2006 Minnesota Statutes

524.5-418 GENERAL POWERS AND DUTIES OF CONSERVATOR WITH RESPECT
TO REAL PROPERTY.
This section is applicable only to conservatorships and not to decedents' estates. As used
in this section, the word "mortgage" includes an extension of an existing mortgage, subject to
the provisions of this section, and the word "lease" means a lease for one or more years, unless
the context indicates otherwise. The conservator shall have the following powers and duties
with respect to conservatorship real property.
(a) The court may direct a sale, mortgage, or lease of any real estate of a protected person
when the personal property is insufficient to pay debts and other charges against the estate, or
to provide for the support, maintenance, and education of the protected person, a spouse, and
dependent children, or when it shall determine the sale, mortgage, or lease to be for the best
interest of the protected person. The homestead of a protected person shall not be sold, mortgaged,
or leased unless the written consent of the spouse has been filed.
(b) A conservator may file a petition to sell, mortgage, or lease alleging briefly the facts
constituting the reasons for the application and describing the real estate involved therein. The
petition may include all the real estate of the protected person or any part or parts thereof. It may
apply for different authority as to separate parcels. It may apply in the alternative for authority
to sell, mortgage, or lease.
(1) Upon the filing of such petition, the court shall fix the time and place for the hearing
thereof. Notice of the hearing shall be given to interested persons and shall state briefly the
nature of the application made by the petition. If publication of notice is required by the court,
published notice shall be given by publication once a week for two consecutive weeks in a legal
newspaper designated by the petitioner in the county wherein the proceedings are pending, or, if
no such designation be made, in any legal newspaper in the county, or, if the city of the protected
person's residence is situated in more than one county, in any legal newspaper in the city. The first
publication shall be had within two weeks after the date of the order fixing the time and place for
the hearing. Proof of publication and mailing shall be filed before the hearing. No defect in any
notice or in the publication or service thereof shall invalidate any proceedings.
(2) Upon the hearing, the court shall have full power to direct the sale, mortgage, or lease of
all the real estate described in the petition, or to direct the sale, mortgage, or lease of any one or
more parcels thereof, provided that any such direction shall be within the terms of the application
made by the petition. The order shall describe the real estate to be sold, mortgaged, or leased, and
may designate the sequence in which the several parcels shall be sold, mortgaged, or leased. If
the order be for a sale, it shall direct whether the real estate shall be sold at private sale or public
auction. An order to mortgage shall fix the maximum amount of the principal and the maximum
rate of interest and shall direct the purpose for which the proceeds shall be used. An order for sale,
mortgage, or lease shall remain in force until terminated by the court, but no private sale shall be
made after one year from the date of the order unless the real estate shall have been reappraised
under order of the court within six months preceding the sale.
(3) The court may order a sale of real estate for cash, part cash, and a purchase-money
mortgage of not more than 50 percent of the purchase price, or on contract for deed. The initial
payment under a sale on contract shall not be less than ten percent of the total purchase price,
and the unpaid purchase price shall bear interest at a rate of not less than four percent per annum
and shall be payable in reasonable monthly, quarterly, semiannual, or annual payments, and
the final installment shall become due and payable not later than ten years from the date of
the contract. Such contract shall provide for conveyance by conservator's or quit claim deed,
which deed shall be executed and delivered upon full performance of the contract without further
order of the court. In the event of termination of the interest of the purchaser and assigns in
such contract, the real estate may be resold under the original order and a reappraisal within six
months preceding the sale. A sale of the vendor's interest in real estate sold by the conservator
on contract may be made under order of the court, with or without notice, upon an appraisal of
such interest within six months preceding the sale; no such sale shall be made for less than
its value as fixed by such appraisal.
(4) If a sale at public auction is ordered, two weeks' published notice of the time and place of
sale shall be given. Proof of publication shall be filed before the confirmation of the sale. Such
publication and sale may be made in the county where the real estate is situated or in the county
of the proceedings. If the parcels to be sold are contiguous and lie in more than one county,
notice may be given and the sale may be made in either of such counties or in the county of the
proceedings. The conservator may adjourn the sale from time to time, if for the best interests of
the estate and the persons concerned, but not exceeding six months in all. Every adjournment
shall be announced publicly at the time and place fixed for the sale and, if for more than one day,
further notice thereof shall be given as the court may direct.
(5) If a private sale be ordered, the real estate shall be reappraised by two or more
disinterested persons under order of the court unless a prior appraisal of the real estate has been
made by two or more disinterested persons not more than six months before the sale, which
reappraisal shall be filed before the confirmation of the sale. No real estate shall be sold at private
sale for less than its value as fixed by such appraisal.
(6) If the bond is insufficient, before confirmation of a sale or lease, or before execution of a
mortgage, the conservator shall file an additional bond in such amount as the court may require.
(7) Upon making a sale or lease, the conservator shall file a report thereof. Upon proof of
compliance with the terms of the order, the court may confirm the sale or lease and order the
conservator to execute and deliver the proper instrument.
(c) When a protected person is entitled under contract of purchase to any interest in real
estate, such interest may be sold for the same reasons and in the same manner as other real estate
of a protected person. Before confirmation, the court may require the filing of a bond conditioned
to save the estate harmless. Upon confirmation, the conservator shall assign the contract and
convey by conservator's or quit claim deed.
(d) When the estate of a protected person is liable for any charge, mortgage, lien, or other
encumbrance upon the real estate therein, the court may refuse to confirm the sale or lease until
after the filing of a bond in such amount as the court may direct conditioned to save the estate
harmless.
(e) When any real estate of a protected person is desired by any person, firm, association,
corporation, or governmental agency having the power of eminent domain, the conservator
may agree, in writing, upon the compensation to be made for the taking, injuring, damaging, or
destroying thereof, subject to the approval of the court. When the agreement has been made, the
conservator shall file a petition, of which the agreement shall be a part, setting forth the facts
relative to the transaction.
(1) The court, with notice to interested persons, shall hear, determine, and act upon the
petition. If publication of notice is required by the court, published notice shall be given by
publication once a week for two consecutive weeks in a legal newspaper designated by the
petitioner in the county wherein the proceedings are pending, or, if no such designation be made,
in any legal newspaper in the county, or, if the city of the protected person's residence is situated
in more than one county, in any legal newspaper in the city. The first publication shall be within
two weeks after the date of the order fixing the time and place for the hearing. Proof of publication
and mailing shall be filed before the hearing. No defect in any notice or in the publication or
service thereof shall invalidate any proceedings.
(2) If the court approves the agreement, the conservator, upon payment of the agreed
compensation, shall convey the real estate sought to be acquired and execute any release which
may be authorized.
(f) When it is for the best interests of the estate of a protected person, real estate may be
platted by the conservator under such conditions and upon such notice as the court may order.
(g) When any protected person is legally bound to make a conveyance or lease, the court,
without further notice, may direct the conservator to make the conveyance or lease to the person
entitled thereto. The petition may be made by any person claiming to be entitled to the conveyance
or lease, or by the conservator, or by any interested person or person claiming an interest in the real
estate or contract, and shall show the description of the land and the facts upon which the claim
for conveyance or lease is based. Upon proof of the petition, the court may order the conservator
to execute and deliver an instrument of conveyance or lease upon performance of the contract.
(h) A conservator without order of the court may make an extension of an existing mortgage
for a period of five years or less, if the extension agreement contains the same prepayment
privileges and the rate of interest does not exceed the lowest rate in the mortgage extended.
(i) No conservator shall be liable personally on any mortgage note or by reason of the
covenants in any instrument or conveyance executed in the capacity of conservator.
(j) No sale, mortgage, lease, or conveyance by a conservator shall be subject to collateral
attack on account of any irregularity in the proceedings if the court which ordered the same
had jurisdiction of the estate.
(k) No proceeding to have declared invalid the sale, mortgage, lease, or conveyance by a
conservator shall be maintained by any person claiming under or through the protected person
unless such proceeding is begun within five years immediately succeeding the date of such
sale, mortgage, lease, or conveyance; provided, however, that in case of real estate sold by a
conservator, no action for its recovery shall be maintained by or under the protected person unless
it is begun within five years after the termination of the protective proceedings and that, in cases
of fraud, minors, and others under legal disability to sue when the right of action first accrues may
begin such action at any time within five years after the disability is removed.
(l) After the filing of the petition, a certificate of the district court certified to that fact may
be filed for record in the office of the county recorder for abstract property, or with the registrar
of titles for registered property, of any county in which any real estate owned by the proposed
protected person is situated and, if the protected person is a resident of this state, in the county of
residence. The certificate shall state that a petition is pending and the name and address of the
person for whom a conservator is sought. If a conservator is appointed on the petition, and if the
conservatorship order removes or restricts the right of the protected person to transfer property or
to contract, then all contracts and all transfers of real property made by the protected person after
the filing and before the termination of the conservatorship shall be void.
History: 2003 c 12 art 1 s 57