SF 440

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 09:39am

A bill for an act
relating to real property; clarifying ownership definitions; requiring the record
owner to be listed as grantee in tax-forfeited land sales; amending Minnesota
Statutes 2020, sections 282.301; 325N.01; 325N.02; 325N.03; 325N.04; 325N.06;
325N.10, subdivisions 2, 3, 4, 5, 7; proposing coding for new law in Minnesota
Statutes, chapter 282.

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

Section 1.

Minnesota Statutes 2020, section 282.301, is amended to read:

282.301 RECEIPTS FOR PAYMENTS new text begin ; CERTIFICATION BY COUNTY
AUDITOR new text end .

When any sale has been made under sections 282.012 and 282.241 to 282.324, the
purchaser shall receive from the county auditor at the time of repurchase a receipt, in such
form as may be prescribed by the attorney general. When the purchase price of a parcel of
land shall be paid in full, the following facts shall be certified by the county auditor to the
commissioner of revenue of the state of Minnesota: the description of land deleted text begin , the date of sale,
the name of the purchaser or the purchaser's assignee, deleted text end and the date when the final installment
of the purchase price was paid. deleted text begin Upon payment in full of the purchase price, the purchaser
or the assignee shall receive a quitclaim deed from the state, to be executed by the
commissioner of revenue. The deed must be sent to the county auditor who shall have it
recorded before it is forwarded to the purchaser. Failure to make any payment herein required
shall constitute default and upon such default and cancellation in accord with section 282.40,
the right, title and interest of the purchaser or the purchaser's heirs, representatives, or assigns
in such parcel shall terminate.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases made on or after July 1,
2021.
new text end

Sec. 2.

new text begin [282.302] CONVEYANCE OF DEED UPON CERTIFICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Conveyance to record owner. new text end

new text begin Except as provided in subdivision 2, upon
receipt of the certification by the county auditor required under section 282.301, the
commissioner of revenue must issue a quitclaim deed in the name of the state, as grantor,
to the record owner of the property at the time of the expiration of the redemption period
established under section 281.23.
new text end

new text begin Subd. 2. new text end

new text begin Sales to personal representatives, heirs, or devisees. new text end

new text begin Notwithstanding
subdivision 1, the state deed must name the record owner's estate as grantee if a sale
conducted under section 282.01 is made to a personal representative, heir, or devisee of the
record owner, and the record owner is either deceased at the time of the expiration of
redemption period established under section 281.23 or is deceased at the time the certification
of payment under section 282.301 is made.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases made on or after July 1,
2021.
new text end

Sec. 3.

new text begin [282.303] ASSIGNMENT OF INSTALLMENT CONTRACT.
new text end

new text begin If the record owner at the time of the expiration of redemption assigns an installment
contract used to repurchase, and the assignment was registered or recorded, the state deed
must name the assignee as the grantee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases made on or after July 1,
2021.
new text end

Sec. 4.

new text begin [282.304] RECORDATION OF DEED; DEFAULT.
new text end

new text begin (a) The quitclaim deed issued under section 282.302 must be sent to the county auditor
who must have it recorded before it is forwarded to the grantee. Recording of the deed by
the county auditor is deemed delivery to the grantee.
new text end

new text begin (b) Failure to make any payment required by this chapter will constitute default and
upon such default, the sale will be subject to the cancellation provisions of section 282.40.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases made on or after July 1,
2021.
new text end

Sec. 5.

Minnesota Statutes 2020, section 325N.01, is amended to read:

325N.01 DEFINITIONS.

The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09.

(a) deleted text begin "Foreclosure consultant" deleted text end new text begin "Solicitor" new text end means any person who, directly or indirectly,
makes any solicitation, representation, or offer to any owner to perform for compensation
or who, for compensation, performs any service which the person in any manner represents
will in any manner do any of the following:

(1) stop or postpone deleted text begin the deleted text end new text begin a new text end foreclosure sale new text begin , a tax forfeiture sale, or a contract for deed
termination new text end ;

(2) obtain any forbearance from any beneficiary new text begin , local unit of government, association
of apartment owners, contract for deed seller, new text end or mortgagee new text begin regarding:
new text end

new text begin (i) taxes new text end ;

new text begin (ii) dues owed to an association of apartment owners; or
new text end

new text begin (iii) contract for deed, mortgage, or any other payments;
new text end

(3) assist the owner to new text begin :
new text end

new text begin (i) new text end exercise the right of reinstatement provided in section 580.30 new text begin or the right of redemption
provided in section 580.25 new text end ;

new text begin (ii) exercise the right of redemption under chapter 281 or the right to repurchase under
sections 282.241 to 282.324;
new text end

new text begin (iii) cure a default that has resulted in a termination notice issued under section 559.21,
subdivision 2a; or
new text end

new text begin (iv) cure a default that resulted in a lien secured by a common interest community or a
master association;
new text end

(4) obtain any extension of the period within which the owner may reinstate the owner's
obligation;

(5) obtain any waiver of an acceleration clause contained in any promissory note or
contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;

(6) assist the owner in foreclosure new text begin , tax forfeiture, new text end or deleted text begin loan deleted text end default new text begin on a loan, contract for
deed payments, or dues owed to an association of apartment owners, new text end to obtain a loan or
advance of funds;

(7) avoid or ameliorate the impairment of the owner's credit resulting from the recording
of a notice of default new text begin on taxes or any debt secured by the covered residence new text end or the conduct
of a foreclosure new text begin or tax forfeiture new text end sale;

(8) save the owner's residence from foreclosure new text begin , tax forfeiture, or contract for deed
termination new text end ; or

(9) negotiate or modify the terms or conditions of an existing residential mortgage loan new text begin ,
a repayment agreement on taxes owed, a repurchase agreement of tax-forfeited real property,
or a contract for deed new text end .

(b) A deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end does not include any of the following:

(1) a person licensed to practice law in this state when the person renders service in the
course of the person's practice as an attorney-at-law;

(2) a person licensed as a debt management services provider under chapter 332A, when
the person is acting as a debt management services provider as defined in that chapter;

(3) a person licensed as a real estate broker or salesperson under chapter 82 when the
person engages in acts whose performance requires licensure under that chapter unless the
person is engaged in offering services designed to, or purportedly designed to, enable the
owner to retain possession of the new text begin covered new text end residence deleted text begin in foreclosure deleted text end ;

(4) a person licensed as an accountant under chapter 326A when the person is acting in
any capacity for which the person is licensed under those provisions;

(5) a person or the person's authorized agent acting under the express authority or written
approval of the Department of Housing and Urban Development or other department or
agency of the United States or this state to provide services;

(6) a person who holds or is owed an obligation secured by a lien on any new text begin covered new text end
residence deleted text begin in foreclosure deleted text end when the person performs services in connection with this obligation
or lien if the obligation or lien did not arise as the result of or as part of a proposed deleted text begin foreclosure deleted text end new text begin
property new text end reconveyance;

(7) any person or entity doing business under any law of this state, or of the United States
relating to banks, trust companies, savings and loan associations, industrial loan and thrift
companies, regulated lenders, credit unions, insurance companies, or a mortgagee which is
a United States Department of Housing and Urban Development approved mortgagee and
any subsidiary or affiliate of these persons or entities, and any agent or employee of these
persons or entities while engaged in the business of these persons or entities;

(8) a person licensed as a residential mortgage originator or servicer pursuant to chapter
58, when acting under the authority of that license, except that the provisions of sections
325N.01 to 325N.06, 325N.08, and 325N.09 shall apply to any person operating under a
mortgage originator license who negotiates or offers to negotiate the terms or conditions of
an existing residential mortgage loan;

(9) a nonprofit agency or organization that has tax-exempt status under section 501(c)(3)
of the Internal Revenue Code that offers counseling or advice to an owner of a home in
foreclosure or loan default if they do not contract for services with for-profit lenders or
deleted text begin foreclosure deleted text end new text begin equity new text end purchasers, except that they shall comply with the provisions of section
325N.04, clause (1);

(10) a judgment creditor of the owner, to the extent that the judgment creditor's claim
accrued prior to the personal service of the foreclosure notice required by section 580.03,
but excluding a person who purchased the claim after such personal service; deleted text begin and
deleted text end

(11) deleted text begin a foreclosure deleted text end new text begin an equity new text end purchaser as defined in section 325N.10 new text begin ; and
new text end

new text begin (12) any common interest community association or master association that holds or is
owed an obligation secured by a lien on any residence in foreclosure and any employee or
agent of either while performing services within the scope of the employment or agency new text end .

(c) deleted text begin "Foreclosure deleted text end new text begin "Property new text end reconveyance" means a transaction involving:

(1) the transfer of title to real property by deleted text begin a foreclosed homeowner during a foreclosure
proceeding, either by transfer of interest from the foreclosed homeowner or by creation of
a mortgage or other lien or encumbrance during the foreclosure process deleted text end new text begin an owner, either
by transfer of interest from the owner or by creation of a mortgage or other lien or
encumbrance new text end that allows the acquirer to obtain title to the property by redeeming the property
as a junior lienholder new text begin or by other legal process, prior to the expiration of:
new text end

new text begin (i) the right of reinstatement provided in section 580.30 or the right of redemption of a
property provided in section 580.25;
new text end

new text begin (ii) the right of redemption under chapter 281 or the right to repurchase under sections
282.241 to 282.324;
new text end

new text begin (iii) the period to cure a default that has resulted in a termination notice issued under
section 559.21, subdivision 2a; or
new text end

new text begin (iv) the period to cure a default that resulted in a lien assessed by a common interest
community or a master association new text end ; and

(2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest
back to the deleted text begin foreclosed homeowner deleted text end new text begin owner new text end by the acquirer or a person acting in participation
with the acquirer that allows the deleted text begin foreclosed homeowner deleted text end new text begin owner new text end to possess either the new text begin covered
new text end residence deleted text begin in foreclosure deleted text end or any other real property, which interest includes, but is not limited
to, an interest in a contract for deed, purchase agreement, option to purchase, or lease.

(d) "Person" means any individual, partnership, corporation, limited liability company,
association, or other group, however organized.

(e) "Service" means and includes, but is not limited to, any of the following:

(1) debt, budget, or financial counseling of any type;

(2) receiving money for the purpose of distributing it to creditors new text begin , vendors, or association
of apartment owners new text end in payment or partial payment of any obligation secured by deleted text begin a lien on deleted text end
a new text begin covered new text end residence deleted text begin in foreclosure deleted text end ;

(3) contacting creditors new text begin , vendors, association of apartment owners, new text end or servicers to
negotiate or offer to negotiate the terms or conditions of an existing residential mortgage
loan new text begin , a tax forfeiture redemption or repurchase agreement, or a contract for deed new text end ;

(4) arranging or attempting to arrange for an extension of the period within which the
owner of a new text begin covered new text end residence deleted text begin in foreclosure deleted text end may new text begin :
new text end

new text begin (i) new text end cure the owner's default and reinstate the owner's obligation pursuant to section
580.30;

new text begin (ii) cure the owner's property tax default and redeem the property;
new text end

new text begin (iii) cure the owner's default on dues owed to an association of apartment owners and
release the common interest community or master association's lien; or
new text end

new text begin (iv) cure the default on a contract for deed and void the purchaser's ability to terminate
the contract;
new text end

(5) arranging or attempting to arrange for any delay or postponement of the time of sale
of the new text begin covered new text end residence deleted text begin in foreclosure deleted text end ;

(6) advising the filing of any document or assisting in any manner in the preparation of
any document for filing with any bankruptcy court; or

(7) giving any advice, explanation, or instruction to an owner of a new text begin covered new text end residence deleted text begin in
foreclosure deleted text end , which in any manner relates to the cure of a default in or the reinstatement of
an obligation secured by a lien on the new text begin covered new text end residence deleted text begin in foreclosure deleted text end , the full satisfaction
of that obligation, or the postponement or avoidance of a sale of a new text begin covered new text end residence deleted text begin in
foreclosure deleted text end , pursuant to a power of sale contained in any mortgage.

(f) deleted text begin "Residence in foreclosure" deleted text end new text begin "Covered residence" new text end means residential real property
deleted text begin consisting of one to four family dwelling units, one of which the owner occupies as the
owner's principal place of residence, or real property that is principally used for farming,
as defined in section 500.24, subdivision 2, whether or not parcels are contiguous, so long
as the owner occupies one of the parcels as the owner's principal place of residence, where
there is a delinquency or default on any loan payment or debt secured by or attached to the
residential real property including, but not limited to, contract for deed payments deleted text end new text begin where
there is a delinquency or default on any loan, tax, or contract for deed payment, association
of apartment owner or master association dues, or other debt secured by or attached to the
residential real property that:
new text end

new text begin (i) consists of one to four family dwelling units, one of which the owner occupies as the
owner's principal place of residence;
new text end

new text begin (ii) is an apartment, as that term is defined in section 515.02, subdivision 2;
new text end

new text begin (iii) is the subject of a contract for deed; or
new text end

new text begin (iv) is real property that is principally used for farming, as defined in section 500.24,
subdivision 2, whether or not parcels are contiguous, so long as the owner occupies one of
the parcels as the owner's principal place of residence new text end .

(g) "Owner" means the record owner of deleted text begin the residential real property in foreclosure deleted text end new text begin a
covered residence. For the purposes of this chapter, if the residence in foreclosure is subject
to a mortgage foreclosure, an owner is the record owner new text end at the time the notice of pendency
was recorded, or the summons and complaint served.

(h) "Contract" means any agreement, or any term in any agreement, between a deleted text begin foreclosure
consultant deleted text end new text begin solicitor new text end and an owner for the rendition of any service as defined in paragraph
(e).

new text begin (i) "Association of apartment owners" has the meaning given in section 515.02,
subdivision 5.
new text end

new text begin (j) "Common interest community" has the meaning given in section 515B.1-103, clause
(10).
new text end

new text begin (k) "Master association" has the meaning given in section 515B.1-103, clause (21).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2020, section 325N.02, is amended to read:

325N.02 RESCISSION OF deleted text begin FORECLOSURE CONSULTANT deleted text end new text begin SOLICITOR new text end
CONTRACT.

(a) In addition to any other right under law to rescind a contract, an owner has the right
to cancel deleted text begin such deleted text end a new text begin solicitor new text end contract until midnight of the third business day after the day on
which the owner signs a contract which complies with section 325N.03.

(b) Cancellation occurs when the owner gives written notice of cancellation to the
deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end at the address specified in the contract.

(c) Notice of cancellation, if given by mail, is effective when deposited in the mail
properly addressed with postage prepaid.

(d) Notice of cancellation given by the owner need not take the particular form as
provided with the contract and, however expressed, is effective if it indicates the intention
of the owner not to be bound by the contract.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2020, section 325N.03, is amended to read:

325N.03 CONTRACT.

(a) Every contract must be in writing and must fully disclose the exact nature of the
deleted text begin foreclosure consultant's deleted text end new text begin solicitor's new text end services and the total amount and terms of compensation.

(b) The following notice, printed in at least 14-point boldface type and completed with
the name of the deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end , must be printed immediately above the
statement required by paragraph (c):

	"NOTICE REQUIRED BY MINNESOTA LAW
	......................... (Name) or anyone working for him or her CANNOT:
	(1) Take any money from you or ask you for money until ......................... (Name) has completely finished doing everything he or she said he or she would do; and
	(2) Ask you to sign or have you sign any lien, mortgage, or deed."

(c) The contract must be written in the same language as principally used by the
deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end to describe his or her services or to negotiate the contract,
must be dated and signed by the owner, and must contain in immediate proximity to the
space reserved for the owner's signature a conspicuous statement in a size equal to at least
10-point boldface type, as follows:

"You, the owner, may cancel this transaction at any time prior to midnight of the third
business day after the date of this transaction. See the attached notice of cancellation
form for an explanation of this right."

(d) The notice of cancellation must contain, and the contract must contain on the first
page, in a type size no smaller than that generally used in the body of the document, each
of the following:

(1) the name and physical address of the deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end to which the
notice of cancellation is to be mailed or otherwise delivered. A post office box does not
constitute a physical address. A post office box may be designated for delivery by mail only
if it is accompanied by a physical address at which the notice could be delivered by a method
other than mail. An e-mail address may be included, in addition to the physical address;
and

(2) the date the owner signed the contract.

(e) Cancellation occurs when the deleted text begin foreclosed homeowner deleted text end new text begin owner new text end delivers, by any means,
written notice of cancellation to the address specified in the contract. If cancellation is
mailed, delivery is effective upon mailing. If e-mailed, cancellation is effective upon
transmission. The contract must be accompanied by a completed form in duplicate, captioned
"notice of cancellation," which must be attached to the contract, must be easily detachable,
and must contain in at least 10-point type the following statement written in the same
language as used in the contract:

	"NOTICE OF CANCELLATION
	.
	(Enter date of transaction) (Date)
	You may cancel this transaction, without any penalty or obligation, within three business days from the above date.
	To cancel this transaction, you may use any of the following methods: (1) mail or otherwise deliver a signed and dated copy of this cancellation notice, or any other written notice of cancellation; or (2) e-mail a notice of cancellation
	to .
	(Name of deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end )
	at .
	(Physical address of deleted text begin foreclosure consultant's deleted text end new text begin solicitor's new text end place of business)
	.
	(E-mail address of deleted text begin foreclosure consultant's deleted text end new text begin solicitor's new text end place of business)
	NOT LATER THAN MIDNIGHT OF .
	(Date)
	I hereby cancel this transaction .
	(Date)
	.
	(Owner's signature)"

(f) The deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end shall provide the owner with a copy of the contract
and the attached notice of cancellation immediately upon execution of the contract.

(g) The three business days during which the owner may cancel the contract shall not
begin to run until the deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end has complied with this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
all contracts entered into on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2020, section 325N.04, is amended to read:

325N.04 VIOLATIONS.

It is a violation for a deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end to:

(1) claim, demand, charge, collect, or receive any compensation until after the deleted text begin foreclosure
consultant deleted text end new text begin solicitor new text end has fully performed each and every service the deleted text begin foreclosure consultant deleted text end new text begin
solicitor new text end contracted to perform or represented he or she would perform;

(2) claim, demand, charge, collect, or receive any fee, interest, or any other compensation
for any reason which exceeds eight percent per annum of the amount of any loan which the
deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end may make to the owner. Such a loan must not, as provided
in clause (3), be secured by the new text begin covered new text end residence deleted text begin in foreclosure deleted text end or any other real or personal
property;

(3) take any wage assignment, any lien of any type on real or personal property, or other
security to secure the payment of compensation. Any such security is void and unenforceable;

(4) receive any consideration from any third party in connection with services rendered
to an owner unless the consideration is first fully disclosed to the owner;

(5) acquire any interest, directly or indirectly, or by means of a subsidiary or affiliate in
a new text begin covered new text end residence deleted text begin in foreclosure deleted text end from an owner with whom the deleted text begin foreclosure consultant deleted text end new text begin
solicitor new text end has contracted;

(6) take any power of attorney from an owner for any purpose, except to inspect
documents as provided by law; or

(7) induce or attempt to induce any owner to enter a contract which does not comply in
all respects with sections 325N.02 and 325N.03.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2020, section 325N.06, is amended to read:

325N.06 REMEDIES.

(a) A violation of sections 325N.01 to 325N.09 is considered to be a violation of section
325F.69, and all remedies of section 8.31 are available for such an action. A private cause
of action under section 8.31 by a foreclosed homeowner is in the public interest. An owner
may bring an action against a deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end for any violation of sections
325N.01 to 325N.09. Judgment must be entered for actual damages, reasonable attorney
fees and costs, and appropriate equitable relief.

(b) The rights and remedies provided in paragraph (a) are cumulative to, and not a
limitation of, any other rights and remedies provided by law. Any action brought pursuant
to this section must be commenced within deleted text begin four deleted text end new text begin six new text end years from the date of the alleged
violation.

(c) The court may award exemplary damages up to 1-1/2 times the compensation charged
by the deleted text begin foreclosure consultant deleted text end new text begin solicitor new text end if the court finds that the deleted text begin foreclosure consultant deleted text end new text begin
solicitor new text end violated the provisions of section 325N.04, clause (1), (2), or (4), and the deleted text begin foreclosure
consultant's deleted text end new text begin solicitor's new text end conduct was in bad faith.

(d) Notwithstanding any other provision of this section, no action may be brought on
the basis of a violation of sections 325N.01 to 325N.09, except by an owner against whom
the violation was committed or by the attorney general. This limitation does not apply to
administrative action by the commissioner of commerce.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2020, section 325N.10, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Foreclosed homeowner deleted text end new text begin Owner new text end .

deleted text begin "Foreclosed homeowner" means an owner
of residential real property, including a condominium, or an owner of real property that is
principally used for farming as defined in section 500.24, subdivision 2, that is the primary
residence of the owner and whose mortgage on the real property is or was in foreclosure deleted text end new text begin
"Owner" has the meaning given in section 325N.01, paragraph (g) new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2020, section 325N.10, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Foreclosure deleted text end new text begin Property new text end reconveyance.

deleted text begin "Foreclosure deleted text end new text begin "Property new text end reconveyance"
deleted text begin means a transaction involving:
deleted text end

deleted text begin (1) the transfer of title to real property by a foreclosed homeowner during a foreclosure
proceeding, either by transfer of interest from the foreclosed homeowner or by creation of
a mortgage or other lien or encumbrance during the foreclosure process that allows the
acquirer to obtain title to the property by redeeming the property as a junior lienholder; and
deleted text end

deleted text begin (2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest
back to the foreclosed homeowner by the acquirer or a person acting in participation with
the acquirer that allows the foreclosed homeowner to possess either the residence in
foreclosure or other real property, which interest includes, but is not limited to, an interest
in a contract for deed, purchase agreement, option to purchase, or lease deleted text end new text begin has the meaning
given in section 325N.01, paragraph (c) new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2020, section 325N.10, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Foreclosure deleted text end new text begin Equity new text end purchaser.

deleted text begin "Foreclosure deleted text end new text begin "Equity new text end purchaser" means a
person that has acted as the acquirer in a deleted text begin foreclosure deleted text end new text begin property new text end reconveyance. deleted text begin Foreclosure deleted text end new text begin
Equity new text end purchaser also includes a person that has acted in joint venture or joint enterprise
with one or more acquirers in a deleted text begin foreclosure deleted text end new text begin property new text end reconveyance. deleted text begin A foreclosure deleted text end new text begin An equity new text end
purchaser does not include: (i) a natural person who shows that the natural person is not in
the business of deleted text begin foreclosure deleted text end new text begin equity new text end purchasing and has a prior personal relationship with the
deleted text begin foreclosed deleted text end homeowner new text begin of the covered residence, unless a showing of fraud under section
325F.69, subdivision 1, has been made new text end , or (ii) a federal or state chartered bank, savings
bank, thrift, or credit union.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2020, section 325N.10, subdivision 5, is amended to read:

Subd. 5.

Resale.

"Resale" means a bona fide market sale of the property subject to the
deleted text begin foreclosure deleted text end new text begin property new text end reconveyance by the deleted text begin foreclosure deleted text end new text begin equity new text end purchaser to an unaffiliated
third party.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2020, section 325N.10, subdivision 7, is amended to read:

Subd. 7.

new text begin Covered new text end residence deleted text begin in foreclosure deleted text end .

deleted text begin "Residence in foreclosure" means residential
real property consisting of one to four family dwelling units, one of which the owner occupies
as the owner's principal place of residence, or real property that is principally used for
farming, as defined in section 500.24, subdivision 2, whether or not parcels are contiguous,
so long as the owner occupies one of the parcels as the owner's principal place of residence,
where there is a delinquency or default on any loan payment or debt secured by or attached
to the real property, including, but not limited to, contract for deed payments deleted text end new text begin "Covered
residence" has the meaning given in section 325N.01, paragraph (f) new text end .

new text begin EFFECTIVE DATE. new text end

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