The bill amends Minnesota Statutes 2024, section 58.13, by adding a new subdivision that limits the enforcement of due-on-sale clauses by lenders in specific circumstances related to residential real estate. Under the new provisions, lenders are prohibited from exercising a due-on-sale clause in cases such as transfers via a transfer-on-death deed, transfers upon the death of a joint tenant, transfers to a borrower's spouse or children, transfers resulting from divorce or legal separation, and transfers into an inter vivos trust where the borrower remains a beneficiary. However, this limitation does not apply to reverse mortgages.

Additionally, the bill establishes a private right of action for individuals who are aggrieved by violations of this new subdivision, allowing them to seek equitable relief, reasonable attorney fees, and costs. This provision aims to provide homeowners with legal recourse if their rights are infringed upon due to the improper enforcement of due-on-sale clauses.

Statutes affected:
Introduction: 58.13