Agent Scott represents seller Patricia in the sale of a home in Eden Prairie, Minnesota. During the listing period, Scott discovers that Patricia has been aware for two years that the home's foundation has a significant crack but never repaired it or disclosed it. Patricia instructs Scott to say nothing about it. Under Minnesota law, what is Scott's correct course of action?
Correct Answer
D) Scott must disclose the foundation crack to prospective buyers because the duty to disclose known material facts overrides the seller's instruction to conceal
Under Minn. Stat. Ch. 82 and the Minnesota Residential Real Property Disclosure Act (Minn. Stat. §§ 513.52–513.60), a licensee may not follow client instructions that require the agent to conceal known material defects from buyers. The duty to disclose known material facts is a statutory obligation that overrides the seller's instruction to remain silent. A significant foundation crack is a material defect that Scott must disclose to prospective buyers, regardless of Patricia's instruction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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