Senate passes real property bill updating partition rules, eminent‑domain appeals and transfer‑on‑death deeds

The Minnesota Senate on Feb. 10 passed Senate File 202, a real‑property bill that updates the state’s partition rules, clarifies procedures for eminent‑domain appeals and makes limited retroactive adjustments to transfer‑on‑death deeds. The secretary recorded 62 ayes and 0 nays on third reading; the bill passed and its title was agreed to.

A senator presenting the bill told colleagues the last major revision to the partition statute dated to 1905 and described the changes as a modernization meant to make partition proceedings less costly and more efficient for property owners. The presenter said the bill, sponsored by the Minnesota State Bar Association’s real property section, would among other things allow courts to appoint a single referee instead of the current three and permit a realtor to serve as a referee and be compensated by a traditional realtor commission.

The bill also revises the default treatment of partition actions: under the presenter’s floor description, partition‑in‑kind would no longer be the statutory default, which the presenter said will likely result in more partitions by sale in situations where physical division is impractical. The presenter described that change as reflecting how parties often resolve co‑ownership disputes in practice.

Nut graf: Supporters said Senate File 202 modernizes long‑standing procedures to reduce cost and complexity for property owners and courts. The bill passed the Senate on a unanimous recorded vote, 62‑0, according to the chamber transcript.

Eminent‑domain and transfer‑on‑death deed provisions

Floor remarks described two additional, discrete components of the bill. First, the bill clarifies how to start an appeal from a commissioner’s panel decision that sets damages in a condemnation (eminent‑domain) case: service on appeals may be limited to those parcels that are actually the subject of the appeal and the bill authorizes electronic service in those appeals. The presenter said this is intended to reduce cost and confusion when condemnation proceedings involve many parcels but only a few are on appeal.

Second, the bill contains a cleanup to the 2024 changes on transfer‑on‑death deeds, making those earlier amendments retroactive to correct an oversight from last year. The presenter noted one insurance provision negotiated separately with the insurance federation is not being made retroactive; that portion remains unchanged.

Sponsor acknowledgments and floor reaction

The author thanked members of the Minnesota State Bar Association’s real property section and singled out Kevin Dunlevy for years of pro bono assistance to the Bar Association and to legislators. Questions from colleagues were limited on the floor; one senator said the bill was a “good bill” and expressed support. The Senate proceeded to third reading, and the secretary recorded 62 ayes and 0 nos.

Action

- Senate File 202: third reading and passage recorded as 62 ayes, 0 nos; bill passed on Feb. 10 (transcript).

Ending

Supporters called the bill a modernization aimed at reducing the time and expense of partition, eminent‑domain appeals and administration of transfer‑on‑death deeds. The transcript does not include enrolled‑text language or subsequent enactment steps; further implementation details will be available in the bill text and committee analyses.