HF1224
Postponement of foreclosure by sale provisions modified.
Legislative Session 94 (2025-2026)
Related bill: SF1962
AI Generated Summary
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:
- Transfers through a transfer-on-death deed to a beneficiary.
- Transfers due to the death of a joint tenant.
- Transfers where the borrower's spouse or children become owners.
- Transfers resulting from divorce, legal separation, or property settlement where the borrower’s spouse becomes an owner.
- 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.
Past committee meetings
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Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 20, 2025 | House | Action | Introduction and first reading, referred to | Judiciary Finance and Civil Law | |
| March 24, 2025 | House | Action | Committee report, to adopt as amended and re-refer to | Commerce Finance and Policy | |
| April 07, 2025 | House | Action | Committee report, to adopt | ||
| April 07, 2025 | House | Action | Second reading | ||
| House | Action | House rule 4.20, interim disposition of bills, returned to | Commerce Finance and Policy |
Meeting documents
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Bill information comes from public records published by the Office of the Revisor of Statutes, the Minnesota House and the Minnesota Senate. AI summaries are written by MinneSlate and are not official. MinneSlate is independent and is not affiliated with the State of Minnesota or the Minnesota Legislature.