as introduced - 93rd Legislature (2023 - 2024) Posted on 03/06/2024 04:21pm
A bill for an act
relating to real property; modifying requirements for contract for deeds between
investor sellers and purchasers of residential real property; modifying recording
provisions; requiring disclosures; providing a right to cancel; authorizing civil
remedies; amending Minnesota Statutes 2022, sections 272.12; 507.235,
subdivisions 1a, 5; 513.73, subdivision 3; 559.21, subdivisions 2a, 4, by adding
subdivisions; 559.211, subdivision 1; 559.213; proposing coding for new law as
Minnesota Statutes, chapter 559A; repealing Minnesota Statutes 2022, sections
559.201; 559.202.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 272.12, is amended to read:
When:
(a) a deed or other instrument conveying land,
(b) a plat of any townsite or addition thereto,
(c) a survey required pursuant to section 508.47,
(d) a condominium plat subject to chapter 515 or 515A or a declaration that contains
such a plat, or
(e) a common interest community plat subject to chapter 515B or a declaration that
contains such a plat,
is presented to the county auditor for transfer, the auditor shall ascertain from the records
if there be taxes delinquent upon the land described therein, or if it has been sold for taxes.
An assignment of a sheriff's or referee's certificate of sale, when the certificate of sale
describes real estate, and certificates of redemption from mortgage or lien foreclosure sales,
when the certificate of redemption encompasses real estate and is issued to a junior creditor,
are considered instruments conveying land for the purposes of this section and section
272.121. If there are taxes delinquent, the auditor shall certify to the same; and upon payment
of such taxes, or in case no taxes are delinquent, shall transfer the land upon the books of
the auditor's office, and note upon the instrument, over official signature, the words, "no
delinquent taxes and transfer entered," or, if the land described has been sold or assigned
to an actual purchaser for taxes, the words "paid by sale of land described within;" and,
unless such statement is made upon such instrument, the county recorder or the registrar of
titles shall refuse to receive or record the same; provided, that sheriff's or referees' certificates
of sale on execution or foreclosure of a lien or mortgage, certificates of redemption from
mortgage or lien foreclosure sales issued to the redeeming mortgagor or lienee, new text begin documents
evidencing the termination of a contract for deed as described in section 559.213, new text end deeds of
distribution made by a personal representative in probate proceedings, transfer on death
deeds under section 507.071, decrees and judgments, receivers receipts, patents, and copies
of town or statutory city plats, in case the original plat filed in the office of the county
recorder has been lost or destroyed, and the instruments releasing, removing and discharging
reversionary and forfeiture provisions affecting title to land and instruments releasing,
removing or discharging easement rights in land or building or other restrictions, may be
recorded without such certificate; and, provided that instruments conveying land and, as
appurtenant thereto an easement over adjacent tract or tracts of land, may be recorded
without such certificate as to the land covered by such easement; and provided further, that
any instrument granting an easement made in favor of any public utility or pipe line for
conveying gas, liquids or solids in suspension, in the nature of a right-of-way over, along,
across or under a tract of land may be recorded without such certificate as to the land covered
by such easement. Documents governing homeowners associations of condominiums,
townhouses, common interest ownership communities, and other planned unit developments
may be recorded without the auditor's certificate to the extent provided in section
515B.1-116(e).
A deed of distribution made by a personal representative in a probate proceeding, a
decree, or a judgment that conveys land shall be presented to the county auditor, who shall
transfer the land upon the books of the auditor's office and note upon the instrument, over
official signature, the words, "transfer entered", and the instrument may then be recorded.
A decree or judgment that affects title to land but does not convey land may be recorded
without presentation to the auditor.
A violation of this section by the county recorder or the registrar of titles shall be a gross
misdemeanor, and, in addition to the punishment therefor, the recorder or registrar shall be
liable to the grantee of any instrument so recorded for the amount of any damages sustained.
When, as a condition to permitting the recording of deed or other instrument affecting
the title to real estate previously forfeited to the state under the provisions of sections 281.16
to 281.25, county officials, after such real estate has been purchased or repurchased, have
required the payment of taxes erroneously assumed to have accrued against such real estate
after forfeiture and before the date of purchase or repurchase, the sum required to be so paid
shall be refunded to the persons entitled thereto out of moneys in the funds in which the
sum so paid was placed. Delinquent taxes are those taxes deemed delinquent under section
279.02.
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 507.235, subdivision 1a, is amended to read:
(a) A vendor entering into a contract for deed
involving residential real property must, contemporaneously with the execution of the
contract for deeddeleted text begin :
deleted text end
deleted text begin (1)deleted text end deliver to the vendee a copy of the contract for deed containing original signatures
in recordable formdeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(2)
deleted text end
new text begin
(b) Within four months of the execution of the contract for deed, the vendor must:
new text end
new text begin (1)new text end paydeleted text begin , or reimburse the vendee for payment of,deleted text end any delinquent taxes necessary for
recordation of the contract for deeddeleted text begin , unless the contract for deed provides for the vendee to
pay the delinquent taxesdeleted text end new text begin ; and
new text end
new text begin (2) record the contract for deed in the office of the county recorder or registrar of titles
in the county in which the land is locatednew text end .
new text begin
(c) The following statement included in a contract for deed for other than residential
real property shall constitute prima facie evidence that this subdivision does not apply: "The
property is not residential real property."
new text end
new text begin
(d) If the contract for deed is not in recordable form, the vendor must make a good faith
effort to correct the defects that rendered the contract unrecordable. A good faith effort
includes but is not limited to determining the reason or reasons why the contract was not
in recordable form, and revising and, if necessary, having all parties re-execute, the contract
to render it in recordable form. The vendee must, in good faith, cooperate with the vendor
to the extent that cooperation is necessary to correct the defects.
new text end
deleted text begin (b)deleted text end new text begin (e)new text end For purposes of this subdivision:
(1) "contract for deed" means an executory contract for the conveyance of residential
real property under which the seller provides financing for the purchase of the residential
real property and under which the purchaser does or has a right to go into possession.
Contract for deed does not include:
(i) a purchase agreement;
(ii) an earnest money contract;
(iii) an exercised option or a lease, including a lease with an option to purchase; or
(iv) a mortgage, as defined in section 287.01; and
(2) "residential real property" means real property deleted text begin occupied, or intended to be occupied,
by one to four families, if the purchaser intends to occupy the real propertydeleted text end new text begin consisting of
one to four family dwelling units, one of which is intended to be occupied as the principal
place of residence by:
new text end
new text begin
(i) the purchaser;
new text end
new text begin
(ii) if the purchaser is an entity, the natural person who is the majority or controlling
owner of the entity; or
new text end
new text begin (iii) if the purchaser is a trust, the settlor of the trustnew text end .
Residential real property does not include property subject to a family farm security loan
or a transaction subject to sections 583.20 to 583.32.
new text begin
(f) The performance of the obligations by the vendor required under this subdivision
satisfies any of the obligations of the original vendee, as required under subdivision 1.
new text end
new text begin
(g) The requirements of this subdivision may not be waived or altered by any provision
in a contract for deed. A provision in a contract for deed to the contrary is void and
unenforceable.
new text end
new text begin
This section is effective August 1, 2024, and applies to all contracts
for deed executed by all parties on or after that date.
new text end
Minnesota Statutes 2022, section 507.235, subdivision 5, is amended to read:
(a) A city in which the land is located or, if the land is not
located within a city, the county in which the land is located, may enforce the provisions
of this section. The city or county may bring an action to compel the recording of a contract
for deed or any assignments of a contract for deed, an action to impose the civil penalty, or
an action to compel disclosure of information.
(b) Prior to bringing an action under this subdivision to compel recording or to impose
the penalty, deleted text begin or an action under subdivision 4,deleted text end the city or county must provide written notice
to the person, subject to subdivision 1, of the person's duty to record the contract for deed
or the assignment. If the person so notified fails to record the contract for deed or assignment
documents within 14 days of receipt of the notice, an action may be brought.
(c) It is an affirmative defense in an enforcement action under this section that the contract
for deed or assignment document is not recordable, or that section 272.121 prohibits the
recording of the contract for deed or assignment, and that the defendant has provided to the
city or county attorney true and correct copies of the documents within 14 days after receipt
of the notice.
(d) In an action brought under this subdivision, the city or county attorney may recover
costs and disbursements, including reasonable attorney fees.
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 513.73, subdivision 3, is amended to read:
"Private transfer fee" means a fee or charge required by
a private transfer fee obligation and payable upon the transfer of an interest in real property,
or payable for the right to make or accept the transfer, regardless of whether the fee or
charge is a fixed amount or is determined as a percentage of the value of the property, the
purchase price, or other consideration given for the transfer. The following are not private
transfer fees for purposes of this section:
(1) consideration payable by the grantee to the grantor for the interest in real property
being transferred, including any subsequent additional consideration for the property payable
by the grantee based upon any subsequent appreciation, development, or sale of the property,
provided that the additional consideration is payable on a onetime basis only, and the
obligation to make the payment does not bind successors in title to the property. For the
purposes of this clause, an interest in real property may include a separate mineral estate
and its appurtenant surface access rights;
(2) commission payable to a licensed real estate broker for the transfer of real property
pursuant to an agreement between the broker and the grantor or the grantee, including any
subsequent additional commission for that transfer payable by the grantor or the grantee
based upon any subsequent appreciation, development, or sale of the property;
(3) interest, charges, fees, or other amounts payable by a borrower to a lender pursuant
to a loan secured by a mortgage against real property, including but not limited to a fee
payable to the lender for consenting to an assumption of the loan or a transfer of the real
property subject to the mortgage, fees, or charges payable to the lender for estoppel letters
or certificates, and shared appreciation interest or profit participation or other consideration
and payable to the lender in connection with the loan;
(4) rent, reimbursement, charge, fee, or other amount payable by a lessee to a lessor
under a lease, including but not limited to a fee payable to the lessor for consenting to an
assignment, subletting, encumbrance, or transfer of the lease;
(5) consideration payable to the holder of an option to purchase an interest in real property
or the holder of a right of first refusal or first offer to purchase an interest in real property
for waiving, releasing, or not exercising the option or right upon the transfer of the property
to another person;
deleted text begin
(6) consideration payable by a contract for deed vendee to the vendor pursuant to the
terms of a recorded contract for deed, including any subsequent additional consideration
for the property payable by the vendee based upon any subsequent appreciation, development,
or sale of the property;
deleted text end
deleted text begin (7)deleted text end new text begin (6)new text end a tax, fee, charge, assessment, fine, or other amount payable to or imposed by a
governmental authority;
deleted text begin (8)deleted text end new text begin (7)new text end a fee, charge, assessment, fine, or other amount payable to a homeowner's
condominium, cooperative, mobile home, or property owner's association pursuant to a
declaration or covenant or law applicable to the association, including but not limited to
fees or charges payable for estoppel letters or certificates issued by the association or its
authorized agent;
deleted text begin (9)deleted text end new text begin (8)new text end a fee, a charge, an assessment, dues, a contribution, or other amount pertaining
to the purchase or transfer of a club membership relating to real property owned by the
member, including but not limited to any amount determined by reference to the value,
purchase price, or other consideration given for the transfer of the real property; and
deleted text begin (10)deleted text end new text begin (9)new text end a mortgage from the purchaser of real property granted to the seller or to a
licensed real estate broker.
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 559.21, subdivision 2a, is amended to read:
If a default occurs in the conditions of a contract
for the conveyance of real estate or an interest in real estate executed on or after August 1,
1985, that gives the seller a right to terminate it, the seller may terminate the contract by
serving upon the purchaser or the purchaser's personal representatives or assigns, within or
outside of the state, a notice specifying the conditions in which default has been made. The
notice must state that the contract will terminate 60 days, or a shorter period allowed new text begin or a
longer period required new text end in subdivision 4, after the service of the notice, unless prior to the
termination date the purchaser:
(1) complies with the conditions in default;
(2) makes all payments due and owing to the seller under the contract through the date
that payment is made;
(3) pays the costs of service of the notice, including the reasonable costs of service by
sheriff, public officer, or private process server; except payment of costs of service is not
required unless the seller notifies the purchaser of the actual costs of service by certified
mail to the purchaser's last known address at least ten days prior to the date of termination;
(4) except for earnest money contracts, purchase agreements, and exercised options,
pays two percent of any amount in default at the time of service, not including the final
balloon payment, any taxes, assessments, mortgages, or prior contracts that are assumed by
the purchaser; and
(5) new text begin if the contract for deed is executed on or after August 1, 2024, pays an amount to
apply on attorneys' fees actually expended or incurred of $1,000; new text end if the contract is executed
on or after August 1, 1999, new text begin and before August 1, 2024, new text end pays an amount to apply on attorneys'
fees actually expended or incurred, of $250 if the amount in default is less than $1,000, and
of $500 if the amount in default is $1,000 or more; or if the contract is executed before
August 1, 1999, pays an amount to apply on attorneys' fees actually expended or incurred,
of $125 if the amount in default is less than $750, and of $250 if the amount in default is
$750 or more; except that no amount for attorneys' fees is required to be paid unless some
part of the conditions of default has existed for at least 30 days prior to the date of service
of the notice.
new text begin
This section is effective August 1, 2024.
new text end
Minnesota Statutes 2022, section 559.21, subdivision 4, is amended to read:
(a) The notice required
by this section must be given notwithstanding any provisions in the contract to the contrary,
except that new text begin (1) new text end earnest money contracts, purchase agreements, and exercised options that
are subject to this section may, unless by their terms they provide for a longer termination
period, be terminated on 30 days' notice, or may be canceled under section 559.217new text begin and (2)
contracts for deed executed by an investor seller shall be terminated on 90 days' noticenew text end . The
notice must be served within the state in the same manner as a summons in the district court,
and outside of the state, in the same manner, and without securing any sheriff's return of
not found, making any preliminary affidavit, mailing a copy of the notice or doing any other
preliminary act or thing whatsoever. Service of the notice outside of the state may be proved
by the affidavit of the person making the same, made before an authorized officer having
a seal, and within the state by such an affidavit or by the return of the sheriff of any county
therein.
(b) If a person to be served is a resident individual who has departed from the state, or
cannot be found in the state; or is a nonresident individual or a foreign corporation,
partnership, or association, service may be made by publication as provided in this paragraph.
Three weeks' published notice has the same effect as personal service of the notice. The
published notice must comply with subdivision 3 and state (1) that the person to be served
is allowed 90 days after the first date of publication of the notice to comply with the
conditions of the contract, and (2) that the contract will terminate 90 days after the first date
of publication of the notice, unless before the termination date the purchaser complies with
the notice. If the real estate described in the contract is actually occupied, then, in addition
to publication, a person in possession must be personally served, in like manner as the
service of a summons in a civil action in state district court, within 30 days after the first
date of publication of the notice. If an address of a person to be served is known, then within
30 days after the first date of publication of the notice a copy of the notice must be mailed
to the person's last known address by first class mail, postage prepaid.
(c) The contract is reinstated if, within the time mentioned, the person served:
(1) complies with the conditions in default;
(2) if subdivision 1d or 2a applies, makes all payments due and owing to the seller under
the contract through the date that payment is made;
(3) pays the costs of service as provided in subdivision 1b, 1c, 1d, or 2a;
(4) if subdivision 2a applies, pays two percent of the amount in default, not including
the final balloon payment, any taxes, assessments, mortgages, or prior contracts that are
assumed by the purchaser; and
(5) pays attorneys' fees as provided in subdivision 1b, 1c, 1d, or 2a.
(d) The contract is terminated if the provisions of paragraph (c) are not met.
(e) In the event that the notice was not signed by an attorney for the seller and the seller
is not present in the state, or cannot be found in the state, then compliance with the conditions
specified in the notice may be made by paying to the court administrator of the district court
in the county wherein the real estate or any part thereof is situated any money due and filing
proof of compliance with other defaults specified, and the court administrator of the district
court shall be deemed the agent of the seller for such purposes. A copy of the notice with
proof of service thereof, and the affidavit of the seller, the seller's agent or attorney, showing
that the purchaser has not complied with the terms of the notice, may be recorded with the
county recorder or registrar of titles, and is prima facie evidence of the facts stated in it; but
this section in no case applies to contracts for the sale or conveyance of lands situated in
another state or in a foreign country. If the notice is served by publication, the affidavit must
state that the affiant believes that the party to be served is not a resident of the state, or
cannot be found in the state, and either that the affiant has mailed a copy of the notice by
first class mail, postage prepaid, to the party's last known address, or that such address is
not known to the affiant.
new text begin
(f) No notice under this section may be given for a contract for deed executed by an
investor seller unless, at least 30 days prior to the service of the notice, some part of the
conditions of default has existed and the investor seller has notified the purchaser of such
conditions of default by certified mail to the purchaser's last known address.
new text end
new text begin
(g) For purposes of this subdivision, "investor seller" has the meaning given in section
559A.01, subdivision 6.
new text end
new text begin
This section is effective August 1, 2024.
new text end
Minnesota Statutes 2022, section 559.21, is amended by adding a subdivision to
read:
new text begin
(a) Notwithstanding any provisions in a contract for deed to the contrary, the
notice under this section may not be given and no other remedies may be exercised for any
contract for deed based on any of the following transfers:
new text end
new text begin
(1) a transfer on death deed conveying or assigning the deceased purchaser's interest in
the property to a grantee beneficiary;
new text end
new text begin
(2) a transfer by devise, descent, or operation of law on the death of a joint tenant occurs;
new text end
new text begin
(3) a transfer by which the spouse or children of the purchaser become an owner of the
property;
new text end
new text begin
(4) a transfer resulting from a decree of a dissolution of marriage, legal separation
agreement, or from an incidental property settlement agreement, by which the spouse of
the purchaser becomes an owner of the property; or
new text end
new text begin
(5) a transfer into an inter vivos trust by which the purchaser is and remains a beneficiary
and which does not relate to a transfer of rights of occupancy in the property.
new text end
new text begin
(b) For the purposes of this subdivision, "contract for deed" has the meaning given in
section 507.235, subdivision 1a, paragraph (e).
new text end
new text begin
This section is effective August 1, 2024, and applies to all contracts
for deed executed by all parties on or after that date.
new text end
Minnesota Statutes 2022, section 559.21, is amended by adding a subdivision to
read:
new text begin
(a) Notwithstanding subdivision 2a or any provision
to the contrary in a contract for deed, a vendor may not terminate a contract for deed under
this section if the contract has not been recorded as required under section 507.235,
subdivision 1a, paragraph (b), or the vendor has failed to make a good faith effort to record
the contract as provided under section 507.235, subdivision 1a, paragraph (d).
new text end
new text begin
(b) Nothing contained in this subdivision bars judicial termination of a contract for deed.
new text end
new text begin
(c) For the purposes of this subdivision, "contract for deed" has the meaning given in
section 507.235, subdivision 1a, paragraph (e).
new text end
new text begin
This section is effective August 1, 2024, and applies to all contracts
for deed executed by all parties on or after that date.
new text end
Minnesota Statutes 2022, section 559.21, is amended by adding a subdivision to
read:
new text begin
In any instance where
the copy of the notice of default, proof of service of the notice, and an affidavit showing
that the purchaser has not complied with the terms of the notice have been or may be
recorded, an affidavit of the seller, the seller's agent, or attorney verified by a person having
knowledge of the facts and attesting that the seller is not an investor seller or that the seller
has complied with the requirements of subdivision 4, paragraph (f), may be recorded with
the county recorder or registrar of titles and is prima facie evidence of the facts stated in
the affidavit.
new text end
new text begin
This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end
Minnesota Statutes 2022, section 559.211, subdivision 1, is amended to read:
new text begin (a) new text end In an action arising under or in relation
to a contract for the conveyance of real estate or any interest therein, the district court,
notwithstanding the service or publication pursuant to the provisions of section 559.21 of
a notice of termination of the contract, has the authority at any time prior to the effective
date of termination of the contract and subject to the requirements of rule 65 of the Rules
of Civil Procedure for the District Courts to enter an order temporarily restraining or enjoining
further proceedings to effectuate the termination of the contract, including recording of the
notice of termination with proof of service, recording of an affidavit showing noncompliance
with the terms of the notice, taking any action to recover possession of the real estate, or
otherwise interfering with the purchaser's lawful use of the real estate. In the action, the
purchaser may plead affirmatively any matter that would constitute a defense to an action
to terminate the contract.
new text begin (b)new text end Upon a motion for a temporary restraining order the court has the discretion,
notwithstanding any rule of court to the contrary, to grant the order without requiring the
giving of any security or undertaking, and in exercising that discretion, the court shall
consider, as one factor, the moving party's ability to afford monetary security. Upon a motion
for a temporary injunction, the court shall condition the granting of the order either upon
the tender to the court or vendor of installments as they become due under the contract or
upon the giving of other security in a sum as the court deems proper. Upon written
application, the court may disburse from payments tendered to the court an amount the court
determines necessary to insure the timely payment of property taxes, property insurance,
installments of special assessments, mortgage installments, prior contract for deed
installments or other similar expenses directly affecting the real estate, or for any other
purpose the court deems just.
new text begin (c)new text end If a temporary restraining order or injunction is granted pursuant to this subdivision,
the contract shall not terminate until the expiration of 15 days after the entry of the order
or decision dissolving or modifying the temporary restraining order or injunction.new text begin If the
vendor has made an appearance and the restraining order or injunction is granted, the court
may award reasonable attorneys' fees and costs to the purchaser.
new text end
new text begin
(d) If the court subsequently grants permanent relief to the purchaser or determines by
final order or judgment that the notice of termination was invalid or the purchaser asserted
a valid defense, the purchaser is entitled to an order granting reasonable attorneys' fees and
costs.
new text end
new text begin
This section is effective August 1, 2024.
new text end
Minnesota Statutes 2022, section 559.213, is amended to read:
The recording, heretofore or hereafter, of the copy of notice of default, proof of service
thereof, and the affidavit showing that the purchaser has not complied with the terms of the
notice, provided for by deleted text begin Minnesota Statutes 1941,deleted text end section 559.21, shall be prima facie evidence
that the contract referred to in such notice has been terminated.new text begin It shall not be necessary to
pay current or delinquent real estate taxes owed on the real property which is the subject of
the contract to record the documents required by this section, provided that the documents
must be first presented to the county auditor for entry upon the transfer record and must
have "Transfer Entered" noted in them over the county auditor's official signature.
new text end
new text begin
This section is effective the day following final enactment.
new text end
new text begin
The definitions in this section apply to sections 559A.01
to 559A.05.
new text end
new text begin
"Balloon payment" means a scheduled payment under a
contract for deed that is significantly larger than the regular installment payments and that
may be due prior to the end of the loan term or may be the final payment that satisfies the
contract.
new text end
new text begin
"Churning" means an investor seller has completed two or more
termination proceedings under section 559.21 within the previous 48 months on the same
property or any four or more termination proceedings within the previous 48 months on
residential real properties the investor seller sold on a contract for deed that was executed
by all parties before, on, or after August 1, 2024. For the purposes of this subdivision, a
person who sold on a contract for deed that was executed by all parties before, on, or after
August 1, 2024, is deemed to be the same person as the investor seller where the person
who sold on a contract for deed:
new text end
new text begin
(1) is owned or controlled, in whole or in part, by the investor seller;
new text end
new text begin
(2) owns or controls, in whole or in part, the investor seller;
new text end
new text begin
(3) is under common ownership or control, in whole or in part, with the investor seller;
new text end
new text begin
(4) is a spouse, parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew,
or cousin of the investor seller, or of the natural person who owns or controls, in whole or
in part, the investor seller; or
new text end
new text begin
(5) is an entity owned or controlled, in whole or in part, by a person who is a spouse,
parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew, or cousin of the
investor seller, or of the natural person who owns or controls, in whole or in part, the investor
seller.
new text end
new text begin
"Contract for deed" means an executory contract for the
conveyance of residential real property under which the seller provides financing for the
purchase of the residential real property and under which the purchaser does or has a right
to go into possession. Contract for deed does not include:
new text end
new text begin
(1) a purchase agreement;
new text end
new text begin
(2) an earnest money contract;
new text end
new text begin
(3) an exercised option or a lease, including a lease with an option to purchase; or
new text end
new text begin
(4) a mortgage, as defined in section 287.01.
new text end
new text begin
"Family farm security loan" has the meaning given
in Minnesota Statutes 2008, section 41.52, subdivision 5.
new text end
new text begin
(a) "Investor seller" means a person entering into a contract
for deed to sell residential real property, or, in the event of a transfer or assignment of the
seller's interest, the holder of the interest.
new text end
new text begin
(b) An investor seller does not include a person entering into a contract for deed who
is:
new text end
new text begin
(1) one of the following:
new text end
new text begin
(i) a natural person who has owned and occupied the residential real property containing
no more than two family dwelling units as the natural person's primary residence for a
continuous 12-month period at any time prior to the execution of the contract for deed;
new text end
new text begin
(ii) any spouse, parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew,
or cousin of the natural person;
new text end
new text begin
(iii) a personal representative of the natural person;
new text end
new text begin
(iv) a devisee of the natural person;
new text end
new text begin
(v) a grantee under a transfer on death deed made by the natural person; or
new text end
new text begin
(vi) a trust whose settlor is the natural person;
new text end
new text begin
(2) a trust whose beneficiary is a natural person where the trust or the natural person, or
a combination of the two, has owned, and the natural person has occupied, the residential
real property containing no more than two family dwelling units as the natural person's
primary residence for a continuous 12-month period at any time prior to the execution of
the contract for deed, or any spouse, parent, child, sibling, grandparent, grandchild, uncle,
aunt, niece, nephew, or cousin of the natural person;
new text end
new text begin
(3) a natural person selling on contract for deed to any spouse, parent, child, sibling,
grandparent, grandchild, uncle, aunt, niece, nephew, or cousin; or
new text end
new text begin
(4) a bank, credit union, or residential mortgage originator that is under the supervision
of or regulated by the Office of the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, the National Credit Union Administration, or the Minnesota
Department of Commerce.
new text end
new text begin
(c) If, substantially contemporaneous with the execution of the contract for deed, the
seller's interest is assigned or transferred to a person who does not meet any of the
qualifications of paragraph (b), the assignee or transferee shall be deemed to be an investor
seller who has executed the contract for deed.
new text end
new text begin
"Person" means a natural person, partnership, corporation, limited
liability company, association, trust, or other legal entity, however organized.
new text end
new text begin
"Purchase agreement" means a purchase agreement for
a contract for deed, an earnest money contract, or an executed option contemplating that,
at closing, the investor seller and the purchaser will enter into a contract for deed.
new text end
new text begin
"Purchaser" means a person who enters into a contract for deed to
purchase residential real property. Purchaser includes all purchasers who enter into the same
contract for deed to purchase residential real property.
new text end
new text begin
"Residential real property" means real property
consisting of one to four family dwelling units, one of which is intended to be occupied as
the principal place of residence by:
new text end
new text begin
(1) the purchaser;
new text end
new text begin
(2) if the purchaser is an entity, the natural person who is the majority or controlling
owner of the entity; or
new text end
new text begin
(3) if the purchaser is a trust, the settlor of the trust.
new text end
new text begin
Residential real property does not include property subject to a family farm security loan
or a transaction subject to sections 583.20 to 583.32.
new text end
new text begin
This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end
new text begin
This chapter applies only to residential real property where a purchaser is entering into
a contract for deed with an investor seller. Either of the following statements included in a
contract for deed in which the property is not residential real property or the seller is not an
investor seller shall constitute prima facie evidence that this chapter does not apply to the
contract for deed: "The property is not residential real property" or "The seller is not an
investor seller."
new text end
new text begin
This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end
new text begin
(a) In addition to the disclosures required under
sections 513.52 to 513.61, an investor seller must deliver to a prospective purchaser the
disclosures specified under this section and instructions for cancellation as provided under
section 559A.04, subdivision 2, paragraph (b).
new text end
new text begin
(b) The disclosures must be affixed to the front of any purchase agreement executed
between an investor seller and a prospective purchaser. The investor seller may not enter
into a contract for deed with a prospective purchaser earlier than ten calendar days after the
execution of the purchase agreement by all parties and provision by the investor seller of
the disclosures required under this section and instructions for cancellation as required under
section 559A.04, subdivision 2, paragraph (b).
new text end
new text begin
(c) If there is no purchase agreement, an investor seller must provide the disclosures
required under this section to the prospective purchaser no less than ten calendar days before
the prospective purchaser executes the contract for deed. The disclosures must be provided
in a document separate from the contract for deed. The investor seller may not enter into a
contract for deed with a prospective purchaser earlier than ten calendar days after providing
the disclosures to the prospective purchaser.
new text end
new text begin
(d) The first page of the disclosures must contain the disclosures required in subdivisions
2, 3, and 4 of this section, in that order. The title must be centered, be in bold, capitalized,
and underlined 20-point type, and read "IMPORTANT INFORMATION YOU NEED TO
KNOW." The disclosures required under subdivisions 5 and 6 must follow in subsequent
pages in that order.
new text end
new text begin
(e) The investor seller must acknowledge delivery, and the purchaser must acknowledge
receipt, of the disclosures by signing and dating the disclosures. The acknowledged
disclosures shall constitute prima facie evidence that the disclosures have been provided as
required by this section.
new text end
new text begin
(a) The investor seller must disclose the
amount and due date of, if any, all balloon payments. For purposes of disclosure of a balloon
payment, the investor seller may assume that all prior scheduled payments were timely
made and no prepayments were made. If there is more than one balloon payment due, each
one must be listed separately.
new text end
new text begin
(b) The disclosure must be in the following form, with the title in 14-point type and the
text in 12-point type:
new text end
new text begin
"BALLOON PAYMENT(S)
new text end
new text begin
This contract contains one or more lump-sum "balloon payments." When the final balloon
payment comes due, you will need to get mortgage or other financing to pay it off (or you
will have to sell the property). Even if you are able to sell the property, you may not get
back all the money you paid for it.
new text end
new text begin
If you can't come up with this large amount - even if you have made all your monthly
payments - the seller can cancel the contract.
new text end
new text begin
Amount of Balloon Payment new text end |
new text begin
When Balloon Payment is Due new text end |
new text begin
$ (amount) new text end |
new text begin
(month, year)" new text end |
new text begin
(a) The
investor seller must disclose to the purchaser the purchase price and the date of earliest
acquisition of the property by the investor seller, unless the acquisition occurs more than
one year prior to the execution of the contract for deed.
new text end
new text begin
(b) The disclosure must be in the following form, with the title in 14-point type and the
text in 12-point type:
new text end
new text begin
"INVESTOR SELLER'S PRICE TO BUY HOUSE BEING SOLD TO BUYER
new text end
new text begin
Date Investor Seller Acquired Property:
new text end
new text begin
(date seller acquired ownership)
new text end
new text begin
Price Paid by Investor Seller to Acquire the Property:
new text end
new text begin
$ (total purchase price paid by seller to acquire ownership)
new text end
new text begin
Contract for Deed Purchase Price:
new text end
new text begin
$ (total sale price to the purchaser under the contract)"
new text end
new text begin
(c) For the purposes of this subdivision, unless the acquisition occurred more than one
year prior to the execution of the contract for deed, the person who first acquires the property
is deemed to be the same person as the investor seller where the person who first acquires
the property:
new text end
new text begin
(1) is owned or controlled, in whole or in part, by the investor seller;
new text end
new text begin
(2) owns or controls, in whole or in part, the investor seller;
new text end
new text begin
(3) is under common ownership or control, in whole or in part, with the investor seller;
new text end
new text begin
(4) is a spouse, parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew,
or cousin of the investor seller, or of the natural person who owns or controls, in whole or
in part, the investor seller; or
new text end
new text begin
(5) is an entity owned or controlled, in whole or in part, by a person who is a spouse,
parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew, or cousin of the
investor seller, or of the natural person who owns or controls, in whole or in part, the investor
seller.
new text end
new text begin
(a) An investor seller must disclose to
the prospective purchaser the purchase price, the annual interest rate, the amount of any
down payment, and whether the purchaser is responsible for any or all of the following:
paying property taxes, acquiring homeowner's insurance, making repairs, and maintaining
the property.
new text end
new text begin
(b) The disclosure must be in the following form, with the title in 14-point type and the
text in 12-point type:
new text end
new text begin
"COSTS AND ESSENTIAL TERMS
new text end
new text begin
1. Purchase Price: new text end |
new text begin
$ (price) new text end |
new text begin
2. Annual Interest Rate: new text end |
new text begin
(interest rate) % new text end |
new text begin
3. Down payment: new text end |
new text begin
$ (down payment) new text end |
new text begin
4. Monthly/Period Installments: new text end |
new text begin
$ (amount of installment payment) new text end |
new text begin
5. Taxes, Homeowner's Insurance, Repairs and Maintenance:
new text end
new text begin
You (seller must circle one):
new text end
new text begin
(a) DO new text end |
new text begin
DO NOT new text end |
new text begin
have to pay property taxes new text end |
new text begin
(b) DO new text end |
new text begin
DO NOT new text end |
new text begin
have to pay homeowner's insurance new text end |
new text begin
(c) ARE new text end |
new text begin
ARE NOT new text end |
new text begin
responsible for repairs and maintenance." new text end |
new text begin
(a) An investor seller must provide the prospective
purchaser with a general disclosure about contracts for deeds as provided in this subdivision.
new text end
new text begin
(b) The disclosure must be in the following form, with the title in 18-point type, the titles
of the sections in 14-point type and underlined, and the text of each section in 12-point type,
with a double space between each section:
new text end
new text begin
"KNOW WHAT YOU ARE GETTING INTO BEFORE YOU SIGN
new text end
new text begin
1. How Contracts for Deed Work
new text end
new text begin
A contract for deed is a complicated legal arrangement. Be sure you know exactly what
you are getting into before you sign a contract for deed. A contract for deed is NOT a
mortgage. Minnesota's foreclosure protections do NOT apply.
new text end
new text begin
You should get advice from a lawyer or the Minnesota Homeownership Center
before you sign the contract. You can contact the Homeownership Center at
1-(866)-462-6466 or go to www.hocmn.org.
new text end
new text begin
2. What If I Can't Make My Payments?
new text end
new text begin
If you don't make your monthly installment payment or the balloon payment, the seller
can cancel the contract in only 120 days from the date you missed the payment. If the
contract is cancelled, you lose your home and all the money you have paid, including
any down payment, all the monthly payments, and any improvements to the property
you have made.
new text end
new text begin
If the contract contains a final lump-sum "balloon payment," you will need to get a
mortgage or other financing to pay it off (or you will have to sell the property). If you
can't come up with this large amount - even if you have made all your monthly payments
- the seller can cancel the contract. Even if you are able to sell the property, you may not
get back all the money you have paid for it.
new text end
new text begin
3. BEFORE YOU SIGN, YOU SHOULD:
new text end
new text begin
A. Get an Independent, Professional Appraisal of the property to learn what it's worth
and make sure you are not overpaying for the house.
new text end
new text begin
B. Get an Independent, Professional Inspection of the property because you will
probably be responsible for maintaining and making repairs on the house.
new text end
new text begin
C. Buy Title Insurance from a title insurance company or ask a lawyer for a "title
opinion" to address or minimize potential title problems.
new text end
new text begin
4. YOUR RIGHTS BEFORE YOU SIGN
new text end
new text begin
A. Waiting Period After Getting Disclosures There is a 10-day waiting period after
you get these disclosures. The contract for deed cannot be signed by you or the seller during
that 10-day period.
new text end
new text begin
B. Cancelling a Purchase Agreement You have 10 calendar days after you get these
disclosures to cancel your purchase agreement and get back any money you paid."
new text end
new text begin
In a document separate from all others, an investor
seller must provide to the prospective purchaser an amortization schedule consistent with
the contract for deed, including the portion of each installment payment that will be applied
to interest and to principal and the amount and due date of any balloon payments.
new text end
new text begin
If the contract was advertised or primarily
negotiated with the purchaser in a language other than English, the investor seller must
provide the disclosures required in this section in the language in which the contract was
advertised or primarily negotiated.
new text end
new text begin
The provisions of this section may not be waived.
new text end
new text begin
Except as provided in section 559A.05, subdivision 2, a
violation of this section has no effect on the validity of the contract for deed.
new text end
new text begin
This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end
new text begin
An
investor may not enter into a contract for deed that is subject to a mortgage and not expressly
assumed by the contract for deed purchaser unless the investor seller has:
new text end
new text begin
(1) procured a binding agreement with the mortgage holder whereby the holder either
consents to the sale of the property to the purchaser by contact for deed or agrees not to
exercise the holder's rights under a due-on-sale clause in the mortgage based on the contract
for deed; and
new text end
new text begin
(2) in the contract:
new text end
new text begin
(i) disclosed the existence of the investor seller's mortgage;
new text end
new text begin
(ii) covenants that the investor seller will perform all obligations under the mortgage;
and
new text end
new text begin
(iii) expressly represents to the purchaser that the seller has procured the binding
agreement required under clause (1).
new text end
new text begin
(a) A prospective purchaser may cancel
a purchase agreement prior to the execution by all parties of the contract for deed or within
ten calendar days of receiving the disclosures required under section 559A.03, whichever
is earlier.
new text end
new text begin
(b) In addition to the disclosures required under section 559A.03, an investor seller must
provide the prospective purchaser with notice of the person to whom, and the mailing address
to where, cancellation of the purchase agreement must be delivered or sent. Cancellation
of the purchase agreement is effective upon personal delivery or upon mailing.
new text end
new text begin
(c) In the event of cancellation or if no purchase agreement has been signed and the
prospective purchaser elects not to enter into the contract for deed, the investor seller may
not impose a penalty or fee and must promptly refund all payments made by the prospective
purchaser.
new text end
new text begin
The investor seller must inform the purchaser
in a separate writing of the right to request an annual accounting. Upon reasonable written
request by the purchaser and no more than once every calendar year, an investor seller must
provide an accounting of:
new text end
new text begin
(1) all payments made pursuant to the contract for deed during the prior calendar year
with payments allocated between interest and principal;
new text end
new text begin
(2) any delinquent payments;
new text end
new text begin
(3) the total principal amount remaining to satisfy the contract for deed; and
new text end
new text begin
(4) the anticipated amounts and due dates of all balloon payments.
new text end
new text begin
An investor seller is prohibited from engaging in
churning.
new text end
new text begin
If an investor seller cancels
a contract for deed within 48 months of executing the contract, any portion of the down
payment that exceeded ten percent of the purchase price shall be refunded to the purchaser
within 180 days of the cancellation of the contract.
new text end
new text begin
This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end
new text begin
For the purposes of this section, "material violation of section
559A.03" means:
new text end
new text begin
(1) if applicable, failure to disclose any balloon payment as required under section
559A.03, subdivision 2;
new text end
new text begin
(2) failure to disclose the price paid by the investor seller under the contract for deed to
acquire property as required under section 559A.03, subdivision 3;
new text end
new text begin
(3) failure to disclose the other essential terms of the contact as required under section
559A.03, subdivision 4;
new text end
new text begin
(4) failure to provide the general disclosure in substantially the form required under
section 559A.03, subdivision 5;
new text end
new text begin
(5) failure to disclose the amortization schedule as required under section 559A.03,
subdivision 6;
new text end
new text begin
(6) a violation of section 559A.03, subdivision 1, paragraph (b) or (c);
new text end
new text begin
(7) a violation of section 559A.03, subdivision 7; or
new text end
new text begin
(8) a material omission or misstatement of any of the information required to be disclosed
under section 559A.03.
new text end
new text begin
(a)
Notwithstanding any provision in the purchase agreement or contract for deed to the contrary,
a purchaser may, within two years of the execution of the contract for deed, bring an action
for relief for a material violation of section 559A.03 or a violation of 559A.04, subdivision
4. A prevailing purchaser may rescind a contract and, in conjunction with the rescission,
may recover against the investor seller a sum equal to:
new text end
new text begin
(1) all amounts paid by the purchaser under the contract for deed, including payments
to third parties, less the fair rental value of the residential real property for the period of
time the purchaser was in possession of the property;
new text end
new text begin
(2) the reasonable value of any improvements to the residential real property made by
the purchaser;
new text end
new text begin
(3) actual, consequential, and incidental damages; and
new text end
new text begin
(4) reasonable attorneys' fees and costs.
new text end
new text begin
(b) A claim for rescission and a money judgment awarded under this subdivision shall
not affect any rights or responsibilities arising from any conveyance or encumbrance made
by the investor seller prior to the filing of a lis pendens in the action in which such relief is
sought, unless it is established by clear and convincing evidence that the recipient of the
conveyance or encumbrance had prior knowledge that the contract for deed was executed
in violation of the requirements of section 559A.03 or 559A.04, subdivision 4.
new text end
new text begin
(c) A purchaser barred under paragraph (b) from making a claim against the recipient
of the conveyance or encumbrance may, within two years of the execution of the contract
for deed, bring a claim for violation of the requirements of section 559A.03 or 559A.04,
subdivision 4, against the original investor seller who entered into the contract for deed and
may recover the greater of actual damages or statutory damages of $5,000, plus reasonable
attorneys' fees and costs. The original investor seller shall have no claim for indemnification
or contribution against the recipient of the conveyance or encumbrance.
new text end
new text begin
(a) If a mortgage holder commences foreclosure of its mortgage based on the sale
to a purchaser under the contract for deed and notwithstanding any provision in the purchase
agreement or contract for deed to the contrary, a purchaser may bring an action for the
failure of the investor seller to procure the agreement with the mortgage holder as required
under section 559A.04, subdivision 2. A prevailing purchaser may rescind a contract and
may recover against the investor seller a sum equal to:
new text end
new text begin
(1) all amounts paid by the purchaser under the contract for deed, including payments
to third parties, less the fair rental value of the residential real property for the period of
time the purchaser was in possession of the property;
new text end
new text begin
(2) the reasonable value of any improvements to the residential real property made by
the purchaser;
new text end
new text begin
(3) actual, consequential, and incidental damages; and
new text end
new text begin
(4) reasonable attorneys' fees and costs.
new text end
new text begin
(b) An action under this subdivision may be brought at any time and is not subject to
the statute of limitations in subdivision 2, provided that, at least 30 days prior to bringing
the action, a purchaser must deliver a notice of violation to the investor seller under the
contract for deed personally or by United States mail.
new text end
new text begin
(c) An investor seller may cure the violation at any time prior to entry of a final judgment
by delivering to the purchaser either evidence of the agreement with the mortgage holder
as required under section 559A.04, subdivision 2, or evidence that the mortgage holder has
abandoned foreclosure of the mortgage. If the violation is cured, the purchaser's action must
be dismissed. An investor seller is liable to the purchaser for reasonable attorneys' fees and
court costs if the seller delivers evidence of the mortgage holder's agreement or abandonment
of the foreclosure after the purchaser has commenced the action.
new text end
new text begin
(d) Nothing in this subdivision shall be construed to bar or limit any other claim by a
purchaser arising from the investor seller's breach of a senior mortgage.
new text end
new text begin
A purchaser's right to the remedy under subdivision
2 or 3 shall constitute grounds for injunctive relief under section 559.211.
new text end
new text begin
An action taken under subdivision 2 or 3 shall not
constitute an interest separate from the purchaser's interest in the contract for deed.
new text end
new text begin
The rights and remedies provided in this section are
cumulative to, and not a limitation of, any other rights and remedies provided under law
and at equity. Nothing in this chapter shall preclude a court from construing a contract for
deed as an equitable mortgage.
new text end
new text begin
The attorney general has authority under section 8.31 to
investigate and prosecute violations of sections 559A.03 and 559A.04, subdivision 4.
new text end
new text begin
This section is effective August 1, 2024, and applies to all contracts
for deed executed by all parties on or after that date.
new text end
new text begin
Minnesota Statutes 2022, sections 559.201; and 559.202,
new text end
new text begin
are repealed.
new text end
new text begin
This section is effective August 1, 2024.
new text end
Repealed Minnesota Statutes: 24-06397
"Business day" means any day other than a Saturday, Sunday, or holiday as defined in section 645.44, subdivision 5.
"Family farm security loan" has the meaning given in Minnesota Statutes 2008, section 41.52, subdivision 5.
"Multiple seller" means a person that has acted as a seller in four or more contracts for deed involving residential real property during the 12-month period that precedes either: (1) the date on which the purchaser executes a purchase agreement under section 559.202; or (2) if there is no purchase agreement, the date on which the purchaser executes a contract for deed under section 559.202. A contract for deed transaction that is exempt under section 559.202, subdivision 2, is a contract for deed for the purposes of determining whether a seller is a multiple seller.
"Person" means a natural person, partnership, corporation, limited liability company, association, trust, or other legal entity, however organized.
"Purchase agreement" means a purchase agreement for a contract for deed, an earnest money contract, or an executed option contemplating that, at closing, the seller and the purchaser will enter into a contract for deed.
"Purchaser" means a natural person who enters into a contract for deed to purchase residential real property. Purchaser includes all purchasers who enter into the same contract for deed to purchase residential real property.
"Residential real property" means real property consisting of one to four family dwelling units, one of which the purchaser intends to occupy as the purchaser's principal place of residence. Residential real property does not include property subject to a family farm security loan or a transaction subject to sections 583.20 to 583.32.
(a) In addition to the disclosures required under sections 513.52 to 513.60, a multiple seller must deliver the notice specified under subdivision 3 to a prospective purchaser as provided under this subdivision.
(b) If there is a purchase agreement, the notice must be affixed to the front of the purchase agreement. A contract for deed for which notice is required under this subdivision may not be executed for five business days following the execution of the purchase agreement and delivery of the notice and instructions for cancellation.
(c) If there is no purchase agreement, a multiple seller must deliver the notice in a document separate from any other document or writing to a prospective purchaser no less than five business days before the prospective purchaser executes the contract for deed.
(d) The notice must be:
(1) written in at least 12-point type; and
(2) signed and dated by the purchaser.
(e) If a dispute arises concerning whether or when the notice required by this subdivision was provided to the purchaser, there is a rebuttable presumption that the notice was not provided unless the original executed contract for deed contains the following statement, initialed by the purchaser: "By initialing here ....... purchaser acknowledges receipt at least five business days before signing this contract for deed of the disclosure statement entitled "Important Information About Contracts for Deed" required by Minnesota Statutes, section 559.202, subdivision 3."
This section does not apply to sales made under chapter 282 or if the purchaser is represented throughout the transaction by either:
(1) a person licensed to practice law in this state; or
(2) a person licensed as a real estate broker or salesperson under chapter 82, provided that the representation does not create a dual agency, as that term is defined in section 82.55, subdivision 6.
The notice must contain the following verbatim language:
"IMPORTANT INFORMATION ABOUT CONTRACTS FOR DEED
Know What You Are Getting Into
(1) A contract for deed is a complex legal agreement. You are NOT a tenant. Mortgage foreclosure laws don't apply.
(2) You should know ALL of your obligations and rights before you sign a purchase agreement or contract for deed.
(3) You (seller must circle one):
(a) | DO | DO NOT | have to pay homeowner's insurance. |
(b) | DO | DO NOT | have to pay property taxes. |
(c) | DO | DO NOT | have to make and pay for some or all of the repairs or maintenance, as described in the contract for deed. |
(4) After some time, you may need to make a large lump sum payment (called a "balloon payment"). Know when it is due and how much it will be. You'll probably need to get a new mortgage, another financial arrangement, or pay for the balance in cash at that time.
(5) If you miss just a single payment or can't make the balloon payment, the seller can cancel your contract. You will likely lose all the money you have already paid. You will likely lose your ability to purchase the home. The seller can begin an eviction action against you in just a few months.
(6) Within four months of signing the contract for deed, you must "record" it in the office of the county recorder or registrar of titles in the county in which the property is located. If you do not do so, you could face a fine.
Key Things Highly Recommended Before You Sign
(1) Get advice from a lawyer or the Minnesota Home Ownership Center at 1-866-462-6466 or go to www.hocmn.org. To find a lawyer through the Minnesota State Bar Association, go to www.mnfindalawyer.com.
(2) Get an independent, professional appraisal of the property to learn what it is worth.
(3) Get an independent, professional inspection of the property.
(4) Buy title insurance or ask a real estate lawyer for a "title opinion."
(5) Check with the city or county to find out if there are inspection reports or unpaid utility bills.
(6) Check with a title agent or the county where the property is located to find out if there is a mortgage or other lien on the property and if the property taxes have been paid.
(7) Ensure that your interest rate does not exceed the maximum allowed by law by calling the Department of Commerce to get a recorded message for the current month's maximum rate.
If You Are Entering into a Purchase Agreement
(1) If you haven't already signed the contract for deed, you can cancel the purchase agreement (and get all your money back) if you do so within five business days after getting this notice.
(2) To cancel the purchase agreement, you must follow the provisions of Minnesota Statutes, section 559.217, subdivision 4. Ask a lawyer for help."
(a) A prospective purchaser may cancel a purchase agreement within five business days after actually receiving the notice required under subdivision 1 if a multiple seller fails to timely deliver the notice, provided that the contract for deed has not been executed by all parties.
(b) A prospective purchaser may cancel the purchase agreement in accordance with the provisions of section 559.217, subdivision 4.
(c) In the event of cancellation, the multiple seller may not impose a penalty and must promptly refund all payments made by the prospective purchaser prior to cancellation.
(a) Notwithstanding any contrary provision in the purchase agreement or contract for deed, a purchaser has a private right of action against a multiple seller who fails to timely deliver the notice required under subdivision 1. The multiple seller is liable to the purchaser for:
(1) the greater of actual damages or statutory damages of $2,500; and
(2) reasonable attorney fees and court costs.
(b) A multiple seller who knowingly fails to timely deliver the notice required under subdivision 1 is liable to the purchaser for triple the actual or statutory damages available under paragraph (a), whichever is greater, provided that the purchaser must elect the remedy provided under either paragraph (a) or this paragraph and may not recover damages under both paragraphs.
(c) The rights and remedies provided in this subdivision are cumulative to, and not a limitation of, any other rights and remedies provided under law. An action brought pursuant to this subdivision must be commenced within four years from the date of the alleged violation.
A violation of this section has no effect on the validity of the contract.
Upon reasonable request by the purchaser and no more than once every 12-month period, a multiple seller must provide an accounting of all payments made pursuant to the contract for deed, the amount of interest paid, and the amount remaining to satisfy the principal balance under the contract.
The provisions of this section may not be waived.