3.2 Environmental & Radon Disclosure
Key Takeaways
- Federal lead-based paint disclosure (TSCA Title IV) applies to housing built before 1978 and includes the EPA pamphlet and a 10-day inspection opportunity
- The Minnesota Radon Awareness Act (Minn. Stat. 144.496) requires a written Radon Warning Statement and the MDH 'Radon in Real Estate' publication before the purchase agreement
- A Well Disclosure Certificate is required under Minn. Stat. 103I.235; the county recorder collects a $54 fee at recording (or notes 'No wells on property')
- Subsurface sewage treatment (septic) disclosure under Minn. Stat. 115.55 must state whether the system is in use and whether it is compliant or failing
- Sellers must disclose known underground storage tanks; methamphetamine-contaminated property carries special disclosure and remediation obligations
Federal lead-based paint (pre-1978)
The federal Residential Lead-Based Paint Hazard Reduction Act (TSCA Title IV) applies to target housing built before 1978. For every covered sale the seller and licensee must:
| Requirement | Detail |
|---|---|
| Disclosure form | Disclose known lead-based paint and hazards; attach records/reports |
| EPA pamphlet | Provide Protect Your Family From Lead in Your Home |
| Inspection window | Offer the buyer a 10-day opportunity to test (waivable in writing) |
| Lead Warning Statement | Required statutory language in the contract |
| Retention | Agents keep records 3 years |
The seller need not test or remove lead - only disclose what is known. Penalties for willful violation can reach triple damages under federal law.
Minnesota Radon Awareness Act (144.496)
Before an agreement to sell residential real property is signed, the seller must disclose in writing any knowledge of radon concentrations, including: whether testing has occurred; the most current records and reports; any mitigation or remediation; a description of any installed radon mitigation system; and a statutory Radon Warning Statement. The seller must also give the buyer the Minnesota Department of Health (MDH) publication Radon in Real Estate Transactions.
Key exam point: the seller is not required to test for radon - only to disclose known results and provide the warning. The duty applies to nearly any transfer of an interest in residential real estate, including a contract for deed or a lease with option to purchase.
Well disclosure (Minn. Stat. 103I.235)
When real property is sold, the seller must disclose the number and status/location of all wells by giving the buyer a Well Disclosure Statement, and a Well Disclosure Certificate is generally filed with the deed at recording. Memorize these numbers:
| Item | Rule |
|---|---|
| Recording fee | County recorder/registrar collects $54 per certificate |
| 'No wells' shortcut | Deed may simply state "No wells on property" in lieu of a certificate |
| Sealed wells | A Sealing Record must be provided for any sealed well |
| Authority | Minnesota Department of Health (MDH) administers the program |
The certificate captures each well's location, depth, status (in use, not in use, sealed), and whether it has a maintenance permit. A wrong-fee distractor (e.g., "$50" or "$30") is common - the current statutory fee is $54.
Septic / subsurface sewage (Minn. Stat. 115.55)
For property served by a Subsurface Sewage Treatment System (SSTS), the seller must disclose in writing whether there is one and whether it is in use and in compliance (or is an imminent threat to public health or failing). Disclosure must occur before the buyer signs the purchase agreement. Local ordinances often require a compliance inspection at point of sale.
Other environmental disclosures and traps
| Hazard | Duty |
|---|---|
| Underground storage tank (UST) | Disclose known tanks; orphaned tanks may need registration |
| Methamphetamine contamination | Disclose; remediation per MDH order before re-occupancy |
| Wetlands / shoreland / floodplain | Disclose known restrictions affecting use |
| Airport / mining / nuisance zones | Disclose known significant impacts |
- Trap: Radon is state law; lead paint is federal - candidates swap them.
- Trap: Even an exempt 513.60 transfer can still owe radon and well disclosure, because those duties arise under separate statutes.
Methamphetamine-contaminated property (152.0275)
Minnesota treats former clandestine drug-lab (meth) sites as a public-health hazard. A seller who knows a property was used to manufacture methamphetamine must disclose it, and a property declared contaminated cannot be reoccupied until remediated to MDH guidelines and cleared. Local public-health authorities can post the property and order cleanup. On the exam, the right action for an agent who learns of a former meth lab is to disclose and direct the buyer to the remediation records - this is a known material fact, unlike a stigma death.
Shoreland, wetlands, and floodplain detail
Much of Minnesota - the "Land of 10,000 Lakes" - sits in regulated shoreland. Property within roughly 1,000 feet of a lake or 300 feet of a river/stream (or the floodplain) falls under shoreland management rules administered by the Minnesota Department of Natural Resources (DNR) and local zoning. These rules limit impervious surface, setbacks, and vegetation removal.
| Restriction | Typical impact |
|---|---|
| Shoreland setback | Structures must sit back from the Ordinary High Water Level (OHWL) |
| Impervious-surface cap | Often 25% of the lot in shoreland districts |
| Wetland (WCA) | No-net-loss; filling may require a replacement plan |
| Floodplain | Lowest floor must be above the regulatory flood elevation |
Known shoreland or wetland limits that adversely affect use are material facts to disclose.
Putting the disclosures in sequence
A Minnesota residential closing usually carries a stack of disclosures delivered before the purchase agreement is signed:
- Seller's Property Disclosure (or inspection report) - 513.55/513.57
- Radon Warning Statement + MDH booklet - 144.496
- Lead-based-paint disclosure + EPA pamphlet (if pre-1978)
- Well Disclosure Statement (certificate filed at recording, $54) - 103I.235
- SSTS/septic disclosure - 115.55
- Methamphetamine disclosure if applicable - 152.0275
Worked scenario
A 1965 lake cabin on a private well and septic is being sold. The required pre-agreement packet includes the seller disclosure, lead-paint disclosure (pre-1978), radon warning, well disclosure (then a $54 certificate at recording), septic compliance disclosure, plus any shoreland restrictions on the lakefront lot. Missing any one is a common audit and exam fault.
What fee does the county recorder collect for a Minnesota Well Disclosure Certificate at recording?
Regarding radon, what must a Minnesota seller of residential property do?
The federal lead-based paint disclosure rule applies to housing built: