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• Getting your house ready
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• Understanding Minnesota's
  disclosure requirements
• Understanding your buyer's
  financial position

Understanding Minnesota's seller disclosure requirements
For many years, sellers in Minnesota provided voluntary disclosure statements to buyers on their property, and have been required to provide disclosures regarding wells, septic systems, underground storage tanks and lead paint. As of January 1, 2003, sellers are required to provide disclosures on their property.

The Mandatory Seller Disclosure Law applies to transaction involving single family, condo and town-home properties. The Law also applies to all sellers, even For Sale By Owners, investors of rental property and relocation companies. Some exceptions include new construction, vacant land or multiple unit buildings, such as duplexes.

Sellers must disclose, to the best of their knowledge, "Material facts pertaining to adverse physical conditions of which the seller is aware that could adversely and significantly affect a buyer's use and enjoyment of the property or any intended use of the property of which 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 must be in writing. The Seller Disclosure Statement must be available to the buyer prior to the buyer writing a Purchase Agreement .

There are three ways you, as the seller, can satisfy the disclosure requirement:

1. Complete Edina Realty's Seller Disclosure Statement.
2. Provide an inspection to the buyer that has been 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.
3. 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, the Purchase Agreement must contain the following disclosure statement: "Buyer and seller hereby agree that buyer is waiving buyer's right to receive material disclosures from the seller (pursuant to M.S.513.60)."

Again, 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.

A seller who fails to disclose any known material defect is liable to the buyer who may bring action against the seller.

In addition to the disclosure requirements put in place by the state of Minnesota, several municipalities including Minneapolis and St. Paul require truth-in-housing presale inspections. E-mail us for more information.