Under North Dakota law, anyone who is selling a home must disclose material defects with that property. These are facts that could significantly affect a person’s ability to enjoy or use that property, and which may also reduce its value.
One key detail to keep in mind is that this rule applies only to material defects that the seller is aware of. There are cases where a property has significant, fundamental defects, but the seller genuinely has no idea that they exist. But as long as the seller is aware of a current or past issue, they do have to make the appropriate disclosures.
Examples of potential defects
The disclosure form will ask about latent and patent defects, and these could revolve around the general condition of the property, issues with mechanical systems, structural systems or even environmental issues.
For example, sellers will often be asked about water leaks, roof leaks, flooding, fires and things of this nature. They may be asked about mildew, mold or pest removal. Questions could revolve around issues like foundation cracks, malfunctioning electrical systems or issues with HVAC systems.
In many cases, sellers are also required to disclose issues that have occurred in the past. Even if the condition has been fixed and repairs have been made, they need to tell potential buyers about these repairs, often providing records and statements to back them up.
Navigating a transaction
Making proper disclosures is just one step to take during a real estate transaction. Those involved need to understand all of the necessary legal steps and obligations when it comes to buying or selling real estate.