Minnesota Session Laws - 2004, Regular Session

                            CHAPTER 234-H.F.No. 2419 
                  An act relating to real property; providing for 
                  certain purchase money mortgages; providing for 
                  certain mortgage foreclosures; amending Minnesota 
                  Statutes 2002, sections 507.02; 507.03; 580.04; 
                  580.24; 580.25. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 507.02, is 
        amended to read: 
           507.02 [CONVEYANCES BY SPOUSES; POWERS OF ATTORNEY.] 
           If the owner is married, no conveyance of the homestead, 
        except a mortgage for purchase money unpaid thereon under 
        section 507.03, a conveyance between spouses pursuant to section 
        500.19, subdivision 4, or a severance of a joint tenancy 
        pursuant to section 500.19, subdivision 5, shall be valid 
        without the signatures of both spouses.  A spouse's signature 
        may be made by the spouse's duly appointed attorney-in-fact. 
           A husband and wife, by their joint deed, may convey the 
        real estate of either.  A spouse, by separate deed, may convey 
        any real estate owned by that spouse, except the homestead, 
        subject to the rights of the other spouse therein; and either 
        spouse may, by separate conveyance, relinquish all rights in the 
        real estate so conveyed by the other spouse.  Subject to the 
        foregoing provisions, either spouse may separately appoint an 
        attorney-in-fact to sell or convey any real estate owned by that 
        spouse, or join in any conveyance made by or for the other 
        spouse.  Use of a power of attorney is subject to section 
        518.58, subdivision 1a.  A minor spouse has legal capacity to 
        join in a conveyance of real estate owned by the other spouse, 
        so long as the minor spouse is not incapacitated because of some 
        reason other than that spouse's minor age. 
           Sec. 2.  Minnesota Statutes 2002, section 507.03, is 
        amended to read: 
           507.03 [PURCHASE-MONEY MORTGAGE; NONJOINDER OF SPOUSE.] 
           When a married individual purchases real property during 
        marriage and mortgages the real property to secure the payment 
        of the purchase price or any portion of it, the other spouse 
        shall not be entitled to any inchoate, contingent, or marital 
        property right or interest in the real property as against the 
        mortgagee or those claiming under the mortgagee even though the 
        other spouse did not join in the mortgage.  A statement in the 
        mortgage to the effect that the mortgage is a purchase money 
        mortgage constitutes prima facie evidence of that fact. 
           If any portion of the money secured by the mortgage is used 
        for the payment of the purchase price of the real property or 
        any portion of it, the entire mortgage debt shall be deemed 
        purchase money within the meaning of this section, except that 
        any money used to pay off the balance owing under a contract for 
        deed under which the purchaser has the right to possession of 
        the property shall not be deemed purchase money under this 
        section. 
           This section applies to every purchase-money mortgage 
        regardless of when it was granted or created, except that this 
        section does not affect an action or proceeding involving the 
        validity or enforceability of a purchase money mortgage if: 
           (1) the action or proceeding is pending as of August 1, 
        2004, or is commenced before August 1, 2005; and 
           (2) a notice of the pendency of the action or proceeding is 
        recorded or filed before August 1, 2005, in the office of the 
        county recorder of registrar of titles of the county to which 
        the property affected by the action or proceeding is located. 
           Sec. 3.  Minnesota Statutes 2002, section 580.04, is 
        amended to read: 
           580.04 [REQUISITES OF NOTICE.] 
           Each notice shall specify: 
           (1) the name of the mortgagor and of, the mortgagee, and of 
        the each assignee of the mortgage, if any, and the original or 
        maximum principal amount secured by said the mortgage; 
           (2) the date of the mortgage, and when and where recorded, 
        except where the mortgage is upon registered land, in which case 
        the notice shall state that fact, and when and where registered; 
           (3) the amount claimed to be due thereon, and taxes, if 
        any, paid by the mortgagee at on the mortgage on the date of the 
        notice; 
           (4) a description of the mortgaged premises, conforming 
        substantially to that contained in the mortgage; 
           (5) the time and place of sale; 
           (6) the time allowed by law for redemption by the 
        mortgagor, the mortgagor's personal representatives or assigns; 
        and 
           (7) if the party foreclosing the mortgage desires to 
        preserve the right to reduce the redemption period under section 
        582.032 after the first publication of the notice, the notice 
        must also state in capital letters:  "THE TIME ALLOWED BY LAW 
        FOR REDEMPTION BY THE MORTGAGOR, THE MORTGAGOR'S PERSONAL 
        REPRESENTATIVES OR ASSIGNS, MAY BE REDUCED TO FIVE WEEKS IF A 
        JUDICIAL ORDER IS ENTERED UNDER MINNESOTA STATUTES, SECTION 
        582.032, DETERMINING, AMONG OTHER THINGS, THAT THE MORTGAGED 
        PREMISES ARE IMPROVED WITH A RESIDENTIAL DWELLING OF LESS THAN 
        FIVE UNITS, ARE NOT PROPERTY USED IN AGRICULTURAL PRODUCTION, 
        AND ARE ABANDONED." 
           Sec. 4.  Minnesota Statutes 2002, section 580.24, is 
        amended to read: 
           580.24 [REDEMPTION BY CREDITOR.] 
           (a) If no such redemption be is made by the mortgagor, the 
        mortgagor's personal representatives or assigns, the most senior 
        creditor having a legal or equitable lien, legal or equitable, 
        upon the mortgaged premises, or some part thereof of it, 
        subsequent to the foreclosed mortgage, may redeem within seven 
        days after the expiration of the redemption period determined 
        under section 580.23 or 582.032, whichever is applicable; and 
        each subsequent creditor having a lien may redeem, in 
        succession, according to the order of priority of their 
        respective liens, within seven days after the time allowed the 
        prior lienholder, respectively, may redeem by paying the 
        amount aforesaid and all liens prior to the lienholder's own 
        held by the person from whom redemption is made; provided 
        that required under this section.  However, no creditor shall be 
        is entitled to redeem unless, within the period allowed for 
        redemption by the mortgagor, the creditor file: 
           (1) files for record with each county recorder and 
        registrar of titles where the foreclosed mortgage is recorded a 
        notice of the creditor's intention to redeem with the county 
        recorder or registrar of titles of each county where the 
        mortgage is recorded; 
           (2) files for record in each office where the notice is 
        filed all documents necessary to create the lien on the 
        mortgaged premises and to evidence the creditor's ownership of 
        the lien; and 
           (3) after complying with clauses (1) and (2), delivers to 
        the sheriff who conducted the foreclosure sale or the sheriff's 
        successor in office a copy of each of the documents required to 
        be filed under clauses (1) and (2), with the office, date and 
        time of filing for record stated on the first page of each 
        document.  
           The sheriff shall maintain for public inspection all 
        documents delivered to the sheriff and shall note the date of 
        delivery on each document.  The sheriff may charge a fee of $100 
        for the documents delivered to the sheriff relating to each 
        lien.  The sheriff shall maintain copies of documents delivered 
        to the sheriff for a period of six months after the end of the 
        mortgagor's redemption period.  
           (b) Saturdays, Sundays, legal holidays, and the first day 
        following the expiration of the prior redemption period must be 
        included in computing the seven-day redemption period.  When the 
        last day of the period falls on Saturday, Sunday, or a legal 
        holiday, that day must be omitted from the computation.  All 
        mechanic's lienholders who have coordinate liens shall have one 
        combined seven-day period to redeem.  
           (c) The amount required to redeem from the holder of the 
        sheriff's certificate of sale is the amount required under 
        section 580.23.  The amount required to redeem from a person 
        holding a certificate of redemption is: 
           (1) the amount paid to redeem as shown on the certificate 
        of redemption; plus 
           (2) interest on that amount to the date of redemption; plus 
           (3) the amount claimed due on the person's lien, as shown 
        on the affidavit under section 580.25, clause (3). 
           The amount required to redeem may be paid to the holder of 
        the sheriff's certificate of sale or the certificate of 
        redemption, as the case may be, or to the sheriff for the holder.
           Sec. 5.  Minnesota Statutes 2002, section 580.25, is 
        amended to read: 
           580.25 [REDEMPTION, HOW MADE.] 
           Redemption shall be made as follows provided in this 
        section. 
           The person desiring to redeem shall pay to the person 
        holding the right acquired under such sale, or for that person 
        to the sheriff who made the sale, or a successor in office, the 
        amount required by law for such the redemption, and shall 
        produce to such the person or officer receiving the redemption 
        payment: 
           (1) a copy of the docket of the judgment, or of the deed or 
        mortgage, or of the record or files evidencing any other lien 
        under which the person claims a right to redeem, certified by 
        the officer in whose with custody such of the docket, record, or 
        files shall be, or the original deed or mortgage, with the 
        certificate of record endorsed thereon on it; 
           (2) a copy of any assignment necessary to establish 
        evidence the person's claim, verified by the affidavit of that 
        person or a subscribing witness thereto, or some person 
        acquainted with the signature of the assignor ownership of the 
        lien, certified by the officer with custody of the assignment, 
        or the original of each instrument of assignment with the 
        certificate of record endorsed on it.  If the redemption is 
        under an assignment of a judgment, the assignment shall be filed 
        in the court rendering entering the judgment, as provided by 
        law, and the person so redeeming shall produce a certified 
        copy thereof of it and of the record of its filing, and the copy 
        of the docket shall show that the proper entry was made upon the 
        docket.  No further evidence of the assignment of the judgment 
        is required unless the mortgaged premises or part of it is 
        registered property, in which case the judgment and all 
        assignments of the judgment must be entered as a memorial upon 
        the certificate of title to the mortgaged premises and the 
        original judgment and each assignment with the certificate of 
        record endorsed on it, or a copy certified by the registrar of 
        titles, must be produced; and 
           (3) an affidavit of the person or the person's agent, 
        showing the amount then actually claimed due on the person's 
        lien and required to be paid on the lien in order to redeem from 
        the person. 
           If redemption is made to the sheriff, the sheriff may 
        charge a fee of $250 for issuing the certificate of redemption 
        and any related service.  No other fee may be charged by the 
        sheriff for a redemption.  
           Within 24 hours after such a redemption is made, the person 
        redeeming shall cause the documents so required to be produced 
        to be filed with the county recorder, or registrar of titles, 
        who shall be entitled to may receive fees as prescribed in 
        section 357.18 or 508.82.  If such the redemption shall be is 
        made at any place other than the county seat, it shall be is 
        sufficient forthwith to deposit such the documents in the 
        nearest post office, addressed to such the recorder or registrar 
        of titles, with the postage prepaid.  A person recording 
        documents produced for redemption shall, on the same day, 
        deliver copies of the documents to the sheriff for public 
        inspection.  The sheriff may receive a fee of $20 for the 
        documents delivered following a redemption.  The sheriff shall 
        note the date of delivery on the documents and shall maintain 
        for public inspection all documents delivered to the sheriff for 
        a period of six months after the end of the mortgagor's 
        redemption period.  
           Sec. 6.  [EFFECTIVE DATE; APPLICATION.] 
           Sections 3 to 5 are effective January 1, 2005, and apply to 
        foreclosures where the mortgagor's period of redemption expires 
        on or after the effective date. 
           Presented to the governor May 15, 2004 
           Signed by the governor May 19, 2004, 1:50 p.m.