Purpose

• Establish a requirement for energy cost disclosure in residential real estate transactions. The bill aims to inform prospective buyers about typical utility costs and provide an energy efficiency rating for the property.

Main Provisions

• Disclosure to prospective purchasers:
  • A seller of residential real property must disclose the total cost of electricity, natural gas, and water usage for the previous 12 months for the property.
  • The disclosure must also show how those costs compare to the statewide average cost per residential household for each utility.
• Information from utility companies:
  • A utility company that provides electricity, natural gas, or water must provide the requested information to the seller or the seller’s authorized representative.
• Real estate listings:
  • A real estate listing for residential property must include the energy cost disclosure information described above.
  • The listing must also include the most recent Home Energy Rating System (HERS) Index score for the property if the property has received one.

How this changes existing law

• Adds a new requirement to Minnesota real estate disclosures by placing energy cost information and a HERS Index score into the standard disclosures for residential properties.
• Requires utilities to supply specific cost data to sellers upon request, enabling the disclosures in listings.

Key terms and concepts (highlights from the bill)

• Energy cost disclosure
• Total cost of electricity, natural gas, and water
• Previous 12-month period
• statewide average cost per residential household
• Utility company
• Prospective purchaser
• Real estate listing
• Home Energy Rating System (HERS) Index score
• HERS Index score (most recent)

Potential implications

• Buyers gain clearer understanding of ongoing utility costs before purchase.
• Sellers and listing agents must gather and present energy cost data and HERS information.
• Utilities must provide data when requested, which may require data handling and timing considerations.
• The measure elevates emphasis on energy efficiency in residential property transactions.

Relevant Terms energy cost disclosure; electricity; natural gas; water; 12-month; statewide average; residential property; seller; prospective purchaser; utility company; real estate listing; Home Energy Rating System; HERS Index score; most recent.