Minnesota Statutes 336.2-107 – Goods to Be Severed From Realty; Recording
(1) A contract for the sale of minerals or the like (including oil and gas) or a structure or its materials to be removed from realty is a contract for the sale of goods within this article if they are to be severed by the seller but until severance a purported present sale thereof which is not effective as a transfer of an interest in land is effective only as a contract to sell.
Terms Used In Minnesota Statutes 336.2-107
- Buyer: means a person who buys or contracts to buy goods. See Minnesota Statutes 336.2-103
- Contract: A legal written agreement that becomes binding when signed.
- Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Minnesota Statutes 336.2-106
- present sale: means a sale which is accomplished by the making of the contract. See Minnesota Statutes 336.2-106
- Seller: means a person who sells or contracts to sell goods. See Minnesota Statutes 336.2-103
(2) A contract for the sale apart from the land of growing crops or other things attached to realty and capable of severance without material harm thereto but not described in subsection (1) or of timber to be cut is a contract for the sale of goods within this article whether the subject matter is to be severed by the buyer or by the seller even though it forms part of the realty at the time of contracting, and the parties can by identification effect a present sale before severance.
(3) The provisions of subsection (1) of this section are subject to any third party rights provided by the law relating to realty records, and the contract for sale may be executed and recorded as a document transferring an interest in land and shall then constitute notice to third parties of the buyer’s rights under the contract for sale.