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Thursday, March 19, 2015

Material Fact Disclosure - What Does That Mean?

REAL ESTATE DISCLOSURES...

In real estate, disclosure is a big deal. In fact, 2015 Minnesota Statute 82.68 is all about it.

Subd. 3. specifically goes into detail about Material Facts and if you are concerned about something that should be disclosed as a material fact, I suggest you read it further.

The "rule of thumb" I usually tell sellers it's better to disclose that get sued. That said, they should ask themselves  two things "If I hide this and someone finds out, would they threaten to sue me?" and "If I were buying this house, is there something that is not in plain sight (like rodent nests behind the walls) that could cause me a big headache or cost me a lot of money if I found out about them at a later time instead of knowing right away?"  If you answer YES to either of these questions, you should put it on your property disclosures!

According to Subd. 3. it is not a material fact relating to real property offered for sale the fact or suspicion that the property:
(1) is or was occupied by an owner or occupant who is or was suspected to be infected with human immunodeficiency virus or diagnosed with acquired immunodeficiency syndrome;
(2) was the site of a suicide, accidental death, natural death, or perceived paranormal activity; or
(3) is located in a neighborhood containing any adult family home, community-based residential facility, or nursing home.

Interesting stuff! Want to read more?


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