This bill mandates the disclosure of subsurface drain tile systems during the sale or transfer of certain real properties in Minnesota, specifically those classified as class 2a or 2b for taxation purposes. Sellers are required to provide written disclosure to buyers regarding the status and location of any known drain tile on the property. This includes delivering a statement indicating either the absence of drain tile or a detailed disclosure statement that includes a legal description, a map of the drain tile's location, and information about drainage flow paths. 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, holding sellers liable for costs related to the repair of undisclosed drain tile if they had prior knowledge of its existence. It outlines the responsibilities of county recorders and registrars of titles in relation to the acceptance and processing of drain tile disclosure certificates, including a fee structure for these services. The Board of Water and Soil Resources is tasked with creating the form for the disclosure certificate and maintaining records of these disclosures for a minimum of six years. Overall, the legislation aims to enhance transparency in real estate transactions involving properties with subsurface drainage systems.