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SF 261

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:12am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to real property; making clarifying, technical, and conforming changes
to transfer on death deeds; expanding common element certificates of title to
include planned communities; exempting designated transfers from certain
requirements; establishing procedures for cartways in cities; modifying power of
attorney provision relating to real property transactions; amending Minnesota
Statutes 2008, sections 272.115, subdivision 1, by adding a subdivision; 435.37,
by adding a subdivision; 507.071, subdivision 20, by adding a subdivision;
507.092, subdivisions 1, 2; 508.351; 508.50; 508A.351; 508A.50; 523.17, by
adding a subdivision.

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

ARTICLE 1

TRANSFER ON DEATH DEEDS

Section 1.

Minnesota Statutes 2008, section 507.071, subdivision 20, is amended to
read:


Subd. 20.

Proof of survivorship and clearance from public assistance claims
and liens; recording.

An affidavit of identity and survivorship with a certified copy of
a record of death as an attachment may be combined with a clearance certificate under
this section and the combined documents may be recorded separately or as one document
in each county in which the real estate described in the clearance certificate is located.
new text begin The affidavit must include the name and mailing address of the person to whom future
property tax statements should be sent.
new text end The affidavit, record of death, and clearance
certificate, whether combined or separate, shall be prima facie evidence of the facts stated
in each, and the registrar of titles may rely on the statements to transfer title to the property
described in the clearance certificate.

Sec. 2.

Minnesota Statutes 2008, section 507.071, is amended by adding a subdivision
to read:


new text begin Subd. 26. new text end

new text begin Jurisdiction. new text end

new text begin In counties where the district court has a probate division,
actions to enforce a medical assistance lien or claim against real property described in
a transfer on death deed and any matter raised in connection with enforcement shall
be determined in the probate division. Notwithstanding any other law to the contrary,
the provisions of section 256B.15 shall apply to any proceeding to enforce a medical
assistance lien or claim under chapter 524 or 525. In other counties, the district court
shall have jurisdiction to determine any matter affecting real property purporting to be
transferred by a transfer on death deed.
new text end

Sec. 3.

Minnesota Statutes 2008, section 507.092, subdivision 1, is amended to read:


Subdivision 1.

To get tax statements.

(a) No contract for deed or deed conveying
fee title to real estate shall be recorded by the county recorder or registered by the registrar
of titles until the name and address of the deleted text begin grantee,deleted text end new text begin personnew text end to whom future tax statements
should be sent, is printed, typewritten, stamped or written on it in a legible manner. An
instrument complies with this subdivision if it contains a statement in the following form:
"Tax statements for the real property described in this instrument should be sent to:

............... (legal name of grantee) ............... (residential or business address)."

(b) The name provided under paragraph (a) must be the legal name of the grantee
and the address must be the residential or business address of the grantee.

Sec. 4.

Minnesota Statutes 2008, section 507.092, subdivision 2, is amended to read:


Subd. 2.

Exceptions.

Subdivision 1 does not apply to any instrument executed
before January 1, 1972, nor to a decree, order, judgment or writ of any court, a will or
death record, new text begin a transfer on death deed or clearance certificate under section 507.071, new text end nor to
any instrument executed or acknowledged outside the state.

Sec. 5.

Minnesota Statutes 2008, section 508.50, is amended to read:


508.50 INSTRUMENTS TO HAVE NAME AND ADDRESS.

Every deed or other voluntary instrument which is presented for registration shall
contain or have endorsed upon it the full name and post office address of the grantee, or
other person, who acquires or claims an interest under the instrument. All names and
addresses shall also be entered upon the certificates of title. Any change in the post office
address of the person shall be memorialized on the certificate of title upon the filing of
an affidavit from the person of the change.new text begin This section does not apply to a transfer on
death deed or clearance certificate under section 507.071.
new text end

Sec. 6.

Minnesota Statutes 2008, section 508A.50, is amended to read:


508A.50 INSTRUMENTS TO HAVE NAME AND ADDRESS.

Every deed or other voluntary instrument which is presented for registration shall
contain or have endorsed upon it the full name and post office address of the grantee, or
other person, who acquires or claims an interest under the instrument. All names and
addresses shall also be entered upon the CPT. Any change in the post office address of
the person shall be memorialized on the CPT upon the filing of an affidavit from the
person of the change.new text begin This section does not apply to a transfer on death deed or clearance
certificate under section 507.071.
new text end

Sec. 7. new text begin EFFECTIVE DATES.
new text end

new text begin This article is effective retroactively from August 1, 2008, and applies to instruments
recorded on or after August 1, 2008, and to claims, disputes, and other matters arising
from or relating to such instruments, provided however that no deed or other voluntary
instrument may be refused recording on or after August 1, 2008, for failure to comply
with the requirements of Minnesota Statutes, section 507.092, 508.50, or 508A.50, as
appropriate, if the deed or other voluntary instrument complies with this article or the
requirements of the appropriate section as it existed prior to its amendment by this article.
new text end

ARTICLE 2

COMMON ELEMENT CERTIFICATES

Section 1.

Minnesota Statutes 2008, section 508.351, is amended to read:


508.351 deleted text begin CONDOMINIUM CERTIFICATEdeleted text end new text begin COMMON INTEREST
COMMUNITY CERTIFICATE
new text end .

Subdivision 1.

new text begin Condominium new text end declaration.

Prior to deleted text begin filingdeleted text end new text begin recordingnew text end with the
registrar of titles of a declaration or bylaws for a condominium, or an amendment to the
declaration or bylaws, a determination must be made by an order of court in a proceeding
subsequent to initial registration or by a written directive of the examiner of titles that the
documents comply with the requirements of the applicable condominium statute.

Subd. 2.

Form of common deleted text begin elementsdeleted text end new text begin interest communitynew text end certificate of title.

Upon
the deleted text begin filingdeleted text end new text begin recordingnew text end of a declaration creating a condominiumnew text begin or a planned community
pursuant to chapter 515B
new text end , the registrar shall issue a certificate of title, designated as a
"common deleted text begin elementsdeleted text end new text begin interest communitynew text end certificate of title," deleted text begin ("CECT")deleted text end new text begin ("CICCT")new text end . It
must be in substantially the following form:

COMMON deleted text begin ELEMENTSdeleted text end new text begin INTEREST COMMUNITYnew text end CERTIFICATE
OF TITLE deleted text begin (CECT)deleted text end new text begin (CICCT)
new text end

This is the Common deleted text begin Elementsdeleted text end new text begin Interest Communitynew text end Certificate of Title for
deleted text begin Condominiumdeleted text end CIC No. ............

State of Minnesota
)
) SS.
County of
.
)

This is to certify that the new text begin units and new text end common elements in deleted text begin condominiumdeleted text end CIC No.
............ are subject to the encumbrances, liens, and interests noted by the memorials
set forth as follows:

In witness whereof, I have hereunto subscribed my name and affixed the seal of my
office, this ................. day of ................., .....

.
Registrar of Titles, in and for the County
of . and
State of Minnesota

Subd. 3.

Tract index.

deleted text begin CECTsdeleted text end new text begin CICCTsnew text end must be maintained in the same manner
as provided for certificates of title and must be indexed in the tract index as provided
in section 508.37, subdivision 1a. The names of the owners in the tract index must be
"deleted text begin unitdeleted text end owners." The description of the registered land in the tract index must be "common
deleted text begin elementsdeleted text end new text begin interestsnew text end " or "deleted text begin CECTdeleted text end new text begin CICCTnew text end ."

Subd. 4.

Unit new text begin and common elements new text end certificates.

Certificates of title issued for the
units described in the declarationnew text begin , and for common elements described in the declaration
for a planned community,
new text end must contain, deleted text begin immediately following the description of the unit,deleted text end
a statement in substantially the following form: "subject to encumbrances, liens, and
interests noted on deleted text begin CECTdeleted text end new text begin (CICCT)new text end No. ............"

Subd. 5.

Memorials.

The condominium new text begin or planned community new text end declaration, bylaws,
any amendment to the declaration or bylaws; any lien against the common elements new text begin in a
condominium
new text end pursuant to chapter 514; any fixture filing pursuant to section 336.9-314
where the financing statement describes the common elementsnew text begin in a condominiumnew text end ; any
easement on the common elements new text begin in a condominium new text end pursuant to section 515B.3-102,
subsection (a)(9); any instrument evidencing the transfer of a special declarant right
pursuant to section 515B.3-104; and any conveyance or encumbrance of the common
elements new text begin in a condominium new text end pursuant to section 515B.3-112 must be entered as memorials
on the deleted text begin CECTdeleted text end new text begin CICCTnew text end only. new text begin The entry of a memorial on the CICCT shall have the same
effect as if the memorial were entered on the certificates of title for the units in the
common interest community and on the certificates of title for the common elements
in a planned community.
new text end

Subd. 6.

Preexisting condominiums.

new text begin (a) Except as provided in paragraph (b), new text end in
the case of a condominium existing prior to August 1, deleted text begin 2001deleted text end new text begin 2009new text end , on registered land, for
which no deleted text begin CECTdeleted text end new text begin CICCTnew text end has been issued, upon the deleted text begin filingdeleted text end new text begin recordingnew text end of a document of the
kind specified in subdivision 5, the registrar shall issue a deleted text begin CECTdeleted text end new text begin CICCTnew text end , but documents
filed prior to the issuance of the deleted text begin CECTdeleted text end new text begin CICCTnew text end need not be entered as memorials on the
deleted text begin CECTdeleted text end new text begin CICCTnew text end . The registrar for no additional fee shall deleted text begin mark by the land descriptiondeleted text end new text begin
enter
new text end on the certificate of title for each of the units in the condominium deleted text begin adeleted text end new text begin thenew text end statement
deleted text begin in substantially the following form: "subject to encumbrances, liens, and interests noted
in CECT No. ............"
deleted text end deleted text begin and in future certificates for each unit in the condominium,
insert immediately following the description of the unit, a statement in substantially the
following form: "subject to encumbrances, liens, and interests noted on CECT No.
............"
deleted text end new text begin specified in subdivision 4.
new text end

new text begin (b) In the case of a condominium for which a CECT has been issued pursuant
to Laws 2001, chapter 50, section 4, upon the recording of a document specified in
subdivision 5, the registrar shall cancel the CECT and issue a CICCT in lieu thereof. The
statement on the certificate of title for each of the units in the condominium regarding the
CECT shall be amended by the registrar for no additional fee to refer to the CICCT.
new text end

new text begin Subd. 7. new text end

new text begin Preexisting planned communities. new text end

new text begin In the case of a planned community,
as defined in chapter 515B, existing prior to August 1, 2009, on registered land, for which
no CICCT has been issued, upon the recording of any amendment to the declaration of
the planned community which identifies the common interest community number of the
planned community, the registrar shall issue a CICCT, but documents filed prior to the
issuance of the CICCT need not be entered as memorials on the CICCT. The registrar for
no additional fee shall enter on the certificate of title for each of the units and for the
common elements in the planned community the statement specified in subdivision 4.
new text end

Sec. 2.

Minnesota Statutes 2008, section 508A.351, is amended to read:


508A.351 deleted text begin CONDOMINIUM CERTIFICATEdeleted text end new text begin COMMON INTEREST
COMMUNITY CERTIFICATE
new text end .

Subd. 1a.

new text begin Condominium new text end declaration.

Prior to deleted text begin filingdeleted text end new text begin recordingnew text end with the registrar of
titles of a declaration or bylaws for a condominium, or an amendment to the declaration or
bylaws, a determination must be made by an order of court in a proceeding subsequent to
initial registration or by a written directive of the examiner of titles that the documents
comply with the requirements of the applicable condominium statute.

Subd. 2.

Removal.

The registrar of titles shall carry forward the memorial set forth
in subdivision 1 until directed to remove it by a court order as provided for in section
508A.71.

Subd. 2a.

Form of common deleted text begin elementsdeleted text end new text begin interest communitynew text end certificate of title.

Upon the deleted text begin filingdeleted text end new text begin recordingnew text end of a declaration creating a condominiumnew text begin or a planned community
pursuant to chapter 515B
new text end , the registrar shall issue a certificate of title, designated as a
"common deleted text begin elementsdeleted text end new text begin interest communitynew text end certificate of title," deleted text begin ("CECT")deleted text end new text begin ("CICCT")new text end . It
must be in substantially the following form:

COMMON deleted text begin ELEMENTSdeleted text end new text begin INTEREST COMMUNITYnew text end CERTIFICATE
OF TITLE deleted text begin (CECT)deleted text end new text begin (CICCT)
new text end

This is the Common deleted text begin Elementsdeleted text end new text begin Interest Communitynew text end Certificate of Title for
deleted text begin Condominiumdeleted text end CIC No. ...........

State of Minnesota
)
) ss
County of
.
)

This is to certify that the new text begin units and new text end common elements in deleted text begin condominiumdeleted text end CIC No.
....... are subject to the encumbrances, liens, and interests noted by the memorials set
forth as follows:

In witness whereof, I have hereunto subscribed my name and affixed the seal of my
office, this ....... day of ......., .....

.
Registrar of Titles, in and for the
County of
.
and State of Minnesota

Subd. 3.

Tract index.

deleted text begin CECTsdeleted text end new text begin CICCTsnew text end must be maintained in the same manner as
provided for certificates of title under chapter 508 and must be indexed in the tract index
as provided in section 508.37, subdivision 1a. The names of the owners in the tract index
must be "deleted text begin unitdeleted text end owners." The description of the registered land in the tract index must be
"common deleted text begin elementsdeleted text end new text begin interestsnew text end " or deleted text begin "CECT."deleted text end new text begin "CICCT."
new text end

Subd. 4.

Unit new text begin and common elements new text end certificates.

CPTs issued for the units
described in the declarationnew text begin , and for common elements described in the declaration for
a planned community,
new text end must containdeleted text begin , immediately following the description of the unit,deleted text end
a statement in substantially the following form: "subject to encumbrances, liens, and
interests noted on deleted text begin CECTdeleted text end new text begin CICCTnew text end No. ......."

Subd. 5.

Memorials.

The condominium new text begin or planned community new text end declaration, bylaws,
any amendment to the declaration or bylaws; any lien against the common elements new text begin in a
condominium
new text end pursuant to chapter 514; any fixture filings pursuant to section 336.9-314
where the financing statement describes the common elementsnew text begin in a condominiumnew text end ; any
easement on the common elements new text begin in a condominium new text end pursuant to section 515B.3-102,
subsection (a)(9); any instrument evidencing the transfer of a special declarant right
pursuant to section 515B.3-104; and any conveyance or encumbrance of the common
elements new text begin in a condominium new text end pursuant to section 515B.3-112 must be entered as memorials
on the deleted text begin CECTdeleted text end new text begin CICCTnew text end only.new text begin The entry of a memorial on the CICCT shall have the same
effect as if the memorial were entered on the certificates of title for the units in the
common interest community and on the certificates of title for the common elements
in a planned community.
new text end

Subd. 6.

Preexisting condominiums.

new text begin (a) Except as provided in paragraph (b), new text end in
the case of a condominium existing prior to August 1, deleted text begin 2001deleted text end new text begin 2009new text end , on registered land, for
which no deleted text begin CECTdeleted text end new text begin CICCTnew text end has been issued, upon the deleted text begin filingdeleted text end new text begin recordingnew text end of a document of the
kind specified in deleted text begin section 508.351, subdivision 4deleted text end new text begin subdivision 5new text end , the registrar shall issue
a deleted text begin CECTdeleted text end new text begin CICCTnew text end , but documents filed prior to the issuance of the deleted text begin CECTdeleted text end new text begin CICCTnew text end need
not be entered as memorials on the deleted text begin CECTdeleted text end new text begin CICCTnew text end . The registrar for no additional fee
shall deleted text begin mark by the land descriptiondeleted text end new text begin enternew text end on the certificate of title for each of the units
in the condominium deleted text begin adeleted text end new text begin thenew text end statement deleted text begin in substantially the following form: "subject to
encumbrances, liens, and interests noted in CECT No. ......." and in future certificates for
each unit in the condominium insert, immediately following the description of the Unit,
a statement in substantially the following form: "subject to encumbrances, liens and
interests noted on CECT No. ........"
deleted text end new text begin specified in subdivision 4.
new text end

new text begin (b) In the case of a condominium for which a CECT has been issued pursuant
to Laws 2001, chapter 50, section 4, upon the recording of a document specified in
subdivision 5, the registrar shall cancel the CECT and issue a CICCT in lieu thereof. The
statement on the certificate of title for each of the units in the condominium regarding the
CECT shall be amended by the registrar for no additional fee to refer to the CICCT.
new text end

new text begin Subd. 7. new text end

new text begin Preexisting planned communities. new text end

new text begin In the case of a planned community,
as defined in chapter 515B, existing prior to August 1, 2009, on registered land, for which
no CICCT has been issued, upon the recording of any amendment to the declaration of
the planned community which identifies the common interest community number of the
planned community, the registrar shall issue a CICCT, but documents filed prior to the
issuance of the CICCT need not be entered as memorials on the CICCT. The registrar for
no additional fee shall enter on the certificate of title for each of the units and for the
common elements in the planned community the statement specified in subdivision 4.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective August 1, 2009.
new text end

ARTICLE 3

MISCELLANEOUS

Section 1.

Minnesota Statutes 2008, section 272.115, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

Except as otherwise provided in subdivision 5new text begin or
5a
new text end , whenever any real estate is sold for a consideration in excess of $1,000, whether
by warranty deed, quitclaim deed, contract for deed or any other method of sale, the
grantor, grantee or the legal agent of either shall file a certificate of value with the county
auditor in the county in which the property is located when the deed or other document
is presented for recording. Contract for deeds are subject to recording under section
507.235, subdivision 1. Value shall, in the case of any deed not a gift, be the amount of the
full actual consideration thereof, paid or to be paid, including the amount of any lien or
liens assumed. The items and value of personal property transferred with the real property
must be listed and deducted from the sale price. The certificate of value shall include the
classification to which the property belongs for the purpose of determining the fair market
value of the property, and shall include any proposed change in use of the property known
to the person filing the certificate that could change the classification of the property. The
certificate shall include financing terms and conditions of the sale which are necessary
to determine the actual, present value of the sale price for purposes of the sales ratio
study. If the property is being acquired as part of a like-kind exchange under section
1031 of the Internal Revenue Code of 1986, as amended through December 31, 2006,
that must be indicated on the certificate. The commissioner of revenue shall promulgate
administrative rules specifying the financing terms and conditions which must be included
on the certificate. The certificate of value must include the Social Security number or the
federal employer identification number of the grantors and grantees. However, a married
person who is not an owner of record and who is signing a conveyance instrument along
with the person's spouse solely to release and convey their marital interest, if any, in the
real property being conveyed is not a grantor for the purpose of the preceding sentence. A
statement in the deed that is substantially in the following form is sufficient to allow the
county auditor to accept a certificate for filing without the Social Security number of the
named spouse: "(Name) claims no ownership interest in the real property being conveyed
and is executing this instrument solely to release and convey a marital interest, if any, in
that real property." The identification numbers of the grantors and grantees are private
data on individuals or nonpublic data as defined in section 13.02, subdivisions 9 and 12,
but, notwithstanding that section, the private or nonpublic data may be disclosed to the
commissioner of revenue for purposes of tax administration. The information required to
be shown on the certificate of value is limited to the information required as of the date of
the acknowledgment on the deed or other document to be recorded.

Sec. 2.

Minnesota Statutes 2008, section 272.115, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Designated transfer exemption. new text end

new text begin A certificate of real estate value is
not required when the transfer is made by an instrument which qualifies as a designated
transfer as defined in section 287.20, subdivision 3a, and the instrument indicates on the
first page or the signature page that the conveyance is a designated transfer pursuant to
section 287.20, subdivision 3a.
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. 3.

Minnesota Statutes 2008, section 435.37, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Procedure. new text end

new text begin For the purposes of this section, the proceedings of the city
council shall be in accordance with the procedures set forth in section 164.07, except that
references in section 164.07 to "town," "town clerk," "town board," or "town costs" shall
be construed to mean references to "city," "city clerk," "city council," or "city costs,"
respectively, or equivalent terms, as required by the context.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies only to cartway petitions filed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2008, section 523.17, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Real property transactions on behalf of entities. new text end

new text begin When the principal
under a power of attorney in a real property transaction is a corporation, partnership,
limited liability company, or trust, the provisions of section 507.24, subdivision 2, 508.48
or 508A.48, as appropriate, and of section 523.18 shall apply, and an affidavit under
this section shall not be required.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2009, and applies to
actions taken and signatures made by attorneys-in-fact on, after, or before that date.
new text end