SF 202

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/02/2025 09:11 a.m.

A bill for an act
relating to real property; providing for partition of real property; modifying certain
notice requirements for eminent domain proceedings; clarifying certain application
of a legislative enactment relating to transfer on death deeds; amending Minnesota
Statutes 2024, sections 117.115, subdivision 2; 117.145; Laws 2024, chapter 91,
section 3; proposing coding for new law in Minnesota Statutes, chapter 558;
proposing coding for new law as Minnesota Statutes, chapter 558A.

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

ARTICLE 1

PARTITION OF REAL PROPERTY

Section 1.

new text begin [558.001] APPLICABILITY.
new text end

new text begin This chapter applies to all partition actions commenced before August 1, 2025.
new text end

ARTICLE 2

MINNESOTA PARTITION ACT

Section 1.

new text begin [558A.01] SHORT TITLE.
new text end

new text begin Sections 558A.01 to 558A.29 may be cited as the "Minnesota Partition Act."
new text end

Sec. 2.

new text begin [558A.02] APPLICABILITY.
new text end

new text begin This chapter, and not chapter 558, applies to all partition actions commenced on or after
August 1, 2025.
new text end

Sec. 3.

new text begin [558A.03] PARTITION; SALE; WHO MAY BRING ACTION.
new text end

new text begin Subdivision 1. new text end

new text begin Concurrent interest. new text end

new text begin When two or more joint tenants or
tenants-in-common have concurrent interests in a fee simple, a life estate, or a leasehold
estate in real property, one or more of them may bring an action against the others holding
the same interests for a partition of the concurrent interests. The action may seek a sale of
all, or part of the interest being partitioned and division of the proceeds according to the
rights and interests of the interested parties, a partition in kind, or any other fair and equitable
remedy.
new text end

new text begin Subd. 2. new text end

new text begin Remainder interest. new text end

new text begin The holder of a remainder interest may bring an action
for partition in kind or by sale or for other relief against the life tenant or life tenants under
this chapter only to prevent waste of the remainder interest. The court may use its general
and equitable powers to order relief to prevent waste and achieve a result that is fair and
equitable to the parties.
new text end

Sec. 4.

new text begin [558A.04] DISTRICT COURT POWERS AND AUTHORITY.
new text end

new text begin The court may exercise its general equitable powers to achieve a result that is fair and
equitable to the parties.
new text end

Sec. 5.

new text begin [558A.05] LIENS.
new text end

new text begin Upon request of the parties the court has the authority to shift property interest or liens
from one property or part of a property to another property as part of the partition. In that
case, the lien holder shall be made a party to the action. This provision does not apply to
mortgage liens.
new text end

Sec. 6.

new text begin [558A.06] SUMMONS; SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Form of summons. new text end

new text begin The summons shall be addressed by name to all the
owners and lienholders who are known, and may also be addressed to all other persons
unknown having or claiming an interest in the property described in the complaint herein.
The summons may be served, at any time after filing the complaint with the district court,
in the same manner as a summons in a civil action. The plaintiff or any party may record
with the county recorder or registrar of titles as appropriate a notice lis pendens of the action.
new text end

new text begin Subd. 2. new text end

new text begin Notice by posting. new text end

new text begin If service of the summons and complaint is by publication,
not later than ten days after the date of the first publication, the plaintiff shall post a
conspicuous sign on the property that is the subject of the action. The sign must state that
the action has commenced and identify the name and address of the court and the common
designation by which the property is known. The court may require the plaintiff to publish
on the sign the name of the plaintiff and the known defendants.
new text end

Sec. 7.

new text begin [558A.07] COMPLAINT.
new text end

new text begin The complaint shall particularly set forth the interests of all persons in the property,
whether by way of ownership or lien, so far as known to the plaintiff; and if any such person,
or the person's share or interest, is unknown to the plaintiff, or is uncertain or contingent,
or the ownership of the inheritance depends upon an executory devise, or there is a contingent
remainder, so that such person cannot be named, that fact shall be set forth.
new text end

Sec. 8.

new text begin [558A.08] JUDGMENT FOR PARTITION; REFEREES.
new text end

new text begin Except as provided in section 558A.09, the title to the property and the rights of the
parties shall be established by evidence or by the written stipulation of the parties to be
affected thereby; and thereupon, in a proper case, the court shall render judgment that
partition be made accordingly, and may appoint at least one, but no more than three
disinterested and judicious persons as referees to sell the property, or a part thereof, or make
partition and set off the shares of the several persons interested as determined by the
judgment. Each referee must be disinterested and impartial and not a party to or a participant
in the action.
new text end

Sec. 9.

new text begin [558A.09] DISPUTE BETWEEN PARTIES IS NO DEFENSE.
new text end

new text begin If the title of the plaintiff to a certain undivided share of the property is proved or
admitted, it shall not be a defense that there is a dispute or litigation undetermined between
some of the parties as to the right or title of such parties in or to any undivided shares of
the property claimed by them; but in such case the court shall render judgment the property
be sold as in other cases, or that partition be made and shall cause the portion of the property
or of the proceeds thereof pertaining to such undivided shares in dispute to be allotted to
the parties according to their interest in the property. In case of sale, the court may order
the proceeds pertaining to such shares to be paid into court to be apportioned according to
each party's interest in the property.
new text end

Sec. 10.

new text begin [558A.10] DUTY AND POWERS OF REFEREE; REPORT; EXPENSES.
new text end

new text begin When a partition is ordered, the referee or referees shall sell the property by any means
to assure the highest and best price, under the most favorable terms. If the court orders
partition in kind, the referee or referees shall divide the property, and allot the several
portions thereof to the respective parties, quantity and quality relatively considered, according
to their respective rights, designating the several portions by proper landmarks, and may
employ a surveyor, with necessary assistants, to aid them therein. The referee may also
engage appraisers, real estate brokers or agents, legal counsel, cleaning services, contractors,
and other professionals that in the referee's opinion are reasonably necessary to assist in the
partition in kind. The referee or referees shall make a report of the proceedings, specifying
the manner of executing the documents for conveyance, and describing the property and in
the case of a partition in kind the share allotted to each party, with a particular description
thereof. The expenses and fees of the referee or referees, including those of a surveyor and
other professionals engaged by the referee, shall be paid by the parties in proportion to the
parties' interests, unless directed otherwise by the court.
new text end

Sec. 11.

new text begin [558A.11] CONSIDERATIONS FOR PARTITION IN KIND.
new text end

new text begin (a) In determining whether partition in kind would result in manifest prejudice to the
cotenants as a group, the court shall consider the following:
new text end

new text begin (1) whether the property practicably can be divided among the cotenants;
new text end

new text begin (2) whether partition in kind would apportion the property in such a way that the aggregate
fair market value of the parcels resulting from the division would be materially less than
the value of the property if it were sold as a whole, taking into account the condition under
which a court-ordered sale likely would occur;
new text end

new text begin (3) evidence of the collective duration of ownership or possession of the property by a
cotenant and one or more predecessors in title or predecessors in possession to the cotenant
who are or were relatives of the cotenant or each other;
new text end

new text begin (4) a cotenant's sentimental attachment to the property, including any attachment arising
because the property has ancestral or other unique or special value to the cotenant;
new text end

new text begin (5) the lawful use being made of the property by a cotenant and the degree to which the
cotenant would be harmed if the cotenant could not continue the same use of the property;
new text end

new text begin (6) the degree to which the cotenants have contributed their pro rata share of the property
taxes, insurance, and other expenses associated with maintaining ownership of the property
or have contributed to the physical improvement, maintenance, or upkeep of the property;
and
new text end

new text begin (7) any other relevant factor.
new text end

new text begin (b) The court may not consider any one factor in paragraph (a) to be dispositive without
weighing the totality of all relevant factors and circumstances.
new text end

Sec. 12.

new text begin [558A.12] REPORT OF OPEN-MARKET SALE.
new text end

new text begin The referee or referees shall file a report with the court containing the following
information:
new text end

new text begin (1) a description of the property to be sold to each buyer;
new text end

new text begin (2) the name of each buyer;
new text end

new text begin (3) the proposed purchase price;
new text end

new text begin (4) the terms and conditions of the proposed sale, including the terms of any owner
financing;
new text end

new text begin (5) the amounts to be paid to lienholders;
new text end

new text begin (6) a statement of contractual or other arrangements or conditions of the broker's
commission; and
new text end

new text begin (7) other material facts relevant to the sale.
new text end

Sec. 13.

new text begin [558A.13] REFEREE'S REPORT AS EVIDENCE.
new text end

new text begin The court shall accept the referee's report unless the party seeking to set aside or modify
the report can demonstrate that the report is clearly and palpably against the evidence, by
a preponderance of the evidence that clearly suggests a mistake, improper motive, bias, or
caprice in making the report.
new text end

Sec. 14.

new text begin [558A.14] SALE AUTHORIZATION.
new text end

new text begin The sale may be in a manner recommended by the referee or referees' report, if any, and
approved by the court to be commercially reasonable to bring about the highest and best
price, at the best terms. The sale and terms shall be approved by the court prior to the sale.
If the court determines that the parties will not cooperate in a sale or division of the property,
the court shall empower the referee with all authority to execute all documents to conclude
the sale or partition in kind. The court may confirm the sale after notice to all affected
parties.
new text end

Sec. 15.

new text begin [558A.15] PURCHASE BY PART OWNER.
new text end

new text begin When a party entitled to a share in the property, or an encumbrancer entitled to have a
lien paid out of the proceeds of the same, becomes a purchaser, the referee may take the
receipt for so much of the proceeds of the sale as belong to the entitled party or encumbrancer.
new text end

Sec. 16.

new text begin [558A.16] REPORT OF SALE.
new text end

new text begin The referee or referees shall report the sale to the court, describing the different parcels
sold to each purchaser, and specifying the name of the purchaser, the price paid or secured,
and the terms and conditions of the sale, which report shall be filed with the court
administrator. The court may confirm or reject the sale under section 558A.13 after notice
to all interested persons and a hearing. If rejected the court shall state its reason for rejection.
new text end

Sec. 17.

new text begin [558A.17] CONFIRMATION OF REPORT; FINAL JUDGMENT.
new text end

new text begin The court may confirm or set aside the referee or referees' report under section 558A.13,
and, if necessary, appoint a new referee or referees. Upon the report being confirmed, final
judgment shall be rendered that such partition be effectual forever, and such judgment shall
be binding:
new text end

new text begin (1) on all the parties named therein, and their legal representatives, who had at the time
any interest in the property divided, as owners in fee or as tenants for years, or as entitled
to the remainder, reversion, or inheritance thereof, after the determination of a particular
estate therein, or who by any contingency may be entitled to a beneficial interest therein,
or who have an interest in an undivided share thereof as tenants for years or for life;
new text end

new text begin (2) on all persons interested in the property who may be unknown, and to whom notice
has been given according to law; and
new text end

new text begin (3) on all persons claiming from such parties or persons, or either of them.
new text end

Sec. 18.

new text begin [558A.18] LIENS; HOW AFFECTED.
new text end

new text begin When there is a lien on an undivided interest or estate of any of the parties, if partition
in kind is made such lien is thenceforth a charge only on the share allotted to such party or
parties. The lien shall be paid from the proceeds of the sale, or as a judgment against the
party awarded the property, as the court deems fair and equitable to the parties. This provision
does not affect the priority of any lien or the lienholder's rights to enforce any lien.
new text end

Sec. 19.

new text begin [558A.19] ATTORNEY FEES AND COSTS APPORTIONED.
new text end

new text begin The attorney fees, costs, charges, and disbursements of sale or in kind partition may be
paid from the sale proceeds in the case of a sale, or against a party or parties respectively
entitled to share in the land, and in the case of an in kind partition, the amounts to be paid
by each shall be determined by the court, and specified in the final judgment. In making
the award the court may consider the actions of the parties necessitating the partition, the
conduct and cooperation of the parties to the partition and the benefits of the partition
confirmed upon the parties. The judgment may be docketed, and payment of such the
amounts may be enforced by execution against the property of the respective judgment
debtors, even if the property is a homestead, as in the case of other judgments for money.
new text end

Sec. 20.

new text begin [558A.20] COMPENSATION BECAUSE OF INEQUALITY.
new text end

new text begin When it appears that partition in kind cannot be made equal between the parties without
prejudice to the rights or interests of some, the court may adjudge compensation to be made
by one to another for equality of partition.
new text end

Sec. 21.

new text begin [558A.21] INDIVISIBLE PROPERTY MAY BE SET OFF.
new text end

new text begin When the premises consist of property which cannot be divided without damage to the
owners, or when any specified part is of greater value than either party's share and cannot
be divided without damage to the owners, the whole premises or the part so incapable of
division may be set off to any party who will accept it, that party paying to one or more of
the others such sums of money as the referee or referees' awards to make the partition just
and equal.
new text end

Sec. 22.

new text begin [558A.22] PROCEEDS; HOW APPLIED.
new text end

new text begin The proceeds of the sale of the property shall be applied under the direction of the court
as follows:
new text end

new text begin (1) to pay its just proportion of the general costs of the action;
new text end

new text begin (2) to pay the costs of the referee;
new text end

new text begin (3) to pay all legal fees and costs awarded under section 558A.19;
new text end

new text begin (4) to satisfy and cancel of record, pursuant to section 558A.18, the several liens, if any,
in their order of priority, by payment of the sums due and to become due; the amount
remaining due as proven to the court;
new text end

new text begin (5) the residue among the owners of the property sold, according to their respective
shares.
new text end

Sec. 23.

new text begin [558A.23] ORDER CONFIRMING SALE.
new text end

new text begin The order confirming the sale of the property, together with the deed executed by the
referee or referees, shall be accepted for recording and act as a valid, final, and conclusive
transfer of all interests under sections 558A.24 and 558A.27 as stated in the order. The
registrar of titles may require certification of the award and transfer by the examiner of titles
for lands registered under chapter 508 or 508A.
new text end

Sec. 24.

new text begin [558A.24] RECORD AND EFFECT OF CONVEYANCES.
new text end

new text begin The conveyances executed by the referee or referees shall be recorded and shall be
binding on all parties to the action, including all persons having liens, specific or general,
against the property, and all persons unknown, interested in the property, to whom notice
has been given by publication of the summons, and all persons claiming under them or any
of them.
new text end

Sec. 25.

new text begin [558A.25] PERSONS PROHIBITED FROM PURCHASING.
new text end

new text begin Subdivision 1. new text end

new text begin Referee may not purchase property. new text end

new text begin No referee, nor any person for
the benefit of any referee, shall be interested, directly or indirectly, in any purchase of the
premises sold.
new text end

new text begin Subd. 2. new text end

new text begin Other compensation. new text end

new text begin This provision is not intended to prevent anyone from
receiving compensation under chapter 82, and also payment for services as a referee
appointed under this chapter, if the court determines that the referee services are beyond
the usual broker services in connection with the sale of the property.
new text end

Sec. 26.

new text begin [558A.26] CLAIMS TO PROCEEDS; HOW DETERMINED.
new text end

new text begin When the proceeds of sale of any shares belonging to parties to the action who are known
are paid into court the action may be continued as between them for the determination of
their respective claims thereto. Further testimony may be taken in court or by any or all
referees, at the discretion of the court, which may, if necessary, require the parties to present
the facts in controversy by pleadings, as in an original action. The proceedings authorized
by this section shall not delay or affect any party whose rights are not involved therein. The
court may award attorney fees, costs and other expenses from the sale proceeds as provided
in section 558A.10.
new text end

Sec. 27.

new text begin [558A.27] ORDERS; INTERLOCUTORY JUDGMENTS; APPEALS.
new text end

new text begin Any party to any partition proceedings may appeal from any order or interlocutory
judgment made and entered pursuant to section 558A.08, 558A.14, 558A.16, or 558A.17,
to the court of appeals within 30 days after the making and filing of the order or interlocutory
judgment. Any appeal shall be taken as in other civil cases.
new text end

new text begin All matters determined by any order or interlocutory judgment shall be conclusive and
binding upon all parties to the proceedings and shall never be subject to review by the court
unless appealed from as provided herein.
new text end

Sec. 28.

new text begin [558A.28] PROCEEDS DUE UNKNOWN OWNER.
new text end

new text begin Proceeds of sale belonging to an unknown owner shall be paid to the court administrator
subject to further orders of the court.
new text end

Sec. 29.

new text begin [558A.29] GUARDIAN AD LITEM; WHEN APPOINTED.
new text end

new text begin Upon the petition of any party, or of any person interested in the proceeding, or on its
own initiative, the court shall appoint a disinterested person to act as guardian ad litem for
minors, and other persons under disability, and for all persons not in being who may appear
to have any interest or lien upon the land. The compensation of the guardian shall be
determined by the court and paid from the person's share of the proceeds as part of the
expenses of the proceeding.
new text end

Sec. 30. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective on August 1, 2025, and applies to all partition actions commenced
on or after August 1, 2025.
new text end

ARTICLE 3

EMINENT DOMAIN

Section 1.

Minnesota Statutes 2024, section 117.115, subdivision 2, is amended to read:

Subd. 2.

Notification.

Within ten days after the date of the filing of the report of
commissioners, the petitioner shall notify the following listed persons, by mail, of the filing
of the report of commissioners setting forth the date of filing of the report, the amount of
the award, and all the terms and conditions thereof as the same pertain to the respondent or
party listed:

(1) each respondent listed in the petition as having an interest in any parcel described
in the report;

(2) each other party to the proceeding whose appearance has been noted by the court in
its order approving the petition under section 117.075 new text begin as having an interest in any parcel
described in the report new text end ; and

(3) each deleted text begin respondent's deleted text end attorney new text begin appearing on behalf of each respondent or other party
having an interest in any parcel described in the report new text end .

Such notification shall be addressed to the last known post office address of each person
notified. Notice of the filing of the report need not be given to parties initially served by
publication under section 117.055. The petitioner shall file with the court administrator an
affidavit of mailing of the notice, setting forth the names and addresses of all the persons
so notified.

Sec. 2.

Minnesota Statutes 2024, section 117.145, is amended to read:

117.145 APPEAL: DEADLINE, NOTICE, SERVICE, CONTENTS; BY OTHER
PARTIES.

At any time within 40 days from the date that the report has been filed, any party to the
proceedings may appeal to the district court from any award of damages embraced in the
report, or from any omission to award damages, by: (1) filing with the court administrator
a notice of such appeal, and (2) serving by mail new text begin or E-Service new text end a copy of such notice on all
deleted text begin respondents deleted text end deleted text begin and all other parties to the proceedings deleted text end deleted text begin having an interest in deleted text end deleted text begin any deleted text end deleted text begin parcel deleted text end deleted text begin described
in the appeal deleted text end new text begin persons new text end who are shown in the petitioner's affidavit of mailing, required by
section 117.115, subdivision 2, as having been mailed a notice of the report of the
commissioners new text begin , and on the petitioner new text end .

If any notice of appeal is filed, any other party may appeal within 50 days from the date
that the report was filed by: (1) filing with the court administrator a notice of the appeal;
and (2) serving the notice of appeal by mail new text begin or E-Service new text end , as provided in this section. Service
by mail is deemed effective upon deposit of the notice in the United States mail, by first
class mail, with postage prepaid, and addressed to each person served at the address shown
in the petitioner's affidavit of mailing required by section 117.115, subdivision 2 new text begin , or their
last known address new text end . Proof of service by mail of a notice of appeal shall be filed with the
court administrator promptly following the mailing of any notice of appeal. The notice of
appeal shall specify the particular award or failure to award appealed from, the nature and
amount of the claim, the land to which it relates, and grounds of the appeal, and if applicable,
the notice required in section 117.086.

ARTICLE 4

TRANSFER ON DEATH DEEDS

Section 1.

Laws 2024, chapter 91, section 3, is amended to read:

Sec. 3. EFFECTIVE DATE.

new text begin Section 1, except subdivision 2, is effective the day following final enactment and applies
to transfer on death deeds that become effective on or after that date. new text end Sections 1 new text begin , subdivision
2, new text end and 2 new text begin , new text end are effective on the day following final enactment and apply to insurance policies
issued or renewed in Minnesota on or after August 1 of the year of final enactment. Sections
1 new text begin , subdivision 2, new text end and 2 new text begin , new text end do not apply to insurance policies issued or renewed prior to August
1 of the year of final enactment or to transfer on death deeds recorded prior to that date
unless the grantor owner provides the notice specified by section 2, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 27, 2024.
new text end