Minnesota Session Laws - 2026 Regular Session

CHAPTER 80--H.F.No. 3970

An act

relating to civil law; establishing a remedy to extinguish a joint interest in a contract for deed of a perpetrator of domestic abuse or sexual assault;

amending Minnesota Statutes 2024, section 559.21, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 559.

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

Section 1.

new text begin [559.206] ACTION TO TERMINATE A PARTIAL INTEREST IN A CONTRACT FOR DEED BY A VICTIM OF DOMESTIC VIOLENCE. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Contract for deed" has the meaning given in section 507.235, subdivision 1a, paragraph (e). new text end

new text begin (c) "Criminal sexual assault" means conduct described in sections 609.342 to 609.3451. new text end

new text begin (d) "Domestic abuse" has the meaning given under section 518B.01, subdivision 2. new text end

new text begin (e) "Harassment" means the conduct described under sections 609.748, subdivision 1, paragraph (a), clause (1), and 609.749, subdivision 2, paragraph (c). new text end

new text begin (f) "Qualified third party" means a person, acting in an official capacity, who has provided professional services to a petitioner or a child who resides with the petitioner and is: new text end

new text begin (1) a licensed health care professional operating within the scope of the license; new text end

new text begin (2) a domestic abuse advocate, as that term is defined in section 595.02, subdivision 1, paragraph (l); or new text end

new text begin (3) a sexual assault counselor, as that term is defined in section 595.02, subdivision 1, paragraph (k). new text end

new text begin (g) "Qualifying document" means: new text end

new text begin (1) a valid order for protection issued under chapter 518B; new text end

new text begin (2) a no contact order currently in effect, issued under section 629.75 or chapter 609; new text end

new text begin (3) a writing produced and signed by a court official, acting in an official capacity, documenting that the petitioner, or a child who resides with the petitioner, is a victim of domestic abuse, criminal sexual assault, sexual extortion, or harassment and naming the perpetrator, if known; new text end

new text begin (4) a writing produced and signed by a city, county, state, or Tribal law enforcement official, acting in an official capacity, documenting that the petitioner, or a child who resides with the petitioner, is a victim of domestic abuse, criminal sexual assault, sexual extortion, or harassment and naming the perpetrator, if known; or new text end

new text begin (5) a sworn written certification. new text end

new text begin (h) "Petitioner" means a person who has a partial interest as a vendee in a contract for deed for the purchase of residential real property with the respondent and is seeking to have the respondent's interest terminated, and: new text end

new text begin (1) is a victim of domestic abuse, criminal sexual assault, sexual extortion, or harassment; or new text end

new text begin (2) resides with a child who is the victim of domestic abuse, criminal sexual conduct, sexual extortion, or harassment. new text end

new text begin (i) "Respondent" means a person who has a partial interest as a vendee with the petitioner in a contract for deed for the purchase of residential real property and whose interest in the contract for deed is the subject of a petition under this section. new text end

new text begin (j) "Sexual extortion" means the conduct described under section 609.3458. new text end

new text begin (k) "Sworn written certification" means a statement by a qualified third party, in the following form: new text end

new text begin "CERTIFICATION BY QUALIFIED THIRD PARTY new text end

new text begin I, (name of qualified third party), do hereby verify as follows: new text end

new text begin 1. I am a licensed health care professional; domestic abuse advocate, as that term is defined in Minnesota Statutes, section 595.02, subdivision 1, paragraph (l); or sexual assault counselor, as that term is defined in Minnesota Statutes, section 595.02, subdivision 1, paragraph (k), who has provided professional services to ..................... (name of petitioner) or a child who resides with the petitioner. new text end

new text begin 2. I have a reasonable basis to believe ..................... (name of petitioner) or a child who resides with the petitioner is a victim of domestic abuse, criminal sexual assault, sexual extortion, or harassment by ..................... (name of respondent). new text end

new text begin 3. I understand that the petitioner listed above may use this document as a basis for seeking a court order terminating the interest in the contract for deed of the respondent in a court action initiated by the petitioner pursuant to Minnesota Statutes, section 559.206. new text end

new text begin I attest that the foregoing is true and correct. new text end

new text begin (Printed name of qualified third party) new text end

new text begin (Signature of qualified third party) new text end

new text begin (Business address and business telephone number) new text end

new text begin (Date)" new text end

new text begin (l) "Vendee" means a person or entity who has entered into a contract for deed to purchase residential real property under a contract for deed. new text end

new text begin (m) "Vendor" means a person or entity selling residential real property under a contract for deed. Vendor includes the vendor's successor and assignees. new text end

new text begin Subd. 2. new text end

new text begin Petition to terminate respondent's interest. new text end

new text begin (a) A petitioner who is unmarried may petition the court for an order to terminate the respondent's interest in the contract for deed. The petition must allege that new text end new text begin the petitioner or a child who resides with the petitioner has been subjected to domestic abuse, criminal sexual assault, sexual extortion, or harassment by the respondent, and the respondent has abandoned the respondent's interest in the contract for deed. A respondent has abandoned their interest in the contract for deed if new text end new text begin the respondent has not physically occupied the property that is subject to the contract for deed for at least six consecutive months immediately preceding the commencement of the action under this section, and new text end new text begin the petitioner has made all payments due on the contract for deed for at least six consecutive months immediately preceding the commencement of the action under this section. new text end

new text begin (b) The petitioner must serve a summons and petition that include the legal description of the property subject to the contract for deed on: new text end

new text begin (1) the respondent; new text end

new text begin (2) the holder or holders of the vendor's interest; new text end

new text begin (3) state and federal tax lienholders; new text end

new text begin (4) any judgment lienholders; and new text end

new text begin (5) any other persons known or appearing of record to have any right or title to, estate or interest in, or lien on the property that is subject to the contract for deed. new text end

new text begin (c) The summons must be served in the manner provided to commence a civil lawsuit under Minnesota Rules of Civil Procedure. The respondent shall have 21 days after service of the summons to answer. new text end

new text begin (d) A notice of lis pendens must be recorded in the office of the county recorder or filed in the office of the registrar of titles in the county in which the real property that is subject to the contract for deed is located. new text end

new text begin Subd. 3. new text end

new text begin Content of summons. new text end

new text begin In addition to the requirements set forth under the Minnesota Rules of Civil Procedure, the summons must contain the following information: new text end

new text begin (1) the date the contract for deed was executed; new text end

new text begin (2) the street address of the property that is subject to the contract for deed; new text end

new text begin (3) the name of the vendor; new text end

new text begin (4) the names of the vendees; new text end

new text begin (5) the date of recordation of the contract for deed, the document number, and the county in which it was recorded; new text end

new text begin (6) the case name; new text end

new text begin (7) the court file number; new text end

new text begin (8) the judicial district in which the real property is located; new text end

new text begin (9) the legal description of the real property subject to the contract for deed; new text end

new text begin (10) a statement that the action seeks to terminate the respondent's partial interest in the contract for deed; new text end

new text begin (11) a statement that failure to respond to the summons and petition within the time allowed may result in a judgment that permanently terminates an interest in the contract for deed; and new text end

new text begin (12) a statement that the action may affect any right or title to, estate or interest in, or lien on the real property described in the summons. new text end

new text begin Subd. 4. new text end

new text begin Jurisdiction. new text end

new text begin (a) Except as provided in paragraph (b), the district court has jurisdiction over petitions seeking termination of the interest of the respondent. new text end

new text begin (b) Unless otherwise provided by applicable law, nothing in this section infringes upon the jurisdiction of a Tribal court in the matter of a petition to terminate the interest of a respondent in a contract for deed. new text end

new text begin Subd. 5. new text end

new text begin Procedure. new text end

new text begin (a) Except when a case proceeds by default, if an answer is filed and the petition is contested, the court must hold a hearing. The court must grant the petition if the petitioner demonstrates by a preponderance of the evidence that new text end new text begin the petitioner or a child who resides with the petitioner has been subjected to domestic abuse, criminal sexual assault, sexual extortion, or harassment by the respondent, and the respondent has abandoned their interest in the contract for deed as described in subdivision 2, paragraph (a). new text end

new text begin (b) A petitioner demonstrates that the petitioner or a child who resides with the petitioner has been subjected to domestic abuse, criminal sexual assault, sexual extortion, or harassment by the respondent if: new text end

new text begin (1) the petitioner presents a qualifying document; or new text end

new text begin (2) the respondent has been convicted of or received a stay of adjudication for a violation of section 518B.01, 609.27, 609.282, 609.322, 609.342 to 609.3451, 609.3458, 609.527, or 609.749 where the victim was the petitioner or a child who resides with the petitioner. new text end

new text begin Subd. 6. new text end

new text begin Defense; prejudice to the vendor. new text end

new text begin A vendor may contest a petition filed under this section by demonstrating by a preponderance of the evidence that granting the petition to terminate the respondent's interest will prejudice the vendor. A court must not grant the petition if the court finds that the vendor will be prejudiced by a termination of the respondent's interest. new text end

new text begin Subd. 7. new text end

new text begin Order. new text end

new text begin If the court grants the petition, the court shall issue an order terminating the interest of the respondent and finding that the petitioner has met the burden of showing that new text end new text begin the petitioner or a child who resides with the petitioner has been subjected to domestic abuse, criminal sexual assault, sexual extortion, or harassment by the respondent, and the respondent has abandoned the respondent's interest in the contract for deed as described in subdivision 2, paragraph (a). new text end

new text begin Subd. 8. new text end

new text begin Contract for deed termination judgment. new text end

new text begin (a) A court granting the requested relief shall prepare, or direct the petitioner or the petitioner's legal counsel to prepare and submit to the court, a proposed contract for deed termination judgment, which must provide that the respondent's interest is terminated and of no further force or effect. Upon approval by the court and filing of the contract for deed termination judgment with the court administrator, the court administrator must provide to any party upon request certified copies of the contract for deed termination judgment. The contract for deed termination judgment must contain the following information: new text end

new text begin (1) the date of execution of the contract for deed; new text end

new text begin (2) the date of recordation of the contract for deed and the county in which it was recorded; new text end

new text begin (3) the date of entry of the judgment terminating the respondent's interest in the contract for deed; new text end

new text begin (4) the names of the parties' attorneys or if any or all appeared pro se; new text end

new text begin (5) whether and when the summons and petition were served upon the respondent and holder or holders of the vendor's interest in the manner provided to commence a civil lawsuit under the Minnesota Rules of Civil Procedure; new text end

new text begin (6) the name of the judge who signed the order; new text end

new text begin (7) whether the judgment and decree resulted from a stipulation, a default, or a trial and the appearances at the default or trial; new text end

new text begin (8) any former name of either party; new text end

new text begin (9) the street address and legal description of the property that is the subject of the contract for deed; new text end

new text begin (10) if recorded, the document number of the contract for deed; new text end

new text begin (11) if the real property is registered land, the certificate of title number of the real property; new text end

new text begin (12) the name or names of the person or persons awarded an interest in the real property and a description of the interest awarded; new text end

new text begin (13) liens, mortgages, encumbrances, or other interests in the real estate described in the judgment and decree; new text end

new text begin (14) the signature of the judge and the date signed; new text end

new text begin (15) the signature of the court administrator and the date signed; and new text end

new text begin (16) if the judgment and decree resulted from a default, whether the petition contained the legal description of the real property and whether disposition was made in accordance with the request for relief. new text end

new text begin (b) Notwithstanding any provision contained in the contract for deed, a respondent whose interest has been terminated has no interest as a vendee in the contract for deed. new text end

new text begin (c) The petitioner must record the contract for deed termination judgment with the county recorder or the registrar of titles, as applicable. new text end

new text begin (d) A contract for deed termination judgment is binding on the interest of the vendor and all vendees under the contract for deed. new text end

new text begin Subd. 9. new text end

new text begin Effect of termination. new text end

new text begin (a) The termination of the respondent's interest in the contract for deed does not terminate or invalidate any other provision of the contract for deed. The respondent's interest that has been terminated shall be transferred to the petitioner by operation of law upon entry of the court's order without the necessity of any further act or conveyance. new text end

new text begin (b) A respondent whose interest has been terminated under this section has no further liability on the contract for deed and a vendor shall have no cause of action against the respondent for damages or performance. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to contracts for deed entered into on or after that date. new text end

Sec. 2.

Minnesota Statutes 2024, section 559.21, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Applicability to section 559.206. new text end

new text begin Nothing in this section shall apply to a vendee whose interest was terminated under section 559.206. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to contracts for deed entered into on or after that date. new text end

Presented to the governor May 6, 2026