Bill > SF505

This bill modifies legal provisions related to contracts for deed, specifically focusing on defining and regulating "investor sellers" in real estate transactions. The bill introduces a new definition for "family member" and makes several important changes to how investor sellers are identified and regulated. Key provisions include expanding the definition of who is not considered an investor seller (such as individuals who have lived in a property, family members, certain trusts, banks, and state agencies), creating rules to prevent "churning" (repeatedly executing and terminating contracts for deed), and requiring investor sellers to disclose the purchase price and acquisition date of a property when selling via contract for deed. The bill also specifies that if an investor seller's interest is transferred to someone who doesn't meet the exemption criteria, that new holder will be considered an investor seller. Most of the bill's provisions will become effective on August 1, 2025, and aim to provide more transparency and protection for buyers in contract for deed transactions by creating stricter standards for sellers and requiring more detailed disclosures about property ownership and transaction history.

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https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0505&ssn=0&y=2025