Minnesota State Real Estate Practice Test

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Prepare for the Minnesota State Real Estate Test with questions designed for better comprehension. Use flashcards, access multiple choice questions with detailed explanations, and boost your chances of passing successfully.

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Who has the legal obligation to disclose known material defects?

Only the seller
Only the broker
Both the seller and the broker
The buyer

The correct answer is: Both the seller and the broker

The legal obligation to disclose known material defects falls on both the seller and the broker. Sellers are required to inform potential buyers about any known problems with the property that could affect its value or desirability. This includes structural issues, plumbing problems, and any other significant defects that could influence a buyer's decision. Brokers also share in this responsibility, as they act as intermediaries in real estate transactions. They have a duty to their clients and to potential buyers to ensure that all material defects are disclosed. Failing to disclose such information could lead to legal consequences for both parties, including liability for damages or breach of fiduciary duty. While the buyer is responsible for conducting their due diligence through inspections and asking questions, they do not have a legal obligation to disclose defects because they are not property owners in that context. Therefore, the correct response reflects the shared responsibility of both the seller and the broker in protecting the interests of all parties involved in the transaction.