The bill, S.F. No. 969, requires that before the sale or transfer of certain types of property (classified as class 2a or 2b for tax purposes), the seller must disclose the status and location of any drain tiles on the property. Drain tiles are systems used to collect and convey water underground.

Here are the key points: 1. Disclosure Requirement: The seller needs to provide a written statement to the buyer about the presence of drain tiles. This can be a statement confirming unawareness of any drain tiles, or a detailed disclosure that includes a map, descriptions of the drain tiles' location, diameter, outlets, control structures, and the water flow path.

1. At Closing: The seller must fill out a drain tile disclosure certificate with specific information and provide it to the buyer or their authorized representative.

2. No Need for Disclosure Certificate:

   • If the seller confirms no drain tiles are present and this statement is included in the deed.
   • If the buyer agrees and signs that they are unaware of any drain tiles, this also can be included in the deed, relieving the need for a separate disclosure certificate.

3. Recording Requirements: Post-January 1, 2026, deeds need a statement about drain tiles or must be accompanied by a disclosure certificate to be recorded.

4. Handling of Certificates: County recorders or registrars of titles will manage these certificates, including collecting fees, and will destroy or return the certificates, not keeping them on file.

5. Liability: If a seller fails to disclose existing drain tiles they knew about, they can be held liable for the repair costs and possibly the buyer’s attorney fees if a case is brought within six years of the property purchase.

Essentially, this bill mandates clear communication about drain tiles during property transactions to ensure buyers are fully informed about the property's condition related to water drainage systems, potentially impacting property usage and maintenance.