Minnesota State Real Estate Practice Test

If a seller is unaware of property damage, what are they required to disclose?

1. All property conditions

2. Only conditions they have previously repaired

3. Only major structural issues

4. Nothing, as they cannot disclose what they do not know

The correct answer is: Nothing, as they cannot disclose what they do not know

In Minnesota, as in many other states, the seller's disclosure obligations are primarily contingent upon their knowledge of property conditions. If a seller is unaware of specific property damage, they are not held liable for disclosing issues they do not know about. Therefore, the correct answer states that they are not required to disclose anything if they genuinely have no knowledge of it. This principle upholds the idea that required disclosures are based on the seller’s knowledge at the time of the sale. This approach is intended to provide fairness in real estate transactions, recognizing that sellers cannot disclose problems that they have not encountered or do not know exist. It places responsibility on buyers to conduct their own due diligence, such as inspections, to uncover any issues that may not have been disclosed. The other options either overstate the seller's obligations or misinterpret the nature of disclosure requirements in the context of unknown conditions.