Purpose

This bill creates a new legal remedy to protect a domestic violence or sexual assault victim by extinguishing the perpetrator’s share (interest) in a contract for deed to residential property. In short, it allows a victim who has an unpaid interest in a contract for deed with the abuser to seek court action to remove (extinguish) the abuser’s interest from the contract, so the victim can have full control of the property.

Key definitions and who it applies to

• Contract for deed: a method of buying property where payments are made over time (as defined in Minnesota law).
• Domestic abuse, criminal sexual assault, harassment, and sexual extortion: defined terms reflecting abusive conduct or threats covered under state law.
• Vendee and vendor: the buyer (vendee) and seller (vendor) in a contract for deed.
• Respondent: the person who is a perpetrator of domestic abuse, criminal sexual assault, harassment, or sexual extortion and who has an interest in the contract for deed.
• Extinguished respondent interest: the perpetrator’s interest in the contract for deed that is removed under this remedy.
• Qualified third party: a health care professional, domestic abuse advocate, or sexual assault counselor who can provide a professional document (the “qualifying document”) supporting the claim.
• Qualifying document: a document such as an order, a court filing, or a statement by a qualified third party verifying that the victim is affected by domestic abuse, sexual assault, harassment, or related crimes.
• Unmarried domestic abuse victim: the qualifying victim must be unmarried to petition under this statute.

Main provisions and how the remedy works

• New remedy: The bill adds a new section (court action under Minnesota Statutes) to extinguish the respondent’s interest in a contract for deed when the victim (unmarried) has an interest in the contract.
• Petition to extinguish: A victim can file a petition in court to extinguish the respondent’s interest. The petition must be served on both the respondent and the current vendor, and a notice of lis pendens (a notice that a lawsuit affecting the property is pending) must be recorded or filed.
• Time to respond: After notice, both the respondent and vendor have 90 days to contest the petition.
• Requirements for relief (when the court must grant the petition):
  • The petitioner demonstrates by a preponderance of the evidence that they have been subjected to domestic abuse, criminal sexual assault, sexual extortion, or harassment by the respondent.
  • The respondent has ceased physically occupying the property for six consecutive months.
  • The respondent has made no monetary payments on the contract for deed during those six months.
• Evidence and presumption:
  • A “qualifying document” can establish the abuse or assault.
  • There is a statutory presumption of abuse if the respondent has certain listed convictions or stays of adjudication involving the victim.
• If the petition is contested: The same three conditions (abuse, six-month abandonment, and no payments) must be shown by a preponderance of the evidence.

Relief and judgment process

• Summary real estate disposition judgment: If relief is granted, the court directs preparation of a summary judgment that extinguishes the respondent’s interest. This judgment includes multiple details (dates, parties, case information, property specifics, and the interest awarded or extinguished).
• Filing and binding effect: The summary judgment must be filed with the county recorder or registrar of titles, and it is binding on the vendor and all vendees. The extinguished respondent’s interest is revested in the petitioner.
• Documentation and records: The judgment includes required information such as the contract’s dates, property description, and the names of involved parties and attorneys. It also notes whether a summons and petition were served and the method of service.
• Post-judgment consequences: The vendor’s and all vendees’ interests are affected accordingly, and the petitioner’s interest is reaffirmed as the retained interest in the property.

Changes to existing law and scope

• The bill adds a new statutory remedy under Minnesota law (new section 500.191) and would amend related provisions to allow extinguishment of a perpetrator’s interest in a contract for deed when certain conditions are met.
• It creates a formal process with notice, potential contested hearings, and a standardized summary judgment to ensure clear, official disposition of the extinguished interest.

Practical impact and who benefits

• Eligible victims: Unmarried victims with an interest in a contract for deed who are seeking to remove the abuser’s interest and keep or obtain full ownership of the property.
• Protections for victims: The process requires documentation of abuse and includes safeguards like notice and opportunity to contest, with clear standards for relief.
• Potential outcomes: A cleared (extinguished) interest for the victim, revesting the property benefit in the victim, and a binding effect on the vendor and remaining vendees.

Safeguards and limitations

• The remedy requires a showing of abuse and six months of abandonment with no payments, creating measurable criteria before relief is granted.
• Contest procedures and notice requirements ensure due process and record-keeping (lis pendens, court notices, etc.).
• The remedy specifically targets a perpetrator’s joint interest in a contract for deed to residential property, not other types of property or debt.

Summary of key procedural steps

• Victim petitions court to extinguish the abuser’s interest.
• Notice to respondent and vendor; lis pendens filed/recorded.
• 90-day contest period.
• If granted (or uncontested), prepare and file a summary real estate disposition judgment.
• Judgment and revesting of interest are recorded; the victim’s ownership is clarified.

Important terms used in this context

• Extinguish/extinguished interest
• Contract for deed
• Respondent
• Vendee
• Vendor
• Domestic abuse
• Criminal sexual assault
• Harassment
• Sexual extortion
• Qualifying document
• Qualified third party
• Notice of lis pendens
• Summary real estate disposition judgment
• Six-month abandonment period
• Preponderance of the evidence
• Courts and county recorder/registrar of titles

Relevant Terms contract for deed; extinguish(ed) interest; respondent; vendee; vendor; domestic abuse; criminal sexual assault; harassment; sexual extortion; qualifying document; qualified third party; notice of lis pendens; summary real estate disposition judgment; six-month abandonment period; petition; due process; revested; county recorder; registrar of titles; unc) contes) t; real property; petition to extinguish.