MINNESOTA'S MANDATORY SELLER DISCLOSURE LAW
Sellers in Minnesota are required to disclose adverse facts about their property. Making a complete disclosure is the best way for you to avoid liability from the sale of your home.
The Seller Disclosure Law applies to transactions involving single family, condo and townhome properties. The law also applies to all sellers, even “For Sale By Owners,” investors of rental properties and relocation companies.
The Disclosure Statement
Sellers must disclose, to the best of their knowledge, material facts of which the seller is aware that could adversely and significantly affect (1) a buyer’s use and enjoyment of the property (2) or any intended use of the property of which the seller is aware. In addition, if the condition of the property changes between the acceptance of a Purchase Agreement and the date of closing, you must subsequently disclose, in writing, the new information to the buyer. The Disclosure Statement must be provided to the buyer prior to the buyer writing a Purchase Agreement.
How you can satisfy the Disclosure Requirement
There are three ways you, as the seller, can satisfy the disclosure requirement:
Complete the Seller Property Disclosure Statement. In addition to the general Seller’s Disclosure law, there are a number of disclosure laws for specific issues, such as radon and septic systems. The Seller Property Disclosure Statement will help you with those disclosures as well; or
Provide an inspection report to the buyer that was completed by a qualified third party inspector. If you choose to provide a third party inspection, you are obligated to review the inspection report and disclose any material defects that are inaccurately reported or omitted in the inspection report; or
You and the buyer can agree in writing to waive your obligation, as the seller, to make disclosures. If this is the option you and the buyer choose, use the Seller’s Disclosure Alternatives Form.
A seller who fails to disclose any known material defect is liable to the buyer who may bring action against the seller within two years of the date of closing.