Minnesota Contract for Deed (2025): Recording, 60/90-Day Cancellation & New Rules
Sep 3
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Updated Sept. 12, 2025
A Minnesota Contract for Deed (CFD) can be a practical way to buy or sell a home or small property—but the 2025 rules changed the playbook. For residential deals, the seller must record the contract within 4 months (and provide a recordable copy at signing), and failing to do so can block statutory cancellation. Most cancellations still require 60 days’ notice, but investor sellers must give 90 days, and newer contracts add cure costs like 2% of the default plus $1,000 in attorney’s fees. This guide explains the recording steps, cancellation timelines, and buyer protections, so you can structure a CFD that’s compliant and closing-ready.
The 30-second answer: Record it.
For residential deals, the seller must record the contract for deed within 4 months of signing and pay any delinquent taxes needed to allow recording. If the seller doesn’t make a good-faith effort to record, they can’t use Minnesota’s statutory cancellation shortcut. Cancellation timelines. For most modern contracts, sellers must give at least 60 days’ notice to cure; investor sellers must provide 90 days’ notice. To stop cancellation, the buyer typically must (1) cure the payment default, (2) pay service costs, (3) pay 2% of the amount then in default, and (4) pay $1,000 toward the seller’s attorney’s fees for contracts executed on/after Aug. 1, 2024.
New buyer protections: When an investor seller is involved in a residential CFD, Minnesota now requires 10-day pre-contract disclosures, extra notices, limits “churning,” and adds remedies for violations.
Quick compare of changes (from MN Revisor's Office)
Topic | Old rule (before 2024/2025 changes) | 2025 rule | Practical effect |
Who must record a residential Contract for Deed (CFD)? | Buyer (vendee) generally responsible to record within 4 months; seller had no explicit statutory duty to record or deliver a recordable copy. | Seller must record within 4 months, deliver a recordable copy at signing, and pay any delinquent taxes needed to allow recording (buyer must reasonably cooperate). | Burden shifts to seller; front-end compliance matters. |
If the CFD isn’t recorded (residential) | Lack of recording did not automatically bar statutory cancellation in most cases. | Statutory cancellation is barred unless the seller made a good-faith effort to correct and record. Otherwise, seller likely needs judicial action. | Strong incentive to record; more leverage for buyers when a seller fails to comply. |
Cancellation timeline | 60 days to cure for most post-1985 contracts (older forms sometimes 30 days); no special longer period for investor sellers. | 60 days in most cases; 90 days if the seller is an investor seller in a residential CFD. | Extra time for buyers in investor-seller residential deals. |
Amounts required to cure | Past-due sums + costs of service; no statutory 2% charge; lower fixed attorney’s fees (commonly ~$250) under prior law. | Past-due sums + costs of service + 2% of the amount then in default + $1,000 toward seller’s attorney’s fees (for contracts executed on/after Aug 1, 2024). | Curing is more expensive under newer contracts; budget accordingly. |
Investor-seller residential protections | No specific 10-day pre-contract disclosure/waiting period; fewer statutory anti-churning and due-on-sale protections/remedies. | 10-day pre-contract disclosures & waiting period; anti-churning limits; duties if there’s a due-on-sale mortgage; statutory remedies for violations. | More compliance steps for investor sellers; stronger buyer protections. |
How Minnesota cancellation works
Seller serves a written notice identifying the default.
Clock starts: normally 60 days; 90 days if it’s an investor-seller residential deal.
Buyer can stop cancellation by paying all past-due sums, service costs, 2% of the amount in default, and the statutory attorney’s-fees amount (for newer contracts).
If the seller never recorded a residential CFD and didn’t make a good-faith effort to fix it, they can’t use statutory cancellation (they’d have to go to court).
Recording checklist (residential CFD)
Give the buyer a recordable copy at signing.
Record the contract within 4 months in the correct county.
Pay delinquent taxes needed for recording.
If a recording defect pops up, make a good-faith effort to correct it within 4 months (and the buyer must reasonably cooperate).
Common mistakes we see
Assuming the buyer must record. Not for residential CFDs—it’s on the seller now.
Using the 60-day form for an investor-seller deal. You’ll likely need 90 days.
Skipping the 10-day disclosure window in investor-seller residential sales. That can trigger rescission and damages.
Trying to cancel when the CFD isn’t recorded. Statutory cancellation may be off the table.
Mini-FAQ
What’s an “investor seller”?
Minnesota defines it in statute (think non-owner-occupant sellers regularly doing CFDs). Why it matters: 90-day cancellation, required disclosures, and anti-churning rules apply.
Does the 10-day waiting period apply to all CFDs?
No—investor-seller residential transactions have the 10-day pre-contract disclosure/notice window. Traditional one-off non-investor deals aren’t in that bucket.
Is the buyer still responsible for recording?
The statute still says “vendee shall record” for all CFDs, but for residential CFDs, the seller now has explicit duties (deliver a recordable copy, pay needed taxes, and record). If the seller properly performs those duties, the buyer’s older obligation is satisfied.
Bottom line
If you’re using (or considering) a contract for deed in Minnesota, treat recording as mandatory, use the proper cancellation timeline, and follow the new investor-seller rules for residential property. A quick front-end compliance check can save months of delay—or a failed cancellation—later.
Sources:
https://www.revisor.mn.gov/statutes/cite/507.235/pdf
https://www.revisor.mn.gov/statutes/cite/559.21
https://www.revisor.mn.gov/statutes/cite/559/pdf
https://www.revisor.mn.gov/statutes/2024/cite/559A.03
https://www.revisor.mn.gov/statutes/2024/cite/559A.04
https://www.revisor.mn.gov/statutes/cite/559A
https://assets.senate.mn/summ/bill/2024/0/SF3489/SF%203489%20Bill%20Summary%201e.pdf
https://www.revisor.mn.gov/laws/2025/0/Session%2BLaw/Chapter/9/
https://mn.gov/commerce/business/real-estate/contract-deed/index.jsp
https://www.ag.state.mn.us/Consumer/Publications/ContractForDeed.asp
This post is general information, not legal advice. For specific documents, timelines, and notices, we can prepare Minnesota-compliant forms and file the recording for you.
