Minnesota requires home sellers to provide buyers with a written disclosure before signing a purchase agreement. This disclosure must include all known material facts that could negatively affect the buyer’s use or enjoyment of the property.
The disclosure must be made in good faith, based on the seller’s knowledge. If the seller later discovers that the disclosure was inaccurate, it must be corrected before closing. The purpose is to ensure buyers have reliable information about the home before committing to the purchase. Here are some key points to consider.
General material facts
Material facts include conditions such as roof leaks, basement water problems, foundation cracks, pest infestations or defective heating and cooling systems. These types of issues could significantly impact the value, safety or livability of the property. Sellers are not required to conduct invasive inspections, but they must share any adverse information they already know.
Specific disclosures
Minnesota law also requires sellers to disclose certain issues even if they may seem less obvious. These include information about radon testing and mitigation, the presence and status of wells and whether the property has a compliant septic system. For homes built before 1978, federal law requires disclosure of known lead-based paint hazards. In addition, if the property was ever used as a methamphetamine lab, that fact must be shared with potential buyers.
What sellers do not need to disclose
Not every detail about a property must be revealed. Minnesota law does not require disclosure if the home was the site of a suicide, accidental death or even alleged paranormal activity.
Buyers and sellers can agree in writing to waive the disclosure requirement, although specific rules still apply. A seller who knowingly withholds material facts may face civil liability, making honesty in the disclosure process essential.
