Updates, changes to contract for deed statutes

A largely technical new law updates terms, definitions and notices for contracts for deed, i.e., real estate contracts between buyers and sellers of real property in which sellers provide buyers financing in the purchase and the buyers repay the resulting loan in installments.

Effective May 1, 2025, the law makes a technical change to state statutes on conveyances and taxes paid by removing a reference to determine the time frame for taxes owed related to a contract for deed presented to a county auditor for transfer. It also updates a reference to contract for deed statutes defining an “investor seller.”

The remainder of the law takes effect Aug,1, 2025.

It updates and makes a technical correction to the term “churning” in contract for deed statutes and adds a definition of family member in the same statutes.

A definition of “investor seller” is updated for the application of contract for deed laws and adds two exemptions to the term investor seller: a state agency or political subdivision and a legal entity who has a single natural person as an owner and meets the criteria of the exceptions.

And the law updates the terms in a notice that must be sent to a purchaser for a contract for deed regarding a disclosure of price paid by investor seller to acquire property.

Rep. Anquam Mahamoud (DFL-Mpls) and Sen. Zaynab Mohamed (DFL-Mpls) are the sponsors.

HF1792*/SF505/CH9

HF1792* / SF0505 / CH9