In Minnesota, earnest money is a conditional payment of money that a buyer customarily makes upon acceptance of an offer to purchase real property. Earnest money — although common — is not a requirement for any real estate transaction, because the promises that the buyer and the seller make to each other in the purchase agreement constitute adequate legal consideration for the transaction.

However, it is customary for any earnest money to be provided in the form of a personal check.

Minnesota Statutes, Section The standard purchase agreement for residential real property produced by the Minnesota State Bar Association Real Property Section specifically provides an option for the earnest money to be held by the seller until closing. Sellers would be in a better position if they had the right to retain the earnest money pending closing — but they must get the buyer to agree to such an arrangement.

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The vast majority of Minnesota real property transactions are completed using a real property purchase agreement prepared by a Minnesota real estate broker or salesperson. However, there is much that can go wrong with Minnesota real property purchase agreements, and mistakes can be difficult to correct. Minnesota attorneys may prepare a real property purchase agreement in a different manner than a purchase agreement which was prepared by a Minnesota real estate broker or salesperson, in order to better serve the client.

Some of the larger Minnesota real estate brokers may even have an interest in promoting the services provided by related title insurance companies.

On occasion, the interests of a Minnesota real estate broker may not be completely consistent with the interests of its clients. However, even if a Minnesota real estate broker is acting consistent with the interests of its clients, unless a Minnesota real estate broker or salesperson is also licensed as a Minnesota attorney, they are not permitted to give legal advice. Minnesota real estate brokers and salespersons are limited in the advice that they can provide to their clients, since M.

It shall be unlawful for any person or association of persons, except members of the bar of Minnesota admitted and licensed to practice as attorneys at law. Real estate closing services. Nothing in this section shall be construed to prevent a real estate broker, a real estate salesperson, or a real estate closing agent, as defined in section Prohibition against discouraging use of attorney. Licensees shall not discourage prospective earnest money interest to a real estate transaction from seeking the services of an attorney.

The terms of any purchase agreement are unique to the circumstances of a particular transaction, and may have significant legal consequences. Therefore, all parties to a Minnesota real property purchase agreement should separately retain legal counsel how do i earn cash in cityville order to properly advise them with respect to such matters.

Please note that an enforceable contract may be created once any purchase agreement has been signed by both the buyer and the seller, and it may not be possible to make any changes to the contract thereafter.

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Please contact Minnesota Attorney Gary C. Dahle for assistance with the preparation, or review, of any Minnesota real property purchase agreement, ator gary dahlelaw. If you have an e-mail account, and a good Internet connection, Attorney Gary C. Dahle can assist you in any Minnesota County.

Information provided herein is only for general informational and educational purposes. Minnesota real estate law involves many complex legal issues.

If you have a specific legal problem about which you are seeking advice, either consult with your own attorney or retain an attorney of your choice. Dahle, Attorney at Law, is licensed to practice law in the State of Minnesota, in the United States of America.

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Dahle — Client Reviews. Purchase Agreement Line In Minnesota, earnest money is a conditional payment of money that a buyer customarily makes upon acceptance of an offer to purchase real property. Theoretically, the buyer will forfeit any earnest money if: Most of the time, the transaction closes, and things work out just fine. Unauthorized Practice of Law Minnesota real estate brokers and salespersons are limited in the advice that they can provide to their clients, since M.

Therefore, it is always best to seek legal counsel before any purchase agreement is signed. Copyright — All Rights Reserved Gary C. Dahle, Attorney at Law Phone: Minnesota Practice Areas Contact Site Map.