Minnesota State Real Estate Practice Test

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Prepare for the Minnesota Real Estate Exam. Enhance your knowledge with flashcards and multiple-choice questions, each complemented by detailed hints and explanations. Ace your licensing exam!

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What type of defects are sellers required to disclose?

Minor cosmetic issues
Only legal issues
Known material defects
Only issues that have resulted in complaints

The correct answer is: Known material defects

Sellers are required to disclose known material defects because these are significant issues that could affect the value, usability, or safety of the property. Material defects are issues that are not merely cosmetic or minor; they can include structural problems, issues with plumbing or electrical systems, or environmental hazards that could impact the buyer's decision or the property's worth. The duty to disclose is rooted in the principle of honesty in real estate transactions, ensuring that buyers have the necessary information to make informed decisions. This requirement protects sellers as well by potentially avoiding legal disputes arising from undisclosed defects after the sale is finalized. Because of this obligation, sellers must be forthright about defects they know exist, rather than only disclosing issues that have led to complaints or are legally mandated. This transparency helps maintain trust in real estate practices.