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Minnesota Sale/Lease Disclosures
<br /> Property:Multiple Land Parcels, City of Ramsey,Minnesota
<br /> Seller/Landlord Disclosure of Material Facts, Delivery of Reports, and Compliance with Laws. Sellers/landlords are
<br /> hereby requested to disclose directly to buyers/tenants all facts known to sellers/landlords that materially affect the value or
<br /> desirability of the Property and are not readily observable nor known to the buyer/tenant, including,but not limited to, facts
<br /> regarding hazardous materials, zoning, construction, design, engineering, soils, title, survey, fire/life safety, proneness to
<br /> natural hazards such as earthquakes, and other matters, and to provide buyers/tenants with copies of all reports in the
<br /> possession of or accessible to sellers/landlords regarding the Property. Sellers/landlords and buyers/tenants must comply
<br /> with all applicable federal, state and local laws, regulations, codes, ordinances and orders, including,but not limited to,the
<br /> 1964 Civil Rights Act and all amendments thereto, the Foreign Investment in Real Property Tax Act, the Comprehensive
<br /> Environmental Response Compensation and Liability Act, and The Americans With Disabilities Act.
<br /> Americans with Disabilities Act (ADA). The Americans With Disabilities Act (42 United States Code §12101 et seq.)
<br /> and other federal, state and local requirements may require changes to the Property. Have your experts investigate and
<br /> evaluate these matters.
<br /> Taxes. Sales, leases and other real estate transactions can have federal, state and local tax consequences. In sales
<br /> transactions, Internal Revenue Code §1445 requires buyers to withhold and pay to the IRS 15% of the gross sales price
<br /> within 20 days of the date of a sale unless the buyers can establish that the sellers are not foreigners, generally by having
<br /> the sellers sign a Non-Foreign Seller Affidavit. Depending on the structure of the transaction, the tax withholding liability
<br /> can exceed the net cash proceeds to be paid to sellers at closing. Have your experts investigate and evaluate these matters.
<br /> Flood Zones. Many lenders require flood insurance for properties located in flood zones, and government authorities may
<br /> regulate development and construction in flood zones. Whether or not located in a flood zone,properties can be subject to
<br /> flooding and moisture problems, especially properties on a slope or in low-lying areas. Buyers/tenants should have their
<br /> experts confirm whether the Property is in a flood zone and otherwise investigate and evaluate these matters.
<br /> Fires. Properties, whether or not located in a fire hazard zone, are subject to fire/life safety risks and may be subject to
<br /> state and local fire/life safety-related requirements, including retrofit requirements. Have your experts investigate and
<br /> evaluate these matters.
<br /> Hazardous Materials and Underground Storage Tanks. Due to prior or current uses of the Property or in the areas or
<br /> the construction materials used, the Property may have hazardous or undesirable metals (including but not limited to lead-
<br /> based paint), minerals (including but not limited to asbestos), chemicals, hydrocarbons, petroleum-related compounds, or
<br /> biological or radioactive/emissive items(including but not limited to electrical and magnetic fields)in soils,water,building
<br /> components, above or below-ground tanks/containers or elsewhere in areas that may or may not be accessible or noticeable.
<br /> Such items may leak or otherwise be released. If the Property was built before 1978 and has a residential unit,
<br /> sellers/landlords must disclose all reports, surveys and other information known to them regarding lead-based paint to
<br /> buyers/tenants and allow for inspections(42 United States Code §4851 et seq.). Have your experts investigate and evaluate
<br /> these matters.
<br /> Property Inspections and Evaluations. Buyers/tenants should have the Property thoroughly inspected and all parties
<br /> should have the transaction thoroughly evaluated by the experts of their choice. Ask your experts what investigations and
<br /> evaluations may be appropriate as well as the risks of not performing any such investigations or evaluations. Information
<br /> regarding the Property supplied by the real estate brokers has been received from third party sources and has not been
<br /> independently verified by the brokers. Have your experts verify all information regarding the Property,including any linear
<br /> or area measurements, the availability of all utilities, applicable zoning, and entitlements for the intended use. All work
<br /> should be inspected and evaluated by your experts, as they deem appropriate. Any projections or estimates are for example
<br /> only, are based on assumptions that may not occur, and do not represent the current or future performance of the property.
<br /> Real estate brokers are not experts concerning,nor can they determine if any expert is qualified to provide advice on, legal,
<br /> tax, design, ADA, engineering, construction, soils, title, survey, fire/life safety, insurance, hazardous materials, or other
<br /> such matters. Such areas require special education and, generally, special licenses not possessed by real estate brokers.
<br /> Consult with the experts of your choice regarding these matters.
<br /> CONSULT YOUR ADVISORS—This document has legal consequences. No representation or recommendation is made by Broker
<br /> as to the legal or tax consequences of this Agreement or the transaction(s) which it contemplates. This form is not intended to
<br /> substitute for any disclosures the law requires that the parties make to each other. These are questions for your attorney and financial
<br /> advisors.
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