1.1                          A bill for an act
  1.2             relating to real property; providing that sellers 
  1.3             warrant access to a public road unless specifically 
  1.4             excluded; providing a remedy for existing parcels; 
  1.5             amending Minnesota Statutes 1996, section 164.08, 
  1.6             subdivision 2; proposing coding for new law in 
  1.7             Minnesota Statutes, chapter 507. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 164.08, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [MANDATORY ESTABLISHMENT; CONDITIONS.] Upon 
  1.12  petition presented to the town board by the owner of a tract of 
  1.13  land containing at least five acres, who has no access thereto 
  1.14  except over the lands of others, or whose access thereto is less 
  1.15  than two rods in width, the town board by resolution shall 
  1.16  establish a cartway at least two rods wide connecting the 
  1.17  petitioner's land with a public road.  The town board may select 
  1.18  an alternative route other than that petitioned for if the 
  1.19  alternative is deemed by the town board to be less disruptive 
  1.20  and damaging to the affected landowners and in the public's best 
  1.21  interest.  In an unorganized territory, the board of county 
  1.22  commissioners of the county in which the tract is located shall 
  1.23  act as the town board.  The proceedings of the town board shall 
  1.24  be in accordance with section 164.07.  The amount of damages 
  1.25  shall be paid by the petitioner to the town before such cartway 
  1.26  is opened.  For the purposes of this subdivision damages shall 
  2.1   mean the compensation, if any, awarded to the owner of the land 
  2.2   upon which the cartway is established together with the cost of 
  2.3   professional and other services which the town may incur in 
  2.4   connection with the proceedings for the establishment of the 
  2.5   cartway.  The town board may by resolution require the 
  2.6   petitioner to post a bond or other security acceptable to the 
  2.7   board for the total estimated damages before the board takes 
  2.8   action on the petition. 
  2.9      Town road and bridge funds shall not be expended on the 
  2.10  cartway unless the town board, or the county board acting as the 
  2.11  town board in the case of a cartway established in an 
  2.12  unorganized territory, by resolution determines that an 
  2.13  expenditure is in the public interest.  If no resolution is 
  2.14  adopted to that effect, the grading or other construction work 
  2.15  and the maintenance of the cartway is the responsibility of the 
  2.16  petitioner, subject to the provisions of section 164.10.  After 
  2.17  the cartway has been constructed the town board, or the county 
  2.18  board in the case of unorganized territory, may by resolution 
  2.19  designate the cartway as a private driveway with the written 
  2.20  consent of the affected landowner in which case from the 
  2.21  effective date of the resolution no town road and bridge funds 
  2.22  shall be expended for maintenance of the driveway; provided that 
  2.23  the cartway shall not be vacated without following the vacation 
  2.24  proceedings established under section 164.07.  
  2.25     Sec. 2.  [507.215] [WARRANTY; ACCESS TO A PUBLIC ROAD.] 
  2.26     Subdivision 1.  [DEEDS.] A general warranty deed granted 
  2.27  for real property in this state is deemed to warrant that the 
  2.28  real property conveyed has access to a public road, either 
  2.29  directly or by use of an easement conveyed in the deed.  This 
  2.30  subdivision does not apply if the deed specifically states that 
  2.31  it does not warrant access to a public road. 
  2.32     Subd. 2.  [CONTRACTS FOR DEED.] A contract for deed 
  2.33  involving real property in this state is deemed to warrant that 
  2.34  the real property involved has access to a public road, either 
  2.35  directly or by use of an easement included in the contract for 
  2.36  deed.  This subdivision does not apply if the contract for deed 
  3.1   specifically states that it does not warrant access to a public 
  3.2   road or if the deed to be provided is not a general warranty 
  3.3   deed.  This warranty survives the fulfillment, cancellation, or 
  3.4   other termination of the contract for deed. 
  3.5      Subd. 3.  [PURCHASE AGREEMENTS.] A purchase agreement 
  3.6   involving real property in this state is deemed to warrant that 
  3.7   the real property involved in the purchase agreement has access 
  3.8   to a public road, either directly or through an easement 
  3.9   included in the purchase agreement.  This subdivision does not 
  3.10  apply if the purchase agreement does not provide for conveyance 
  3.11  by a general warranty deed.  This warranty survives the 
  3.12  fulfillment, cancellation, or other termination of the purchase 
  3.13  agreement. 
  3.14     Subd. 4.  [UNIFORM CONVEYANCING FORMS UPDATE.] Uniform 
  3.15  conveyancing forms adopted by the commissioner of commerce under 
  3.16  section 507.09 after January 1, 1999, shall, if appropriate to 
  3.17  the specific form, include a specific reference to the 
  3.18  warranties provided in subdivisions 1 and 2. 
  3.19     Subd. 5.  [REMEDIES.] Breach of a warranty provided by this 
  3.20  section entitles the victim of the breach to, at the option of 
  3.21  the victim: 
  3.22     (1) compensation for damages, which may include the actual 
  3.23  cost of establishing access to a public road, by private 
  3.24  purchase; use of section 164.08, subdivision 2; or otherwise, 
  3.25  and all fees and expenses incurred in connection with 
  3.26  establishing the access, including, but not limited to, 
  3.27  reasonable attorney fees; or 
  3.28     (2) a rescission of the transfer and the recovery of all 
  3.29  amounts expended in connection with the transfer and any related 
  3.30  financing, including, but not limited to, reasonable attorney 
  3.31  fees. 
  3.32     Sec. 3.  [EFFECTIVE DATE.] 
  3.33     Section 1 is effective the day following final enactment.  
  3.34  Section 2 is effective January 1, 1999, and applies to purchase 
  3.35  agreements entered into on or after that date, and to general 
  3.36  warranty deeds granted and contracts for deed entered into under 
  4.1   those purchase agreements.