Bill
HF 1138
Requires sellers/listing agents to disclose yearly energy costs and a standard energy rating to prospective buyers, helping them gauge total ownership costs.
HF 1138 — Disclosure of energy costs and ratings to prospective purchasers of real property required
Overview
HF 1138 is a Minnesota bill introduced on February 19, 2025, currently in the introduction and first-reading stage and referred to the Energy Finance and Policy committee. The bill’s central aim is to require the disclosure of a property’s energy-related costs and energy efficiency ratings to prospective buyers.
Purpose and intent
- Improve transparency around a property's ongoing energy costs and efficiency.
- Provide buyers with information to better evaluate total ownership costs and long-term savings or expenditures related to energy use.
- Potentially influence property values and market comparability by incorporating energy performance data into disclosures.
Key provisions (based on the bill’s title and typical structure for energy disclosure requirements)
- Energy cost disclosure: Sellers or listing agents would be required to provide an estimate of annual energy costs for the property, or a means to calculate such costs, to prospective purchasers.
- Energy rating disclosure: A standardized energy efficiency rating or certification (e.g., a HERS-like rating or other approved metric) would be required to be disclosed to buyers.
- Timing and method: The bill would specify when disclosures must be provided (e.g., at listing, upon inquiry, or as part of a disclosure form) and how they should be delivered (documentation attached to disclosures, included in property reports, or integrated into the purchase process).
- Documentation and standards: Provisions may require the use of a particular rating system or the adoption of a methodology for estimating energy costs, with responsibilities designated (seller, seller’s agent, or an appointed third party).
- Enforcement and penalties: The bill would outline enforcement mechanisms and any penalties for failure to disclose, as well as remedies for buyers.
- Effective date: The bill would set an effective date and may include phased implementation or applicability to certain property types.
Who would be affected
- Property sellers and listing agents: required to provide energy cost and rating information.
- Prospective buyers: would receive standardized energy data to inform purchase decisions.
- Real estate professionals and brokers: responsible for compliance and accurate disclosures.
- Property owners of record and landlords for relevant properties (depending on scope).
Procedural/timeline aspects
- Status: Introduction and first reading, referred to Energy Finance and Policy (as of February 19, 2025).
- Next steps: Committee consideration, possible amendments, floor votes, and potential enactment or revision in subsequent legislative sessions.
Notes
- The exact provisions, including specific rating systems, disclosure timing, exemptions, and penalties, will be defined in the bill’s text. Details may change during committee deliberations.
Compiled from official sources — confirm details with the bill’s official record.
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