SF559

Purpose

This bill changes Minnesota law to help property owners remove certain discriminatory restrictions from their property titles. It sets up a process to discharge restrictive covenants related to protected classes at no cost to homeowners, making those restrictions permanently ineffective on the title.

Main Provisions

• A property owner may record, at no cost, the statutory form (provided in subdivision 6) in the county recorder’s office to discharge and permanently remove a restrictive covenant related to a protected class from the property title.
• The discharge of the covenant is valid and enforceable under Minnesota law once the statutory form is properly recorded.
• The remaining parts of the original instrument containing the restrictive covenant still apply in other respects; the document is treated as if the removed covenant were never there.
• A restrictive covenant that affects a protected class is void regardless of whether the statutory form has been recorded.
• This provision does not apply to real property registered under chapters 508 and 508A.

Significant Changes to Existing Law

• Amends Minnesota Statutes 2024 section 507.18, subdivision 5, to create a formal method for permanently discharging protected-class restrictive covenants from title at no cost.
• Establishes that such covenants are void in effect, even if not removed via the statutory form.
• Requires recording in the county recorder’s office and specifies the use of the statutory form referenced in subdivision 6.
• Limits the new process to standard real property titles and excludes certain property types covered by chapters 508 and 508A.

Practical Impact

• Helps remove barriers tied to protected characteristics in housing by allowing clean title without discriminatory covenants.
• Clarifies that the removal does not rewrite other parts of the original agreement, which may continue to govern other aspects of the property to the extent permitted.
• Reduces cost barriers for homeowners seeking to clear their titles of outdated discriminatory restrictions.

Relevant Terms - restrictive covenant - protected class - discharge of restrictive covenants - title / real property title - record / recordation - county recorder - statutory form - subdivision 6 - Minnesota Statutes 2024 section 507.18 subdivision 5 - void - valid and enforceable - instrument - at no cost - permanently remove/current title after discharge - property not subject to chapters 508 and 508A