Permit an action to terminate an interest in a contract for deed of a perpetrator of domestic abuse or sexual assault

A bill for an act

relating to civil law; permitting an action to terminate an interest in a contract for

deed of a perpetrator of domestic abuse or sexual assault; amending Minnesota

Statutes 2024, section 559.21, by adding a subdivision; proposing coding for new

law in Minnesota Statutes, chapter 559.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

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[559.206] ACTION TO TERMINATE AN INTEREST IN A CONTRACT

FOR DEED BY A VICTIM OF DOMESTIC VIOLENCE.

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Subdivision 1.

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Definitions.

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(a) For the purposes of this section, the following terms have

the meanings given.

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(b) "Contract for deed" has the meaning given in section 507.235, subdivision 1a.

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(c) "Criminal sexual assault" means conduct described in sections 609.342 to 609.3451.

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(d) "Domestic abuse" has the meaning given under section 518B.01, subdivision 2.

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(e) "Harassment" means the conduct described under sections 609.748, subdivision 1,

paragraph (a), clause (1), and 609.749, subdivision 2, paragraph (c).

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(f) "Qualified third party" means a person, acting in an official capacity, who has provided

professional services to a petitioner or a child who resides with the petitioner and is:

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(1) a licensed health care professional operating within the scope of the license;

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(2) a domestic abuse advocate, as that term is defined in section 595.02, subdivision 1,

paragraph (l); or

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(3) a sexual assault counselor, as that term is defined in section 595.02, subdivision 1,

paragraph (k).

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(g) "Qualifying document" means:

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(1) a valid order for protection issued under chapter 518B;

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(2) a no-contact order currently in effect, issued under section 629.75 or chapter 609;

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(3) a writing produced and signed by a court official, acting in an official capacity,

documenting that the petitioner, or a child who resides with the petitioner, is a victim of

domestic abuse, criminal sexual assault, sexual extortion, or harassment and naming the

perpetrator, if known;

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(4) a writing produced and signed by a city, county, state, or Tribal law enforcement

official, acting in an official capacity, documenting that the petitioner, or a child who resides

with the petitioner, is a victim of domestic abuse, criminal sexual assault, sexual extortion,

or harassment and naming the perpetrator, if known; or

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(5) a sworn written certification.

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(h) "Petitioner" means a person who has a partial interest as a vendee in a contract for

deed for the purchase of residential real property with the respondent, is seeking to have

the respondent's interest terminated, and:

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(1) is a victim of domestic abuse, criminal sexual assault, sexual extortion, or harassment;

or

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(2) resides with a child who is the victim of domestic abuse, criminal sexual conduct,

sexual extortion, or harassment.

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(i) "Respondent" means a person who has a partial interest as a vendee with the petitioner

in a contract for deed for the purchase of residential real property and whose interest in the

contract for deed is the subject of a petition under this section.

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(j) "Sexual extortion" means the conduct described under section 609.3458.

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(k) "Sworn written certification" means a statement by a qualified third party, in the

following form:

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"CERTIFICATION BY QUALIFIED THIRD PARTY

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I, (name of qualified third party), do hereby verify as follows:

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1. I am a licensed health care professional, domestic abuse advocate, as that term is

defined in Minnesota Statutes, section 595.02, subdivision 1, paragraph (l), or sexual assault

counselor, as that term is defined in Minnesota Statutes, section 595.02, subdivision 1,

paragraph (k), who has provided professional services to ..................... (name of petitioner)

or a child who resides with the petitioner.

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2. I have a reasonable basis to believe ..................... (name of petitioner) or a child who

resides with the petitioner is a victim of domestic abuse, criminal sexual assault, sexual

extortion, or harassment by ..................... (name of respondent).

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3. I understand that the person listed above may use this document as a basis for seeking

a court order terminating the interest in the contract for deed of the respondent in a court

action initiated by the petitioner, pursuant to Minnesota Statutes, section 559.206.

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I attest that the foregoing is true and correct.

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(Printed name of qualified third party)

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(Signature of qualified third party)

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(Business address and business telephone number)

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(Date)".

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(l) "Vendee" means a person or entity who has entered into a contract for deed to purchase

residential real property under a contract for deed.

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(m) "Vendor" means a person or entity selling residential real property under a contract

for deed. Vendor includes the vendor's successor and assignees.

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Subd. 2.

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Petition to terminate respondent's interest.

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(a) A petitioner who is unmarried

may petition the court for an order to terminate the respondent's interest in the contract for

deed. The petition must allege that:

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(1) the petitioner or a child who resides with the petitioner has been subjected to domestic

abuse, criminal sexual assault, sexual extortion, or harassment by the respondent;

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(2) the respondent has ceased to physically occupy the property that is subject to the

contract for deed for the six consecutive months preceding the service of the summons; and

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(3) the petitioner has made all payments due on the contract for deed during the six

consecutive months preceding the service of the summons.

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(b) The petitioner must serve a summons that includes the petition and the legal

description of the property subject to the contract for deed on:

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(1) the respondent;

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(2) the current vendor;

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(3) state and federal tax lienholders; and

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(4) any judgment lienholders.

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(c) The summons must be served in the manner provided to commence a civil lawsuit

under Minnesota Rules of Civil Procedure. The respondent shall have 21 days after service

of the summons to answer.

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(d) A notice of lis pendens must be recorded in the office of the county recorder or filed

in the office of the registrar of titles in the county in which the real property that is the

subject of the contract for deed is located.

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Subd. 3.

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Content of summons.

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In addition to the requirements set forth under subdivision

2, the summons must contain the following information:

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(1) the date the contract for deed was executed;

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(2) the address of the property that is the subject of the contract for deed;

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(3) the name of the vendor;

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(4) the names of the vendees;

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(5) the date of recordation of the contract for deed, the document number, and the county

in which it was recorded;

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(6) the case name;

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(7) the court file number; and

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(8) the judicial district in which the property is located.

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Subd. 4.

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Jurisdiction.

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(a) Except as provided in paragraph (b), the district court has

jurisdiction over petitions seeking termination of the interest of the respondent.

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(b) Unless otherwise provided by applicable law, nothing in this section infringes upon

the jurisdiction of a Tribal court in the matter of a petition to terminate the interest of a

respondent in a contract for deed where at least one of the vendees is a member or descendent

of a member of the Tribe, the vendor is a member or a descendent of a member of the Tribe,

or the property that is the subject of the contract for deed is within the boundaries of Tribal

land.

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Subd. 5.

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Procedure.

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(a) If the respondent, the vendor, or any lienholder has not filed an

answer within 21 days after service has been made, the court must grant the petition.

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(b) If an answer is filed and the petition is contested, the court must hold a hearing. The

court must grant the petition if the petitioner demonstrates by a preponderance of the evidence

that:

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(1) the petitioner or a child who resides with the petitioner has been subjected to domestic

abuse, criminal sexual assault, sexual extortion, or harassment by the respondent;

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(2) the respondent has not physically occupied the property that is subject to the contract

for deed for the six consecutive months preceding the commencement of the action under

this section; and

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(3) the petitioner has made all amounts required to be paid under the contract for deed

during the six consecutive months preceding the service of the summons.

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(c) A petitioner demonstrates that the petitioner or a child who resides with the petitioner

has been subjected to domestic abuse, criminal sexual assault, sexual extortion, or harassment

by the respondent if the petitioner:

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(1) presents a qualifying document; or

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(2) if the respondent has been convicted of or received a stay of adjudication for a

violation of section 518B.01, 609.27, 609.282, 609.322, 609.342 to 609.3451, 609.3458,

609.527, or 609.749 where the victim was the petitioner or a child who resides with the

petitioner.

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Subd. 6.

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Defense; prejudice to the vendor.

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A vendor may contest a petition filed under

this section by demonstrating by a preponderance of the evidence that granting the petition

to terminate the respondent's interest will prejudice the vendor. A court must not grant the

petition if the court finds that the vendor will be prejudiced by a termination of the

respondent's interest.

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Subd. 7.

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Order.

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If the court grants the petition, the court shall issue an order terminating

the interest of the respondent and finding that the petitioner has met the burden of showing:

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(1) the petitioner or a child who resides with the petitioner has been subjected to domestic

abuse, criminal sexual assault, sexual extortion, or harassment by the respondent;

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(2) the respondent has not physically occupied the property that is subject to the contract

for deed for the six consecutive months preceding the commencement of the action under

this section; and

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(3) the petitioner has made all amounts required to be paid under the contract during the

six consecutive months preceding the service of the summons.

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Subd. 8.

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Contract for deed termination judgment.

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(a) A court granting the requested

relief shall direct the petitioner or the petitioner's legal counsel to prepare and submit to the

court a proposed contract for deed termination judgment, which must provide that the

respondent's interest is terminated and of no further force or effect. Upon approval by the

court and filing of the contract for deed termination judgment with the court administrator,

the court administrator must provide to any party upon request certified copies of the contract

for deed termination judgment. The contract for deed termination judgment must contain

the following information:

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(1) the date of execution of the contract for deed;

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(2) the date of recordation of the contract for deed and the county in which it was

recorded;

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(3) the date of entry of the judgment terminating the respondent's interest in the contract

for deed;

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(4) the names of the parties' attorneys or if any or all appeared pro se;

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(5) whether and when the summons and petition were served upon the respondent and

vendor as required under the Minnesota Rules of Civil Procedure;

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(6) the name of the judge who signed the order;

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(7) whether the judgment and decree resulted from a stipulation, a default, or a trial and

the appearances at the default or trial;

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(8) any former name of either party;

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(9) the address and legal description of the property that is the subject of the contract

for deed;

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(10) if recorded, the document number of the contract for deed;

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(11) if the property is registered land, the certificate of title number of the real property;

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(12) the name or names of the persons awarded an interest in the real property and a

description of the interest awarded;

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(13) liens, mortgages, encumbrances, or other interests in the real estate described in

the judgment and decree;

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(14) the signature of the judge and date signed; and

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(15) the signature of the court administrator and the date signed.

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(b) Notwithstanding any provision contained in the contract for deed, a respondent whose

interest has been terminated has no interest as a vendee in the contract for deed.

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(c) The petitioner must record the contract for deed termination judgment with the county

recorder or the registrar of titles, as applicable.

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(d) A contract for deed termination judgment is binding on the interest of the vendor

and all vendees under the contract for deed.

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Subd. 9.

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Effect of termination.

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(a) The termination of the respondent's interest in the

contract for deed does not terminate or invalidate any other provisions of the contract for

deed. The respondent's interest that has been terminated under this section shall be transferred

to the petitioner by operation of law.

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(b) A respondent whose interest has been terminated under this section has no further

liability on the contract for deed and a vendor shall have no cause of action against the

terminated respondent for damages or performance.

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EFFECTIVE DATE.

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This section is effective July 1, 2026, and applies to contracts

for deed entered into on or after that date.

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Sec. 2.

Minnesota Statutes 2024, section 559.21, is amended by adding a subdivision to

read:

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Subd. 10.

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Applicability to vendee whose interest was terminated under section

559.206.

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Nothing in this section shall apply to a vendee whose interest was terminated under

section 559.206.

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EFFECTIVE DATE.

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This section is effective July 1, 2026, and applies to contracts

for deed entered into on or after that date.

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