Agenda - Council - 09/08/1998 - Laserfiche WebLink

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SELLER'S POLICIES The following is intended to interpret and supplement several of the Conditions of Sale of the HUD Sales Contract, HUD 9548, and to comply as Seller with provisions of Minnesota law. This statement of Seller's Policies incorporated by reference into the Sales Contract is intended to supersede any provisions of the Sales Contract which are inconsistent herewith and will govern all sales of the Minneapolis-St. Paul office of HUD. Further detail concerning the policies and procedures governing HUD properties is available in the HUD Broker Guide which should be reviewed before making a bid on a HLrD-Acquired Property. CONDITION OF SALE A T~es Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual date of closing. Buyer shall pay all real estate taxes due and payable in the year following closing and thereai~r. Current and next year's taxes may be assessed at the non-homestead rate even for owner-occupant purchasers depending on date of HUD acquisition and date of closing. Assessments (By taxing authorities) Buyer and Seller shall prorate as of the date of closing all special assessments certified for payment with the real estate taxes due and payable in the year of closing. Buyer shall assume all other special assessments levied or pending as of the date of this Sales Contract. Water/Sewer bills and property maintenance charges by the city (summary abatement/board- up/nuisance charges), which can become assessments, will be paid in full at closing if presented by the purchaser(s). Water and sewer bills and city maintenance charges not paid at closing become the responsibility of the purchaser. Homeowner Association Fees Foreclosure extinguishes all subordinate debts and liens, including Association Fees. Therefore, HUD will pay at closing only Association fees owing from the date the redemption period ends to the date of closing. Association special assessment installment payments are treated as fees; amounts payable between the date redemption ends and the date of closing will be paid by HUD. It is the purchaser's responsibility to present the Association bill at closing; bills no'c paid at closing will not be paid by I-IUD. CONDITION OF SALE D ' HUD will evidence good and marketable title through a Title Insurance Policy in the Department's name for abstract properties or a Certificate of Title for torrens properties. HUD does not guarantee the availability of an abstract and will not pay to have one reconstructed. CONDITION OF SALE E Seller assumes risk of major loss or damage. Minor loss or damage will not be repaired and may not be used by the purchaser as a basis for not closing; earnest money will be forfeited. Major damage is represented by such items as fire, flood, severe vandalism. Examples of minor damage/loss include but are not limited to such items as a broken door; missing appliances, mini-blinds, or drapery rods/draperies; a damaged or missing light fixture; stained glass windows; leaking water pipes and/or damaged or missing faucets. It is the buyer's responsibility to inspect the property immediately prior to closing to ascertain that no major loss or damage has occurred. Closing on the sale is considered acceptance of the property condition. There is no warranty on condition; all properties are as-is at closing. 2/96