SF 137

1st Unofficial Engrossment - 87th Legislature (2011 - 2012) Posted on 05/06/2011 12:04pm

1.1A bill for an act

1.2relating to real property; clarifying deeds to correct title and certain
1.3acknowledgments; providing for cancellation of residential purchase agreements;
1.4clarifying redemption period for foreclosure of certain mortgages; clarifying an
1.5effective date for certain child support judgments;amending Minnesota Statutes
1.62010, sections 272.15; 358.50; 559.217, subdivisions 3, 4, 8; 580.23, subdivision
1.72; Laws 2010, chapter 238, section 7, as amended.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9    Section 1. Minnesota Statutes 2010, section 272.15, is amended to read:
1.10272.15 DEED TO CORRECT TITLE.
1.11When a deed purporting to convey or quitclaim any parcel of land, the record title
1.12to which appears to be in two or more persons, be a corrective deed is presented to the
1.13county attorney, accompanied by an abstract of title to such the land described in the deed,
1.14or other evidence deemed satisfactory by the county attorney, the attorney shall examine
1.15such deed and, abstract, or other evidence presented, upon tender of a fee of $5 therefor.
1.16On finding that such deed is given for the purpose of correcting a defect in the title, or on
1.17account of a technical error in a prior conveyance, the attorney shall so certify upon the
1.18deed; and thereupon the county recorder shall record it, if otherwise entitled to record,
1.19notwithstanding that there are unpaid taxes or assessments upon such land.

1.20    Sec. 2. Minnesota Statutes 2010, section 358.50, is amended to read:
1.21358.50 EFFECT OF ACKNOWLEDGMENT.
1.22    An acknowledgment made in a representative capacity for and on behalf of a
1.23corporation, partnership, limited liability company, trust, or other entity as defined in
1.24section 358.41, clause (4), and certified substantially in the form prescribed in this chapter
2.1is prima facie evidence that the instrument or electronic record was executed and delivered
2.2with proper authority and as the act of the person or entity represented and identified in the
2.3instrument or electronic record.

2.4    Sec. 3. Minnesota Statutes 2010, section 559.217, subdivision 3, is amended to read:
2.5    Subd. 3. Cancellation with right to cure. (a) If a default occurs or an unfulfilled
2.6condition exists after the date specified for fulfillment in the terms of a purchase agreement
2.7for the conveyance of residential real property, which does not by its terms cancel the
2.8purchase agreement, the purchaser or the seller may initiate a cancellation by serving
2.9upon the other party to the purchase agreement and any third party that is holding earnest
2.10money under the purchase agreement a notice:
2.11(1) specifying the residential real property that is the subject of the purchase
2.12agreement, including the legal description;
2.13(2) specifying the purchase agreement by date and names of parties, and the
2.14unfulfilled condition or default; and
2.15(3) stating that the purchase agreement will be canceled 15 days after service of the
2.16notice upon the other party to the purchase agreement unless prior to the cancellation date
2.17the party upon whom the notice is served complies with the conditions in default and
2.18completes the unfulfilled conditions, including, if applicable, completion of the purchase
2.19or sale of the residential real property according to the terms of the purchase agreement.
2.20(b) The notice to initiate a cancellation under this subdivision must be served in the
2.21manner provided in section 559.21, subdivision 4, paragraphs (a) and (b). The notice
2.22required by this subdivision must be given notwithstanding any provisions in the purchase
2.23agreement to the contrary.
2.24(c) The purchase agreement is canceled unless, within 15 days after the service of
2.25the notice upon the other party to the purchase agreement, the party upon whom the notice
2.26was served fully complies with the conditions in default and completes the unfulfilled
2.27conditions or secures from a court an order suspending the cancellation.

2.28    Sec. 4. Minnesota Statutes 2010, section 559.217, subdivision 4, is amended to read:
2.29    Subd. 4. Declaratory cancellation. (a) If an unfulfilled condition exists after the
2.30date specified for fulfillment in the terms of a purchase agreement for the conveyance
2.31of residential real property, which by the terms of the purchase agreement cancels the
2.32purchase agreement, either the purchaser or the seller may confirm the cancellation by
2.33serving upon the other party to the purchase agreement and any third party that is holding
2.34earnest money under the purchase agreement a notice:
3.1(1) specifying the residential real property that is the subject of the purchase
3.2agreement, including the legal description;
3.3(2) specifying the purchase agreement by date and names of parties, and the
3.4unfulfilled condition; and
3.5(3) stating that the purchase agreement has been canceled.
3.6(b) The notice to initiate a cancellation under this subdivision must be served in the
3.7manner provided in section 559.21, subdivision 4, paragraphs (a) and (b). The notice
3.8required by this subdivision may be given notwithstanding any provisions in the purchase
3.9agreement to the contrary.
3.10(c) The cancellation of the purchase agreement is complete, unless, within 15
3.11days after the service of the notice upon the other party to the purchase agreement, the
3.12party upon whom the notice was served secures from a court an order suspending the
3.13cancellation.

3.14    Sec. 5. Minnesota Statutes 2010, section 559.217, subdivision 8, is amended to read:
3.15    Subd. 8. Attorney as agent for service. Any attorney authorized to serve the
3.16notice of cancellation by a party initiating a cancellation under this section is designated
3.17as the attorney who may receive service as agent for the party initiating the cancellation
3.18of all summons, complaints, orders, and motions made in connection with an action by
3.19the party upon whom the notice is served to restrain the cancellation, and any responsive
3.20notice of cancellation as described in subdivision 2. Service in the action and service of a
3.21responsive notice of cancellation may be made upon the party initiating the cancellation
3.22by personal service or by mailing a copy of the process or notice to such party or to such
3.23party's attorney, by first class mail, postage prepaid, to the address stated in the notice.
3.24Service upon a party by first class mail shall be effective upon delivery to the address
3.25stated in the notice.

3.26    Sec. 6. Minnesota Statutes 2010, section 580.23, subdivision 2, is amended to read:
3.27    Subd. 2. 12-month redemption period. Notwithstanding the provisions of
3.28subdivision 1 hereof, when lands have been sold in conformity with the preceding sections
3.29of this chapter, the mortgagor, the mortgagor's personal representatives or assigns, within
3.3012 months after such sale, may redeem such lands in accordance with the provisions
3.31of payment of subdivision 1 thereof, if:
3.32(1) the mortgage was executed prior to July 1, 1967;
3.33(2) the amount claimed to be due and owing as of the date of the notice of foreclosure
3.34sale is less than 66-2/3 percent of the original principal amount secured by the mortgage;
4.1(3) the mortgage was executed prior to July 1, 1987, and the mortgaged premises, as
4.2of the date of the execution of the mortgage, exceeded ten acres in size;
4.3(4) the mortgage was executed prior to August 1, 1994, and the mortgaged premises,
4.4as of the date of the execution of the mortgage, exceeded ten acres but did not exceed 40
4.5acres in size and was in agricultural use as defined in section 40A.02, subdivision 3;
4.6(5) the mortgaged premises, as of the date of the execution of the mortgage,
4.7exceeded 40 acres in size; or
4.8(6) the mortgage was executed on or after August 1, 1994, and the mortgaged
4.9premises, as of the date of the execution of the mortgage, exceeded ten acres but did
4.10not exceed 40 acres in size and was in agricultural use. For purposes of this clause, "in
4.11agricultural use" means that at least a portion of the mortgaged premises was classified
4.12for ad valorem tax purposes as:
4.13(i) class 2a agricultural homestead property under section 273.13, subdivision 23;
4.14(ii) class 2b rural or agricultural nonhomestead property under section 273.13,
4.15subdivision 23 ;
4.16(iii) class 1b agricultural homestead property under section 273.13, subdivision
4.1722 ; or
4.18(iv) exempt wetlands under section 272.02, subdivision 11.; or
4.19(7) the mortgage qualifies as a reverse mortgage as defined in section 47.58.

4.20    Sec. 7. Laws 2010, chapter 238, section 7, as amended by Laws 2010, chapter 371,
4.21section 5, is amended to read:
4.22    Sec. 7. EFFECTIVE DATE; APPLICATION.
4.23Sections 2 and 3 are effective January 1, 2011. Sections 4 to 6 are effective July
4.241, 2011 January 1, 2013, and apply retroactively to child support judgments, including
4.25judgments by operation of law, that have not expired before July 1, 2011 January 1, 2013.
4.26EFFECTIVE DATE.This section is effective the day following final enactment.

4.27    Sec. 8. EFFECTIVE DATE.
4.28(a) Sections 3 to 5 are effective August 1, 2011, and apply to any Notice of
4.29Cancellation of Purchase Agreement or Responsive Notice of Cancellation of Purchase
4.30Agreement served on or after that date.
4.31(b) Section 6 is effective the day following final enactment and applies to
4.32foreclosures of reverse mortgages in which the notice of foreclosure was published on or
4.33after the effective date.