Minnesota State Real Estate Practice Test

What should a seller do if they do not know the condition of a well on the property?

1. Estimate its condition

2. Seek a professional evaluation

3. Disclose that they have no knowledge

4. Ignore it as a liability

The correct answer is: Disclose that they have no knowledge

For a seller who is uncertain about the condition of a well on their property, disclosing that they have no knowledge is a prudent course of action. Transparency is crucial in real estate transactions, as it helps to establish trust between the seller and potential buyers. A seller is legally obligated to disclose known issues with the property, and not having knowledge about the well does not exempt them from this responsibility. By stating their lack of knowledge, the seller allows buyers to make informed decisions and encourages them to conduct their own due diligence, which may include seeking a professional evaluation of the well. This approach also mitigates the risk of potential legal repercussions that could arise from misrepresentation. For instance, if the seller were to offer an estimate of the well's condition or choose to ignore it altogether, they could face liability issues if the buyer later discovers problems related to the well that were not disclosed. Thus, a clear declaration of their uncertainty is the most responsible and protective action for the seller.