New Minnesota law lets abuse victims remove co-buyer from contract for deed
Beginning July 1, 2026, Minnesota will allow victims of domestic violence, sexual assault or harassment to petition courts to remove a co-buyer's interest in a contract for deed.[1]
The petitioner must be the person making the home payments, and the alleged abuser must no longer live at the property.[1] If the respondent does not answer the petition within 21 days, the court is required to grant the removal; contested cases trigger a hearing.[1] The law applies only to contracts for deed entered into on or after July 1, 2026.[1] Rep. Kelly Moller, who represents District 40A in the north-central Twin Cities, sponsored the bill and required certification by a qualified third party to support petitions.[1]
County governments recorded 47,524 contracts for deed in Minnesota from 2005 through 2022, the fourth-highest total among U.S. states; about three-quarters involved residential properties.
The mainstream summary does not address the broader context of housing instability faced by survivors of domestic violence. Economic abuse, which can include financial control and interference with housing payments, creates significant barriers for victims trying to leave abusive situations. A 2026 study published in the Journal of Applied Social Psychology found that experiences of economic abuse are linked to increased housing insecurity and homelessness risk among mothers with young children. This highlights the urgent need for legislative measures like the new law, which aims to provide a legal pathway for victims to regain control over their housing situation.
Additionally, while the mainstream account mentions the number of contracts for deed recorded in Minnesota, it fails to discuss the inherent vulnerabilities of these financing arrangements. Contracts for deed often lack the regulatory protections found in traditional mortgages, making them susceptible to predatory practices. ProPublica has reported that such contracts disproportionately affect communities like Somali Minnesotans, creating financial traps where buyers risk losing all equity with little recourse. This structural issue amplifies the risks for abuse victims, particularly when they are tied to joint obligations with their abusers, complicating their ability to escape abusive situations.[2][3][4].
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📊 Relevant Data
County governments recorded 47,524 contracts for deed in Minnesota from 2005 through 2022, the fourth-highest total among U.S. states; about three-quarters involved residential properties.
Despite Risks, Thousands of Minnesotans Buy Homes Using Contracts for Deed — The Pew Charitable Trusts
📌 Key Facts
- Beginning July 1, 2026, victims of domestic violence, sexual assault or harassment can petition Minnesota courts to end another person’s interest in a contract for deed.
- The petitioner must be the one making the home payments and the alleged abuser must no longer reside at the property.
- If the respondent does not answer the petition within 21 days, the court is required to grant the removal; contested cases trigger a hearing.
- The law only applies to contracts for deed agreements entered into on or after July 1, 2026.
- The bill is sponsored by Rep. Kelly Moller, who represents District 40A in the north‑central Twin Cities, and mandates certification by a qualified third party to support the petition.
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