A Minnesota purchase agreement for a rural property in Crow Wing County includes a septic system contingency. The seller's disclosure indicates the subsurface sewage treatment system (SSTS) is of 'unknown compliance status.' The county requires a compliance inspection prior to sale. Which statement best describes the seller's obligation under Minnesota law?
Correct Answer
A) The seller must disclose the SSTS status and comply with applicable county inspection requirements before or at closing
Under Minn. Stat. § 115.55, sellers must disclose the status of subsurface sewage treatment systems (SSTS) on properties not connected to municipal sewer. When a county (such as Crow Wing County) requires a compliance inspection prior to or at the time of sale, the seller must comply with that county-level requirement. The seller's obligation is to disclose and to satisfy applicable local inspection requirements — not necessarily to complete upgrades before listing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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