Furnace, AC, electrical, plumbing no longer warranted by seller in Purchase Agreement to be in working order at time of closing

Furnace-no warrantyNew MN real estate forms went into effect this month, and a significant change is the removal of default language in Minnesota purchase agreements that the seller warrants the heating, air conditioning, plumbing and electrical systems to be in working order at the time of closing. This also caused the elimination of the AS IS addendum.

Of course the warranty verbiage can still be written into the agreement if that is a buyer concern, but it is no longer automatically part of the purchase agreement.

Upon reviewing older forms, the committee making the decision concluded that this language was in place before Minnesota had a seller disclosure requirement. Now, if something occurs between the time of the purchase agreement and closing, it is the seller's duty to notify the buyer of such changes in writing.

An option to purchase a Home Warranty covering these systems is now also part of every Minnesota purchase agreement. This warranty is often purchased for the buyer by the seller but does not necessarily replace the warranty in the purchase agreement. If the warranty company refuses to cover system failure it used to fall back on the seller to cure. That is no longer the case.

Sharlene Hensrud, RE/MAX Results Realtor – EmailMinneapolis-St. Paul Realtor


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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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