Minnesota House Bill HF1138

Minnesota 2025-2026 Regular Session

• Introduced: 2/19/25
• Refer: 2/19/25

Caption

Disclosure of energy costs and ratings to prospective purchasers of real property required.

Impact

If enacted, HF1138 will impact statutory provisions related to real estate transactions by codifying the need for energy-related disclosures. This may lead to increased awareness among prospective buyers about the long-term costs associated with energy use, potentially influencing purchasing decisions. By ensuring that these details are upfront, the bill could encourage sellers to invest in energy-efficient improvements, ultimately benefiting the environment and promoting sustainability in the housing market.

Summary

HF1138 mandates that sellers of residential real estate disclose energy costs and ratings to potential buyers. Specifically, the bill requires that, over the previous 12 months, sellers disclose information on electricity, natural gas, and water costs. Additionally, utilities must provide cost information upon request from a seller or their representative, which aligns with a push for greater transparency in energy consumption in residential markets. Listings for residential properties will also need to include these disclosures, along with a Home Energy Rating System Index score where available.

Contention

While the bill seeks to promote transparency, potential points of contention may arise regarding compliance burdens for sellers, particularly smaller property owners who may find it challenging to gather and report this information. There might also be concerns about how such transparency could affect property values in different markets, especially if properties with high utility costs become less attractive. Discussions could also focus on ensuring that the data provided by utility companies is accurate and that it does not unintentionally bias buyers against certain properties.