Minnesota Legislature
HF 439
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
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A bill for an act
relating to real estate; requiring sellers of residential lake property and their real
estate agents to disclose and provide to buyers known existing land surveys;
amending Minnesota Statutes 2006, sections 82.22, subdivision 8; 513.54;
513.55, subdivision 1; 513.57, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 82.22, subdivision 8, is amended to read:
Subd. 8.
Material facts.
(a) Licensees shall disclose to any prospective purchasernew text begin :
new text end
new text begin (1)new text end all material facts of which the licensees are aware, which could adversely and
significantly affect an ordinary purchaser's use or enjoyment of the property, or any
intended use of the property of which the licensees are awarenew text begin ; and
new text end
new text begin (2) if the property adjoins a lake or includes access to a lake by easement or
otherwise, the existence of a plat of a survey of the property, which plat is owned by or
under control of the seller to the extent that the existence of the plat is known to the
licenseenew text end .
(b) It is not a material fact relating to real property offered for sale the fact or
suspicion that the property:
(1) is or was occupied by an owner or occupant who is or was suspected
to be infected with human immunodeficiency virus or diagnosed with acquired
immunodeficiency syndrome;
(2) was the site of a suicide, accidental death, natural death, or perceived paranormal
activity; or
(3) is located in a neighborhood containing any adult family home, community-based
residential facility, or nursing home.
(c) A licensee or employee of the licensee has no duty to disclose information
regarding an offender who is required to register under section 243.166, or about whom
notification is made under that section, if the broker or salesperson, in a timely manner,
provides a written notice that information about the predatory offender registry and
persons registered with the registry may be obtained by contacting local law enforcement
where the property is located or the Department of Corrections.
(d) A licensee is not required to disclose, except as otherwise provided in paragraph
(e), information relating to the physical condition of the property or any other information
relating to the real estate transaction, if a written report that discloses the information has
been prepared by a qualified third party and provided to the person. For the purposes of
this paragraph, "qualified third party" means a federal, state, or local governmental agency,
or any person whom the broker, salesperson, or a party to the real estate transaction
reasonably believes has the expertise necessary to meet the industry standards of practice
for the type of inspection or investigation that has been conducted by the third party
in order to prepare the written report and who is acceptable to the person to whom the
disclosure is being made.
(e) A licensee shall disclose to the parties to a real estate transaction any facts known
by the broker or salesperson that contradict any information included in a written report, if
a copy of the report is provided to the licensee, described in paragraph (d).
(f) The limitation on disclosures set forth in paragraphs (b) and (c) shall modify any
common law duties with respect to disclosure of material facts.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2008, and applies to
purchase agreements signed by the seller on or after that day.
new text end
Sec. 2.
Minnesota Statutes 2006, section 513.54, is amended to read:
513.54 EXCEPTIONS.
The seller disclosure requirements in sections 513.52 to 513.60 do not apply to
any of the following:
(1) real property that is not residential real property;
(2) a gratuitous transfer;
(3) a transfer pursuant to a court order;
(4) a transfer to a government or governmental agency;
(5) a transfer by foreclosure or deed in lieu of foreclosure;
(6) a transfer to heirs or devisees of a decedent;
(7) a transfer from a cotenant to one or more other cotenants;
(8) a transfer made to a spouse, parent, grandparent, child, or grandchild of the seller;
(9) a transfer between spouses resulting from a decree of marriage dissolution or
from a property settlement agreement incidental to that decree;
(10) a transfer of newly constructed residential property that has not been inhabitednew text begin ,
except with respect to the survey disclosure requirement under section 513.55, subdivision
1, paragraph (a), clause (2)new text end ;
(11) an option to purchase a unit in a common interest community, until exercised;
(12) a transfer to a person who controls or is controlled by the grantor as those terms
are defined with respect to a declarant under section 515B.1-103, clause (2);
(13) a transfer to a tenant who is in possession of the residential real propertynew text begin , except
with respect to the survey disclosure requirement under section 513.55, subdivision 1,
paragraph (a), clause (2)new text end ; or
(14) a transfer of special declarant rights under section 515B.3-104.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2008, and applies to
agreements to sell or transfer residential real estate signed by the seller on or after that day.
new text end
Sec. 3.
Minnesota Statutes 2006, section 513.55, subdivision 1, is amended to read:
Subdivision 1.
Contents.
(a) Before signing an agreement to sell or transfer
residential real property, the seller shall make a written disclosure to the prospective
buyer. The disclosure must includenew text begin :
new text end
new text begin (1)new text end all material facts of which the seller is aware that could adversely and
significantly affect:
deleted text begin (1)deleted text end new text begin (i)new text end an ordinary buyer's use and enjoyment of the property; or
deleted text begin (2)deleted text end new text begin (ii)new text end any intended use of the property of which the seller is awarenew text begin ; or
new text end
new text begin (2) if the property adjoins a lake or includes access to a lake by easement or
otherwise, the existence of a plat of a survey of the property, which plat is owned by or
under control of the sellernew text end .
(b) The disclosure must be made in good faith and based upon the best of the seller's
knowledge at the time of the disclosure.
new text begin
(c) If the seller discloses the existence of a plat of a survey under paragraph (a),
clause (2), or if the seller's real estate licensee has made that disclosure under section
82.22, subdivision 8, the seller shall provide the plat, or a complete copy of it, to the buyer
within five business days after the seller signs the purchase agreement. The plat or the
copy remains property of the seller until the sale or transfer is completed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2008, and applies to
agreements to sell or transfer residential real estate signed by the seller on or after that day.
new text end
Sec. 4.
Minnesota Statutes 2006, section 513.57, subdivision 2, is amended to read:
Subd. 2.
Liability.
A seller who fails to make a disclosure as required by sections
513.52 to 513.60 and was aware of material facts pertaining to the real property new text begin or of the
existence of a plat of a survey under section 513.55, subdivision 1, paragraph (a), clause
(2), new text end is liable to the prospective buyer. A person injured by a violation of this section may
bring a civil action and recover damages and receive other equitable relief as determined
by the court. An action under this subdivision must be commenced within two years after
the date on which the prospective buyer closed the purchase or transfer of the real property.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2008, and applies to
agreements to sell or transfer residential real estate signed by the seller on or after that day.
new text end