This bill mandates the disclosure of subsurface drain tile systems during the sale or transfer of certain real properties in Minnesota, specifically those classified under taxation as class 2a or 2b. Sellers are required to provide written disclosure to buyers regarding the status and location of any known drain tile on the property. This includes a statement indicating whether the seller is aware of any drain tile, and if so, a detailed disclosure statement that includes a legal description, a map of the drain tile's location, and information about drainage water flow. Additionally, a drain tile disclosure certificate must be signed and provided at the time of closing, with specific provisions for cases where the seller or buyer is unaware of any drain tile.

The bill also establishes penalties for non-compliance, stating that sellers who fail to disclose known drain tile may be liable for repair costs and attorney fees if the buyer takes legal action within six years of the property purchase. Furthermore, it outlines the responsibilities of county recorders and registrars of titles regarding the acceptance and processing of drain tile disclosure certificates, including a fee structure and requirements for maintaining records. The Board of Water and Soil Resources is tasked with creating the form for the disclosure certificate and ensuring its proper management.