Minnesota HF1224 modifies foreclosure by sale provisions, limiting due-on-sale clauses in certain transfers of residential real estate.

Minnesota HF1224 amends the state's real property laws by limiting the use of due-on-sale clauses in specific circumstances. This bill prohibits lenders from enforcing such clauses when the transfer of residential real estate occurs through a transfer-on-death deed, by devise, upon a joint tenant's death, to a borrower's spouse or children, or due to a dissolution of marriage or legal separation. Additionally, transfers into an inter vivos trust, where the borrower remains a beneficiary without transferring occupancy rights, are also exempt.

Minnesota HF1224 modifies foreclosure by sale provisions, limiting due-on-sale clauses in certain transfers of residential real estate.

Minnesota HF1224 amends the state's real property laws by limiting the use of due-on-sale clauses in specific circumstances. This bill prohibits lenders from enforcing such clauses when the transfer of residential real estate occurs through a transfer-on-death deed, by devise, upon a joint tenant's death, to a borrower's spouse or children, or due to a dissolution of marriage or legal separation. Additionally, transfers into an inter vivos trust, where the borrower remains a beneficiary without transferring occupancy rights, are also exempt.