Within the world of real estate transactions, creating clear contracts and agreements between buyers and sellers or landlords and tenants is essential. These agreements outline the responsibilities of both parties and can dramatically reduce the risk of problems that could derail the real estate transaction. But though every transaction is different, there are a few common real estate contracts and agreements that most Minnesota real estate attorneys recommend for the most common types of transactions. Let’s take a closer look.
The Standard Residential Purchase Agreement
This agreement is approved by the Minnesota State Bar Association and includes all of the terms of the sale in one central written document. This includes terms like:
- The purchase price
- Closing date
- Responsibilities of the seller
- Responsibilities of the buyer
- Any amendments added prior to closing
The goal of this agreement is to remove uncertainty and ensure that both the buyers and the sellers fulfill their obligations by the closing date. When everything is written out, both parties can be held accountable for their actions with ease.
Real Estate Assignment Contracts
These contracts are commonly used by real estate investors to transfer one person’s or party’s rights to another person or party. The contracts outline the obligations that the original party has for the property, detail the transfer process, and outline the obligations that the new party must fulfill to be in good standing.
It’s important to note that these contracts merely transfer the rights to another party. There is no transfer of ownership of the property under these agreements.
Lease Agreements
Lease agreements outline the responsibilities that the property owner and landlord have to the tenant as well as the responsibilities the tenant has to the landlord. They often include provisions like:
- Rent amount
- Pet policies
- Maintenance agreements and expectations
- Rights to enter the property when occupied
- Utility specifications
- Insurance requirements
Lease agreements should typically be reviewed by a Minnesota real estate attorney to ensure that they follow the state’s legal requirements. Some lease agreements available online may include terms that the state deems inappropriate or illegal.
Commercial Property Purchase Agreements
Commercial real estate purchases are distinctly different from residential purchases and the standard residential agreement isn’t enough to cover both buyers and sellers. That’s why both parties are encouraged to use commercial property purchase agreements. These agreements will include information and terms like:
- A clear and accurate description of the property
- The address of the property
- The buyer’s information
- The seller’s information
- Property disclosures
- The purchase price
Since these agreements typically involve a business owner, it’s a good idea to get them reviewed by a Minnesota real estate attorney. They’ll be able to identify any missing terms and help you determine if the agreement is in your best interest.
Do You Need an Attorney to Prepare Real Estate Contracts?
Legally, you’re able to use pre-printed contracts for many common real estate transactions. For property owners and buyers looking to save money, this can seem like a good idea upfront. However, working with an attorney to prepare those contracts can be beneficial and may save you money in the long run. They’ll be able to review the terms of the agreement, identify any missing or inadequate provisions, and help you decide if following through with the sale or purchase is in your best interest.
Just be sure to look for an attorney who specializes in the type of purchase or sale you’re making. This way, you’ll get the highest quality service that’s most beneficial to your needs and your situation.
Let Waypoint Law Help
If you’re buying or selling a property, whether it’s a residential property or a commercial building, working with a Minnesota real estate attorney can help streamline the process. At Waypoint Law, our team can review your contract, help you understand the terms, and make a decision that benefits you now and in the future. Contact us today to schedule a free consultation.