Sarah is selling her Minneapolis home and has accepted an offer from buyer David. The purchase agreement was signed on Monday. Sarah has not yet provided David with a Seller's Property Disclosure Statement. Under Minnesota law, what is the consequence if David does not receive the disclosure statement before signing the purchase agreement?
Correct Answer
B) David may rescind the purchase agreement before closing after receiving the disclosure statement
Under Minn. Stat. § 513.57, if a buyer does not receive the Seller's Property Disclosure Statement before signing the purchase agreement, the buyer has the right to rescind the purchase agreement within a specified period after receiving the disclosure. This rescission right protects buyers who sign before receiving disclosure.
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Related Topics & Key Terms
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Related Concepts
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
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