New law modifies statutes governing tax-forfeited land sales

A new law extends protections for property in foreclosure in current law to tax-forfeited property, common interest communities and contracts for deed.

Effective July 1, 2021, the Department of Revenue must issue a quitclaim deed to the record owner upon receipt of the certification of the county auditor after tax-forfeited land has been sold.

The deed must state the record owner’s estate as grantee if a tax-forfeited sale is made to a personal representative, heir or devisee, and the owner is deceased at the time of the redemption period or certification.

A state deed must also name the assignee as the grantee if the owner at the time of the expiration of the redemption period assigns an installment contract to repurchase and the assignment is registered or recorded.

The law requires a quitclaim deed subject to an installment contract be sent to the county auditor, who must record it before forwarding it to the grantee. Failure to make an installment payment will constitute default, making the sale subject to cancellation.

Rep. Athena Hollins (DFL-St. Paul) and Sen. Mark Johnson (R-East Grand Forks) sponsor the law.

HF418/SF440*/CH7

SF0440* / HF0418 / CH7