1.1 A bill for an act
1.2 relating to natural resources; requiring disclosure of subsurface drain tile; proposing
1.3 coding for new law in Minnesota Statutes, chapter 103F.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [103F.49] DRAIN TILE SELLER'S DISCLOSURE REQUIRED.
1.6 Subdivision 1.Definition.For purposes of this section, "drain tile" means a system of
1.7tile, corrugated plastic tubing, pipe, or other conduit installed beneath the ground surface
1.8to collect and convey water.
1.9 Subd. 2.Disclosure required.(a) Before signing an agreement to sell or transfer real
1.10property classified for purposes of taxation under section 273.13 as class 2a or 2b, the seller
1.11must disclose in writing to the buyer the status and location of all known drain tile on the
1.12property by delivering to the buyer:
1.13 (1) a statement by the seller that the seller does not know of any drain tile on the property;
1.14or
1.15 (2) a disclosure statement indicating the legal description and county and, to the extent
1.16practicable, a map that is drawn from available information and accurate to scale and that
1.17identifies the location of drain tile on the property, including tile diameter and all outlets
1.18and control structures, and the drainage water flow path for the first mile downstream of
1.19the drain tile.
1.20 (b) At the time of closing the sale, the disclosure statement information, name and mailing
1.21address of the buyer, and the quartile, section, township, and range in which drain tile is
1Section 1.
25-02435 as introduced01/21/25 REVISOR CKM/MI
SENATE
STATE OF MINNESOTA
S.F. No. 969NINETY-FOURTH SESSION
(SENATE AUTHORS: XIONG)
OFFICIAL STATUSD-PGDATE
Introduction and first reading02/03/2025
Referred to Environment, Climate, and Legacy 2.1located must be provided on a drain tile disclosure certificate signed by the seller or a person
2.2authorized to act on behalf of the seller.
2.3 (c) A drain tile disclosure certificate need not be provided if the seller does not know of
2.4any drain tile on the property and the deed or other instrument of conveyance contains the
2.5statement: "The Seller certifies that the Seller does not know of any drain tile on the described
2.6real property."
2.7 (d) If a deed is given pursuant to a contract for deed, the drain tile disclosure certificate
2.8required by this subdivision must be signed by the buyer or a person authorized to act on
2.9behalf of the buyer. If the buyer knows of no drain tile on the property, a drain tile disclosure
2.10certificate is not required if the following statement appears on the deed, followed by the
2.11signature of the grantee or, if there is more than one grantee, the signature of at least one
2.12of the grantees: "The Grantee certifies that the Grantee does not know of any drain tile on
2.13the described real property." The statement and signature of the grantee may be on the front
2.14or back of the deed or on an attached sheet, and an acknowledgment of the statement by
2.15the grantee is not required for the deed to be recordable.
2.16 (e) If the seller fails to provide a required drain tile disclosure certificate, the buyer, or
2.17a person authorized to act on behalf of the buyer, may sign a drain tile disclosure certificate
2.18based on the information provided on the disclosure statement required under paragraph
2.19(a) or based on other available information.
2.20 (f) A county recorder or registrar of titles may not record a deed or other instrument of
2.21conveyance dated after January 1, 2026, for which a certificate of value is required under
2.22section 272.115, or any deed or other instrument of conveyance dated after January 1, 2026,
2.23from a governmental body exempt from the payment of state deed tax, unless the deed or
2.24other instrument of conveyance contains the statement made in accordance with paragraph
2.25(c) or (d) or is accompanied by the drain tile disclosure certificate containing all the
2.26information required by paragraph (b) or (d).
2.27 (g) The county recorder or registrar of titles must not accept a certificate unless it contains
2.28all required information. The county recorder or registrar of titles must note on each deed
2.29or other instrument of conveyance accompanied by a drain tile disclosure certificate that
2.30the drain tile disclosure certificate was received. The notation must include the statement
2.31"No drain tile on property" if the disclosure certificate states that there is no drain tile on
2.32the property.
2.33 (h) The drain tile disclosure certificate must not be filed or recorded in the records
2.34maintained by the county recorder or registrar of titles. After noting "No drain tile on
2Section 1.
25-02435 as introduced01/21/25 REVISOR CKM/MI 3.1property" on the deed or other instrument of conveyance, the county recorder or registrar
3.2of titles must destroy or return to the buyer the drain tile disclosure certificate.
3.3 (i) The county recorder or registrar of titles must collect from the buyer or the person
3.4seeking to record a deed or other instrument of conveyance a fee of $50 for receipt of a
3.5completed drain tile disclosure certificate. By the tenth day of each month, the county
3.6recorder or registrar of titles must transmit the drain tile disclosure certificates to the Board
3.7of Water and Soil Resources. By the tenth day after the end of each calendar quarter, the
3.8county recorder or registrar of titles must transmit to the Board of Water and Soil Resources
3.9$42.50 of the fee for each drain disclosure certificate received during the quarter. The board
3.10must maintain the drain tile disclosure certificate for at least six years. The board may store
3.11the certificate as an electronic image. A copy of that image is as valid as the original.
3.12 (j) The Board of Water and Soil Resources, in consultation with county recorders, must
3.13prescribe the form for a drain tile disclosure certificate and provide drain tile disclosure
3.14certificate forms to county recorders, registrars of titles, and other interested persons.
3.15 (k) Failure to comply with this section does not impair:
3.16 (1) the validity of a deed or other instrument of conveyance as between the parties to
3.17the deed or instrument or as to any other person who otherwise would be bound by the deed
3.18or instrument; or
3.19 (2) the record, as notice, of any deed or other instrument of conveyance accepted for
3.20filing or recording contrary to the provisions of this subdivision.
3.21 Subd. 3.Liability for failure to disclose.Unless the buyer and seller agree to the contrary
3.22in writing before closing the sale, a seller who fails to disclose the existence or known status
3.23of drain tile at the time of sale and knew or had reason to know of the existence or known
3.24status of the drain tile is liable to the buyer for costs incurred to repair the drain tile and
3.25reasonable attorney fees for collecting costs from the seller, if the action is commenced
3.26within six years after the date the buyer closed the purchase of the real property where the
3.27drain tile is located.
3Section 1.
25-02435 as introduced01/21/25 REVISOR CKM/MI