Real Estate Disclosure Disputes
Before an individual sells their home, they are generally required to make a written disclosure to prospective buyers. The disclosure is to include all material facts of which the seller is aware that could adversely and significant affect an ordinary buyer’s use and enjoyment of the property, or any intended use of the property of which the seller is aware. The disclosure must be made in good faith, and it must be based on the best of the seller’s knowledge at the time of the disclosure.
Often a buyer will make their disclosure by completing a form provided by their real estate salesperson.
The disclosure form typically addresses matters such as:
- Are there cracks in the foundation
- How old is the roof
- Is there a well on the property
- Has there been a flood that affected the property
- Have there been pets in the home
- How long has the seller lived at the property
- What appliances exist on the property, and do they work
- Has a meth lab been operated in the home
- Are there any other material facts that would affect use and enjoyment of the property
There are several ways that the disclosure requirement, and the disclosure form, can lead to disputes between a buyer and seller. For example:
- The parties could dispute whether the seller was required to disclose a particular issue, i.e. was the issue a material fact? For example, must the seller disclose seemingly minor do-it-yourself repairs, or the fact that the furnace is 20 years old?
- The parties might disagree about the meaning of a disclosure and whether it was intended to mislead the buyer, e.g. does a disclosure that windows were replaced following a hailstorm mean that all windows were replaced or just a few?
- The parties could disagree about what the seller knew, or should have known, about the condition of the property when the disclosure form was completed. For example, does the presence of extensive mold behind drywall imply that the seller knew of a water intrusion problem?
Why select Jon Olson to arbitrate your real estate dispute?
Jon Olson has a passion for real estate and real estate arbitration. He is a licensed Minnesota real estate salesperson who understands the process of buying and selling real estate. As an attorney, he also understands the rights and obligations of real estate buyers, sellers and their agents.
Mr. Olson has heard and decided over (X) cases involving real property disclosure disputes, including cases that involved:
- Pest infestation
- Water pressure issues and well problems
- Faulty roofs or roof repair
- Water intrusion, leaks, cracked foundation, and mold
- Misrepresentation of acreage
- New home construction defects
Jon Olson is familiar with the many factors that must be considered when conducting a real estate disclosure arbitration hearing, including procedural and substantive issues. He understands that arbitration is a new experience for most people, and he strives to make the parties comfortable in what is often an unfamiliar and uncomfortable situation. He also understands that there is a lot at stake in most of these arbitrations, so he ensures that each party has a full and fair opportunity to present their evidence.