Bill Text: MN SF137 | 2011-2012 | 87th Legislature | Engrossed
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Bill Title: Mortgage foreclosure redemption period modifications; real property deeds to correct title clarification; residential purchase agreements cancellation authorization; attorney as agent for service modifications; child support judgments effective date clarification
Sponsorship: Bipartisan Bill
Status: (Passed) 2011-05-24 - Governor approval [SF137 Detail]
Download: Minnesota-2011-SF137-Engrossed.html
Bill Title: Mortgage foreclosure redemption period modifications; real property deeds to correct title clarification; residential purchase agreements cancellation authorization; attorney as agent for service modifications; child support judgments effective date clarification
Sponsorship: Bipartisan Bill
Status: (Passed) 2011-05-24 - Governor approval [SF137 Detail]
Download: Minnesota-2011-SF137-Engrossed.html
1.2relating to real property; clarifying deeds to correct title and certain
1.3acknowledgments; clarifying certain powers of court with respect to a probate
1.4provision; providing for cancellation of residential purchase agreements;
1.5clarifying redemption period for foreclosure of certain mortgages; clarifying an
1.6effective date for certain child support judgments;amending Minnesota Statutes
1.72010, sections 272.15; 358.50; 524.2-712; 559.217, subdivisions 3, 4, 8; 580.23,
1.8subdivision 2; Laws 2010, chapter 238, section 7, as amended.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 272.15, is amended to read:
1.11272.15 DEED TO CORRECT TITLE.
1.12When a deed purporting toconvey or quitclaim any parcel of land, the record title
1.13to which appears to be in two or more persons, be a corrective deed is presented to the
1.14county attorney, accompanied by an abstract of title tosuch the land described in the deed,
1.15or other evidence deemed satisfactory by the county attorney, the attorney shall examine
1.16such deedand, abstract, or other evidence presented, upon tender of a fee of $5 therefor.
1.17On finding that such deed is given for the purpose of correcting a defect in the title, or on
1.18account of a technical error in a prior conveyance, the attorney shall so certify upon the
1.19deed; and thereupon the county recorder shall record it, if otherwise entitled to record,
1.20notwithstanding that there are unpaid taxes or assessments upon such land.
1.21 Sec. 2. Minnesota Statutes 2010, section 358.50, is amended to read:
1.22358.50 EFFECT OF ACKNOWLEDGMENT.
1.23 An acknowledgment made in a representative capacityfor and on behalf of a
1.24corporation, partnership, limited liability company, trust, or other entity as defined in
2.1section 358.41, clause (4), and certified substantially in the form prescribed in this chapter
2.2is prima facie evidence that the instrument or electronic record was executed and delivered
2.3with proper authority and as the act of the person or entity represented and identified in the
2.4instrument or electronic record.
2.5 Sec. 3. Minnesota Statutes 2010, section 524.2-712, is amended to read:
2.6524.2-712 DECEDENTS DYING AFTER DECEMBER 31, 2009, AND
2.7BEFORE JANUARY 1, 2011; FORMULA CLAUSES TO BE CONSTRUED TO
2.8REFER TO FEDERAL ESTATE TAX AND FEDERAL GENERATION-SKIPPING
2.9TRANSFER TAX LAWS.
2.10(a) A governing instrument, including a will or trust agreement, of a decedent who
2.11dies after December 31, 2009, and before January 1, 2011, that contains a formula or
2.12provision referring to the "unified credit," "estate tax exemption," "applicable exemption
2.13amount," "applicable credit amount," "applicable exclusion amount," "generation-skipping
2.14transfer tax exemption," "GST exemption," "marital deduction," "maximum marital
2.15deduction," "unlimited marital deduction," "inclusion ratio," "applicable fraction," or
2.16any section of the Internal Revenue Code relating to the federal estate tax or federal
2.17generation-skipping transfer tax, or that measures a share of an estate or trust by reference
2.18to federal estate taxes or federal generation-skipping transfer taxes, is deemed to refer to
2.19the federal estate tax and federal generation-skipping transfer tax laws as they applied with
2.20respect to the estates of decedents dying on December 31, 2009. This paragraph does not
2.21apply to a governing instrument, including a will or trust agreement, that manifests an
2.22intent that a contrary rule will apply if the decedent dies on a date on which there is no
2.23then-applicable federal estate or federal generation-skipping transfer tax.
2.24(b) If the federal estate or federal generation-skipping transfer tax becomes effective
2.25before January 1, 2011, then the reference to January 1, 2011, in paragraph (a) is deemed
2.26to refer to the first date on which this tax becomes legally effective, instead of January 1,
2.272011.
2.28(c) (b) The personal representative, trustee, or any interested person under the
2.29governing instrument, including a will or trust agreement, may bring a proceeding
2.30to determine whether the decedent intended that a formula or provision described in
2.31paragraph (a) be construed with respect to the law as it existed after December 31, 2009.
2.32This proceeding must be commenced by December 31, 2011., and the court may consider
2.33extrinsic evidence that contradicts the plain meaning of the will, trust, or other governing
2.34instrument. The court may modify a provision of a will, trust, or other governing
2.35instrument that refers to the federal estate tax or generation-skipping transfer tax laws as
3.1described in paragraph (a) to conform the terms to the decedent's intention, or achieve
3.2the decedent's tax objectives in a manner that is not contrary to the decedent's probable
3.3intention. The court may provide that its decision, including any decision to modify
3.4a provision of a will, trust, or other governing instrument, is effective as of the date of
3.5the decedent's death.
3.6 Sec. 4. Minnesota Statutes 2010, section 559.217, subdivision 3, is amended to read:
3.7 Subd. 3. Cancellation with right to cure. (a) If a default occurs or an unfulfilled
3.8condition exists after the date specified for fulfillment in the terms of a purchase agreement
3.9for the conveyance of residential real property, which does not by its terms cancel the
3.10purchase agreement, the purchaser or the seller may initiate a cancellation by serving
3.11upon the other party to the purchase agreement and any third party that is holding earnest
3.12money under the purchase agreement a notice:
3.13(1) specifying the residential real property that is the subject of the purchase
3.14agreement, including the legal description;
3.15(2) specifying the purchase agreement by date and names of parties, and the
3.16unfulfilled condition or default; and
3.17(3) stating that the purchase agreement will be canceled 15 days after service of the
3.18notice upon the other party to the purchase agreement unless prior to the cancellation date
3.19the party upon whom the notice is served complies with the conditions in default and
3.20completes the unfulfilled conditions, including, if applicable, completion of the purchase
3.21or sale of the residential real property according to the terms of the purchase agreement.
3.22(b) The notice to initiate a cancellation under this subdivision must be served in the
3.23manner provided in section559.21, subdivision 4 , paragraphs (a) and (b). The notice
3.24required by this subdivision must be given notwithstanding any provisions in the purchase
3.25agreement to the contrary.
3.26(c) The purchase agreement is canceled unless, within 15 days after the service of
3.27the notice upon the other party to the purchase agreement, the party upon whom the notice
3.28was served fully complies with the conditions in default and completes the unfulfilled
3.29conditions or secures from a court an order suspending the cancellation.
3.30 Sec. 5. Minnesota Statutes 2010, section 559.217, subdivision 4, is amended to read:
3.31 Subd. 4. Declaratory cancellation. (a) If an unfulfilled condition exists after the
3.32date specified for fulfillment in the terms of a purchase agreement for the conveyance
3.33of residential real property, which by the terms of the purchase agreement cancels the
3.34purchase agreement, either the purchaser or the seller may confirm the cancellation by
4.1serving upon the other party to the purchase agreement and any third party that is holding
4.2earnest money under the purchase agreement a notice:
4.3(1) specifying the residential real property that is the subject of the purchase
4.4agreement, including the legal description;
4.5(2) specifying the purchase agreement by date and names of parties, and the
4.6unfulfilled condition; and
4.7(3) stating that the purchase agreement has been canceled.
4.8(b) The notice to initiate a cancellation under this subdivision must be served in the
4.9manner provided in section559.21, subdivision 4 , paragraphs (a) and (b). The notice
4.10required by this subdivision may be given notwithstanding any provisions in the purchase
4.11agreement to the contrary.
4.12(c) The cancellation of the purchase agreement is complete, unless, within 15
4.13days after the service of the notice upon the other party to the purchase agreement, the
4.14party upon whom the notice was served secures from a court an order suspending the
4.15cancellation.
4.16 Sec. 6. Minnesota Statutes 2010, section 559.217, subdivision 8, is amended to read:
4.17 Subd. 8. Attorney as agent for service. Any attorney authorized to serve the
4.18notice of cancellation by a party initiating a cancellation under this section is designated
4.19as the attorney who may receive service as agent for the party initiating the cancellation
4.20of all summons, complaints, orders, and motions made in connection with an action by
4.21the party upon whom the notice is served to restrain the cancellation, and any responsive
4.22notice of cancellation as described in subdivision 2. Service in the action and service of a
4.23responsive notice of cancellation may be made upon the party initiating the cancellation
4.24by personal service or by mailing a copy of the process or notice to such party or to such
4.25party's attorney, by first class mail, postage prepaid, to the address stated in the notice.
4.26Service upon a party by first class mail shall be effective upon delivery to the address
4.27stated in the notice.
4.28 Sec. 7. Minnesota Statutes 2010, section 580.23, subdivision 2, is amended to read:
4.29 Subd. 2. 12-month redemption period. Notwithstanding the provisions of
4.30subdivision 1 hereof, when lands have been sold in conformity with the preceding sections
4.31of this chapter, the mortgagor, the mortgagor's personal representatives or assigns, within
4.3212 months after such sale, may redeem such lands in accordance with the provisions
4.33of payment of subdivision 1 thereof, if:
4.34(1) the mortgage was executed prior to July 1, 1967;
5.1(2) the amount claimed to be due and owing as of the date of the notice of foreclosure
5.2sale is less than 66-2/3 percent of the original principal amount secured by the mortgage;
5.3(3) the mortgage was executed prior to July 1, 1987, and the mortgaged premises, as
5.4of the date of the execution of the mortgage, exceeded ten acres in size;
5.5(4) the mortgage was executed prior to August 1, 1994, and the mortgaged premises,
5.6as of the date of the execution of the mortgage, exceeded ten acres but did not exceed 40
5.7acres in size and was in agricultural use as defined in section40A.02, subdivision 3 ;
5.8(5) the mortgaged premises, as of the date of the execution of the mortgage,
5.9exceeded 40 acres in size;or
5.10(6) the mortgage was executed on or after August 1, 1994, and the mortgaged
5.11premises, as of the date of the execution of the mortgage, exceeded ten acres but did
5.12not exceed 40 acres in size and was in agricultural use. For purposes of this clause, "in
5.13agricultural use" means that at least a portion of the mortgaged premises was classified
5.14for ad valorem tax purposes as:
5.15(i) class 2a agricultural homestead property under section273.13, subdivision 23 ;
5.16(ii) class 2b rural or agricultural nonhomestead property under section273.13,
5.17subdivision 23 ;
5.18(iii) class 1b agricultural homestead property under section273.13, subdivision
5.1922 ; or
5.20(iv) exempt wetlands under section272.02, subdivision 11 .; or
5.21(7) the mortgage qualifies as a reverse mortgage as defined in section 47.58.
5.22 Sec. 8. Laws 2010, chapter 238, section 7, as amended by Laws 2010, chapter 371,
5.23section 5, is amended to read:
5.24 Sec. 7. EFFECTIVE DATE; APPLICATION.
5.25Sections 2 and 3 are effective January 1, 2011. Sections 4 to 6 are effectiveJuly
5.261, 2011 January 1, 2013, and apply retroactively to child support judgments, including
5.27judgments by operation of law, that have not expired beforeJuly 1, 2011 January 1, 2013.
5.28EFFECTIVE DATE.This section is effective the day following final enactment.
5.29 Sec. 9. EFFECTIVE DATE.
5.30(a) Sections 4 to 6 are effective August 1, 2011, and apply to any Notice of
5.31Cancellation of Purchase Agreement or Responsive Notice of Cancellation of Purchase
5.32Agreement served on or after that date.
6.1(b) Section 7 is effective the day following final enactment and applies to
6.2foreclosures of reverse mortgages in which the notice of foreclosure was published on or
6.3after the effective date.
1.3acknowledgments; clarifying certain powers of court with respect to a probate
1.4provision; providing for cancellation of residential purchase agreements;
1.5clarifying redemption period for foreclosure of certain mortgages; clarifying an
1.6effective date for certain child support judgments;amending Minnesota Statutes
1.72010, sections 272.15; 358.50; 524.2-712; 559.217, subdivisions 3, 4, 8; 580.23,
1.8subdivision 2; Laws 2010, chapter 238, section 7, as amended.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 272.15, is amended to read:
1.11272.15 DEED TO CORRECT TITLE.
1.12When a deed purporting to
1.13
1.14county attorney, accompanied by an abstract of title to
1.15or other evidence deemed satisfactory by the county attorney, the attorney shall examine
1.16such deed
1.17On finding that such deed is given for the purpose of correcting a defect in the title, or on
1.18account of a technical error in a prior conveyance, the attorney shall so certify upon the
1.19deed; and thereupon the county recorder shall record it, if otherwise entitled to record,
1.20notwithstanding that there are unpaid taxes or assessments upon such land.
1.21 Sec. 2. Minnesota Statutes 2010, section 358.50, is amended to read:
1.22358.50 EFFECT OF ACKNOWLEDGMENT.
1.23 An acknowledgment made in a representative capacity
1.24
2.1section 358.41, clause (4), and certified substantially in the form prescribed in this chapter
2.2is prima facie evidence that the instrument or electronic record was executed and delivered
2.3with proper authority and as the act of the person or entity represented and identified in the
2.4instrument or electronic record.
2.5 Sec. 3. Minnesota Statutes 2010, section 524.2-712, is amended to read:
2.6524.2-712 DECEDENTS DYING AFTER DECEMBER 31, 2009, AND
2.7BEFORE JANUARY 1, 2011; FORMULA CLAUSES TO BE CONSTRUED TO
2.8REFER TO FEDERAL ESTATE TAX AND FEDERAL GENERATION-SKIPPING
2.9TRANSFER TAX LAWS.
2.10(a) A governing instrument, including a will or trust agreement, of a decedent who
2.11dies after December 31, 2009, and before January 1, 2011, that contains a formula or
2.12provision referring to the "unified credit," "estate tax exemption," "applicable exemption
2.13amount," "applicable credit amount," "applicable exclusion amount," "generation-skipping
2.14transfer tax exemption," "GST exemption," "marital deduction," "maximum marital
2.15deduction," "unlimited marital deduction," "inclusion ratio," "applicable fraction," or
2.16any section of the Internal Revenue Code relating to the federal estate tax or federal
2.17generation-skipping transfer tax, or that measures a share of an estate or trust by reference
2.18to federal estate taxes or federal generation-skipping transfer taxes, is deemed to refer to
2.19the federal estate tax and federal generation-skipping transfer tax laws as they applied with
2.20respect to the estates of decedents dying on December 31, 2009. This paragraph does not
2.21apply to a governing instrument, including a will or trust agreement, that manifests an
2.22intent that a contrary rule will apply if the decedent dies on a date on which there is no
2.23then-applicable federal estate or federal generation-skipping transfer tax.
2.24
2.25
2.26
2.27
2.28
2.29governing instrument, including a will or trust agreement, may bring a proceeding
2.30to determine whether the decedent intended that a formula or provision described in
2.31paragraph (a) be construed with respect to the law as it existed after December 31, 2009.
2.32This proceeding must be commenced by December 31, 2011
2.33extrinsic evidence that contradicts the plain meaning of the will, trust, or other governing
2.34instrument. The court may modify a provision of a will, trust, or other governing
2.35instrument that refers to the federal estate tax or generation-skipping transfer tax laws as
3.1described in paragraph (a) to conform the terms to the decedent's intention, or achieve
3.2the decedent's tax objectives in a manner that is not contrary to the decedent's probable
3.3intention. The court may provide that its decision, including any decision to modify
3.4a provision of a will, trust, or other governing instrument, is effective as of the date of
3.5the decedent's death.
3.6 Sec. 4. Minnesota Statutes 2010, section 559.217, subdivision 3, is amended to read:
3.7 Subd. 3. Cancellation with right to cure. (a) If a default occurs or an unfulfilled
3.8condition exists after the date specified for fulfillment in the terms of a purchase agreement
3.9for the conveyance of residential real property, which does not by its terms cancel the
3.10purchase agreement, the purchaser or the seller may initiate a cancellation by serving
3.11upon the other party to the purchase agreement and any third party that is holding earnest
3.12money under the purchase agreement a notice:
3.13(1) specifying the residential real property that is the subject of the purchase
3.14agreement, including the legal description;
3.15(2) specifying the purchase agreement by date and names of parties, and the
3.16unfulfilled condition or default; and
3.17(3) stating that the purchase agreement will be canceled 15 days after service of the
3.18notice upon the other party to the purchase agreement unless prior to the cancellation date
3.19the party upon whom the notice is served complies with the conditions in default and
3.20completes the unfulfilled conditions, including, if applicable, completion of the purchase
3.21or sale of the residential real property according to the terms of the purchase agreement.
3.22(b) The notice to initiate a cancellation under this subdivision must be served in the
3.23manner provided in section
3.24required by this subdivision must be given notwithstanding any provisions in the purchase
3.25agreement to the contrary.
3.26(c) The purchase agreement is canceled unless, within 15 days after the service of
3.27the notice upon the other party to the purchase agreement, the party upon whom the notice
3.28was served fully complies with the conditions in default and completes the unfulfilled
3.29conditions or secures from a court an order suspending the cancellation.
3.30 Sec. 5. Minnesota Statutes 2010, section 559.217, subdivision 4, is amended to read:
3.31 Subd. 4. Declaratory cancellation. (a) If an unfulfilled condition exists after the
3.32date specified for fulfillment in the terms of a purchase agreement for the conveyance
3.33of residential real property, which by the terms of the purchase agreement cancels the
3.34purchase agreement, either the purchaser or the seller may confirm the cancellation by
4.1serving upon the other party to the purchase agreement and any third party that is holding
4.2earnest money under the purchase agreement a notice:
4.3(1) specifying the residential real property that is the subject of the purchase
4.4agreement, including the legal description;
4.5(2) specifying the purchase agreement by date and names of parties, and the
4.6unfulfilled condition; and
4.7(3) stating that the purchase agreement has been canceled.
4.8(b) The notice to initiate a cancellation under this subdivision must be served in the
4.9manner provided in section
4.10required by this subdivision may be given notwithstanding any provisions in the purchase
4.11agreement to the contrary.
4.12(c) The cancellation of the purchase agreement is complete, unless, within 15
4.13days after the service of the notice upon the other party to the purchase agreement, the
4.14party upon whom the notice was served secures from a court an order suspending the
4.15cancellation.
4.16 Sec. 6. Minnesota Statutes 2010, section 559.217, subdivision 8, is amended to read:
4.17 Subd. 8. Attorney as agent for service. Any attorney authorized to serve the
4.18notice of cancellation by a party initiating a cancellation under this section is designated
4.19as the attorney who may receive service as agent for the party initiating the cancellation
4.20of all summons, complaints, orders, and motions made in connection with an action by
4.21the party upon whom the notice is served to restrain the cancellation, and any responsive
4.22notice of cancellation as described in subdivision 2. Service in the action and service of a
4.23responsive notice of cancellation may be made upon the party initiating the cancellation
4.24by personal service or by mailing a copy of the process or notice to such party or to such
4.25party's attorney, by first class mail, postage prepaid, to the address stated in the notice.
4.26Service upon a party by first class mail shall be effective upon delivery to the address
4.27stated in the notice.
4.28 Sec. 7. Minnesota Statutes 2010, section 580.23, subdivision 2, is amended to read:
4.29 Subd. 2. 12-month redemption period. Notwithstanding the provisions of
4.30subdivision 1 hereof, when lands have been sold in conformity with the preceding sections
4.31of this chapter, the mortgagor, the mortgagor's personal representatives or assigns, within
4.3212 months after such sale, may redeem such lands in accordance with the provisions
4.33of payment of subdivision 1 thereof, if:
4.34(1) the mortgage was executed prior to July 1, 1967;
5.1(2) the amount claimed to be due and owing as of the date of the notice of foreclosure
5.2sale is less than 66-2/3 percent of the original principal amount secured by the mortgage;
5.3(3) the mortgage was executed prior to July 1, 1987, and the mortgaged premises, as
5.4of the date of the execution of the mortgage, exceeded ten acres in size;
5.5(4) the mortgage was executed prior to August 1, 1994, and the mortgaged premises,
5.6as of the date of the execution of the mortgage, exceeded ten acres but did not exceed 40
5.7acres in size and was in agricultural use as defined in section
5.8(5) the mortgaged premises, as of the date of the execution of the mortgage,
5.9exceeded 40 acres in size;
5.10(6) the mortgage was executed on or after August 1, 1994, and the mortgaged
5.11premises, as of the date of the execution of the mortgage, exceeded ten acres but did
5.12not exceed 40 acres in size and was in agricultural use. For purposes of this clause, "in
5.13agricultural use" means that at least a portion of the mortgaged premises was classified
5.14for ad valorem tax purposes as:
5.15(i) class 2a agricultural homestead property under section
5.16(ii) class 2b rural or agricultural nonhomestead property under section
5.17subdivision 23
5.18(iii) class 1b agricultural homestead property under section
5.1922
5.20(iv) exempt wetlands under section
5.21(7) the mortgage qualifies as a reverse mortgage as defined in section 47.58.
5.22 Sec. 8. Laws 2010, chapter 238, section 7, as amended by Laws 2010, chapter 371,
5.23section 5, is amended to read:
5.24 Sec. 7. EFFECTIVE DATE; APPLICATION.
5.25Sections 2 and 3 are effective January 1, 2011. Sections 4 to 6 are effective
5.26
5.27judgments by operation of law, that have not expired before
5.28EFFECTIVE DATE.This section is effective the day following final enactment.
5.29 Sec. 9. EFFECTIVE DATE.
5.30(a) Sections 4 to 6 are effective August 1, 2011, and apply to any Notice of
5.31Cancellation of Purchase Agreement or Responsive Notice of Cancellation of Purchase
5.32Agreement served on or after that date.
6.1(b) Section 7 is effective the day following final enactment and applies to
6.2foreclosures of reverse mortgages in which the notice of foreclosure was published on or
6.3after the effective date.
