You need to be adequately informed when buying a property. Minnesota law requires a seller to disclose known material facts and issues.
Essentially, any information that could adversely and significantly affect the use and enjoyment of the property and the intended use of the property should be communicated. Examples include structural problems, water damage, issues with the mechanical systems, such as a plumbing issue, potential presence of radon and death that was not the result of natural causes/suicide/an accident.
So, what can you do when you realize a property has an issue that was not communicated?
Before closing
If you discover the seller failed to disclose crucial information that they were aware of before closing the deal, you can cancel the contract. Carefully re-read the contingency clauses in the purchase agreement to know if you can back out without losing your earnest money.
After closing
If you discover an undisclosed material fact or issue after purchasing the property, you also have options for protecting your rights. However, your case may be more complicated, as you may need to consider legal options. You can resolve the dispute using mediation, or you can file a lawsuit. The purchase agreement will, in most cases, state the resolution processes to be used before litigation.
It’s important for buyers to always review a written disclosure thoroughly upon receipt. Additionally, ask questions about vague details or any concerns you may have to be adequately informed. Doing these can help you spot a problem before closing a transaction.
Cases of buyers finding out a property has a major issue that was not disclosed are not uncommon. If you are having such a dispute with a seller, you should obtain more information to determine the next suitable steps.
