Unit 3: Disclosure Requirements Flashcards
What must the seller of a residential property do before signing the purchase agreement?
Filling out a seller’s disclosure in writing
What is a material fact?
A fact that could adversely and significantly affect a buyer’s use and enjoyment in the property.
T/F A seller may give the disclosure to licensee representing the buyer rather than the buyer.
True
T/F Seller can’t rely on a qualified third party to make the disclosures.
False. Sellers can use a qualified home inspector.
T/F A home being used as a methamphetamine lab must be disclosed.
True. There is an additional disclosure regarding this information.
What are the 5 situations when disclosures are not required?
- Third party inspection
- Foreclosure
- Selling to a current tenant
- Selling to a family member
- Gifting property
While foreclosures do not require disclosures, what is the one exception?
A lender selling a home acquired in a foreclosure.
In Minnesota, what are the 4 situations that are not considered a material fact?
- HIV or AIDS
- Suicide, accidental death, or natural death
- Paranormal activity
- Located in a neighborhood containing adult family home, community-based residential facility, or nursing home
How long does an owner have to bring civil action to against past owner for failure to disclose?
Within 2 years of closing
T/F Minnesota law requires sellers to disclose before signing and accepting an offer the presence of wells and septic systems on the property.
True
What information about wells and septic need to be told?
- Location
- Compliance with laws
- Use (working, not working, sealed)
What is the time period a seller is liable for inaccurate well and septic disclosure?
Well is 6 years
Septic is 2 years
Who issues a Certificate of Compliance?
A licensed septic inspector
T/F The seller is required to supply the buyer with a current Certificate of Compliance for the septic system.
False. They do not need it to be current but provide any past certificates.
For an existing septic system how long is a Certificate of Compliance valid?
3 years
For a new septic system how long is a Certificate of Compliance valid?
5 years
A property has added on another bathroom, what is required?
Certificate of Compliance
Are storage tanks on a property considered material fact?
Yes and need to be disclosed.
What size tank also requires compliance with the Pollution Control Agency?
A tank exceeding 1,100 gallons.
What must be recorded if there is a leaking storage tank on a transferring property?
An affidavit
How many days in advance does the PCA need to be notified of before either an installation or removal of a storage tank?
10 days
How many days after installation or removal of a storage tank does the owner need to fill out the required PCA forms?
30 days
