HF 3645

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to health; requiring sellers to disclose well 
  1.3             test results to buyers before signing an agreement to 
  1.4             sell or transfer real property; establishing liability 
  1.5             for failure to disclose; amending Minnesota Statutes 
  1.6             1998, section 103I.235, as amended. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 103I.235, as 
  1.9   amended by Laws 1999, chapter 11, article 3, section 6, is 
  1.10  amended to read: 
  1.11     103I.235 [REAL PROPERTY SALE; DISCLOSURE OF LOCATION, 
  1.12  STATUS, AND WATER QUALITY OF WELLS.] 
  1.13     Subdivision 1.  [DISCLOSURE OF WELLS TO BUYER.] (a) Before 
  1.14  signing an agreement to sell or transfer real property, the 
  1.15  seller must disclose in writing to the buyer information about 
  1.16  the status and location of all known wells on the property, by 
  1.17  delivering to the buyer either a statement by the seller that 
  1.18  the seller does not know of any wells on the property, or a 
  1.19  disclosure statement indicating the legal description and 
  1.20  county, and a map drawn from available information showing the 
  1.21  location of each well to the extent practicable.  In the 
  1.22  disclosure statement, the seller must indicate, for each well,: 
  1.23     (1) whether the well is in use, not in use, or sealed; and 
  1.24     (2) for each well that is in use to obtain drinking water, 
  1.25  the results of a well test for nitrate and coliform bacteria 
  1.26  performed by a state-certified environmental laboratory within 
  2.1   one year preceding the date of delivery of the disclosure 
  2.2   statement to the buyer and whether the test results are within 
  2.3   acceptable limits for nitrate and coliform bacteria as 
  2.4   established by the commissioner.  
  2.5      (b) At the time of closing of the sale, the disclosure 
  2.6   statement information, name and mailing address of the buyer, 
  2.7   and the quartile, section, township, and range in which each 
  2.8   well is located must be provided on a well disclosure 
  2.9   certificate signed by the seller or a person authorized to act 
  2.10  on behalf of the seller. 
  2.11     (c) A well disclosure certificate need not be provided if 
  2.12  the seller does not know of any wells on the property and the 
  2.13  deed or other instrument of conveyance contains the statement:  
  2.14  "The Seller certifies that the Seller does not know of any wells 
  2.15  on the described real property."  
  2.16     (d) If a deed is given pursuant to a contract for deed, the 
  2.17  well disclosure certificate required by this subdivision shall 
  2.18  be signed by the buyer or a person authorized to act on behalf 
  2.19  of the buyer.  If the buyer knows of no wells on the property, a 
  2.20  well disclosure certificate is not required if the following 
  2.21  statement appears on the deed followed by the signature of the 
  2.22  grantee or, if there is more than one grantee, the signature of 
  2.23  at least one of the grantees:  "The Grantee certifies that the 
  2.24  Grantee does not know of any wells on the described real 
  2.25  property."  The statement and signature of the grantee may be on 
  2.26  the front or back of the deed or on an attached sheet and an 
  2.27  acknowledgment of the statement by the grantee is not required 
  2.28  for the deed to be recordable. 
  2.29     (e) This subdivision does not apply to the sale, exchange, 
  2.30  or transfer of real property:  
  2.31     (1) that consists solely of a sale or transfer of severed 
  2.32  mineral interests; or 
  2.33     (2) that consists of an individual condominium unit as 
  2.34  described in chapters 515 and 515B. 
  2.35     (f) For an area owned in common under chapter 515 or 515B 
  2.36  the association or other responsible person must report to the 
  3.1   commissioner by July 1, 1992, the location and status of all 
  3.2   wells in the common area.  The association or other responsible 
  3.3   person must notify the commissioner within 30 days of any change 
  3.4   in the reported status of wells. 
  3.5      (g) For real property sold by the state under section 
  3.6   92.67, the lessee at the time of the sale is responsible for 
  3.7   compliance with this subdivision. 
  3.8      (h) If the seller fails to provide a required well 
  3.9   disclosure certificate, the buyer, or a person authorized to act 
  3.10  on behalf of the buyer, may sign a well disclosure certificate 
  3.11  based on the information provided on the disclosure statement 
  3.12  required by this section or based on other available information.
  3.13     (i) A county recorder or registrar of titles may not record 
  3.14  a deed or other instrument of conveyance dated after October 31, 
  3.15  1990, for which a certificate of value is required under section 
  3.16  272.115, or any deed or other instrument of conveyance dated 
  3.17  after October 31, 1990, from a governmental body exempt from the 
  3.18  payment of state deed tax, unless the deed or other instrument 
  3.19  of conveyance contains the statement made in accordance with 
  3.20  paragraph (c) or (d) or is accompanied by the well disclosure 
  3.21  certificate containing all the information required by paragraph 
  3.22  (b) or (d).  The county recorder or registrar of titles must not 
  3.23  accept a certificate unless it contains all the required 
  3.24  information.  The county recorder or registrar of titles shall 
  3.25  note on each deed or other instrument of conveyance accompanied 
  3.26  by a well disclosure certificate that the well disclosure 
  3.27  certificate was received.  The notation must include the 
  3.28  statement "No wells on property" if the disclosure certificate 
  3.29  states there are no wells on the property.  The well disclosure 
  3.30  certificate shall not be filed or recorded in the records 
  3.31  maintained by the county recorder or registrar of titles.  After 
  3.32  noting "No wells on property" on the deed or other instrument of 
  3.33  conveyance, the county recorder or registrar of titles shall 
  3.34  destroy or return to the buyer the well disclosure certificate.  
  3.35  The county recorder or registrar of titles shall collect from 
  3.36  the buyer or the person seeking to record a deed or other 
  4.1   instrument of conveyance, a fee of $20 for receipt of a 
  4.2   completed well disclosure certificate.  By the tenth day of each 
  4.3   month, the county recorder or registrar of titles shall transmit 
  4.4   the well disclosure certificates to the commissioner of health.  
  4.5   By the tenth day after the end of each calendar quarter, the 
  4.6   county recorder or registrar of titles shall transmit to the 
  4.7   commissioner of health $17.50 of the fee for each well 
  4.8   disclosure certificate received during the quarter.  The 
  4.9   commissioner shall maintain the well disclosure certificate for 
  4.10  at least six years.  The commissioner may store the certificate 
  4.11  as an electronic image.  A copy of that image shall be as valid 
  4.12  as the original. 
  4.13     (j) No new well disclosure certificate is required under 
  4.14  this subdivision if the buyer or seller, or a person authorized 
  4.15  to act on behalf of the buyer or seller, certifies on the deed 
  4.16  or other instrument of conveyance that the status and number of 
  4.17  wells on the property have not changed since the last previously 
  4.18  filed well disclosure certificate and that the results of tests 
  4.19  for nitrate and coliform bacteria for each well that is in use 
  4.20  to obtain drinking water are within acceptable limits as 
  4.21  established by the commissioner.  The following statement, if 
  4.22  followed by the signature of the person making the statement, is 
  4.23  sufficient to comply with the certification requirement of this 
  4.24  paragraph:  "I am familiar with the property described in this 
  4.25  instrument and I certify that the status and number of wells on 
  4.26  the described real property have not changed since the last 
  4.27  previously filed well disclosure certificate and that the 
  4.28  results of all required well tests are within acceptable limits 
  4.29  for nitrate and coliform bacteria."  The certification and 
  4.30  signature may be on the front or back of the deed or on an 
  4.31  attached sheet and an acknowledgment of the statement is not 
  4.32  required for the deed or other instrument of conveyance to be 
  4.33  recordable. 
  4.34     (k) The commissioner in consultation with county recorders 
  4.35  shall prescribe the form for a well disclosure certificate and 
  4.36  provide well disclosure certificate forms to county recorders 
  5.1   and registrars of titles and other interested persons. 
  5.2      (l) Failure to comply with a requirement of this 
  5.3   subdivision does not impair: 
  5.4      (1) the validity of a deed or other instrument of 
  5.5   conveyance as between the parties to the deed or instrument or 
  5.6   as to any other person who otherwise would be bound by the deed 
  5.7   or instrument; or 
  5.8      (2) the record, as notice, of any deed or other instrument 
  5.9   of conveyance accepted for filing or recording contrary to the 
  5.10  provisions of this subdivision. 
  5.11     Subd. 2.  [LIABILITY FOR FAILURE TO DISCLOSE.] (a) Unless 
  5.12  the buyer and seller agree to the contrary, in writing, before 
  5.13  the closing of the sale, a seller who fails to disclose the 
  5.14  existence or known status of a well at the time of sale and knew 
  5.15  or had reason to know of the existence or known status of the 
  5.16  well, is liable to the buyer for costs relating to sealing of 
  5.17  the well, costs specified in paragraph (b) relating to failing 
  5.18  to disclose well test results as required in subdivision 1, and 
  5.19  reasonable attorney fees for collection of costs from the 
  5.20  seller, if the action is commenced within six years after the 
  5.21  date the buyer closed the purchase of the real property where 
  5.22  the well is located. 
  5.23     (b) Unless the buyer and seller agree to the contrary in 
  5.24  writing before the closing of the sale, a seller who fails to 
  5.25  disclose the results of a well test for nitrate and coliform 
  5.26  bacteria as required in subdivision 1 and who knew or had reason 
  5.27  to know of the existence of the well, is liable to the buyer for 
  5.28  the following costs: 
  5.29     (1) the cost of ensuring that all wells required to be 
  5.30  tested are within acceptable limits established by the 
  5.31  commissioner for nitrate and coliform bacteria, by (i) sealing 
  5.32  any existing wells that do not meet such limits and constructing 
  5.33  any new wells needed or (ii) repairing any existing wells that 
  5.34  do not meet such limits; and 
  5.35     (2) reasonable attorney fees for the collection of costs 
  5.36  from the seller. 
  6.1   An action under this paragraph must be commenced within six 
  6.2   years after the date the buyer closed the purchase of the real 
  6.3   property where the well is located.