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Effective January 1, 2003 the seller of single family residential property is required by the Minnesota seller disclosure law to make a written disclosure to the prospective buyer prior to the signing of the purchase agreement. It must include all material facts pertaining to adverse condition of the property of which the seller is aware at the time of disclosure. The new law allows the seller to substitute a house inspection report performed by an independant third party inspector in place of the seller's "good faith" written report.
Certain Minnesota cities require a Truth in Housing report. If your city is one of these you must hire an inspector and disclose the results to the buyer before signing your purchase agreement.
If your city does not require a Truth in Housing report, it is still to your advantage to have an inspection. You can require your buyer to find an inspector and pay for the report and provide you with a copy. This is for your good as well as the buyer's. It protects you from being sued later for defects that the buyer finds after the sale. And if the buyer refuses to hire an inspector you have the refusal noted in your sales agreement for your protection against such future litigation.
An inspection addentum to the puchase agreement can specify adjustments that can be made on the purchase agreement or terms on which the buyer may back out.
The buyer may also request a Real Estate Transfer Disclosure Statement on which you state the condition of your home. This statement will protect you as well as the buyer. A real estate attorney or an agent can provide you with this form.
Minnesota law requires you to disclose to the buyer the location of any wells on the property and their condition.
If their is any septic system on your property you are required to disclose this. A standard septic system disclosure state is attached to the purchase agreement. If there is an abandoned septic system on the property, the location must be shown on a map.
An addentum can also be added to the purchase agreement for wetland, shoreland and flood plain disclosure.
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