Seller’s Property Disclosure Statement: Real Estate Radio Hour Legal Minute, January 25, 2014

My latest Legal Minute touches on Minnesota’s requirement for a Seller’s Property Disclosure Statement in residential real estate transactions.  You can listen to the clip here.

The Seller’s Property Disclosure Statement satisfies the disclosure requirements of Minnesota Statutes Sections 513.52-513.60.  Under Minnesota law, before signing an agreement to sell or transfer residential real property, the seller must make a written disclosure to the prospective buyer. The disclosure must include all material facts of which the seller is aware that could adversely and significantly affect:

(1) an ordinary buyer’s use and enjoyment of the property; or

(2) any intended use of the property of which the seller is aware.

The disclosure must be made in good faith and based upon the best of the seller’s knowledge at the time of the disclosure.

Minnesota Statutes Section 513.54 provides that the seller disclosure requirements in Sections 513.52 to 513.60 do not apply to any of the following:

(1) real property that is not residential real property;
(2) a gratuitous transfer;
(3) a transfer pursuant to a court order;
(4) a transfer to a government or governmental agency;
(5) a transfer by foreclosure or deed in lieu of foreclosure;
(6) a transfer to heirs or devisees of a decedent;
(7) a transfer from a cotenant to one or more other cotenants;
(8) a transfer made to a spouse, parent, grandparent, child, or grandchild of the seller;
(9) a transfer between spouses resulting from a decree of marriage dissolution or from a property settlement agreement incidental to that decree;
(10) a transfer of newly constructed residential property that has not been inhabited;
(11) an option to purchase a unit in a common interest community, until exercised;
(12) a transfer to a person who controls or is controlled by the grantor as those terms are defined with respect to a declarant under section 515B.1-103, clause (2);
(13) a transfer to a tenant who is in possession of the residential real property; or
(14) a transfer of special declarant rights under section 515B.3-104.

As always, archived segments are available here, and be sure to tune in to the show live every Saturday from 10 AM – 11 AM, Central Time, on WCCO Radio 830 AM.

Posted in Blog, Real Estate Law, Real Estate Radio Hour Legal Minute