Erik is a buyer's agent representing a client who is under contract to purchase a rural lakeshore property in Minnesota. During due diligence, Erik discovers that a portion of the seller's dock and a small retaining wall extend into what the DNR has designated as Public Waters. The seller has no DNR permit for these structures. Which of the following best describes the legal significance of this situation and Erik's responsibility to his client?

Question

Practice Of Real EstateState_specificHARD

Erik is a buyer's agent representing a client who is under contract to purchase a rural lakeshore property in Minnesota. During due diligence, Erik discovers that a portion of the seller's dock and a small retaining wall extend into what the DNR has designated as Public Waters. The seller has no DNR permit for these structures. Which of the following best describes the legal significance of this situation and Erik's responsibility to his client?

Answer Options

A

Structures in Public Waters without a DNR permit are a title defect only, so Erik should advise his client to request a title insurance endorsement and proceed to closing without further action.

B

Because docks are considered personal property, unpermitted dock structures in Public Waters do not require DNR authorization and present no legal issue for the buyer.

C

Unpermitted structures in DNR-designated Public Waters may violate Minn. Stat. § 103G.245, exposing the buyer to potential removal orders and liability after closing; Erik should advise his client to require the seller to obtain proper DNR authorization or resolve the issue before closing.

D

The DNR only regulates structures on the shoreland area, not structures that extend into the water itself, so no permit is required for the dock or retaining wall.