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SF 3951

as introduced - 91st Legislature (2019 - 2020) Posted on 03/05/2020 08:46am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to commerce; real property sales; providing well disclosure requirements;
amending Minnesota Statutes 2018, section 103I.235, subdivision 1; proposing
coding for new law in Minnesota Statutes, chapter 513.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 103I.235, subdivision 1, is amended to read:


Subdivision 1.

Disclosure of wells to buyer.

(a) Before signing an agreement to sell or
transfer real property, the seller must disclose in writing to the buyer information about the
status and location of all known wells on the property, by delivering to the buyer either a
statement by the seller that the seller does not know of any wells on the property, or a
disclosure statement indicating the legal description and county, and a map drawn from
available information showing the location of each well to the extent practicable. In the
disclosure statement, the seller must indicatedeleted text begin,deleted text endnew text begin:
new text end

new text begin (1)new text end for each well, whether the well is in use, not in use, or sealeddeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) for each well that provides potable water to the real property, the results of a water
analysis for bacteria, nitrate, and arsenic conducted by a laboratory certified under section
144.98 within the previous six months.
new text end

(b) At the time of closing of the sale, the disclosure statement information, name and
mailing address of the buyer, and the quartile, section, township, and range in which each
well is located must be provided on a well disclosure certificate signed by the seller or a
person authorized to act on behalf of the seller.

(c) A well disclosure certificate need not be provided if the seller does not know of any
wells on the property and the deed or other instrument of conveyance contains the statement:
"The Seller certifies that the Seller does not know of any wells on the described real
property."

(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate
required by this subdivision shall be signed by the buyer or a person authorized to act on
behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure
certificate is not required if the following statement appears on the deed followed by the
signature of the grantee or, if there is more than one grantee, the signature of at least one
of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the
described real property." The statement and signature of the grantee may be on the front or
back of the deed or on an attached sheet and an acknowledgment of the statement by the
grantee is not required for the deed to be recordable.

(e) This subdivision does not apply to the sale, exchange, or transfer of real property:

(1) that consists solely of a sale or transfer of severed mineral interests; or

(2) that consists of an individual condominium unit as described in chapters 515 and
515B.

(f) For an area owned in common under chapter 515 or 515B the association or other
responsible person must report to the commissioner by July 1, 1992, the location and status
of all wells in the common area. The association or other responsible person must notify
the commissioner within 30 days of any change in the reported status of wells.

(g) If the seller fails to provide a required well disclosure certificate, the buyer, or a
person authorized to act on behalf of the buyer, may sign a well disclosure certificate based
on the information provided on the disclosure statement required by this section or based
on other available information.

(h) A county recorder or registrar of titles may not record a deed or other instrument of
conveyance dated after October 31, 1990, for which a certificate of value is required under
section 272.115, or any deed or other instrument of conveyance dated after October 31,
1990, from a governmental body exempt from the payment of state deed tax, unless the
deed or other instrument of conveyance contains the statement made in accordance with
paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all the
information required by paragraph (b) or (d). The county recorder or registrar of titles must
not accept a certificate unless it contains all the required information. The county recorder
or registrar of titles shall note on each deed or other instrument of conveyance accompanied
by a well disclosure certificate that the well disclosure certificate was received. The notation
must include the statement "No wells on property" if the disclosure certificate states there
are no wells on the property. The well disclosure certificate shall not be filed or recorded
in the records maintained by the county recorder or registrar of titles. After noting "No wells
on property" on the deed or other instrument of conveyance, the county recorder or registrar
of titles shall destroy or return to the buyer the well disclosure certificate. The county
recorder or registrar of titles shall collect from the buyer or the person seeking to record a
deed or other instrument of conveyance, a fee of $50 for receipt of a completed well
disclosure certificate. By the tenth day of each month, the county recorder or registrar of
titles shall transmit the well disclosure certificates to the commissioner of health. By the
tenth day after the end of each calendar quarter, the county recorder or registrar of titles
shall transmit to the commissioner of health $42.50 of the fee for each well disclosure
certificate received during the quarter. The commissioner shall maintain the well disclosure
certificate for at least six years. The commissioner may store the certificate as an electronic
image. A copy of that image shall be as valid as the original.

(i) No new well disclosure certificate is required under this subdivision if the buyer or
seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed or
other instrument of conveyance that the status and number of wells on the property have
not changed since the last previously filed well disclosure certificate. The following
statement, if followed by the signature of the person making the statement, is sufficient to
comply with the certification requirement of this paragraph: "I am familiar with the property
described in this instrument and I certify that the status and number of wells on the described
real property have not changed since the last previously filed well disclosure certificate."
The certification and signature may be on the front or back of the deed or on an attached
sheet and an acknowledgment of the statement is not required for the deed or other instrument
of conveyance to be recordable.

(j) The commissioner in consultation with county recorders shall prescribe the form for
a well disclosure certificate and provide well disclosure certificate forms to county recorders
and registrars of titles and other interested persons.

(k) Failure to comply with a requirement of this subdivision does not impair:

(1) the validity of a deed or other instrument of conveyance as between the parties to
the deed or instrument or as to any other person who otherwise would be bound by the deed
or instrument; or

(2) the record, as notice, of any deed or other instrument of conveyance accepted for
filing or recording contrary to the provisions of this subdivision.

new text begin (l) A seller of residential real property must comply with the well disclosure requirements
under this section.
new text end

Sec. 2.

new text begin [513.62] WELL DISCLOSURE REQUIREMENTS.
new text end

new text begin A seller of residential real property must comply with the well disclosure requirements
under section 103I.235.
new text end