Real Estate

Smith Paulson O'Donnell & Associates, PLC represents individual and commercial buyers and sellers of real estate in Monticello and throughout the northwest Minneapolis metropolitan area in all aspects of real estate transactional and litigation matters. 

We assist clients in connection with boundary disputes, closings, contract for deed law, deeds, evictions, landlord/tenant law, leases, mortgages, title insurance, title problems and searches, Torrens property, and 1031 Tax-Deferred Exchanges.  Partner Gregory V. Smith has been certified as a Real Property Specialist by the Minnesota State Bar Association, and has more than 40 years of experience handling real estate matters. 

1031 Tax-Deferred Exchanges

A 1031 tax-deferred exchange allows you to roll over the proceeds received from the sale of an investment property into the purchase of one or more other like-kind investment properties.  It cannot be used for the sale of your personal residence.  At closing, the proceeds are transferred to a third party who holds them until they are used to acquire the new property.  Capital gains taxes are deferred if all of the exchange funds are used to purchase like-kind investment property.  The deferment is like getting an interest-free loan on the tax dollars you would have owed for a cash sale.  You retain more equity, which helps you move into properties of higher value each time you perform a 1031 exchange.

Real Estate Frequently Asked Questions

Do I need a realtor to sell my property?

If you wish to save the cost of listing with a realtor, you can market your own property by advertising in a local paper, on the internet, or using a public display indicating that the property is "for sale by owner."  When you find an interested buyer, we can prepare the Purchase Agreement for you and continue to represent you through the closing of your sale. 

The benefit of listing with a realtor is that the realtor will do your marketing and showings for you, let you know when they have an interested buyer, and present you with a Purchase Agreement for consideration.  Whether you list your property or market it yourself, always have an experienced attorney review any proposed Purchase Agreements before you sign.  By signing, you are entering into a binding contract based on the terms written in the Purchase Agreement, so that we can ensure your rights are being protected.

What does it cost to sell my own property?

The cost for representation varies depending on the involvement required to close the transaction.  Average fees are generally no more than one percent of your sale price.

In addition to attorney's fees, you are responsible for paying expenses in connection with the sale.  These generally include updating of your abstract of title or the cost of securing a commitment for an owner's policy of title insurance, name searches, assessment searches, title clearance work, state deed tax and recording fees.  These fees vary based on the sale price.

What is the difference between abstract and Torrens property?

In Minnesota, there are two ways to hold title to real property.  Most properties are held as abstract property.  A document called an abstract is prepared and documents the history of the title to your property so that it may be reviewed.  Certain properties are registered through a court action and then are called "Torrens Property."  Title to Torrens property is evidenced by the "Certificate of Title" and an abstract is no longer required.

What is title insurance and why do I need it?

Title insurance is a policy requiring a one-time premium.  The policy is effective for the entire time that you own a particular piece of property and insures that the title is good and marketable except as to those matters specifically excluded from the coverage.  You are not required to purchase title insurance, but you will be required to insure your lender should you place a mortgage against the property.

We can assist you with obtaining the necessary title insurance; Mr. Smith is a licensed title insurance agent and can issue Owner's or Lender's title insurance policy to fit your needs. 

Seek Experienced Legal Representation

Whether you are an individual looking to buy or sell a house, a business looking to buy or sell commercial property, or involved in a real estate dispute, consult with an experienced attorney to ensure your rights and interests are being protected throughout the transaction or litigation.  To schedule a consultation with us to discuss your real estate matter, contact Smith Paulson O'Donnell & Associates, PLC today.