| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to real property; prohibiting common interest communities from charging |
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| 3 | 3 | | 1.3 fees for estoppel letters or certificates; amending Minnesota Statutes 2024, section |
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| 4 | 4 | | 1.4 513.73, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter |
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| 5 | 5 | | 1.5 515B. |
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| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 7 | 7 | | 1.7 Section 1. Minnesota Statutes 2024, section 513.73, subdivision 3, is amended to read: |
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| 8 | 8 | | 1.8 Subd. 3.Private transfer fee."Private transfer fee" means a fee or charge required by |
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| 9 | 9 | | 1.9a private transfer fee obligation and payable upon the transfer of an interest in real property, |
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| 10 | 10 | | 1.10or payable for the right to make or accept the transfer, regardless of whether the fee or |
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| 11 | 11 | | 1.11charge is a fixed amount or is determined as a percentage of the value of the property, the |
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| 12 | 12 | | 1.12purchase price, or other consideration given for the transfer. The following are not private |
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| 13 | 13 | | 1.13transfer fees for purposes of this section: |
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| 14 | 14 | | 1.14 (1) consideration payable by the grantee to the grantor for the interest in real property |
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| 15 | 15 | | 1.15being transferred, including any subsequent additional consideration for the property payable |
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| 16 | 16 | | 1.16by the grantee based upon any subsequent appreciation, development, or sale of the property, |
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| 17 | 17 | | 1.17provided that the additional consideration is payable on a onetime basis only, and the |
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| 18 | 18 | | 1.18obligation to make the payment does not bind successors in title to the property. For the |
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| 19 | 19 | | 1.19purposes of this clause, an interest in real property may include a separate mineral estate |
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| 20 | 20 | | 1.20and its appurtenant surface access rights; |
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| 21 | 21 | | 1.21 (2) commission payable to a licensed real estate broker for the transfer of real property |
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| 22 | 22 | | 1.22pursuant to an agreement between the broker and the grantor or the grantee, including any |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | 25-02774 as introduced01/27/25 REVISOR JSK/HL |
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| 25 | 25 | | SENATE |
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| 26 | 26 | | STATE OF MINNESOTA |
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| 27 | 27 | | S.F. No. 1253NINETY-FOURTH SESSION |
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| 28 | 28 | | (SENATE AUTHORS: PHA, Boldon and Lucero) |
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| 29 | 29 | | OFFICIAL STATUSD-PGDATE |
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| 30 | 30 | | Introduction and first reading02/10/2025 |
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| 31 | 31 | | Referred to Judiciary and Public Safety 2.1subsequent additional commission for that transfer payable by the grantor or the grantee |
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| 32 | 32 | | 2.2based upon any subsequent appreciation, development, or sale of the property; |
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| 33 | 33 | | 2.3 (3) interest, charges, fees, or other amounts payable by a borrower to a lender pursuant |
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| 34 | 34 | | 2.4to a loan secured by a mortgage against real property, including but not limited to a fee |
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| 35 | 35 | | 2.5payable to the lender for consenting to an assumption of the loan or a transfer of the real |
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| 36 | 36 | | 2.6property subject to the mortgage, fees, or charges payable to the lender for estoppel letters |
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| 37 | 37 | | 2.7or certificates, and shared appreciation interest or profit participation or other consideration |
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| 38 | 38 | | 2.8and payable to the lender in connection with the loan; |
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| 39 | 39 | | 2.9 (4) rent, reimbursement, charge, fee, or other amount payable by a lessee to a lessor |
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| 40 | 40 | | 2.10under a lease, including but not limited to a fee payable to the lessor for consenting to an |
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| 41 | 41 | | 2.11assignment, subletting, encumbrance, or transfer of the lease; |
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| 42 | 42 | | 2.12 (5) consideration payable to the holder of an option to purchase an interest in real property |
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| 43 | 43 | | 2.13or the holder of a right of first refusal or first offer to purchase an interest in real property |
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| 44 | 44 | | 2.14for waiving, releasing, or not exercising the option or right upon the transfer of the property |
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| 45 | 45 | | 2.15to another person; |
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| 46 | 46 | | 2.16 (6) a tax, fee, charge, assessment, fine, or other amount payable to or imposed by a |
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| 47 | 47 | | 2.17governmental authority; |
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| 48 | 48 | | 2.18 (7) a fee, charge, assessment, fine, or other amount payable to a homeowner's |
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| 49 | 49 | | 2.19condominium, cooperative, mobile home, or property owner's association pursuant to a |
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| 50 | 50 | | 2.20declaration or covenant or law applicable to the association, including but not limited to |
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| 51 | 51 | | 2.21fees or charges payable for estoppel letters or certificates issued by the association or its |
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| 52 | 52 | | 2.22authorized agent; |
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| 53 | 53 | | 2.23 (8) a fee, a charge, an assessment, dues, a contribution, or other amount pertaining to |
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| 54 | 54 | | 2.24the purchase or transfer of a club membership relating to real property owned by the member, |
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| 55 | 55 | | 2.25including but not limited to any amount determined by reference to the value, purchase |
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| 56 | 56 | | 2.26price, or other consideration given for the transfer of the real property; and |
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| 57 | 57 | | 2.27 (9) a mortgage from the purchaser of real property granted to the seller or to a licensed |
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| 58 | 58 | | 2.28real estate broker. |
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| 59 | 59 | | 2.29 Sec. 2. [515B.1-118] ESTOPPEL LETTERS OR CERTIFICATES; FEES |
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| 60 | 60 | | 2.30PROHIBITED. |
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| 61 | 61 | | 2.31 An association or the association's authorized agent may not directly or indirectly charge |
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| 62 | 62 | | 2.32a fee for the preparation or delivery of an estoppel letter or certificate. Unauthorized fees |
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| 63 | 63 | | 2.33or charges issued in violation of this section are void. |
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| 64 | 64 | | 2Sec. 2. |
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| 65 | 65 | | 25-02774 as introduced01/27/25 REVISOR JSK/HL |
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