This bill establishes a legal remedy for victims of domestic abuse or sexual assault to extinguish a joint interest in a contract for deed held by the perpetrator. It introduces new provisions in Minnesota Statutes, specifically under section 500.191, which outlines the definitions of key terms such as "contract for deed," "domestic abuse," and "qualified third party." The bill allows victims to petition the court to extinguish the perpetrator's interest in the contract, provided they meet certain criteria, including the submission of a qualifying document that verifies their victim status. The court must grant the petition if the respondent fails to contest it within 90 days or if the victim proves their case by a preponderance of the evidence.

Additionally, the bill amends Minnesota Statutes 2024, section 559.21, to clarify that a respondent whose interest has been extinguished under the new law will not be considered a purchaser and will have no obligations related to the contract for deed. The effective date for these provisions is set for August 1, 2027, applying to all petitions filed and served on or after that date, regardless of when the contracts for deed were entered into.

Statutes affected:
Introduction: 559.21