Agenda - Council - 12/10/2013 - Laserfiche WebLink

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Minnesota's Mandatory Seller Disclosure Law For many years, sellers in Minnesota voluntarily provided a disclosure statement to buyers of their property and were required to provide disclosures regarding wells, septic systems, underground storage tanks and lead paint. Sellers are now required to provide disclosures on their property. The Mandatory Seller Disclosure Law applies to transactions involving single family, condo and tawnhome properties. The law also applies to all sellers, even "For Sale By Owners,' investors of rental properties and relocation companies, Some exceptions include new construction, vacant land cr rnrultiple unit buildings, such as duplexes. The ilisclosure Statement 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 betweer the acceptance of a Purchase Agreement and the date of closing, you roust subsequently disclose, in writing, the new information to the buyer. The Seller Disclosure Statement must be available to the buyer prior to the buyer writing a Purchase Agreement. How You Can Satisfy the Disclosure Requirement There are three ways you, as the seller, can satisfy the disclosure requirement: ■ Complete Edina Realty's Seller Disclosure Statement. ■ Provide an inspection report to the huyor that was completed by a qualified third party inspector. (Edina Realty's Horne Services Plus-M' program can provide this service at en affordable price.) If your 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. ■ You and the buyer can agree in writing to w eive your obligation, as the seller, to make disclosures. ff this is the option you and the buyer choose, the Purchase Agreement must contain the following disclosure statement: "Buyer and seller hereby agree that the buyer is waiving buyerrs right to receive material disclosures from the seller (pursuant to M$5,513.6O)." Again, if the condition of the property changes between the acceptance of a Purchase Agreement and the date of closing, you must subsequentiy disclose, in writing, the new information to the buyer. Seiler Liability A seller who fails to disclose any known material defect is liable to the buyer who may bring action against the seller within two years of the date of closing. The edge you need. 01 ra Edina Realty 523 pule a 89ri[sh re Ha;haway aftifiaie