Subdivision 1.No notice.

A recital of the existence of an unrecorded mortgage in an instrument:

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Terms Used In Minnesota Statutes 507.332

  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • purchaser: as used in this chapter , embraces every person to whom any estate or interest in real estate is conveyed for a valuable consideration and every assignee of a mortgage, lease, or other conditional estate. See Minnesota Statutes 507.01
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44

(1) that affects title to real property and

(2) is recorded with the county recorder of the county where the real property is located,

is not actual or constructive notice to a subsequent purchaser or encumbrancer once five years have passed since the date of the instrument containing the recital, unless the conditions in subdivision 2 are met.

Subd. 2.Notice.

If, in the circumstances described in subdivision 1, an action to foreclose the unrecorded mortgage was commenced and a notice of pendency or notice of lis pendens was recorded during the five-year period, then, the recital is actual or constructive notice of the unrecorded mortgage to a subsequent purchaser or encumbrancer of the real property.

Subd. 3.Foreclosure period unaffected.

This section does not limit or extend the period, set out in section 541.03, to bring an action to foreclose a mortgage.

Subd. 4.If lis pendens before March 1995.

This section does not affect a proceeding to foreclose a mortgage pending on August 1, 1994, or to be commenced in a court of this state if, before March 1, 1995, a notice of lis pendens has been recorded in the office of the county recorder or filed in the office of the registrar of titles.