Teresa is selling her lake cabin in Cook County to David using a Minnesota contract for deed. David has made payments for three years but has recently missed two consecutive monthly payments. Under Minn. Stat. § 559.21, all of the following statements about Teresa's cancellation rights are accurate EXCEPT:
Correct Answer
D) David has a statutory reinstatement period of 60 days after service of the cancellation notice to cure the default
Option B is the EXCEPT answer because it states an incorrect reinstatement period. Under Minn. Stat. § 559.21, the statutory reinstatement (cure) period for a contract for deed cancellation in Minnesota is generally 60 days for residential property where the buyer has paid less than 50% of the purchase price, and 90 days where the buyer has paid 50% or more of the purchase price (or for certain other qualifying conditions). Since David has made three years of payments, it is likely that the applicable cure period would be longer than a flat 60 days — but more critically, the statement that 60 days is the universal cure period is inaccurate. The correct baseline periods under § 559.21 are 30 days (for certain commercial/non-residential), 60 days (residential, less than 50% paid), or 90 days (residential, 50% or more paid). Stating 60 days as a blanket rule for all situations is the inaccuracy tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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