Minnesota State Real Estate Practice Test

When is a seller required to provide disclosure in a residential real estate transaction?

1. When selling to a government agency

2. During the transfer of residential real estate between buyer and seller

3. Only when the property has liens against it

4. For all property types regardless of use

The correct answer is: During the transfer of residential real estate between buyer and seller

In Minnesota, a seller is required to provide disclosure during the transfer of residential real estate between the buyer and the seller. This requirement stems from Minnesota's Real Estate Disclosure Statute, which mandates that sellers disclose material facts about the property being sold in order to provide buyers with the necessary information to make informed decisions. The disclosure is particularly focused on residential properties because buyers typically rely heavily on the seller’s disclosures to assess the condition and history of the home. By requiring disclosures during the transfer between buyer and seller, the law aims to promote transparency and protect buyers from potential unforeseen issues that could arise after the purchase. This includes details about structural problems, environmental hazards, and any other significant information that could affect the value or safety of the home. In contrast, disclosing information when selling to a government agency, only when there are liens, or for all property types regardless of use does not align with the specific requirements laid out by the statute, as the requirement specifically focuses on residential real estate transactions.