When a Smooth Sale Turns Scary
After 30 years in their Maple Grove home, Mark and Diane were ready to move on. They loved their house, had taken care of it, and felt confident it would sell quickly.
It did.
A young couple – Evan and Claire – made a full-price offer, and everything seemed perfect. The inspection went fine, the paperwork was signed, and closing day came and went without a hitch.
Mark and Diane toasted their next chapter—no more yardwork, no more maintenance, just peace and quiet.
But a few months later, the phone rang—and their “sold” home turned into a legal horror story.
The Call That Changed Everything
The new buyers had discovered a hidden mold problem behind a basement wall. They accused the sellers of hiding it, pointing to the Seller’s Disclosure Statement, where Mark and Diane had checked:
“No known water intrusion.”
The couple was stunned. Yes, there had been a small leak behind the washing machine years ago, but they’d fixed it, cleaned it, and never had another issue. They assumed it was over and done with.
They were wrong.
When “I Forgot” Isn’t a Defense
Under Minnesota Seller Disclosure Requirements (Minn. Stat. §§ 513.52–513.60), sellers must disclose all known material facts that could affect the property’s value or safety. That includes:
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Past or current water damage
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Foundation or structural issues
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Mold or pest infestations
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Any condition that could affect how the home is used or enjoyed
Even if a seller believes an old problem is “resolved,” it still may need to be disclosed. Failing to do so can expose sellers to claims for misrepresentation or nondisclosure—even if the omission wasn’t intentional.
The Legal Nightmare
Weeks later, Mark and Diane received a letter from Evan and Claire’s attorney.
“Demand for Damages – Failure to Disclose Known Defects.”
The buyers sought thousands in remediation and repair costs.
Mark and Diane were forced to hire their own attorney and defend themselves.
Expert inspections revealed lingering moisture near the repaired area—enough to convince the buyers’ side that the problem was long-standing.
The result? A costly settlement that wiped out nearly all of their profit from the sale.
It wasn’t malicious. It wasn’t deceitful. It was simply a mistake. But in Minnesota real estate law, that mistake carried a heavy price.
How to Avoid Your Own Seller Disclosure Horror Story
If you’re preparing to sell your Minnesota home, here’s how to protect yourself under the Minnesota Seller Disclosure Laws:
1. Be Overly Honest.
If you’re unsure whether something counts as “material,” disclose it anyway. Transparency builds buyer trust—and protects you legally.
2. Keep Repair Records.
Save invoices, receipts, and contractor notes. These can show that an issue was fixed and that you didn’t intentionally hide anything.
3. Review Your Disclosure With an Attorney.
A Minnesota real estate attorney can review your Seller’s Disclosure form to ensure it’s complete and compliant before your home hits the market.
4. Don’t Rely on Memory Alone.
Walk through your home carefully and revisit old repair or insurance documents. Sellers often forget about past issues that buyers may consider significant.
5. Be Wary of “As-Is” Sales.
Even if you sell “as is,” Minnesota law still requires you to disclose known defects. “As is” doesn’t erase your legal responsibilities.
Honesty Costs Less Than Litigation
The real terror in Mark and Diane’s story wasn’t the mold—it was how easily it all could have been avoided.
One forgotten disclosure turned a happy home sale into a year-long legal nightmare.
Don’t let your sale come back to haunt you.
Protect Yourself Before You List
Our experienced Minnesota real estate attorneys help home sellers understand and comply with Minnesota Seller Disclosure Requirements—so you can sell confidently, avoid lawsuits, and move on without fear of surprises.
Contact Markve & Zweifel today to review your Seller’s Disclosure and get peace of mind before your sale.
