Every year, thousands of homes are bought and sold in Minnesota without issue. But sometimes, serious problems surface after closing – a flooded basement after the first big storm, a cracked foundation hidden behind finished walls, or a major plumbing failure that had been slowly developing behind the scenes. These situations can quickly turn a dream home into a legal and financial nightmare. Understanding the rights and responsibilities under Minnesota law is crucial for both sellers and buyers to avoid costly real estate disputes. A seller’s failure to disclose known problems – or a buyer’s failure to fully understand what’s been disclosed – can lead to significant consequences.

This article outlines the legal disclosure requirements for Minnesota home sellers, explains the responsibilities of buyers, and provides practical guidance to help both sides mitigate risks during a real estate transaction.

Minnesota’s Seller Disclosure Requirements

In Minnesota, home sellers are required by law to provide prospective buyers with a written disclosure of issues before the buyer signs a purchase agreement. Under Minnesota Statute § 513.55, this disclosure must include all material facts the seller is aware of that could adversely and significantly affect an ordinary buyer’s use and enjoyment of the property or any intended use of which the seller is aware.

The disclosure must be made in good faith, based on the seller’s best knowledge at the time. Often, sellers complete a standardized form provided by their real estate agent. This form covers a wide range of topics – including the home’s structural integrity, mechanical systems, water damage, pest history, and more.

Sellers must take this obligation seriously. Failing to disclose past repairs (like fixing a leaky pipe or remediating mold) can open the door to legal action for misrepresentation or breach of contract. Sellers often face a delicate balance: disclose everything and risk scaring off buyers – or omit details and risk future liability. When in doubt, it is safer to err on the side of full transparency.

Legal Responsibilities for Sellers and Buyers

Sellers must disclose known material facts that could influence a buyer’s decision to purchase or the value of the property. Concealing defects or misrepresenting the condition of the home can lead to claims of fraud, negligence, or breach of contract.

Buyers, meanwhile, have responsibilities of their own. It is not enough to receive the disclosure form – they must review it carefully, ask follow-up questions, and conduct a thorough inspection. Hiring a qualified home inspector is strongly recommended. If a buyer fails to take these steps before closing, it may limit their ability to recover damages on undisclosed defects.

Practical Advice for Home Sellers

To minimize legal risk and ensure compliance with Minnesota law, home sellers should:

1. Complete the Disclosure Form Honestly: Fill out the disclosure completely and accurately. If you are unsure about an issue, disclose it. When in doubt, transparency protects you. Consulting a litigation attorney with real estate experience can help you navigate gray areas.
2. Disclose All Known Issues: Be upfront about water damage, foundation problems, mold, or pest infestations, or any other defects. These kinds of issues frequently lead to misunderstandings or disputes between buyers and sellers.
3. Maintain Detailed Records: Keep documentation of all repairs, upgrades, and inspections. These records can support your disclosures and demonstrate good faith if questions arise.
4. Seek Legal Guidance: If you are uncertain about how to disclose a known issue, legal advice can help protect you from potential claims down the road.

Practical Advice for Home Buyers

To protect themselves, buyers should consider the following:

1. Read the Disclosure Form Carefully: Don’t skim it – understand what’s being disclosed and ask the seller to clarify anything that seems vague, missing or inconsistent.
2. Schedule a Professional Home Inspection: Even if the home looks good on the surface, an inspector can uncover hidden issues. Use the findings to negotiate repairs or price adjustments – or to walk away.
3. Understand Your Legal Options: If significant undisclosed defects are discovered after closing, you may have recourse under Minnesota law. Potential claims include fraud or breach of contract.
4. Preserve the Evidence: If a defect emerges, do not rush to fix it if possible. Document the issue, notify the seller, and consult an attorney before making repairs. Preserving evidence strengthens your claim.
5. Seek Legal Advice Promptly: A litigation attorney with real estate experience can help assess whether you have a viable case and guide you on the best next steps.

When Real Estate Disputes Arise, We are Here to Help

Even when everyone acts in good faith, disputes can arise – particularly over whether a defect should have been disclosed, or whether a repair was adequate.  At Henson Efron, our litigation attorneys have experience representing both buyers and sellers in real estate conflicts involving nondisclosure, misrepresentation, and breach of contract. Whether you’re pursuing a claim or defending against one, we work efficiently to protect your interests and resolve disputes with clarity and confidence.

Contact us to discuss how we can assist with your residential real estate litigation matter.

The purpose of this article is merely to provide general information and should not be construed as legal advice.