HF 1037

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

A bill for an act
relating to transportation; establishing reconveyance procedures for real property
having errors or omissions in the title; amending Minnesota Statutes 2006,
section 161.442.

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

Section 1.

Minnesota Statutes 2006, section 161.442, is amended to read:

161.442 RECONVEYANCE TO FORMER OWNER.

new text begin Subdivision 1. new text end

new text begin Authority to reconvey real property. new text end

Notwithstanding sections
161.23, 161.41, 161.411, 161.43, 161.44, or any other statute, the commissioner of
transportation, with the consent of the owner, may transfer, sell, or convey real property
including fixtures, and interests in real property including easements, to the owner from
whom the property was acquired by the state for trunk highway purposes through a pending
eminent domain action. The transfer of title may be by stipulation, partial dismissal, bill
of sale, or conveyance. Any resulting change in the state's acquisition must be explained
in the final certificate for that action. This deleted text begin provision deleted text end new text begin subdivision new text end does not confer on a
landowner the right to compel a reconveyance without the consent of the commissioner.

new text begin Subd. 2. new text end

new text begin Required reconveyance of real property. new text end

new text begin (a) For purposes of this
subdivision:
new text end

new text begin (1) "Defective title" means any defect in a title for real property, whether through
accident, error, forgery, fraud, or otherwise, including but not limited to encroachments,
unclear interest in structures or fixtures, improper legal description, improper foreclosure,
undisclosed interests or liens, errors in tax records, or other errors or omissions.
new text end

new text begin (2) "Former owner" means the owner, or owner's surviving spouse, from whom
real property was acquired by the state for trunk highway purposes, whether through an
easement, direct purchase, or eminent domain proceeding.
new text end

new text begin (b) Upon petition filed by a former owner with the commissioner, the commissioner
shall investigate and determine, within 60 days, whether real property acquired by the
commissioner involves a defective title. The petition must specify the property in question
and be in a form prescribed by the commissioner.
new text end

new text begin (c) Notwithstanding subdivision 1, sections 16B.281 to 16B.287, or any other law
to the contrary, the commissioner shall reconvey and quitclaim to the former owner,
real property including fixtures, and interests in real property including easements,
consisting of all, or the relevant portion, of the property that was acquired, if the following
requirements are met:
new text end

new text begin (1) the commissioner has found, following a title investigation under paragraph (b),
that the real property involves a defective title;
new text end

new text begin (2) the reconveyance has the consent of the former owner; and
new text end

new text begin (3) the real property was part of a larger tract and the remainder of the tract is still
owned by the former owner.
new text end

new text begin (d) The commissioner shall not charge a fee for a title investigation under
paragraph (b), and shall not require compensation for real property reconveyed under this
subdivision. The former owner is responsible for payment of the costs of recording the
instrument of conveyance.
new text end

new text begin (e) Nothing in this subdivision prevents the commissioner, subsequent to the
reconveyance, from pursuing acquisition of the reconveyed property through direct
purchase or eminent domain proceedings.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to all real property no matter when the property was acquired by the
commissioner of transportation.
new text end