Forms

FAQ

If the closing date passes and the parties do not close the transaction, is the purchase agreement automatically cancelled?No. While failing to close on the closing date is a default by the party causing the agreement not to close, when using the Minnesota REALTORS® Purchase Agreement, the agreement is not automatically canceled. In order to cancel it, the parties must either mutually agree in writing, or one of the parties must do a Statutory Cancellation pursuant to MN Statute 559.217, or one of the parties must obtain a court order stating the purchase agreement is canceled. When the parties both agree the Purchase Agreement should be canceled, a Minnesota REALTORS® Cancellation of Purchase Agreement form may be used.

Is it permissible to rebate a portion of a buyer's agent's commission to the buyer at closing?
Maybe. MN Statute 82.70, Subd. 2, specifically allows a licensee to rebate or split a commission with a party to the transaction, if desired. However, while this might be allowed by statute and presumably allowed for purchases in which no loan is required, it may be prohibited by a lender or other law, if there is a loan required to purchase the property. It is possible that the lender will require the rebate to be addressed on the closing documents, so it is necessary to make the lender aware.

Does the MN REALTORS® produce a form that authorizes a commercial broker to list a property for lease on behalf of a landlord, or does the MN REALTORS® only have a form that authorizes a commercial broker to list a property for sale?
Both types of listings are addressed within one form. The MN REALTORS® form Commercial Listing Contract: Exclusive contains a checkbox at the top of the first page. That checkbox enables the parties (broker and owner) to determine whether the property will be listed for lease, for sale, or both.

When is the "final acceptance date" and what happens if the parties failed to identify that date within the purchase agreement?
The final acceptance date on the Minnesota REALTORS® Purchase Agreement is the date on which the fully executed purchase agreement is delivered to the party (or agent) receiving the accepted agreement. A blank for the final acceptance date appears below the signature line on the MN REALTORS® Purchase Agreement for the convenience of the parties and to help reduce the chance that there is any dispute regarding that date. Although having a final acceptance date identified simplifies the calculation of days in contingencies that reference the final acceptance date, the failure to identify the final acceptance date within the purchase agreement does not impact the enforceability of the purchase agreement. The parties should be able to determine the final acceptance date whether or not the date was identified in the purchase agreement.

What if a seller has already entered into a valid Purchase Agreement with a buyer? Can the seller get out?
If the parties are using the Minnesota REALTORS® Purchase Agreement, and the Purchase Agreement has been executed and delivered, it is binding upon both parties. It may only be canceled according to the terms and procedures outlined in the Purchase Agreement and contingencies therein. The Minnesota REALTORS® Purchase Agreement requires the cancellation, or any alteration, to be done in writing signed by both parties and does not allow for unilateral cancellation by the seller upon receipt of a better offer. However, if there are other contingencies, the agreement may ultimately be canceled based on one of them, and the seller would have the opportunity to sell to the new buyer. For instance, if there is a Minnesota REALTORS® Addendum to Purchase Agreement: Inspection Contingency, the seller may choose not to negotiate or make repairs for the purchaser, which may drive the purchaser to elect to cancel or waive the contingency. (Note: Keep in mind that if a purchaser cancels based on an issue related to the inspection, if the seller becomes aware of the issue, it may be a material fact that would need to be disclosed pursuant to MN Statute 513.55 and MN Statute 82.68.)