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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.

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