Point of Sale in St. Paul

By
Real Estate Agent with Tangletown Realty

inspector with magnifying glass and file folderCity mandated point of sale inspections are not done in many communities, but they are rapidly becoming more popular in the Minneapolis and St. Paul area.  The theory behind point of sale inspections is that the inspections prevent neighborhoods from deteriorating by maintaining a minimum standard of housing maintenance. 

For many years cities did not require inspections in order to sell.  Minneapolis had a disclosure inspection which only marked items as B (below minimum), M (meets minimum standards), H (hazardous), and C (comment).  There were no required repairs as there are today.  With "code compliance" or required repairs, the seller has no choice but to make certain repairs before selling their home.  Most point of sale inspections locally are moving to required repairs or compliance standards.

St. Paul is moving in that direction as well.  The April 11 meeting of the Saint Paul Truth-in-Sale-of Housing Board of Examiners produced a recommendation that St. Paul's current disclosure system be revised to become a compliance system.  This recommendation was followed the next day by The St. Paul Area Association of REALTORS® Position Statement which opposes this action.  

The rest of the story is at Real Estate Snippets


Comments (3)

Boomer Jack Boardman & Carl McIntyre, the Codgers
Noted Curmudgeons - Saint Paul, MN

Bonnie: Do you know how this kind of regulation has worked out elsewhere?active rain|active codgers, your active fans image

 

 

Jay

Apr 15, 2007 05:37 AM
Bonnie Erickson
Tangletown Realty - Saint Paul, MN
Jay,  It's my understanding that point of sale inspections are not universally done throughout the country.  As with other things real estate related, it's local, local, local.  Some areas require pest inspections (termites anyone?), structural inspections, etc.  As far as knowing how it works out, I'm only familiar with our metro area.  From an agent's perspective, the city inspections vary by town.  Minneapolis' inspection is very superficial with a 4 page checklist.  The inspection does not cover other extraneous items.  Several suburbs have a reputation for being very tough in their point of sale inspections which includes South St. Paul, Richfield, Crystal and New Hope.  Those towns do not use a checklist but give the home seller a written list of required repair items which have to be done in order to get their certificate of compliance.  I had a South St. Paul investor client who ended up in court because his listing agent forgot the inspection appointment and didn't tell him he had forgotten it.  A couple weeks later, my client got a summons to go to court!  Enforcement is really key.  If the city makes the list and the seller can still close without completing the repairs, why have the inspection?  If there are teeth in the ordinance, then it gets done.  Minneapolis doesn't go against the home seller.  They penalize the agents and title company if they close without the certificate of compliance from the city.
Apr 15, 2007 09:05 AM
Lisa Dunn
Edina Realty - Minneapolis, MN
www.TwinCitySeller.com
Sad. They just don't add any value to the sale, or improvement of the housing stock.
Apr 17, 2007 11:01 PM

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