Minnesota SF1962 modifies foreclosure laws by limiting due-on-sale clauses for certain property transfers.

Minnesota SF1962 amends state statutes to restrict the use of due-on-sale clauses in loans secured by residential real estate. Specifically, lenders are prohibited from enforcing these clauses in cases involving transfers due to a transfer-on-death deed, transfers by devise or operation of law upon a joint tenant's death, transfers to a borrower's spouse or children, transfers resulting from a dissolution of marriage, or transfers into an inter vivos trust where the borrower remains a beneficiary.

Minnesota SF1962 modifies foreclosure laws by limiting due-on-sale clauses for certain property transfers.

Minnesota SF1962 amends state statutes to restrict the use of due-on-sale clauses in loans secured by residential real estate. Specifically, lenders are prohibited from enforcing these clauses in cases involving transfers due to a transfer-on-death deed, transfers by devise or operation of law upon a joint tenant's death, transfers to a borrower's spouse or children, transfers resulting from a dissolution of marriage, or transfers into an inter vivos trust where the borrower remains a beneficiary.