Methamphetamine Disclosures Nash & Lodge, PLLP By: Kim Frank, Esq. June, 2006 The new methamphetamine disclosure law, which took effect on January 1, 2006, requires sellers to disclose to buyers in writing if they are aware of that meth production or meth contamination has occurred on their property. Sellers of residential and commercial property (both publicly and privately owned), public waters, and public rights-of-way must make these disclosures before signing any agreement to sell or transfer the property. The Minnesota Association of Realtors has released a disclosure form which addresses the required disclosures and should be presented to buyers prior to the signing of a purchase agreement. Seller’s Disclosure Requirements The following facts must be disclosed (unless such disclosure has been waived in writing) to the buyers: • whether the sheriff or local health department has issued an order that all or part of the property was used as a clandestine lab and/or contaminated by chemicals, waste, or other substances used in manufacturing methamphetamines; • Whether the order was vacated as a result of proper clean-up, or • The status of removal and remediation when no order has been issued – but meth production occurred on the property. How can I help my buyers avoid potential meth contaminated property? According to the Minnesota Department of Health, some clues that may indicate meth production occurred in a home include:      • dark stains from chemicals in the bathtubs, sinks, toilets or on walls      • signs of chemical burns or spills      • visible areas in the yard where chemicals have been dumped      • packaging or containers from chemicals or cold medicine      • Burn piles in the yard with signs of meth ingredients (medicine containing ephedrine,      pseudoephedrine drain cleaner, battery acid, antifreeze)      • dead or dying vegetation      • chemical (solvent, ammonia) odors If you or your buyers suspect that meth production may have occurred on a property it may be useful to contact the local police department or county sheriff to find out if they have a record of any illegal drug lab activity occurring on the property. It may also be useful to talk to neighbors to find out if they have witnessed any suspicious activity, traffic, smells or excessive trash on the property. If your buyers still suspect that meth manufacturing may have occurred on the property, buyers should insist on a more thorough meth contamination-specific inspection and all inspectors should be made aware the reasons for the suspicion that meth production happened on the property. Seller’s Liability Unless the parties waive the requirement in writing, a seller who knew or should have known of meth production on the property becomes liable to the buyer for the costs of clean-up and reasonable attorney’s fees. The buyer has up to six years after closing to take action. NOTICE: The foregoing is not intended to constitute legal advice for any specific circumstance, but is intended to reflect broadly applicable principles, under Minnesota law, relevant to a typical situation. Each set of facts and each contract is, or can be unique; the unique facts and specific language of the contract may require a different legal analysis and may result in a different outcome. Before proceeding in reliance upon this or any other general description of law, consult with an attorney competent in the field of practice relevant to your situation. Copyright 2007 Nash & Lodge, PLLP