Final answer:
The contract for deed disclosure in Minnesota is required when a buyer and a seller enter into a land contract or installment sale, which must inform the buyer about the specific terms and conditions of the arrangement.
Step-by-step explanation:
In Minnesota, the contract for deed disclosure is required to be presented to a buyer when entering a contract for deed arrangement, also known as a land contract or installment sale. This disclosure is particularly important as it informs the buyer of their rights and obligations under the contract and details about the property being purchased. The disclosure usually includes the actual sale price, interest rate, payment schedule, any late fees, and any other terms specific to the agreement. It also informs the buyer of the consequences of defaulting on the contract, which can be severe, since a contract for deed does not provide the same level of buyer protection as a traditional mortgage.
This disclosure is mandated by the Minnesota Uniform Conveyancing Blanks Act and applies specifically to residential properties sold on a contract for deed basis. The purpose of this disclosure is to ensure that buyers are aware of the terms and conditions of the contract and any potential risks associated with such arrangements.