HF 1098

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to real property; requiring recordation of 
  1.3             contracts for deed and assignments; amending Minnesota 
  1.4             Statutes 1994, section 507.235, subdivisions 1 and 2. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 507.235, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [FILING REQUIRED.] All contracts for deed 
  1.9   executed on or after January 1, 1984, shall be recorded by 
  1.10  the vendee vendor within four three months in the office of the 
  1.11  county recorder or registrar of titles in the county in which 
  1.12  the land is located.  Any other person may record the contract.  
  1.13  This filing period may be extended if failure to pay the 
  1.14  property tax due in the current year on a parcel as required in 
  1.15  section 272.121 has prevented filing and recording of the 
  1.16  contract.  In the case of a parcel that was divided and 
  1.17  classified under section 273.13 as class 1a or 1b, the period 
  1.18  may be extended to October 31 of the year in which the sale 
  1.19  occurred, and in the case of a parcel that was divided and 
  1.20  classified under section 273.13 as class 2a, the period may be 
  1.21  extended to November 30 of the year in which the sale occurred. 
  1.22     A person receiving an assignment of a vendee's interest in 
  1.23  a contract for deed that is transferred on or after January 1, 
  1.24  1989, shall record the assignment within four three months of 
  1.25  the date of transfer in the office of the county recorder or 
  2.1   registrar of titles in the county in which the land is located.  
  2.2   For the purpose of this section, "assignment" means an 
  2.3   assignment or other transfer of all or part of a vendee's 
  2.4   interest in a contract for deed.  Any other person may record an 
  2.5   assignment.  
  2.6      Sec. 2.  Minnesota Statutes 1994, section 507.235, 
  2.7   subdivision 2, is amended to read: 
  2.8      Subd. 2.  [PENALTY FOR FAILURE TO FILE.] (a) A vendee 
  2.9   vendor who fails to record a contract for deed, as required by 
  2.10  subdivision 1, is subject to a civil penalty, payable under 
  2.11  subdivision 5, equal to two percent of the principal amount of 
  2.12  the contract debt.  Payments of the penalty shall be deposited 
  2.13  in the general fund of the county.  The penalty may be enforced 
  2.14  as a lien against the vendee's interest in the property. 
  2.15     (b) A person receiving an assignment of a vendee's interest 
  2.16  in a contract for deed who fails to record the assignment as 
  2.17  required by subdivision 1 is subject to a civil penalty, payable 
  2.18  under subdivision 5, equal to two percent of the original 
  2.19  principal amount of the contract debt.  Payments of the penalty 
  2.20  must be deposited in the general fund of the county.  The 
  2.21  penalty may be enforced as a lien against the vendee's interest 
  2.22  in the property.