Jennifer is selling her home in Rochester, Minnesota. After signing the purchase agreement with buyer Marcus, Jennifer discovers a previously unknown crack in the foundation. The closing is scheduled for three weeks away. Under Minnesota's Residential Real Property Disclosure Act, what is Jennifer's obligation regarding this newly discovered defect?
Correct Answer
A) Jennifer must update the disclosure statement to reflect the newly discovered defect before closing
Under Minn. Stat. § 513.55, the seller's disclosure obligation is a continuing duty. If a seller discovers a new material defect after delivering the initial disclosure statement but before closing, the seller must update the disclosure to reflect the newly discovered condition. This updated disclosure then triggers the buyer's right to review and potentially rescind.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Mandated Disclosures Question
Background Knowledge for Mandated Disclosures
Real World Application in Mandated Disclosures
Common Mistakes to Avoid on Mandated Disclosures Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
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."
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
More Mandated Disclosures Questions
In Vermont, a client refuses to allow a disclosure the licensee believes is necessary. Which statement is correct?
In Vermont, unpermitted construction or septic work affects a Vermont property. Which statement is correct?
A Vermont licensee is asked about a seller's agent knows a serious property defect or limitation. What is the best answer?
In Vermont, a licensee markets a pre-1978 Vermont residential rental property. Which statement is correct?
In Vermont, a seller's agent knows a serious property defect or limitation. Which statement is correct?
- → In Vermont, covered pre-1978 property is shown to a buyer. Which statement is correct?
- → In Vermont, the property is subject to a right of first refusal. Which statement is correct?
- → A Vermont licensee is asked about unpermitted construction or septic work affects a Vermont property. What is the best answer?
- → An Oklahoma licensee is asked about a seller learns of a new defect after already delivering a disclosure or disclaimer statement. What is the best answer?
- → Which Oklahoma rule applies when a seller wants to use the Oklahoma disclaimer statement instead of a disclosure statement?
- → An Oklahoma licensee is asked about a seller of covered Oklahoma residential property is preparing for a buyer’s offer. What is the best answer?
- → In Oklahoma real estate practice, a seller has not yet accepted a purchaser’s offer. What should the licensee remember?
- → For the Oklahoma salesperson state portion, a disclosure statement is delivered after an offer to purchase has been made. Which statement is correct?
- → Which Oklahoma rule applies when a real estate licensee actually knows of a property defect that is not included in the seller’s disclosure statement?
- → In Oklahoma real estate practice, a newly constructed dwelling has never been occupied. What should the licensee remember?