This legislative bill, H.F. No. 77, requires sellers of certain types of real estate in Minnesota to disclose information about subsurface drain tiles on the property to potential buyers. Drain tiles are systems installed beneath the ground to remove excess water. Sellers must provide a written statement that either confirms the presence of drain tiles, complete with details and a map or states that they are unaware of any such systems on the property. This disclosure must be made before the sale agreement is signed and at the time of the sale's closing.

In situations where a seller fails to provide this information, and if the buyer subsequently finds drain tiles on the property, the seller can be held liable for repair costs and legal fees if legal action is taken within six years after the property purchase.

Additionally, any deeds or property conveyance documents processed after January 1, 2026, must either contain a disclosure statement or be accompanied by a drain tile disclosure certificate. Failure to include this information can prevent the document from being recorded officially.

The bill outlines the responsibilities of county recorders in managing these disclosures and specifies that the disclosure certificate should not be permanently filed but instead retained temporarily and eventually destroyed or returned.

A fee is associated with filing the disclosure certificate, and part of this fee is directed towards maintaining records related to these disclosures. The bill also dictates the responsibilities for maintaining these forms and records to the Board of Water and Soil Resources, ensuring the proper handling and availability of disclosure information.