Bill Text: MN HF2324 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Real estate title actions limitations period reduced.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2012-02-16 - Introduction and first reading, referred to Civil Law [HF2324 Detail]
Download: Minnesota-2011-HF2324-Introduced.html
1.2relating to real property; reducing the limitations period for actions affecting title
1.3to real estate; amending Minnesota Statutes 2010, sections 365.27, subdivision 3;
1.4541.023, subdivisions 1, 2, 2a, 6, 7.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 365.27, subdivision 3, is amended to read:
1.7 Subd. 3. Reversion. If a lot is sold but not used, ownership reverts to the town40 25
1.8years after the sale or40 25 years after the most recent recording with the county recorder
1.9of a notice of the kind described in section541.023 or another document that relates to the
1.10ownership, whichever is latest. The town may take legal action in the same way as any
1.11other person to clarify the ownership or assure the marketability of the lot.
1.12 Sec. 2. Minnesota Statutes 2010, section 541.023, subdivision 1, is amended to read:
1.13 Subdivision 1. Commencement. As against a claim of title based upon a source
1.14of title, which source has then been of record at least40 25 years, no action affecting
1.15the possession or title of any real estate shall be commenced by a person, partnership,
1.16corporation, other legal entity, state, or any political division thereof, to enforce any right,
1.17claim, interest, incumbrance, or lien founded upon any instrument, event or transaction
1.18which was executed or occurred more than40 25 years prior to the commencement of
1.19such action, unless within40 25 years after such execution or occurrence there has
1.20been recorded in the office of the county recorder in the county in which the real estate
1.21affected is situated, a notice sworn to by the claimant or the claimant's agent or attorney
1.22setting forth the name of the claimant, a description of the real estate affected and of the
1.23instrument, event or transaction on which such claim is founded, and stating whether the
2.1right, claim, interest, incumbrance, or lien is mature or immature. If such notice relates to
2.2vested or contingent rights claimed under a condition subsequent or restriction it shall
2.3affirmatively show why such condition or restriction is not, or has not become nominal so
2.4that it may be disregarded under the provisions of section500.20, subdivision 1 .
2.5 Sec. 3. Minnesota Statutes 2010, section 541.023, subdivision 2, is amended to read:
2.6 Subd. 2. Application. (a) This section shall apply to every right, claim, interest,
2.7incumbrance, or lien founded by any instrument, event, or transaction that is at least40
2.825 years old.
2.9(b) This section applies to repurchase options or other rights of repurchase that
2.10encumber an interest in land based upon an instrument other than a deed of conveyance
2.11granted by a governmental body, agency, or subdivision, unless within40 25 years of the
2.12recording of the instrument a notice is recorded under subdivision 1. This paragraph does
2.13not revive repurchase options or rights of repurchase barred by subdivision 1.
2.14(c) This section does not apply to actions to enforce rights, claims, interests,
2.15encumbrances, or liens arising out of private covenants, conditions, or restrictions to
2.16which section500.20, subdivision 2a , or successor statutes do not apply.
2.17 Sec. 4. Minnesota Statutes 2010, section 541.023, subdivision 2a, is amended to read:
2.18 Subd. 2a. Registered property not affected. (a) Except as provided in paragraph
2.19(b), this section does not apply to real property while it remains registered according
2.20to chapter 508 or 508A.
2.21(b) This subdivision does not affect an action or proceeding involving the validity of
2.22a claim of title based upon a source of title which has been of record at least40 25 years if:
2.23(i) the action or proceeding is pending on August 1, 2001, or is commenced before
2.24February 1, 2002; and
2.25(ii) a notice of the pendency of the action or proceeding is recorded before February
2.261, 2002, in the office of the registrar of titles of the county in which the real property
2.27affected by the action or proceeding is located.
2.28 Sec. 5. Minnesota Statutes 2010, section 541.023, subdivision 6, is amended to read:
2.29 Subd. 6. Limitations; certain titles not affected. This section shall not affect any
2.30rights of the federal government; nor increase the effect as notice, actual or constructive, of
2.31any instrument now of record; nor bar the rights of any person, partnership, or corporation
2.32in possession of real estate. This section shall not impair the record title or record interest,
2.33or title obtained by or through any congressional or legislative grant, of any railroad
3.1corporation or other public service corporation or any trustee or receiver thereof or of any
3.2educational or religious corporation in any real estate by reason of any failure to record
3.3further evidence of such title or interest even though the record thereof is now or hereafter
3.4more than40 25 years old; nor shall this section require the recording of any notice as
3.5provided for in this section as to any undischarged mortgage or deed of trust executed by
3.6any such corporation or any trustee or receiver thereof or to any claim or action founded
3.7upon any such undischarged mortgage or deed of trust. The exceptions of this subdivision
3.8shall not include (1) reservations or exceptions of land for right-of-way or other railroad
3.9purposes contained in deeds of conveyance made by a railroad company or by trustees or
3.10receivers thereof, unless said reserved or excepted land shall have been put to railroad use
3.11within40 25 years after the date of said deeds of conveyance, (2) nor any rights under any
3.12conditions subsequent or restrictions contained in any such deeds of conveyance.
3.13 Sec. 6. Minnesota Statutes 2010, section 541.023, subdivision 7, is amended to read:
3.14 Subd. 7. Source of title. For the purposes of this section, the words "source of title"
3.15as used in subdivision 1 hereof shall mean any deed, judgment, decree, sheriff's certificate,
3.16or other instrument which transfers or confirms, or purports to transfer or confirm, a fee
3.17simple title to real estate, including any such instrument which purports to transfer, or to
3.18confirm the transfer of a fee simple title from a person who was not the record owner of
3.19the real estate. However, any such instrument which purports to transfer, or to confirm the
3.20transfer of, a fee simple title from a person who was not the record owner of the real estate
3.21to the grantee or transferee named in such instrument shall be deemed a source of title
3.22"of record at least40 25 years" within the meaning of subdivision 1 only if, during the
3.23period of40 25 years after it was recorded, the following two conditions are fulfilled: (1)
3.24another instrument was recorded which purports to transfer a fee simple title from said
3.25grantee or transferee to another person and (2) no instrument was recorded which purports
3.26to be or confirm a transfer of any interest in the real estate by or from whoever was the
3.27record owner in fee simple immediately before the commencement of said period of40
3.2825 years. The purpose of the next preceding sentence is to limit the effect of erroneous
3.29descriptions or accidental conveyances.
3.30 Sec. 7. EFFECTIVE DATE.
3.31This act is effective January 1, 2013.
1.3to real estate; amending Minnesota Statutes 2010, sections 365.27, subdivision 3;
1.4541.023, subdivisions 1, 2, 2a, 6, 7.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 365.27, subdivision 3, is amended to read:
1.7 Subd. 3. Reversion. If a lot is sold but not used, ownership reverts to the town
1.8years after the sale or
1.9of a notice of the kind described in section
1.10ownership, whichever is latest. The town may take legal action in the same way as any
1.11other person to clarify the ownership or assure the marketability of the lot.
1.12 Sec. 2. Minnesota Statutes 2010, section 541.023, subdivision 1, is amended to read:
1.13 Subdivision 1. Commencement. As against a claim of title based upon a source
1.14of title, which source has then been of record at least
1.15the possession or title of any real estate shall be commenced by a person, partnership,
1.16corporation, other legal entity, state, or any political division thereof, to enforce any right,
1.17claim, interest, incumbrance, or lien founded upon any instrument, event or transaction
1.18which was executed or occurred more than
1.19such action, unless within
1.20been recorded in the office of the county recorder in the county in which the real estate
1.21affected is situated, a notice sworn to by the claimant or the claimant's agent or attorney
1.22setting forth the name of the claimant, a description of the real estate affected and of the
1.23instrument, event or transaction on which such claim is founded, and stating whether the
2.1right, claim, interest, incumbrance, or lien is mature or immature. If such notice relates to
2.2vested or contingent rights claimed under a condition subsequent or restriction it shall
2.3affirmatively show why such condition or restriction is not, or has not become nominal so
2.4that it may be disregarded under the provisions of section
2.5 Sec. 3. Minnesota Statutes 2010, section 541.023, subdivision 2, is amended to read:
2.6 Subd. 2. Application. (a) This section shall apply to every right, claim, interest,
2.7incumbrance, or lien founded by any instrument, event, or transaction that is at least
2.825 years old.
2.9(b) This section applies to repurchase options or other rights of repurchase that
2.10encumber an interest in land based upon an instrument other than a deed of conveyance
2.11granted by a governmental body, agency, or subdivision, unless within
2.12recording of the instrument a notice is recorded under subdivision 1. This paragraph does
2.13not revive repurchase options or rights of repurchase barred by subdivision 1.
2.14(c) This section does not apply to actions to enforce rights, claims, interests,
2.15encumbrances, or liens arising out of private covenants, conditions, or restrictions to
2.16which section
2.17 Sec. 4. Minnesota Statutes 2010, section 541.023, subdivision 2a, is amended to read:
2.18 Subd. 2a. Registered property not affected. (a) Except as provided in paragraph
2.19(b), this section does not apply to real property while it remains registered according
2.20to chapter 508 or 508A.
2.21(b) This subdivision does not affect an action or proceeding involving the validity of
2.22a claim of title based upon a source of title which has been of record at least
2.23(i) the action or proceeding is pending on August 1, 2001, or is commenced before
2.24February 1, 2002; and
2.25(ii) a notice of the pendency of the action or proceeding is recorded before February
2.261, 2002, in the office of the registrar of titles of the county in which the real property
2.27affected by the action or proceeding is located.
2.28 Sec. 5. Minnesota Statutes 2010, section 541.023, subdivision 6, is amended to read:
2.29 Subd. 6. Limitations; certain titles not affected. This section shall not affect any
2.30rights of the federal government; nor increase the effect as notice, actual or constructive, of
2.31any instrument now of record; nor bar the rights of any person, partnership, or corporation
2.32in possession of real estate. This section shall not impair the record title or record interest,
2.33or title obtained by or through any congressional or legislative grant, of any railroad
3.1corporation or other public service corporation or any trustee or receiver thereof or of any
3.2educational or religious corporation in any real estate by reason of any failure to record
3.3further evidence of such title or interest even though the record thereof is now or hereafter
3.4more than
3.5provided for in this section as to any undischarged mortgage or deed of trust executed by
3.6any such corporation or any trustee or receiver thereof or to any claim or action founded
3.7upon any such undischarged mortgage or deed of trust. The exceptions of this subdivision
3.8shall not include (1) reservations or exceptions of land for right-of-way or other railroad
3.9purposes contained in deeds of conveyance made by a railroad company or by trustees or
3.10receivers thereof, unless said reserved or excepted land shall have been put to railroad use
3.11within
3.12conditions subsequent or restrictions contained in any such deeds of conveyance.
3.13 Sec. 6. Minnesota Statutes 2010, section 541.023, subdivision 7, is amended to read:
3.14 Subd. 7. Source of title. For the purposes of this section, the words "source of title"
3.15as used in subdivision 1 hereof shall mean any deed, judgment, decree, sheriff's certificate,
3.16or other instrument which transfers or confirms, or purports to transfer or confirm, a fee
3.17simple title to real estate, including any such instrument which purports to transfer, or to
3.18confirm the transfer of a fee simple title from a person who was not the record owner of
3.19the real estate. However, any such instrument which purports to transfer, or to confirm the
3.20transfer of, a fee simple title from a person who was not the record owner of the real estate
3.21to the grantee or transferee named in such instrument shall be deemed a source of title
3.22"of record at least
3.23period of
3.24another instrument was recorded which purports to transfer a fee simple title from said
3.25grantee or transferee to another person and (2) no instrument was recorded which purports
3.26to be or confirm a transfer of any interest in the real estate by or from whoever was the
3.27record owner in fee simple immediately before the commencement of said period of
3.2825 years. The purpose of the next preceding sentence is to limit the effect of erroneous
3.29descriptions or accidental conveyances.
3.30 Sec. 7. EFFECTIVE DATE.
3.31This act is effective January 1, 2013.
