Minnesota State Real Estate Practice Test

Is a disclosure necessary if the property is listed with a separate real estate company?

1. Yes, always

2. No, not needed

3. Only if requested by the seller

4. Only if the realtor is also interested in making an offer

The correct answer is: No, not needed

In real estate transactions, the necessity of a disclosure is not strictly dependent on whether the property is listed with a separate real estate company. Generally, disclosures are primarily required by law for the protection of buyers, and the duty to provide these disclosures typically lies with the seller or their appointed agent, regardless of who is listing the property. In many jurisdictions, including Minnesota, sellers are required to disclose material facts about their property that could influence a buyer's decision. This duty exists independently of the listing company's involvement. Therefore, it's possible that no disclosure is necessary if there are no material facts to disclose or if the property being sold is exempt from disclosure laws under specific circumstances. Thus, stating that no disclosure is needed when a property is listed with a separate real estate company captures the essence of scenarios where the specific context of the sale dictates the disclosure requirements, rather than the mere fact of property listing.