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 processing these disclosures, including a fee structure for the receipt of disclosure certificates and the requirement to transmit these records to the Board of Water and Soil Resources. The bill emphasizes that failure to comply with the disclosure requirements does not invalidate the deed or instrument of conveyance, ensuring that the legal transfer of property remains intact despite any disclosure issues.