Well here's the deal on Wells....

“What’s the big deal if there’s a well on the property or not?” This may have been a question that ran through your mind if you recently bought or sold a home, as you most certainly were asked this.

Well, here’s what you should know about wells:

A well is basically a hole that has been drilled, pushed or dug into the ground to access water in the ground or “groundwater.” Wells are also constructed for irrigation, livestock watering or other agricultural purposes,  Before signing an agreement to sell or transfer real property the seller must disclose in writing to the buyer information about the status and location of all known wells on the property. This requirement also applies to contract-for-deed sales. Included in the WELL DISCLOSURE STATEMENT are:

1. the legal description and county;

2. a map showing the location of each well; and

3. whether each well is in use, not in use, or sealed.

Why, you may ask, is this important?

Well disclosure gives valuable information to the property buyer about the location and status of wells - including unused or "abandoned" wells - on property. Unused wells provide a pathway through which contaminants at the ground surface may move down to the groundwater and contaminate nearby wells. Groundwater provides drinking water to three out of four residents in Minnesota and must be protected from contamination. Identifying and sealing unused wells is one important way to protect this valuable resource.

Will you be liable if you do not disclose that there is a well on the property?

YES. In fact, the buyer has six years after the purchase of the property to bring action against the seller (Minnesota Statutes, section 1031.235). A seller is liable to the buyer for reasonable attorney fees and costs related to sealing of the well if the seller knew or had reason to know but failed to disclose the existence or known status of a well at the time of sale.

Ok, so maybe there is a well but it’s not in use. That’s ok right?

NO. If a well is not in use, the property owner has three options:

1.  the well can be put back into use;

2.  the well can be sealed by a licensed well contractor, or a licensed well sealer; or

3.  the property owner can apply for a maintenance permit. A maintenance permit allows an unused well to remain unsealed if it is properly maintained. State law requires that a well that is not in use must be sealed unless the property owner has a maintenance permit for the well (Minnesota Statutes, section 1031.301). The permit is not transferable and requires a yearly fee of $175.

If one of these steps has not been taken at the time of property transfer, it will be the responsibility of the buyer to choose an option and follow through with it. Also important to note, sometimes it is hundreds of dollars cheaper to put a well back into use than to seal it.

Have questions? Comment below!