3.0 HRSR 12-07-2015 - Laserfiche WebLink

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RELEVANT LINKS: Minn.Stat,§115B.03,subds. Although there are some limited circumstances under state law where a city 3-9. will not be held responsible for clean-up costs,these are exceptions to the general rule that an owner of property is responsible for clean-up costs. Further, an exemption from responsibility under state law does not mean a city would be exempt from these costs under federal law. A city should consult its attorney to verify any exemption from clean-up costs before acquiring title to any contaminated property. B. Deed restrictions Deed restrictions, also known as restrictive covenants, are conditions placed on the use of land by a previous owner. These restrictions are imposed on the future owners of the property and if a new owner does not meet the conditions, the previous owner can pursue court action to enforce the condition or recover the land. A city should carefully consider whether a deed restriction that the seller will impose is one with which the city could comply. A city should also investigate the county land records to see if there are any prior deed restrictions from previous owners before acquiring the property. Deed restrictions are usually uncovered during the title search. A.G.Op.425c-11(April 18, Deed restrictions generally run with the land. This means once a deed 2013). restriction is in place,the only person who can remove it is the person who imposed the restrictions. For instance, if a city wants to build a new city hall on property with a deed restriction that prohibits this type of use,the city must find the previous owner and request that the restriction be removed. While this may be possible if the city is buying the land from the person who imposed the deed restriction, it can be difficult if the person who created the restriction is not available or cannot be located. Likewise, if there are several deed restrictions that have been imposed by different owners, it may be difficult to track down all of the previous owners. Minn.Stat.ch.462. Cities do not enforce deed restrictions that exist on property owned by others. Generally, a deed restriction is a private contractual matter between the buyer and the seller of a piece of property. A.G.Op.469-a-15(Feb. 18, The Attorney General has determined that a city could not place a restrictive 1955). covenant in a deed to require that any home built on the land be of a certain value. C. Land held in trust It is somewhat unclear whether a city can sell land that it holds in trust for a specific purpose. The answer depends upon the specific facts of a given situation. A city should check with its attorney before attempting to sell any land held in trust. League of Minnesota Cities Information Memo: 1/22/2015 Purchase and Sale of Real Property Page 17