Unit 3: Disclosure Requirements Flashcards

1
Q

What must the seller of a residential property do before signing the purchase agreement?

A

Filling out a seller’s disclosure in writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a material fact?

A

A fact that could adversely and significantly affect a buyer’s use and enjoyment in the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

T/F A seller may give the disclosure to licensee representing the buyer rather than the buyer.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

T/F Seller can’t rely on a qualified third party to make the disclosures.

A

False. Sellers can use a qualified home inspector.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

T/F A home being used as a methamphetamine lab must be disclosed.

A

True. There is an additional disclosure regarding this information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the 5 situations when disclosures are not required?

A
  1. Third party inspection
  2. Foreclosure
  3. Selling to a current tenant
  4. Selling to a family member
  5. Gifting property
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

While foreclosures do not require disclosures, what is the one exception?

A

A lender selling a home acquired in a foreclosure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

In Minnesota, what are the 4 situations that are not considered a material fact?

A
  1. HIV or AIDS
  2. Suicide, accidental death, or natural death
  3. Paranormal activity
  4. Located in a neighborhood containing adult family home, community-based residential facility, or nursing home
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How long does an owner have to bring civil action to against past owner for failure to disclose?

A

Within 2 years of closing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

T/F Minnesota law requires sellers to disclose before signing and accepting an offer the presence of wells and septic systems on the property.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What information about wells and septic need to be told?

A
  1. Location
  2. Compliance with laws
  3. Use (working, not working, sealed)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the time period a seller is liable for inaccurate well and septic disclosure?

A

Well is 6 years

Septic is 2 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Who issues a Certificate of Compliance?

A

A licensed septic inspector

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

T/F The seller is required to supply the buyer with a current Certificate of Compliance for the septic system.

A

False. They do not need it to be current but provide any past certificates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

For an existing septic system how long is a Certificate of Compliance valid?

A

3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

For a new septic system how long is a Certificate of Compliance valid?

A

5 years

17
Q

A property has added on another bathroom, what is required?

A

Certificate of Compliance

18
Q

Are storage tanks on a property considered material fact?

A

Yes and need to be disclosed.

19
Q

What size tank also requires compliance with the Pollution Control Agency?

A

A tank exceeding 1,100 gallons.

20
Q

What must be recorded if there is a leaking storage tank on a transferring property?

A

An affidavit

21
Q

How many days in advance does the PCA need to be notified of before either an installation or removal of a storage tank?

A

10 days

22
Q

How many days after installation or removal of a storage tank does the owner need to fill out the required PCA forms?

A

30 days