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HF1792 (Legislative Session 94 (2025-2026))

Contracts for deed; definition of investor seller modified, and technical changes made.

Related bill: SF505

AI Generated Summary

The bill H.F. No. 1792, introduced in the Minnesota House of Representatives by Representatives Mahamoud and Dotseth, proposes amendments to various statutes concerning contracts for deed and definitions related to investor sellers.

Key Aspects of the Bill:

  1. Modification of Investor Seller Definition

    • The bill seeks to refine or update the definition of "investor seller" in the context of contracts for deed.

  2. Technical Changes to Statutes

    • It makes technical amendments to Minnesota Statutes 2024, including:
      • Section 272.12 (Tax payments before recording land conveyances)
      • Section 559.21, Subdivision 4 (relating to contracts for deed)
      • Section 559A.01, Subdivisions 3 & 5 (definitions section of contracts for deed law)
      • Adding a new subdivision to Section 559A.01
      • Section 559A.03, Subdivision 3
      • Section 559A.04, Subdivision 4

  3. Tax Certification for Deed Recording

    • The bill reiterates that when deeds, land plats, contracts for deed, and certain other real estate documents are presented to a county auditor for transfer, the auditor must:
      • Verify that no delinquent taxes exist within four months of a contract for deed execution.
      • Ensure no unpaid taxes exist before allowing a deed to be recorded.

  4. Recording Requirements for Certain Transactions

    • Specifies that various legal instruments, such as sheriff's sale certificates, redemption certificates, probate distributions, and homeowners association documents, may be recorded without needing tax certifications under certain circumstances.

  5. Penalties for Non-Compliance

    • Clarifies that a county recorder or registrar of titles violating tax certification requirements could face penalties, including:
      • A gross misdemeanor charge
      • Liability to the grantee for damages

Purpose of the Bill:

  • To enhance clarity and enforcement of contract-for-deed transactions.
  • To ensure tax compliance before property transfers are recorded.
  • To protect buyers and financial institutions by regulating how investor sellers operate.
  • To streamline and update Minnesota's real estate transaction laws.

This bill is currently under review by the Committee on Judiciary Finance and Civil Law.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025HouseFloorActionIntroduction and first reading, referred toJudiciary Finance and Civil Law
April 06, 2025SenateFloorActionReceived from House
March 02, 2025HouseFloorActionIntroduction and first reading, referred toJudiciary Finance and Civil Law
March 25, 2025HouseFloorActionAuthor added
April 06, 2025SenateFloorActionIntroduction and first reading
March 26, 2025HouseFloorActionCommittee report, to adopt as amended
April 06, 2025SenateFloorActionReferred toRules and Administration
March 26, 2025HouseFloorActionSecond reading
April 08, 2025SenateFloorActionComm report: Subst. for SF on General Orders
March 31, 2025HouseFloorActionHouse rule 1.21, placed on Calendar for the Day
April 08, 2025SenateFloorActionSecond reading
April 21, 2025SenateFloorActionSpecial Order
April 21, 2025SenateFloorActionSpecial Order
April 02, 2025HouseFloorActionThird reading
April 02, 2025HouseFloorActionBill was passed
April 21, 2025SenateFloorActionThird reading Passed
April 21, 2025SenateFloorActionThird reading Passed
April 22, 2025HouseNoteActionReturned from Senate
SenateNoteActionPresentment date
HouseFloorActionPresented to Governor
SenateNoteActionGovernor's action Approval
SenateNoteActionSecretary of State
SenateNoteActionSecretary of State
HouseNoteActionGovernor approval
HouseNoteActionGovernor approval
HouseNoteActionChapter number
HouseFloorActionSecretary of State, Filed
HouseFloorActionSecretary of State, Filed
HouseNoteActionChapter number

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies conditions under which certain instruments may be recorded without a certificate."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the requirements for recording conveyances under section 272.12.",
      "modified": [
        "Updates procedural steps for county auditors related to conveyances."
      ]
    },
    "citation": "272.12",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This segment references delinquent taxes as defined under section 279.02.",
      "modified": [
        ""
      ]
    },
    "citation": "279.02",
    "subdivision": ""
  }
]

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