Negotiating a MN contract for deed
An Owner financed deal will be supported by a Real Estate Agent or Real Estate lawyer.
We recommend using Boardwalk Premier Realty Steve Vennemann. Specializing in contract for deed financing and properties for over 20 years. Located in the Twin cities metro area part of Saint Paul and Minneapolis.
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The promissory note outlines the terms of the deal including the interest rate, repayment schedule and the consequences of default. To protect from default the owner also keeps the property title until all of the payments have been made.
The buyer will want to have a home inspection.
A knowledgable Real estate Broker “ Steve Vennemann” 651-334-8312
Title insurance.
The seller usually lays out the terms that works for them.
Being they are acting as the bank to finance the house for the buyer they can charge the rate-how long they want to finance the property and amount down they want.
Now the trick with that is the sellers need to offer terms that work for both parties or the buyer will not want to buy the homes. If the seller offers favorable terms such as 10% down 5-6% interest they have a great chance of selling their property. The better terms for the buyer the faster the house-Condo-Town homes-lake houses ect will sell. If you are a seller “ DO NOT ASK FOR 50% DOWN” No buyer is going to pay a high rate and 50% down. Save your self the time and offer flexible terms so you can sell your home fast in which will save you money on a mortgage if you have one and holding the property expenses such as heat-electric-yard work or an association if you have a condo or town homes-lake property.
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A Real Estate Broker or Real Estate Salesperson (often called a Real Estate Agent) is a person who acts as an intermediary between sellers & buyers of Real Estate/Real Property. Their mission is to complete a transaction between the buyer & seller.
Brokers and agents may focus on representing buyers or tenants. However, licensing as a broker or salesperson authorizes the licensee to represent parties on either side of a transaction.
When acting as a buyer’s agent, brokers and salespersons assist buyers by helping them purchase property for the lowest available price under the best terms. The real estate broker owes fiduciary duties to whomever that broker services as a client. The broker must ensure to negotiate in the best interest of the client, and at all times keep the client (buyer) aware of any new information that can help make a solid decision.
What is a Fiduciary?
A Fiduciary is an agent for a Principal/Client. The legal or special relationship of trust, confidence, or responsibility between two or more parties, most commonly a “Fiduciary” and a “Principal/Client”, is called the Fiduciary Duty.
The basic duties that are owed to any real estate buyer whether they are a Customer/non-Client or a Principal/Client are as follows:
Honesty:
No statement or action can result in fraud or misrepresentation. All laws and regulations pertaining to the transaction must be obeyed, including the disclosure of material facts.
Agency Disclosure and Material Facts Disclosure:
Disclosure of agency relationships, including an explanation of the difference between a customer and principal/client relationship, must be made in a timely fashion so that customers can protect their own interests. (e.g. reveal any confidential information). Material facts about properties must also be disclosed.
Accounting:
The agent is required to report to the principal promptly all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the principal.
In addition to Honesty, Agency Disclosure and Material Fact Disclosure and Accounting, a Principal/Client is also owed the following Fiduciary Duties:
Undivided loyalty:
The agent is prohibited from advancing any interests adverse to the principal’s interest or conducting the principal’s business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principal’s interest.
Obedience:
The agent is required to act, following and abiding all lawful instructions, subject to the principal’s continuous control, but not exceeding the scope of the authority conferred by the principal. That is, do not make decisions for the principal.
Reasonable care and diligence:
The agent is required to protect the principal from foreseeable risks of harm, recommending that the principal obtain expert advice or assistance when the principal’s needs are outside the scope of the agent’s expertise.
Confidentiality:
The agent is prohibited from communicating personal information about the principal that was given to or acquired by the agent within the scope of employment as an agent to the principal. Personal information must be kept confidential unless the client releases the agent, or subagent, from this duty. However, the material facts and defects of a property are NOT confidential.
Full Disclosure:
The agent is required to disclose affirmatively all information concerning the transaction (and property) which might affect the decisions a principal makes, informing the principal what the agent knows.
Accounting:
The agent is required to report to the principal promptly all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the principal.
We take these duties very seriously. We look forward in working with you on the purchase or sale of your property.
STEVE VENNEMANN
651-334-8312