A seller in Washington County, Minnesota, discloses on the Seller's Property Disclosure Statement that the property's septic system is 'non-compliant' with current county SSTS standards. The buyer proceeds with the purchase agreement without requesting any repairs. Two weeks before closing, the county inspector confirms the system is non-compliant and estimates the upgrade cost at $18,000. The buyer now wants to rescind. Which of the following best describes the buyer's legal position under Minnesota law?
Correct Answer
D) The buyer likely cannot rescind solely based on the SSTS non-compliance because the seller disclosed the non-compliant status in the original disclosure statement, and the buyer accepted those terms
Under Minnesota law, the seller's duty to disclose is satisfied when the known condition is accurately disclosed on the disclosure statement. When the buyer signs the purchase agreement after receiving a disclosure of a non-compliant SSTS, the buyer has accepted the transaction with knowledge of that condition. The buyer cannot later rescind based solely on the condition that was already disclosed — rescission rights under § 513.57 are triggered by undisclosed defects, not defects that were properly disclosed and accepted.
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Related Concepts
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
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