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SF 2393

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to real property; providing for certain 
  1.3             purchase money mortgages; amending Minnesota Statutes 
  1.4             2002, sections 507.02; 507.03. 
  1.6      Section 1.  Minnesota Statutes 2002, section 507.02, is 
  1.7   amended to read: 
  1.9      If the owner is married, no conveyance of the homestead, 
  1.10  except a mortgage for purchase money unpaid thereon under 
  1.11  section 507.03, a conveyance between spouses pursuant to section 
  1.12  500.19, subdivision 4, or a severance of a joint tenancy 
  1.13  pursuant to section 500.19, subdivision 5, shall be valid 
  1.14  without the signatures of both spouses.  A spouse's signature 
  1.15  may be made by the spouse's duly appointed attorney-in-fact. 
  1.16     A husband and wife, by their joint deed, may convey the 
  1.17  real estate of either.  A spouse, by separate deed, may convey 
  1.18  any real estate owned by that spouse, except the homestead, 
  1.19  subject to the rights of the other spouse therein; and either 
  1.20  spouse may, by separate conveyance, relinquish all rights in the 
  1.21  real estate so conveyed by the other spouse.  Subject to the 
  1.22  foregoing provisions, either spouse may separately appoint an 
  1.23  attorney-in-fact to sell or convey any real estate owned by that 
  1.24  spouse, or join in any conveyance made by or for the other 
  1.25  spouse.  Use of a power of attorney is subject to section 
  2.1   518.58, subdivision 1a.  A minor spouse has legal capacity to 
  2.2   join in a conveyance of real estate owned by the other spouse, 
  2.3   so long as the minor spouse is not incapacitated because of some 
  2.4   reason other than that spouse's minor age. 
  2.5      Sec. 2.  Minnesota Statutes 2002, section 507.03, is 
  2.6   amended to read: 
  2.8      When a married individual purchases real property during 
  2.9   marriage and mortgages the real property to secure the payment 
  2.10  of the purchase price or any portion of it, the other spouse 
  2.11  shall not be entitled to any inchoate, contingent, or marital 
  2.12  property right or interest in the real property as against the 
  2.13  mortgagee or those claiming under the mortgagee even though the 
  2.14  other spouse did not join in the mortgage.  A statement in the 
  2.15  mortgage to the effect that the mortgage is a purchase money 
  2.16  mortgage constitutes prima facie evidence of that fact. 
  2.17     If any portion of the money secured by the mortgage is used 
  2.18  for the payment of the purchase price of the real property or 
  2.19  any portion of it, the entire mortgage debt shall be deemed 
  2.20  purchase money within the meaning of this section, except that 
  2.21  any money used to pay off the balance owing under a contract for 
  2.22  deed under which the purchaser has the right to possession of 
  2.23  the property shall not be deemed purchase money under this 
  2.24  section. 
  2.25     This section applies to every purchase-money mortgage 
  2.26  regardless of when it was granted or created, except that this 
  2.27  section does not affect an action or proceeding involving the 
  2.28  validity or enforceability of a purchase money mortgage if: 
  2.29     (1) the action or proceeding is pending as of February 1, 
  2.30  2004, or is commenced before February 1, 2005; and 
  2.31     (2) a notice of the pendency of the action or proceeding is 
  2.32  recorded or filed before February 1, 2005, in the office of the 
  2.33  county recorder of registrar of titles of the county to which 
  2.34  the property affected by the action or proceeding is located.