When you’re selling your property, it’s normal to want to highlight the great features of that property. Sellers commonly reference upgraded amenities, new appliances, and other similar standout characteristics that attract buyers and increase their chances of getting a great offer. While you’re allowed to do this, you may still have to disclose certain imperfections and areas of concern when selling your home. Here’s what your Minnesota real estate attorney wants you to understand about seller disclosures and the laws governing them.
What Are Seller Disclosures?
Seller disclosures are documents that give prospective buyers information about a property that may otherwise not be discoverable without detailed due diligence and research. The goal of these disclosures is to help buyers fully understand the history, condition of the property and any potential hazards the buyer may need to know about if they proceed with the purchase.
The Disclosures Required Under Minnesota Law
For buyers, having more information about a property before moving forward with the purchase can help them feel more confident in choosing the property. In some cases, it’s up to the seller which information to disclose, but other types of information are required by law. This includes the following.
Condition of the Property
Under Minnesota law, sellers are required to provide buyers with information regarding the condition of the property. This includes any known issues that could impact the buyer’s decision to purchase and close on the property, including previous flood damage, cracked walls, damaged support structures, and other similar problems with the condition of the property.
Keep in mind that this law only applies to damage you’re aware of. The home inspection may uncover additional damage, but if you’re not aware of those issues, you can’t be liable for not reporting them.
Lead-Based Paint
The law also requires sellers to disclose any knowledge of lead-based paint being used on the property, even if full remediation efforts have been completed. You’ll need to fill out the lead-based paint disclosure to be in full compliance with the law. Keep in mind that this typically only applies to homes built before 1979. The federal government banned lead-based paint in homes in 1978. If the home was built in 1979 or later, there should be no lead-based paint in the home.
Statutory Disclosures
The law also requires additional disclosures for concerns including following:
- Water wells: If the home has a well on the property, the seller must disclose this fact, even if it’s not the primary source of water for the home. The disclosure should note if the wells are sealed, unsealed, in use, or not in use.
- Individual sewage treatment systems: If the property has its own sewage treatment system, the seller must disclose information about the system including how the system works and whether the sewage goes to a public sewer, septic tank, or other private treatment system.
- Methamphetamine: Meth production can create safety hazards on the property. The seller is required to inform buyers if meth was produced on the property at any point.
- Radon gas: Radon gas is a naturally occurring hazard that can impact properties throughout the state. The seller is required to notify the buyer if there have been elevated radon levels on the property.
What Happens If a Seller Fails to Disclose Information
If the seller fails to disclose any known issues with the property, they may be liable for the cost of mitigation and repairs. Depending on the issue, this can expose you to hundreds if not thousands of dollars worth of added costs. If you know of any safety concerns or material information about the property, be proactive and share that knowledge with the buyer. This will keep you from being liable for repairs in the future.
Work With a Minnesota Real Estate Attorney
If you’re selling your property and are worried about fulfilling your responsibilities with seller’s disclosures, working with a Minnesota real estate attorney can take the stress out of the situation. At Waypoint Law, our team is here to help. Contact us to schedule a consultation and let our experienced attorneys help you identify the necessary disclosures for your property.