This bill amends several sections of the Minnesota Statutes related to contracts for deed, specifically focusing on the definition and regulations surrounding "investor sellers." Key changes include the modification of the definition of "investor seller" to exclude certain family members and individuals who have owned and occupied the property as their primary residence for at least 12 months prior to the contract execution. Additionally, the bill introduces a new definition for "churning," which refers to the repeated execution and termination of contracts for deed by an investor seller. The bill also establishes a rebuttable presumption against investor sellers who engage in churning, defined by specific termination proceedings within a set timeframe.

The bill includes technical changes and clarifications, such as the requirement for investor sellers to disclose the purchase price and acquisition date of the property to the purchaser. It also specifies that notices related to contract terminations must be served in accordance with the law, regardless of any contrary provisions in the contract. The effective date for most provisions is set for August 1, 2025, while some sections become effective the day following final enactment. Overall, the bill aims to enhance consumer protection in real estate transactions involving contracts for deed by regulating investor sellers more stringently.

Statutes affected:
Introduction: 272.12, 559.21, 559A.01, 559A.03, 559A.04
1st Engrossment: 272.12, 559.21, 559A.01, 559A.03, 559A.04