Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 566-H.F.No. 2134 
           An act relating to real property; requiring 
          recordation of transfers of contracts for deed; 
          providing penalties; amending Minnesota Statutes 1986, 
          section 507.235. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 507.235, is 
amended to read:  
    Subdivision 1.  [FILING REQUIRED.] All contracts for deed 
executed on or after January 1, 1984, shall be recorded by the 
vendee within six four months in the office of the county 
recorder or registrar of titles in the county in which the land 
is situated located.  Any other person may record the contract.  
    A person receiving an assignment of a vendee's interest in 
a contract for deed that is transferred on or after January 1, 
1989, shall record the assignment within four months of the date 
of transfer in the office of the county recorder or registrar of 
titles in the county in which the land is located.  For the 
purpose of this section, "assignment" means an assignment or 
other transfer of all or part of a vendee's interest in a 
contract for deed.  Any other person may record an assignment.  
    Subd. 2.  [PENALTY FOR FAILURE TO FILE.] (a) If a contract 
for deed is not filed A vendee who fails to record a contract 
for deed, as required by subdivision 1, is subject to a civil 
penalty, payable under subdivision 5, is imposed equal to 
0.15 two percent of the principal amount of the contract debt.  
Payments of the penalty shall be deposited in the general fund 
of the county.  The penalty shall be may be enforced as a lien 
against the vendee's interest in the property and shall have the 
same priority and be collected in the same manner provided for 
real property taxes.  
    (b) A person receiving an assignment of a vendee's interest 
in a contract for deed who fails to record the assignment as 
required by subdivision 1 is subject to a civil penalty, payable 
under subdivision 5, equal to two percent of the original 
principal amount of the contract debt.  Payments of the penalty 
must be deposited in the general fund of the county.  The 
penalty may be enforced as a lien against the vendee's interest 
in the property. 
    Subd. 3.  [DISCLOSURE.] (a) Whenever a contract for deed or 
assignment of a vendee's interest in a contract for deed is not 
recorded and a city or county attorney requires information 
concerning the contract for deed or assignment of contract for 
deed for the performance of the attorney's duties on behalf of 
the city or county, the city or county attorney may request 
disclosure under paragraph (b).  
    (b) A vendor, vendee, or current or former holder of a 
vendor's or vendee's interest in a contract for deed, a person 
who collects payments made under a contract for deed, or a 
person in possession of the property subject to a contract for 
deed shall, on written request that includes a copy of this 
section made by the city or county attorney of the city or 
county in which the property is located, disclose all 
information known to the person relating to: 
    (1) the identity and residence or office mailing address of 
the parties to the contract for deed; and 
    (2) any assignments of the contract for deed.  
    The disclosure also must include any legible, true and 
correct copies of each contract for deed and assignment 
documents in the possession of or reasonably available to the 
person required to disclose.  
    The information must be disclosed in writing to the city or 
county attorney within 14 days of receipt of the written request.
    Subd. 4.  [CRIMINAL PENALTY.] A person who is required to 
record a contract for deed or an assignment of a contract for 
deed under subdivision 1 and who fails to record the contract 
for deed or assignment within 14 days of receipt of the notice 
required under subdivision 5 is guilty of a misdemeanor.  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 
prosecute criminal violations of this section.  This criminal 
liability is in addition to civil liability imposed under this 
section. 
    Subd. 5.  [CIVIL ENFORCEMENT.] (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, or an action under 
subdivision 4, 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. 
    Approved April 20, 1988