Laws 2003, Chapter 5 - Real Property Law
Author:	Senator Thomas Neuville
Prepared by:	Kathleen Pontius, Senate Counsel (651/296-4394)
Date:	June 13, 2003

Section 1 amends the statute dealing with applications for torrens title to allow owners of multiple parcels of land to register the land in one application, as well as allowing multiple owners of separate parcels to join in one application to register title.

Sections 2 and 3 amend the statutes dealing with the form for a certificate of title to eliminate a requirement that the "affidavit of purchaser" be prepared and filed with the deed of torrens. This is intended to make it easier to repair sale papers and eliminate a document (the affidavit) that often contains errors. There is not a similar affidavit requirement for abstract land nor is it required in other jurisdictions that have a torrens land registration system.

Section 4 eliminates an obsolete reference to a "land registration docket," which was abolished by other legislation several years ago.

Section 5 amends a provision in the torrens law that allows a party with an unregistered interest to file a notice on the certificate of title in order to put the public on notice of that interest. Language is added clarifying that this claim is entitled to be recorded. A provision is included for notice to the registered owner by the party making the claim that it has been filed. A notice may not be used to avoid paying deed, mortgage registry, or real estate taxes. The registered owner or other party whose interest is affected may demand that the notice be discharged or require the party claiming interest to go to court to establish validity of the claim. This new provision is similar to torrens laws in other jurisdictions.

Sections 6 to 8 include other amendments in the torrens law, consistent with the changes made in section 5.

Sections 9 to 12 make amendments in chapter 508A (dealing with registration of land without court proceedings) that are parallel to the changes made in sections 1 to 8 in chapter 508 (registration with court proceedings).

Section 13 contains an effective date of August 1, 2003, for this article.

Section 1 amends the statute dealing with enforceability of a lien against real property to provide that an agreement extending the one-year time limit to assert an attorney lien on real property must be filed within one year after the filing of a notice of intention to claim a lien in order to be effective.

Section 2 adds a new provision dealing with situations where a seller grants a mortgage on real property that has already been sold on a recorded contract for deed. If the seller grants a mortgage, the mortgage does not encumber the buyer's interest once the buyer pays off the contract and obtains a deed from the seller. Under existing Minnesota case law, involuntary liens such as judgments and tax liens against a seller would not encumber the buyer's interest under similar circumstances.

Section 3 amends the law dealing with enforceability of an assignment of rents and profits to specify that the assignment expires when the ability to enforce the mortgage is barred by section 541.03 (which states that a mortgage ceases to be enforceable 15 years after its maturity or 15 years from the date of its recording if no maturity date is specified).

Section 4 contains the effective dates. Section 1 is effective the day following final enactment and applies to liens filed on or after August 1, 2002, which is when the underlying statute that is being amended took effect. Sections 2 and 3 apply to mortgage and assignments of rents and profits created before, on, or after August 1, 2003.

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