy, some evaluators will supply you with a list of possible repairs, if you request it prior to the first evaluator visit.

Who is Responsible for Repairs

In most cases, the buyer will expect to have the repair work completed and approved prior to closing. However, if the buyer is willing to assume the repairs, they must be completed and approved within 90 days of closing. If the home needs major work, the buyer can request an extension.

Back to Minneapolis real estate page.

Possibly related posts:

1. Disclose! Disclose! Disclose!
2. What is “Arbitration?”