The bill amends various sections of the Minnesota Statutes related to contracts for deed, specifically modifying the definition of "investor seller" and making technical changes. Key changes include the removal of the term "within four months of the execution of the contract for deed" from section 272.12, which clarifies the conditions under which the county auditor must ascertain delinquent taxes before recording a deed. Additionally, the definition of "investor seller" in section 559A.01 is updated to replace the specific familial terms with the broader term "family member," and it introduces new provisions regarding the disclosure of the purchase price paid by the investor seller to acquire property.

The bill also establishes a prohibition against "churning," which is defined as the act of an investor seller repeatedly executing and terminating contracts for deed. It sets forth conditions under which an investor seller is presumed to have engaged in churning, specifically if they have completed multiple termination proceedings within a specified timeframe. The effective dates for various sections are also included, with some provisions taking effect immediately and others set for August 1, 2025. Overall, the bill aims to enhance consumer protection in real estate transactions involving contracts for deed.

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