- June 12, 2014
- All Minnesota Issuing Offices
- UNDERWRITING - Redeeming Foreclosed Property by Payment of Real Estate Taxes
Minnesota Statute 272.45 provides that “…any past due or delinquent tax on land…paid by any occupant, tenant, or person with an interest in the land…or a person acting on that person’s behalf…” shall become a lien on the land in favor of the party paying such tax upon the filing of a notice thereof in the land records of the county where the property is located. Because lienholders have the right under the foreclosure statutes to redeem the property if the owner does not, a party in compliance with 272.45 may exercise such right as provided by statute.
Please note however, that a party seeking to avail themselves of this statute must have some interest in the land or be acting on behalf of someone with an interest. Absent such an interest or agency, the statute does not apply and no lien is created notwithstanding the fact that the party may have in fact paid the tax.
Consequently, any attempted redemption of any foreclosed property through the application of section 272.45 is not legally effective and cannot be insured. This is true even if the party may have received a certificate of redemption from either the holder of the Certificate of Sale or the sheriff. Title would remain in the holder of the Certificate of Sale and the redemption would be a nullity, i.e. have no effect whatsoever. If you are confronted with this scenario, please contact a Stewart underwriter.
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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.