1.1 A bill for an act
1.2 relating to real property; prohibiting common interest communities from charging
1.3 fees for estoppel letters or certificates; amending Minnesota Statutes 2024, section
1.4 513.73, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter
1.5 515B.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2024, section 513.73, subdivision 3, is amended to read:
1.8 Subd. 3.Private transfer fee."Private transfer fee" means a fee or charge required by
1.9a private transfer fee obligation and payable upon the transfer of an interest in real property,
1.10or payable for the right to make or accept the transfer, regardless of whether the fee or
1.11charge is a fixed amount or is determined as a percentage of the value of the property, the
1.12purchase price, or other consideration given for the transfer. The following are not private
1.13transfer fees for purposes of this section:
1.14 (1) consideration payable by the grantee to the grantor for the interest in real property
1.15being transferred, including any subsequent additional consideration for the property payable
1.16by the grantee based upon any subsequent appreciation, development, or sale of the property,
1.17provided that the additional consideration is payable on a onetime basis only, and the
1.18obligation to make the payment does not bind successors in title to the property. For the
1.19purposes of this clause, an interest in real property may include a separate mineral estate
1.20and its appurtenant surface access rights;
1.21 (2) commission payable to a licensed real estate broker for the transfer of real property
1.22pursuant to an agreement between the broker and the grantor or the grantee, including any
1Section 1.
25-02774 as introduced01/27/25 REVISOR JSK/HL
SENATE
STATE OF MINNESOTA
S.F. No. 1253NINETY-FOURTH SESSION
(SENATE AUTHORS: PHA, Boldon and Lucero)
OFFICIAL STATUSD-PGDATE
Introduction and first reading02/10/2025
Referred to Judiciary and Public Safety 2.1subsequent additional commission for that transfer payable by the grantor or the grantee
2.2based upon any subsequent appreciation, development, or sale of the property;
2.3 (3) interest, charges, fees, or other amounts payable by a borrower to a lender pursuant
2.4to a loan secured by a mortgage against real property, including but not limited to a fee
2.5payable to the lender for consenting to an assumption of the loan or a transfer of the real
2.6property subject to the mortgage, fees, or charges payable to the lender for estoppel letters
2.7or certificates, and shared appreciation interest or profit participation or other consideration
2.8and payable to the lender in connection with the loan;
2.9 (4) rent, reimbursement, charge, fee, or other amount payable by a lessee to a lessor
2.10under a lease, including but not limited to a fee payable to the lessor for consenting to an
2.11assignment, subletting, encumbrance, or transfer of the lease;
2.12 (5) consideration payable to the holder of an option to purchase an interest in real property
2.13or the holder of a right of first refusal or first offer to purchase an interest in real property
2.14for waiving, releasing, or not exercising the option or right upon the transfer of the property
2.15to another person;
2.16 (6) a tax, fee, charge, assessment, fine, or other amount payable to or imposed by a
2.17governmental authority;
2.18 (7) a fee, charge, assessment, fine, or other amount payable to a homeowner's
2.19condominium, cooperative, mobile home, or property owner's association pursuant to a
2.20declaration or covenant or law applicable to the association, including but not limited to
2.21fees or charges payable for estoppel letters or certificates issued by the association or its
2.22authorized agent;
2.23 (8) a fee, a charge, an assessment, dues, a contribution, or other amount pertaining to
2.24the purchase or transfer of a club membership relating to real property owned by the member,
2.25including but not limited to any amount determined by reference to the value, purchase
2.26price, or other consideration given for the transfer of the real property; and
2.27 (9) a mortgage from the purchaser of real property granted to the seller or to a licensed
2.28real estate broker.
2.29 Sec. 2. [515B.1-118] ESTOPPEL LETTERS OR CERTIFICATES; FEES
2.30PROHIBITED.
2.31 An association or the association's authorized agent may not directly or indirectly charge
2.32a fee for the preparation or delivery of an estoppel letter or certificate. Unauthorized fees
2.33or charges issued in violation of this section are void.
2Sec. 2.
25-02774 as introduced01/27/25 REVISOR JSK/HL