When purchasing a property "As-Is" in Minnesota, the most important thing to remember is that the burden of risk shifts from the seller to the buyer for the period of time between the purchase agreement/inspection and closing. This means that if there is a fire or a hail storm or a tree falls on top of the property after the inspection… or the furnace goes out and all the pipes freeze prior to closing it is the buyer's problem, not the seller's.
This makes a final walkthrough just before closing critical. If you find the property in adverse condition that did exist at the time of purchase agreement you can cancel the agreement and have your earnest money returned to you. But in no event is the seller required to make any repairs on the property.
When you (the buyer) sign and accept delivery of the deed at closing, you are
accepting the current condition of the property as satisfactory… without
authority to pursue the seller after closing for any claims regarding the
condition of the property.
The old Minnesota "As-Is" Addendum to a Purchase Agreement only referred to condition of mechanicals… the 'new' one initiated in October 2012 shifts considerable risks from the seller to the buyer. It is intended for scenarios such as the sale of bank-owned property, investment property and probate estates… scenarios where the seller doesn't have personal experience regarding the condition of the property. This "As-Is" Addendum should not be used along with the Seller's Property Disclosure without seeking legal advice because of inherent conflict and inconsistency.
Sharlene Hensrud, RE/MAX Results – Email– Twin Cities Realtor
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