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The current prices on Minnesota Acreage are nothing short of astounding. There dozens acreage homes that are currently available throughout the north and eastern suburbs of the Minneapolis/St. Paul area. However, buying a foreclosure is different than buying from a more traditional seller. The biggest difference when buying a bank-owned property is that buyers are required to waive their right to a seller’s disclosure. This actually does make sense since no one at the bank actually lived at the home and can properly complete the disclosure. In fact, it is doubtful that anyone at the bank has ever set foot on the property. So when buying a foreclosure on acreage, what other things need to be considered to protect yourself?
**Ask for a Compliance Test for the Septic System.
Most rural homes have a private septic system to handle sewage and waste water. Not all systems are created equal. They are designed for the specific property and size of the home. Even a new septic system can fail if not properly maintained. How do you know if the septic system is working? Ask the bank to have a third party inspect the system and supply a report of compliance. This MUST be written into your purchase agreement as a contingency of purchase. (i.e. Sale is contingent on the buyer reviewing a current compliance certification for the septic system.)
In Minnesota, well disclosure is mandated by state law as a part of the Ground Water Protection Act. A seller must provide information on the location and status of all wells on a property at the time of sale. If this information is known and not provided, the buyer has 6 years in which to file a claim against the seller. If you chose to waive your rights when buying a foreclosure AS-IS and it is a large acreage parcel of land, it is a good idea to visit the MN Dept of Health webpage on Finding Abandoned Wells prior to purchase. Abandoned wells can be very expensive to seal properly. Improper sealing is not only illegal, it can be detrimental to the ground water. Additional information on Private Wells.
**Are there any underground fuel tanks?
Often people looking at acreage for the first time will have questions about the huge propane fuel tank located near the home. These tanks are usually only seen in the city at gas stations where homeowners fill their small propane tanks for the weekend BBQ. In the country, the large tanks are in many backyards as the source of fuel to heat the home and run appliances. But what if there is no visible tank? Don’t immediately assume the home is heated with natural gas. Homes on large acreage are rarely heated with natural gas as the cost of bringing the gas line to the home can be cost prohibitive. Check for underground fuel tanks. Even if there is a propane tank visible, there could be an old fuel tank on the property either above or underground. The removal of underground fuel storage tanks can be dangerous and is regulated by the Minnesota State Fire Marshal as well as the Minnesota Pollution Control Agency.
**Check the Trees!
Buying a home AS-IS also applies to the landscaping. If there are dead trees on the property, it would be a good idea to assess them to see if they died due to a disease. The big three in Minnesota are oak wilt, Dutch elm and the Emerald Ash Borer.
One Final Consideration: when buying any home, especially one in foreclosure, it is essential to get a home inspection. It is never a good idea to think you can "see" everything that is a potential problem by yourself. An inspector goes through the home looking at the mechanics and construction while you look at the cosmetics and aesthetics.
Looking for Acreage or Lakeshore in Minnesota? Contact Me!
Theresa "Teri" Eckholm/REMAX Specialists assists Minnesotans to find their way home with helpful tips and quality service. Dedication to customer service has made Teri the REALTOR® of choice for families in Blaine, Forest Lake, Ham Lake, Lino Lakes and Wyoming areas. Licensed in MN.