Frequently Asked Questions
Seller's Disclosure Alternatives

The MNAR approved Seller's Disclosure Alternatives form was created by the Forms Committee to provide REALTORS^® with a standardized format to address the circumstance when a seller chooses an alternative disclosure option allowed under MN Stat. 513.52-513.60.

Seller Disclosure Options
The revised form offers two options in the event the seller has chosen not to provide a written material fact disclosure of which ONE needs to be selected when this form is utilized.

Qualified Third-Party Inspection
The first option allows a seller to provide the prospective buyer with a written report prepared by a qualified third party that discloses material information relating to the property, in place of making a disclosure themselves regarding that specific information.

Please note however, that a seller would still be required to disclose such material facts known by the seller that contradict any information included on the written report. In addition, the seller would also be required to disclose such material facts known by the seller that were not included in the written report. (E.g., if the written report discloses material information regarding the furnace, the seller would still be required to disclose if they had a wet basement or a leaky roof.)

Waiver
The second option would allow a buyer to agree to a waiver of the seller disclosure requirements under MN Stats. 513.52-513.60.

Such a waiver must be in writing signed by the buyer and the seller.

PLEASE NOTE: a waiver of the disclosure requirements of MN Stats. 513-52-513.60 does not waive, limit or abridge any obligation for seller disclosure created by any other law. There are numerous other federal, state and local government disclosures required to be given by property owners at time of sale. Some examples include septic system, wells, valuation exclusion, lead-based paint and local government disclosure requirements. A seller dies not have the ability to waive these disclosure requirements and must provide the appropriate disclosure to prospective buyers regardless of whether or not the buyer agreed to waive the seller disclosure requirements under MN Stats. 513.52-513.60.

1.	To the extent that the seller is contemplating the use of the waiver alternative, the seller should be reminded that their liability for disclosure of such material facts is limited to facts known to the best of their knowledge at the time of disclosure.
2.	This is a relatively new law and is untested by the courts. We do not know with certainty how a court of law would rule on the scenario where the seller clearly knew of a significant problem with the physical condition of the property and convinced a buyer to sign a waiver of the seller disclosure requirements for the purpose of not having to disclose that material fact. However, there is likelihood that a waiver would not protect a seller in this example.
3.	When a seller demands a waiver from the buyer of their statutory seller disclosure obligations, such a demand may have an adverse impact on the marketability of the home. In other words, it may send a "red flag" to prospective buyers that there is something wrong with the home that the seller does not want to disclose.

We understand that there are some circumstances that will necessitate such a waiver. Some examples may include an absentee property owner, estates and the sale of a foreclosed property by a lender. However, even in these circumstances, the seller would still only be required to disclose material facts regarding the physical condition of the property TO THE BEST OF THEIR KNOWLEDGE and it is in the REALTORS^® interest to have the seller disclose material facts of which they are aware.

There is no like waiver for real estate licensees. MNAR successfully pursued this legislation requiring seller's to disclose material facts pertaining to adverse physical conditions in the property since, to a large degree, REALTORS^® must rely on sellers to know material facts regarding the property. All real estate licensees must disclose ALL material facts of which they are aware that could adversely and significantly affect an ordinary purchaser's use or enjoyment of the property or any intended use of the property of which they are aware on all types of properties.