What is a Truth-In-Sale Housing Disclosure? How does that differ from Pre-Inspection?

I was speaking with potential clients about listing their home in Blaine, Minnesota a few weeks ago. They had beautiful home with many updates that they taken wonderful care of. As they were filling out the disclosure, they brought up the subject of pre-inspection. A friend of theirs had recently sold a home and had it pre-inspected. When the offers came in, the buyers opted to forego the inspection, choosing to just read the report. My clients were wondering if this was a common practice and if a pre-inspection was required.

In Minnesota, there is no Truth-In-Housing inspection requirement to sell your home at the state or county level. There is however several communities in the Twin Cities metropolitan area that do require a pre-inspection report. These go by many names: Truth-in-Sale of Housing Disclosure, Time-of Sale, Time-of-Sale Code Compliance, Dwelling Maintenance and Occupancy Code Compliance, Housing Code Compliance Inspection or Housing Maintenance Code Inspection. Some of these inspections are done by inspectors that are city employees while other communities have licensed private inspectors to perform the inspection of the home. It is the homeowners responsibility to select a private inspector to perform the inspection prior to listing the home for sale.

The Twin Cities communities that currently require a home inspection are:

Private Inspectors (Selected by Homeowner)
Bloomington
Hopkins
Maplewood
Minneapolis
St. Louis Park
St. Paul
South St. Paul

City Inspectors
Crystal
New Hope
Richfield

Can I still have my home pre-inspected if my community does not have a truth-in-sale requirement?

Absolutely! Having you property pre-inspected and an inspection report available to potential buyers can speed along the buying process for many buyers. Some buyers will choose to review the report and not have another inspection completed making the offer not-contingent on an inspection. Other buyers will choose to have the inspector who did the pre-inspection come out to the home to explain the details in the report. This is often completed for a reduced fee to the buyer since the work has been completed and it is not as time consuming to the inspector. However a pre-inspection does not guarantee that the buyer will not opt to hire their own independent inspector of the home.

If I give an Inspection or Truth-In-Housing Report, do I have to complete a seller’s disclosure?
If you have lived in the home, yes! It is required to disclose what you know about the home. However, in the case of an estate or rental property where the owner did not live in the home, the owner will have limited information regarding the property to disclose. In this case, an inspector’s report can be offered in lieu of the completed disclosure.



If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.


Copyright 2007 terieckholm.com

Home Buyers Guide: Important Checklist for a Final Walk-Through

What an exciting day; the day you close on your new home! A few days before, your Realtor had called to schedule the date and time of the final walk-through. You thought, “This is great! I needed to check the paint color in the bedroom and measure the windows for blinds.” But that is not what the final walk-through is for. This is the last opportunity for you to see the home prior to closing. It is an appointment not to be missed or glossed over. It is a time to stay focused on your investment and examine the condition of the property one last time.

The purchase agreement that you sign in the state of Minnesota requires the seller to warrant that the central air conditioning, heating, plumbing and wiring systems on the property are in working order on the date of closing. It also insures you the rights to a “walk-through” review of the property prior to closing. This is not something to forego.

Last year there was a news report of first-time buyers who headed with all of their belongings directly to their new home after closing. They intended to move right in and enjoy their dream home, but arrived to find a nightmare. Sometime since seeing the home and writing a purchase agreement, a pipe had burst and flooded the entire home. These buyers had considered the final walk-through unnecessary since they had just seen the home a couple of weeks ago. Now they were the proud but frustrated owners of a huge mess. Although they do have legal remedies for having the home repaired, these buyers would have been in a much better position if they negotiated with the seller prior to closing. Or in the case of this extreme damage, the buyers could have not signed the final documents to purchase the home.

Every buyer should do a final walk-through on the home as close to the closing as possible. I suggest to my clients that we schedule the walk-through immediately prior to the closing. We meet one hour before at the home to review the condition of the property and then go directly to the closing. Any problems are noted and I immediately contact the seller’s agent so they have time to discuss the situation with their seller before our arrival.

The walk-through just prior to closing doesn’t eliminate every surprise that a new buyer might face. But it significantly reduces the chance of closing on an unknown disaster. Here is a checklist you can use as a guide to remind you of the things to check during your final inspection of the home.



Final Walk-Through Checklist
Double Check the Paperwork**Do you have a copy of the sellers’ disclosure?
**Do you have all required/requested inspection reports?
**Have you checked with the city to verify that all permits were issued for repairs and other information on the home’s history?
**Are all work orders complete? Are you satisfied with the results?

Exterior Review
**Check steps, sidewalks, driveways and patios for any noticeable change.
**Review drains, downspouts and gutters for change.
**Look at all doors and windows to verify they are in the same condition.
**Check the roof for changes…do any shingles appear loose or missing?
**Check the garage door? Do the openers work? Is the auto-reverse functional?
**Check for any noticeable leaking in garage.
**Double check garage and exterior lights.
Plumbing Review**Flush all toilets.
**Check all faucets both hot and cold for water pressure and temperature.
**Watch all traps and drains for proper drainage.
**Check operation of all appliances:

• Washer/Dryer
• Stove
• Dishwasher
• Water Heater
• Water Softener
• Refrigerator
• Garbage Disposal
• Trash Compactor

**If there is a in-ground sprinkling system or swimming pool, verify that it is in proper working order.
Interior Rooms Review
**Check that all doors, windows and screens are operational.
**Check ceilings, walls and floors for stains or other signs of damage.
**Check all handrails.

Electrical Review
**Check all lights, outlets, bathroom fans and kitchen fans.
**Verify that all smoke detectors, carbon monoxide detectors, security systems and door bells are functioning.
Furnace and Air Conditioning Review**Increase home thermostat on furnace to verify proper operation.
**Test air conditioning by lowering thermostat if outdoor temperature is above 65 degrees to verify air conditioning is operating.
**Check that gas fireplaces are operating properly.
Attic and Basement Review**Check for changes in any stained, damp or wet areas.
**Verify that there are no new wall or floor cracks.
**Is the sump pump operational?

A quick review of the home inside and out with a checklist will get you back to exciting part of that final walk-through…Will the couch look better here or there?


If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com