SF 872

1st Unofficial Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to civil law; conveyances by spouses; 
  1.3             purchase money mortgages in conveyances by spouses; 
  1.4             joint and several liability in certain conveyances by 
  1.5             a spouse and in other civil actions; amending 
  1.6             Minnesota Statutes 2002, sections 507.02; 507.03; 
  1.7             604.02, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 507.02, is 
  1.10  amended to read: 
  1.11     507.02 [CONVEYANCES BY SPOUSES; POWERS OF ATTORNEY.] 
  1.12     If the owner is married, no conveyance of the homestead, 
  1.13  except a mortgage for purchase money unpaid thereon under 
  1.14  section 507.03, a conveyance between spouses pursuant to section 
  1.15  500.19, subdivision 4, or a severance of a joint tenancy 
  1.16  pursuant to section 500.19, subdivision 5, shall be valid 
  1.17  without the signatures of both spouses.  A spouse's signature 
  1.18  may be made by the spouse's duly appointed attorney-in-fact. 
  1.19     A husband and wife, by their joint deed, may convey the 
  1.20  real estate of either.  A spouse, by separate deed, may convey 
  1.21  any real estate owned by that spouse, except the homestead, 
  1.22  subject to the rights of the other spouse therein; and either 
  1.23  spouse may, by separate conveyance, relinquish all rights in the 
  1.24  real estate so conveyed by the other spouse.  Subject to the 
  1.25  foregoing provisions, either spouse may separately appoint an 
  1.26  attorney-in-fact to sell or convey any real estate owned by that 
  2.1   spouse, or join in any conveyance made by or for the other 
  2.2   spouse.  Use of a power of attorney is subject to section 
  2.3   518.58, subdivision 1a.  A minor spouse has legal capacity to 
  2.4   join in a conveyance of real estate owned by the other spouse, 
  2.5   so long as the minor spouse is not incapacitated because of some 
  2.6   reason other than that spouse's minor age. 
  2.7      Notwithstanding the provisions of section 507.21, if a 
  2.8   homestead owned by a husband and wife is conveyed in any manner 
  2.9   other than as provided by this section, the conveying spouse and 
  2.10  any purchaser are jointly and severally liable for damages to 
  2.11  the nonconveying spouse. 
  2.12     Sec. 2.  Minnesota Statutes 2002, section 507.03, is 
  2.13  amended to read: 
  2.14     507.03 [PURCHASE-MONEY MORTGAGE; NONJOINDER OF SPOUSE.] 
  2.15     When a married individual purchases real property during 
  2.16  marriage and mortgages the real property to secure the payment 
  2.17  of the purchase price or any portion of it, the other spouse 
  2.18  shall not be entitled to any inchoate, contingent, or marital 
  2.19  property right or interest in the real property as against the 
  2.20  mortgagee or those claiming under the mortgagee even though the 
  2.21  other spouse did not join in the mortgage.  A statement in the 
  2.22  mortgage to the effect that the mortgage is a purchase money 
  2.23  mortgage constitutes prima facie evidence of that fact.  
  2.24     The portion of the debt secured by the mortgage and used 
  2.25  for the purchase of the property, and the payment of any fees or 
  2.26  costs associated with the purchase of the property or used to 
  2.27  improve the property shall be deemed purchase money within the 
  2.28  meaning of this section, except that any money used to pay off 
  2.29  the balance owing under an installment land contract under which 
  2.30  the purchaser has the right to possession of the property shall 
  2.31  not be deemed purchase money under this section. 
  2.32     This section applies to every purchase-money mortgage 
  2.33  regardless of when it was granted or created, except that this 
  2.34  section does not affect an action or proceeding involving the 
  2.35  validity or enforceability of a purchase-money mortgage if: 
  2.36     (1) the action or proceeding is pending as of February 1, 
  3.1   2004, or is commenced before February 1, 2004; and 
  3.2      (2) a notice of the pendency of the action or proceeding is 
  3.3   recorded or filed before February 1, 2004, in the office of the 
  3.4   county recorder or registrar of titles of the county in which 
  3.5   the property affected by the action is located. 
  3.6      Sec. 3.  Minnesota Statutes 2002, section 604.02, 
  3.7   subdivision 1, is amended to read: 
  3.8      Subdivision 1.  [JOINT LIABILITY.] When two or more persons 
  3.9   are jointly severally liable, contributions to awards shall be 
  3.10  in proportion to the percentage of fault attributable to each, 
  3.11  except that each is the following persons are jointly and 
  3.12  severally liable for the whole award.  Except in cases where: 
  3.13     (1) a person whose fault is greater than 50 percent; 
  3.14     (2) two or more persons who act in a common scheme or plan 
  3.15  that results in injury; 
  3.16     (3) a person who commits an intentional tort; or 
  3.17     (4) a person whose liability arises under chapters 18B - 
  3.18  pesticide control, 115 - water pollution control, 115A - waste 
  3.19  management, 115B - environmental response and liability, 115C - 
  3.20  leaking underground storage tanks, and 299J - pipeline safety, 
  3.21  public nuisance law for damage to the environment or the public 
  3.22  health, any other environmental or public health law, or any 
  3.23  environmental or public health ordinance or program of a 
  3.24  municipality as defined in section 466.01, a person whose fault 
  3.25  is 15 percent or less is liable for a percentage of the whole 
  3.26  award no greater than four times the percentage of fault, 
  3.27  including any amount reallocated to that person under 
  3.28  subdivision 2. 
  3.29     If the state or a municipality as defined in section 466.01 
  3.30  is jointly liable, and its fault is less than 35 percent, it is 
  3.31  jointly and severally liable for a percentage of the whole award 
  3.32  no greater than twice the amount of fault, including any amount 
  3.33  reallocated to the state or municipality under subdivision 2. 
  3.34     This section applies to claims arising from events that 
  3.35  occur on or after August 1, 2003.