A buyer and seller in Anoka County, Minnesota execute a purchase agreement. The seller is a facilitator (non-agent) under Minnesota law. After closing, the buyer discovers that the facilitator knew about significant water damage in the basement but did not disclose it. Under Minnesota's facilitator statute, which statement best describes the facilitator's disclosure obligation?
Correct Answer
D) The facilitator was required to disclose known material facts that could adversely affect the buyer's use or enjoyment of the property
Under Minn. Stat. Ch. 82, a facilitator (non-agent/transaction coordinator) in Minnesota does not represent either party and owes no fiduciary duties. However, Minnesota law does impose certain limited statutory duties on facilitators, including the obligation to disclose to both parties any known material facts that could adversely affect the buyer's use or enjoyment of the property or that could affect the ability of the parties to complete the transaction. Knowingly concealing significant water damage would violate this limited but real statutory duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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