Pre-Inspection, Truth-In-Housing, Point-of Sale--What's The Diffence?

 

During a pre-listing visit with home sellers I am often asked whether there is a state or county requirement for pre-inspecting a home.  On occasion a seller will mention a friend or relative that had their home inspected prior to the first potential buyer walking in the door. 

Having a home inspection before the sale can be beneficial and optional but can also be required in some Twin Cities communities. The benefit comes at the time of  the offer, when some buyers will actually opt to forgo the inspection, choosing to just read the report. Buyers can also contact the inspector of the initial report for a private walk-though at a discounted rate. I am often asked if this is a common practice in the Minneapolis/St. Paul area.

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 to meet the city requirements. In this instance it would be the homeowner’s 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
• Robbinsdale
• St. Paul
• South St. Paul

City Inspectors

• Crystal
• New Hope
• Osseo
• Richfield
• St Louis Park

Can a home seller have a home pre-inspected even if the city does not have a point of sale requirement?
Absolutely! Having your property pre-inspected with a written inspection report available to potential buyers can speed along the negotiations 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?
That depends.  State law requires that you disclose what you know about the condition of the home so in most cases, a full seller’s property disclosure would be completed by the home owner even if an inspection report is available. However, in the case of an estate or rental property where the owner did not live in the home and has limited information regarding the property to disclose, an inspector’s report can be provided along with an alternative, minimized disclosure that meets all state requirements.

Another note on wells and septic systems: 
Many communities and some counties have point of sale inspection requirements for the septic system and/or private well serving the property in addition to disclosures required as part of a purchase agreement.  Contact me for additional details

Ready to list your Minneapolis/St Paul Home?  Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of Boardman Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2015 www.terieckholm.com 

Inspection, Pre-Inspection, Truth-In-Housing and Disclosures! What is Required?

As a Minnesota REALTOR®, my real estate clients, both buyers and sellers, are sometimes confused by inspections and disclosure requirements in the Twin Cities and surrounding suburbs. Sellers want to know what they have to disclose which in short is, every material fact a buyer would want to know. A handful of Twin Cities communities require a home to be inspected prior to listing it for sale. Buyers, especially in a changed market full of foreclosures and short sales want to what their rights are in regard to disclosures and inspections.

Recently while listing a home for clients in Anoka County, a first-time selling couple asked about pre-inspections. There home was beautiful with many updates and it was obviously well maintained. As they filled out the required 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 on their friends’ home 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 are however a number of 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. But in most cases, it is the home owners 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. Paul
• South St. Paul

City Inspectors

• Brooklyn Park
• Crystal
• New Hope
• Osseo
• Richfield
• St. Louis Park

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 to give another report on 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 any material facts that 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 to meet the state disclosure requirement. A buyer may also agree to waive their right to the required seller’s disclosure. In either of these cases, this will not exempt a seller from any local or federal statutes (i.e. for septic or lead based paint).

What if it is a bank owned home? Does the bank have to provide a seller’s disclosure on a foreclosure?

Minnesota state law does not have different rules for a bank or other financial entity. They must disclose material facts on a seller’s disclosure, offer an inspection in lieu of foreclosure or have the buyer agree to waive their rights to a disclosure.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2008 terieckholm.com

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