When real estate changes hands in Minnesota, it can be a relatively long process. The seller posts the listing, the buyer makes an offer, the seller responds to that offer and documentation is exchanged.
One type of documentation that needs to be given out is a disclosure form. Using this form, the seller is obligated to disclose any “material facts” that they know about the property. If these things could be detrimental to the use of that property, the enjoyment of the property or even the buyer’s health and safety, the seller must make them known in advance.
What are some examples?
A material fact is just something that is fundamentally wrong with the property, which could include:
- Cracks in the foundation
- Bulging foundation walls
- Rot and decay from old water damage
- Leaks in the roof
- Leaks in the interior plumbing systems
- Electrical hazards which could pose a fire risk
- Past evidence of fire damage
- The presence of mold or other environmental hazards
- Issues with unsafe materials, like asbestos or lead paint
- Broken in-home systems, such as heating and cooling systems or water drainage systems and sump pumps
It is worth noting that a seller is only obligated to disclose the material facts that they are aware of at the time of the transaction. If they are genuinely unaware of an issue, it may be overlooked—although it may still be found during a home inspection. But a seller has to make an honest disclosure and can’t take steps to simply try to hide the damage, such as painting over water damage so that the buyer doesn’t know there’s a leak in the roof.
Disputes can sometimes arise regarding what disclosures should’ve been made, and both parties must understand their legal options.