HF 2705

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/09/2012 02:58pm

A bill for an act
relating to commerce; regulating closing agents; exempting a licensed attorney
and a direct employee of a licensed attorney from the licensing requirements for
closing agents; amending Minnesota Statutes 2010, section 82.641, subdivision
6; Minnesota Statutes 2011 Supplement, section 82.641, subdivision 1.

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

Section 1.

Minnesota Statutes 2011 Supplement, section 82.641, subdivision 1, is
amended to read:

Subdivision 1.

License required.

new text begin Except as otherwise provided in subdivision
6, new text end a person shall not act as a real estate closing agent unless licensed as provided in
this section. The commissioner shall issue a license as a closing agent to a person who
qualifies for the license under the terms of this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 82.641, subdivision 6, is amended to read:

Subd. 6.

Exemption.

The following persons, when acting as closing agents,
are exempt from the requirements of new text begin this section and new text end sections 82.75 and 82.81 unless
otherwise required in this chapter:

(1) a direct employee of a title insurance company authorized to do business in this
state, or a direct employee of a title company, or a person who has an agency agreement
with a title insurance company or a title company in which the agent agrees to perform
closing services on the title insurance company's or title company's behalf and the title
insurance company or title company assumes responsibility for the actions of the agent as
if the agent were a direct employee of the title insurance company or title company;

(2) a licensed attorney or a direct employee of a licensed attorney;

(3) a licensed real estate broker or salesperson;

(4) a direct employee of a licensed real estate broker if the broker maintains all funds
received in connection with the closing services in the broker's trust account;

(5) a bank, trust company, savings association, credit union, industrial loan and thrift
company, regulated lender under chapter 56, public utility, or land mortgage or farm loan
association organized under the laws of this state or the United States, when engaged in
the transaction of businesses within the scope of its corporate powers as provided by law;

(6) a title insurance company authorized to do business in this state; and

(7) a title company that has a contractual agency relationship with a title insurance
company authorized to do business in this state, where the title insurance company
assumes responsibility for the actions of the title company and its employees or agents as
if they were employees or agents of the title insurance company.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end