Subpart 1.
Subdivider's duties.
A. In a
transaction for the sale of land under the act in which taxes are to be paid by
either party, a subdivider shall:
(1) certify
that there are no taxes, other than current taxes, owing on the property
involved at the date of filing the statement of record, a consolidated
statement of record, or an amendment to either; and
(2) provide a form of escrow satisfactory to
the commissioner in accord with subpart
2 if part of the purchasers'
funds paid in or payable by the terms of the instruments disposing of the land
are to be used for payment of taxes.
B. In order that a purchaser will receive the
interest in lands contracted for, a subdivider shall place in an escrow
satisfactory to the commissioner sufficient funds to pay reasonably anticipated
tax bills on the property of a subdivision. If the subdivider apportions real
property taxes and requires a purchaser to pay such taxes in a lump sum or on a
periodic basis, the subdivider shall place in the escrow 100 percent of the sum
due.
Subp. 2.
Responsibilities not to be imposed on purchaser.
A purchaser is not responsible for payment of taxes or
assessments levied before the effective date of the purchaser's agreement with
a subdivider or agent, and the instruments evidencing the sale or disposition
of an interest in a land shall so state.
A purchaser shall not be assessed a service fee or be
required to pay a consideration for the assessment or allocation of taxes on
the land involved in the transaction.
Notes
Minn. R. agency 120, ch. 2810, REAL ESTATE PRACTICE, pt. 2810.3800
17 SR
1279
Statutory Authority: MS s
83.38
