So, you want to write a purchase agreement on a home in the Twin Cities but still need to sell your current home – what do you do? I have been asked this question recently from clients who have found a great home in Richfield but still need to sell their home which is out of state.
Bottom line, in Minnesota, you can write an offer that is contingent upon the sale of your home. However, in this position, you lose some negotiating power because even if the seller accepts your offer, they can continue to offer the house for sale on the MLS until you remove the contingency. And, because you have limited control over if / when your home will sell, this could put you in a bind as far as completing the purchase agreement.
The seller can also entertain other offers even though they have accepted yours. If they get another offer that they like, they can request that you remove your contingency within 72 hours by sending you a Request for Removal of Contingency.
In MN, once this form is received, you will have 72 hours to sell your home and provide the seller with a Notice of Intent to Remove Contingency which must be accompanied by a copy of a valid, fully signed purchase agreement for the sale of your current home and can not be contingent upon anything else besides financing and must have a closing date no later than the closing date for the new home.
You will get your Earnest Money back if:
- You can not remove the contingency and the seller moves forward with another offer.
- You decide to cancel the purchase agreement before the contingency is removed or can not close before the date on the purchase agreement.
- You remove the contingency but still have an Inspection Contingency, you can still back out during that designated time period for any reason.
- The seller backs out for any reason.
- You have all contingencies removed but can not obtain the financing to purchase the home.
You will lose your earnest money if:
- You remove all contingencies, obtain financing and decide that you just don’t want to go through with the transaction. Translation….make sure you want the home before this point.
Jen McKinnon
Realtor/Investor
612.384.1073
jen[at]mnrealestateteam[dot]com
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