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Everything You Need To Know about Disclosure Requirements for Selling Real Estate in Minnesota

Everything You Need To Know about Disclosure Requirements for Selling Real Estate in Minnesota

When an owner sells real estate property, they must disclose information about a property’s condition in a written document. In this article, we’re taking a closer look at disclosure requirements for Minnesota real estate.

Why Does a Seller Need to Provide Disclosure?

The Minnesota law requires that the seller provide a written disclosure to the potential home buyer before signing the agreement to sell. According to the General Disclosure Requirements, this document must contain all information the seller is aware of that might negatively affect the buyer’s use and enjoyment of the property and its intended use.

It is in the seller’s interest to disclose any issues, even if they aren’t covered by the law, since it can help prevent any legal action from an unsatisfied buyer after the agreement has been signed. If you need to consult an expert regarding this matter, check out the list of realtors in Minnesota to get professional assistance.

What is the Condition of the Property Disclosure?

The Condition of the Property Disclosure Form is a nine-page document that the home seller must fill out, honestly answering the questions. Compared to other states, Minnesota’s disclosure form is more specific.

What is a seller obliged to state in the Condition of the Property Disclosure?

Here are the statutory disclosure requirements a seller as the only source of all the information is required to provide:

What happens if the seller fails to disclose critical information?

A seller or real estate salesperson can become liable for failing to provide required disclosures. The time to file a lawsuit or go to arbitration may be limited under Minnesota law or by the agreement between the buyer and seller. For that reason, any homebuyer who considers themselves a victim of a failure to disclose should consult an attorney as soon as possible.

What is the Residential Lead-Based Paint Hazard Reduction Act?

Issued back in 1992, the Residential Lead-Based Paint Hazard Reduction Act requires the disclosure of any lead-based paint (including chipped paint) in a house. However, this applies only to buildings constructed before 1978.

The act aims to protect residents against lead exposure from paint and lead poisoning. The seller must inform the buyer whether the building has any reports or records of lead-based paint hazards and provide a 10-day period for the buyer to undertake a risk assessment or paint inspection.

When aren’t disclosures required? 

There are some exceptions to when disclosure must be provided, described in Minnesota Statute 513.54. This document specifies that disclosure requirements do not apply to the sale of non-residential property. Also, if the property is being transferred to heirs, to the seller’s relatives, or due to a foreclosure or a decree of divorce, a disclosure isn’t needed. In addition, this law states that a disclosure does not have to be made when transferring a newly constructed residential property, meaning that the disclosure applies only to real estate that has been previously owned or occupied.

What’s next

Home disclosure is an essential legal requirement that shouldn’t be overlooked. It helps to protect sellers from potential lawsuits if there’s an issue with the property. If you find it challenging, working with a professional is always a good idea. The top realtors in Minneapolis, MN are happy to guide you through the paperwork and assist you with questions.

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