The proposed bill mandates the disclosure of subsurface drain tile systems when selling or transferring certain types of real property in Minnesota. Specifically, it requires sellers to provide written information about the status and location of any known drain tile on the property before finalizing the sale. This includes a statement indicating whether the seller is aware of any drain tile, along with 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 exceptions outlined for cases where the seller or buyer is unaware of any drain tile.

The bill also establishes penalties for sellers who fail to disclose known drain tile systems, making them liable for repair costs and attorney fees if the buyer incurs expenses due to the seller's nondisclosure. Furthermore, it sets forth requirements for county recorders regarding the acceptance and processing of these disclosure certificates, including a fee structure and the obligation to transmit the certificates to the Board of Water and Soil Resources. The bill aims to enhance transparency in real estate transactions involving properties with subsurface drainage systems, thereby protecting buyers from potential liabilities associated with undisclosed drain tile.