A purchase agreement for a home in Bloomington, Minnesota is signed by both parties. The seller is an estate (the property owner died intestate). The buyer later learns the property has a known underground storage tank (UST) that was not disclosed. Under Minnesota law, which of the following statements is most accurate regarding the seller's disclosure obligation?
Correct Answer
B) The estate must provide disclosure if the personal representative has actual knowledge of the UST as a material defect
Under Minn. Stat. § 513.52–513.60, estate sales are listed among the exceptions to the mandatory seller disclosure requirement — meaning the estate is not automatically required to complete the full Seller's Property Disclosure Statement. However, the personal representative (executor/administrator) still has a duty to disclose known material defects of which they have actual knowledge. A known underground storage tank is a material defect that could affect value and marketability, and if the personal representative has actual knowledge of it, disclosure is required. The exception for estate sales does not create a license to conceal known defects.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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