HF 4516

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/04/2024 02:29pm

A bill for an act
relating to commerce; prohibiting certain practices relating to the management of
certain properties; providing remedies; proposing coding for new law in Minnesota
Statutes, chapter 325E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325E.68] PROPERTY MANAGEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Person" means an individual, firm, partnership, limited liability company,
corporation, or association.
new text end

new text begin (c) "Property manager" or "property management company" means a person who engages
in the business of managing real property that is owned by another person.
new text end

new text begin (d) "Owner" means a person who has a legal or equitable interest in the real property.
An owner of a common interest community, as defined in chapter 515B, means the unit
owners' association organized under section 515B.3-101.
new text end

new text begin Subd. 2. new text end

new text begin Interest of property management company in certain firms. new text end

new text begin A property
manager or property management company having an interest directly or indirectly in a
construction firm, salvage firm, or appraisal firm is prohibiting from hiring the directly or
indirectly owned construction firm, salvage firm, or appraisal firm to perform work on a
managed property unless the interest has been disclosed in writing to the owner or owners
at least three days prior to executing a contract for the work. "Firm" includes a corporation,
partnership, association, or individual firm.
new text end

new text begin Subd. 3. new text end

new text begin Prohibited practices. new text end

new text begin A property manager or property management company
is prohibited from requesting or accepting money, rebates, or anything of value from a
construction firm, salvage firm, or appraisal firm as:
new text end

new text begin (1) an inducement to refer business or clients to the firm;
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new text begin (2) a condition for awarding a contract to the firm;
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new text begin (3) part of a fee specified in a contract; or
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new text begin (4) fee splitting for services rendered, unless the other person is also a licensed contractor.
new text end

new text begin Subd. 4. new text end

new text begin Remedies. new text end

new text begin If a property manager or property management company violates
this section, an owner may bring an action against the property manager or property
management company in a court of competent jurisdiction for damages sustained by the
owner as a consequence of the property manager's or property management company's
violation, together with the actual costs of the action, including reasonable attorney fees.
The remedies in this section are in addition to any other remedies permitted by law.
new text end