Purpose

This bill creates a new legal remedy to help a victim remove a perpetrator’s ownership interest in a contract for deed for a residential property. It adds a specific process to extinguish the perpetrator’s interest when the perpetrator is involved in domestic abuse or certain sexual offenses, making it easier for victims to be free of the perpetrator’s financial claim in the property.

Key terms and definitions

• Contract for deed: a financing arrangement to purchase residential property, as defined in statute.
• Domestic abuse: defined in state law (referencing existing definitions).
• Criminal sexual assault: defined in state law (referencing specific sections).
• Harassment: defined in state law (referencing specific sections).
• Sexual extortion: defined in state law (referencing specific sections).
• Vendee: the person or entity who entered into the contract for deed to purchase the property.
• Vendor: the seller under the contract for deed.
• Respondent: the person who holds an interest in the contract for deed and is identified as the perpetrator.
• Extinguished respondent interest: the respondent’s interest in the contract for deed that is removed by the court.
• Qualified third party: a licensed health care professional, a domestic abuse advocate, or a sexual assault counselor who can provide a supporting statement.
• Qualifying document: a valid document showing victim status (such as orders for protection, no-contact orders, court writings, or statements by law enforcement or qualified third parties).

Who can seek relief

• A victim of domestic abuse who is unmarried and has an interest in a contract for deed with the respondent can petition the court to extinguish the respondent’s interest.

How the petition works (Notice and contest)

• The petitioner must serve notice on both the respondent and the current vendor.
• A notice of lis pendens must be recorded or filed in the county where the property is located.
• After notice, the respondent and vendor have 90 days to contest the petition.

What must be in the notice

• The notice must include the property address, vendor name, vendees’ names, court case information, and a statement that the petition to extinguish the interest has been filed with a 90-day contest period.

Relief and standards for granting relief

• The petition must be granted if the respondent and vendor do not contest within 90 days, or if the petitioner proves by a preponderance of the evidence that:
  • the petitioner was subjected to domestic abuse, criminal sexual assault, sexual extortion, or harassment by the respondent, and
  • the respondent has ceased to physically occupy the property for six consecutive months, and
  • the respondent has made no monetary payments on the contract for six months.
• There is a presumption of such abuse if the respondent has been convicted of or received a stay of adjudication for certain listed offenses where the victim was the petitioner.

What happens when relief is granted (Summary real estate disposition judgment)

• The court must prepare a proposed summary real estate disposition judgment stating that the respondent’s interest is extinguished and of no further effect.
• After court approval and filing with the court administrator, certified copies of the judgment can be provided to parties upon request.
• The summary judgment must include details such as dates of contract, recordation, entry of judgment, party names, how service occurred, identifiers for the property, and the names of those awarded an interest and the exact interest awarded.
• The extinguished respondent’s interest is deemed revested in the petitioner, and the extinguished interest has no further effect as a vendee interest.
• The petitioner must file the summary judgment with the county recorder or registrar of titles as applicable.
• The clause binds the vendor and all vendees under the contract for deed.

Significance and effect on existing law

• The bill adds a new subdivision to establish a remedy to extinguish a perpetrator’s joint interest in a contract for deed when domestic abuse or related offenses are involved.
• It creates specific procedures (notices, lis pendens, and a petition process) and a defined form of relief (summary real estate disposition judgment) to finalize the extinguishment.
• It integrates protections for victims into real estate transactions, with formal steps to ensure clear title and record-keeping.

Relevant Terms contract for deed; extinguish; extinguished respondent interest; respondent; vendee; vendor; domestic abuse; criminal sexual assault; harassment; sexual extortion; qualified third party; qualifying document; order for protection; nocontact order; lis pendens; notice; petition; summary real estate disposition judgment; preponderance of the evidence; six-month abandonment period; notice of contest; Rule 5.02 (Minnesota Rules of Civil Procedure); court administrator; county recorder; registrar of titles.