State guide

Buying or Selling a Home in Minnesota: What You Need to Know

Buying or selling a home in Minnesota means working through a set of state-specific laws on disclosures, taxes, and agent relationships that you won't find in the exact same form anywhere else.

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TL;DR

Buying or selling a home in Minnesota means working through a set of state-specific laws on disclosures, taxes, and agent relationships that you won't find in the exact same form anywhere else. Sellers fill out a detailed property disclosure, a separate well certificate, and a radon warning, while buyers get strong rescission rights on condo deals and a valuable property tax break for living in the home as their main residence. Closings are usually handled by title companies — not attorneys — so it pays to understand what you're signing before you get to the closing table.

9 things every Minnesota buyer or seller should know

  • Minnesota sellers of homes with one to four units have to fill out a Seller's Property Disclosure Statement before signing a purchase agreement. The form covers what the seller knows about the roof, foundation, basement, plumbing, electrical, heating, and any known defects. If the seller hands over the disclosure after the purchase agreement is signed, the buyer has three business days to back out of the deal.

  • If you live outside Minnesota and sell a home in the state, the buyer is required to withhold 3% of the purchase price and send it to the Minnesota Department of Revenue. This withholding goes toward your state income tax on the sale and is separate from any federal withholding. It is filed on Form MWR at closing, and if too much was withheld you get the difference back when you file your Minnesota return.

  • Since the NAR settlement took effect on August 17, 2024, you have to sign a written buyer representation agreement with an agent in Minnesota before they can show you any home — including virtual tours. The agreement spells out exactly how much your agent will be paid and the geographic area where they will work for you. Agent pay can no longer be advertised in the MLS, so it is typically negotiated as a seller concession in your offer.

  • Minnesota gives a property tax break called the homestead classification to owners who live in the home as their main residence. You apply with your county assessor after you close, and in most counties the deadline is December 31 to get the benefit for the following year. Filing is one of the highest-dollar steps you can take after buying a home, and it often does not get emphasized at closing.

  • Any Minnesota property with a well on it requires a Well Disclosure Certificate when the deed is recorded — even if the well is sealed or no longer in use. The seller signs the certificate listing every well on the property and its status. This is a separate legal document from the standard property disclosure and is required to record the sale with the county.

  • Minnesota law requires sellers to give buyers a written radon warning before or at the time the purchase agreement is signed. Minnesota has higher-than-average radon levels compared to most of the country, so this is more than a formality. The seller has to share any radon test results they know about, but they are not required to test the home if they never have.

  • Minnesota charges two state-level taxes at a home closing. The State Deed Tax is 0.33% of the purchase price (so $1,320 on a $400,000 sale) and is usually paid by the seller. The Mortgage Registry Tax is 0.23% of the loan amount and is usually paid by the buyer when they take out a mortgage.

  • Minnesota is mainly a title state, which means residential closings are typically handled by a licensed title company rather than an attorney. Hiring a real estate attorney is optional, not required by law, and most home buyers and sellers in Minnesota do not use one. Properties under the Torrens (registered land) system may add extra steps but still close through a title company.

  • Minnesota's fair housing protections are broader than federal law. On top of the federal categories like race, religion, and disability, the Minnesota Human Rights Act also protects marital status, sexual orientation, gender identity, and people receiving public assistance — including housing vouchers. Agents and landlords cannot screen, steer, or treat clients differently based on any of these characteristics.

The guides

Common questions

Do I need a real estate attorney to close on a home in Minnesota?
No. Minnesota is a title state, so residential closings are normally handled by a licensed title company instead of an attorney. Hiring an attorney is optional, and most home buyers and sellers in Minnesota do not use one. You can hire one to review documents if you want extra eyes on a complex situation, like a Torrens-system property or unusual contract terms.
Who pays the deed tax and the mortgage tax at closing?
By convention in Minnesota, the seller pays the State Deed Tax (0.33% of the purchase price) and the buyer pays the Mortgage Registry Tax (0.23% of the loan amount). These are state-level taxes set under Minnesota statutes. They are negotiable in the contract, but the default in standard Minnesota purchase agreements follows this split.
What does a seller in Minnesota have to tell me about the house before I buy?
Minnesota sellers fill out a Seller's Property Disclosure Statement listing known defects, plus a separate Well Disclosure Certificate if there is a well, a written radon warning, and a disclosure if the home was ever used to manufacture methamphetamine. If your home is in a condo or townhome association, you also get a resale disclosure packet with the HOA's rules, finances, and budget. If any required disclosure is delivered late, you usually get a window to back out of the deal.
Do I have to sign a contract with a buyer's agent before they show me homes?
Yes. Since the NAR settlement took effect on August 17, 2024, every buyer in Minnesota has to sign a written buyer representation agreement before an agent can show them any property — including over a video call. The agreement has to spell out exactly how much your agent will be paid and the area where they will work for you. Agent pay can no longer be advertised in the MLS, so it is usually negotiated through a seller concession in your offer.
How do I get the property tax break for living in my Minnesota home?
After you close, you apply for the homestead classification with your county assessor. In most Minnesota counties the deadline is December 31 to get the lower tax classification for the following year. Homestead status meaningfully lowers your property tax bill compared to the non-homestead rate, and the application is generally a one-time step as long as you keep living in the home.
Is radon really a concern when buying a home in Minnesota?
Yes. Minnesota has higher-than-average radon levels, and state law requires sellers to give buyers a written radon warning before or when the purchase agreement is signed. Sellers must share any radon test results they have but are not required to test if they never have. Buyers can have the home tested during inspection, and mitigation systems are common and usually affordable.
What's different about selling a condo or townhome in Minnesota?
If your home is part of a common interest community (a condo, townhome, or planned development with an HOA), you have to deliver a resale disclosure packet from the association to the buyer. The packet includes the declaration, bylaws, rules, current budget, and most recent financials. Once the buyer gets the complete packet, they have ten days to back out of the deal — this rescission right is set by state law and cannot be waived in the contract.
I live out of state — will Minnesota take tax out of my home sale?
Yes. If you sell a Minnesota property and you are not a Minnesota resident, the buyer is required to withhold 3% of the purchase price and send it to the Minnesota Department of Revenue. This is filed on Form MWR at closing and counts toward your Minnesota income tax on the sale. If you overpaid through the withholding, you get the difference back when you file your Minnesota return.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.