SF 2795

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to real property; providing for conveyance of interests in real property by
transfer on death deeds; clarifying acknowledgments made in a representative
capacity; clarifying application of certain common law doctrine to registered
land; eliminating obsolete language and making other technical and conforming
changes; amending Minnesota Statutes 2006, sections 272.12; 287.22; 508.02;
508.48; 508.52; 508.671, subdivision 1; 508A.02, subdivision 1; 508A.48;
508A.52; 524.2-702; 557.02; Minnesota Statutes 2007 Supplement, section
507.24, subdivision 2; proposing coding for new law in Minnesota Statutes,
chapter 507.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

TRANSFER ON DEATH DEEDS

Section 1.

Minnesota Statutes 2006, section 272.12, is amended to read:

272.12 CONVEYANCES, TAXES PAID BEFORE RECORDING.

When:

(a) a deed or other instrument conveying land,

(b) a plat of any town site or addition thereto,

(c) a survey required pursuant to section 508.47,

(d) a condominium plat subject to chapter 515 or 515A or a declaration that contains
such a plat, or

(e) a common interest community plat subject to chapter 515B or a declaration
that contains such a plat,

is presented to the county auditor for transfer, the auditor shall ascertain from the records
if there be taxes delinquent upon the land described therein, or if it has been sold for
taxes. An assignment of a sheriff's or referee's certificate of sale, when the certificate of
sale describes real estate, and certificates of redemption from mortgage or lien foreclosure
sales, when the certificate of redemption encompasses real estate and is issued to a junior
creditor, are considered instruments conveying land for the purposes of this section and
section 272.121. If there are taxes delinquent, the auditor shall certify to the same; and
upon payment of such taxes, or in case no taxes are delinquent, shall transfer the land upon
the books of the auditor's office, and note upon the instrument, over official signature, the
words, "no delinquent taxes and transfer entered," or, if the land described has been sold
or assigned to an actual purchaser for taxes, the words "paid by sale of land described
within;" and, unless such statement is made upon such instrument, the county recorder or
the registrar of titles shall refuse to receive or record the same; provided, that sheriff's or
referees' certificates of sale on execution or foreclosure of a lien or mortgage, certificates
of redemption from mortgage or lien foreclosure sales issued to the redeeming mortgagor
or lienee, deeds of distribution made by a personal representative in probate proceedings, new text begin
transfer on death deeds under section 507.071, new text end decrees and judgments, receivers receipts,
patents, and copies of town or statutory city plats, in case the original plat filed in the
office of the county recorder has been lost or destroyed, and the instruments releasing,
removing and discharging reversionary and forfeiture provisions affecting title to land
and instruments releasing, removing or discharging easement rights in land or building or
other restrictions, may be recorded without such certificate; and, provided that instruments
conveying land and, as appurtenant thereto an easement over adjacent tract or tracts of
land, may be recorded without such certificate as to the land covered by such easement;
and provided further, that any instrument granting an easement made in favor of any
public utility or pipe line for conveying gas, liquids or solids in suspension, in the nature
of a right-of-way over, along, across or under a tract of land may be recorded without such
certificate as to the land covered by such easement. Documents governing homeowners
associations of condominiums, townhouses, common interest ownership communities,
and other planned unit developments may be recorded without the auditor's certificate to
the extent provided in section 515B.1-116(f).

A deed of distribution made by a personal representative in a probate proceeding,
a decree, or a judgment that conveys land shall be presented to the county auditor, who
shall transfer the land upon the books of the auditor's office and note upon the instrument,
over official signature, the words, "transfer entered", and the instrument may then be
recorded. A decree or judgment that affects title to land but does not convey land may be
recorded without presentation to the auditor.

A violation of this section by the county recorder or the registrar of titles shall
be a gross misdemeanor, and, in addition to the punishment therefor, the recorder or
registrar shall be liable to the grantee of any instrument so recorded for the amount of
any damages sustained.

When, as a condition to permitting the recording of deed or other instrument
affecting the title to real estate previously forfeited to the state under the provisions of
sections 281.16 to 281.25, county officials, after such real estate has been purchased or
repurchased, have required the payment of taxes erroneously assumed to have accrued
against such real estate after forfeiture and before the date of purchase or repurchase, the
sum required to be so paid shall be refunded to the persons entitled thereto out of moneys
in the funds in which the sum so paid was placed. Delinquent taxes are those taxes deemed
delinquent under section 279.02.

Sec. 2.

Minnesota Statutes 2006, section 287.22, is amended to read:

287.22 EXEMPTIONS.

The tax imposed by section 287.21 does not apply to:

(1) An executory contract for the sale of real property under which the purchaser is
entitled to or does take possession of the real property, or any assignment or cancellation
of the contract;

(2) A mortgage or an amendment, assignment, extension, partial release, or
satisfaction of a mortgage;

(3) A will;

(4) A plat;

(5) A lease, amendment of lease, assignment of lease, or memorandum of lease;

(6) A deed, instrument, or writing in which the United States or any agency or
instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee;

(7) A deed for a cemetery lot or lots;

(8) A deed of distribution by a personal representative;

(9) A deed to or from a co-owner partitioning their undivided interest in the same
piece of real property;

(10) A deed or other instrument of conveyance issued pursuant to a permanent
school fund land exchange under section 92.121 and related laws;

(11) A referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale;

(12) A referee's, sheriff's, or certificate holder's certificate of redemption from a
mortgage or lien foreclosure sale issued to the redeeming mortgagor or lienee;

(13) A deed, instrument, or writing which grants, creates, modifies, or terminates an
easement; deleted text begin and
deleted text end

(14) A decree of marriage dissolution, as defined in section 287.01, subdivision 4,
or a deed or other instrument between the parties to the dissolution made pursuant to the
terms of the decree deleted text begin . deleted text end new text begin ; and
new text end

new text begin (15) A transfer on death deed under section 507.071.
new text end

Sec. 3.

new text begin [507.071] TRANSFER ON DEATH DEEDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section the following terms
have the meanings given:
new text end

new text begin (a) "Beneficiary" or "grantee beneficiary" means a person or entity named as a
grantee beneficiary in a transfer on death deed, including a successor grantee beneficiary.
new text end

new text begin (b) "County agency" means the county department or office designated to recover
medical assistance benefits from the estates of decedents.
new text end

new text begin (c) "Grantor owner" means an owner named as a grantor in a transfer on death deed
upon whose death the conveyance or transfer of the described real property is conditioned.
Grantor owner does not include a spouse who joins in a transfer on death deed solely for
the purpose of conveying or releasing statutory or other marital interested in the real
property to be conveyed or transferred by the transfer on death deed.
new text end

new text begin (d) "Owner" means a person having an ownership or other interest in all or part
of the real property to be conveyed or transferred by a transfer on death deed. Owner
does not include a spouse who joins in a transfer on death deed solely for the purpose
of conveying or releasing statutory or other marital interests in the real property to be
conveyed or transferred by the transfer on death deed.
new text end

new text begin (e) "Recorded" means recorded in the office of the county recorder or registrar of
titles, as appropriate for the real property described in the instrument to be recorded.
new text end

new text begin (f) "State agency" means the Department of Human Services or any successor
agency.
new text end

new text begin (g) "Transfer on death deed" means a deed authorized under this section.
new text end

new text begin Subd. 2. new text end

new text begin Effect of transfer on death deed. new text end

new text begin A deed that conveys or assigns an
interest in real property, including a mortgage, judgment, or any other lien on real property,
to a grantee beneficiary and that expressly states that the deed is only effective on the
death of one or more of the grantor owners, transfer the interest to the grantee beneficiary
upon the death of the grantor owner upon whose death the conveyance or transfer is stated
to be effective, but subject to the survivorship provisions and requirements of section
524.2-702. A transfer on death deed must comply with all provisions of Minnesota law
applicable to deeds of real property including, but not limited to, the provisions of sections
507.02, 507.24, 507.34, 508.48, and 508A.48.
new text end

new text begin Subd. 3. new text end

new text begin Rights of creditors and rights of the state and county under sections
246.53, 256B.15, 256D.16, 261.04, and 514.981. new text end

new text begin The interest transferred to a beneficiary
under a transfer on death deed after the death of a grantor owner is transferred subject
to all effective conveyances, assignments, contracts, mortgages, deeds of trust, liens,
security pledges, judgments, tax liens, and other encumbrances made by the grantor owner
or to which the property was subject during the grantor owner's lifetime, including but
not limited to, any claim by a surviving spouse or any claim or lien by the state or county
agency authorized by section 246.53, 256B.15, 256D.16, 261.04, or 514.981, if other
assets of the deceased owner's estate are insufficient to pay the amount of any such claim.
A beneficiary to whom the interest is transferred after the death of a grantor owner shall be
liable to account to the state or county agency with a claim or lien authorized by section
246.53, 256B.15, 256D.16, 261.04, or 514.981, to the extent necessary to discharge
any such claim remaining unpaid after application of the assets of the deceased grantor
owner's estate, but such liability shall be limited to the value of the interest transferred
to the beneficiary.
new text end

new text begin Subd. 4. new text end

new text begin Multiple grantee beneficiaries. new text end

new text begin A transfer on death deed may designate
multiple grantee beneficiaries to take title as joint tenants, as tenants in common or in any
other form of ownership or tenancy that is valid under the laws of this state.
new text end

new text begin Subd. 5. new text end

new text begin Successor grantee beneficiaries. new text end

new text begin A transfer on death deed may designate
one or more successor grantee beneficiaries or a class of successor grantee beneficiaries,
or both. If the transfer on death deed designates successor grantee beneficiaries or a class
of successor grantee beneficiaries, the deed shall state the condition under which the
interest of the successor grantee beneficiaries would vest.
new text end

new text begin Subd. 6. new text end

new text begin Multiple joint tenant grantors. new text end

new text begin If an interest in real property is owned
as joint tenants, a transfer on death deed executed by all of the owners that conveys an
interest in real property to one or more grantee beneficiaries transfers the interest to the
grantee beneficiary or beneficiaries effective only after the death of the last surviving
grantor owner. If the last surviving joint tenant owner did not execute the transfer on death
deed, the deed is ineffective to transfer any interest and the deed is void. An estate in joint
tenancy is not severed or affected by the subsequent execution of a transfer on death deed
and the right of a surviving joint tenant owner who did not execute the transfer on death
deed shall prevail over a grantee beneficiary named in a transfer on death deed unless the
deed specifically states that it severs the joint tenancy ownership.
new text end

new text begin Subd. 7. new text end

new text begin Execution by attorney-in-fact. new text end

new text begin A transfer on death deed may be executed
by a duly appointed attorney-in-fact pursuant to a power of attorney which grants the
attorney-in-fact the authority to execute deeds.
new text end

new text begin Subd. 8. new text end

new text begin Recording requirements and authorization. new text end

new text begin A transfer on death deed
is valid if the deed is recorded in a county in which at least a part of the real property
described in the deed is located and is recorded before the death of the grantor owner
upon whose death the conveyance or transfer is effective. A transfer on death deed is not
effective for purposes of section 507.34, 508.47, or 508A.47 until the deed is recorded
in the county in which the real property is located. When a transfer on death deed is
presented for recording, no certification by the county auditor as to transfer of ownership
and current and delinquent taxes shall be required or made and the transfer on death deed
shall not be required to be accompanied by a certificate of real estate value. A transfer
on death deed that otherwise satisfies all statutory requirements for recording may be
recorded and shall be accepted for recording in the county in which the property described
in the deed is located. If any part of the property described in the transfer on death deed
is registered property, the registrar of titles shall accept the transfer on death deed for
recording only if at least one of the grantors who executes the transfer on death deed
appears of record to have an ownership interest in the property described in the deed. No
certification or approval of a transfer on death deed shall be required of the examiner of
titles prior to recording of the deed in the office of the registrar of titles.
new text end

new text begin Subd. 9. new text end

new text begin Deed to trustee or other entity. new text end

new text begin A transfer on death deed may transfer an
interest in real property to the trustee of an inter vivos trust even if the trust is revocable,
to the trustee of a testamentary trust or to any other entity legally qualified to hold title to
real property under the laws of this state.
new text end

new text begin Subd. 10. new text end

new text begin Revocation or modification of transfer on death deed. new text end

new text begin (a) A transfer
on death deed may be revoked at any time by the grantor owner or, if there is more than
one grantor owner, by any of the grantor owners. To be effective, the revocation must
be recorded in the county in which at least a part of the real property is located before
the death of the grantor owner or owners who execute the revocation. The revocation is
not effective for purposes of section 507.34, 508.47, or 508A.47 until the revocation is
recorded in the county in which the real property is located. Subject to subdivision 6, if
the real property is owned as joint tenants and if the revocation is not executed by all of
the grantor owners, the revocation is not effective unless executed by the last surviving
grantor owner.
new text end

new text begin (b) If a grantor owner conveys to a third party, subsequent to the recording of the
transfer on death deed, by means other than a transfer on death deed, all or a part of such
grantor owner's interest in the property described in the transfer on death deed, no transfer
of the conveyed interest shall occur on such grantor owner's death and the transfer on
death deed shall be ineffective as to the conveyed or transferred interests, but the transfer
on death deed remains effective with respect to the conveyance or transfer on death of
any other interests described in the transfer on death deed owned by the grantor owner
at the time of the grantor owner's death.
new text end

new text begin (c) A transfer on death deed is a "governing instrument" within the meaning of
section 524.2-804 and, except as may otherwise be specifically provided for in the
transfer on death deed, is subject to the same provisions as to revocation, revival, and
nonrevocation set forth in section 524.2-804.
new text end

new text begin Subd. 11. new text end

new text begin Antilapse; deceased beneficiary; words of survivorship. new text end

new text begin (a) If a grantee
beneficiary who is a grandparent or lineal descendant of a grandparent of the grantor
owner fails to survive the grantor owner, the issue of the deceased grantee beneficiary who
survive the grantor owner take in place of the deceased grantee beneficiary. If they are all
of the same degree of kinship to the deceased grantee beneficiary, they take equally. If
they are of unequal degree, those of more remote degree take by right of representation.
new text end

new text begin (b) For the purposes of this subdivision, words of survivorship such as, in a
conveyance to an individual, "if he or she survives me," or, in a class gift, to "my surviving
children," are a sufficient indication of intent to condition the conveyance or transfer upon
the beneficiary surviving the grantor owner.
new text end

new text begin Subd. 12. new text end

new text begin Lapse. new text end

new text begin If all beneficiaries and all successor beneficiaries, if any,
designated in a transfer on death deed, and also all successor beneficiaries who would take
under the antilapse provisions of subdivision 11, fail to survive the grantor owner or the
last survivor of the grantor owners if there are multiple grantor owners, if the beneficiary
is a trust which has been revoked prior to the grantor owner's death, or if the beneficiary is
an entity no longer in existence at the grantor owner's death, no transfer shall occur and
the transfer on death deed is void.
new text end

new text begin Subd. 13. new text end

new text begin Multiple transfer on death deeds. new text end

new text begin If a grantor owner executes and
records more than one transfer on death deed conveying the same interest in real property
or a greater interest in the real property, the transfer on death deed that has the latest
acknowledgment date and that is recorded before the death of the grantor owner upon
whose death the conveyance or transfer is conditioned is the effective transfer on death
deed and all other transfer on death deeds, if any, executed by the grantor owner or the
grantor owners are ineffective to transfer any interest and are void.
new text end

new text begin Subd. 14. new text end

new text begin Nonademption; unpaid proceeds of sale, condemnation, or insurance;
sale by conservator or guardian. new text end

new text begin If at the time of the death of the grantor owner upon
whose death the conveyance or transfer is stated to be effective, the grantor owner did
not own a part or all of the real property described in the transfer on death deed, no
conveyance or transfer to the beneficiary of the nonowned part of the real property shall
occur upon the death of the grantor owner and the transfer on death deed is void as to the
nonowned part of the real property, but the beneficiary shall have the same rights to unpaid
proceeds of sale, condemnation or insurance, and, if sold by a conservator or guardian
of the grantor owner during the grantor owner's lifetime, the same rights to a general
pecuniary devise, as that of a specific devisee as set forth in section 524.2-606.
new text end

new text begin Subd. 15. new text end

new text begin Nonexoneration. new text end

new text begin Except as otherwise provided in subdivision 3, a
conveyance or transfer under a transfer on death deed passes the described property
subject to any mortgage or security interest existing at the date of death of the grantor
owner, without right of exoneration, regardless of any statutory obligations to pay the
grantor owner's debts upon death and regardless of a general directive in the grantor
owner's will to pay debts.
new text end

new text begin Subd. 16. new text end

new text begin Disclaimer by beneficiary. new text end

new text begin A grantee beneficiary's interest under a
transfer on death deed may be disclaimed as provided in section 501B.86, or as otherwise
provided by law.
new text end

new text begin Subd. 17. new text end

new text begin Effect on other conveyances. new text end

new text begin This section does not prohibit other
methods of conveying property that are permitted by law and that have the effect of
postponing ownership or enjoyment of an interest in real property until the death of the
owner. This section does not invalidate any deed that is not a transfer on death deed and
that is otherwise effective to convey title to the interests and estates described in the deed
that is not recorded until after the death of the owner.
new text end

new text begin Subd. 18. new text end

new text begin Notice, consent, and delivery not required. new text end

new text begin The signature, consent or
agreement of, or notice to, a grantee beneficiary under a transfer on death deed, or delivery
of the transfer on death deed to the grantee beneficiary, is not required for any purpose
during the lifetime of the grantor owner.
new text end

new text begin Subd. 19. new text end

new text begin Nonrevocation by will. new text end

new text begin A transfer on death deed that is executed,
acknowledged, and recorded in accordance with this section is not revoked by the
provisions of a will.
new text end

new text begin Subd. 20. new text end

new text begin Proof of survivorship and clearance from public assistance claims
and liens; recording. new text end

new text begin An affidavit of identity and survivorship with a certified copy of a
record of death as an attachment may be combined with a clearance certificate under this
section and the combined documents may be recorded separately or as one document in
each county in which the real estate described in the clearance certificate is located. The
affidavit, record of death, and clearance certificate, whether combined or separate shall be
prima facie evidence of the facts stated in each, and the registrar of titles may rely on the
statements to transfer title to the property described in the clearance certificate.
new text end

new text begin Subd. 21. new text end

new text begin After-acquired property. new text end

new text begin Except as provided in this subdivision, a
transfer on death deed is not effective to transfer any interest in real property acquired by a
grantor owner subsequent to the date of signing of a transfer on death deed. A grantor
owner may provide by specific language in a transfer on death deed that the transfer on
death deed will apply to any interest in the described property acquired by the grantor
owner after the signing or recording of the deed.
new text end

new text begin Subd. 22. new text end

new text begin Anticipatory alienation prohibited. new text end

new text begin The interest of a grantee beneficiary
under a transfer on death deed which has not yet become effective is not subject to
alienation; assignment; encumbrance; appointment or anticipation by the beneficiary;
garnishment; attachment; execution or bankruptcy proceedings; claims for alimony,
support, or maintenance; payment of other obligations by any person against the
beneficiary; or any other transfer, voluntary or involuntary, by or from any beneficiary.
new text end

new text begin Subd. 23. new text end

new text begin Clearance for public assistance claims and liens. new text end

new text begin Any person claiming
an interest in real property conveyed or transferred by a transfer on death deed, or the
person's attorney or other agent, may apply to the county agency in the county in which
the real property is located for a clearance certificate for the real property described in
the transfer on death deed. The application shall contain the same information and shall
be submitted, processed, and resolved in the same manner and on the same terms and
conditions as provided in section 525.313 for a clearance certificate in a decree of descent
proceeding, except that a copy of a notice of hearing does not have to accompany the
application. The application may contain a statement that the applicant, after reasonably
diligent inquiry, is not aware of the existence of a predeceased spouse or the existence of
a claim which could be recovered under section 246.53, 256B.15, 256D.16, 261.04, or
514.981. If the county agency determines that a claim or lien exists under section 246.53,
256B.15, 256D.16, 261.04, or 514.981, the provisions of section 525.313 shall apply to
collection, compromise, and settlement of the claim or lien. A person claiming an interest
in real property transferred or conveyed by a transfer on death deed may petition or move
the district court, as appropriate, in the county in which the real property is located or in
the county in which a probate proceeding affecting the estate of the grantor of the transfer
on death deed is pending, for an order allowing sale of the real property free and clear
of any public assistance claim or lien but subject to disposition of the sale proceeds as
provided in section 525.313. On a showing of good cause and subject to such notice as the
court may require, the court without hearing may issue an order allowing the sale free
and clear of any public assistance claim or lien on such terms and conditions as the court
deems advisable to protect the interests of the state or county agency.
new text end

new text begin Subd. 24. new text end

new text begin Form of transfer on death deed. new text end

new text begin A transfer on death deed may be
substantially in the following form:
new text end

new text begin Transfer on Death Deed
new text end

new text begin I (we) _______________________ (grantor owner or owners and spouses,
if any, with marital status designated), grantor(s), hereby convey(s) and
quitclaim(s) to _______________________ (grantee beneficiary, whether one
or more) effective (check only one of the following)
new text end

new text begin ___ on the death of the grantor owner, if only one grantor is named above, or
on the death of the last of the grantor owners to die, if more than one grantor
owner is named above, or
new text end

new text begin ___ on the death of (name of grantor owner)
new text end

new text begin _______________________ (must be one of the grantor owners named above),
the following described real property:
new text end

new text begin (Legal description)
new text end

new text begin If checked, the following optional statement applies:
new text end

new text begin ___ When effective, this instrument conveys any and all interests in the
described real property acquired by the grantor owner(s) before, on, or after the
date of this instrument.
new text end

		_
		new text begin (Signature of grantor(s)) new text end
	new text begin (acknowledgment) new text end

new text begin Subd. 25. new text end

new text begin Form of instrument of revocation. new text end

new text begin An instrument of revocation may be
substantially in the following form:
new text end

new text begin Revocation of Transfer on Death Deed
new text end

new text begin The undersigned hereby revokes the transfer on death deed recorded on
__________, ____, as Document No. __________ (or in Book __________
of _________, Page ____) in the office of the (County Recorder) (Registrar of
Titles) of _____________ County, Minnesota, affecting real property legally
described as follows:
new text end

	new text begin (legal description) new text end
		new text begin Dated: new text end
		_
		new text begin Signature new text end
	new text begin (acknowledgment) new text end

Sec. 4.

Minnesota Statutes 2006, section 508.52, is amended to read:

508.52 CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF
NEW CERTIFICATE.

An owner of registered land who desires to convey the land, or a portion thereof, in
fee, shall execute a deed of conveyance, and deleted text begin file deleted text end new text begin record new text end the deed with the registrar. The
deed of conveyance shall be deleted text begin filed deleted text end new text begin recorded new text end and endorsed with the number and place of
registration of the certificate of title. Before canceling the outstanding certificate of title
the registrar shall show by memorial thereon the registration of the deed on the basis of
which it is canceled. The encumbrances, claims, or interests adverse to the title of the
registered owner shall be stated upon the new certificate, except so far as they may be
simultaneously released or discharged. new text begin The registrar shall not carry forward as a memorial
on the new certificate of title any memorials of a transfer on death deed if the grantors of
the transfer on death deed retain no fee interest in the land covered by the new certificate. new text end
The certificate of title shall be marked "Canceled" by the registrar, who shall enter in the
register a new certificate of title to the grantee and prepare and deliver to the grantee a
copy of the new certificate of title. If a deed in fee is for a portion of the land described in
a certificate of title, the memorial of the deed entered by the registrar shall include the
legal description contained in the deed and the registrar shall enter a new certificate of title
to the grantee for the portion of the land conveyed and, except as otherwise provided in
this section, issue a residue certificate of title to the grantor for the portion of the land not
conveyed. The registrar shall prepare and deliver to each of the parties a copy of their
respective certificates of title. In lieu of canceling the grantor's certificate of title and
issuing a residue certificate to the grantor for the portion of the land not conveyed, the
registrar may if the grantor's deed does not divide a parcel of unplatted land, and in the
absence of a request to the contrary by the registered owner, mark by the land description
on the certificate of title "Part of land conveyed, see memorials." The fee for a residue
certificate of title shall be paid to the registrar only when the grantor's certificate of title
is canceled after the conveyance by the grantor of a portion of the land described in the
grantor's certificate of title. When two or more successive conveyances of the same
property are filed for registration on the same day the registrar may enter a certificate
in favor of the grantee or grantees in the last of the successive conveyances, and the
memorial of the previous deed or deeds entered on the prior certificate of title shall have
the same force and effect as though the prior certificate of title had been entered in favor
of the grantee or grantees in the earlier deed or deeds in the successive conveyances. The
fees for the registration of the earlier deed or deeds shall be the same as the fees prescribed
for the entry of memorials. The registrar of titles, with the consent of the transferee, may
mark "See memorials for new owner(s)" by the names of the registered owners on the
certificate of title and also add to the memorial of the transferring conveyance a statement
that the memorial shall serve in lieu of a new certificate of title in favor of the grantee or
grantees therein noted and may refrain from canceling the certificate of title until the time
it is canceled by a subsequent transfer, and the memorial showing such transfer of title
shall have the same effect as the entry of a new certificate of title for the land described in
the certificate of title; the fee for the registration of a conveyance without cancellation of
the certificate of title shall be the same as the fee prescribed for the entry of a memorial.

Sec. 5.

Minnesota Statutes 2006, section 508A.52, is amended to read:

508A.52 CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF
NEW CPT.

An owner of land registered under sections 508A.01 to 508A.85 who desires to
convey the land, or a portion of it, in fee, shall execute a deed of conveyance, and deleted text begin file deleted text end new text begin
record new text end the deed with the registrar. The deed of conveyance shall be deleted text begin filed deleted text end new text begin recorded new text end and
endorsed with the number and place of registration of the CPT. Before canceling the
outstanding CPT, the registrar shall show by memorial on it the registration of the deed on
the basis of which it is canceled. The encumbrances, claims, or interests adverse to the
title of the registered owner shall be stated upon the new CPT, except so far as they may be
simultaneously released or discharged. new text begin The registrar shall not carry forward as a memorial
on the new CPT any memorials of a transfer on death deed if the grantors of the transfer
on death deed retain no fee interest in the real property covered by the new CPT. new text end The CPT
shall be marked "Canceled" by the registrar, who shall enter in the register a new CPT
to the grantee, and prepare and deliver to the grantee a copy of the new CPT. If a deed
in fee is for a portion of the land described in a CPT, the memorial of the deed entered
by the registrar shall include the legal description contained in the deed and the registrar
shall enter a new CPT to the grantee for the portion of the land conveyed and, except as
otherwise provided in this section, issue a residue CPT to the grantor for the portion of
the land not conveyed. The registrar shall prepare and deliver to each of the parties a
copy of their respective deleted text begin CPTs deleted text end new text begin CPT's new text end . In lieu of canceling the grantor's CPT and issuing a
residue CPT to the grantor for the portion of the land not conveyed, the registrar may if the
grantor's deed does not divide a parcel of unplatted land, and in the absence of a request to
the contrary by the registered owner, mark by the land description on the CPT "Part of
land conveyed, see memorials." The fee for a residue CPT shall be paid to the registrar
only when the grantor's CPT is canceled after the conveyance by the grantor of a portion
of the land described in the grantor's CPT. When two or more successive conveyances
of the same property are filed for registration on the same day the registrar may enter a
CPT in favor of the grantee or grantees in the last of the successive conveyances, and the
memorial of the previous deed or deeds entered on the prior CPT shall have the same force
and effect as though the prior CPT had been entered in favor of the grantee or grantees in
the earlier deed or deeds in the successive conveyances. The fees for the registration of the
earlier deed or deeds shall be the same as the fees prescribed for the entry of memorials.
The registrar of titles, with the consent of the transferee, may mark "See memorials for
new owner(s)" by the names of the registered owners on the CPT and also add to the
memorial of the transferring conveyance a statement that the memorial shall serve in lieu
of a new CPT in favor of the grantee or grantees noted in it and may refrain from canceling
the CPT until the time it is canceled by a subsequent transfer, and the memorial showing
the transfer of title shall have the same effect as the entry of a new CPT for the land
described in the CPT. The fee for the registration of a conveyance without cancellation of
the CPT shall be the same as the fee prescribed for the entry of a memorial.

Sec. 6.

Minnesota Statutes 2006, section 524.2-702, is amended to read:

524.2-702 REQUIREMENT OF SURVIVAL FOR 120 HOURS FOR
DEVISEES, BENEFICIARIES OF CERTAIN TRUSTS, AND APPOINTEES OF
CERTAIN POWERS OF APPOINTMENT; SIMULTANEOUS DEATH ACT FOR
OTHER CASES.

(a) Requirement of survival for 120 hours. A beneficiary of a trust in which
the grantor has reserved a power to alter, amend, revoke, or terminate the provisions of
the trust who fails to survive the grantor by 120 hours, a devisee who fails to survive
the testator by 120 hours, new text begin a beneficiary named in a transfer on death deed under
section 507.071 who fails to survive by 120 hours the grantor owner upon whose death
the conveyance to the beneficiary becomes effective, new text end or an appointee of a power of
appointment taking effect at the death of the holder of the power who fails to survive the
holder of the power by 120 hours is deemed to have predeceased the grantor, new text begin grantor
owner new text end testator, or holder of the power for purposes of determining title to property passing
by the trust instrument, by the testator's will, new text begin by the transfer on death deed, new text end or by the
exercise of the power of appointment.

(b)(1) Title to property in other cases. In cases not governed by section 524.2-104
or paragraph (a), where the title to property or the devolution thereof depends upon
priority of death and there is no sufficient evidence that the persons have died otherwise
than simultaneously, the property of each person shall be disposed of as if the person had
survived, except as provided otherwise in this paragraph.

(2) Division of property. Where two or more beneficiaries are designated to take
successively by reason of survivorship under another person's disposition of property
and there is no sufficient evidence that these beneficiaries have died otherwise than
simultaneously the property thus disposed of shall be divided into as many equal portions
as there are successive beneficiaries and these portions shall be distributed respectively to
those who would have taken in the event that each designated beneficiary had survived.

(3) Division of property. Where there is no sufficient evidence that two joint
tenants or tenants by the entirety have died otherwise than simultaneously the property
so held shall be distributed one-half as if one had survived and one-half as if the other
had survived. If there are more than two joint tenants and all of them have so died the
property thus distributed shall be in the proportion that one bears to the whole number of
joint tenants.

(4) Division of property. Where the insured and the beneficiary in a policy of
life or accident insurance have died and there is no sufficient evidence that they have
died otherwise than simultaneously the proceeds of the policy shall be distributed as if
the insured had survived the beneficiary.

(c) Not retroactive. This section does not apply to the distribution of the property of
a person who has died before it takes effect. Paragraph (a) applies only to persons who
die on or after August 1, 1999.

(d) Application. This section does not apply in the case of wills, trusts, deeds,
contracts of insurance, or documents exercising powers of appointment wherein provision
has been made for distribution of property different from the provisions of this section.
Paragraph (a) does not apply to trusts which are part of a qualified or nonqualified
retirement plan or individual retirement accounts.

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective August 1, 2008, and applies to instruments of conveyance of
real property recorded on or after that date, regardless of an instrument's date of execution.
new text end

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2007 Supplement, section 507.24, subdivision 2, is
amended to read:

Subd. 2.

Original signatures required.

(a) Unless otherwise provided by law, an
instrument affecting real estate that is to be recorded as provided in this section or other
applicable law must contain the original signatures of the parties who execute it and of the
notary public or other officer taking an acknowledgment. However, a financing statement
that is recorded as a filing pursuant to section 336.9-502(b) need not contain: (1) the
signatures of the debtor or the secured party; or (2) an acknowledgment. new text begin An instrument
acknowledged in a representative capacity as defined in section 358.41 on behalf of a
corporation, partnership, limited liability company, or trust that is otherwise entitled to
be recorded shall be recorded if the acknowledgment made in a representative capacity
is substantially in the form prescribed in chapter 358, without further inquiry into the
authority of the person making the acknowledgment.
new text end

(b)(1) Any electronic instruments, including signatures and seals, affecting real
estate may only be recorded as part of a pilot project for the electronic filing of real
estate documents implemented by the task force created in Laws 2000, chapter 391, or
by the Electronic Real Estate Recording Task Force created under section 507.094. The
Electronic Real Estate Recording Task Force created under section 507.094 may amend
standards set by the task force created in Laws 2000, chapter 391, and may set new or
additional standards and establish pilot projects to the full extent permitted in section
507.094, subdivision 2, paragraph (b). Documents recorded in conformity with those
standards and in those pilot projects are deemed to meet the requirements of this section.

(2)(i) A county that participated in the pilot project for the electronic filing of real
estate documents under the task force created in Laws 2000, chapter 391, may continue to
record or file documents electronically, if:

(A) the county complies with standards adopted by the task force; and

(B) the county uses software that was validated by the task force.

(ii) A county that did not participate in the pilot project may record or file a real
estate document electronically, if:

(A) the document to be recorded or filed is of a type included in the pilot project
for the electronic filing of real estate documents under the task force created in Laws
2000, chapter 391;

(B) the county complies with the standards adopted by the task force;

(C) the county uses software that was validated by the task force; and

(D) the task force created under section 507.094, votes to accept a written
certification of compliance with paragraph (b), clause (2), of this section by the county
board and county recorder of the county to implement electronic filing under this section.

(c) Notices filed pursuant to section 168A.141, subdivisions 1 and 3, need not
contain an acknowledgment.

Sec. 2.

Minnesota Statutes 2006, section 508.02, is amended to read:

508.02 REGISTERED LAND; SAME INCIDENTS AS UNREGISTERED;
NO ADVERSE POSSESSION.

Registered land shall be subject to the same burdens and incidents which attach by
law to unregistered land. This chapter shall not operate to relieve registered land or the
owners thereof from any rights, duties, or obligations incident to or growing out of the
marriage relation, or from liability to attachment on mesne process, or levy on execution,
or from liability to any lien or charge of any description, created or established by law
upon the land or the buildings situated thereon, or the interest of the owner in such land
or buildings. It shall not operate to change the laws of descent or the rights of partition
between cotenants, or the right to take the land by eminent domain. It shall not operate to
relieve such land from liability to be taken or recovered by any assignee or receiver under
any provision of law relative thereto, and shall not operate to change or affect any other
rights, burdens, liabilities, or obligations created by law and applicable to unregistered
land except as otherwise expressly provided herein. No title to registered land in
derogation of that of the registered owner shall be acquired by prescription or by adverse
possession deleted text begin . deleted text end new text begin , but the common law doctrine of practical location of boundaries applies
to registered land whenever registered. Section 508.671 shall apply in a proceedings
subsequent to establish a boundary by practical location for registered land.
new text end

Sec. 3.

Minnesota Statutes 2006, section 508.48, is amended to read:

508.48 INSTRUMENTS AFFECTING TITLE FILED WITH REGISTRAR;
NOTICE.

new text begin (a) new text end Every conveyance, lien, attachment, order, decree, or judgment, or other
instrument or proceeding, which would affect the title to unregistered land under existing
laws, if recorded, or filed with the county recorder, shall, in like manner, affect the title to
registered land if filed and registered with the registrar in the county where the real estate
is situated, and shall be notice to all persons from the time of such registering or filing
of the interests therein created. Neither the reference in a registered instrument to an
unregistered instrument or interest nor the joinder in a registered instrument by a party or
parties with no registered interest shall constitute notice, either actual or constructive, of
an unregistered interest.

new text begin (b) An instrument acknowledged in a representative capacity as defined in section
358.41 on behalf of a corporation, partnership, limited liability company, or trust that is
otherwise entitled to be recorded shall be recorded if the acknowledgment made in a
representative capacity is substantially in the form prescribed in chapter 358, without
further inquiry into the authority of the person making the acknowledgment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 508.671, subdivision 1, is amended to read:

Subdivision 1.

Petition.

An owner of registered land new text begin having one or more common
boundaries with registered or unregistered land or an owner of unregistered land having
one or more common boundaries with registered land new text end may apply by a duly verified petition
to the court to have all or some of the new text begin common new text end boundary lines judicially determined. The
petition shall contain the full names and post office addresses of all owners of adjoining
lands which are in any manner affected by the boundary determination. At the time of
the filing of the petition with the court administrator, a copy of it, duly certified by the
court administrator, shall be filed for record with the county recorder. If any of the
adjoining lands are registered, the certified copy of the petition also shall be filed with the
registrar of titles and entered as a memorial on the certificate of title for those lands. When
recorded or filed, the certified copy of the petition shall be notice forever to purchasers
and encumbrancers of the pendency of the proceeding and of all matters referred to in the
court files and records pertaining to the proceeding. The owner shall have the premises
surveyed by a licensed land surveyor and shall file in the proceedings a plat of the survey
showing the correct location of the boundary line or lines to be determined. There also
shall be filed with the court administrator a memorandum abstract, satisfactory to the
examiner, showing the record owners and encumbrancers of the adjoining lands which
are in any manner affected by the boundary line determination. The petition shall be
referred to the examiner of titles for examination and report in the manner provided for the
reference of initial applications for registration. Notice of the proceeding shall be given to
all interested persons by the service of a summons which shall be issued in the form and
served in the manner as in initial applications.

Sec. 5.

Minnesota Statutes 2006, section 508A.02, subdivision 1, is amended to read:

Subdivision 1.

Effect of registration.

Land registered under sections 508A.01 to
508A.85 shall be registered subject to the rights of persons in possession, if any, and rights
which would be disclosed by a survey, except that no title in derogation of that of the
registered owner shall be acquired by prescription or adverse possession after the date
of the first CPT; otherwise, land registered under sections 508A.01 to 508A.85 shall be
subject to the same rights, protections, burdens, and incidents which attach by law to
lands as provided in section 508.02. new text begin The common law doctrine of practical location of
boundaries applies to property registered under sections 508A.01 to 508A.85 whenever
registered. Section 508.671 shall apply in a proceedings subsequent to establish a
boundary by practical location for property registered under sections 508A.01 to 508A.85.
new text end

Sec. 6.

Minnesota Statutes 2006, section 508A.48, is amended to read:

508A.48 FILED INSTRUMENT AFFECTING TITLE IS NOTICE.

new text begin (a) new text end Every conveyance, lien, attachment, order, decree, or judgment, or other
instrument or proceeding, which would affect the title to unregistered land under existing
laws, if recorded, or filed with the county recorder, shall, in like manner, affect the title to
land registered under sections 508A.01 to 508A.85 if filed and registered with the registrar
in the county where the real estate is situated, and shall be notice to all persons from the
time of the registering or filing of the interests therein created. Neither the reference
in a registered instrument to an unregistered instrument or interest nor the joinder in
a registered instrument by a party or parties with no registered interest shall constitute
notice, either actual or constructive, of an unregistered interest.

new text begin (b) An instrument acknowledged in a representative capacity as defined in section
358.41 on behalf of a corporation, partnership, limited liability company, or trust that is
otherwise entitled to be recorded shall be recorded if the acknowledgment made in a
representative capacity is substantially in the form prescribed in chapter 358, without
further inquiry into the authority of the person making the acknowledgment.
new text end

Sec. 7.

Minnesota Statutes 2006, section 557.02, is amended to read:

557.02 NOTICE OF LIS PENDENS.

In all actions in which the title to, or any interest in or lien upon, real property is
involved or affected, or is brought in question by either party, any party thereto, at the time
of filing the complaint, or at any time thereafter during the pendency of such action, may
file for record with the county recorder of each county in which any part of the premises
lies a notice of the pendency of the action, containing the names of the parties, the object
of the action, and a description of the real property in such county involved, affected or
brought in question thereby. From the time of the filing of such notice, and from such time
only, the pendency of the action shall be notice to purchasers and encumbrancers of the
rights and equities of the party filing the same to the premises. When any pleading is
amended in such action, so as to alter the description of, or to extend the claim against,
the premises affected, a new notice may be filed, with like effect. Such notice shall be
recorded deleted text begin in the same book and deleted text end in the same manner in which mortgages are recorded, and
may be discharged deleted text begin by an entry to that effect in the margin of the record by the party filing
the same, or the party's attorney, in the presence of the recorder, or deleted text end by writing executed
and acknowledged in the manner of conveyance deleted text begin , whereupon the recorder shall enter a
minute thereof on the margin of such record deleted text end . The filing of such lis pendens at the time
of filing the complaint and before the commencement of the action shall have no force,
effect, or validity against the premises described in the lis pendens, unless the filing of the
complaint is followed by the service of the summons in the action within 90 days after the
filing of the complaint therein. Any party claiming any title or interest in or to the real
property involved or affected may on such notice as the court shall in each case prescribe,
make application to the district court in the county in which the action is pending or in
which the real property involved or affected is situated, for an order discharging the lis
pendens of record, when any such action has not been brought on for trial within two years
after the filing of the lis pendens and in case the court orders the lis pendens discharged
of record upon the filing of a certified copy of the order of the court in the office of the
county recorder, where the real property is situated, the lis pendens shall be void and of
no force nor effect.

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin (a) Sections 1, 3, and 6 are effective the day following final enactment, and apply
to documents acknowledged before, on, or after that date.
new text end

new text begin (b) Sections 2, 4, and 5 are effective August 1, 2008, and apply to land registered
under Minnesota Statutes, chapter 508 or 508A, whenever registered.
new text end