https://minnesotalawyer.com/statutes/chapter-559a/Recent content in Chapter 559A — Disclosures on MinnesotaLawyer.comHugoen-ushttps://minnesotalawyer.com/statutes/chapter-559a/559a.01/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-559a/559a.01/This section defines the key terms used in Minnesota’s new law protecting residential contract-for-deed buyers from investor sellers. An ‘investor seller’ is a business or person who sells residential property on contract for deed but did not live there as a primary residence. Important protections in this chapter apply only when an investor seller (not a homeowner selling their own home or a family member) is the seller. ‘Churning’ means a pattern of repeatedly selling properties on contract for deed and then canceling those contracts.https://minnesotalawyer.com/statutes/chapter-559a/559a.02/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-559a/559a.02/This section limits the scope of Chapter 559A to residential properties sold by investor sellers on contract for deed. If a contract for deed involves commercial property or a seller who is not an investor seller, the chapter does not apply. Sellers who are not covered can include a simple statement in the contract — either ‘The property is not residential real property’ or ‘The seller is not an investor seller’ — as evidence that the chapter does not apply.https://minnesotalawyer.com/statutes/chapter-559a/559a.03/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-559a/559a.03/This section requires investor sellers to give residential contract-for-deed buyers important written disclosures at least 10 days before signing the contract. The disclosures must explain balloon payments (large lump-sum amounts due), the price the investor seller originally paid for the property, other key contract terms, and a general warning about contract-for-deed risks. An amortization schedule showing how each payment is split between principal and interest must also be provided.https://minnesotalawyer.com/statutes/chapter-559a/559a.04/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-559a/559a.04/This section establishes important rights and requirements for investor sellers. Investor sellers cannot sell property on contract for deed subject to a mortgage with a due-on-sale clause unless they get the mortgage holder’s consent. Buyers have the right to cancel a purchase agreement within 10 days of receiving the required disclosures. Investor sellers must also provide annual accounting statements when asked, refund down payments over 10% if a contract is canceled within 48 months, and are prohibited from churning — repeatedly canceling contracts to strip buyer equity.https://minnesotalawyer.com/statutes/chapter-559a/559a.05/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-559a/559a.05/This section provides legal remedies when investor sellers violate the disclosure or anti-churning requirements of Chapter 559A. A buyer can bring a lawsuit within two years to rescind the contract and recover all amounts paid, plus the value of improvements, actual damages, and attorney fees. If a mortgage holder forecloses because the investor seller failed to get consent, the buyer can recover all payments made plus attorney fees. Statutory damages of up to $1,000 per violation are also available.