HF 51

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/23/2019 10:10am

A bill for an act
relating to real property; providing a statutory form for making declarations about
certain restrictive covenants that are prohibited under state and federal law;
amending Minnesota Statutes 2018, section 507.18, subdivisions 1, 2, 3, by adding
subdivisions.

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

Section 1.

Minnesota Statutes 2018, section 507.18, subdivision 1, is amended to read:

Subdivision 1.

Religious faith, creed, new text begin national origin, new text end race, color.

No written instrument
hereafter made, relating to or affecting real estate, shall contain any provision against
conveying, mortgaging, encumbering, or leasing any real estate to any person of a specified
religious faith, creed, new text begin national origin, new text end race new text begin , new text end or color, nor shall any such written instrument
contain any provision of any kind or character discriminating against any class of persons
because of their religious faith, creed, new text begin national origin, new text end race new text begin , new text end or color. In every such provision
any form of expression or description which is commonly understood as designating or
describing a religious faith, creed, new text begin national origin, new text end race new text begin , new text end or color shall have the same effect
as if its ordinary name were used therein.

Sec. 2.

Minnesota Statutes 2018, section 507.18, subdivision 2, is amended to read:

Subd. 2.

Restriction only is void.

Every provision referred to in subdivision 1 shall be
void, new text begin regardless of the year the written instrument was executed, new text end but the instrument shall
have full force in all other respects and shall be construed as if no such provision were
contained therein.

Sec. 3.

Minnesota Statutes 2018, section 507.18, subdivision 3, is amended to read:

Subd. 3.

Words constructively defined.

As used in this section the phrase "written
instruments relating to or affecting real estate," embraces every writing relating to or affecting
any right, title, or interest in real estate, and includes, among other things, plats and wills;
and the word "provision" embraces all clauses, stipulations, restrictions, covenants, and
conditions of the kind or character referred to in subdivision 1. new text begin As used in this section, the
term "protected class" means any class of persons identified by their race, color, creed,
national origin, or religious beliefs.
new text end

Sec. 4.

Minnesota Statutes 2018, section 507.18, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Discharge of restrictive covenants related to protected classes. new text end

new text begin The owner
of any interest in real property may record the statutory form provided in subdivision 6 in
the office of the county recorder of any county where the real property is located to discharge
and release a restrictive covenant related to a protected class permanently from the title.
This subdivision does not apply to real property registered under chapters 508 and 508A.
The discharge of the restrictive covenant is valid and enforceable under the law of Minnesota
when the statutory form provided in subdivision 6 is properly recorded, but the instrument
containing such restrictive covenants shall have full force in all other respects and shall be
construed as if no such restrictive covenant were contained therein. A restrictive covenant
affecting a protected class is void regardless of whether a statutory form as provided for in
this section has been recorded in the office of the county recorder in the county where the
real property affected by the restrictive covenant is located.
new text end

Sec. 5.

Minnesota Statutes 2018, section 507.18, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Filing; recording. new text end

new text begin (a) The county recorder must accept the statutory form
provided in this subdivision for recording when the form:
new text end

new text begin (1) has been executed before a notary;
new text end

new text begin (2) contains the legal description of the real property affected by the restrictive covenant
related to a protected class;
new text end

new text begin (3) contains the date of recording of the instrument containing the restrictive covenant,
and the volume and page number or document number of the instrument; and
new text end

new text begin (4) complies with all other recording requirements, and applicable recording fees have
been paid.
new text end

new text begin (b) The commissioner of commerce must provide electronic copies of the statutory form
in this subdivision to the public free of cost.
new text end

new text begin (c) The recording of this form does not alter or affect the duration or expiration of
covenants, conditions, or restrictions under section 500.20 and may not be used to extend
the effect of a covenant, condition, or restriction.
new text end

new text begin (d) The statutory form that follows may be used to discharge restrictive covenants on
property that limit the ownership, occupancy, use, or financing based on protected class:
new text end

new text begin DISCHARGE OF RESTRICTIVE COVENANT AFFECTING PROTECTED CLASSES
new text end

new text begin Pursuant to Minnesota Statutes, section 507.18, any restrictive covenant affecting a
protected class, including covenants which were placed on the real property with the intent
of restricting the use, occupancy, ownership, or financing because of a person's race, color,
creed, national origin, or religious beliefs, is discharged and released from the land described
herein.
new text end

new text begin State of Minnesota, County of ....................
new text end

new text begin I/we, .............................................................................................., having an ownership
or other interest in all or part of the real property described herein, solemnly swear that the
contents of this form are true to the best of my/our knowledge, except as to those matters
stated on information and belief, and that as to those matters I/we believe them to be true.
new text end

new text begin Name and Address of Owner(s) .............................................................................................
new text end

new text begin The real property owned by owner(s) is located in ................................. County,
Minnesota, and is legally described as follows:
new text end

new text begin OWNER(s), ...................................................................................., swears and affirms
that Owner(s) is/are 18 years of age or older and is/are not under any legal incapacity and
that the information provided in this form is true and correct based on the information
available and based on reasonable information and belief:
new text end

new text begin (1) a restrictive covenant which had the intent to restrict the use, occupancy, ownership,
or financing of this property based on a protected class, including race, color, creed, national
origin, or religion, existed at one time related to the property described in this form;
new text end

new text begin (2) the restrictive covenant is contained in an instrument dated ........................., and
recorded as Document Number ....................... (or in Book ............... of .............., Page........)
in the Office of the County Recorder of .................., Minnesota;
new text end

new text begin (3) restrictive covenants relating to or affecting protected classes are unenforceable and
void pursuant to Minnesota Statutes, sections 507.18 and 363A.09, the United States
Constitution, and the Minnesota Constitution;
new text end

new text begin (4) Minnesota Statutes, section 507.18, provides for the discharge of a restrictive covenant
of the nature described herein through the use of this statutory form to permanently discharge
such covenants from the land described herein and release the current and future landowner(s)
from any such restrictive covenant related to or affecting protected classes;
new text end

new text begin (5) the instrument containing such restrictive covenants shall have full force in all other
respects and shall be construed as if no such restrictive covenant was contained therein; and
new text end

new text begin (6) the filing of this form does not alter or change the duration or expiration of covenants,
conditions, or restrictions under Minnesota Statutes, section 500.20.
new text end

new text begin The affiant(s) know(s) the matters herein stated are true and make(s) this affidavit for
the purpose of documenting the discharge of the illegal and unenforceable restrictive
covenants affecting protected classes.
new text end

	new text begin . new text end
	new text begin Affiant (Owner(s) Signature) new text end
new text begin Signed and sworn before me on ........................ (Date), by new text end
new text begin . (Affiant/Owner) new text end
	new text begin . new text end
	new text begin Signature of Notary new text end
new text begin Stamp new text end
new text begin My commission expires . new text end