Times They Are a Changin’

Ever see the New Yorker cartoon where a young dog explains to an older dog, “We do all those old tricks electronically now”?  True. Case in point, effective July 1, 2009, the Minnesota Department of Health (MDH) started accepting electronically filed Well Disclosure Certificates. And speaking of doing things differently, the HUD-1 is also changing this coming year.

Well Disclosure

Because wells are a conduit to groundwater, in 1989, the Minnesota legislature made well disclosure part of the Ground Water Protection Act. Since then MDH has processed over 454, 490 WDCs giving the state a comprehensive picture of well location, number, and status (sealed and unsealed). As of May, 15, 2009, 233, 171 wells have been sealed. Identifying and sealing wells protects ground water from contaminants, thus preserving it as a source of drinking water.

Disclosure occurs at two times: the seller must provide a Well Disclosure Statement to the buyer prior to signing a purchase agreement and a WDC when a deed (or contract for deed) is recorded. The County Recorder forwards the WDC to the MDH.

The electronically filed WDC is part of a greater movement toward electronic real estate recording. MDH issues a WDC number when it is filed electronically; that number should be noted on the deed. Practicelaw staff are working with the Uniform Conveyancing Blank Task Force to revise deed forms to accommodate electronic filing.

So, read the MDH’s publication “What You Need Before You Begin” and you too will be a hip old dog.

HUD-1

Another heads up for real estate practitioners – effective January 1, 2010, use of a new HUD-1 Settlement Statement becomes mandatory.

As you know, the Real Estate Settlement and Procedures Act (RESPA) and its related regulations require use of the HUD-1 Settlement Statement in certain residential real estate closings. On November 17, 2008, HUD published its Final Rule which revised RESPA; the new rule included new forms for the HUD-1, HUD-1A, and the Good Faith Estimate of Closing Costs. For further information, see the HUD website.

practicelaw staff is busy updating the HUD-1 currently available in mndocs, MSBA’s document assembly program. A fillable PDF is planned for practicelaw as well.