This Minnesota bill (H.F. No. 1224), authored by Representative Freiberg, proposes limitations on the enforcement of due-on-sale clauses in certain real estate transactions. It seeks to amend Minnesota Statutes 2024, section 58.13, by adding a new subdivision prohibiting lenders from invoking due-on-sale clauses in specific circumstances involving residential real estate, including:

1. Transfers through a transfer-on-death deed to a beneficiary.
2. Transfers due to the death of a joint tenant.
3. Transfers where the borrower's spouse or children become owners.
4. Transfers resulting from divorce, legal separation, or property settlement where the borrower’s spouse becomes an owner.
5. Transfers into an inter vivos trust where the borrower remains a beneficiary and occupancy rights are not affected.

The bill explicitly states that these limitations do not apply to reverse mortgages. Additionally, it grants individuals affected by violations of this provision a private right of action, allowing them to seek equitable relief, reasonable attorney fees, and legal costs.