Did you know that as a seller, you must disclose what
are called “material facts”?
Any piece of information that could alter a buyer’s
decision to buy is a loose definition of a material fact.
Here are some examples:
• A basement that leaks.
• A roof that allows water into the house.
• A furnace that has a cracked heater core.
• A person who was shot and killed in the house.
• Existence of lead in the paint on a house built
prior to 1978.
• Knowledge that the road in front of the house will
be widened to within ten feet of the house.
• The Homeowners Association or local
municipality has levied a special assessment on
the property.
• Your neighbor’s fence in on your property by five
feet (or vice versa).
In MN, sellers must complete a document called a
Seller’s Property Disclosure Statement, in which
everything the seller knows about the condition of the
house must be disclosed. By law and according to our
Realtor Code of Ethics, agents must also disclose what
we know, even if a seller asks us to hide something.
Concealing material facts from buyers may very well
end up as a lawsuit and cost a seller many thousands
of dollars.
There is no such thing as Buyer Beware anymore, thank
goodness. When in doubt, disclose. Be transparent, and
when you are unsure, consult your Realtor.
