Minnesota State Real Estate Practice Test

What are the consequences for a seller who fails to disclose the existence of a well?

1. Liability for property taxes

2. Liability for costs relating to sealing the well

3. Immediate eviction from the property

4. Requirement to lower the sale price

The correct answer is: Liability for costs relating to sealing the well

When a seller fails to disclose the existence of a well on their property, they can be held liable for costs associated with sealing that well. This is important in Minnesota because undisclosed wells can pose safety issues, environmental concerns, and legal liabilities for subsequent owners. The state mandates that all wells be properly sealed, especially if they are abandoned or no longer in use. Failure to disclose such information can lead to potential legal action against the seller for not adhering to disclosure requirements. While property taxes, eviction, or lowering the sale price might seem like possible consequences, they do not directly address the specific liability associated with the physical presence of a well and the necessary actions to ensure safety and compliance with regulations. Therefore, the requirement to deal with sealing the well is the primary consequence of failing to disclose its existence.