11 min read Feb 03, 2024

What are the Seller Disclosure Requirements in Minnesota?

✏ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.

Sellers are often required to list out all the physical aspects of their property to prospective home buyers. This increases clarity and facilitates a better sale. That is exactly where a seller disclosure statement comes into the picture.

Sometimes to make a quick home sale, sellers tend to disguise the defects in the house. However, if the buyer finds material defects later, the seller may face legal consequences. To avoid these, our guide will take you through seller disclosure Minnesota.

» Selling A House In Minnesota: Know The Process To Sell Your Home In Minnesota.

What are Seller Disclosures?

The Seller Disclosure form is a standard checklist form containing material defects and features of the property. It specifically provides information about the property that may negatively affect the value of the house. 

If there are material defects in a property that may impact the value of the property and the seller is aware of them, then the seller must disclose them. However, sellers should report these defects to the best of their knowledge and understanding. 

The aim of Seller Disclosure is to maintain transparency in the real – estate transaction to keep the buyer aware of any defects present in the house.

» Selling Home As Is In Minnesota: Here Is Houzeo’s Guide On How To Sell Your Home As-Is In Minnesota.

Importance of Seller Disclosures 

Seller’s disclosures serve the following purpose in real estate transactions:

#ImportanceDescription
🔎Give Complete Information About The PropertyDisclosures help communicate the defects present on the property. They ensure that all the stakeholders involved in the transaction are well aware of the property's history.
⚖Protects Sellers Against Legal LiabilitiesOnce you disclose all the known defects present in the house or which come to light during the inspection, you may be exempted from any future liability against those defects.
👍Develops CredibilityHonesty, accuracy and transparency are of utmost importance when selling your house. Disclosures are a way of achieving all of these and thereby enhancing your credibility.

» Sell My House Fast For Cash: Check Out The Best Options To Sell Your Minnesota Home Fast for Cash

Minnesota Real Estate Disclosure Laws

The sellers in Minnesota are bound by specific federal and state laws in relation to the sale of their property.

Minnesota Disclosure laws require home sellers to disclose any major defects that could affect the home buyer’s decision. The law states that the seller should provide a written disclosure to the buyer prior to signing a contract.

Minnesota Seller’s Disclosure Statement also known as the Condition of the Property

As per Minnesota Bar Association, the Condition of the Property Disclosure Form is to be filled by the home-seller. It identifies any known information that would affect the buyer’s decision. The Seller’s Disclosure Form MN must be answered in good faith and to the seller’s best knowledge.

According to Minnesota Statutes § 513.55, the seller should disclose “all material facts that he is aware of that could adversely and significantly affect:

  • an ordinary buyer’s use and enjoyment of the property; or,
  • any intended use of the property of which the seller is aware”.

The Minnesota Seller’s Property Disclosure Statement contains any known material defects. These material facts can include facts such as lead-based paint, flooding, cracked floors or walls, and damaged ceilings.

    ✍ Editor’s Note: Latent material defects are the ones which are not apparent or visibly recognizable defects, but they significantly affect the value of the property. Generally, these defects pose a threat to the safety or health of the occupants.

The seller need not go out of his way to find problems to disclose by hiring his own inspector. The standard Seller Disclosure Minnesota form contains a provision for a home being sold in “as is” condition. This indicates that the seller feels the contract sale price takes into account the condition of the home and he doesn’t intend to repair the property. However, buyers can conduct inspections of the property to ascertain its condition.

» Sell My Home Fast Minnesota: Read Our Blog If You’re In Dire Need To Sell Your House Fast In Minnesota.

Statutory Disclosures to be Made by Seller

Apart from stating features and important aspects of the property, the seller must disclose the latent material defects of the house to the prospective buyer. The seller is required to deliver the Minnesota Real Estate Form to the buyer prior to the contractual binding between the Parties.

    ✍ Editor’s Note: Latent material defects are the ones which are not apparent or visibly recognizable defects, but they significantly affect the value of the property. Generally, these defects pose a threat to the safety or health of the occupants.

Set below are disclosures mandated under Minnesota Disclosure law:

  • Underground Storage Tanks – The seller should disclose if there are any existing storage tanks on the property. The seller must also state specifically whether these are underground or above-ground storage tanks.
  • Water Wells – As provided under Minn. Stat. § 103I.235, the home seller should inform if there are any wells on the property. The seller must also notify whether they are sealed or currently not in use, or in use.
  • Individual Sewage Treatment Systems. As provided under Minn. Stat. § 115.55, it’s the seller’s obligation to disclose how sewage at the property is specifically managed. The seller must inform whether the sewage leads to a sanitary sewer or private system.
  • Radon Gas – As provided under Minn. Stat. § 144.496, the seller must disclose if he has knowledge of radon concentration in the dwelling prior to the signing of the purchase agreement.
  • Methamphetamine Production – As provided under Minn. Stat. § 152.0275, the seller is required to disclose if the property was a site of meth production.
  • Common Interest Community Resale Transaction – As provided under Minn. Stat. § 515B.4-107, if the property is resold then the seller should provide the potential buyer with the “Resale Disclosure Certificate”.
  • Contract for Deed Sales – As provided under Minn. Stat. §§ 559.201-202, a seller who has Multiple Contracts for Deed must provide the home buyer with a disclosure of the possible risks. Multiple sellers refer to a person that has four or more contracts for deeds involving real estate transactions and property during the 12-month period.

Lead-Based Paint Disclosure

Also known as Title X, the primary objective of the Lead-Based Paint Disclosure is to protect residents from possible exposure of lead-paint hazards. Under federal law, the homeowner should comply with the Lead-Based Paint Disclosure. The seller should notify the buyer whether the house has any reports or records of lead-based paint hazards. Minnesota Seller Disclosure laws also mandates sellers must fill out the Lead Paint Disclosure Minnesota form.

The seller can provide a 10-day period for the buyer to do a risk assessment or paint inspection for lead-based paint or lead-based paint hazards. For safety purposes, homebuyers may look for a lead hazard inspection firm by following this link.

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»Sell My House Fast For Cash In Minnesota: Know How to Sell Your House Fast in Minnesota and for the Most Cash!

Failure of Seller to Disclose Material Information

The buyer could sue the seller if the seller intentionally hid the defects despite being fully aware of them. The Minnesota Law specifically allows the buyer to bring a civil action, recover damages, and receive other equitable relief as determined by the court.

Additionally, sellers are only required to disclose defects or flaws that they knew about. You are not responsible to perform an inspection to check every nook and corner of your property for issues. So, make sure to disclose honestly in the Minnesota Seller Disclosure. Litigation can cost a fortune and could waste a huge time for both parties. Seek advice from a professional real estate agent to learn and understand more about the disclosure process.

Most Common Mistakes By FSBO Home Sellers in Disclosures 

The main object of disclosures in any area is to give clarity and perspective to a buyer. Buyers who are looking for a home usually have certain criteria in mind before searching for a home. A seller disclosure acts as a bridge to close these doubts, giving buyers a reason to have faith in you and your deal.

  • One of the biggest mistakes a seller can make is not giving disclosures at all. The lack of trust between a buyer and seller can demotivate a buyer from considering your property altogether. Hence, it is suggested that sellers complete all disclosure formalities as soon as possible, even though it may not be legally required in your state.
  • Likewise, sellers also get an option to mark a point as ‘unknown’ in disclosures. This gives you ample opportunity to be honest in your disclosures. Also, marking a certain disclosure clause as ‘unknown’ shifts the burden on a buyer to inspect that particular problem. Hence, don’t make the mistake of lying on your disclosures, as that would count as fraudulent misrepresentation and attract a lawsuit.
  • Most state laws prescribe that the disclosures should be provided before closing. As an FSBO seller, it is your duty to provide disclosures as soon as possible, since you do not have a real estate agent to do these things for you.
    ✍ Pro Tip: Sellers who are selling their house the FSBO way are advised to keep their Disclosure Statement ready before listing on the MLS. It increases your credibility and reliability from a buyer’s perspective, as they get an idea of the property’s condition early on.

» How To Sell A House By Owner In Minnesota: Are You Considering Selling Your House Without A Realtor? Here Are Our Tips For A Smooth Selling Process.

Tips to Minimize Issues in Minnesota Real Estate Disclosure Documents

  • Review and Verify – There’s a time allowance (some permit 10 days) to review and verify everything about your Purchase and Sales Agreement—also the square footage, home usage, and marketing.
  • Ask Questions – Ask questions when in doubt. This would help you in avoiding future trouble.
  • Hire A Professional Inspector – A professional inspector can help you gather backup information about the property’s condition. You can also opt for a pre-inspection before listing. Minnesota Home Inspectors â€“ Find out the best home inspectors in Minnesota.
  • Disclose Everything – To avoid problems in your home disclosure statement disclose everything you know honestly. Even a minor issue could turn out to be important.
  • Get A Licensed Agent Involved – The best way to avoid disclosure issues is to get a licensed real estate agent who manages and assists in the process.
    ✍ Pro Tip: List Your Property With Houzeo

    One of the best ways to minimize problems in your seller’s disclosure is to Purchase the “Contract to Close Upgrade Package”. A Licensed broker will review your paperwork to make sure it is appropriate. In addition, you should also have the settlement agent review the paperwork so you cover all bases.

    » More: Start your FREE listing NOW!

Final Word: Complexity of Minnesota Seller’s Disclosure

Level of ComplexityAverage
Is Minnesota a Caveat Emptor State? No
Is Minnesota a Non-Disclosure State? No

MN Seller Disclosure laws do not follow the rule of ‘caveat emptor,’ i.e. let the buyer beware. Thus, it is the seller’s duty to disclose all material defects or additional disclosures that may affect the monetary value of the house to the prospective buyer.

Minnesota Seller’s Disclosures Statements are a little complicated. Selling your house FSBO is usually good, but then you would have to deal with all the disclosures on your own. This demands that you be aware of all the disclosure requirements and that any mistake can cost you dearly. Houzeo can help you with this.

    ✍ Editor’s Note: Though selling your home yourself on a For Sale By Owner website can save you thousands in commission, we highly recommend you add a Flat Fee MLS listing to your marketing strategy. Check out the best Flat Fee Minnesota.

» MN Flat Fee MLS

By listing your property with Houzeo, you get access to all forms in electronic format. And that too, for FREE! Houzeo has segregated all the disclosures state-wise so that you don’t have to hunt for Minnesota seller disclosures separately.

Check out some of the Houzeo reviews and how it has helped customers around the US.

*Seller disclosures are primarily the responsibility of a home seller. Regardless of the service, you engage in, you are required to ensure seller disclosures provided by you are complete and accurate to your best knowledge. Houzeo is not a brokerage or a licensed agent. It is a tech platform, and the tips presented here should not be construed as advice for which a real estate or attorney license is required.

Frequently Asked Questions

1. Do you have to disclose a death in a house in Minnesota?

No, sellers are not legally required to disclose the occurrence of prior death in the house to the prospective buyer.

2. Do you have to disclose a murder when selling a house in MN?

No, sellers are not legally required to disclose the occurrence of murder in the house to the prospective buyer.

3. Can a buyer proceed to take action against seller who has lied on the disclosure form?

Yes, buyer can take legal action such a seller by suing him and claiming damages including the costs of repairs.


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