Minnesota Passes New Radon Awareness Law

The new Minnesota Radon Awareness Act (Minn. Stat. § 144.496 – the "Act") is effective January 1, 2014, and applies to most agreements to sell or transfer residential real property executed on or after that date. Under the Act, "residential real property" is defined as "property occupied as, or intended to be occupied as, a single-family residence, including a unit in a common interest community as defined in section 515B.1-103, clause (10), regardless of whether the unit is in a common interest community not subject to chapter 515B."

In general, before signing an agreement to sell or transfer such Minnesota residential real property, the seller (defined by the Act as a person who owns legal or equitable title to residential real property) must make a written disclosure to the buyer (defined by the Act as a person negotiating or offering to acquire for value, legal or equitable title, or the right to acquire legal or equitable title to residential legal property) any knowledge the seller has of radon concentrations in the dwelling, including:

• whether a radon test or tests have occurred on the real property ("radon test" is defined by the Act as a measurement of indoor radon concentrations according to established industry standards for residential real property);
• the most current records and reports pertaining to radon concentrations within the dwelling;
• a description of any radon concentrations, mitigation or remediation ("mitigation" is defined by the Act as measures designed to permanently reduce indoor radon concentrations),;
• information regarding the radon mitigation system, including system description and documentation, if such system has been installed in the dwelling; and
• a radon warning statement that contains the following language: "Radon Warning Statement - The Minnesota Department of Health strongly recommends that ALL homebuyers have an indoor radon test performed prior to purchase or taking occupancy, and recommends having the radon levels mitigated if elevated radon concentrations are found ("elevated radon concentration" is defined by the Act as a radon concentration at or above the United States Environmental Protection Agency’s radon action level). Elevated radon concentrations can easily be reduced by a qualified, certified, or licensed, if applicable, radon mitigator. Every buyer of any interest in residential real property is notified that the property may present exposure to dangerous levels of indoor radon gas that may place the occupants at risk of developing radon-induced lung cancer. Radon, a Class A human carcinogen, is the leading cause of lung cancer in nonsmokers and the second leading cause overall. The seller of any interest in residential real property is required to provide the buyer with any information on radon test results of the dwelling."
• In addition to the requirements above, the Seller must provide the buyer with a copy of the Minnesota Department of Health publication entitled "Radon in Real Estate Transactions."

The above disclosures required of a seller may be satisfied if such disclosures are given to a real estate licensee representing or assisting a prospective buyer, as such a real estate licensee must provide a copy of such disclosures to the prospective buyer.

The above disclosures are not required for certain excepted transactions, including:

• real property that is not residential real property;
• a gratuitous transfer;
• a transfer made pursuant to a court order;
• a transfer to a government or governmental agency;
• a transfer by foreclosure or deed in lieu of foreclosure;
• a transfer to heirs or devisees of a decedent;
• a transfer from a cotenant to one or more other cotenants;
• a transfer made to a spouse, parent, grandparent, child, or grandchild of the seller;
• a transfer between spouses resulting from a decree of marriage dissolution or from a property settlement agreement incidental to that decree;
• an option to purchase a unit in a common interest community, until exercised;
• a transfer to a person who controls or is controlled by the grantor as those terms are defined with respect to a declarant under section 515B.1-103, clause (2);
• a transfer to a tenant who is in possession of the residential real property; or
• a transfer of special declarant rights under section 515B.3-104.

If the seller is aware of material facts pertaining to radon concentration in the dwelling, and fails to make the above disclosures as required by the Act, the seller will be liable to the buyer.

While a violation of this Act does not automatically invalidate a transfer solely because of the failure of any person to comply with a provision of this Act, a court is not prevented from ordering a rescission of the transfer. Additionally, a buyer who is injured by a violation of this Act may bring a civil action and recover damages and receive other equitable relief as determined by the court. But, in general, the buyer must commence such action within two years after the date on which the buyer closed the purchase or transfer of the real property.

Many other states already have radon disclosure laws. Because of the extreme danger of high levels of radon gas many other jurisdictions are sure to include radon disclosures at some point in the near future. If you have radon in your area, discuss best steps with your real estate professional and his or her recommended radon inspector or professional. If there is radon in your area, and your real estate professional tries to convince you that a radon test is unnecessary, that practitioner should have a valid reason – if not, you may want to consider finding a new real estate professional. Real Estate Metro can help match you with the right real estate professional for your needs worldwide. Click below to get started.

via:https://www.realestatemetro.com/blog/minnesota-passes-new-radon-awareness-law