Minnesota State Real Estate Practice Test

What must a seller disclose to a buyer before selling or transferring real property?

1. Status and location of all known wells on the property

2. Any conversations with potential buyers

3. Future development plans for neighboring properties

4. Personal reasons for selling

The correct answer is: Status and location of all known wells on the property

In a real estate transaction, sellers are legally obligated to disclose specific material facts about the property to potential buyers to ensure transparency and fairness in the sale. One of these critical disclosures includes the status and location of all known wells on the property. This information is essential for buyers because wells can significantly impact water rights, property usage, and even health considerations related to drinking water quality. Knowledge of existing wells allows buyers to make informed decisions about the property, including any potential issues that may arise from the presence of these features. While the status of discussions with potential buyers, future development plans for neighboring properties, and personal reasons for selling may seem relevant, they do not fall under the required legal disclosures that a seller must make to potential buyers regarding the property itself. As such, knowing about the wells is directly tied to the buyer's future enjoyment and use of the property, making it a critical aspect of the disclosure duties.