Real Estate

We provide experienced guidance in the sale or purchase of residential or commercial property.

Residential

A residence is not only a major financial asset, but also a home for loved ones. Real estate matters are complex transactions involving a multitude of details and legal documents. When buying or selling real estate, a Purchase Agreement is often one of the first documents to be signed in the process. It is a binding legal contract and should be reviewed by an attorney before signing, especially in cases of "For Sale By Owner" and Contracts for Deed. Among important issues to consider are the effect of contingencies, disclosures of the property’s condition, included (or excluded) personal property, financing terms, and critical deadlines.

Minnesota law provides special rules for common interest properties including condominiums and townhomes. If you move from a free standing single family home into a condominium complex, you will experience benefits including freedom from many maintenance responsibilities but you will also give up some independence of making decisions regarding the use and appearance of your unit. As a member of the Homeowner Association, you become part of a statutory community with voting rights, but subject to regulations and assessing authority. Berg Myers can help you understand the terms and conditions in these Homeowner Association documents.

Minnesota law requires that you receive a Disclosure Statement with copies of certain legal documents. You can cancel a purchase within 10 days after receiving this Disclosure Statement. You should familiarize yourself with the contents of these documents. We can review these documents to identify and explain any areas of concern.

We encourage you to secure title insurance, which protects you from unexpected costs and potential litigation should title issues arise. We offer review of the resulting Title Commitment documentation, to assist with resolution of any required corrections, research, and documentation required to secure your coverage prior to closing.

Berg Myers can also act as the closers for your private party transactions. This can save a substantial amount of money over having a title company and real estate agents involved in the transaction. This is certainly not appropriate for every transaction, so call us today to see if your situation is appropriate for our closing assistance.

Estate planning considerations 

While estate planning is discussed separately, each real estate transaction impacts estate planning and potential probate issues. For example, the deed may transfer title to a single Purchaser, Joint Tenants or Tenants in Common, each with different results in the event of an owner’s death. Berg Myers can review real estate transactions from the perspective of estate planning needs and provide appropriate assistance.

Transfer on death deeds

In Minnesota, a homeowner or property owner can execute and file a Transfer on Death Deed that transfers their property into someone else’s name upon their death. If executed correctly, the person who is designated as the recipient on the deed only has to take a certified copy of the owner’s death certificate and an Affidavit of Identity and Survivorship to the county recorder’s office to have the property re-titled into their name. Berg Myers can help you determine if a Transfer on Death Deed is an appropriate tool for you.

Contract for deed

There are certain times that a Contract for Deed is the preferred method to purchase or sell real estate between private parties. Because there are no third parties involved, this can be a quicker option than a traditional sale. A Contract for Deed offers benefits to both the buyers and sellers, but does have drawbacks for both as well.

They offer the buyer an opportunity to purchase property without the restrictions of traditional financing. However, there are fewer protections in case of default, as well as typically higher interest rates. For the Seller, a Contract for Deed offers a larger pool of potential buyers, as well as the ability to receive a stream of income for the duration of the contract. However, the property is still in the seller’s name, and they do not receive the full purchase, until the completion of the contract.

These are just a few of the benefits and drawbacks. Berg Myers can further outline the benefits and drawbacks of a Contract for Deed to help determine if it is right for your transaction.

Commercial 

Besides all of the concerns surrounding residential real estate transactions, commercial property offers many additional complexities. Surveys may need to be obtained and reviewed. Zoning and license approval may be needed from local agencies. Additional title insurance coverage may need to be arranged. Due diligence by the Purchaser may require soil tests, inspections by engineers and environmental impact reports. Commercial lenders have additional requirements, or the Seller may provide financing through Contracts for Deeds or private mortgages. We represent both Sellers and Purchasers through what is normally a lengthy and complex transaction involving a number of related parties. We advise Purchasers regarding the use of a separate legal entity such as a corporation or limited liability company to shelter their personal assets from legal claims arising out of the ownership of the commercial property, and prepare the documents to create your new company. Some of our clients purchase or sell a business with the real estate.