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HF 1443

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/05/2011 02:03pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to real property; landlord and tenant; clarifying application of foreclosure
provisions for residential tenants; amending Minnesota Statutes 2010, section
504B.285, subdivision 1a.

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

Section 1.

Minnesota Statutes 2010, section 504B.285, subdivision 1a, is amended to
read:


Subd. 1a.

Grounds when the person holding over is a tenant in a foreclosednew text begin
residential
new text end property.

(a) For any eviction action commenced on or before December 31,
2012,new text begin with respect to residential real property or a dwellingnew text end where the person holding
thenew text begin residentialnew text end real propertynew text begin or dwellingnew text end after the expiration of the time for redemption on
foreclosure of a mortgage was a tenant during the redemption period under a lease of any
duration, and the lease began after the date the mortgage was executed, but prior to the
expiration of the time for redemption, the immediate successor in interest must provide
at least 90 days' written notice to vacate, given no sooner than the date of the expiration
of the time for redemption, and effective no sooner than 90 days after the date of the
expiration of the time for redemption, provided that the tenant pays the rent and abides
by all terms of the lease.

(b) For any eviction action commenced on or before December 31, 2012,new text begin with
respect to residential real property or a dwelling
new text end where the term of a bona fide lease
extends more than 90 days beyond the date of the expiration of the time for redemption,
the immediate successor in interest must allow the tenant to occupy the premises until
the end of the remaining term of the lease, and provide at least 90 days' written notice to
vacate, effective no sooner than the date the lease expires, provided that the tenant pays the
rent and abides by all terms of the lease, except if the immediate successor in interest or an
immediate subsequent bona fide purchaser will occupy the unit as the primary residence,
the immediate successor in interest must provide at least 90 days' written notice to vacate,
given no sooner than the date of the expiration of the time for redemption, effective no
sooner than 90 days after the date of the expiration of the time for redemption, provided
that the tenant pays the rent and abides by all terms of the lease.

For purposes of this section, a "bona fide lease" means:

(1) the mortgagor or the child, spouse, or parent of the mortgagor is not the tenant;

(2) the lease or tenancy was the result of an arm's-length transaction; and

(3) the lease or tenancy requires the receipt of rent that is not substantially less than
fair market rent for the property or the unit's rent is reduced or subsidized by a federal,
state, or local subsidy.

(c) For any eviction action commenced on or before December 31, 2012, deleted text beginin the case
of
deleted text endnew text begin with respect to residential real property or a dwelling involvingnew text end a tenancy subject
to section 8 of the United States Housing Act of 1937, as amended, where the term of
the lease extends more than 90 days beyond the date of the expiration of the time for
redemption, the immediate successor in interest must allow the tenant to occupy the
premises until the end of the remaining term of the lease and provide at least 90 days'
written notice to vacate, effective no sooner than the date the lease expires, provided that
the tenant pays the rent and abides by all terms of the lease, except if the immediate
successor in interest will occupy the unit as the primary residence, the immediate
successor in interest must provide at least 90 days' written notice to vacate, given no
sooner than the date of the expiration of the time for redemption, effective no sooner than
90 days after the date of the expiration of the time for redemption, provided that the tenant
pays the rent and abides by all terms of the lease.