Office of the Revisor of Statutes
Minnesota Session Laws - 2003, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 5-H.F.No. 112
An act relating to real property; making various
technical, clarifying, and conforming changes relating
to registration of title, liens, and mortgages;
amending Minnesota Statutes 2002, sections 481.13,
subdivision 3; 508.08; 508.35; 508.52; 508.67,
subdivision 1; 508.70, subdivisions 1, 2, by adding
subdivisions; 508A.08; 508A.35; 508A.52; 508A.70;
559.17, subdivision 3; proposing coding for new law in
Minnesota Statutes, chapter 507.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
TORRENS PROVISIONS
Section 1. Minnesota Statutes 2002, section 508.08, is
amended to read:
508.08 [APPLICATION, CONTENTS LAND INCLUDED.]
Subdivision 1. [ADJACENT LAND SEPARATE TRACTS; COMMON
OWNER.] Any number of adjoining tracts of land in the same
county and owned by the same person and in the same right, or
any number of tracts of land in the same county having the same
chain of title, and belonging to the same person, may be
included in one application. When approved by the examiner of
titles, nonadjoining tracts of land owned by the same person or
persons in the same right having different chains of title may
be included in one application.
Subd. 2. [ADJACENT LAND; COMMON TITLE DEFECT.] When
approved by the examiner of titles, Owners of adjacent separate
tracts of land which have a common title defect may join in one
application to register the title to their individual tracts.
The application must list separately all of the information
required by section 508.06 for the owner or owners of each of
the tracts included in the application.
Sec. 2. Minnesota Statutes 2002, section 508.35, is
amended to read:
508.35 [FORM OF CERTIFICATE.]
The certificate of title shall contain the name and
residence of the owner, a description of the land, and of the
estate of the owner therein, and shall by memorial contain a
description of all encumbrances, liens, and interests in which
the estate of the owner is subject. It shall state whether the
owner is 18 years of age or older and, if under any legal
incapacity, the nature of it. It shall also state whether or
not the owner is married and, if married, the name of the
spouse. In case the land is held in trust or subject to any
condition or limitation, it shall state the nature and character
of it. It shall be substantially in the following form:
CERTIFICATE OF TITLE
First certificate of title, pursuant to the order of the
district court, ............... judicial district, county of
................., and state of Minnesota, date................,
.......
REGISTRATION
State of Minnesota )
) ss.
County of .................... )
This is to certify that ..............., residing at whose
address is ..............., in the .................... of
...................., county of ...................., and state
of ...................., is now the owner of an estate,
......................... of and in the following described land
situated in the county of ............... and state of
Minnesota, .........................
Subject to the encumbrances, liens, and interest noted by
the memorial underwritten or endorsed hereon; and subject to the
following rights or encumbrances subsisting, as provided in Laws
1905, chapter 305, section 24, namely:
(1) Liens, claims, or rights arising under the laws or the
Constitution of the United States, which the statutes of this
state cannot require to appear of record;
(2) Any real property tax or special assessment;
(3) Any lease for a period not exceeding three years, when
there is actual occupation of the premises under the lease;
(4) All rights in public highways upon the land;
(5) Such right of appeal or right to appear and contest the
application as is allowed by law;
(6) The rights of any person in possession under deed or
contract for deed from the owner of the certificate of title;
(7) Any outstanding mechanics lien rights which may exist
under sections 514.01 to 514.17.
That the said .......................... (is/is not) of the
age of 18 years or older, is under no legal incapacity except
......................... and is (single/married to
.........................), who (is/is not) of the age of 18
years or older and is under no legal incapacity except
.........................
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.
All certificates issued subsequent to the first certificate
of title shall be in like form except that they shall be
entitled "Transfer from number (here give the number of the next
previous certificate relating to the same land)," and shall also
contain the words "Originally registered (date, volume, and page
of registration)."
Sec. 3. Minnesota Statutes 2002, section 508.52, is
amended to read:
508.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF NEW
CERTIFICATE.]
An owner of registered land who desires to convey the land,
or a portion thereof, in fee, shall execute a deed of
conveyance, and file the deed with the registrar. The registrar
shall require an affidavit by the grantee, or some person in the
grantee's behalf, which affidavit shall set forth the name and
residence of the grantee, whether the grantee is 18 years of age
or older, and whether the grantee is or is not under legal
incapacity, whether or not married, and, if married, the name of
the spouse. The deed of conveyance shall be filed and endorsed
with the number and place of registration of the certificate of
title. Before canceling the outstanding certificate of title
the registrar shall show by memorial thereon the registration of
the deed on the basis of which it is canceled. The
encumbrances, claims, or interests adverse to the title of the
registered owner shall be stated upon the new certificate,
except so far as they may be simultaneously released or
discharged. The certificate of title shall be marked "Canceled"
by the registrar, who shall enter in the register a new
certificate of title to the grantee and prepare and deliver to
the grantee a copy of the new certificate of title. If a deed
in fee is for a portion of the land described in a certificate
of title, the memorial of the deed entered by the registrar
shall include the legal description contained in the deed and
the registrar shall enter a new certificate of title to the
grantee for the portion of the land conveyed and, except as
otherwise provided in this section, issue a residue certificate
of title to the grantor for the portion of the land not
conveyed. The registrar shall prepare and deliver to each of
the parties a copy of their respective certificates of title.
In lieu of canceling the grantor's certificate of title and
issuing a residue certificate to the grantor for the portion of
the land not conveyed, the registrar may if the grantor's deed
does not divide a parcel of unplatted land, and in the absence
of a request to the contrary by the registered owner, mark by
the land description on the certificate of title "Part of land
conveyed, see memorials." The fee for a residue certificate of
title shall be paid to the registrar only when the grantor's
certificate of title is canceled after the conveyance by the
grantor of a portion of the land described in the grantor's
certificate of title. When two or more successive conveyances
of the same property are filed for registration on the same day
the registrar may enter a certificate in favor of the grantee or
grantees in the last of the successive conveyances, and the
memorial of the previous deed or deeds entered on the prior
certificate of title shall have the same force and effect as
though the prior certificate of title had been entered in favor
of the grantee or grantees in the earlier deed or deeds in the
successive conveyances. The fees for the registration of the
earlier deed or deeds shall be the same as the fees prescribed
for the entry of memorials. The registrar of titles, with the
consent of the transferee, may mark "See memorials for new
owner(s)" by the names of the registered owners on the
certificate of title and also add to the memorial of the
transferring conveyance a statement that the memorial shall
serve in lieu of a new certificate of title in favor of the
grantee or grantees therein noted and may refrain from canceling
the certificate of title until the time it is canceled by a
subsequent transfer, and the memorial showing such transfer of
title shall have the same effect as the entry of a new
certificate of title for the land described in the certificate
of title; the fee for the registration of a conveyance without
cancellation of the certificate of title shall be the same as
the fee prescribed for the entry of a memorial.
Sec. 4. Minnesota Statutes 2002, section 508.67,
subdivision 1, is amended to read:
Subdivision 1. [COURT ORDER.] Upon the expiration of the
time allowed by law for redemption of registered land, after it
has been set off, or sold on execution, or taken or sold for the
enforcement of any lien, including a tax lien, or charge of any
nature, the person who claims under such execution, or under any
certificate, deed, or other instrument made in the course of
proceedings to enforce such execution or lien, may apply to the
court for an order directing the entry of a new certificate to
that person, and upon such notice as the court may require, the
petition shall be heard and a proper order rendered therein. In
case the claim of title is based upon a tax certificate, tax or
assessment deed, the petition shall be filed with the court
administrator, who shall docket the same in the land
registration docket. The petition shall be referred to the
examiner of titles for examination and report in like manner as
herein provided for the reference of initial applications for
registration. The summons shall be issued in the form and
served in the manner as in initial applications. The petition
shall be heard by the court and the petitioner shall be required
to show affirmatively that all the requirements of the statute
to entitle the petitioner to register the title have been
complied with. The order shall show the condition of the title
to such land and who is the owner thereof. It shall provide, if
the petitioner is found to be the owner, for the cancellation of
the outstanding certificate of title and the registrar shall
issue a new certificate of title for the land in lieu and in
place of the outstanding certificate upon presentation to the
registrar of a duly certified copy of such order, according to
its terms.
Sec. 5. Minnesota Statutes 2002, section 508.70,
subdivision 1, is amended to read:
Subdivision 1. [PROCEDURE; COSTS.] (a) Any person claiming
any right, title, or interest in registered land adverse to the
registered owner arising subsequent to or created after the date
of the original registration, which does not appear on the
certificate of title, may, if no other provision is made in this
chapter for there is some impediment to registering the same
claimed interest, file with the registrar of titles a verified
statement in writing setting forth fully claim of unregistered
interest, made by or at the instance of the claimant, stating:
(1) the alleged right or interest, and;
(2) how or from whom it was acquired, and a reference to
the volume and page of;
(3) the reason the interest cannot be registered;
(4) the number of the affected certificate of title of the
registered owner, together with;
(5) a description of the affected land, the adverse
claimant's residence, and designating;
(6) a place at which all notices may be served upon the
adverse claimant. Such statement; and
(7) that the claim is not made for the purpose of avoiding
the payment of mortgage registry tax under section 287.01 or
deed tax under section 287.21, or avoiding obtaining the
auditor's statement on an instrument under section 272.12.
(b) If the claimant claims an interest in an unregistered
mortgage that is subject to the imposition of mortgage registry
tax upon recording, the notice must contain evidence
satisfactory to the registrar of titles that the mortgage
registry tax has been paid. A copy of the claim must be mailed
to the persons whose registered interests are affected by the
claim at their addresses shown on the certificate of title. An
affidavit stating the names and addresses of the persons to whom
copies of the claim were mailed must be attached to the claim.
The claim with attached affidavit regarding mailing shall be
entitled to registration as an adverse claim, and the court,
upon the petition of any party in interest, shall grant a speedy
hearing upon the validity of such adverse claim and enter
such decision and decree therein order as justice and equity may
require. If the court determines that the adverse claim is
adjudged to be invalid, the registration thereof shall be
canceled it shall order the cancellation of the memorial of the
claim. The court may, in any case, award such costs and
damages, including a reasonable attorney's fee, as it may deem
just.
Sec. 6. Minnesota Statutes 2002, section 508.70,
subdivision 2, is amended to read:
Subd. 2. [TEN-YEAR LIMIT UNLESS NEW FILING.] On and after
March 1, 1995, no adverse claim statement, or claim of
unregistered interest, shall be notice, either actual or
constructive, of any matters referred to in the statement after
it has been of record for ten years unless a new statement or
claim realleging the facts is filed within the ten-year period
upon the affected certificate of title or unless a certified
copy of a petition in a subsequent proceeding or a notice of lis
pendens to adjudicate the matters alleged in the statement or
claim is filed within the ten-year period. The registrar of
titles shall not carry forward to new certificates of title the
memorial of any statement of adverse claim, or of any claim of
unregistered interest, that has terminated as notice pursuant to
this subdivision.
Sec. 7. Minnesota Statutes 2002, section 508.70, is
amended by adding a subdivision to read:
Subd. 4. [DEMAND FOR DISCHARGE.] A person whose registered
interest is affected by a statement of adverse claim filed
before August 1, 2003, or by a claim of unregistered interest,
or the person's agent, may file a demand for discharge of the
claim of unregistered interest. A copy of the demand must be
mailed to the claimant at the address stated on the claim. An
affidavit stating the name and address of the person to whom a
copy of the demand was mailed must be attached to the demand.
The demand must be substantially in the following form:
"DEMAND FOR DISCHARGE OF CLAIM OF UNREGISTERED INTEREST
Date: ..........................
................................................................
..................................., having a registered
interest in (name of person having a registered interest)
certificate of title No. ............., hereby demands that
..............................................................
(name of claimant)
either (1) discharge the claimant's claim of unregistered
interest regarding the certificate of title, or (2) petition the
court for a determination of the validity of the claim pursuant
to Minnesota Statutes, section 508.70, subdivision 1. If the
claimant fails to do so the claim will terminate and be of no
effect 90 days after this demand for discharge is filed with the
registrar of titles of .................... county, Minnesota.
..........................................................
(signature of person having registered interest or agent)"
Unless the claimant has petitioned the court as provided in
subdivision 1 and filed with the registrar of titles a certified
copy of the petition, the claim shall terminate and be of no
effect 90 days after the filing of a demand for discharge with
attached affidavit regarding mailing. The registrar of titles
shall not carry forward to new certificates of title the
memorial of any claim that has terminated or has been discharged
pursuant to this subdivision.
Sec. 8. Minnesota Statutes 2002, section 508.70, is
amended by adding a subdivision to read:
Subd. 5. [PRIORITY OF CLAIM.] The registration of a claim
of unregistered interest has the same effect as to priority as
the registration of any instrument under this chapter. If the
instrument, under which the claim is made, is filed before the
claim has been terminated or discharged, the instrument shall
have the same priority as the claim and the registrar of titles
shall include in the memorial of the instrument a reference to
the document number of the claim.
Sec. 9. Minnesota Statutes 2002, section 508A.08, is
amended to read:
508A.08 [APPLICATION; CONTENTS LAND INCLUDED.]
Subdivision 1. [ADJACENT LAND SEPARATE TRACTS; COMMON
OWNER.] Any number of adjoining tracts of land in the same
county and owned by the same person and in the same right, or
any number of tracts of land in the same county having the same
chain of title, and belonging to the same person may be included
in one application. When approved by the examiner of titles,
nonadjoining tracts of land owned by the same person or persons
in the same right having different chains of title may be
included in one application.
Subd. 2. [ADJACENT LAND; DIFFERENT OWNERS.] When approved
by the examiner of titles, Owners of two or more
adjacent separate tracts of land in the same county may join in
one application to register the title to their individual tracts.
The application must list separately all of the information
required by section 508A.06 for the owner or owners of each of
the tracts included in the application.
Sec. 10. Minnesota Statutes 2002, section 508A.35, is
amended to read:
508A.35 [FORMS OF CPT.]
The CPT shall contain the name and residence of the owner,
a description of the land and of the estate of the owner, and
shall by memorial contain a description of all encumbrances,
liens, and interests to which the estate of the owner is
subject. It shall state whether the owner is 18 years of age or
older and if under any legal incapacity, the nature of it. It
shall also state whether or not the owner is married and if
married, the name of the spouse. In case the land is held in
trust or subject to any condition or limitation, it shall state
the nature and character of it. It shall be in substantially
the following form:
CERTIFICATE OF POSSESSORY TITLE (CPT)
First Certificate of Possessory Title, pursuant to the
Directive of the Examiner of Titles, County of ..........., and
State of Minnesota, date .................., .....
Registration of Possessory Title
State of Minnesota )
)ss
County of ...................)
This is to certify that ........................, of the
whose address is .................. in the ........... of
................ County of ............., and State of
......................, is now the owner of a fee simple estate
of and in the following described land situation situated in the
county of ....... and state of Minnesota,
........................................ Subject to the
encumbrances, liens, and interests noted by the memorial
underwritten or endorsed hereon; and subject to the following
rights or encumbrances subsisting, namely:
(1) Liens, claims, or rights arising under the laws or the
Constitution of the United States, which the statutes of this
state cannot require to appear of record;
(2) Any real property tax or special assessment;
(3) Any lease for a period not exceeding three years, when
there is actual occupation of the premises under the lease;
(4) All rights in public highways upon the land;
(5) The rights of any person in possession under deed or
contract for deed from the owner of the CPT;
(6) Any claims that may be made pursuant to section 508A.17
within five years from the date of the first CPT; and
(7) Any outstanding mechanics lien rights which may exist
under sections 514.01 to 514.17.
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.
All CPTs issued subsequent to the first shall be in like
form except that they shall be entitled "Transfer from number
(here give the number of the next previous CPT relating to the
same land)," and shall also contain the words "Originally
registered (date, volume, and page of registration)."
CPTs shall be indexed and maintained in the same manner as
provided for certificates of title under chapter 508.
Sec. 11. Minnesota Statutes 2002, section 508A.52, is
amended to read:
508A.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF
NEW CPT.]
An owner of land registered under sections 508A.01 to
508A.85 who desires to convey the land, or a portion of it, in
fee, shall execute a deed of conveyance, and file the deed with
the registrar. The registrar shall require an affidavit by the
grantee, or some person in the grantee's behalf, which affidavit
shall set forth the name and residence of the grantee, whether
the grantee is 18 years of age or older, and whether the grantee
is or is not under legal incapacity, whether or not married, and
if married, the name of the spouse. The deed of conveyance
shall be filed and endorsed with the number and place of
registration of the CPT. Before canceling the outstanding CPT,
the registrar shall show by memorial on it the registration of
the deed on the basis of which it is canceled. The
encumbrances, claims, or interests adverse to the title of the
registered owner shall be stated upon the new CPT, except so far
as they may be simultaneously released or discharged. The CPT
shall be marked "Canceled" by the registrar, who shall enter in
the register a new CPT to the grantee, and prepare and deliver
to the grantee a copy of the new CPT. If a deed in fee is for a
portion of the land described in a CPT, the memorial of the deed
entered by the registrar shall include the legal description
contained in the deed and the registrar shall enter a new CPT to
the grantee for the portion of the land conveyed and, except as
otherwise provided in this section, issue a residue CPT to the
grantor for the portion of the land not conveyed. The registrar
shall prepare and deliver to each of the parties a copy of their
respective CPTs. In lieu of canceling the grantor's CPT and
issuing a residue CPT to the grantor for the portion of the land
not conveyed, the registrar may if the grantor's deed does not
divide a parcel of unplatted land, and in the absence of a
request to the contrary by the registered owner, mark by the
land description on the CPT "Part of land conveyed, see
memorials." The fee for a residue CPT shall be paid to the
registrar only when the grantor's CPT is canceled after the
conveyance by the grantor of a portion of the land described in
the grantor's CPT. When two or more successive conveyances of
the same property are filed for registration on the same day the
registrar may enter a CPT in favor of the grantee or grantees in
the last of the successive conveyances, and the memorial of the
previous deed or deeds entered on the prior CPT shall have the
same force and effect as though the prior CPT had been entered
in favor of the grantee or grantees in the earlier deed or deeds
in the successive conveyances. The fees for the registration of
the earlier deed or deeds shall be the same as the fees
prescribed for the entry of memorials. The registrar of titles,
with the consent of the transferee, may mark "See memorials for
new owner(s)" by the names of the registered owners on the CPT
and also add to the memorial of the transferring conveyance a
statement that the memorial shall serve in lieu of a new CPT in
favor of the grantee or grantees noted in it and may refrain
from canceling the CPT until the time it is canceled by a
subsequent transfer, and the memorial showing the transfer of
title shall have the same effect as the entry of a new CPT for
the land described in the CPT. The fee for the registration of
a conveyance without cancellation of the CPT shall be the same
as the fee prescribed for the entry of a memorial.
Sec. 12. Minnesota Statutes 2002, section 508A.70, is
amended to read:
508A.70 [SUBSEQUENT ADVERSE CLAIM, HOW REGISTERED; COSTS.]
Subdivision 1. [PROCEDURE; COSTS.] (a) Any person claiming
any right, title, or interest in land registered under sections
508A.01 to 508A.85 adverse to the registered owner of it arising
subsequent to or created after the date of the first CPT, may,
if no other provision is made in sections 508A.01 to 508A.85 for
there is some impediment to registering the same claimed
interest, file with the registrar of titles a verified statement
in writing setting forth fully claim of unregistered interest,
made by or at the instance of the claimant, stating:
(1) the alleged right or interest, and;
(2) how or from whom it was acquired, and a reference to
the volume and page of;
(3) the reason the interest cannot be registered;
(4) the number of the affected CPT of the registered owner,
together with;
(5) a description of the affected land, the adverse
claimant's residence, and designating;
(6) a place at which all notices may be served upon
the adverse claimant. The statement; and
(7) that the claim is not made for the purpose of avoiding
the payment of mortgage registry tax under section 287.01 or
deed tax under section 287.21, or avoiding obtaining the
auditor's statement on an instrument under section 272.12.
(b) If the claimant claims an interest in an unregistered
mortgage that is subject to the imposition of mortgage registry
tax upon recording, the notice must contain evidence
satisfactory to the registrar of titles that the mortgage
registry tax has been paid. A copy of the claim must be mailed
to the persons whose registered interests are affected by the
claim at their addresses shown on the CPT. An affidavit stating
the names and addresses of the persons to whom copies of the
claim were mailed must be attached to the claim. The claim with
attached affidavit regarding mailing shall be entitled to
registration as an adverse claim, and the court, upon the
petition of any party in interest, shall grant a speedy hearing
upon the validity of the adverse claim and enter a decision and
decree therein an order as justice and equity may require.
If the court determines that the adverse claim is adjudged to be
invalid, the registration of it shall be canceled it shall order
the cancellation of the memorial of the claim. The court may,
in any case, award costs and damages, including a reasonable
attorney's fee, as it may deem just.
Subd. 2. [DEMAND FOR DISCHARGE.] A person whose registered
interest is affected by a statement of adverse claim filed
before August 1, 2003, or by a claim of unregistered interest,
or the person's agent, may file a demand for discharge of the
claim of unregistered interest. A copy of the demand must be
mailed to the claimant at the address stated on the claim. An
affidavit stating the name and address of the person to whom a
copy of the demand was mailed must be attached to the demand.
The demand must be substantially in the following form: "DEMAND
FOR DISCHARGE OF CLAIM OF UNREGISTERED INTEREST.
Date: .....................
................................................, having a
registered interest in (name of person having a registered
interest) Certificate of Possessory Title (CPT) No. .......,
hereby demands that ................................. (name of
claimant) either (1) discharge the claimant's claim of
unregistered interest regarding the CPT, or (2) petition the
court for a determination of the validity of the claim pursuant
to Minnesota Statutes, section 508A.70, subdivision 1. If the
claimant fails to do so the claim will terminate and be of no
effect 90 days after this demand for discharge is filed with the
registrar of titles of ............... county, Minnesota.
......................................(signature of person
having registered interest or agent)"
Unless the claimant has petitioned the court as provided in
subdivision 1 and filed with the registrar of titles a certified
copy of the petition, the claim shall terminate and be of no
effect 90 days after the filing of a demand for discharge with
attached affidavit regarding mailing. The registrar of titles
shall not carry forward to new CPTs the memorial of any claim
that has terminated or has been discharged pursuant to this
subdivision.
Subd. 3. [PRIORITY OF CLAIM.] The registration of a claim
of unregistered interest has the same effect as to priority as
the registration of any instrument under this chapter. If the
instrument under which the claim is made is filed before the
claim has been terminated or discharged, the instrument shall
have the same priority as the claim and the registrar of titles
shall include in the memorial of the instrument a reference to
the document number of the claim.
Sec. 13. [EFFECTIVE DATE.]
This article is effective August 1, 2003.
ARTICLE 2
MISCELLANEOUS PROVISIONS
Section 1. Minnesota Statutes 2002, section 481.13,
subdivision 3, is amended to read:
Subd. 3. [ONE-YEAR LIMITATION.] No lien against real
property shall be enforced unless the lienholder, by filing
either a complaint or an answer with the court administrator,
asserts a lien within one year after the filing of the notice of
intention to claim a lien, unless within the one-year time
period the owner has agreed to a longer time period to assert
the lien. This agreement must be in a written instrument signed
by the owner containing the legal description of the affected
real property and a description of the recording information of
the filed lien and the written instrument must be recorded in
the same office as the lien within one year after the filing of
the notice of intention to claim a lien. In no event may the
lien be asserted more than three years after filing. No person
is bound by any judgment in the action unless made a party to
the action within the time limit. The absence from the record
in the office of the county recorder or the registrar of titles,
where appropriate, of a notice of lis pendens of an action after
the expiration of the time limit in which the lien could be so
asserted is conclusive evidence that the lien may no longer be
enforced as to a bona fide purchaser, mortgagee, or encumbrancer
without notice. In the case of registered land, the registrar
of titles shall refrain from carrying forward to new
certificates of title the memorials of lien statements when no
notice of lis pendens has been registered within the time limit.
Sec. 2. [507.402] [DISCHARGE OF MORTGAGE FROM CONTRACT FOR
DEED SELLER.]
A mortgage that encumbers the seller's interest in a
contract for deed ceases to encumber real property described in
a deed given pursuant to the contract if the purchaser has not
joined in or consented to the mortgage in a recorded instrument
and the mortgage is recorded subsequent to the recording of the
contract.
Sec. 3. Minnesota Statutes 2002, section 559.17,
subdivision 3, is amended to read:
Subd. 3. [EXPIRATION, SATISFACTION, RELEASE, AND
ASSIGNMENT.] (a) An assignment of rents and profits under this
section, whether in the mortgage or in a separate instrument,
shall expire:
(1) with respect to the rents and profits from all of the
mortgaged property, when an action or proceeding to foreclose
the mortgage is barred by section 541.03, or upon recording in
the office of the county recorder or filing in the office of the
registrar of titles of the county where the mortgaged property
is located, of a satisfaction of the mortgage or a certificate
of release complying with section 507.401 in lieu of a
satisfaction of the mortgage; or
(2) with respect to the rents and profits from a portion of
the mortgaged property, upon recording in the office of the
county recorder or filing in the office of the registrar of
titles of the county where that portion of the mortgaged
property is located, of a release of that portion of the
mortgaged property from the lien of the mortgage, or a
certificate of release complying with section 507.401 in lieu of
a release of that portion of the mortgaged property.
No separate reassignment of the rents and profits or
satisfaction or release of the assignment is required.
(b) An assignment of a mortgage, whether or not the
mortgage mentions an assignment of rents and profits, is
sufficient to assign both the mortgage and the assignment of
rents and profits permitted by this subdivision which secures
the debt secured by the mortgage, and no separate assignment of
the assignment of rents and profits shall be required.
Sec. 4. [EFFECTIVE DATE.]
(a) Section 1 is effective the day following final
enactment and applies to all liens filed on or after August 1,
2002.
(b) Sections 2 and 3 apply to all mortgages and assignments
of rents and profits created before, on, or after August 1, 2003.
Presented to the governor March 27, 2003
Signed by the governor March 31, 2003, 10:30 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes