What is the purpose of a property disclosure statement in Minnesota?

The purpose of a property disclosure statement in Minnesota is primarily to inform buyers of any known defects or issues with the property. This statutory requirement is designed to promote transparency in real estate transactions and protect both buyers and sellers. By providing this information, sellers can help buyers make informed decisions about the property they are considering, potentially avoiding costly surprises after the sale.

A property disclosure statement typically includes details regarding the condition of the property, such as issues with the roofing, plumbing, electrical systems, and any history of damage or repairs. This practice not only helps in fostering trust between parties but also minimizes legal disputes that may arise from undisclosed problems.

The other options do not align with the intention behind the property disclosure statement. For instance, assessing market value is the role of appraisals or market analysis, while outlining mortgage terms is typically done through lenders and mortgage documents. Listing the property for sale relates to the marketing aspect, separate from disclosing its condition to potential buyers.