1.1                          A bill for an act 
  1.2             relating to real property; making changes in 
  1.3             provisions about certificates of title and the Common 
  1.4             Interest Ownership Act; making miscellaneous changes 
  1.5             to alter real property provisions; amending Minnesota 
  1.6             Statutes 1998, sections 40A.10, subdivisions 1 and 3; 
  1.7             40A.11, subdivision 4; 47.20, subdivision 2; 51A.02, 
  1.8             subdivision 29; 60C.09, subdivision 1; 83.20, 
  1.9             subdivisions 11 and 14; 103F.612, subdivisions 2 and 
  1.10            4; 103F.613, subdivision 3; 103I.235, subdivision 1; 
  1.11            238.22, subdivision 3; 273.124, subdivision 2; 
  1.12            297H.01, subdivision 8; 327C.095, subdivision 5; 
  1.13            357.18, subdivision 1; 359.02; 386.31; 389.09; 
  1.14            428A.11, subdivisions 4 and 6; 462C.02, subdivisions 4 
  1.15            and 5; 462C.05, subdivision 1; 473H.02, subdivision 6; 
  1.16            473H.05, subdivision 1; 473H.06, subdivisions 1 and 2; 
  1.17            473H.08, subdivision 4; 500.20, subdivision 2a; 
  1.18            505.08, subdivision 3; 507.421; 508.14; 508.24, 
  1.19            subdivision 2; 508.25; 508.35; 508.36; 508.38; 508.40; 
  1.20            508.421, subdivision 2; 508.47, subdivision 4; 508.49; 
  1.21            508.51, subdivision 1; 508.52; 508.55; 508.56; 508.57; 
  1.22            508.58; 508.59; 508.61, subdivisions 2 and 3; 508.67; 
  1.23            508.68; 508.71, subdivisions 2, 4, 5, 6, and by adding 
  1.24            a subdivision; 508.76; 508.82, subdivision 1; 508A.10; 
  1.25            508A.11, subdivision 3; 508A.22, subdivisions 2 and 3; 
  1.26            508A.25; 508A.35; 508A.38; 508A.40; 508A.421, 
  1.27            subdivision 2; 508A.47, subdivision 4; 508A.49; 
  1.28            508A.51, subdivision 1; 508A.52; 508A.55; 508A.56; 
  1.29            508A.57; 508A.58; 508A.59; 508A.61, subdivisions 2 and 
  1.30            3; 508A.71, subdivisions 2, 3, 5, 6, and by adding a 
  1.31            subdivision; 508A.72; 508A.76; 508A.82, subdivision 1; 
  1.32            508A.85, subdivisions 3 and 4; 515B.1-102; 515B.1-103; 
  1.33            515B.1-116; 515B.2-101; 515B.2-104; 515B.2-105; 
  1.34            515B.2-108; 515B.2-109; 515B.2-110; 515B.2-113; 
  1.35            515B.2-118; 515B.2-119; 515B.2-121; 515B.2-122; 
  1.36            515B.3-103; 515B.3-105; 515B.3-106; 515B.3-110; 
  1.37            515B.3-113; 515B.3-115; 515B.3-116; 515B.3-121; 
  1.38            515B.4-101; 515B.4-102; 515B.4-106; 515B.4-107; 
  1.39            515B.4-108; 515B.4-111; 515B.4-115; 524.2-201; 559.21, 
  1.40            subdivision 2a; and 582.32, subdivision 5; proposing 
  1.41            coding for new law in Minnesota Statutes, chapters 
  1.42            386; and 515B; repealing Minnesota Statutes 1998, 
  1.43            sections 473H.02, subdivision 11; 473H.05, subdivision 
  1.44            3; 508.405; 508.421, subdivision 1; 508.44; 508.45; 
  1.45            508.51, subdivision 2; 508.835; 508A.421, subdivision 
  1.46            1; 508A.44; 508A.45; 508A.51, subdivision 2; and 
  2.1             508A.835. 
  2.2   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.3                              ARTICLE 1
  2.4      Section 1.  Minnesota Statutes 1998, section 40A.10, 
  2.5   subdivision 1, is amended to read: 
  2.6      Subdivision 1.  [CONTENTS.] An eligible person may apply to 
  2.7   the county in which the land is located for the creation of an 
  2.8   agricultural preserve on forms provided by the commissioner.  In 
  2.9   case a preserve is located in more than one county, the 
  2.10  application must be submitted to the county in which the 
  2.11  majority of the land is located.  The application shall be 
  2.12  executed and acknowledged in the manner required by law to 
  2.13  execute and acknowledge a deed and must contain at least the 
  2.14  following information and other information the commissioner 
  2.15  requires:  
  2.16     (a) Legal description of the area to be designated and 
  2.17  parcel identification numbers where designated by the county 
  2.18  auditor; 
  2.19     (b) Name and address of the owner; 
  2.20     (c) A witnessed signature of statement by the owner 
  2.21  covenanting that the land will be kept in exclusive agricultural 
  2.22  use and will be used in accordance with the provisions of this 
  2.23  chapter that exist on the date of application; and providing 
  2.24     (d) A statement that the restrictive covenant will be 
  2.25  binding on the owner or the owner's successor or assignee, and 
  2.26  will run with the land.  
  2.27     In the case of registered property, the owner shall submit 
  2.28  the owner's duplicate certificate of title along with the 
  2.29  application.  
  2.30     Sec. 2.  Minnesota Statutes 1998, section 40A.10, 
  2.31  subdivision 3, is amended to read: 
  2.32     Subd. 3.  [RECORDING.] Within five days of the date of 
  2.33  application, the county shall forward the application to the 
  2.34  county recorder, together with the owner's duplicate certificate 
  2.35  of title in the case of registered property for recording, or to 
  2.36  the registrar of titles for filing if the land is registered.  
  3.1   The county recorder shall record the application containing the 
  3.2   restrictive covenant and return it to the applicant.  In the 
  3.3   case of registered property, the recorder If the land is 
  3.4   registered, the registrar of titles shall memorialize 
  3.5   the application containing the restrictive covenant upon the 
  3.6   certificate of title and the owner's duplicate certificate of 
  3.7   title.  The recorder or registrar of titles shall notify the 
  3.8   county that the covenant application has been recorded or 
  3.9   memorialized.  
  3.10     Sec. 3.  Minnesota Statutes 1998, section 40A.11, 
  3.11  subdivision 4, is amended to read: 
  3.12     Subd. 4.  [NOTICE AND RECORDING; TERMINATION.] When the 
  3.13  county receives notice under subdivision 2 or serves notice 
  3.14  under subdivision 3, the county shall forward the original 
  3.15  notice to the county recorder for recording, or to the registrar 
  3.16  of titles if the land is registered, and shall notify the 
  3.17  regional development commission, the commissioner, and the 
  3.18  county soil and water conservation district of the date of 
  3.19  expiration.  Designation as an agricultural preserve and the 
  3.20  benefits and limitations contained in this chapter and the 
  3.21  restrictive covenant filed with the application cease on the 
  3.22  date of expiration.  In the case of registered property, the 
  3.23  county recorder If the land is registered, the registrar of 
  3.24  titles shall cancel the memorial of the application containing 
  3.25  the restrictive covenant upon the certificate of title and the 
  3.26  owner's duplicate certificate of title on the effective date of 
  3.27  the expiration.  
  3.28     Sec. 4.  Minnesota Statutes 1998, section 103F.612, 
  3.29  subdivision 2, is amended to read: 
  3.30     Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
  3.31  the county where a wetland is located for designation of a 
  3.32  wetland preservation area in a high priority wetland area 
  3.33  identified in a comprehensive local water plan, as defined in 
  3.34  section 103B.3363, subdivision 3, and located within a high 
  3.35  priority wetland region designated by the board of water and 
  3.36  soil resources, if the county chooses to accept wetland 
  4.1   preservation area applications.  The application must be made on 
  4.2   forms provided by the board.  If a wetland is located in more 
  4.3   than one county, the application must be submitted to the county 
  4.4   where the majority of the wetland is located.  
  4.5      (b) The application shall be executed and acknowledged in 
  4.6   the manner required by law to execute and acknowledge a deed and 
  4.7   must contain at least the following information and other 
  4.8   information the board of soil and water resources requires:  
  4.9      (1) legal description of the area to be approved, which 
  4.10  must include an upland strip at least 16-1/2 feet in width 
  4.11  around the perimeter of wetlands within the area and may include 
  4.12  total upland area of up to four acres for each acre of wetland; 
  4.13     (2) parcel identification numbers where designated by the 
  4.14  county auditor; 
  4.15     (3) name and address of the owner; 
  4.16     (4) a witnessed signature of statement by the owner 
  4.17  covenanting that the land will be preserved as a wetland and 
  4.18  will only be used in accordance with conditions prescribed by 
  4.19  the board of water and soil resources; and providing 
  4.20     (5) a statement that the restrictive covenant will be 
  4.21  binding on the owner and the owner's successors or assigns, and 
  4.22  will run with the land.  
  4.23     (c) The upland strip required in paragraph (b), clause (1), 
  4.24  must be planted with permanent vegetation other than a noxious 
  4.25  weed. 
  4.26     (d) For registered property, the owner shall submit the 
  4.27  owner's duplicate certificate of title with the application.  
  4.28     Sec. 5.  Minnesota Statutes 1998, section 103F.612, 
  4.29  subdivision 4, is amended to read: 
  4.30     Subd. 4.  [RECORDING.] Within five days of the date of 
  4.31  application, the county shall forward the application to the 
  4.32  county recorder, with the owner's duplicate certificate of title 
  4.33  in the case of registered property for recording or to the 
  4.34  registrar of titles for filing if the land is registered.  The 
  4.35  county recorder shall record the application containing the 
  4.36  restrictive covenant and return it to the applicant.  In the 
  5.1   case of registered property, the recorder If the land is 
  5.2   registered, the registrar of titles shall memorialize the 
  5.3   application containing the restrictive covenant upon the 
  5.4   certificate of title and the owner's duplicate certificate of 
  5.5   title.  The recorder or registrar of titles shall notify the 
  5.6   county that the covenant application has been recorded or 
  5.7   memorialized.  
  5.8      Sec. 6.  Minnesota Statutes 1998, section 103F.613, 
  5.9   subdivision 3, is amended to read: 
  5.10     Subd. 3.  [NOTICE AND RECORDING; TERMINATION.] When the 
  5.11  county receives notice under subdivision 2, the county shall 
  5.12  forward the original notice to the county recorder for recording 
  5.13  or to the registrar of titles for filing if the land is 
  5.14  registered and shall notify the regional development commission, 
  5.15  where applicable, the board of water and soil resources, and the 
  5.16  county soil and water conservation district of the date of 
  5.17  expiration.  The benefits and limitations of the wetland 
  5.18  preservation area and the restrictive covenant filed with the 
  5.19  application cease on the date of expiration.  For registered 
  5.20  property, the county recorder If the land is registered, the 
  5.21  registrar of titles shall cancel the memorial of the application 
  5.22  containing the restrictive covenant upon the certificate of 
  5.23  title and the owner's duplicate certificate of title on the 
  5.24  effective date of the expiration.  
  5.25     Sec. 7.  [386.071] [DOCUMENTS MISFILED.] 
  5.26     The county recorder may reasonably rely on the affirmative 
  5.27  representation of the party presenting instruments for filing as 
  5.28  to whether the land described in the instruments or any part of 
  5.29  it is registered or unregistered.  A party who requests that 
  5.30  misfiled instruments be refiled with the registrar is 
  5.31  responsible for paying any additional fees required to properly 
  5.32  file any instrument misfiled because of an incorrect 
  5.33  representation and, if applicable, to enter a new certificate of 
  5.34  title.  
  5.35     Sec. 8.  Minnesota Statutes 1998, section 473H.02, 
  5.36  subdivision 6, is amended to read: 
  6.1      Subd. 6.  [COVENANT AGREEMENT.] "Covenant agreement" means 
  6.2   a restrictive covenant initiated by the owner and evidenced by 
  6.3   an agreement contained in the application provided for in 
  6.4   section 473H.05 whereby the owner places the limitations on 
  6.5   specified land and receives the protections and benefits 
  6.6   contained in sections 473H.02 to 473H.17.  
  6.7      Sec. 9.  Minnesota Statutes 1998, section 473H.05, 
  6.8   subdivision 1, is amended to read: 
  6.9      Subdivision 1.  [BEFORE MARCH 1 FOR NEXT YEAR'S TAXES.] An 
  6.10  owner or owners of certified long term agricultural land may 
  6.11  apply to the authority with jurisdiction over the land on forms 
  6.12  provided by the commissioner of agriculture for the creation of 
  6.13  an agricultural preserve at any time.  If the land to be placed 
  6.14  in a preserve is registered property, the owner shall submit the 
  6.15  owner's duplicate certificate of title together with the 
  6.16  application.  Land for which application is received prior to 
  6.17  March 1 of any year shall be assessed pursuant to section 
  6.18  473H.10 for taxes payable in the following year.  Land for which 
  6.19  application is received on or after March 1 of any year shall be 
  6.20  assessed pursuant to section 473H.10 in the following year.  The 
  6.21  application shall be executed and acknowledged in the manner 
  6.22  required by law to execute and acknowledge a deed and shall 
  6.23  contain at least the following information and such other 
  6.24  information as the commissioner deems necessary: 
  6.25     (a) Legal description of the area proposed to be designated 
  6.26  and parcel identification numbers if so designated by the county 
  6.27  auditor and the certificate of title number if the land is 
  6.28  registered; 
  6.29     (b) Name and address of owner; 
  6.30     (c) An affidavit by the authority evidencing that the land 
  6.31  is certified long term agricultural land at the date of 
  6.32  application; 
  6.33     (d) A witnessed signature of statement by the owner 
  6.34  covenanting that the land shall be kept in agricultural use, and 
  6.35  shall be used in accordance with the provisions of sections 
  6.36  473H.02 to 473H.17 which exist on the date of application; and 
  7.1   providing 
  7.2      (e) A statement that the restrictive covenant shall be 
  7.3   binding on the owner or the owner's successor or assignee, and 
  7.4   shall run with the land.  
  7.5      Sec. 10.  Minnesota Statutes 1998, section 473H.06, 
  7.6   subdivision 1, is amended to read: 
  7.7      Subdivision 1.  [APPLICATION.] Upon receipt of an 
  7.8   application, the authority shall determine if all material 
  7.9   required in section 473H.05 has been submitted and, if so, shall 
  7.10  determine that the application is complete.  When used in this 
  7.11  chapter, the term "date of application" means the date the 
  7.12  application is determined complete by the authority.  Within 
  7.13  five days of the date of application, the authority shall 
  7.14  forward the completed and signed application to the county 
  7.15  recorder, together with the owner's duplicate certificate of 
  7.16  title in the case of registered property, and copies to the 
  7.17  county auditor, the county assessor, the metropolitan council, 
  7.18  and the county soil and water conservation district.  
  7.19     Sec. 11.  Minnesota Statutes 1998, section 473H.06, 
  7.20  subdivision 2, is amended to read: 
  7.21     Subd. 2.  [RECORDING; MEMORIALIZATION.] The county recorder 
  7.22  shall record the application containing the restrictive covenant 
  7.23  and return it to the applicant.  If the property land is 
  7.24  registered property, the recorder registrar of titles shall 
  7.25  memorialize the application containing the restrictive covenant 
  7.26  upon presentation of the owner's duplicate the certificate of 
  7.27  title.  The authority shall be notified by the recorder or 
  7.28  registrar of titles that the covenant application has been 
  7.29  recorded or memorialized.  
  7.30     Sec. 12.  Minnesota Statutes 1998, section 473H.08, 
  7.31  subdivision 4, is amended to read: 
  7.32     Subd. 4.  [NOTICE TO OTHERS.] Upon receipt of the notice 
  7.33  provided in subdivision 2, or upon notice served by the 
  7.34  authority as provided in subdivision 3, the authority shall 
  7.35  forward the original notice to the county recorder for 
  7.36  recording, or to the registrar of titles if the land is 
  8.1   registered, and shall notify the county auditor, county 
  8.2   assessor, the metropolitan council, and the county soil and 
  8.3   water conservation district of the date of expiration.  
  8.4   Designation as an agricultural preserve and all benefits and 
  8.5   limitations accruing through sections 473H.02 to 473H.17 for the 
  8.6   preserve shall cease on the date of expiration.  The restrictive 
  8.7   covenant filed with contained in the application shall terminate 
  8.8   on the date of expiration.  
  8.9      Sec. 13.  Minnesota Statutes 1998, section 508.14, is 
  8.10  amended to read: 
  8.11     508.14 [SURVEY IN CERTAIN COUNTIES.] 
  8.12     In any county of this state having more than 200,000 
  8.13  inhabitants, the county surveyor thereof shall, at the request 
  8.14  of the examiner of titles for such county, make a survey of the 
  8.15  plat described in any application for registration under this 
  8.16  chapter, and file with the court administrator of the district 
  8.17  court of such county a plat of such land, duly certified, 
  8.18  showing the dimensions of the land, the location of all 
  8.19  structures, fences, and other improvements thereon and such 
  8.20  other facts as may be required by the examiner.  The surveyor 
  8.21  shall also at the request of the registrar of titles of such 
  8.22  county, make a survey of any registered land designated by the 
  8.23  registrar and file with such registrar a plat of such land, duly 
  8.24  certified showing its dimensions and such other facts as the 
  8.25  registrar may require. Such plat shall be numbered and entered 
  8.26  as a memorial on the original owner's duplicate certificate of 
  8.27  title of such land and transferred with each subsequent 
  8.28  certificate of title affecting such land.  In any county in 
  8.29  which the county surveyor receives fees in lieu of a salary, the 
  8.30  county surveyor shall be paid such compensation for services as 
  8.31  the county board may determine; in all other counties, the 
  8.32  county surveyor shall receive no other compensation than the 
  8.33  salary paid for other county work.  
  8.34     Sec. 14.  Minnesota Statutes 1998, section 508.24, 
  8.35  subdivision 2, is amended to read: 
  8.36     Subd. 2.  [PETITION; NONMETROPOLITAN COUNTIES.] The 
  9.1   registered owner of land in counties not containing a city of 
  9.2   the first class may apply by verified petition to the district 
  9.3   court of the county wherein the land is situated for its 
  9.4   withdrawal from registration.  The application shall be heard by 
  9.5   the district court on not less than 20 days' written notice to 
  9.6   all persons appearing of record or known to the petitioner to 
  9.7   have or claim an interest in the property.  The notice shall be 
  9.8   served in the manner provided by law for the service of a 
  9.9   summons in a civil action in the district court unless otherwise 
  9.10  specified by the court.  At the hearing any person interested in 
  9.11  any manner in the land or who may be affected by its withdrawal 
  9.12  from registration, may appear and be heard in favor of or in 
  9.13  opposition to the application.  After hearing the court may 
  9.14  order that the land be withdrawn from registration, subject to 
  9.15  encumbrances, liens, and other incidents of title then existing, 
  9.16  and if so ordered shall require that a certified copy of the 
  9.17  order, a certified copy of the original decree of registration, 
  9.18  and certified copies of all undischarged instruments 
  9.19  memorialized on the certificate of title, be recorded in the 
  9.20  office of the county recorder at the expense of the petitioner.  
  9.21  In its order the court shall reconcile any differences in 
  9.22  description of the land as originally registered and as 
  9.23  described in the last certificate of title.  Upon the recording 
  9.24  of the instruments and upon filing a certified copy of the order 
  9.25  in the office of the registrar of titles, and surrender to the 
  9.26  registrar of the duplicates of the last certificate of title, 
  9.27  the land shall be withdrawn from registration and become 
  9.28  unregistered property.  
  9.29     Sec. 15.  Minnesota Statutes 1998, section 508.25, is 
  9.30  amended to read: 
  9.31     508.25 [RIGHTS OF PERSON HOLDING CERTIFICATE OF TITLE.] 
  9.32     Every person receiving a certificate of title pursuant to a 
  9.33  decree of registration and every subsequent purchaser of 
  9.34  registered land who receives a certificate of title in good 
  9.35  faith and for a valuable consideration shall hold it free from 
  9.36  all encumbrances and adverse claims, excepting only the estates, 
 10.1   mortgages, liens, charges, and interests as may be noted in the 
 10.2   last certificate of title in the office of the registrar, and 
 10.3   also excepting any of the following rights or encumbrances 
 10.4   subsisting against it, if any: 
 10.5      (1) liens, claims, or rights arising or existing under the 
 10.6   laws or the constitution of the United States, which this state 
 10.7   cannot require to appear of record; 
 10.8      (2) the lien of any real property tax or special assessment 
 10.9   for which the land has not been sold at the date of the 
 10.10  certificate of title; 
 10.11     (3) any lease for a period not exceeding three years when 
 10.12  there is actual occupation of the premises thereunder; 
 10.13     (4) all rights in public highways upon the land; 
 10.14     (5) the right of appeal, or right to appear and contest the 
 10.15  application, as is allowed by this chapter; 
 10.16     (6) the rights of any person in possession under deed or 
 10.17  contract for deed from the owner of the certificate of title; 
 10.18  and 
 10.19     (7) any outstanding mechanics lien rights which may exist 
 10.20  under sections 514.01 to 514.17. 
 10.21     No existing or future lien for state taxes arising under 
 10.22  the laws of this state for the nonpayment of any amounts due 
 10.23  under chapter 268 or any tax administered by the commissioner of 
 10.24  revenue may encumber title to lands registered under this 
 10.25  chapter unless filed under the terms of this chapter.  
 10.26     Sec. 16.  Minnesota Statutes 1998, section 508.35, is 
 10.27  amended to read: 
 10.28     508.35 [FORM OF CERTIFICATE.] 
 10.29     The certificate of title shall contain the name and 
 10.30  residence of the owner, a description of the land, and of the 
 10.31  estate of the owner therein, and shall by memorial contain a 
 10.32  description of all encumbrances, liens, and interests in which 
 10.33  the estate of the owner is subject.  It shall state whether the 
 10.34  owner is 18 years of age or older and, if under any legal 
 10.35  incapacity, the nature of it.  It shall also state whether or 
 10.36  not the owner is married and, if married, the name of the 
 11.1   spouse.  In case the land is held in trust or subject to any 
 11.2   condition or limitation, it shall state the nature and character 
 11.3   of it.  It shall be substantially in the following form: 
 11.4                         CERTIFICATE OF TITLE 
 11.5      First certificate of title, pursuant to the order of the 
 11.6   district court, ............... judicial district, county of 
 11.7   ................., and state of Minnesota, date................, 
 11.8   ....... 
 11.9                             REGISTRATION 
 11.10    State of Minnesota               )                      
 11.11                                     )  ss.                 
 11.12    County of ....................   )                      
 11.13     This is to certify that ..............., residing at 
 11.14  ..............., in the .................... of 
 11.15  ...................., county of ...................., and state 
 11.16  of ...................., is now the owner of an estate, to-wit, 
 11.17  ......................... of and in the following described land 
 11.18  situated in the county of ............... and state of 
 11.19  Minnesota, to-wit, .........................  
 11.20     Subject to the encumbrances, liens, and interest noted by 
 11.21  the memorial underwritten or endorsed hereon; and subject to the 
 11.22  following rights or encumbrances subsisting, as provided in Laws 
 11.23  1905, chapter 305, section 24, namely: 
 11.24     (1) Liens, claims, or rights arising under the laws or the 
 11.25  Constitution of the United States, which the statutes of this 
 11.26  state cannot require to appear of record; 
 11.27     (2) Any real property tax or special assessment for which a 
 11.28  sale of the land has not been had at the date of the certificate 
 11.29  of title; 
 11.30     (3) Any lease for a period not exceeding three years, when 
 11.31  there is actual occupation of the premises under the lease; 
 11.32     (4) All rights in public highways upon the land; 
 11.33     (5) Such right of appeal or right to appear and contest the 
 11.34  application as is allowed by law; 
 11.35     (6) The rights of any person in possession under deed or 
 11.36  contract for deed from the owner of the certificate of title; 
 12.1      (7) Any outstanding mechanics lien rights which may exist 
 12.2   under sections 514.01 to 514.17. 
 12.3      That the said .......................... (is/is not) of the 
 12.4   age of 18 years or older, is under no legal incapacity except 
 12.5   ......................... and is (single/married to 
 12.6   .........................), who (is/is not) of the age of 18 
 12.7   years or older and is under no legal incapacity except 
 12.8   ......................... 
 12.9      In witness whereof, I have hereunto subscribed my name and 
 12.10  affixed the seal of my office, this ............... day of 
 12.11  ..........., ..........  
 12.12     .............................................  
 12.13     Registrar of Titles, in and for the county of 
 12.14     ..................... and State of Minnesota.  
 12.15     All certificates issued subsequent to the first certificate 
 12.16  of title shall be in like form except that they shall be 
 12.17  entitled "Transfer from number (here give the number of the next 
 12.18  previous certificate relating to the same land)," and shall also 
 12.19  contain the words "Originally registered (date, volume, and page 
 12.20  of registration)."  
 12.21     Sec. 17.  Minnesota Statutes 1998, section 508.36, is 
 12.22  amended to read: 
 12.23     508.36 [CERTIFICATES AND COPIES AS EVIDENCE.] 
 12.24     The original certificate of title in the register of 
 12.25  titles, any copy of it duly certified by the registrar, or by a 
 12.26  deputy, and authenticated by the registrar's seal, and likewise 
 12.27  the owner's duplicate certificate of title shall be received in 
 12.28  evidence in all the courts of this state and be conclusive 
 12.29  evidence of all matters and things contained in it.  In case of 
 12.30  variance between the owner's duplicate certificate and the 
 12.31  original certificate of title, the original certificate shall 
 12.32  prevail.  Deeds, mortgages, leases, or other conveyances of real 
 12.33  estate, and all instruments in any manner affecting the title to 
 12.34  registered land, together with any notations, endorsements, or 
 12.35  memorials upon the same made by the registrar of titles, as 
 12.36  required by law, heretofore or hereafter filed with the 
 13.1   registrar, shall be received in evidence in all the courts of 
 13.2   this state, without further or other proof, and be prima facie 
 13.3   evidence of the contents of it.  Duly authenticated copies of 
 13.4   these instruments, or any of them, may likewise be received in 
 13.5   evidence in any court in this state with like force and effect 
 13.6   as the original instruments. 
 13.7      Sec. 18.  Minnesota Statutes 1998, section 508.38, is 
 13.8   amended to read: 
 13.9      508.38 [FORMS OF RECORDS ADOPTED.] 
 13.10     Every instrument Instruments affecting the title to land, 
 13.11  filed with the registrar, shall be numbered by the registrar 
 13.12  consecutively, to the extent practicable and the registrar shall 
 13.13  endorse upon the same each instrument over the registrar's 
 13.14  official signature, OFFICE OF THE REGISTRAR OF TITLES, ... 
 13.15  COUNTY, MINNESOTA, CERTIFIED FILED ON, together with the date, 
 13.16  hour, and minute when the same instrument is filed, the document 
 13.17  number thereof, and a reference to its the proper certificate of 
 13.18  title.  Every such instrument shall be retained by the registrar 
 13.19  and regarded as registered from the time of filing except that 
 13.20  such Instruments may shall be copied or reproduced as provided 
 13.21  by section 15.17, as amended, and the copies or reproductions 
 13.22  thereof substituted for the originals with the equal force and 
 13.23  effect of the same, which originals may be then destroyed as 
 13.24  provided by said section 15.17.  Instruments shall then be 
 13.25  returned in person or by mail to the party who presented the 
 13.26  instruments for filing or to any other party to whom the 
 13.27  registrar is directed to deliver the instruments.  When the 
 13.28  memorial of any instrument is made upon any certificate, the 
 13.29  date, number, and time of filing thereof shall likewise also be 
 13.30  endorsed upon such the certificate.  All records and papers 
 13.31  relating to registered land in the office of the registrar, 
 13.32  shall be open to the inspection of the public at such times and 
 13.33  under such conditions as the court may prescribe.  Duplicates of 
 13.34  all instruments, voluntary or involuntary, filed and registered 
 13.35  with the registrar, may be presented with the originals, and 
 13.36  shall thereupon be endorsed with the file number, and other 
 14.1   memoranda on the originals, and may be attested and sealed by 
 14.2   the registrar, and returned to the person presenting the same.  
 14.3   The registrar shall furnish certified copies of the instruments 
 14.4   filed and registered in the registrar's office, upon payment of 
 14.5   a fee as provided in section 357.18.  The court shall adopt 
 14.6   general forms of memorials and notations to be used by the 
 14.7   registrars in registering the common forms of conveyance and 
 14.8   other instruments. 
 14.9      Sec. 19.  Minnesota Statutes 1998, section 508.40, is 
 14.10  amended to read: 
 14.11     508.40 [OWNER'S DUPLICATE RECEIPT COPY OF CERTIFICATE OF 
 14.12  TITLE TO BE FURNISHED TO OWNER.] 
 14.13     At the time the original When a certificate of title is 
 14.14  entered, the registrar shall make a duplicate thereof, endorsing 
 14.15  across the face of such duplicate the words "Owner's Duplicate 
 14.16  Certificate" copy of it and deliver the same copy to the owner 
 14.17  or an authorized attorney agent.  The registrar shall, in every 
 14.18  case, when it is practicable so to do, take from such owner a 
 14.19  receipt for such duplicate certificate, which shall be signed by 
 14.20  the owner in person.  In the case of multiple owners the receipt 
 14.21  may be executed by any one of such owners.  Such receipt, when 
 14.22  signed and delivered in the office of the registrar, shall be 
 14.23  witnessed by the registrar or the registrar's deputy.  If such 
 14.24  receipt is signed elsewhere, it shall be acknowledged in the 
 14.25  same manner as a deed.  Such receipt shall be prima facie 
 14.26  evidence of the genuineness of such signature.  The copy need 
 14.27  not be presented or surrendered to permit an instrument, 
 14.28  voluntary or otherwise, to be filed or a new certificate of 
 14.29  title to be entered, or a memorial to be made on a certificate 
 14.30  of title. 
 14.31     Sec. 20.  Minnesota Statutes 1998, section 508.421, 
 14.32  subdivision 2, is amended to read: 
 14.33     Subd. 2.  [MULTIPLE PARCELS OR INTERESTS.] The owner or 
 14.34  owners of registered land holding (1) one certificate of title 
 14.35  for two or more parcels of land or (2) one certificate for 
 14.36  undivided interests in one or more parcels of land may surrender 
 15.1   the owner's duplicate certificate of title for the land and 
 15.2   thereupon request the registrar may to issue separate 
 15.3   certificates of title to each owner or for each parcel or any 
 15.4   combination thereof as may be desired consistent with their 
 15.5   registered interests, provided a registered land survey is not 
 15.6   required by section 508.47.  When the registrar of titles has 
 15.7   issued more than one certificate of title to one or more owners 
 15.8   for one or more parcels of land, the owner or owners 
 15.9   may surrender the owner's duplicate certificates of title for 
 15.10  the land and thereupon request the registrar may to issue a 
 15.11  single certificate of title for all of the land to the owner or 
 15.12  owners of the land, or the registrar may issue two or more 
 15.13  certificates to the owner or owners of the land or for each 
 15.14  parcel or any combination thereof as may be desired consistent 
 15.15  with their registered interests, provided a registered land 
 15.16  survey is not required by section 508.47. 
 15.17     Sec. 21.  Minnesota Statutes 1998, section 508.47, 
 15.18  subdivision 4, is amended to read: 
 15.19     Subd. 4.  [SURVEY; REQUISITES; FILING; COPIES.] The 
 15.20  registered land survey shall correctly show the legal 
 15.21  description of the parcel of unplatted land represented by said 
 15.22  registered land survey and the outside measurements of the 
 15.23  parcel of unplatted land and of all tracts delineated therein, 
 15.24  the direction of all lines of said tracts to be shown by angles 
 15.25  or bearings or other relationship to the outside lines of said 
 15.26  registered land survey, and the surveyor shall place monuments 
 15.27  in the ground at appropriate corners, and all tracts shall be 
 15.28  lettered consecutively beginning with the letter "A."  A 
 15.29  registered land survey which delineates multilevel tracts shall 
 15.30  include a map showing the elevation view of the tracts with 
 15.31  their upper and lower boundaries defined by elevations 
 15.32  referenced to National Geodetic Vertical Datum, 1929 
 15.33  adjustment.  None of said tracts or parts thereof may be 
 15.34  dedicated to the public by said registered land survey.  Except 
 15.35  in counties having microfilming capabilities, a reproduction 
 15.36  copy of the registered land survey shall be delivered to the 
 16.1   county auditor.  The registered land survey shall be on paper, 
 16.2   mounted on cloth, shall be a black on white drawing, the scale 
 16.3   to be not smaller than one inch equals 200 feet, and shall be 
 16.4   certified to be a correct representation of said parcel of 
 16.5   unplatted land by a registered surveyor.  The mounted drawing 
 16.6   shall be exactly either 17 inches by 14 inches or at the 
 16.7   registrar's request 20 inches by 30 inches and not less than 
 16.8   2-1/2 inches of the 14 inches or the 20 inches shall be blank 
 16.9   for binding purposes, and such survey shall be filed in 
 16.10  triplicate with the registrar of titles.  Before filing, 
 16.11  however, any such survey shall be approved in the manner 
 16.12  required for the approval of subdivision plats, which approval 
 16.13  shall be endorsed thereon on it or attached thereto to it. 
 16.14     At the time of filing, a certificate from the treasurer 
 16.15  that current taxes have been paid must be presented before the 
 16.16  survey is accepted by the registrar for filing.  
 16.17     In counties having microfilming capabilities, the survey 
 16.18  may be prepared on sheets of suitable mylar or on linen tracing 
 16.19  cloth by photographic process or on material of equal quality.  
 16.20  Notwithstanding any provisions of subdivision 5 to the contrary, 
 16.21  no other copies of the survey need be filed. 
 16.22     The registrar shall duly certify and furnish to any person 
 16.23  a copy of said registered land survey, which shall be admissible 
 16.24  in evidence.  
 16.25     Sec. 22.  Minnesota Statutes 1998, section 508.49, is 
 16.26  amended to read: 
 16.27     508.49 [INTEREST LESS THAN FEE; NOTICED BY MEMORIAL.] 
 16.28     No new certificate shall be issued upon any transfer of 
 16.29  registered land which does not divest the title in fee simple of 
 16.30  the land, or some part of it.  All interests in registered land, 
 16.31  less than an estate in fee simple, shall be registered by filing 
 16.32  with the registrar the instrument which creates, transfers, or 
 16.33  claims the interest, and by brief memorandum or memorial of it 
 16.34  made and signed by the registrar upon the certificate of title.  
 16.35  A similar memorandum shall also be made on the owner's duplicate 
 16.36  if practicable so to do.  The cancellation of the interests 
 17.1   shall be registered in the same manner.  
 17.2      Sec. 23.  Minnesota Statutes 1998, section 508.51, 
 17.3   subdivision 1, is amended to read: 
 17.4      Subdivision 1.  [IF VOLUNTARY INSTRUMENT; EXCEPTION:  COURT 
 17.5   ORDER.] Except as provided in subdivision 2, no new certificate 
 17.6   of title shall be entered or issued, and no memorial shall be 
 17.7   made upon any certificate of title in pursuance of any deed or 
 17.8   other voluntary instrument made by the registered owner or the 
 17.9   registered owner's attorney-in-fact, unless the owner's 
 17.10  duplicate is presented therewith, except upon the order of the 
 17.11  court.  When such order is made, a memorial thereof shall be 
 17.12  entered, or a new certificate issued as directed thereby.  The 
 17.13  registrar shall require that the owner's duplicate be presented 
 17.14  only when an instrument is submitted for filing that is executed 
 17.15  by the registered owner or the registered owner's 
 17.16  attorney-in-fact.  When any voluntary instrument made by the 
 17.17  registered owner or the registered owner's attorney-in-fact is 
 17.18  presented for registration the production of the owner's 
 17.19  duplicate certificate shall authorize the registrar to shall 
 17.20  enter a new certificate or to make a memorial of registration in 
 17.21  accordance with such instrument, and the new certificate of 
 17.22  title or memorial shall be binding upon the registered owner and 
 17.23  upon all persons claiming under the registered owner in favor of 
 17.24  every purchaser for value and in good faith.  In all cases of 
 17.25  registration which are procured by fraud, the owner may pursue 
 17.26  all legal and equitable remedies against the parties to such 
 17.27  fraud, without prejudice to the rights of any innocent holder 
 17.28  for value of a certificate of title. 
 17.29     Sec. 24.  Minnesota Statutes 1998, section 508.52, is 
 17.30  amended to read: 
 17.31     508.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF NEW 
 17.32  CERTIFICATE CANCELED; NEW ISSUED.] 
 17.33     An owner of registered land who desires to convey the land, 
 17.34  or a portion thereof, in fee, shall execute a deed of 
 17.35  conveyance, and file the deed, together with the owner's 
 17.36  duplicate certificate, with the registrar.  The registrar shall 
 18.1   require an affidavit by the grantee, or some person in the 
 18.2   grantee's behalf, which affidavit shall set forth the name and 
 18.3   residence of the grantee, whether the grantee is 18 years of age 
 18.4   or older, and whether the grantee is or is not under legal 
 18.5   incapacity, whether or not married, and, if married, the name of 
 18.6   the spouse.  The deed of conveyance shall be filed and endorsed 
 18.7   with the number and place of registration of the owner's 
 18.8   certificate of title.  Before canceling the outstanding 
 18.9   certificate of title the registrar shall show by memorial 
 18.10  thereon the registration of the deed on the basis of which it is 
 18.11  canceled.  The encumbrances, claims, or interests adverse to the 
 18.12  title of the registered owner shall be stated upon the new 
 18.13  certificate, except so far as they may be simultaneously 
 18.14  released or discharged.  The owner's duplicate certificate and 
 18.15  the original certificate of title shall be marked "Canceled" by 
 18.16  the registrar, who shall enter in the register a new certificate 
 18.17  of title to the grantee, and prepare and deliver to the grantee 
 18.18  a new owner's duplicate certificate and prepare and deliver to 
 18.19  the grantee a copy of the new certificate of title.  If a deed 
 18.20  in fee is for a portion of the land described in a certificate 
 18.21  of title, the memorial of the deed entered by the registrar 
 18.22  shall include the legal description contained in the deed and 
 18.23  the registrar shall enter a new certificate of title to the 
 18.24  grantee for the portion of the land conveyed and, except as 
 18.25  otherwise provided in this section, issue a residue certificate 
 18.26  of title to the grantor for the portion of the land not 
 18.27  conveyed.  The registrar shall prepare and deliver to each of 
 18.28  the parties a new owner's duplicate certificate for copy of 
 18.29  their respective certificates of title.  In lieu of canceling 
 18.30  the grantor's certificate of title and issuing a residue 
 18.31  certificate and owner's duplicate certificate to the grantor for 
 18.32  the portion of the land not conveyed, the registrar may if the 
 18.33  grantor's deed does not divide a parcel of unplatted land, and 
 18.34  in the absence of a request to the contrary by the registered 
 18.35  owner, mark by the land description on both the owner's 
 18.36  duplicate certificate of title and the original certificate of 
 19.1   title "Part of land conveyed, see memorials".  The fee for a 
 19.2   residue certificate of title shall be paid to the registrar only 
 19.3   when the grantor's certificate of title is canceled after the 
 19.4   conveyance by the grantor of a portion of the land described in 
 19.5   the grantor's certificate of title.  When two or more successive 
 19.6   conveyances of the same property are filed for registration on 
 19.7   the same day the registrar may enter a certificate in favor of 
 19.8   the grantee or grantees in the last of the successive 
 19.9   conveyances, and the memorial of the previous deed or deeds 
 19.10  entered on the prior certificate of title shall have the same 
 19.11  force and effect as though the prior certificate of title had 
 19.12  been entered in favor of the grantee or grantees in the earlier 
 19.13  deed or deeds in the successive conveyances.  The fees for the 
 19.14  registration of the earlier deed or deeds shall be the same as 
 19.15  the fees prescribed for the entry of memorials.  The registrar 
 19.16  of titles, with the consent of the transferee, may mark "See 
 19.17  memorials for new owner(s)" by the names of the registered 
 19.18  owners on both the original certificate of title and the owner's 
 19.19  duplicate certificate of title and also add to the memorial of 
 19.20  the transferring conveyance a statement that the memorial shall 
 19.21  serve in lieu of a new certificate of title in favor of the 
 19.22  grantee or grantees therein noted and may refrain from canceling 
 19.23  the certificate of title until the time it is canceled by a 
 19.24  subsequent transfer, and the memorial showing such transfer of 
 19.25  title shall have the same effect as the entry of a new 
 19.26  certificate of title for the land described in the certificate 
 19.27  of title; the fee for the registration of a conveyance without 
 19.28  cancellation of the certificate of title shall be the same as 
 19.29  the fee prescribed for the entry of a memorial.  
 19.30     Sec. 25.  Minnesota Statutes 1998, section 508.55, is 
 19.31  amended to read: 
 19.32     508.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON 
 19.33  CERTIFICATE OF TITLE.] 
 19.34     The registration of a mortgage made by the registered owner 
 19.35  or, the registered owner's attorney-in-fact, or by a party 
 19.36  having an interest registered on the certificate of title, other 
 20.1   than the registered owner or the registered owner's 
 20.2   attorney-in-fact, shall be made in the following manner:  
 20.3   The owner's duplicate certificate mortgage deed or other 
 20.4   instrument to be registered shall be presented to the registrar, 
 20.5   together with the mortgage deed, or other instrument to be 
 20.6   registered, and the registrar shall enter upon the original 
 20.7   certificate of title and also upon the owner's duplicate 
 20.8   certificate a memorial of the purport of the instrument 
 20.9   registered, the exact time of filing, and its file number.  The 
 20.10  registrar shall also note upon the registered instrument the 
 20.11  time of filing and a reference to the volume and page where it 
 20.12  is registered.  The registration of a mortgage made by a party 
 20.13  having an interest registered on the certificate of title, other 
 20.14  than the registered owner or the registered owner's 
 20.15  attorney-in-fact, must be made in the same manner, except that 
 20.16  the owner's duplicate certificate need not be presented to the 
 20.17  registrar. 
 20.18     Sec. 26.  Minnesota Statutes 1998, section 508.56, is 
 20.19  amended to read: 
 20.20     508.56 [ASSIGNMENT AND DISCHARGE OF MORTGAGE.] 
 20.21     When a mortgage is assigned, extended, or otherwise dealt 
 20.22  with, a memorial of the instrument shall be made upon the 
 20.23  original certificate of title.  In case only a part of the 
 20.24  mortgage upon the land is intended to be released or discharged 
 20.25  a memorial of such partial release shall be entered.  
 20.26     Sec. 27.  Minnesota Statutes 1998, section 508.57, is 
 20.27  amended to read: 
 20.28     508.57 [FORECLOSURE; NOTICE.] 
 20.29     Mortgages upon registered land may be foreclosed in the 
 20.30  same manner as mortgages upon unregistered land.  Where the 
 20.31  mortgage is upon registered land it shall be sufficient to 
 20.32  authorize the foreclosure thereof by advertisement, if such 
 20.33  mortgage and all assignments thereof shall have been registered, 
 20.34  and a memorial thereof duly entered upon the certificate of 
 20.35  title.  When a mortgage upon registered land is foreclosed by 
 20.36  advertisement, the notice of foreclosure shall state the date of 
 21.1   the mortgage, when and where registered, and the fact of 
 21.2   registration.  All laws relating to the foreclosure of mortgages 
 21.3   upon unregistered land shall apply to mortgages upon registered 
 21.4   land, or any estate or interest therein, except as herein 
 21.5   provided, and except that a notice of the pendency of any suit 
 21.6   or proceeding to enforce or foreclose the mortgage or other 
 21.7   charge upon the land shall be filed with the registrar, and a 
 21.8   memorial thereof entered on the register certificate of title 
 21.9   before the first date of publication of the foreclosure notice 
 21.10  but not sooner than six months before the first date of 
 21.11  publication.  A notice so filed and registered shall be notice 
 21.12  to the registrar and to all persons thereafter dealing with the 
 21.13  land or any part thereof and shall satisfy the requirements of 
 21.14  section 580.032, subdivision 3, with respect to registered 
 21.15  land.  In all such foreclosures all certificates and affidavits 
 21.16  permitted or required by law to be recorded with the county 
 21.17  recorder shall be filed with and registered by the registrar. 
 21.18     Sec. 28.  Minnesota Statutes 1998, section 508.58, is 
 21.19  amended to read: 
 21.20     508.58 [REGISTRATION AFTER FORECLOSURE; NEW CERTIFICATE.] 
 21.21     Subdivision 1.  [COURT ORDER.] Any person who has, by an 
 21.22  action or other proceeding to enforce or foreclose a mortgage, 
 21.23  lien, or other charge upon registered land, become the owner in 
 21.24  fee of the land, or any part thereof, may have the title 
 21.25  registered.  Except as provided in subdivision 2, the owner 
 21.26  shall apply by duly verified petition to the court for a new 
 21.27  certificate of title to such land, and the court shall 
 21.28  thereupon, after due notice to all parties in interest and upon 
 21.29  such hearing as the court may direct, make an order for the 
 21.30  issuance of a new certificate of title to the person entitled 
 21.31  thereto, and the registrar shall thereupon enter a new 
 21.32  certificate of title to the land, or of the part thereof to 
 21.33  which the petitioner is entitled, and issue an owner's duplicate 
 21.34  as in the case of a voluntary conveyance.  
 21.35     Subd. 2.  [EXAMINER OF TITLES DIRECTIVE.] Any person who 
 21.36  has become the owner in fee of registered land, or any part of 
 22.1   the land, pursuant to a mortgage foreclosure by action under 
 22.2   chapter 581 is entitled to a new certificate of title for the 
 22.3   land described in the sheriff's certificate of sale or so much 
 22.4   of the land as may be described in the certificate of title, 
 22.5   after the redemption period expires.  The registrar shall enter 
 22.6   the new certificate of title and issue a new owner's duplicate 
 22.7   certificate only pursuant to the court order provided in 
 22.8   subdivision 1 or upon the written directive of the examiner of 
 22.9   titles as to the legal sufficiency of the mortgage foreclosure 
 22.10  proceeding.  The directive of the examiner of titles also must 
 22.11  specify the instruments the registrar shall omit from the new 
 22.12  certificate of title by virtue of the foreclosure.  
 22.13     At the request of a registered owner or other person in 
 22.14  interest, the examiner of titles by a written directive may 
 22.15  direct the registrar of titles to show by memorial on a the 
 22.16  certificate of title that a contract for the conveyance of a 
 22.17  time share interest, as defined in section 515B.1-103(32), has 
 22.18  been terminated in accordance with chapter 559.  The directive 
 22.19  also must specify the instruments the registrar shall omit from 
 22.20  the next certificate of title because of the cancellation. 
 22.21     Sec. 29.  Minnesota Statutes 1998, section 508.59, is 
 22.22  amended to read: 
 22.23     508.59 [REGISTRATION OF JUDGMENT OR FINAL DECREE.] 
 22.24     A judgment or decree affecting registered land shall be 
 22.25  registered upon the presentation of a certified copy thereof to 
 22.26  the registrar, who shall enter a memorial thereof upon the 
 22.27  original certificate of title and upon the owner's duplicate, if 
 22.28  practicable so to do.  When the registered owner of such land is 
 22.29  by such judgment or decree divested of an estate in fee therein, 
 22.30  or of any part thereof, the prevailing party shall be entitled 
 22.31  to a new certificate of title for the land, or so much thereof 
 22.32  as may be described in the judgment and decree, and the 
 22.33  registrar shall enter such new certificate of title and issue a 
 22.34  new owner's duplicate certificate as in the case of a voluntary 
 22.35  conveyance.  No such new certificate shall be entered except 
 22.36  upon the written certification of the examiner of titles as to 
 23.1   the legal sufficiency of the documents presented for filing for 
 23.2   the purpose of issuance of a new certificate or upon the order 
 23.3   of the district court directing the issuance thereof. 
 23.4      Sec. 30.  Minnesota Statutes 1998, section 508.61, 
 23.5   subdivision 2, is amended to read: 
 23.6      Subd. 2.  [NEW TRUSTEE.] When a new trustee of registered 
 23.7   land is appointed a new certificate of title shall be entered in 
 23.8   the new trustee's name upon presentation to the registrar of a 
 23.9   certified copy of the decree or other instrument appointing the 
 23.10  new trustee and the surrender of the owner's duplicate 
 23.11  certificate.  
 23.12     Sec. 31.  Minnesota Statutes 1998, section 508.61, 
 23.13  subdivision 3, is amended to read: 
 23.14     Subd. 3.  [VOLUNTARY DISSOLUTION.] Where a corporate owner 
 23.15  did adopt a resolution for voluntary dissolution pursuant to 
 23.16  chapter 301, the registrar of titles shall enter a new 
 23.17  certificate of title in the name of the trustee in dissolution 
 23.18  upon the surrender of the owner's duplicate certificate and the 
 23.19  presentation of a certified copy of the certificate setting 
 23.20  forth the adoption of the resolution together with the 
 23.21  certificate of the secretary of state that said certificate of 
 23.22  dissolution has been filed for record in the secretary's office. 
 23.23     Sec. 32.  Minnesota Statutes 1998, section 508.67, is 
 23.24  amended to read: 
 23.25     508.67 [ACQUIRING TITLE BY ACTION; NEW CERTIFICATE.] 
 23.26     Subdivision 1.  [COURT ORDER.] Upon the expiration of the 
 23.27  time allowed by law for redemption of registered land, after it 
 23.28  has been set off, or sold on execution, or taken or sold for the 
 23.29  enforcement of any lien, or charge of any nature, the person who 
 23.30  claims under such execution, or under any certificate, deed, or 
 23.31  other instrument made in the course of proceedings to enforce 
 23.32  such execution or lien, may apply to the court for an order 
 23.33  directing the entry of a new certificate to that person, and 
 23.34  upon such notice as the court may require, the petition shall be 
 23.35  heard and a proper order rendered therein.  In case the claim of 
 23.36  title is based upon a tax certificate, tax or assessment deed, 
 24.1   the petition shall be filed with the court administrator, who 
 24.2   shall docket the same in the land registration docket.  The 
 24.3   petition shall be referred to the examiner of titles for 
 24.4   examination and report in like manner as herein provided for the 
 24.5   reference of initial applications for registration.  The summons 
 24.6   shall be issued in the form and served in the manner as in 
 24.7   initial applications.  The petition shall be heard by the court 
 24.8   and the petitioner shall be required to show affirmatively that 
 24.9   all the requirements of the statute to entitle the petitioner to 
 24.10  register the title have been complied with.  The order shall 
 24.11  show the condition of the title to such land and who is the 
 24.12  owner thereof.  It shall provide, if the petitioner is found to 
 24.13  be the owner, for the cancellation of the outstanding 
 24.14  certificate of title and the registrar shall issue a new 
 24.15  certificate of title for the land in lieu and in place of the 
 24.16  outstanding certificate upon presentation to the registrar of a 
 24.17  duly certified copy of such order, according to its terms.  
 24.18     Subd. 2.  [EXAMINER OF TITLES DIRECTIVE.] Any person 
 24.19  holding title to registered land pursuant to forfeiture 
 24.20  evidenced by a county auditor's certificate of forfeiture, or 
 24.21  auditor's certificate of sale or state assignment certificate 
 24.22  that has been memorialized upon a certificate of title for at 
 24.23  least ten years is entitled to a new certificate of title for 
 24.24  the land, or so much of the land as may be described in the 
 24.25  forfeiture documents.  The registrar shall enter the new 
 24.26  certificate of title and issue a new owner's duplicate 
 24.27  certificate only pursuant to court order or upon the written 
 24.28  directive of the examiner of titles as to the legal sufficiency 
 24.29  of the forfeiture.  The directive of the examiner of titles also 
 24.30  must specify the instruments the registrar shall omit from the 
 24.31  new certificate of title by virtue of the forfeiture. 
 24.32     Sec. 33.  Minnesota Statutes 1998, section 508.68, is 
 24.33  amended to read: 
 24.34     508.68 [DEATH OF OWNER; ISSUANCE OF NEW CERTIFICATES.] 
 24.35     When the owner of registered land, or of any estate or 
 24.36  interest therein, dies, having devised the same by will, the 
 25.1   persons entitled thereto may file with the registrar a certified 
 25.2   copy of such will and the personal representative's deed of 
 25.3   distribution together with any order of distribution, if there 
 25.4   be one, or certified copy of any final decree, if there be one, 
 25.5   assigning the same, and thereupon the registrar shall cancel the 
 25.6   certificate of title issued to the testator and issue a new 
 25.7   certificate of title to the persons designated.  When the owner 
 25.8   of registered land, or of any estate or interest therein, dies, 
 25.9   not having devised the same, the persons entitled thereto by law 
 25.10  may file with the registrar the personal representative's deed 
 25.11  of distribution together with a certified copy of any order of 
 25.12  distribution, if there be one, or a certified copy of any final 
 25.13  decree of the court assigning the same, and thereupon the 
 25.14  registrar shall cancel the certificate of title issued to the 
 25.15  intestate and issue a new certificate of title to the persons 
 25.16  entitled thereto.  Unless restricted by letters testamentary or 
 25.17  letters of administration, a personal representative may sell, 
 25.18  convey, or mortgage registered land in the same manner as if the 
 25.19  land were registered in the representative's name.  Such 
 25.20  personal representative shall first file with the registrar a 
 25.21  certified copy of any will of the decedent and a certified copy 
 25.22  of the representative's letters. 
 25.23     Sec. 34.  Minnesota Statutes 1998, section 508.71, is 
 25.24  amended by adding a subdivision to read: 
 25.25     Subd. 1a.  [CORRECTIONS OF REGISTRAR'S CLERICAL 
 25.26  ERRORS.] The registrar may correct clerical errors or omissions 
 25.27  made by the registrar's staff in producing certificates of 
 25.28  title.  An error shall not be erased or obliterated.  The 
 25.29  registrar may sign and file a correction document and 
 25.30  memorialize it upon the affected certificate of title, or may 
 25.31  make a correction memorial without a correction document.  The 
 25.32  memorial shall show the date, time of entry, the nature of the 
 25.33  error or omission, and the correct information.  If the error or 
 25.34  omission may adversely affect the interest of a party, the 
 25.35  registrar shall refer the correction to the examiner of titles.  
 25.36  The registrar shall prepare subsequent certificates correctly 
 26.1   and omit the memorial of the correction. 
 26.2      Sec. 35.  Minnesota Statutes 1998, section 508.71, 
 26.3   subdivision 2, is amended to read: 
 26.4      Subd. 2.  [COURT ORDER.] A registered owner or other person 
 26.5   in interest may, at any time, apply by petition to the court, 
 26.6   upon the ground that (1) registered interests of any 
 26.7   description, whether vested, contingent, expectant, or inchoate, 
 26.8   have terminated and ceased; (2) new interests have arisen or 
 26.9   been created which do not appear upon the certificate of title; 
 26.10  (3) any error or omission was made in entering a certificate of 
 26.11  title or any memorial thereon, or on any duplicate certificate; 
 26.12  (4) the name of any person on the certificate of title has been 
 26.13  changed; (5) the registered owner has married, or, if registered 
 26.14  as married, that the marriage has been terminated; (6) a 
 26.15  corporation which owned registered land and has been dissolved 
 26.16  has not conveyed it within three years after its dissolution; or 
 26.17  (7), upon any reasonable ground, that any other alteration or 
 26.18  adjudication should be made.  The court may hear and determine 
 26.19  the petition after notice given to all parties in interest, as 
 26.20  determined by the examiner of titles, by a summons issued in the 
 26.21  form and served in the manner as in initial applications or by 
 26.22  an order to show cause, as the court may deem appropriate.  
 26.23  After notice has been given as ordered, the court may order the 
 26.24  entry of a new certificate of title, the entry, amendment, or 
 26.25  cancellation of a memorial upon a certificate of title, or grant 
 26.26  any other relief upon the terms, requiring security if 
 26.27  necessary, as it may consider proper.  The provisions of this 
 26.28  section shall not give the court authority to open the original 
 26.29  decree of registration, and nothing shall be done or ordered by 
 26.30  the court which shall impair the title or other interest of a 
 26.31  purchaser who holds a certificate of title for value and in good 
 26.32  faith, or of the purchaser's heirs or assigns without written 
 26.33  consent of the purchaser or heirs or assigns.  A certified copy 
 26.34  of the petition may be filed as a memorial on any appropriate 
 26.35  certificate of title which shall be notice forever to purchasers 
 26.36  and encumbrancers of the pendency of the proceeding and all 
 27.1   matters referred to in the court files and records pertaining to 
 27.2   the proceeding.  
 27.3      Sec. 36.  Minnesota Statutes 1998, section 508.71, 
 27.4   subdivision 4, is amended to read: 
 27.5      Subd. 4.  [REGISTRATION OF MEMORIALS.] Without order of 
 27.6   court or directive of the examiner, the registrar of titles may 
 27.7   receive and register as memorials upon any certificate of title 
 27.8   to which they pertain, the following instruments:  receipt or 
 27.9   certificate of county treasurer showing redemption from any tax 
 27.10  sale or payment of any tax described in a certificate of title, 
 27.11  a state deed issued to purchaser of tax-forfeited land, a 
 27.12  certified copy of a marriage certificate showing the subsequent 
 27.13  marriage of any party shown by a certificate of title to be 
 27.14  unmarried, a certified copy of a final decree of divorce or 
 27.15  dissolution of a marriage entered in the state of Minnesota, or 
 27.16  in any state, territory or possession of the United States, or 
 27.17  the District of Columbia to establish the dissolution of a 
 27.18  marriage relationship of any party shown on the certificate of 
 27.19  title to be married, and a certified copy of the death 
 27.20  certificate of party listed in any certificate of title as being 
 27.21  the spouse of the registered owner when accompanied by an 
 27.22  affidavit satisfactory to the registrar identifying the decedent 
 27.23  with the spouse.  In all subsequent dealings with the land 
 27.24  covered by the certificates of title, the registrar shall give 
 27.25  full faith to these memorials.  
 27.26     Sec. 37.  Minnesota Statutes 1998, section 508.71, 
 27.27  subdivision 5, is amended to read: 
 27.28     Subd. 5.  [SURVIVORSHIP.] In case of a certificate of title 
 27.29  outstanding to two or more owners as joint tenants, upon the 
 27.30  filing for registration of a certificate of death of one of the 
 27.31  joint tenants and an affidavit of survivorship, and upon the 
 27.32  surrender of the owner's duplicate certificate of title, the 
 27.33  registrar without the order or directive shall issue a new 
 27.34  certificate of title for the premises to the survivor in 
 27.35  severalty or to the survivors in joint tenancy as the case may 
 27.36  be.  
 28.1      Sec. 38.  Minnesota Statutes 1998, section 508.71, 
 28.2   subdivision 6, is amended to read: 
 28.3      Subd. 6.  [RECORDED INSTRUMENTS.] When instruments 
 28.4   affecting registered land have been recorded in the office of 
 28.5   any county recorder in this state, a certified copy thereof may 
 28.6   be filed for registration and registered with like effect as the 
 28.7   original instrument without the order or directive.  The owner's 
 28.8   duplicate certificate of title shall be presented to the 
 28.9   registrar, together with the certified copy, whenever the 
 28.10  presentation is required by statute for registration of the 
 28.11  original instrument. 
 28.12     Sec. 39.  Minnesota Statutes 1998, section 508.76, is 
 28.13  amended to read: 
 28.14     508.76 [DAMAGES THROUGH ERRONEOUS REGISTRATION; 
 28.15  ACTION REGISTRAR'S LIABILITY.] 
 28.16     Subdivision 1.  [COMPENSATION FOR LOSS OR DAMAGE.] Any 
 28.17  person who, without negligence on that person's part, sustains 
 28.18  any loss or damage by reason of any omission, mistake or 
 28.19  misfeasance of the registrar or the registrar's deputy, or of 
 28.20  any examiner or of any court administrator, or of a deputy of 
 28.21  the court administrator or examiner, in the performance of their 
 28.22  respective duties under this law, and any person who, without 
 28.23  negligence on that person's part, is wrongfully deprived of any 
 28.24  land or of any interest therein by the registration thereof, or 
 28.25  by reason of the registration of any other person, as the owner 
 28.26  of such land, or by reason of any mistake, omission, or 
 28.27  misdescription in any certificate of title, or in any entry or 
 28.28  memorial, or by any cancellation, in the register of titles, and 
 28.29  who, by the provisions of this law, is precluded from bringing 
 28.30  an action for the recovery of such land, or of any interest 
 28.31  therein, or from enforcing any claim or lien upon the same, may 
 28.32  institute an action in the district court to recover 
 28.33  compensation out of the general fund for such loss or damage.  
 28.34     Subd. 2.  [DOCUMENTS MISFILED.] The registrar may 
 28.35  reasonably rely on the affirmative representation of the party 
 28.36  presenting instruments for filing as to whether the land 
 29.1   described in the instruments or any part of it is registered or 
 29.2   unregistered.  A party who requests that misfiled instruments be 
 29.3   refiled with the registrar is responsible for paying any 
 29.4   additional fees required to properly file any instrument 
 29.5   misfiled because of an incorrect representation and, if 
 29.6   applicable, to enter a new certificate of title. 
 29.7      Sec. 40.  Minnesota Statutes 1998, section 508.82, 
 29.8   subdivision 1, is amended to read: 
 29.9      Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
 29.10  to the registrar shall be as follows: 
 29.11     (1) of the fees provided herein, five percent of the fees 
 29.12  collected under clauses (3), (4), (10), (12), (13), (14), (15), 
 29.13  and (16), (17), and (18), for filing or memorializing shall be 
 29.14  paid to the state treasurer and credited to the general fund; 
 29.15  plus a $4.50 surcharge shall be charged and collected in 
 29.16  addition to the total fees charged for each transaction under 
 29.17  clauses (2) to (5), (10), (12), (14), and (18) (16), with 50 
 29.18  cents of this surcharge to be retained by the county to cover 
 29.19  its administrative costs and $4 to be paid to the state treasury 
 29.20  and credited to the general fund; 
 29.21     (2) for registering each original a first certificate of 
 29.22  title, and including issuing a duplicate copy of it, $30; 
 29.23     (3) for registering each instrument transferring the fee 
 29.24  simple title for which a new certificate of title is issued and 
 29.25  for the issuance and registration of the new certificate of 
 29.26  title, including a copy of it, $30; 
 29.27     (4) for the entry of each memorial on a certificate and 
 29.28  endorsements upon duplicate certificates, $15; 
 29.29     (5) for issuing each residue certificate, $20; 
 29.30     (6) for exchange certificates, $10 for each certificate 
 29.31  canceled and $10 for each new certificate issued; 
 29.32     (7) for each certificate showing condition of the register, 
 29.33  $10; 
 29.34     (8) for any certified copy of any instrument or writing on 
 29.35  file in the registrar's office, the same fees allowed by law to 
 29.36  county recorders for like services; 
 30.1      (9) for a noncertified copy of any certificate of title, 
 30.2   other than the copies issued under clauses (2) and (3) of this 
 30.3   subdivision, any instrument or writing on file in the office of 
 30.4   the registrar of titles, or any specified page or part of it, an 
 30.5   amount as determined by the county board for each page or 
 30.6   fraction of a page specified.  If computer or microfilm printers 
 30.7   are used to reproduce the instrument or writing, a like amount 
 30.8   per image; 
 30.9      (10) for filing two copies of any plat in the office of the 
 30.10  registrar, $30; 
 30.11     (11) for any other service under this chapter, such fee as 
 30.12  the court shall determine; 
 30.13     (12) for issuing a duplicate certificate of title pursuant 
 30.14  to the directive of the examiner of titles in counties in which 
 30.15  the compensation of the examiner is paid in the same manner as 
 30.16  the compensation of other county employees, $50, plus $10 to 
 30.17  memorialize; 
 30.18     (13) for issuing a duplicate certificate of title pursuant 
 30.19  to the directive of the examiner of titles in counties in which 
 30.20  the compensation of the examiner is not paid by the county or 
 30.21  pursuant to an order of the court, $10; 
 30.22     (14) (12) for filing a condominium plat or an amendment to 
 30.23  it in accordance with chapter 515, $30; 
 30.24     (15) (13) for a copy of a condominium plat filed pursuant 
 30.25  to chapters 515 and 515A, the fee shall be $1 for each page of 
 30.26  the condominium plat with a minimum fee of $10; 
 30.27     (16) (14) for filing a condominium declaration and plat or 
 30.28  an amendment to it in accordance with chapter 515A, $10 for each 
 30.29  certificate upon which the document is registered and $30 for 
 30.30  the filing of the condominium plat or an amendment thereto; 
 30.31     (17) (15) for the filing of a certified copy of a plat of 
 30.32  the survey pursuant to section 508.23 or 508.671, $10; 
 30.33     (18) (16) for filing a registered land survey in triplicate 
 30.34  in accordance with section 508.47, subdivision 4, $30; 
 30.35     (19) (17) for furnishing a certified copy of a registered 
 30.36  land survey in accordance with section 508.47, subdivision 4, 
 31.1   $10. 
 31.2      Sec. 41.  Minnesota Statutes 1998, section 508A.10, is 
 31.3   amended to read: 
 31.4      508A.10 [APPLICATION TO EXAMINER; POWERS OF EXAMINER.] 
 31.5      An application for registration for a CPT shall be 
 31.6   addressed to the examiner of titles in and for the county in 
 31.7   which the land described is situated.  The examiner shall have 
 31.8   the powers provided in sections 508A.01 to 508A.85 including but 
 31.9   not limited to the following:  
 31.10     (1) To approve all applications prior to filing of record; 
 31.11     (2) To require an abstract of title with searches and 
 31.12  recertifications as desired; 
 31.13     (3) To require that mailed notice be given to the holders 
 31.14  of any interest, when their addresses are known; 
 31.15     (4) To issue examiner's reports, supplemental reports, 
 31.16  initial directives, and supplemental directives to the registrar 
 31.17  regarding initial CPTs, owner's duplicates pursuant to section 
 31.18  508A.44 or memorials upon any CPT pursuant to section 508A.71; 
 31.19     (5) To require the county surveyor to review the proposed 
 31.20  legal description of any CPT or to inspect the real property; 
 31.21     (6) To suspend any proceeding hereunder upon receipt of any 
 31.22  valid written objections by persons claiming an interest in the 
 31.23  real property; and 
 31.24     (7) To require proceedings subsequent to the initial CPT as 
 31.25  may be necessary to achieve the purposes of sections 508A.01 to 
 31.26  508A.85, or to certify instruments transferring title pursuant 
 31.27  to sections 508A.59, 508A.62, and 508A.69. 
 31.28     Sec. 42.  Minnesota Statutes 1998, section 508A.11, 
 31.29  subdivision 3, is amended to read: 
 31.30     Subd. 3.  [FEES.] Before the examiner of titles examines 
 31.31  the abstract of title, the applicant shall pay to the registrar 
 31.32  of titles the fee provided by section 508A.82, clause (17) (15). 
 31.33     Sec. 43.  Minnesota Statutes 1998, section 508A.22, 
 31.34  subdivision 2, is amended to read: 
 31.35     Subd. 2.  [SUPPLEMENTAL DIRECTIVE.] When the directive has 
 31.36  been issued pursuant to subdivision 1, the abstract of title 
 32.1   shall be continued through the date the directive was filed with 
 32.2   the registrar of titles and then delivered to the examiner.  On 
 32.3   determining that the applicant is the record owner after an 
 32.4   examination of the continued abstract and the public records, 
 32.5   the examiner shall issue a supplemental directive to the 
 32.6   registrar of titles directing the registrar to show by memorial 
 32.7   that the five year statute of limitations provided by section 
 32.8   508A.17 will begin on the date the supplemental directive is 
 32.9   filed on the CPT, to show as memorials any additional liens, 
 32.10  encumbrances, or other interests affecting the land, and to 
 32.11  delete the memorials of any liens, encumbrances or other 
 32.12  interests which were satisfied, released or discharged prior to 
 32.13  the issuance of the CPT.  The supplemental directive of the 
 32.14  examiner shall then be filed as a memorial upon the CPT.  Each 
 32.15  additional lien, encumbrance, or other interest noted in the 
 32.16  supplemental directive shall be shown as a separate memorial on 
 32.17  the CPT in addition to the memorial of the supplemental 
 32.18  directive.  The abstract of title shall be delivered to the 
 32.19  registrar of titles who shall retain it, but it shall not be 
 32.20  entered as a memorial on the CPT.  Until the abstract of title 
 32.21  has been delivered to the registrar of titles, the registrar 
 32.22  shall not deliver the owner's duplicate CPT to the registered 
 32.23  owner nor accept for filing any instrument executed by the 
 32.24  registered owner.  
 32.25     Sec. 44.  Minnesota Statutes 1998, section 508A.22, 
 32.26  subdivision 3, is amended to read: 
 32.27     Subd. 3.  [FEES.] Upon the filing with the registrar of 
 32.28  titles of the examiner's directive pursuant to subdivision 1, 
 32.29  there shall be paid to the registrar:  (1) the fee provided by 
 32.30  section 508A.82, clause (2), for registering an original a first 
 32.31  CPT, and (2) the fee provided by section 508.74, which shall be 
 32.32  paid to the state treasurer pursuant to section 508.75.  Upon 
 32.33  filing with the registrar of titles the supplemental directive 
 32.34  of the examiner, there shall be paid to the registrar of titles 
 32.35  the fee for the entry of a memorial pursuant to section 508A.82, 
 32.36  clause (4).  
 33.1      Sec. 45.  Minnesota Statutes 1998, section 508A.25, is 
 33.2   amended to read: 
 33.3      508A.25 [RIGHTS OF PERSON HOLDING CPT.] 
 33.4      Every person holding a CPT issued pursuant to sections 
 33.5   508A.01 to 508A.85 who has acquired title in good faith and for 
 33.6   a valuable consideration shall hold the same free from all 
 33.7   encumbrances and adverse claims, excepting only estates, 
 33.8   mortgages, liens, charges, and interests as may be noted by 
 33.9   separate memorials in the latest CPT in the office of the 
 33.10  registrar, and also excepting the memorial provided in section 
 33.11  508A.351 and any of the following rights or encumbrances 
 33.12  subsisting against the same, if any:  
 33.13     (1) liens, claims, or rights arising or existing under the 
 33.14  laws or the constitution of the United States, which this state 
 33.15  cannot require to appear of record; 
 33.16     (2) the lien of any real property tax or special assessment 
 33.17  for which the land has not been sold at the date of the CPT; 
 33.18     (3) any lease for a period not exceeding three years when 
 33.19  there is actual occupation of the premises under it; 
 33.20     (4) all rights in public highways upon the land; 
 33.21     (5) the rights of any person in possession under deed or 
 33.22  contract for deed from the owner of the CPT; 
 33.23     (6) any liens, encumbrances, and other interests that may 
 33.24  be contained in the examiner's supplemental directive issued 
 33.25  pursuant to section 508A.22, subdivision 2; 
 33.26     (7) any claims that may be made pursuant to section 508A.17 
 33.27  within five years from the date the examiner's supplemental 
 33.28  directive is filed on the CPT; and 
 33.29     (8) any outstanding mechanics lien rights which may exist 
 33.30  under sections 514.01 to 514.17.  
 33.31     No existing or future lien for state taxes arising under 
 33.32  the laws of this state for the nonpayment of any amounts due 
 33.33  under chapter 268 or any tax administered by the commissioner of 
 33.34  revenue may encumber title to lands registered under this 
 33.35  chapter unless filed under the terms of this chapter. 
 33.36     Sec. 46.  Minnesota Statutes 1998, section 508A.35, is 
 34.1   amended to read: 
 34.2      508A.35 [FORMS OF CPT.] 
 34.3      The CPT shall contain the name and residence of the owner, 
 34.4   a description of the land and of the estate of the owner, and 
 34.5   shall by memorial contain a description of all encumbrances, 
 34.6   liens, and interests known to the owner to which the estate of 
 34.7   the owner is subject.  It shall state whether the owner is 18 
 34.8   years of age or older and if under any legal incapacity, the 
 34.9   nature of it.  It shall also state whether or not the owner is 
 34.10  married and if married, the name of the spouse.  In case the 
 34.11  land is held in trust or subject to any condition or limitation, 
 34.12  it shall state the nature and character of it.  It shall be in 
 34.13  substantially the following form:  
 34.14               CERTIFICATE OF POSSESSORY TITLE (CPT) 
 34.15     First Certificate of Possessory Title, pursuant to the 
 34.16  Directive of the Examiner of Titles, County of ..........., and 
 34.17  State of Minnesota, date .................., ..... 
 34.18                  Registration of Possessory Title 
 34.19  State of Minnesota       )
 34.20                           )ss
 34.21  County of ...............)
 34.22     This is to certify that ........................, of the 
 34.23  .................. of ................ County of ............., 
 34.24  and State of ......................, is now the owner of a fee 
 34.25  simple estate, to-wit, ........................................ 
 34.26  Subject to the encumbrances, liens, and interests noted by the 
 34.27  memorial underwritten or endorsed hereon; and subject to the 
 34.28  following rights or encumbrances subsisting, namely: 
 34.29     (1) Liens, claims, or rights arising under the laws of the 
 34.30  Constitution of the United States, which the statutes of this 
 34.31  state cannot require to appear of record; 
 34.32     (2) Any real property tax or special assessment for which a 
 34.33  sale of the land has not been had at the date of the CPT; 
 34.34     (3) Any lease for a period not exceeding three years, when 
 34.35  there is actual occupation of the premises under the lease; 
 34.36     (4) All rights in public highways upon the land; 
 35.1      (5) The rights, titles, estates, liens, and interests of 
 35.2   any person who has acquired an interest set forth in the 
 35.3   Examiner's Supplemental Directive issued pursuant to section 
 35.4   508A.22, subdivision 2; 
 35.5      (6) The rights of any person in possession under deed or 
 35.6   contract for deed from the owner of the CPT; 
 35.7      (7) Any claims that may be made pursuant to section 508A.17 
 35.8   within five years from the date the Examiner's Supplemental 
 35.9   Directive is filed on the CPT; and 
 35.10     (8) Any outstanding mechanics lien rights which may exist 
 35.11  under sections 514.01 to 514.17.  
 35.12     In witness whereof, I have hereunto subscribed my name and 
 35.13  affixed the seal of my office, this ............ day of 
 35.14  ...................., ..... 
 35.15  ...................................
 35.16                            Registrar of Titles, in and for the
 35.17                            County of ..................... and
 35.18                            State of Minnesota.  
 35.19     All CPTs issued subsequent to the first shall be in like 
 35.20  form except that they shall be entitled "Transfer from number 
 35.21  (here give the number of the next previous CPT relating to the 
 35.22  same land)," and shall also contain the words "Originally 
 35.23  registered (date, volume, and page of registration)."  
 35.24     CPTs shall be indexed and maintained in the same manner as 
 35.25  provided for certificates of title under chapter 508.  
 35.26     Sec. 47.  Minnesota Statutes 1998, section 508A.38, is 
 35.27  amended to read: 
 35.28     508A.38 [FORMS OF RECORDS ADOPTED.] 
 35.29     Every instrument Instruments affecting the title to land, 
 35.30  filed with the registrar pursuant to sections 508A.01 to 
 35.31  508A.85, shall be numbered consecutively by the registrar who to 
 35.32  the extent practicable and the registrar shall endorse upon the 
 35.33  same each instrument over the registrar's official signature, 
 35.34  OFFICE OF THE REGISTRAR OF TITLES, ... COUNTY, MINNESOTA, 
 35.35  CERTIFIED AND FILED ON, together with the date, hour, and minute 
 35.36  when the same instrument is filed, the document number thereof, 
 36.1   and a reference to its the proper CPT.  Every instrument shall 
 36.2   be retained by the registrar and regarded as registered from the 
 36.3   time of filing except that the Instruments may shall be copied 
 36.4   or reproduced as provided by section 15.17, and the copies or 
 36.5   reproductions of them substituted for the originals with the 
 36.6   equal force and effect as they have.  The originals may be then 
 36.7   destroyed as provided by section 15.17 as amended.  Instruments 
 36.8   shall then be returned in person or by mail to the party who 
 36.9   presented the instruments for filing or to any other party to 
 36.10  whom the registrar is directed to deliver the instruments.  When 
 36.11  the memorial of any instrument is made upon any CPT, the date, 
 36.12  number, and time of filing of it shall also be endorsed upon the 
 36.13  CPT.  All records and papers relating to registered land in the 
 36.14  office of the registrar shall be open to the inspection of the 
 36.15  public at the times and under the conditions as the court may 
 36.16  prescribe.  Duplicates of all instruments, voluntary or 
 36.17  involuntary, filed and registered with the registrar, may be 
 36.18  presented with the originals, and shall thereupon be endorsed 
 36.19  with the file number, and other memoranda on the originals, and 
 36.20  may be attested and sealed by the registrar, and returned to the 
 36.21  person presenting it them.  The registrar shall furnish 
 36.22  certified copies of the instruments filed and registered in the 
 36.23  registrar's office, upon payment of a fee as provided in section 
 36.24  357.18.  The court shall adopt general forms of memorials and 
 36.25  notations to be used by the registrars in registering the common 
 36.26  forms of conveyance and other instruments. 
 36.27     Sec. 48.  Minnesota Statutes 1998, section 508A.40, is 
 36.28  amended to read: 
 36.29     508A.40 [OWNER'S DUPLICATE RECEIPT COPY OF CPT TO BE 
 36.30  FURNISHED TO OWNER.] 
 36.31     At the time the first When a CPT is entered, the registrar 
 36.32  shall make a duplicate of it, endorsing across the face of the 
 36.33  duplicate the words "Owner's Duplicate CPT" copy of it and 
 36.34  deliver it to the owner or the owner's authorized attorney 
 36.35  agent.  The registrar shall, in every case, when it is 
 36.36  practicable so to do, take from the owner a receipt for the 
 37.1   duplicate CPT, which shall be signed by the owner in person.  In 
 37.2   the case of multiple owners the receipt may be executed by any 
 37.3   one of the owners.  The receipt, when signed and delivered in 
 37.4   the office of the registrar, shall be witnessed by the registrar 
 37.5   or the registrar's deputy.  If the receipt is signed elsewhere, 
 37.6   it shall be acknowledged in the same manner as a deed.  The 
 37.7   receipt shall be prima facie evidence of the genuineness of the 
 37.8   signature.  The copy need not be presented or surrendered to 
 37.9   permit an instrument, voluntary or otherwise, to be filed or a 
 37.10  new CPT to be entered, or a memorial to be made on a CPT. 
 37.11     Sec. 49.  Minnesota Statutes 1998, section 508A.421, 
 37.12  subdivision 2, is amended to read: 
 37.13     Subd. 2.  [MULTIPLE PARCELS OR INTERESTS.] The owner or 
 37.14  owners of registered land holding (1) one CPT for two or more 
 37.15  parcels of land or (2) one CPT for undivided interests in one or 
 37.16  more parcels of land may surrender the owner's duplicate CPT for 
 37.17  the land and thereupon the registrar may request the registrar 
 37.18  to issue separate CPTs to each owner or for each parcel or any 
 37.19  combination thereof as may be desired consistent with their 
 37.20  registered interests, provided a registered land survey is not 
 37.21  required by section 508A.47. When the registrar of titles has 
 37.22  issued more than one CPT to one or more owners for one or more 
 37.23  parcels of land, the owner or owners may surrender the owner's 
 37.24  duplicate CPT for the land and thereupon the registrar 
 37.25  may request the registrar to issue a single CPT for all of the 
 37.26  land to the owner or owners of the land, or the registrar may 
 37.27  issue two or more CPTs to the owner or owners of the land or for 
 37.28  each parcel or any combination thereof as may be desired 
 37.29  consistent with their registered interests, provided a 
 37.30  registered land survey is not required by section 508A.47.  
 37.31     Sec. 50.  Minnesota Statutes 1998, section 508A.47, 
 37.32  subdivision 4, is amended to read: 
 37.33     Subd. 4.  [SURVEY; REQUISITES; FILING; COPIES.] The 
 37.34  registered land survey shall correctly show the legal 
 37.35  description of the parcel of unplatted land represented by the 
 37.36  registered land survey and the outside measurements of the 
 38.1   parcel of unplatted land and of all tracts delineated therein, 
 38.2   the direction of all lines of the tracts to be shown by angles 
 38.3   or bearings or other relationship to the outside lines of the 
 38.4   registered land survey, and the surveyor shall place monuments 
 38.5   in the ground at appropriate corners, and all tracts shall be 
 38.6   lettered consecutively beginning with the letter "A."  A 
 38.7   registered land survey which delineates multilevel tracts shall 
 38.8   include a map showing the elevation view of the tracts with 
 38.9   their upper and lower boundaries defined by elevations 
 38.10  referenced to National Geodetic Vertical Datum, 1929 
 38.11  adjustment.  None of the tracts or parts of them may be 
 38.12  dedicated to the public by the registered land survey.  Except 
 38.13  in counties having microfilming capabilities, a reproduction 
 38.14  copy of the registered land survey shall be delivered to the 
 38.15  county auditor.  The registered land survey shall be on paper, 
 38.16  mounted on cloth, shall be a black on white drawing, the scale 
 38.17  to be not smaller than one inch equals 200 feet, and shall be 
 38.18  certified to be a correct representation of the parcel of 
 38.19  unplatted land by a registered surveyor.  The mounted drawing 
 38.20  shall be exactly either 17 inches by 14 inches or at the 
 38.21  registrar's request 20 inches by 30 inches and not less than 
 38.22  2-1/2 inches of the 14 inches or the 20 inches shall be blank 
 38.23  for binding purposes.  The survey shall be filed in triplicate 
 38.24  with the registrar of titles.  Before filing, however, any 
 38.25  survey shall be approved in the manner required for the approval 
 38.26  of subdivision plats, which approval shall be endorsed on it or 
 38.27  attached to it.  
 38.28     A certificate from the treasurer stating that current taxes 
 38.29  have been paid shall be presented at the time of filing before 
 38.30  the survey is accepted by the registrar for filing. 
 38.31     In counties having microfilming capabilities, the survey 
 38.32  may be prepared on sheets of suitable mylar or on linen tracing 
 38.33  cloth by photographic process or on material of equal quality. 
 38.34  Notwithstanding any provisions of subdivision 5 to the contrary, 
 38.35  no other copies of the survey need be filed.  
 38.36     The registrar shall duly certify and furnish to any person 
 39.1   a copy of the registered land survey.  The copy shall be 
 39.2   admissible in evidence.  
 39.3      Sec. 51.  Minnesota Statutes 1998, section 508A.49, is 
 39.4   amended to read: 
 39.5      508A.49 [INTEREST LESS THAN FEE; NOTICED BY MEMORIAL.] 
 39.6      No new CPT shall be issued upon any transfer of land 
 39.7   registered under sections 508A.01 to 508A.85 which does not 
 39.8   divest the title in fee simple of the land, or some part of it.  
 39.9   All interests in the registered land, less than an estate in fee 
 39.10  simple, shall be registered by filing with the registrar the 
 39.11  instrument which creates, transfers, or claims the interest, and 
 39.12  by brief memorandum or memorial of it made and signed by the 
 39.13  registrar upon the CPT.  A similar memorandum shall also be made 
 39.14  on the owner's duplicate if practicable so to do.  The 
 39.15  cancellation of interests shall be registered in the same manner.
 39.16     Sec. 52.  Minnesota Statutes 1998, section 508A.51, 
 39.17  subdivision 1, is amended to read: 
 39.18     Subdivision 1.  [IF VOLUNTARY INSTRUMENT; EXCEPTION:  COURT 
 39.19  ORDER NEW CPT OR MEMORIAL OF REGISTRATION.] Except as provided 
 39.20  in subdivision 2, no new CPT shall be entered or issued, and no 
 39.21  memorial shall be made upon any CPT in pursuance of any deed or 
 39.22  other voluntary instrument made by the registered owner or the 
 39.23  registered owner's attorney-in-fact, unless the owner's 
 39.24  duplicate is presented with it, except upon the order of the 
 39.25  court.  When an order or directive is made, a memorial of it 
 39.26  shall be entered, or a new CPT issued as directed.  The 
 39.27  registrar shall require that the owner's duplicate be presented 
 39.28  only when an instrument is submitted for filing that is executed 
 39.29  by the registered owner or the registered owner's 
 39.30  attorney-in-fact.  When any voluntary instrument made by the 
 39.31  registered owner or the registered owner's attorney-in-fact is 
 39.32  presented for registration, the production of the owner's 
 39.33  duplicate CPT shall authorize the registrar to shall enter a new 
 39.34  CPT or to make a memorial of registration in accordance with the 
 39.35  instrument, and the new CPT or memorial shall be binding upon 
 39.36  the registered owner and upon all persons claiming under the 
 40.1   registered owner in favor of every purchaser for value and in 
 40.2   good faith.  In all cases of registration which are procured by 
 40.3   fraud, the owner may pursue all legal and equitable remedies 
 40.4   against the parties to the fraud, without prejudice to the 
 40.5   rights of any innocent holder for value of a CPT.  
 40.6      Sec. 53.  Minnesota Statutes 1998, section 508A.52, is 
 40.7   amended to read: 
 40.8      508A.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF 
 40.9   NEW CPT.] 
 40.10     An owner of land registered under sections 508A.01 to 
 40.11  508A.85 who desires to convey the land, or a portion of it, in 
 40.12  fee, shall execute a deed of conveyance, and file the deed, 
 40.13  together with the owner's duplicate CPT, with the registrar.  
 40.14  The registrar shall require an affidavit by the grantee, or some 
 40.15  person in the grantee's behalf, which affidavit shall set forth 
 40.16  the name and residence of the grantee, whether the grantee is 18 
 40.17  years of age or older, and whether the grantee is or is not 
 40.18  under legal incapacity, whether or not married, and if married, 
 40.19  the name of the spouse.  The deed of conveyance shall be filed 
 40.20  and endorsed with the number and place of registration of the 
 40.21  owner's CPT.  Before canceling the outstanding CPT, the 
 40.22  registrar shall show by memorial on it the registration of the 
 40.23  deed on the basis of which it is canceled.  The encumbrances, 
 40.24  claims, or interests adverse to the title of the registered 
 40.25  owner shall be stated upon the new CPT, except so far as they 
 40.26  may be simultaneously released or discharged.  The owner's 
 40.27  duplicate CPT and the original CPT shall be marked "Canceled" by 
 40.28  the registrar, who shall enter in the register a new CPT to the 
 40.29  grantee, and prepare and deliver to the grantee a copy of the 
 40.30  new owner's duplicate CPT.  If a deed in fee is for a portion of 
 40.31  the land described in a CPT, the memorial of the deed entered by 
 40.32  the registrar shall include the legal description contained in 
 40.33  the deed and the registrar shall enter a new CPT to the grantee 
 40.34  for the portion of the land conveyed and, except as otherwise 
 40.35  provided in this section, issue a residue CPT to the grantor for 
 40.36  the portion of the land not conveyed.  The registrar shall 
 41.1   prepare and deliver to each of the parties a new owner's 
 41.2   duplicate CPT for copy of their respective CPTs.  In lieu of 
 41.3   canceling the grantor's CPT and issuing a residue CPT and 
 41.4   owner's duplicate CPT to the grantor for the portion of the land 
 41.5   not conveyed, the registrar may if the grantor's deed does not 
 41.6   divide a parcel of unplatted land, and in the absence of a 
 41.7   request to the contrary by the registered owner, mark by the 
 41.8   land description on both the owner's duplicate CPT and the 
 41.9   original CPT "Part of land conveyed, see memorials."  The fee 
 41.10  for a residue CPT shall be paid to the registrar only when the 
 41.11  grantor's CPT is canceled after the conveyance by the grantor of 
 41.12  a portion of the land described in the grantor's CPT.  When two 
 41.13  or more successive conveyances of the same property are filed 
 41.14  for registration on the same day the registrar may enter a CPT 
 41.15  in favor of the grantee or grantees in the last of the 
 41.16  successive conveyances, and the memorial of the previous deed or 
 41.17  deeds entered on the prior CPT shall have the same force and 
 41.18  effect as though the prior CPT had been entered in favor of the 
 41.19  grantee or grantees in the earlier deed or deeds in the 
 41.20  successive conveyances.  The fees for the registration of the 
 41.21  earlier deed or deeds shall be the same as the fees prescribed 
 41.22  for the entry of memorials.  The registrar of titles, with the 
 41.23  consent of the transferee, may mark "See memorials for new 
 41.24  owner(s)" by the names of the registered owners on both the 
 41.25  original CPT and the owner's duplicate CPT and also add to the 
 41.26  memorial of the transferring conveyance a statement that the 
 41.27  memorial shall serve in lieu of a new CPT in favor of the 
 41.28  grantee or grantees noted in it and may refrain from canceling 
 41.29  the CPT until the time it is canceled by a subsequent transfer, 
 41.30  and the memorial showing the transfer of title shall have the 
 41.31  same effect as the entry of a new CPT for the land described in 
 41.32  the CPT.  The fee for the registration of a conveyance without 
 41.33  cancellation of the CPT shall be the same as the fee prescribed 
 41.34  for the entry of a memorial. 
 41.35     Sec. 54.  Minnesota Statutes 1998, section 508A.55, is 
 41.36  amended to read: 
 42.1      508A.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON 
 42.2   CERTIFICATE CPT.] 
 42.3      The registration of a mortgage made by the registered owner 
 42.4   or, the registered owner's attorney-in-fact or by a party who 
 42.5   has an interest registered on the CPT other than the registered 
 42.6   owner or the registered owner's attorney-in-fact, shall be made 
 42.7   in the following manner:  The owner's duplicate CPT mortgage 
 42.8   deed or other instrument to be registered shall be presented to 
 42.9   the registrar, together with the mortgage deed, or other 
 42.10  instrument to be registered, and the registrar shall enter upon 
 42.11  the original CPT and also upon the owner's duplicate CPT a 
 42.12  memorial of the purport of the instrument registered, the exact 
 42.13  time of filing, and its file number.  The registrar shall also 
 42.14  note upon the registered instrument the time of filing and a 
 42.15  reference to the volume and page where it is registered.  
 42.16     Sec. 55.  Minnesota Statutes 1998, section 508A.56, is 
 42.17  amended to read: 
 42.18     508A.56 [ASSIGNMENT AND DISCHARGE OF MORTGAGE.] 
 42.19     When a mortgage is assigned, extended, or otherwise dealt 
 42.20  with, a memorial of the instrument shall be made upon the 
 42.21  original CPT.  In case only a part of the mortgage upon the land 
 42.22  is intended to be released or discharged, a memorial of the 
 42.23  partial release shall be entered. 
 42.24     Sec. 56.  Minnesota Statutes 1998, section 508A.57, is 
 42.25  amended to read: 
 42.26     508A.57 [FORECLOSURE; NOTICE.] 
 42.27     Mortgages upon land registered under sections 508A.01 to 
 42.28  508A.85 may be foreclosed in the same manner as mortgages upon 
 42.29  unregistered land.  Where the mortgage is upon registered land 
 42.30  it shall be sufficient to authorize the foreclosure of it by 
 42.31  advertisement, if the mortgage and all assignments of it have 
 42.32  been registered, and a memorial of it duly entered upon the 
 42.33  CPT.  When a mortgage upon the registered land is foreclosed by 
 42.34  advertisement, the notice of foreclosure shall state the date of 
 42.35  the mortgage, when and where registered, and the fact of 
 42.36  registration.  All laws relating to the foreclosure of mortgages 
 43.1   upon unregistered land shall apply to mortgages upon land 
 43.2   registered under sections 508A.01 to 508A.85, or any estate or 
 43.3   interest therein, except as herein provided, and except that a 
 43.4   notice of the pendency of any suit or proceeding to enforce or 
 43.5   foreclose the mortgage or other charge upon the land shall be 
 43.6   filed with the registrar, and a memorial of it entered on the 
 43.7   register CPT before the first date of publication of the 
 43.8   foreclosure notice but not sooner than six months before the 
 43.9   first date of publication.  A notice so filed and registered 
 43.10  shall be notice to the registrar and to all persons thereafter 
 43.11  dealing with the land or any part of it and satisfies the 
 43.12  requirements of section 580.032, subdivision 3, with respect to 
 43.13  registered land.  In all foreclosures, all certificates and 
 43.14  affidavits permitted or required by law to be recorded with the 
 43.15  county recorder shall be filed with the registrar who shall 
 43.16  register them. 
 43.17     Sec. 57.  Minnesota Statutes 1998, section 508A.58, is 
 43.18  amended to read: 
 43.19     508A.58 [REGISTRATION AFTER FORECLOSURE; NEW CPT.] 
 43.20     Subdivision 1.  [COURT ORDER.] Any person who has, by an 
 43.21  action or other proceeding to enforce or foreclose a mortgage, 
 43.22  lien, or other charge upon land registered under sections 
 43.23  508A.01 to 508A.85, become the owner in fee of the land, or any 
 43.24  part of it, may have the title registered.  Except as provided 
 43.25  in subdivision 2, the person shall apply by duly verified 
 43.26  petition to the court for a new CPT to the land, and the court 
 43.27  shall then, after due notice to all parties in interest and upon 
 43.28  the hearing as the court may direct, make an order for the 
 43.29  issuance of a new CPT to the person entitled thereto, and the 
 43.30  registrar shall then enter a new CPT to the land, or of the part 
 43.31  of it to which the petitioner is entitled, and issue an owner's 
 43.32  duplicate as in the case of a voluntary conveyance.  
 43.33     Subd. 2.  [EXAMINER OF TITLES DIRECTIVE.] Any person who 
 43.34  has become the owner in fee of land registered under sections 
 43.35  508A.01 to 508A.85, or any part of the land, pursuant to a 
 43.36  mortgage foreclosure by action under chapter 581 is entitled to 
 44.1   a new CPT for the land described in the sheriff's certificate of 
 44.2   sale or so much of the land as may be described in 
 44.3   the certificate of title CPT, after the redemption period 
 44.4   expires.  The registrar shall enter a new CPT and issue a new 
 44.5   owner's duplicate certificate only pursuant to the court order 
 44.6   provided in subdivision 1 or upon the written directive of the 
 44.7   examiner of titles as to the legal sufficiency of the mortgage 
 44.8   foreclosure proceeding.  The directive of the examiner of titles 
 44.9   also must specify the instruments the registrar shall omit from 
 44.10  the new CPT by virtue of the foreclosure. 
 44.11     Sec. 58.  Minnesota Statutes 1998, section 508A.59, is 
 44.12  amended to read: 
 44.13     508A.59 [REGISTRATION OF JUDGMENT OR FINAL DECREE.] 
 44.14     A judgment or decree affecting land registered under 
 44.15  sections 508A.01 to 508A.85 shall be registered upon the 
 44.16  presentation of a certified copy of it to the registrar, who 
 44.17  shall enter a memorial of it upon the original CPT and upon the 
 44.18  owner's duplicate, if practicable so to do.  When the registered 
 44.19  owner of the land is by the judgment or decree divested of an 
 44.20  estate in fee in it, or of any part of it, the prevailing party 
 44.21  shall be entitled to a new CPT for the land, or so much of it as 
 44.22  is described in the judgment and decree.  The registrar shall 
 44.23  enter the new CPT and issue a new owner's duplicate CPT as in 
 44.24  the case of a voluntary conveyance.  No new CPT shall be entered 
 44.25  except upon the written certification of the examiner of titles 
 44.26  as to the legal sufficiency of the documents presented for 
 44.27  filing for the purpose of issuance of a new CPT or upon the 
 44.28  order of the district court directing the issuance of it.  
 44.29     Sec. 59.  Minnesota Statutes 1998, section 508A.61, 
 44.30  subdivision 2, is amended to read: 
 44.31     Subd. 2.  [NEW TRUSTEE.] When a new trustee of land 
 44.32  registered under sections 508A.01 to 508A.85 is appointed, a new 
 44.33  CPT shall be entered in the new trustee's name upon presentation 
 44.34  to the registrar of a certified copy of the decree or other 
 44.35  instrument appointing the new trustee and the surrender of the 
 44.36  owner's duplicate CPT.  
 45.1      Sec. 60.  Minnesota Statutes 1998, section 508A.61, 
 45.2   subdivision 3, is amended to read: 
 45.3      Subd. 3.  [VOLUNTARY DISSOLUTION.] Where a corporate owner 
 45.4   did adopt a resolution for voluntary dissolution pursuant to 
 45.5   chapter 301, the registrar of titles shall enter a new CPT in 
 45.6   the name of the trustee in dissolution upon the surrender of the 
 45.7   owner's duplicate CPT and the presentation of a certified copy 
 45.8   of the certificate setting forth the adoption of the resolution 
 45.9   together with the certificate of the secretary of state that the 
 45.10  certificate of dissolution has been filed for record in the 
 45.11  secretary's office.  
 45.12     Sec. 61.  Minnesota Statutes 1998, section 508A.71, is 
 45.13  amended by adding a subdivision to read: 
 45.14     Subd. 1a.  [CORRECTIONS OF REGISTRAR'S CLERICAL 
 45.15  ERRORS.] The registrar may correct clerical errors or omissions 
 45.16  made by the registrar's staff in producing CPTs.  An error shall 
 45.17  not be erased or obliterated.  The registrar may sign and file a 
 45.18  correction document and memorialize it upon the affected CPT, or 
 45.19  may make a correction memorial without a correction document.  
 45.20  The memorial shall show the date, time of entry, the nature of 
 45.21  the error or omission, and the correct information.  Where the 
 45.22  error or omission may adversely affect the interest of any 
 45.23  party, the registrar shall refer the correction to the examiner 
 45.24  of titles.  The registrar shall prepare subsequent CPTs 
 45.25  correctly and omit the memorial of the correction. 
 45.26     Sec. 62.  Minnesota Statutes 1998, section 508A.71, 
 45.27  subdivision 2, is amended to read: 
 45.28     Subd. 2.  [COURT ORDERS.] A registered owner or other 
 45.29  person in interest may, at any time, apply by petition to the 
 45.30  court, upon the ground that (1) registered interests of any 
 45.31  description, whether vested, contingent, expectant, or inchoate, 
 45.32  have terminated and ceased; or that (2) new interests have 
 45.33  arisen or been created which do not appear upon the CPT; or 
 45.34  that (3) any error or omission was made in entering a CPT or any 
 45.35  memorial on it, or on any duplicate CPT; or that (4) the name of 
 45.36  any person on the CPT has been changed; or that (5) the 
 46.1   registered owner has married, or, if registered as married, that 
 46.2   the marriage has been terminated; or that (6) a corporation 
 46.3   which owned land registered under sections 508A.01 to 508A.85 
 46.4   and has been dissolved has not conveyed it within three years 
 46.5   after its dissolution; or (7) upon any reasonable ground, that 
 46.6   any other alteration or adjudication should be made.  The court 
 46.7   may hear and determine the petition after notice given to all 
 46.8   parties in interest, as determined by the examiner of titles, by 
 46.9   a summons issued in the form and served in the manner as in 
 46.10  initial applications pursuant to chapter 508 or by an order to 
 46.11  show cause, as the court may deem appropriate.  After notice has 
 46.12  been given as ordered, the court may order the entry of a new 
 46.13  CPT, the entry, amendment, or cancellation of a memorial upon a 
 46.14  CPT, or grant any other relief upon terms, requiring security if 
 46.15  necessary, as it may consider proper.  A certified copy of the 
 46.16  petition may be filed as a memorial on any appropriate CPT which 
 46.17  shall be notice forever to purchasers and encumbrancers of the 
 46.18  pendency of the proceeding and all matters referred to in the 
 46.19  court files and records pertaining to the proceeding.  
 46.20     Sec. 63.  Minnesota Statutes 1998, section 508A.71, 
 46.21  subdivision 3, is amended to read: 
 46.22     Subd. 3.  [CANCELLATION OF MEMORIAL.] At the request of a 
 46.23  registered owner or other person in interest the examiner of 
 46.24  titles by a written directive may order (1) the amendment or 
 46.25  cancellation of a memorial relating to racial restrictions, 
 46.26  rights which are barred by a statute or rights which have 
 46.27  expired by the terms of the instrument creating the rights, or 
 46.28  (2) upon the submission of evidence satisfactory to the 
 46.29  examiner, the correction of the name or designation of a party 
 46.30  who is a registered owner or who has an interest registered on a 
 46.31  certificate of title.  The registrar of titles shall register 
 46.32  the directives of the examiner of titles upon the CPTs CPT, and 
 46.33  shall give full faith to the directives.  
 46.34     Sec. 64.  Minnesota Statutes 1998, section 508A.71, 
 46.35  subdivision 5, is amended to read: 
 46.36     Subd. 5.  [JOINT TENANTS; SURVIVAL.] In case of a CPT 
 47.1   outstanding to two or more owners as joint tenants, upon the 
 47.2   filing for registration of a certificate of death of one of the 
 47.3   joint tenants and an affidavit of survivorship, and upon the 
 47.4   surrender of the owner's duplicate CPT, the registrar without an 
 47.5   order or directive shall issue a new CPT for the premises to the 
 47.6   survivor in severalty or to the survivors in joint tenancy as 
 47.7   the case may be. 
 47.8      Sec. 65.  Minnesota Statutes 1998, section 508A.71, 
 47.9   subdivision 6, is amended to read: 
 47.10     Subd. 6.  [CERTIFIED COPIES OF INSTRUMENTS; FILING.] When 
 47.11  instruments affecting land registered under sections 508A.01 to 
 47.12  508A.85 have been recorded in the office of any county recorder 
 47.13  in this state, a certified copy of it may be filed for 
 47.14  registration and registered with like effect as the original 
 47.15  instrument without an order or directive.  The owner's duplicate 
 47.16  CPT shall be presented to the registrar, together with the 
 47.17  certified copy, whenever the presentation is required by statute 
 47.18  for registration of the original instrument. 
 47.19     Sec. 66.  Minnesota Statutes 1998, section 508A.72, is 
 47.20  amended to read: 
 47.21     508A.72 [AGENCY; POWER TO BE REGISTERED.] 
 47.22     Any act which may legally be done or performed by any 
 47.23  person under sections 508A.01 to 508A.85 may be done and 
 47.24  performed by an agent when duly authorized in writing.  The 
 47.25  instrument or power of attorney shall be filed with and 
 47.26  registered by the registrar if it is executed and acknowledged 
 47.27  as required by law in the case of a deed.  Any instrument 
 47.28  revoking the power of attorney may be filed and registered if it 
 47.29  is executed and acknowledged in the same way.  A written 
 47.30  instrument of revocation of an unregistered power of attorney, 
 47.31  executed and acknowledged by a person having a registered 
 47.32  interest in land, may be filed for registration as a memorial 
 47.33  upon the certificate of title CPT. 
 47.34     Sec. 67.  Minnesota Statutes 1998, section 508A.76, is 
 47.35  amended to read: 
 47.36     508A.76 [DAMAGES THROUGH ERRONEOUS REGISTRATION; 
 48.1   ACTION REGISTRAR'S LIABILITY.] 
 48.2      Subdivision 1.  [DAMAGES THROUGH ERRONEOUS REGISTRATION.] 
 48.3   Any person who, without negligence on that person's part, 
 48.4   sustains any loss or damage by reason of any omission, mistake 
 48.5   or misfeasance of the registrar or the registrar's deputy, or of 
 48.6   any examiner or of any court administrator, or of a deputy of 
 48.7   the court administrator or examiner, in the performance of their 
 48.8   respective duties under sections 508A.01 to 508A.85, and any 
 48.9   person who, without negligence on that person's part, is 
 48.10  wrongfully deprived of any land or of any interest in it by the 
 48.11  registration of it, or by reason of the registration of any 
 48.12  other person, as the owner of the land, or by reason of any 
 48.13  mistake, omission, or misdescription in any CPT, or in any entry 
 48.14  or memorial, or by any cancellation, in the register of titles, 
 48.15  and who, by the provisions of sections 508A.01 to 508A.85, is 
 48.16  precluded from bringing an action for the recovery of the land, 
 48.17  or of any interest in it, or from enforcing any claim or lien 
 48.18  upon the same, may institute an action in the district court to 
 48.19  recover compensation out of the general fund for the loss or 
 48.20  damage.  
 48.21     Subd. 2.  [DOCUMENTS MISFILED.] The registrar may 
 48.22  reasonably rely on the affirmative representation of the party 
 48.23  presenting instruments for filing as to whether the land 
 48.24  described in the instruments or any part of it is registered or 
 48.25  unregistered.  A party requesting that misfiled instruments be 
 48.26  refiled with the registrar is responsible for paying any 
 48.27  additional fees required to properly file any instrument 
 48.28  misfiled because of an incorrect representation and, if 
 48.29  applicable, to enter a new CPT. 
 48.30     Sec. 68.  Minnesota Statutes 1998, section 508A.82, 
 48.31  subdivision 1, is amended to read: 
 48.32     Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
 48.33  to the registrar shall be as follows:  
 48.34     (1) of the fees provided herein, five percent of the fees 
 48.35  collected under clauses (3), (4), (10), (12), (13), (14), and 
 48.36  (16), and (18), for filing or memorializing shall be paid to the 
 49.1   state treasurer and credited to the general fund; plus a $4.50 
 49.2   surcharge shall be charged and collected in addition to the 
 49.3   total fees charged for each transaction under clauses (2) to 
 49.4   (5), (10), (12), (14), and (18) (16), with 50 cents of this 
 49.5   surcharge to be retained by the county to cover its 
 49.6   administrative costs and $4 to be paid to the state treasury and 
 49.7   credited to the general fund; 
 49.8      (2) for registering each original a first CPT, and 
 49.9   including issuing a duplicate copy of it, $30; 
 49.10     (3) for registering each instrument transferring the fee 
 49.11  simple title for which a new CPT is issued and for the issuance 
 49.12  and registration of the new CPT, including a copy of it, $30; 
 49.13     (4) for the entry of each memorial on a certificate and 
 49.14  endorsements upon duplicate CPTs CPT, $15; 
 49.15     (5) for issuing each residue CPT, $20; 
 49.16     (6) for exchange CPTs, $10 for each CPT canceled and $10 
 49.17  for each new CPT issued; 
 49.18     (7) for each certificate CPT showing condition of the 
 49.19  register, $10; 
 49.20     (8) for any certified copy of any instrument or writing on 
 49.21  file in the registrar's office, the same fees allowed by law to 
 49.22  county recorders for like services; 
 49.23     (9) for a noncertified copy of any CPT, other than the 
 49.24  copies issued under clauses (2) and (3), any instrument or 
 49.25  writing on file in the office of the registrar of titles, or any 
 49.26  specified page or part of it, an amount as determined by the 
 49.27  county board for each page or fraction of a page specified.  If 
 49.28  computer or microfilm printers are used to reproduce the 
 49.29  instrument or writing, a like amount per image; 
 49.30     (10) for filing two copies of any plat in the office of the 
 49.31  registrar, $30; 
 49.32     (11) for any other service under sections 508A.01 to 
 49.33  508A.85, the fee the court shall determine; 
 49.34     (12) for issuing a duplicate CPT pursuant to the directive 
 49.35  of the examiner of titles in counties in which the compensation 
 49.36  of the examiner is paid in the same manner as the compensation 
 50.1   of other county employees, $50, plus $10 to memorialize; 
 50.2      (13) for issuing a duplicate CPT pursuant to the directive 
 50.3   of the examiner of titles in counties in which the compensation 
 50.4   of the examiner is not paid by the county or pursuant to an 
 50.5   order of the court, $10; 
 50.6      (14) (12) for filing a condominium plat or an amendment to 
 50.7   it in accordance with chapter 515, $30; 
 50.8      (15) (13) for a copy of a condominium plat filed pursuant 
 50.9   to chapters 515 and 515A, the fee shall be $1 for each page of 
 50.10  the condominium plat with a minimum fee of $10; 
 50.11     (16) (14) for filing a condominium declaration and 
 50.12  condominium plat or an amendment to it in accordance with 
 50.13  chapter 515A, $10 for each certificate CPT upon which the 
 50.14  document is registered and $30 for the filing of the condominium 
 50.15  plat or an amendment to it; 
 50.16     (17) (15) in counties in which the compensation of the 
 50.17  examiner of titles is paid in the same manner as the 
 50.18  compensation of other county employees, for each parcel of land 
 50.19  contained in the application for a CPT, as the number of parcels 
 50.20  is determined by the examiner, a fee which is reasonable and 
 50.21  which reflects the actual cost to the county, established by the 
 50.22  board of county commissioners of the county in which the land is 
 50.23  located; 
 50.24     (18) (16) for filing a registered land survey in triplicate 
 50.25  in accordance with section 508A.47, subdivision 4, $30; and 
 50.26     (19) (17) for furnishing a certified copy of a registered 
 50.27  land survey in accordance with section 508A.47, subdivision 4, 
 50.28  $10. 
 50.29     Sec. 69.  Minnesota Statutes 1998, section 508A.85, 
 50.30  subdivision 3, is amended to read: 
 50.31     Subd. 3.  [CHANGEOVER AT REQUEST OF OWNER.] Subsequent to 
 50.32  the expiration of the five year period set forth in section 
 50.33  508A.17, any registered owner of a CPT may request a changeover, 
 50.34  and upon surrender of the owner's duplicate CPT and payment of 
 50.35  the fee for an exchange as specified in section 508A.82, clause 
 50.36  (6), the registrar shall issue a certificate of title and cancel 
 51.1   the CPT. 
 51.2      Sec. 70.  Minnesota Statutes 1998, section 508A.85, 
 51.3   subdivision 4, is amended to read: 
 51.4      Subd. 4.  [CHANGEOVER, MEMORIALS ON CERTIFICATE OF TITLE.] 
 51.5   Any certificate of title issued pursuant to this section shall 
 51.6   carry forward all memorials which still affect the land, except 
 51.7   for the memorial of the examiner's supplemental directive issued 
 51.8   pursuant to section 508A.22, subdivision 2.  It shall be made 
 51.9   subject to all statutory exceptions and be issued in the same 
 51.10  form as provided in section 508.35, except that, in lieu of 
 51.11  reciting that the certificate of title was issued pursuant to 
 51.12  the order of the district court, the certificate of title shall 
 51.13  recite that it was issued pursuant to the provisions of this 
 51.14  section and recite the date the first certificate of title was 
 51.15  issued for the land involved.  The memorial on the CPT pursuant 
 51.16  to section 508A.351 shall not be removed without an order of the 
 51.17  district court.  
 51.18     Sec. 71.  Minnesota Statutes 1998, section 524.2-201, is 
 51.19  amended to read: 
 51.20     524.2-201 [DEFINITIONS.] 
 51.21     In this part:  
 51.22     (1) As used in sections other than section 524.2-205, 
 51.23  "decedent's nonprobate transfers to others" means the amounts 
 51.24  that are included in the augmented estate under section 
 51.25  524.2-205. 
 51.26     (2) "Interest in property held with right of survivorship" 
 51.27  means the severable interest owned by the person or persons 
 51.28  whose interest is being determined in property held in joint 
 51.29  tenancy or in other form of common ownership with a right of 
 51.30  survivorship.  The interest shall be identified and valued as of 
 51.31  the time immediately prior to the death of the decedent or the 
 51.32  date of the transfer which causes the property to be included in 
 51.33  the augmented estate, as the case may be.  In the case of an 
 51.34  account described in article 6, part 2, the severable interest 
 51.35  owned by the person is the amount which belonged to the person 
 51.36  determined under section 524.6-203.  In the case of property 
 52.1   described in article 6, part 3, the severable interest owned by 
 52.2   the person is the amount consistent with section 524.6-306.  
 52.3      (3) "Marriage," as it relates to a transfer by the decedent 
 52.4   during marriage, means any marriage of the decedent to the 
 52.5   decedent's surviving spouse.  
 52.6      (4) "Nonadverse party" means a person who does not have a 
 52.7   substantial beneficial interest in the trust or other property 
 52.8   arrangement that would be adversely affected by the exercise or 
 52.9   nonexercise of the power that the person possesses respecting 
 52.10  the trust or other property arrangement.  A person having a 
 52.11  general power of appointment over property is deemed to have a 
 52.12  beneficial interest in the property.  
 52.13     (5) "Power" or "power of appointment" includes a power to 
 52.14  designate the beneficiary of an insurance policy or other 
 52.15  contractual arrangement.  
 52.16     (6) "Presently exercisable general power of appointment" 
 52.17  means a power possessed by a person at the time in question to 
 52.18  create a present or future interest in the person, in the 
 52.19  person's creditors, in the person's estate, or in the creditor 
 52.20  of the person's estate, whether or not the person then had the 
 52.21  capacity to exercise the power.  "General power of appointment" 
 52.22  means a power, whether or not presently exercisable, possessed 
 52.23  by a person to create a present or future interest in the 
 52.24  person, in the person's creditors, in the person's estate, or in 
 52.25  creditors of the person's estate.  
 52.26     (7) "Probate estate" means property that would pass by 
 52.27  intestate succession if the decedent dies without a valid will.  
 52.28     (8) "Property" includes values subject to a beneficiary 
 52.29  designation.  
 52.30     (9) "Right to income" includes a right to payments under a 
 52.31  commercial or private annuity, an annuity trust, a unitrust, or 
 52.32  a similar arrangement.  
 52.33     (10) "Transfer" includes:  (i) the exercise, release, or 
 52.34  lapse of a general power of appointment created by the decedent 
 52.35  alone or in conjunction with any other person, or exercisable by 
 52.36  a nonadverse party; and (ii) the exercise or release by the 
 53.1   decedent of a presently exercisable general power of appointment 
 53.2   created by someone other than the decedent.  "Transfer" does not 
 53.3   include the lapse, other than a lapse at death, of a power 
 53.4   described in clause (ii).  
 53.5      (11) "Bona fide purchaser" means a purchaser for value in 
 53.6   good faith and without notice or actual knowledge of an adverse 
 53.7   claim, or a person who receives a payment or other item of 
 53.8   property in partial or full satisfaction of a legally 
 53.9   enforceable obligation in good faith without notice of an 
 53.10  adverse claim.  In the case of real property located in 
 53.11  Minnesota purchased from a successor or successors in interest 
 53.12  of a decedent, the purchaser is without notice of an adverse 
 53.13  claim arising under this part or, if the decedent was not 
 53.14  domiciled in Minnesota at the time of death, arising under 
 53.15  similar provisions of the law of the decedent's domicile, unless 
 53.16  the decedent's surviving spouse has filed a notice in the office 
 53.17  of the county recorder of the county in which the real property 
 53.18  is located or, if the property is registered land, in the office 
 53.19  of the registrar of titles of the county in which the real 
 53.20  property is located, containing the legal description of the 
 53.21  property, a brief statement of the nature and extent of the 
 53.22  interest claimed, and the venue, title, and file number of the 
 53.23  proceeding for an elective share, if any has been commenced.  
 53.24  The registrar of titles is authorized to accept for registration 
 53.25  without production of the owner's duplicate of the certificate 
 53.26  of title any such notice which relates to registered land. 
 53.27     Sec. 72.  [REPEALER.] 
 53.28     Minnesota Statutes 1998, sections 473H.02, subdivision 11; 
 53.29  473H.05, subdivision 3; 508.405; 508.421, subdivision 1; 508.44; 
 53.30  508.45; 508.51, subdivision 2; 508.835; 508A.421, subdivision 1; 
 53.31  508A.44; 508A.45; 508A.51, subdivision 2; and 508A.835, are 
 53.32  repealed. 
 53.33     Sec. 73.  [EFFECTIVE DATE.] 
 53.34     Article 1 is effective January 1, 2000. 
 53.35                             ARTICLE 2
 53.36     Section 1.  Minnesota Statutes 1998, section 515B.1-102, is 
 54.1   amended to read: 
 54.2      515B.1-102 [APPLICABILITY.] 
 54.3      (a) Except as provided in this section, this chapter, and 
 54.4   not chapters 515 and 515A, applies to all common interest 
 54.5   communities created within this state on and after June 1, 1994. 
 54.6      (b) The applicability of this chapter to common interest 
 54.7   communities created prior to June 1, 1994, shall be as follows: 
 54.8      (1) This chapter shall apply to condominiums created under 
 54.9   chapter 515A with respect to events and circumstances occurring 
 54.10  on and after June 1, 1994; provided (i) that this chapter shall 
 54.11  not invalidate the declarations, bylaws or condominium plats of 
 54.12  those condominiums, and (ii) that chapter 515A, and not this 
 54.13  chapter, shall govern all rights and obligations of a declarant 
 54.14  of a condominium created under chapter 515A, and the rights and 
 54.15  claims of unit owners against that declarant. 
 54.16     (2) The following sections shall in this chapter apply to 
 54.17  condominiums created under chapter 515:  515B.1-104 (Variation 
 54.18  by Agreement); 515B.1-105 (Separate Titles and Taxation); 
 54.19  515B.1-106 (Applicability of Local Ordinances, Regulations, and 
 54.20  Building Codes); 515B.1-107 (Eminent Domain); 515B.1-108 
 54.21  (Supplemental General Principles of Law Applicable); 515B.1-109 
 54.22  (Construction Against Implicit Repeal); 515B.1-110 (Uniformity 
 54.23  of Application and Construction); 515B.1-111 (Severability); 
 54.24  515B.1-112 (Unconscionable Agreement or Term of Contract); 
 54.25  515B.1-113 (Obligation of Good Faith); 515B.1-114 (Remedies to 
 54.26  be Liberally Administered); 515B.1-115 (Notice); 515B.1-116 
 54.27  (Recording); 515B.2-103 (Construction and Validity of 
 54.28  Declaration and Bylaws); 515B.2-104 (Description of 
 54.29  Units); 515B.2-108(d) (Allocation of Interests); 515B.2-109(c) 
 54.30  (Common Elements and Limited Common Elements); 515B.2-112 
 54.31  (Subdivision or Conversion of Units); 515B.2-113 (Alteration of 
 54.32  Units); 515B.2-114 (Relocation of Boundaries Between Adjoining 
 54.33  Units); 515B.2-115 (Minor Variations in Boundaries); 515B.2-118 
 54.34  (Amendment of Declaration); 515B.3-102 (Powers of Unit Owners' 
 54.35  Association); 515B.3-103(a), (b), and (g) (Board; Directors and 
 54.36  Officers; Period of Declarant Control); 515B.3-107 (Upkeep of 
 55.1   Common Interest Community); 515B.3-108 (Meetings); 515B.3-109 
 55.2   (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and 
 55.3   Contract Liability); 515B.3-112 (Conveyance or Encumbrance of 
 55.4   Common Elements); 515B.3-113 (Insurance); 515B.3-114 (Reserves; 
 55.5   Surplus Funds); 515B.3-115 (c), (e), (f), (g), (h), and (i) 
 55.6   (Assessments for Common Expenses); 515B.3-116 (Lien for 
 55.7   Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association 
 55.8   Records); 515B.3-119 (Association as Trustee); 515B.3-121 
 55.9   (Accounting Controls); 515B.4-107 (Resale of Units); 515B.4-108 
 55.10  (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of 
 55.11  Action; Attorney's Fees); and.  Section 515B.1-103 (Definitions) 
 55.12  shall apply to the extent necessary in construing any of those 
 55.13  the sections referenced in this section.  The foregoing Sections 
 55.14  shall 515B.1-105, 515B.1-106, 515B.1-107, 515B.1-116, 
 55.15  515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110, 
 55.16  515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 
 55.17  515B.3-121, 515B.4-107, 515B.4-108, and 515B.4-116 apply only 
 55.18  with respect to events and circumstances occurring on and after 
 55.19  June 1, 1994, and shall not.  All other sections referenced in 
 55.20  this section apply only with respect to events and circumstances 
 55.21  occurring after May 31, 1999.  A section referenced in this 
 55.22  section does not invalidate the declarations, bylaws or 
 55.23  condominium plats of those condominiums created before the 
 55.24  effective date of amendments made by this section.  But all 
 55.25  sections referenced in this section prevail over the 
 55.26  declarations, bylaws, CIC plats, rules and regulations under 
 55.27  them, of condominiums created before the effective date of 
 55.28  amendments made by this section, except to the extent that this 
 55.29  chapter defers to the declarations, bylaws, CIC plats, or rules 
 55.30  and regulations issued under them. 
 55.31     (3) This chapter shall not apply to cooperatives and 
 55.32  planned communities created prior to June 1, 1994; except by 
 55.33  election pursuant to subsection (d), and except that sections 
 55.34  515B.1-116, subsections (a), (c), (d), (e), (f), and (h), 
 55.35  515B.4-107, and 515B.4-108 apply to all planned communities and 
 55.36  cooperatives regardless of when they are created. 
 56.1      (c) This chapter shall not invalidate any amendment to the 
 56.2   declaration, bylaws or condominium plat of any condominium 
 56.3   created under chapter 515 or 515A if the amendment was recorded 
 56.4   before June 1, 1994.  Any amendment recorded on or after June 1, 
 56.5   1994, shall be adopted in conformity with the procedures and 
 56.6   requirements specified by those instruments and by this 
 56.7   chapter.  If the amendment grants to any person any rights, 
 56.8   powers or privileges permitted by this chapter, all correlative 
 56.9   obligations, liabilities and restrictions contained in this 
 56.10  chapter shall also apply to that person. 
 56.11     (d) Any condominium created under chapter 515, any planned 
 56.12  community or cooperative which would be exempt from this chapter 
 56.13  under subsection (e), or any planned community or cooperative 
 56.14  created prior to June 1, 1994, may elect to be subject to this 
 56.15  chapter, as follows: 
 56.16     (1) The election shall be accomplished by recording a 
 56.17  declaration or amended declaration, and a new or amended CIC 
 56.18  plat where required, and by approving bylaws or amended bylaws, 
 56.19  which conform to the requirements of this chapter, and which, in 
 56.20  the case of amendments, are adopted in conformity with the 
 56.21  procedures and requirements specified by the existing 
 56.22  declaration and bylaws of the common interest community, and by 
 56.23  any applicable statutes. 
 56.24     (2) In a condominium, the preexisting condominium plat 
 56.25  shall be the CIC plat and an amended CIC plat shall be required 
 56.26  only if the amended declaration or bylaws contain provisions 
 56.27  inconsistent with the preexisting condominium plat.  The 
 56.28  condominium's CIC number shall be the apartment ownership number 
 56.29  or condominium number originally assigned to it by the recording 
 56.30  officer.  In a cooperative in which the unit owners' interests 
 56.31  are characterized as real estate, a CIC plat shall be required.  
 56.32  In a planned community, the preexisting plat recorded pursuant 
 56.33  to chapter 505, 508, or 508A, or the part of the plat upon which 
 56.34  the common interest community is located, shall be the CIC plat. 
 56.35     (3) The amendment shall conform to the requirements of 
 56.36  section 515B.2-118(d). 
 57.1      (4) Except as permitted by paragraph (3), no declarant, 
 57.2   affiliate of declarant, association, master association nor unit 
 57.3   owner may acquire, increase, waive, reduce or revoke any 
 57.4   previously existing warranty rights or causes of action that one 
 57.5   of said persons has against any other of said persons by reason 
 57.6   of exercising the right of election under this subsection. 
 57.7      (5) A common interest community which elects to be subject 
 57.8   to this chapter may, as a part of the election process, change 
 57.9   its form of ownership by complying with the requirements of 
 57.10  section 515B.2-123. 
 57.11     (e) Except as otherwise provided in this subsection, this 
 57.12  chapter shall not apply, except by election pursuant to 
 57.13  subsection (d), to the following: 
 57.14     (1) a planned community or cooperative which consists of 12 
 57.15  or fewer units subject to the same declaration, which is not 
 57.16  subject to any rights to add additional real estate and which 
 57.17  will not be subject to a master association; 
 57.18     (2) a common interest community where the units consist 
 57.19  solely of separate parcels of real estate designed or utilized 
 57.20  for detached single family dwellings or agricultural purposes, 
 57.21  and where the association has no obligation to maintain any 
 57.22  building containing a dwelling or any agricultural building; 
 57.23     (3) a planned community or cooperative where, at the time 
 57.24  of creation of the planned community or cooperative, the unit 
 57.25  owners' interests in the dwellings as described in the 
 57.26  declaration consist solely of leasehold interests proprietary 
 57.27  leases having an unexpired term of fewer than 20 years, 
 57.28  including renewal options; 
 57.29     (4) a common interest community containing only a 
 57.30  combination of dwellings described in paragraphs (2) and (3); 
 57.31     (5) planned communities and cooperatives limited by the 
 57.32  declaration to nonresidential use; or 
 57.33     (6) (5) real estate subject only to an instrument or 
 57.34  instruments filed primarily for the purpose of creating or 
 57.35  modifying rights with respect to access, utilities, parking, 
 57.36  ditches, drainage, or irrigation. 
 58.1      (f) Section 515B.1-106 shall apply to all common interest 
 58.2   communities. 
 58.3      Sec. 2.  Minnesota Statutes 1998, section 515B.1-103, is 
 58.4   amended to read: 
 58.5      515B.1-103 [DEFINITIONS.] 
 58.6      In the declaration and bylaws, unless specifically provided 
 58.7   otherwise or the context otherwise requires, and in this chapter:
 58.8      (1) "Additional real estate" means real estate that may be 
 58.9   added to a flexible common interest community. 
 58.10     (2) "Affiliate of a declarant" means any person who 
 58.11  controls, is controlled by, or is under common control with a 
 58.12  declarant.  
 58.13     (A) A person "controls" a declarant if the person (i) is a 
 58.14  general partner, officer, director, or employer of the 
 58.15  declarant, (ii) directly or indirectly or acting in concert with 
 58.16  one or more other persons, or through one or more subsidiaries, 
 58.17  owns, controls, holds with power to vote, or holds proxies 
 58.18  representing, more than 20 percent of the voting interest in the 
 58.19  declarant, (iii) controls in any manner the election of a 
 58.20  majority of the directors of the declarant, or (iv) has 
 58.21  contributed more than 20 percent of the capital of the declarant.
 58.22     (B) A person "is controlled by" a declarant if the 
 58.23  declarant (i) is a general partner, officer, director, or 
 58.24  employer of the person, (ii) directly or indirectly or acting in 
 58.25  concert with one or more other persons, or through one or more 
 58.26  subsidiaries, owns, controls, holds with power to vote, or holds 
 58.27  proxies representing, more than 20 percent of the voting 
 58.28  interest in the person, (iii) controls in any manner the 
 58.29  election of a majority of the directors of the person, or (iv) 
 58.30  has contributed more than 20 percent of the capital of the 
 58.31  person.  
 58.32     (C) Control does not exist if the powers described in this 
 58.33  subsection are held solely as a security interest and have not 
 58.34  been exercised. 
 58.35     (3) "Allocated interests" means the following interests 
 58.36  allocated to each unit:  (i) in a condominium, the undivided 
 59.1   interest in the common elements, the common expense liability, 
 59.2   and votes in the association; (ii) in a cooperative, the common 
 59.3   expense liability and the ownership interest and votes in the 
 59.4   association; and (iii) in a planned community, the common 
 59.5   expense liability and votes in the association. 
 59.6      (4) "Association" means the unit owners' association 
 59.7   organized under section 515B.3-101. 
 59.8      (5) "Board" means the body, regardless of name, designated 
 59.9   in the articles of incorporation, bylaws or declaration to act 
 59.10  on behalf of the association, or on behalf of a master 
 59.11  association when so identified. 
 59.12     (6) "CIC plat" means a common interest community plat 
 59.13  described in section 515B.2-110. 
 59.14     (7) "Common elements" means all portions of the common 
 59.15  interest community other than the units. 
 59.16     (8) "Common expenses" means expenditures made or 
 59.17  liabilities incurred by or on behalf of the association, or 
 59.18  master association when so identified, together with any 
 59.19  allocations to reserves. 
 59.20     (9) "Common expense liability" means the liability for 
 59.21  common expenses allocated to each unit pursuant to section 
 59.22  515B.2-108. 
 59.23     (10) "Common interest community" or "CIC" means contiguous 
 59.24  or noncontiguous real estate within Minnesota that is subject to 
 59.25  an instrument which obligates persons owning a separately 
 59.26  described parcel of the real estate, or occupying a part of the 
 59.27  real estate pursuant to a proprietary lease, by reason of their 
 59.28  ownership or occupancy, to pay for (i) real estate taxes levied 
 59.29  against; (ii) insurance premiums payable with respect to; (iii) 
 59.30  maintenance of; or (iv) construction, maintenance, repair or 
 59.31  replacement of improvements located on one or more parcels or 
 59.32  parts of the real estate other than the parcel or part that the 
 59.33  person owns or occupies.  Real estate subject to a master 
 59.34  association, regardless of when the master association was 
 59.35  formed, shall not collectively constitute a separate common 
 59.36  interest community unless so stated in the master declaration 
 60.1   recorded against the real estate pursuant to section 515B.2-121, 
 60.2   subsection (f)(1). 
 60.3      (11) "Condominium" means a common interest community in 
 60.4   which (i) portions of the real estate are designated as units, 
 60.5   (ii) the remainder of the real estate is designated for common 
 60.6   ownership solely by the owners of the units, and (iii) undivided 
 60.7   interests in the common elements are vested in the unit owners. 
 60.8      (12) "Conversion property" means real estate on which is 
 60.9   located a building that at any time within two years before 
 60.10  creation of the common interest community was occupied as a 
 60.11  residence wholly or partially by persons other than purchasers 
 60.12  and persons who occupy with the consent of purchasers. 
 60.13     (13) "Cooperative" means a common interest community in 
 60.14  which the real estate is owned by an association, each of whose 
 60.15  members is entitled by virtue of the member's ownership interest 
 60.16  in the association to a proprietary lease. 
 60.17     (14) "Dealer" means a person in the business of selling 
 60.18  units for the person's own account. 
 60.19     (15) "Declarant" means: 
 60.20     (i) if the common interest community has been created, (A) 
 60.21  any person who has executed a declaration, or an amendment to a 
 60.22  declaration to add additional real estate, except secured 
 60.23  parties, persons whose interests in the real estate will not be 
 60.24  transferred to unit owners, or, in the case of a leasehold 
 60.25  common interest community, a lessor who possesses no special 
 60.26  declarant rights and who is not an affiliate of a declarant who 
 60.27  possesses special declarant rights, or (B) any person who 
 60.28  reserves, or succeeds under section 515B.3-104 to any special 
 60.29  declarant rights; or 
 60.30     (ii) any person or persons acting in concert who have 
 60.31  offered prior to creation of the common interest community to 
 60.32  transfer their interest in a unit to be created and not 
 60.33  previously transferred. 
 60.34     (16) "Declaration" means any instrument, however 
 60.35  denominated, including any amendment to the instrument, that 
 60.36  creates a common interest community. 
 61.1      (17) "Dispose" or "disposition" means a voluntary transfer 
 61.2   to a purchaser of any legal or equitable interest in the common 
 61.3   interest community, but the term does not include the transfer 
 61.4   or release of a security interest. 
 61.5      (18) "Flexible common interest community" means a common 
 61.6   interest community to which additional real estate may be added. 
 61.7      (19) "Leasehold common interest community" means a common 
 61.8   interest community in which all or a portion of the real estate 
 61.9   is subject to a lease the expiration or termination of which 
 61.10  will terminate the common interest community or reduce its size. 
 61.11     (20) "Limited common element" means a portion of the common 
 61.12  elements allocated by the declaration or by operation of section 
 61.13  515B.2-102(d) or (f) for the exclusive use of one or more but 
 61.14  fewer than all of the units. 
 61.15     (21) "Master association" means an entity created on or 
 61.16  after June 1, 1994, that directly or indirectly exercises any of 
 61.17  the powers set forth in section 515B.3-102 on behalf of one or 
 61.18  more members described in section 515B.2-121(b), (i), (ii) or 
 61.19  (iii), whether or not it also exercises those powers on behalf 
 61.20  of one or more property owners associations described in section 
 61.21  515B.2-121(b)(iv).  An entity A person (i) hired by an 
 61.22  association to perform maintenance, repair, accounting, 
 61.23  bookkeeping or management services, or (ii) granted authority 
 61.24  under an instrument recorded primarily for the purpose of 
 61.25  creating rights or obligations with respect to utilities, 
 61.26  access, drainage, or recreational amenities, is not, solely by 
 61.27  virtue reason of that relationship, a master association. 
 61.28     (22) "Master declaration" means a written instrument, 
 61.29  however named, (i) recorded on or after June 1, 1994, against 
 61.30  property subject to powers exercised by a master association and 
 61.31  (ii) satisfying the requirements of section 515B.2-121, 
 61.32  subsection (f)(1). 
 61.33     (22) (23) "Period of declarant control" means the time 
 61.34  period provided for in section 515B.3-103(c) during which the 
 61.35  declarant may appoint and remove officers and directors of the 
 61.36  association. 
 62.1      (23) (24) "Person" means an individual, corporation, 
 62.2   limited liability company, partnership, trustee under a trust, 
 62.3   personal representative, guardian, conservator, government, 
 62.4   governmental subdivision or agency, or other legal or commercial 
 62.5   entity capable of holding title to real estate. 
 62.6      (24) (25) "Planned community" means a common interest 
 62.7   community that is not a condominium or a cooperative.  A 
 62.8   condominium or cooperative may be a part of a planned community. 
 62.9      (25) (26) "Proprietary lease" means an agreement with a 
 62.10  cooperative association whereby a member of the association is 
 62.11  entitled to exclusive possession of a unit in the cooperative. 
 62.12     (26) (27) "Purchaser" means a person, other than a 
 62.13  declarant, who by means of a voluntary transfer acquires a legal 
 62.14  or equitable interest in a unit other than (i) a leasehold 
 62.15  interest of less than 20 years, including renewal options, or 
 62.16  (ii) a security interest. 
 62.17     (27) (28) "Real estate" means any fee simple, leasehold or 
 62.18  other estate or interest in, over, or under land, including 
 62.19  structures, fixtures, and other improvements and interests that 
 62.20  by custom, usage, or law pass with a conveyance of land though 
 62.21  not described in the contract of sale or instrument of 
 62.22  conveyance.  "Real estate" may include spaces with or without 
 62.23  upper or lower boundaries, or spaces without physical boundaries.
 62.24     (28) (29) "Residential use" means use as a dwelling, 
 62.25  whether primary, secondary or seasonal, but not transient use 
 62.26  such as hotels or motels. 
 62.27     (29) (30) "Secured party" means the person owning a 
 62.28  security interest as defined in paragraph (30). 
 62.29     (30) (31) "Security interest" means a perfected interest in 
 62.30  real estate or personal property, created by contract or 
 62.31  conveyance, which secures payment or performance of an 
 62.32  obligation.  The term includes a mortgagee's interest in a 
 62.33  mortgage, a vendor's interest in a contract for deed, a lessor's 
 62.34  interest in a lease intended as security, a holder's interest in 
 62.35  a sheriff's certificate of sale during the period of redemption, 
 62.36  an assignee's interest in an assignment of leases or rents 
 63.1   intended as security, a lender's interest in a cooperative share 
 63.2   loan, a pledgee's interest in the pledge of an ownership 
 63.3   interest, or any other interest intended as security for an 
 63.4   obligation under a written agreement. 
 63.5      (31) (32) "Special declarant rights" means rights reserved 
 63.6   in the declaration for the benefit of a declarant to: 
 63.7      (i) complete improvements indicated on the CIC plat; 
 63.8      (ii) add additional real estate to a common interest 
 63.9   community; 
 63.10     (iii) subdivide units or convert units into common 
 63.11  elements, limited common elements and/or units; 
 63.12     (iv) maintain sales offices, management offices, signs 
 63.13  advertising the common interest community, and models; 
 63.14     (v) use easements through the common elements for the 
 63.15  purpose of making improvements within the common interest 
 63.16  community or any additional real estate; 
 63.17     (vi) create a master association and provide for the 
 63.18  exercise of authority by the master association over the common 
 63.19  interest community or its unit owners; 
 63.20     (vii) merge or consolidate a common interest community with 
 63.21  another common interest community of the same form of ownership; 
 63.22  or 
 63.23     (viii) appoint or remove any officer or director of the 
 63.24  association, or the master association where applicable, during 
 63.25  any period of declarant control. 
 63.26     (32) (33) "Time share" means a right to occupy a unit or 
 63.27  any of several units during three or more separate time periods 
 63.28  over a period of at least three years, including renewal 
 63.29  options, whether or not coupled with an estate or interest in a 
 63.30  common interest community or a specified portion thereof. 
 63.31     (33) (34) "Unit" means a physical portion of a common 
 63.32  interest community the boundaries of which are described in the 
 63.33  common interest community's declaration and which is intended 
 63.34  for separate ownership or separate occupancy pursuant to a 
 63.35  proprietary lease. 
 63.36     (34) (35) "Unit identifier" means English letters or Arabic 
 64.1   numerals, or a combination thereof, which identify only one unit 
 64.2   in a common interest community and which meet the requirements 
 64.3   of section 515B.2-104. 
 64.4      (35) (36) "Unit owner" means a declarant or other person 
 64.5   who owns a unit, or a lessee of a unit in a leasehold common 
 64.6   interest community whose lease expires simultaneously with any 
 64.7   lease the expiration or termination of which will remove the 
 64.8   unit from the common interest community, but does not include a 
 64.9   secured party.  In a common interest community, the declarant is 
 64.10  the unit owner of a unit until that unit has been conveyed to 
 64.11  another person. 
 64.12     Sec. 3.  Minnesota Statutes 1998, section 515B.1-116, is 
 64.13  amended to read: 
 64.14     515B.1-116 [RECORDING.] 
 64.15     (a) A declaration, bylaws, any amendment to a declaration 
 64.16  or bylaws, and any other instrument affecting a common interest 
 64.17  community shall be entitled to be recorded.  In those counties 
 64.18  which have a tract index, the county recorder shall enter the 
 64.19  declaration in the tract index for each unit affected.  The 
 64.20  registrar of titles shall file the declaration on the 
 64.21  certificate of title for each unit affected. 
 64.22     (b) The recording officer shall upon request promptly 
 64.23  assign a number (CIC number) to a common interest community to 
 64.24  be formed or to a common interest community resulting from the 
 64.25  merger of two or more common interest communities. 
 64.26     (c) Documents recorded pursuant to this chapter shall in 
 64.27  the case of registered land be filed, and references to the 
 64.28  recording of documents shall mean filed in the case of 
 64.29  registered land. 
 64.30     (d) Subject to any specific requirements of this chapter, 
 64.31  if any document to be recorded pursuant to this chapter requires 
 64.32  approval by a certain vote or agreement of the a recorded 
 64.33  document relating to a common interest community purports to 
 64.34  require the execution of any restatement or amendment of the 
 64.35  document by a certain percentage of unit owners or secured 
 64.36  parties, and if the amendment or restatement is to be recorded 
 65.1   pursuant to this chapter, an affidavit of the president or 
 65.2   secretary of the association stating that the required vote or 
 65.3   agreement has occurred shall be attached to the document to be 
 65.4   recorded and shall constitute prima facie evidence of the 
 65.5   representations contained therein. 
 65.6      (e) If a common interest community is located on registered 
 65.7   land, the recording fee for any document affecting two or more 
 65.8   units shall be the then-current fee for registering the document 
 65.9   on the certificates of title for the first ten affected 
 65.10  certificates and one-third of the then-current fee for each 
 65.11  additional affected certificate.  This provision shall not apply 
 65.12  to recording fees for deeds of conveyance, with the exception of 
 65.13  deeds given pursuant to sections 515B.2-119 and 515B.3-112. 
 65.14     (f) Except as permitted under this subsection, a recording 
 65.15  officer shall not file or record a declaration creating a new 
 65.16  common interest community, unless the county treasurer has 
 65.17  certified that the property taxes payable in the current year 
 65.18  for the real estate included in the proposed common interest 
 65.19  community have been paid.  This certification is in addition to 
 65.20  the certification for delinquent taxes required by section 
 65.21  272.12.  In the case of preexisting common interest communities, 
 65.22  the recording officer shall accept, file, and record the 
 65.23  following instruments, without requiring a certification as to 
 65.24  the current or delinquent taxes on any of the units in the 
 65.25  common interest community:  (i) a declaration subjecting the 
 65.26  common interest community to this chapter; (ii) a declaration 
 65.27  changing the form of a common interest community pursuant to 
 65.28  section 515B.2-123; or (iii) an amendment to or restatement of 
 65.29  the declaration, bylaws, or CIC plat.  In order for the 
 65.30  instruments to be accepted and recorded under the preceding 
 65.31  sentence, the assessor must certify or otherwise inform the 
 65.32  recording officer that, for taxes payable in the current year, 
 65.33  the assessor has allocated taxable values to each unit or has 
 65.34  separately assessed each unit. 
 65.35     (g) The registrar of titles shall not require the filing on 
 65.36  certificates of title previously issued for units in a flexible 
 66.1   common interest community of an amendment to a declaration 
 66.2   pursuant to section 515B.2-111 made solely to add additional 
 66.3   real estate. 
 66.4      (h) In the case of an amendment to a declaration or a 
 66.5   transfer of special declarant rights with respect to a common 
 66.6   interest community located on registered land, the registrar of 
 66.7   titles shall not require the surrender of the owner's duplicate 
 66.8   certificates of title to record the document, except for any 
 66.9   owner's duplicate certificates of title relating to additional 
 66.10  real estate being added by an amendment under section 515B.2-111.
 66.11     Sec. 4.  Minnesota Statutes 1998, section 515B.2-101, is 
 66.12  amended to read: 
 66.13     515B.2-101 [CREATION OF COMMON INTEREST COMMUNITIES.] 
 66.14     (a) On and after June 1, 1994, a common interest community 
 66.15  may be created only as follows: 
 66.16     (1) A condominium may be created only by recording a 
 66.17  declaration. 
 66.18     (2) A cooperative may be created only by recording a 
 66.19  declaration and by recording a conveyance of the real estate 
 66.20  subject to that declaration to the association. 
 66.21     (3) A planned community which includes common elements may 
 66.22  be created only by simultaneously recording a declaration and by 
 66.23  recording a conveyance of the common elements subject to that 
 66.24  declaration to the association. 
 66.25     (4) A planned community without common elements may be 
 66.26  created only by recording a declaration. 
 66.27     (b) Except as otherwise expressly provided in this chapter, 
 66.28  the declaration shall be executed by all persons whose interests 
 66.29  in the real estate will be conveyed to unit owners, except 
 66.30  vendors under contracts for deed, and by every lessor of a lease 
 66.31  the expiration or termination of which will terminate the common 
 66.32  interest community.  The declaration shall be recorded in every 
 66.33  county in which any portion of the common interest community is 
 66.34  located.  Failure of any party not required to execute a 
 66.35  declaration, but having a recorded interest in the common 
 66.36  interest community, to join in the declaration shall have no 
 67.1   effect on the validity of the common interest community; 
 67.2   provided that the party is not bound by the declaration until 
 67.3   that party acknowledges the existence of the common interest 
 67.4   community in a recorded instrument. 
 67.5      (c) In a condominium or real estate cooperative where the 
 67.6   unit boundaries are delineated by a physical structure, a 
 67.7   declaration, or an amendment to a declaration adding units, may 
 67.8   shall not be recorded unless all structural components and 
 67.9   mechanical systems of all buildings containing or comprising any 
 67.10  units serving more than one unit in all buildings containing the 
 67.11  units thereby created, but not necessarily the units, are 
 67.12  substantially completed, as evidenced by a recorded certificate 
 67.13  executed by a registered engineer or architect. 
 67.14     (d) A project which (i) meets the definition of a "common 
 67.15  interest community" in section 515B.1-103(10), (ii) is created 
 67.16  after May 31, 1994, and (iii) is not exempt under section 
 67.17  515B.1-102(e), is subject to this chapter even if this or other 
 67.18  sections of the chapter have not been complied with, and the 
 67.19  declarant and all unit owners are bound by all requirements and 
 67.20  obligations of this chapter. 
 67.21     Sec. 5.  Minnesota Statutes 1998, section 515B.2-104, is 
 67.22  amended to read: 
 67.23     515B.2-104 [DESCRIPTION OF UNITS.] 
 67.24     (a) A description of a unit is legally sufficient if it 
 67.25  sets forth (i) the unit identifier of the unit, (ii) the number 
 67.26  assigned to the common interest community by the recording 
 67.27  officer, and (iii) the county in which the unit is located. 
 67.28     (b) If the CIC plat for a planned community complies with 
 67.29  chapter 505, 508, or 508A, then a description of a unit in the 
 67.30  planned community is legally sufficient if it is stated in terms 
 67.31  of a plat or registered land survey.  Any instrument conveying 
 67.32  or asserting an interest in a unit shall reference the county 
 67.33  and the common interest community number immediately following 
 67.34  the name of the plat or registered land survey.  In planned 
 67.35  communities whose CIC plats comply with section 515B.2-110(c), 
 67.36  and in all condominiums and cooperatives created under this 
 68.1   chapter, a unit identifier shall contain no more than six 
 68.2   characters, only one of which may be a letter. 
 68.3      (c) A description which conforms to the requirements of 
 68.4   this section shall be deemed to include all rights, obligations, 
 68.5   and interests appurtenant to the unit which were created by the 
 68.6   declaration or bylaws, or by this chapter, whether or not those 
 68.7   rights, obligations, or interests are expressly described. 
 68.8      (d) If the CIC plat for a planned community complies with 
 68.9   section 515B.2-110(c) a description of the common elements is 
 68.10  legally sufficient if it sets forth (i) the words "common 
 68.11  elements," (ii) the number assigned to the common interest 
 68.12  community by the recording officer, and (iii) the county in 
 68.13  which the common elements are located.  The common elements may 
 68.14  consist of separate parcels of real estate, in which case each 
 68.15  parcel shall be separately identified on the CIC plat and in any 
 68.16  recorded instrument referencing a separate parcel of the common 
 68.17  elements. 
 68.18     Sec. 6.  Minnesota Statutes 1998, section 515B.2-105, is 
 68.19  amended to read: 
 68.20     515B.2-105 [DECLARATION CONTENTS; ALL COMMON INTEREST 
 68.21  COMMUNITIES.] 
 68.22     (a) The declaration shall contain: 
 68.23     (1) the number of the common interest community, whether 
 68.24  the common interest community is a condominium, planned 
 68.25  community or cooperative, and the name of the common interest 
 68.26  community, which shall appear at the top of the first page of 
 68.27  the declaration in the following format: 
 68.28                 Common Interest Community No. ....
 68.29                (Type of Common Interest Community)
 68.30     
 68.31                (Name of Common Interest Community)
 68.33                           (DECLARATION)
 68.34     (2) a statement as to whether the common interest community 
 68.35  is or is not subject to a master association; 
 68.36     (3) the name of the association, a statement that the 
 69.1   association has been incorporated and a reference to the statute 
 69.2   under which it was incorporated; 
 69.3      (4) a legally sufficient description of the real estate 
 69.4   included in the common interest community, including the name of 
 69.5   the county a statement identifying any appurtenant easement 
 69.6   necessary for access to a public street or highway, and a 
 69.7   general reference to any other appurtenant easements; 
 69.8      (5) a description of the boundaries of each unit created by 
 69.9   the declaration and the unit's unit identifier; 
 69.10     (6) in a planned community containing common elements, a 
 69.11  legally sufficient description of the common elements; 
 69.12     (7) in a cooperative, a statement as to whether the unit 
 69.13  owners' interests in all units and their allocated interests are 
 69.14  real estate or personal property; 
 69.15     (8) an allocation to each unit of the allocated interests 
 69.16  in the manner described in section 515B.2-108; 
 69.17     (9) a statement of (i) the total number of units and (ii) 
 69.18  which units will be restricted to residential use and which 
 69.19  units will be restricted to nonresidential use; 
 69.20     (10) a statement of the maximum number of units which may 
 69.21  be created by the subdivision or conversion of units owned by 
 69.22  the declarant pursuant to section 515B.2-112; 
 69.23     (11) any material restrictions on use, occupancy, or 
 69.24  alienation of the units, or on the sale price of a unit or on 
 69.25  the amount that may be received by an owner on sale, 
 69.26  condemnation or casualty loss to the unit or to the common 
 69.27  interest community, or on termination of the common interest 
 69.28  community; provided, that these requirements shall not affect 
 69.29  the power of the association to adopt, amend or revoke rules and 
 69.30  regulations pursuant to section 515B.3-102; 
 69.31     (12) a statement as to whether time shares are permitted; 
 69.32  and 
 69.33     (13) all matters required by sections 515B.1-103(31), 
 69.34  Special Declarant Rights; 515B.2-107, Leaseholds; 515B.2-109, 
 69.35  Common Elements and Limited Common Elements; 515B.2-110, Common 
 69.36  Interest Community Plat; 515B.3-115, Assessments for Common 
 70.1   Expenses; and 515B.2-121, Master Associations.  
 70.2      (b) The declaration may contain any other matters the 
 70.3   declarant considers appropriate. 
 70.4      Sec. 7.  Minnesota Statutes 1998, section 515B.2-108, is 
 70.5   amended to read: 
 70.6      515B.2-108 [ALLOCATION OF INTERESTS.] 
 70.7      (a) The declaration shall allocate to each unit: 
 70.8      (1) in a condominium, a fraction or percentage of undivided 
 70.9   interests in the common elements and in the common expenses of 
 70.10  the association and a portion of the votes in the association; 
 70.11     (2) in a cooperative, an ownership interest in the 
 70.12  association, a fraction or percentage of the common expenses of 
 70.13  the association and a portion of the votes in the association; 
 70.14  and 
 70.15     (3) in a planned community, a fraction or percentage of the 
 70.16  common expenses of the association and a portion of the votes in 
 70.17  the association. 
 70.18     (b) The declaration shall state the formulas used to 
 70.19  establish allocations of interests.  If the fractions or 
 70.20  percentages are all equal the declaration may so state in lieu 
 70.21  of stating the fractions or percentages.  If equality is 
 70.22  designated by the declaration as the formula for the allocation 
 70.23  of votes, votes do not attach to units that are auxiliary to 
 70.24  other units, such as garage units or storage units.  The 
 70.25  allocations may shall not discriminate in favor of units owned 
 70.26  by the declarant or an affiliate of the declarant, except as 
 70.27  provided in section sections 515B.2-121 and 515B.3-115. 
 70.28     (c) If units may be added to the common interest community, 
 70.29  the declaration shall state the formulas to be used to 
 70.30  reallocate the allocated interests among all units included in 
 70.31  the common interest community after the addition. 
 70.32     (d) The declaration may authorize special allocations which 
 70.33  provide:  (i) that different allocations of votes and/or common 
 70.34  expenses shall be made of unit owner votes among certain units 
 70.35  or classes of units on particular matters specified in the 
 70.36  declaration, or (ii) for class voting on specified issues 
 71.1   affecting the class, with respect to allocations within the 
 71.2   class or common expenses pertaining only to the class, or to 
 71.3   otherwise protect valid interests of the class of common 
 71.4   expenses among certain units or classes of units on particular 
 71.5   matters specified in the declaration.  Special allocations shall 
 71.6   may only be used to address operational, physical or 
 71.7   administrative differences within the common interest 
 71.8   community.  A declarant may not utilize special allocations for 
 71.9   the purpose of evading any limitation or obligation imposed on 
 71.10  declarants by this chapter nor may units constitute a class 
 71.11  because they are owned by a declarant. 
 71.12     (e) The sum of each category of allocated interests 
 71.13  allocated at any time to all the units must equal one if stated 
 71.14  as a fraction or 100 percent if stated as a percentage.  In the 
 71.15  event of a discrepancy between an allocated interest and the 
 71.16  result derived from application of the pertinent formula, the 
 71.17  allocated interest prevails. 
 71.18     (f) In a condominium or planned community, the common 
 71.19  elements are not subject to partition, and any purported 
 71.20  conveyance, encumbrance, judicial sale, or other voluntary or 
 71.21  involuntary transfer of an undivided interest in the common 
 71.22  elements made without the unit to which that interest is 
 71.23  allocated is void.  The granting of easements, licenses or 
 71.24  leases pursuant to section 515B.3-102 shall not constitute a 
 71.25  partition. 
 71.26     (g) In a cooperative, any purported conveyance, 
 71.27  encumbrance, judicial sale, or other voluntary or involuntary 
 71.28  transfer of an ownership interest in the association made 
 71.29  without the possessory interest in the unit to which that 
 71.30  interest is related is void. 
 71.31     Sec. 8.  Minnesota Statutes 1998, section 515B.2-109, is 
 71.32  amended to read: 
 71.33     515B.2-109 [COMMON ELEMENTS AND LIMITED COMMON ELEMENTS.] 
 71.34     (a) Except as limited by the declaration or this chapter, 
 71.35  common elements other than limited common elements may be used 
 71.36  in common by all unit owners.  Limited common elements are 
 72.1   designated for the exclusive use of the unit owners of the unit 
 72.2   or units to which the limited common elements are allocated, 
 72.3   subject to subsection (b) and the rights of the association as 
 72.4   set forth in the declaration, the bylaws or this chapter. 
 72.5      (b) Except for the limited common elements described in 
 72.6   section 515B.2-102, subsections (d) and (f), the declaration 
 72.7   shall specify to which unit or units each limited common element 
 72.8   is allocated. 
 72.9      (c) An allocation of limited common elements may be changed 
 72.10  by an amendment to the declaration executed by the unit owners 
 72.11  between or among whose units the reallocation is made and the 
 72.12  association.  The amendment shall be approved by the board of 
 72.13  directors of the association as to form, and compliance with the 
 72.14  declaration and this chapter.  The association shall establish 
 72.15  fair and reasonable procedures and time frames for the 
 72.16  submission and processing of the reallocations, and shall 
 72.17  maintain records thereof.  If approved, the association shall 
 72.18  cause the amendment to be recorded promptly.  The amendment 
 72.19  shall be effective when recorded.  The association may require 
 72.20  the unit owners requesting the reallocation to pay all fees and 
 72.21  costs for reviewing, preparing and recording the amendment and 
 72.22  any amended CIC plat. 
 72.23     Sec. 9.  Minnesota Statutes 1998, section 515B.2-110, is 
 72.24  amended to read: 
 72.25     515B.2-110 [COMMON INTEREST COMMUNITY PLAT (CIC PLAT).] 
 72.26     (a) The A CIC plat is required for condominiums and planned 
 72.27  communities, and cooperatives in which the unit owners' 
 72.28  interests are characterized as real estate.  The CIC plat is a 
 72.29  part of the declaration in condominiums, and in cooperatives in 
 72.30  which the unit owners' interests are characterized as real 
 72.31  estate, but need not be physically attached to the declaration. 
 72.32     (1) In a condominium, or a cooperative in which the unit 
 72.33  owners' interests are characterized as real estate, the CIC plat 
 72.34  shall comply with subsection (c). 
 72.35     The CIC plat for (2) In a planned community, a CIC plat 
 72.36  which does not comply with subsection (c) may shall consist of 
 73.1   all or part of the a subdivision plat satisfying the 
 73.2   requirements of chapter 505, 508, or 508A, and or plats 
 73.3   complying with subsections (d)(1) and (d)(2).  The CIC plat need 
 73.4   not contain the number of the common interest community need not 
 73.5   appear on the CIC plat.  The CIC plat is a part of the 
 73.6   declaration in condominiums, and in cooperatives in which the 
 73.7   unit owners' interests are characterized as real estate, but 
 73.8   need not be physically attached to the declaration., and may be 
 73.9   recorded at any time at or before the time of recording of the 
 73.10  declaration.  If the CIC plat for the planned community complies 
 73.11  with subsection (c), the number of the common interest community 
 73.12  shall be included and the CIC plat shall be recorded at the time 
 73.13  of recording of the declaration.  
 73.14     (3) In cooperatives a cooperative in which the unit owners' 
 73.15  interests are characterized as personal property, a CIC plat 
 73.16  shall not be required.  In lieu of a CIC plat, the declaration 
 73.17  or any amendment to it creating, converting, or subdividing 
 73.18  units in a personal property cooperative shall include an 
 73.19  exhibit containing a scale drawing of each building, identifying 
 73.20  the building, and showing the perimeter walls of each unit 
 73.21  created or changed by the declaration or any amendment to it, 
 73.22  including the unit's unit identifier, and its location within 
 73.23  the building if the building contains more than one unit. 
 73.24     (b) The CIC plat for condominiums, for planned communities 
 73.25  using a plat complying with subsection (c), and for cooperatives 
 73.26  in which the unit owners' interests are characterized as real 
 73.27  estate, shall contain certifications by a registered 
 73.28  professional land surveyor and registered professional 
 73.29  architect, as to the parts of the CIC plat prepared by each, 
 73.30  that (i) the CIC plat accurately depicts all information 
 73.31  required by this section, and (ii) the work was undertaken by, 
 73.32  or reviewed and approved by, the certifying land surveyor or 
 73.33  architect.  The portions of the CIC plat depicting the 
 73.34  dimensions of the portions of the common interest community 
 73.35  described in subsections (c)(8), (9), (10), and (12), may be 
 73.36  prepared by either a land surveyor or an architect.  The other 
 74.1   portions of the CIC plat shall be prepared only by a land 
 74.2   surveyor.  A certification of the CIC plat or an amendment to it 
 74.3   under this subsection by an architect is not required if all 
 74.4   parts of the CIC plat or amendment are prepared by a land 
 74.5   surveyor.  Certification by the land surveyor or architect does 
 74.6   not constitute a guaranty or warranty of the nature, 
 74.7   suitability, or quality of construction of any improvements 
 74.8   located or to be located in the common interest community. 
 74.9      (c) A CIC plat for a condominium or cooperative shall show: 
 74.10     (1) the number of the common interest community, and the 
 74.11  boundaries, dimensions and a legally sufficient description of 
 74.12  the land included therein; 
 74.13     (2) the dimensions and location of all existing, material 
 74.14  structural improvements and roadways; 
 74.15     (3) the intended location and dimensions of any 
 74.16  contemplated common element improvements to be constructed 
 74.17  within the common interest community after the filing of the CIC 
 74.18  plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT"; 
 74.19     (4) the location and dimensions of any additional real 
 74.20  estate, labeled as such, and a legally sufficient description of 
 74.21  the additional real estate; 
 74.22     (5) the extent of any encroachments by or upon any portion 
 74.23  of the common interest community; 
 74.24     (6) the location and dimensions of all recorded easements 
 74.25  within the common interest community serving or burdening any 
 74.26  portion of the common interest community; 
 74.27     (7) the distance and direction between noncontiguous 
 74.28  parcels of real estate; 
 74.29     (8) the location and dimensions of limited common elements, 
 74.30  for example, storage lockers, porches, balconies, decks and 
 74.31  patios, other than except that with respect to limited common 
 74.32  elements described in section 515B.2-102, subsections (d) and 
 74.33  (f), only such material limited common elements as porches, 
 74.34  balconies, decks, patios, and garages shall be shown; 
 74.35     (9) the location and dimensions of the front, rear, and 
 74.36  side boundaries of each unit and that unit's unit identifier; 
 75.1      (10) the location and dimensions of the upper and lower 
 75.2   boundaries of each unit with reference to an established or 
 75.3   assumed datum and that unit's unit identifier; 
 75.4      (11) a legally sufficient description of any real estate in 
 75.5   which the unit owners will own only an estate for years, labeled 
 75.6   as "leasehold real estate"; 
 75.7      (12) any units which may be converted by the declarant to 
 75.8   create additional units or common elements identified separately.
 75.9      (d) A CIC plat for a planned community either shall comply 
 75.10  with subsection (c) or it shall: 
 75.11     (1) satisfy the requirements of chapter 505, 508, or 508A, 
 75.12  as applicable; and 
 75.13     (2) satisfy the platting requirements of any governmental 
 75.14  authority within whose jurisdiction the planned community is 
 75.15  located, subject to the limitations set forth in section 
 75.16  515B.1-106. 
 75.17     (e) If a declarant adds additional real estate, the 
 75.18  declarant shall record a supplemental CIC plat or plats for the 
 75.19  real estate being added, conforming to the requirements of this 
 75.20  section which apply to the type of common interest community in 
 75.21  question.  If less than all additional real estate is being 
 75.22  added, the supplemental CIC plat for a condominium, a planned 
 75.23  community whose CIC plat complies with subsection (c), or a 
 75.24  cooperative in which the unit owners' interests are 
 75.25  characterized as real estate, shall also show the location and 
 75.26  dimensions of the remaining portion. 
 75.27     (f) If a declarant subdivides or converts any unit into two 
 75.28  or more units, common elements or limited common elements, the 
 75.29  declarant shall record an amendment to the CIC plat showing the 
 75.30  location and dimensions of any new units, common elements and 
 75.31  limited common elements thus created. 
 75.32     Sec. 10.  Minnesota Statutes 1998, section 515B.2-113, is 
 75.33  amended to read: 
 75.34     515B.2-113 [ALTERATIONS OF UNITS.] 
 75.35     Subject to the provisions of the declaration and applicable 
 75.36  law: 
 76.1      (a) Subject to the provisions of the declaration and 
 76.2   applicable law, a unit owner may, at the unit owner's expense, 
 76.3   make any improvements or alterations to the unit, provided:  (i) 
 76.4   that they do not impair the structural integrity or mechanical 
 76.5   systems, affect the common elements, or impair the support of 
 76.6   any portion of the common interest community provided, (i); (ii) 
 76.7   that prior arrangements are made with the association to ensure 
 76.8   that other unit owners are not disturbed, (ii); (iii) that the 
 76.9   common elements are not damaged,; and (iii) (iv) that the common 
 76.10  elements and other units are protected against mechanics' liens. 
 76.11     (b) Subject to the provisions of applicable law, a unit 
 76.12  owner of a unit in residential use may, at the unit owner's 
 76.13  expense, make improvements or alterations to the unit as 
 76.14  necessary for the full enjoyment of the unit by any person 
 76.15  residing in the unit who has a handicap or disability, as 
 76.16  provided in the Fair Housing Amendments Act, United States Code, 
 76.17  title 42, section 3601, et seq., and the Minnesota Human Rights 
 76.18  Act, chapter 363, and any amendments to those acts. 
 76.19     (c) The declaration, bylaws, rules, and regulations, or 
 76.20  agreements with the association may not prohibit the 
 76.21  improvements or alterations referred to in subsection (b), but 
 76.22  may reasonably regulate the type, style, and quality of the 
 76.23  improvements or alterations, as they relate to health, safety, 
 76.24  and architectural standards.  In addition, improvements or 
 76.25  alterations made pursuant to subsection (b) must satisfy the 
 76.26  requirements of subsection (a)(i), (ii), (iii), and (iv). 
 76.27     (d) Notwithstanding any contrary provision of section 
 76.28  515B.1-102, subsection (b) applies to all common interest 
 76.29  communities subject to chapter 515, 515A, or this chapter.  The 
 76.30  unit owner's rights under this section may not be waived. 
 76.31     (e) Subsection (b) does not apply to restrictions on 
 76.32  improvements or alterations imposed by statute, rule, or 
 76.33  ordinance. 
 76.34     (f) Subject to the provisions of the declaration and 
 76.35  applicable law, a unit owner may, at the unit owner's expense, 
 76.36  after acquiring title to an adjoining unit or an adjoining part 
 77.1   of an adjoining unit, with the prior written approval of the 
 77.2   association and first mortgagees of the affected units, remove 
 77.3   or alter any intervening partition or create apertures therein, 
 77.4   even if the partition is part of the common elements, if those 
 77.5   acts do not impair the structural integrity or mechanical 
 77.6   systems or lessen the support of any portion of the common 
 77.7   interest community.  The adjoining unit owners shall have the 
 77.8   exclusive license to use the space occupied by the removed 
 77.9   partition, but the use shall not create an easement or vested 
 77.10  right.  Removal of partitions or creation of apertures under 
 77.11  this paragraph is not an alteration of boundaries.  The 
 77.12  association may require that the owner or owners of units 
 77.13  affected replace or restore any removed partition, that the unit 
 77.14  owner comply with subsection (a)(i), (ii) and (iii), and that 
 77.15  the unit owner pay all fees and costs incurred by the 
 77.16  association in connection with the alteration. 
 77.17     Sec. 11.  Minnesota Statutes 1998, section 515B.2-118, is 
 77.18  amended to read: 
 77.19     515B.2-118 [AMENDMENT OF DECLARATION.] 
 77.20     (a) Except in cases of amendments that may be executed by a 
 77.21  declarant under section 515B.2-111 or 515B.2-112, or by the 
 77.22  association and/or certain unit owners under section 515B.2-107, 
 77.23  515B.2-109, 515B.2-112, 515B.2-113, 515B.2-114, or 515B.2-119, 
 77.24  and except as limited by subsection (d), the declaration, 
 77.25  including any CIC plat, may be amended only by vote or written 
 77.26  agreement of unit owners of units to which at least 67 percent 
 77.27  of the votes in the association are allocated, or any greater or 
 77.28  other requirement the declaration specifies.  The declaration 
 77.29  may specify a smaller percentage only if all of the units are 
 77.30  restricted to nonresidential use. The declaration, including any 
 77.31  CIC plat, may be amended only by vote or written agreement of 
 77.32  unit owners of units to which at least 67 percent of the votes 
 77.33  in the association are allocated, or any greater or other 
 77.34  requirement the declaration specifies, subject to the following 
 77.35  qualifications: 
 77.36     (1) A declarant may execute amendments under section 
 78.1   515B.2-111 or 515B.2-112. 
 78.2      (2) The association and certain unit owners, as applicable, 
 78.3   may execute amendments under section 515B.2-107, 515B.2-109, 
 78.4   515B.2-112, 515B.2-113, 515B.2-114, 515B.2-119, 515B.2-122, 
 78.5   515B.2-123, or 515B.2-124. 
 78.6      (3) The unanimous written consent of the unit owners is 
 78.7   required for any amendment which (i) creates or increases 
 78.8   special declarant rights, (ii) increases the number of units, 
 78.9   (iii) changes the boundaries of any unit, (iv) changes the 
 78.10  allocated interests of a unit, (v) changes common elements to 
 78.11  limited common elements, (vi) changes the authorized use of a 
 78.12  unit from residential to nonresidential, or conversely, or (vii) 
 78.13  changes the characterization of the unit owner's interest in a 
 78.14  cooperative from real estate to personal property, or 
 78.15  conversely; unless the amendment is expressly permitted or 
 78.16  required by other provisions of this chapter. 
 78.17     (4) The declaration may specify less than 67 percent for 
 78.18  approval of an amendment, but only if all of the units are 
 78.19  restricted to nonresidential use. 
 78.20     (b) No action to challenge the validity of an amendment 
 78.21  adopted by the association pursuant to this section may be 
 78.22  brought more than two years after the amendment is recorded. 
 78.23     (c) Every amendment to the declaration shall be recorded in 
 78.24  every county in which any portion of the common interest 
 78.25  community is located and is effective only when recorded.  If an 
 78.26  amendment (i) changes the number of units, (ii) changes the 
 78.27  boundary of a unit, (iii) changes common elements to limited 
 78.28  common elements, or conversely, or (iv) makes any other change 
 78.29  that affects the CIC plat, then an amendment to the CIC plat 
 78.30  reflecting the change shall be recorded. 
 78.31     (d) Except as expressly permitted or required by other 
 78.32  provisions of this chapter, no amendment may (i) create or 
 78.33  increase special declarant rights, (ii) increase the number of 
 78.34  units, (iii) change the boundaries of any unit, (iv) change the 
 78.35  allocated interests of a unit, (v) change common elements to 
 78.36  limited common elements, (vi) change the authorized use of a 
 79.1   unit from residential to nonresidential, or conversely, or (vii) 
 79.2   change the characterization of the unit owners' interests in a 
 79.3   cooperative from real estate to personal property, or 
 79.4   conversely, in the absence of unanimous written consent of the 
 79.5   unit owners. 
 79.6      Sec. 12.  Minnesota Statutes 1998, section 515B.2-119, is 
 79.7   amended to read: 
 79.8      515B.2-119 [TERMINATION OF COMMON INTEREST COMMUNITY.] 
 79.9      (a) Except as otherwise provided in this chapter, a common 
 79.10  interest community may be terminated only by agreement of unit 
 79.11  owners of units to which at least 80 percent of the votes in the 
 79.12  association are allocated, and 80 percent of the first 
 79.13  mortgagees of units (each mortgagee having one vote per unit 
 79.14  financed), or any larger percentage the declaration specifies.  
 79.15  The declaration may specify a smaller percentage only if all of 
 79.16  the units are restricted to nonresidential use. 
 79.17     (b) An agreement to terminate shall be evidenced by a 
 79.18  written agreement, executed in the same manner as a deed by the 
 79.19  number of unit owners and first mortgagees of units required by 
 79.20  subsection (a).  The agreement shall specify a date after which 
 79.21  the agreement shall be void unless recorded before that date.  
 79.22  The agreement shall also specify a date by which the termination 
 79.23  of the common interest community and the winding up of its 
 79.24  affairs must be accomplished.  A certificate of termination 
 79.25  executed by the association evidencing the termination shall be 
 79.26  recorded on or before the termination date, or the agreement to 
 79.27  terminate shall be revoked.  The agreement to terminate, or a 
 79.28  memorandum thereof, and the certificate of termination shall be 
 79.29  recorded in every county in which a portion of the common 
 79.30  interest community is situated and is effective only upon 
 79.31  recording. 
 79.32     (c) In the case of a condominium or planned community 
 79.33  containing only units having upper and lower boundaries, a 
 79.34  termination agreement may provide that all of the common 
 79.35  elements and units of the common interest community must be sold 
 79.36  following termination.  If, pursuant to the agreement, any real 
 80.1   estate in the common interest community is to be sold following 
 80.2   termination, the termination agreement shall set forth the 
 80.3   minimum terms of sale acceptable to the association. 
 80.4      (d) In the case of a condominium or planned community 
 80.5   containing any units not having upper and lower boundaries, a 
 80.6   termination agreement may provide for sale of the common 
 80.7   elements, but it may not require that the units be sold 
 80.8   following termination, unless the original declaration provided 
 80.9   otherwise or all unit owners whose units are to be sold consent 
 80.10  to the sale. 
 80.11     (e) The association, on behalf of the unit owners, shall 
 80.12  have authority to contract for the sale of real estate in a 
 80.13  common interest community pursuant to this section, subject to 
 80.14  the required approval.  The agreement to terminate shall be 
 80.15  deemed to grant to the association a power of attorney coupled 
 80.16  with an interest to effect the conveyance of the real estate on 
 80.17  behalf of the holders of all interests in the units, including 
 80.18  without limitation the power to execute all instruments of 
 80.19  conveyance and related instruments.  Until the sale has been 
 80.20  completed, all instruments in connection with the sale have been 
 80.21  executed and the sale proceeds distributed, the association 
 80.22  shall continue in existence with all powers it had before 
 80.23  termination. 
 80.24     (1) The instrument conveying or creating the interest in 
 80.25  the common interest community shall include as exhibits (i) an 
 80.26  affidavit of the secretary of the association certifying that 
 80.27  the approval required by this section has been obtained and (ii) 
 80.28  a schedule of the names of all unit owners in the common 
 80.29  interest community as of the date of the approval. 
 80.30     (2) Proceeds of the sale shall be distributed to unit 
 80.31  owners and secured parties as their interests may appear, in 
 80.32  accordance with subsections (h), (i), (j), and (k). 
 80.33     (3) Unless otherwise specified in the agreement of 
 80.34  termination, until the association has conveyed title to the 
 80.35  real estate, each unit owner and the unit owner's successors in 
 80.36  interest have an exclusive right to occupancy of the portion of 
 81.1   the real estate that formerly constituted the unit.  During the 
 81.2   period of that occupancy, each unit owner and the unit owner's 
 81.3   successors in interest remain liable for all assessments and 
 81.4   other obligations imposed on unit owners by this chapter, the 
 81.5   declaration or the bylaws. 
 81.6      (f) The legal description of the real estate constituting 
 81.7   the common interest community shall, upon the date of recording 
 81.8   of the certificate of termination referred to in subsection (b), 
 81.9   be as follows: 
 81.10     (1) In a planned community, the lot and block description 
 81.11  contained in the CIC plat, and any amendments thereto, subject 
 81.12  to any subsequent conveyance or taking of a fee interest in any 
 81.13  part of the property. 
 81.14     (2) In a condominium or cooperative, the underlying legal 
 81.15  description of the real estate as set forth in the declaration 
 81.16  creating the common interest community, and any amendments 
 81.17  thereto, subject to any subsequent conveyance or taking of a fee 
 81.18  interest in any part of the property. 
 81.19     (3) The legal description referred to in this subsection 
 81.20  shall apply upon the recording of the certificate of 
 81.21  termination.  The recording officer for each county in which the 
 81.22  common interest community is located shall index the property 
 81.23  located in that county in its records under the legal 
 81.24  description required by this subsection from and after the date 
 81.25  of recording of the certificate of termination.  In the case of 
 81.26  registered property, the registrar of titles shall cancel the 
 81.27  existing certificates of title with respect to the property and 
 81.28  issue one or more certificates of title for the property 
 81.29  utilizing the legal description required by this subsection. 
 81.30     (g) In a condominium or planned community, if the agreement 
 81.31  to terminate provides that the real estate constituting the 
 81.32  common interest community is not to be sold following 
 81.33  termination, title to the common elements and, in a common 
 81.34  interest community containing only units having upper and lower 
 81.35  boundaries described in the declaration, title to all the real 
 81.36  estate in the common interest community, vests in the unit 
 82.1   owners upon termination as tenants in common in proportion to 
 82.2   their respective interest as provided in subsection (k), and 
 82.3   liens on the units shift accordingly.  While the tenancy in 
 82.4   common exists, each unit owner and the unit owner's successors 
 82.5   in interest have an exclusive right to occupancy of the portion 
 82.6   of the real estate that formerly constituted the unit. 
 82.7      (h) The proceeds of any sale of real estate pursuant to 
 82.8   subsection (e), together with the assets of the association, 
 82.9   shall be held by the association as trustee for unit owners, 
 82.10  secured parties and other holders of liens on the units as their 
 82.11  interests may appear.  Before distributing any proceeds, the 
 82.12  association shall have authority to deduct from the proceeds of 
 82.13  sale due with respect to the unit (i) unpaid assessments levied 
 82.14  by the association with respect to the unit, (ii) unpaid real 
 82.15  estate taxes or special assessments due with respect to the 
 82.16  unit, and (iii) the share of expenses of sale and winding up of 
 82.17  the association's affairs with respect to the unit. 
 82.18     (i) Following termination of a condominium or planned 
 82.19  community, creditors of the association holding liens on the 
 82.20  units perfected before termination may enforce those liens in 
 82.21  the same manner as any lien holder, in order of priority based 
 82.22  upon their times of perfection.  All other creditors of the 
 82.23  association are to be treated as if they had perfected liens on 
 82.24  the units immediately before termination. 
 82.25     (j) In a cooperative, the declaration may provide that all 
 82.26  creditors of the association have priority over any interests of 
 82.27  unit owners and creditors of unit owners.  In that event, 
 82.28  following termination, creditors of the association holding 
 82.29  liens on the cooperative which were perfected before termination 
 82.30  may enforce their liens in the same manner as any lien holder, 
 82.31  in order of priority based upon their times of perfection.  All 
 82.32  other creditors of the association shall be treated as if they 
 82.33  had perfected a lien against the cooperative immediately before 
 82.34  termination.  Unless the declaration provides that all creditors 
 82.35  of the association have that priority: 
 82.36     (1) the lien of each creditor of the association which was 
 83.1   perfected against the association before termination becomes, 
 83.2   upon termination, a lien against each unit owner's interest in 
 83.3   the unit as of the date the lien was perfected; 
 83.4      (2) any other creditor of the association is to be treated 
 83.5   upon termination as if the creditor had perfected a lien against 
 83.6   each unit owner's interest immediately before termination; 
 83.7      (3) the amount of the lien of an association's creditor 
 83.8   described in paragraphs (1) and (2) against each of the unit 
 83.9   owners' interest shall be proportionate to the ratio which each 
 83.10  unit's common expense liability bears to the common expense 
 83.11  liability of all of the units; 
 83.12     (4) the lien of each creditor of each unit owner which was 
 83.13  perfected before termination continues as a lien against that 
 83.14  unit owner's interest in the unit as of the date the lien was 
 83.15  perfected; and 
 83.16     (5) the assets of the association shall be distributed to 
 83.17  all unit owners and all lien holders as their interests may 
 83.18  appear in the order described in this section.  Creditors of the 
 83.19  association are not entitled to payment from any unit owner in 
 83.20  excess of the amount of the creditor's lien against that unit 
 83.21  owner's interest. 
 83.22     (k) The respective interest of unit owners referred to in 
 83.23  subsections (e), (f), (g), (h) and (i) are as follows: 
 83.24     (1) Except as provided in paragraph (2), the respective 
 83.25  interests of unit owners are the fair market values of their 
 83.26  units, allocated interests, and any limited common elements 
 83.27  immediately before the termination, as determined by one or more 
 83.28  independent appraisers selected by the association.  The 
 83.29  decision of the independent appraisers must be distributed to 
 83.30  the unit owners and becomes final unless disapproved within 30 
 83.31  days after distribution by unit owners of units to which 25 
 83.32  percent of the votes in the association are allocated.  The 
 83.33  proportion of any unit's interest to that of all units is 
 83.34  determined by dividing the fair market value of that unit by the 
 83.35  total fair market values of all the units. 
 83.36     (2) If any unit or any limited common element is destroyed 
 84.1   to the extent that an appraisal of the fair market value thereof 
 84.2   before destruction cannot be made, the interests of all unit 
 84.3   owners are:  (i) in a condominium, their respective common 
 84.4   element interests immediately before the termination, (ii) in a 
 84.5   cooperative, their respective ownership interests immediately 
 84.6   before the termination, and (iii) in a planned community, their 
 84.7   respective common expense liabilities immediately before the 
 84.8   termination. 
 84.9      (1) In a condominium or planned community, except as 
 84.10  provided in subsection (m), foreclosure or enforcement of a lien 
 84.11  or encumbrance against the entire common interest community does 
 84.12  not terminate, of itself, the common interest community, and 
 84.13  foreclosure or enforcement of a lien or encumbrance against a 
 84.14  portion of the common interest community does not withdraw that 
 84.15  portion from the common interest community. 
 84.16     (m) In a condominium or planned community, if a lien or 
 84.17  encumbrance against a portion of the real estate comprising the 
 84.18  common interest community has priority over the declaration and 
 84.19  the lien or encumbrance has not been partially released, the 
 84.20  parties foreclosing the lien or encumbrance, upon foreclosure, 
 84.21  may record an instrument excluding the real estate subject to 
 84.22  that lien or encumbrance from the common interest community. 
 84.23     (n) Following the termination of a common interest 
 84.24  community in accordance with this section, the board of 
 84.25  directors of the association shall cause the association to be 
 84.26  dissolved in accordance with law. 
 84.27     Sec. 13.  Minnesota Statutes 1998, section 515B.2-121, is 
 84.28  amended to read: 
 84.29     515B.2-121 [MASTER ASSOCIATIONS.] 
 84.30     (a) A master association formed after June 1, 1994, shall 
 84.31  be organized as a Minnesota profit, nonprofit, or cooperative or 
 84.32  municipal corporation.  A master association shall be 
 84.33  incorporated prior to the delegation to it of any powers under 
 84.34  this chapter. 
 84.35     (b) The members of the master association shall be any 
 84.36  combination of (i) unit owners of one or more common interest 
 85.1   communities, (ii) one or more associations, (iii) one or more 
 85.2   master associations, or (iv) owners or property owners 
 85.3   associations not subject to this chapter in combination with any 
 85.4   other category of member.  An association or its members may be 
 85.5   members of an entity created before June 1, 1994, which performs 
 85.6   functions similar to those performed by a master association 
 85.7   regardless of whether the entity is subject to this chapter. 
 85.8      (c) If so provided in the declaration, any of the powers 
 85.9   described in section 515B.3-102 may be delegated to and 
 85.10  exercised by a master association, and the master association 
 85.11  shall have all powers referred to elsewhere in this chapter 
 85.12  which may be necessary or incidental to the exercise of the 
 85.13  delegated powers.  However, a master association may exercise 
 85.14  the powers set forth in section 515B.3-102(a)(2) only to the 
 85.15  extent expressly permitted in the declarations of the common 
 85.16  interest communities, and the declarations or bylaws of other 
 85.17  master associations, which are intended to be subject to those 
 85.18  powers and which are members of the master association, or whose 
 85.19  members or associations are members of the master 
 85.20  association.  A master association shall be governed by a board 
 85.21  of directors.  The directors of a master association shall be 
 85.22  elected or, if a nonprofit corporation, elected or appointed, in 
 85.23  a manner consistent with the requirements of the statute under 
 85.24  which the master association is formed and of the master 
 85.25  association's articles of incorporation and bylaws, and subject 
 85.26  to the following requirements: 
 85.27     (1) Except as set forth in subsections (2) and (3), the 
 85.28  members of the master association shall elect the board of 
 85.29  directors.  A majority of the directors shall be members of the 
 85.30  master association or members of a member of the master 
 85.31  association, and shall be persons other than a declarant or 
 85.32  affiliate of a declarant.  If the member is not a natural 
 85.33  person, it may designate a natural person to act on its behalf. 
 85.34     (2) The articles of incorporation or bylaws of the master 
 85.35  association may authorize a person other than a member of the 
 85.36  master association or a unit owner, including a declarant, to 
 86.1   appoint or elect one director.  
 86.2      (3) A master association's articles of incorporation may 
 86.3   suspend the members' right to elect or, in the case of a 
 86.4   nonprofit corporation, elect or appoint, the master 
 86.5   association's board of directors for a specified time period.  
 86.6   During this period, the person or persons who execute the master 
 86.7   declaration under subsection (f)(1), or their successors or 
 86.8   assigns, may appoint the directors.  The period during which the 
 86.9   person or persons may appoint the directors begins when the 
 86.10  master declaration is recorded and terminates upon the earliest 
 86.11  of: 
 86.12     (i) the voluntary surrender of the right to appoint 
 86.13  directors; 
 86.14     (ii) the date ten years after the date the master 
 86.15  declaration is recorded; 
 86.16     (iii) the date, if any, in the articles of incorporation; 
 86.17  or 
 86.18     (iv) the date when at least 75 percent of the associations 
 86.19  that are members of the master association or whose members are 
 86.20  members of the master association are controlled by their 
 86.21  members.  An association's members control the association when 
 86.22  they have the right to elect or appoint a majority of the 
 86.23  association's voting directors. 
 86.24     (4) The term of any director appointed under subsection (3) 
 86.25  expires 60 days after the right to appoint directors 
 86.26  terminates.  The master association's board of directors shall 
 86.27  call an annual or special meeting of the master association's 
 86.28  members to elect or appoint successor directors within the 
 86.29  60-day period. 
 86.30     (5) The system for the election of directors shall be fair 
 86.31  and equitable, and shall take into account the number of members 
 86.32  of each association any of whose powers are delegated to the 
 86.33  master association, the needs of the members of the master 
 86.34  association, the allocation of liability for master association 
 86.35  common expenses, and the types of common interest communities 
 86.36  and other real estate subject to the master association. 
 87.1      (d) The powers may be delegated to a master association by 
 87.2   the declaration, or by the board pursuant to authority granted 
 87.3   in the declaration.  If any delegation of powers may be made at 
 87.4   the discretion of the board, the board of the master association 
 87.5   shall have authority to determine whether the delegation of 
 87.6   powers is authorized by, and consistent with the intent of, the 
 87.7   declaration of the common interest community whose association's 
 87.8   powers are being delegated and the organizational documents of 
 87.9   the master association, and shall have authority to refuse any 
 87.10  improper delegation of powers.  The articles of incorporation or 
 87.11  bylaws of the master association may authorize special classes 
 87.12  of directors and allocations of director voting rights, as 
 87.13  follows:  (i) classes of directors that are elected by different 
 87.14  classes of members, to address operational, physical, or 
 87.15  administrative differences within the master association, or 
 87.16  (ii) class voting by the classes of directors on specific issues 
 87.17  affecting only a certain class or classes of members or units, 
 87.18  or to otherwise protect the legitimate interests of such class 
 87.19  or classes.  No person may utilize such special classes or 
 87.20  allocations for the purpose of evading any limitation imposed on 
 87.21  declarants by this chapter. 
 87.22     (e) If a board properly delegates powers to a master 
 87.23  association, the members of the board have no liability for the 
 87.24  acts or omissions of the master association with respect to the 
 87.25  delegated powers following delegation, except those arising out 
 87.26  of their actions as officers or directors of the master 
 87.27  association.  The officers of a master association shall be 
 87.28  elected, appointed, or designated in a manner consistent with 
 87.29  the statute under which the master association is formed and 
 87.30  consistent with the master association articles of incorporation 
 87.31  and bylaws. 
 87.32     (f) Sections 515B.3-103, 515B.3-108, 515B.3-109, 
 87.33  515B.3-110, and 515B.3-112 shall apply in the conduct of the 
 87.34  affairs of a master association; provided, that the rights of 
 87.35  voting, notice and other rights enumerated in those sections 
 87.36  apply only to persons who elect the board of a master 
 88.1   association, whether or not those persons are otherwise unit 
 88.2   owners within the meaning of this chapter. The creation and 
 88.3   authority of a master association shall be governed by the 
 88.4   following requirements: 
 88.5      (1) A master declaration shall be recorded in connection 
 88.6   with the creation of a master association.  The master 
 88.7   declaration shall be executed by the owners of the real estate 
 88.8   subjected to the master declaration.  The master declaration 
 88.9   shall contain, at a minimum: 
 88.10     (i) the name of the master association; 
 88.11     (ii) a legally sufficient description of the real estate 
 88.12  which is subject to the master declaration, and a legally 
 88.13  sufficient description of any other real estate which may be 
 88.14  subjected to the master declaration pursuant to subsection (g); 
 88.15     (iii) a statement as to whether the real estate subject to, 
 88.16  and which may be subjected to, the master declaration 
 88.17  collectively is or collectively will be a separate common 
 88.18  interest community; 
 88.19     (iv) a description of the members of the master 
 88.20  association; 
 88.21     (v) a description of the powers to be exercised by the 
 88.22  master association on behalf of its members, and on behalf of 
 88.23  the members of its members in the case of members that are 
 88.24  common interest communities.  The provisions of the master 
 88.25  declaration with respect to the grant and exercise of powers for 
 88.26  common interest communities subject to the master association 
 88.27  shall be consistent with the declarations of the common interest 
 88.28  communities that delegate powers to the master association; 
 88.29     (vi) a description of the formula governing the allocation 
 88.30  of assessments and member voting rights, including any special 
 88.31  classes or allocations referred to in subsection (d); and 
 88.32     (vii) the requirements for amendment of the master 
 88.33  declaration, other than an amendment under subsection (g). 
 88.34     (2) The declaration of a common interest community subject 
 88.35  to the master association shall contain provisions delegating, 
 88.36  or authorizing the delegation of, powers to the master 
 89.1   association in accordance with subsection (f)(3).  The 
 89.2   provisions of the declarations relating to the delegation shall 
 89.3   be consistent with the provisions of the master declaration 
 89.4   granting or reserving those powers to the master association.  
 89.5      (3) The declaration may: 
 89.6      (i) delegate any of the powers described in section 
 89.7   515B.3-102 to a master association.  A delegation of the powers 
 89.8   described in section 515B.3-102(a)(2) is effective only if 
 89.9   expressly stated in the declaration; and 
 89.10     (ii) authorize the board to delegate any of the powers 
 89.11  described in section 515B.3-102, except for the powers described 
 89.12  in section 515B.3-102(a)(2), to a master association. 
 89.13     (4) With respect to any other property subject to a master 
 89.14  association, there need not be an instrument other than the 
 89.15  master declaration recorded against the property to empower the 
 89.16  master association to exercise powers with respect to the 
 89.17  property. 
 89.18     (5) If a declaration or other recorded instrument 
 89.19  authorizes a board or owner to delegate powers to a master 
 89.20  association, the master association board may refuse any 
 89.21  delegation of powers that does not comply with (i) this chapter, 
 89.22  (ii) the declaration or other recorded instrument, or (iii) the 
 89.23  organizational documents of the master association. 
 89.24     (6) The failure of a declaration, a board or an owner of 
 89.25  property subject to a master association to properly delegate 
 89.26  some or all of the powers to the master association does not 
 89.27  affect the authority of the master association to exercise those 
 89.28  and other powers with respect to other common interest 
 89.29  communities or owners of properties that are subject to the 
 89.30  master association. 
 89.31     (g) The bylaws of the master association may provide for a 
 89.32  control period during which the members of the master 
 89.33  association board may be appointed by a person, identified in 
 89.34  the master association's bylaws, other than the members of the 
 89.35  master association.  The control period may extend from the date 
 89.36  of filing of the articles of incorporation of the master 
 90.1   association, and shall terminate upon the earlier of (i) 
 90.2   surrender of control by the person authorized to appoint the 
 90.3   members of the master association board or (ii) 60 days after 
 90.4   conveyance of 75 percent of the units contained in all common 
 90.5   interest communities subject to the master association to unit 
 90.6   owners other than a declarant or an affiliate of a declarant of 
 90.7   those common interest communities, subject to the following: 
 90.8      (1) Not later than 60 days after conveyance of 50 percent 
 90.9   of the units that may be created to unit owners other than a 
 90.10  declarant or an affiliate of a declarant, a meeting of the 
 90.11  members of the master association shall be held at which not 
 90.12  less than 33-1/3 percent of the members of the master 
 90.13  association board shall be elected by persons entitled to elect 
 90.14  said board other than a declarant or an affiliate of a declarant.
 90.15     (2) Not later than the termination of the control period, 
 90.16  those members of the master association entitled to elect the 
 90.17  master association board shall elect a master association board 
 90.18  of at least three members.  Thereafter, a majority of the 
 90.19  directors of the master association board shall be members of 
 90.20  the master association other than a declarant or an affiliate of 
 90.21  a declarant.  The remaining directors need not be members of the 
 90.22  master association, unless required by the articles of 
 90.23  incorporation or bylaws of the master association.  The master 
 90.24  association board shall elect the officers of the master 
 90.25  association.  The directors and officers shall take office upon 
 90.26  election. 
 90.27     (3) In determining whether the control period has 
 90.28  terminated under subsection (h), or whether members other than a 
 90.29  declarant or an affiliate of a declarant are entitled to elect 
 90.30  members of the master board, the percentage of units which has 
 90.31  been conveyed shall be calculated based upon the assumption that 
 90.32  all units which a declarant or declarants have built or reserved 
 90.33  the right to build in all common interest communities which may 
 90.34  be subject to the master association are subjected to the master 
 90.35  association. 
 90.36     (h) The declaration or bylaws of the master association, 
 91.1   and the declaration of each common interest community whose 
 91.2   association's powers are delegated to the association, shall 
 91.3   provide that after the expiration of the control period referred 
 91.4   to in subsection (g) the board of the master association shall 
 91.5   be elected by the members of the master association.  The system 
 91.6   of election shall be fair and equitable, and shall take into 
 91.7   account the number of members of each association any of whose 
 91.8   powers are delegated to the master association, the needs of the 
 91.9   members of the master association, the allocation of liability 
 91.10  for master association common expenses and the types of common 
 91.11  interest communities and other real estate subject to the master 
 91.12  association. 
 91.13     (i) Master association common expenses shall be allocated 
 91.14  among the members of the master association in a fair and 
 91.15  equitable manner.  Where applicable and appropriate, the 
 91.16  formulas and principles described in section 515B.2-108 (b), 
 91.17  (c), (d) and (e) should be utilized in making the allocations.  
 91.18  The formulas and procedures governing the allocation and 
 91.19  assessment of master association common expenses shall be set 
 91.20  forth in the declaration or bylaws of the master association, 
 91.21  and shall be consistent with the declarations of the common 
 91.22  interest communities which may be subject to the master 
 91.23  association. 
 91.24     (j) If a master association owns or controls real estate 
 91.25  which is subject to use rights by members of the master 
 91.26  association, an instrument describing the use rights, and the 
 91.27  benefited land and parties, shall be recorded against the real 
 91.28  estate. 
 91.29     (g) The master declaration may authorize other real estate 
 91.30  to be subjected to the master declaration.  The other real 
 91.31  estate shall be subjected to the master declaration by an 
 91.32  amendment executed by the owner of the other real estate and 
 91.33  approved in writing by the person who executed the master 
 91.34  declaration, if other than the owner of the other real estate. 
 91.35     (h) Sections 515B.3-103, 515B.3-108, 515B.3-109, 
 91.36  515B.3-110, and 515B.3-112 shall apply in the conduct of the 
 92.1   affairs of a master association.  But the rights of voting, 
 92.2   notice, and other rights enumerated in those sections apply only 
 92.3   to persons who elect or appoint the board of a master 
 92.4   association, whether or not those persons are otherwise unit 
 92.5   owners within the meaning of this chapter. 
 92.6      (i) If so provided in the master declaration, a master 
 92.7   association may levy assessments for common expenses of the 
 92.8   master association against the property subject to the master 
 92.9   declaration, and have and foreclose liens securing the 
 92.10  assessments.  The liens shall have the same priority against 
 92.11  secured parties, shall include the same fees and charges, and 
 92.12  may be foreclosed in the same manner, as assessment liens under 
 92.13  section 515B.3-116.  The master association's lien shall have 
 92.14  priority as against the lien of an association or property 
 92.15  owner's association subject to the master association, 
 92.16  regardless of when the lien arose or was perfected. 
 92.17     (1) Master association common expenses shall be allocated 
 92.18  among the members of the master association in a fair and 
 92.19  equitable manner.  If the members are associations or property 
 92.20  owners' associations, then the master assessments may be 
 92.21  allocated among and levied directly against the units or other 
 92.22  parcels owned by the members of the association or property 
 92.23  owner's association.  If so provided in the master declaration, 
 92.24  master assessments levied against a member association or 
 92.25  property owner's association are allocated among and levied 
 92.26  against the units or other parcels owned by the members of the 
 92.27  association or property owner's association.  If applicable and 
 92.28  appropriate, the formulas and principles described in section 
 92.29  515B.2-108, subsections (b), (c), (d), and (e), shall be used in 
 92.30  making the allocations.  The assessment formulas and procedures 
 92.31  described in the declarations of any common interest communities 
 92.32  or any instruments governing other real estate subject to the 
 92.33  master association shall not conflict with the formulas and 
 92.34  procedures described in the master declaration. 
 92.35     (2) The master declaration may exempt from liability any 
 92.36  person authorized by subsection (c)(3) to appoint the members of 
 93.1   the master association board for master association common 
 93.2   expenses, and exempt any unit owned by the person from a lien 
 93.3   for such common expenses, until a dwelling constituting or 
 93.4   located within the unit is substantially completed.  Substantial 
 93.5   completion shall be evidenced by a certificate of occupancy in a 
 93.6   jurisdiction that issues that certificate. 
 93.7      (k) (j) A master association shall not be used, directly or 
 93.8   indirectly, to avoid or nullify any warranties or other 
 93.9   obligations for which a declarant of a common interest community 
 93.10  subject to the master association is responsible, or to 
 93.11  otherwise avoid the requirements of this chapter. 
 93.12     Sec. 14.  Minnesota Statutes 1998, section 515B.2-122, is 
 93.13  amended to read: 
 93.14     515B.2-122 [MERGER OR CONSOLIDATION OF COMMON INTEREST 
 93.15  COMMUNITIES.] 
 93.16     (a) Any two or more common interest communities of the same 
 93.17  form of ownership, by agreement of the unit owners as provided 
 93.18  in subsection (b), may be merged or consolidated into a single 
 93.19  common interest community.  The resultant common interest 
 93.20  community shall be the legal successor, for all purposes, of all 
 93.21  of the preexisting common interest communities, and the 
 93.22  operations and activities of the preexisting common interest 
 93.23  communities are merged or consolidated into a single common 
 93.24  interest community that holds all powers, rights, obligations, 
 93.25  assets, and liabilities of the preexisting common interest 
 93.26  communities. 
 93.27     (b) An agreement of two or more common interest communities 
 93.28  to merge or consolidate pursuant to subsection (a) shall be 
 93.29  evidenced by an agreement executed by the president of the 
 93.30  association of each of the preexisting common interest 
 93.31  communities following approval by owners of units to which are 
 93.32  allocated the votes in each common interest community required 
 93.33  to terminate that common interest community. 
 93.34     (c) Every merger or consolidation agreement shall contain: 
 93.35     (1) the names of the resultant common interest community 
 93.36  and its association; 
 94.1      (2) the number of the resultant common interest community, 
 94.2   which shall be a new common interest community number assigned 
 94.3   to the resultant common interest community by the recording 
 94.4   officer; 
 94.5      (3) a requirement that the associations of the common 
 94.6   interest communities shall be merged pursuant to the applicable 
 94.7   statute; 
 94.8      (4) a reallocation of the allocated interests in the 
 94.9   preexisting common interest communities among the units of the 
 94.10  resultant common interest community by stating the reallocations 
 94.11  and the formulas upon which they are based; 
 94.12     (5) a statement that the common interest communities have 
 94.13  approved and will, within 90 days after the execution of the 
 94.14  merger agreement, record a declaration as provided in subsection 
 94.15  (d) or commence an appropriate proceeding to accomplish the 
 94.16  recording if necessary. 
 94.17     (d) A declaration, including a new or amended CIC plat if 
 94.18  necessary, complying with this chapter and governing the 
 94.19  resultant common interest community shall be recorded in every 
 94.20  county in which a portion of each preexisting common interest 
 94.21  community is located, and the merger or consolidation is not 
 94.22  effective until the declaration is recorded.  In addition to 
 94.23  other matters required by this chapter, the declaration shall 
 94.24  contain: 
 94.25     (1) a reference to the names and numbers of the preexisting 
 94.26  common interest communities, and the names of their 
 94.27  associations; 
 94.28     (2) a statement that the preexisting common interest 
 94.29  communities and their associations have been merged or 
 94.30  consolidated pursuant to this chapter and the applicable 
 94.31  corporate statute, and 
 94.32     (3) a statement that the declaration supersedes the 
 94.33  declarations of the preexisting common interest communities and 
 94.34  governs the resultant common interest community. 
 94.35     (e) Upon approval as provided in subsection (b), the 
 94.36  association for the resultant common interest community may 
 95.1   execute the declaration, and a new or amended CIC plat if 
 95.2   necessary, on behalf of the unit owners of, and all other 
 95.3   persons holding an interest in, the units or other property that 
 95.4   is a part of the preexisting common interest communities, and to 
 95.5   do all other acts necessary to merge or consolidate the common 
 95.6   interest communities. 
 95.7      (f) The declaration and CIC plat for the resultant common 
 95.8   interest community may be recorded without the necessity of 
 95.9   paying the current or delinquent real estate taxes on any of the 
 95.10  units. 
 95.11     Sec. 15.  [515B.2-124] [SEVERANCE OF COMMON INTEREST 
 95.12  COMMUNITY.] 
 95.13     (a) Unless the declaration provides otherwise, a part of a 
 95.14  common interest community containing one or more units may be 
 95.15  severed from the common interest community, subject to the 
 95.16  requirements of this section.  Subject to any additional 
 95.17  requirements contained in the declaration, the severance shall 
 95.18  be approved in a written severance agreement satisfying the 
 95.19  requirements of this section, executed by: 
 95.20     (1) unit owners entitled to cast at least 67 percent of the 
 95.21  votes in the association, which approval shall include the 
 95.22  approval of unit owners entitled to cast a majority of the votes 
 95.23  allocated to units in the remaining common interest community 
 95.24  and the approval of unit owners entitled to cast a majority of 
 95.25  the votes allocated to units in the part of the common interest 
 95.26  community being severed; 
 95.27     (2) declarant until the earlier of five years after the 
 95.28  recording of the declaration or the time at which declarant no 
 95.29  longer owns an unsold unit; and 
 95.30     (3) in the case of a cooperative, all holders of mortgages 
 95.31  or contracts for deed on the entire real estate constituting the 
 95.32  cooperative. 
 95.33     (b) The declaration may specify a smaller percentage for 
 95.34  unit owner approval only if all of the units are restricted to 
 95.35  nonresidential use. 
 95.36     (c) The severance agreement shall specify a severance date 
 96.1   by which the severance of the common interest community shall be 
 96.2   accomplished, after which the severance agreement is void.  The 
 96.3   severance agreement shall be deemed to grant to the association 
 96.4   a power of attorney coupled with an interest to effect the 
 96.5   severance of the common interest community on behalf of the unit 
 96.6   owners and the holders of all other interests in the units, 
 96.7   including without limit the power to execute the amendment to 
 96.8   the declaration, any instruments of conveyance, and all related 
 96.9   instruments. 
 96.10     (d) The severance agreement shall: 
 96.11     (1) Approve an amendment to the declaration complying with 
 96.12  this chapter, in substantially the same form to be recorded, 
 96.13  which, at a minimum, (i) legally describes the real estate 
 96.14  constituting the remaining common interest community and the 
 96.15  real estate being severed, (ii) restates the number of units in 
 96.16  the remaining common interest community, and (iii) reallocates 
 96.17  the interests of the unit owners in the remaining common 
 96.18  interest community among the remaining units in accordance with 
 96.19  the allocation formula set forth in the declaration, and (iv) 
 96.20  recites any easements to which the severed portion of the common 
 96.21  interest community remains subject. 
 96.22     (2) Approve an amendment to the articles of incorporation 
 96.23  and bylaws of the remaining common interest community, if 
 96.24  necessary. 
 96.25     (3) Authorize the association to execute and record the 
 96.26  amended declaration, articles of incorporation or bylaws on 
 96.27  behalf of the unit owners and all other persons holding an 
 96.28  interest in the remaining common interest community, and to take 
 96.29  other actions necessary to accomplish the severance of the 
 96.30  common interest community. 
 96.31     (4) Allocate the assets and liabilities of the association 
 96.32  between the association, and (i) a new association formed 
 96.33  pursuant to subsection (g), or (ii) the owners of the units 
 96.34  being severed, subject to a lien against their interest in the 
 96.35  severed real estate or their share in the assets of the 
 96.36  association in favor of any person that held a security interest 
 97.1   in their unit. 
 97.2      (5) If the units that are being severed from the common 
 97.3   interest community will not be included in a new common interest 
 97.4   community that is (i) formed simultaneously with the severance 
 97.5   of the common interest community, and (ii) includes all of the 
 97.6   units and substantially all of the common elements being 
 97.7   severed, then the agreement shall contain the written consent of 
 97.8   holders of first mortgages on all units that are being severed, 
 97.9   and shall describe in detail the proposed disposition of all 
 97.10  real estate to be severed and all assets of the association 
 97.11  allocated to the severed units, and the distribution of the 
 97.12  proceeds of the disposition, if any. 
 97.13     (e) The severance agreement or a memorandum of it shall be 
 97.14  recorded in every county in which a part of the common interest 
 97.15  community is located.  The recording of the severance agreement 
 97.16  or memorandum of it shall, from the date of recording, 
 97.17  constitute notice to all persons subsequently acquiring an 
 97.18  interest in the common interest community that the common 
 97.19  interest community is being severed, and that those persons 
 97.20  acquire their interests subject to the terms and conditions 
 97.21  contained in the severance agreement and the amendment to the 
 97.22  declaration. 
 97.23     (f) The amendment to the declaration of the remaining 
 97.24  common interest community shall be recorded on or before the 
 97.25  severance date, or the severance agreement and the amendment to 
 97.26  the declaration is void as of the day after the severance date.  
 97.27  The recording of the amendment to the declaration shall complete 
 97.28  the severance of the common interest community and release the 
 97.29  severed part of the common interest community from the 
 97.30  declaration without further action by any person. 
 97.31     (g) If the unit owners whose units are being severed from 
 97.32  the common interest community intend to form a new common 
 97.33  interest community, then said unit owners shall unanimously 
 97.34  approve a declaration, articles of incorporation and bylaws to 
 97.35  govern the new common interest community no later than 60 days 
 97.36  before the effective date of the severance.  The declaration 
 98.1   creating the new common interest community shall be recorded 
 98.2   simultaneously with the amendment to the declaration.  No later 
 98.3   than 30 days before the effective date of the severance, the 
 98.4   unit owners shall cause the association governing the new common 
 98.5   interest community to be created by filing the articles of 
 98.6   incorporation of the association with the secretary of state, 
 98.7   and shall elect a board of directors to act on behalf of the new 
 98.8   association.  The board of directors of the new association 
 98.9   shall coordinate the completion of the severance with the board 
 98.10  of directors of the existing association.  The existing 
 98.11  association shall retain all authority to act on behalf of the 
 98.12  common interest community until the amendment to the declaration 
 98.13  is recorded. 
 98.14     (h) The legal descriptions of the real estate constituting 
 98.15  (i) the remaining common interest community, and (ii) the 
 98.16  severed portion of the common interest community shall, at the 
 98.17  time of recording of the amendment to the declaration referred 
 98.18  to in subsection (e), be as follows: 
 98.19     (1) In a planned community using a CIC plat that complies 
 98.20  with section 515B.2-110, subsection (d), the lot and block 
 98.21  descriptions contained in the CIC plat, and any amendments to 
 98.22  it, with respect to (i) the remaining common interest community, 
 98.23  and (ii) the severed portion of the common interest community. 
 98.24     (2) In a condominium, or cooperative or planned community 
 98.25  using a CIC plat that complies with section 515B.2-110, 
 98.26  subsection (c), (i) the CIC plat description relating to the 
 98.27  remaining common interest community, and (ii) the part of the 
 98.28  underlying legal description of the real estate in the 
 98.29  declaration creating the common interest community, and any 
 98.30  amendments to it, relating to the severed part of the common 
 98.31  interest community. 
 98.32     (3) The recording officer for each county in which the 
 98.33  common interest community is located shall index the property 
 98.34  located in that county in its records under the legal 
 98.35  descriptions required by this subsection as of the date of 
 98.36  recording of the amendment to the declaration.  In the case of 
 99.1   registered property, the registrar of titles shall cancel the 
 99.2   existing certificates of title for the severed part of the 
 99.3   common interest community and issue certificates of title for 
 99.4   the property using the legal descriptions required by this 
 99.5   subsection. 
 99.6      (i) In a condominium or planned community, if the severed 
 99.7   part of the common interest community is not to be reconstituted 
 99.8   as a new common interest community following severance, title to 
 99.9   the common elements and, in a common interest community in which 
 99.10  all units have upper and lower boundaries described in the 
 99.11  declaration title to all the real estate in the severed part of 
 99.12  the common interest community, vests in the unit owners of the 
 99.13  units being severed, upon severance, as tenants in common in 
 99.14  proportion to their respective allocated interests in the 
 99.15  declaration, and liens on the units shift accordingly.  While 
 99.16  the tenancy in common exists, each unit owner and the unit 
 99.17  owner's successors in interest have an exclusive right to 
 99.18  occupancy of the portion of the real estate that formerly 
 99.19  constituted the unit, and a nonexclusive easement across, over 
 99.20  and under any common elements contained in the severed portion 
 99.21  of the common interest community for enjoyment, access, 
 99.22  utilities, communication services, and other essential services, 
 99.23  as applicable. 
 99.24     (j) No common interest community shall be severed in such a 
 99.25  manner as to materially impair access, utility services, 
 99.26  communication services, or other essential services with respect 
 99.27  to either the remaining common interest community or the severed 
 99.28  part of the common interest community. 
 99.29     Sec. 16.  [515B.2-125] [ADDITION OF COMMON ELEMENTS.] 
 99.30     (a) Unless the declaration provides otherwise, real estate 
 99.31  owned by the association may be added to the common interest 
 99.32  community, as common elements only, subject to the requirements 
 99.33  of this section.  Subject to any additional requirements 
 99.34  contained in the declaration, the addition of the real estate 
 99.35  shall be approved by: 
 99.36     (1) unit owners entitled to cast at least 67 percent of the 
100.1   votes in the association; 
100.2      (2) declarant until the earlier of (i) five years after the 
100.3   recording of the declaration, or (ii) the time at which 
100.4   declarant no longer owns an unsold unit; and 
100.5      (3) in the case of a cooperative, all holders of mortgages 
100.6   or contracts for deed on the entire real estate constituting the 
100.7   cooperative. 
100.8      (b) The declaration may specify a smaller percentage for 
100.9   unit owner approval only if all of the units are restricted to 
100.10  nonresidential use.  A part of the common elements shall not be 
100.11  designated as limited common elements unless approved 
100.12  unanimously in writing by the unit owners. 
100.13     (c) The approval by the unit owners shall be deemed to 
100.14  grant to the association a power of attorney coupled with an 
100.15  interest to acquire title to the real estate, if not previously 
100.16  acquired, and to add the real estate to the common interest 
100.17  community on behalf of the unit owners and the holders of all 
100.18  other interests in the units, including without limit the power 
100.19  to execute an amendment to the declaration and any other 
100.20  instruments relating to the acquisition. 
100.21     (d) Following the required approvals, the association shall 
100.22  record an amendment to the declaration complying with this 
100.23  chapter, that, at a minimum, (i) legally describes the real 
100.24  estate added, (ii) designates the real estate as part of the 
100.25  common elements, and (iii) subjects the real estate to the 
100.26  declaration. 
100.27     (e) In the case of a common interest community using a plat 
100.28  complying with section 515B.2-110, subsection (c), the 
100.29  association shall record an amended CIC plat reflecting the 
100.30  change in the common elements with the amendment to the 
100.31  declaration.  The recording of the amendment to the declaration, 
100.32  and amended CIC plat if required, shall complete the addition of 
100.33  the real estate without further action by any person. 
100.34     Sec. 17.  Minnesota Statutes 1998, section 515B.3-103, is 
100.35  amended to read: 
100.36     515B.3-103 [DUTY OF BOARD, OFFICERS DURING, AFTER DECLARANT 
101.1   CONTROL.] 
101.2      (a) An association shall be governed by a board of 
101.3   directors.  Except as expressly prohibited by the declaration, 
101.4   the articles of incorporation, bylaws, subsection (b), or other 
101.5   provisions of this chapter, the board may act in all instances 
101.6   on behalf of the association.  In the performance of their 
101.7   duties, the officers and directors are required to exercise (i) 
101.8   if appointed by the declarant, the care required of fiduciaries 
101.9   of the unit owners and (ii) if elected by the unit owners, the 
101.10  care required of a director by section 302A.251 or 317A.251, as 
101.11  applicable. 
101.12     (b) The board may not act unilaterally to amend the 
101.13  declaration, to terminate the common interest community, to 
101.14  elect directors to the board, or to determine the 
101.15  qualifications, powers and duties, or terms of office of 
101.16  directors, but the board may fill vacancies in its membership 
101.17  created other than by removal by the vote of the association 
101.18  members for the unexpired portion of any term. 
101.19     (c) Subject to subsection (d), the declaration may provide 
101.20  for a period of declarant control of the association, during 
101.21  which a declarant, or persons designated by the declarant, may 
101.22  appoint and remove the officers and directors of the association.
101.23  The maximum period of declarant control may extend from the date 
101.24  of the first conveyance of a unit to a unit owner other than a 
101.25  declarant for a period not exceeding five years in the case of a 
101.26  flexible common interest community or three years in the case of 
101.27  any other common interest community.  Regardless of any longer 
101.28  period provided in the declaration or elsewhere, a period of 
101.29  declarant control shall terminate upon the earlier of (i) 
101.30  surrender of control by the declarant or (ii) 60 days after 
101.31  conveyance of 75 percent of the units to unit owners other than 
101.32  a declarant. 
101.33     (d) Not later than 60 days after conveyance of 50 percent 
101.34  of the units that may be created to unit owners other than a 
101.35  declarant or an affiliate of a declarant, a meeting of the unit 
101.36  owners shall be held at which not less than 33-1/3 percent of 
102.1   the members of the board shall be elected by unit owners other 
102.2   than a declarant or an affiliate of a declarant. 
102.3      (e) Not later than Following the termination of any period 
102.4   of declarant control the unit owners shall elect a the board of 
102.5   at least three members.  Thereafter, a majority of the directors 
102.6   shall be unit owners other than a declarant or an affiliate of a 
102.7   declarant.  The remaining directors need not be unit owners 
102.8   unless required by the articles of incorporation, bylaws or 
102.9   declaration.  All unit owners, including the declarant and its 
102.10  affiliates, may cast the votes allocated to any units owned by 
102.11  them.  The board shall elect the officers.  The directors and 
102.12  officers shall take office upon election.  All unit owners, 
102.13  including the declarant and its affiliates, may cast the votes 
102.14  allocated to any units owned by them.  The board shall 
102.15  thereafter be subject to the following requirements. 
102.16     (1) A majority of the directors shall be unit owners other 
102.17  than a declarant or an affiliate of a declarant, or a natural 
102.18  person designated by a unit owner that is not a natural person.  
102.19  The remaining directors need not be unit owners unless required 
102.20  by the articles of incorporation or bylaws. 
102.21     (2) Subject to the requirements of subsection (1), the 
102.22  articles of incorporation or by laws may authorize (i) the 
102.23  appointment or election of one director, who need not be a unit 
102.24  owner, by a declarant or by a person or persons other than a 
102.25  unit owner, (ii) classes of directors, and (iii) the election of 
102.26  certain directors by unit owners of a certain class or classes 
102.27  of units.  The articles of incorporation or bylaws shall not be 
102.28  amended to change or terminate the authorization described in 
102.29  (i) without the written consent of the person possessing the 
102.30  power to appoint or elect. 
102.31     (3) Subject to the requirements of subsection (1), if 
102.32  separate classes of directors are authorized under subsection 
102.33  (2), the articles of incorporation or bylaws may authorize class 
102.34  voting by classes of directors on specified issues affecting 
102.35  only a certain class of units, or to protect the legitimate 
102.36  interests of the class.  A person shall not use special class 
103.1   voting to evade any limit imposed on declarants by this chapter. 
103.2      (4) The board shall elect the officers.  The directors and 
103.3   officers shall take office upon election. 
103.4      (f) In determining whether the period of declarant control 
103.5   has terminated under subsection (c), or whether unit owners 
103.6   other than a declarant are entitled to elect members of the 
103.7   board of directors under subsection (d), the percentage of the 
103.8   units which has been conveyed shall be calculated based upon the 
103.9   assumption that all units which the declarant has built or 
103.10  reserved the right to build in the declaration are included in 
103.11  the common interest community.  The percentages referred to in 
103.12  subsections (c) and (d) shall be calculated without reference to 
103.13  units that are auxiliary to other units, such as garage units or 
103.14  storage units.  A person shall not use a master association or 
103.15  other device to evade the requirements of this section. 
103.16     (g) Except as otherwise provided in this subsection, 
103.17  meetings of the board of directors must be open to the unit 
103.18  owners.  To the extent practicable, the board shall give 
103.19  reasonable notice to the unit owners of the date, time, and 
103.20  place of a board meeting.  If the date, time, and place of 
103.21  meetings are provided for in the declaration, articles, or 
103.22  bylaws, announced at a previous meeting of the board, posted in 
103.23  a location accessible to the unit owners and designated by the 
103.24  board from time to time, or if an emergency requires immediate 
103.25  consideration of a matter by the board, notice is not required.  
103.26  "Notice" has the meaning given in section 317A.011, subdivision 
103.27  14.  Meetings may be closed to discuss the following: 
103.28     (1) personnel matters; 
103.29     (2) pending or potential litigation, arbitration or other 
103.30  potentially adversarial proceedings, between unit owners, 
103.31  between the board or association and unit owners, or other 
103.32  matters in which any unit owner may have an adversarial 
103.33  interest, if the board determines that closing the meeting is 
103.34  necessary to discuss strategy or to otherwise protect the 
103.35  position of the board or association or the privacy of a unit 
103.36  owner or occupant of a unit; or 
104.1      (3) criminal activity arising within the common interest 
104.2   community if the board determines that closing the meeting is 
104.3   necessary to protect the privacy of the victim or that opening 
104.4   the meeting would jeopardize investigation of the activity.  
104.5      Nothing in this subsection imposes a duty on the board to 
104.6   provide special facilities for meetings.  The failure to give 
104.7   notice as required by this subsection shall not invalidate the 
104.8   board meeting or any action taken at the meeting.  The minutes 
104.9   of any part of a meeting that is closed under this subsection 
104.10  may be kept confidential at the discretion of the board. 
104.11     Sec. 18.  Minnesota Statutes 1998, section 515B.3-105, is 
104.12  amended to read: 
104.13     515B.3-105 [TERMINATION OF DECLARANT'S CONTRACTS, LEASES.] 
104.14     If entered into prior to expiration of the period of 
104.15  declarant control pursuant to section 515B.3-103, (i) any 
104.16  management contract, employment contract, or lease of 
104.17  recreational facilities, units, garages or other parking 
104.18  facilities, (ii) any contract, lease or license binding the 
104.19  association to which a declarant or an affiliate of a declarant 
104.20  is a party, or (iii) any contract, lease or license binding the 
104.21  association or any unit owner other than the declarant or an 
104.22  affiliate of the declarant which is not bona fide or which was 
104.23  unconscionable to the unit owners at the time entered into under 
104.24  the circumstances then prevailing, may be terminated without 
104.25  penalty by the association at any time after the expiration of 
104.26  declarant control upon not less than 90 days' notice to the 
104.27  other party.  If, during the suspension period described in 
104.28  subsection 2-121(c)(3), a contract, lease, or license of a type 
104.29  described in this section is entered into and is binding upon a 
104.30  master association, then the master association, and not any 
104.31  association, may terminate the contract, lease, or license under 
104.32  the procedures in this section.  This section does not apply to 
104.33  (i) any lease the termination of which would terminate the 
104.34  common interest community or, (ii) a proprietary lease, or (iii) 
104.35  in the case of a cooperative, a mortgage, or contract for deed 
104.36  encumbering all real estate constituting the common interest 
105.1   community. 
105.2      Sec. 19.  Minnesota Statutes 1998, section 515B.3-106, is 
105.3   amended to read: 
105.4      515B.3-106 [BYLAWS; ANNUAL REPORT.] 
105.5      (a) A common interest community shall have bylaws which 
105.6   comply with this chapter and the requirements of the statute 
105.7   under which the association is incorporated.  The bylaws and any 
105.8   amendments may be recorded, but need not be recorded to be 
105.9   effective unless so provided in the bylaws. 
105.10     (b) The bylaws shall provide that, in addition to any 
105.11  statutory requirements: 
105.12     (1) A meeting of the members shall be held at least once 
105.13  each year, and a specified officer of the association shall give 
105.14  notice of the meeting as provided in section 515B.3-108. 
105.15     (2) An annual report shall be prepared by the association 
105.16  and a copy of the report shall be provided to each unit owner at 
105.17  or prior to the annual meeting. 
105.18     (c) The annual report shall contain at a minimum: 
105.19     (1) a statement of any capital expenditures in excess of 
105.20  two percent of the current budget or $5,000, whichever is 
105.21  greater, approved by the association for the current fiscal year 
105.22  or succeeding two fiscal years; 
105.23     (2) a statement of the balance in any reserve or 
105.24  replacement fund; 
105.25     (3) a copy of the statement of revenues and expenses for 
105.26  the association's last fiscal year, and a balance sheet as of 
105.27  the end of said fiscal year; 
105.28     (4) a statement of the status of any pending litigation or 
105.29  judgments to which the association is a party; 
105.30     (5) a statement detailed description of the insurance 
105.31  coverage provided by the association including a statement as to 
105.32  which, if any, of the items referred to in section 515B.3-113, 
105.33  subsection (b), are insured by the association; and 
105.34     (6) a statement of the total past due assessments on all 
105.35  units, current as of not more than 60 days prior to the date of 
105.36  the meeting. 
106.1      Sec. 20.  Minnesota Statutes 1998, section 515B.3-110, is 
106.2   amended to read: 
106.3      515B.3-110 [VOTING; PROXIES.] 
106.4      (a) At any meeting of the association an owner or the 
106.5   holder of the owner's proxy shall be entitled to cast the vote 
106.6   which is allocated to the unit.  If there is more than one owner 
106.7   of a unit, only one of the owners may cast the vote.  If the 
106.8   owners of a unit fail to agree as to who shall cast the vote, 
106.9   the vote shall not be cast. 
106.10     (b) If permitted by the articles or bylaws, votes allocated 
106.11  to a unit may be cast pursuant to a proxy executed by the unit 
106.12  owner entitled to cast the vote for that unit.  The board may 
106.13  specify the form of proxy and proxy rules, consistent with law. 
106.14     (c) The entire vote on any single issue (except the 
106.15  election of directors), may be by mailed ballots, subject to (i) 
106.16  any prohibition or requirement contained in the articles of 
106.17  incorporation, bylaws, or declaration and (ii) any requirements 
106.18  of the statute under which the association is created.  Such a 
106.19  vote shall have the force and effect of a vote taken at a 
106.20  meeting; provided, that the total votes cast are at least equal 
106.21  to the votes required for a quorum.  The board shall set a 
106.22  voting period within which the ballots must be returned, which 
106.23  period shall be not less than ten nor more than 30 days after 
106.24  the date of mailing or hand delivery of the ballots to the 
106.25  owners.  The board of directors shall provide written notice of 
106.26  the results of the vote to the members within 30 days after the 
106.27  expiration of the voting period.  All requirements in this 
106.28  chapter, the declaration or the bylaws for a meeting of the 
106.29  members, or being present in person, shall be deemed satisfied 
106.30  by a vote taken by mail in compliance with the requirements of 
106.31  this section. 
106.32     (d) The articles of incorporation or bylaws may authorize 
106.33  class voting by unit owners for directors or on specified issues 
106.34  affecting the class.  Class voting may only be used to address 
106.35  operational, physical, or administrative differences within the 
106.36  common interest community.  A declarant shall not use class 
107.1   voting to evade any limit imposed on declarants by this chapter 
107.2   and units shall not constitute a class because they are owned by 
107.3   a declarant.  
107.4      (e) The declaration or bylaws may provide that votes on 
107.5   specified matters affecting the common interest community be 
107.6   cast by lessees or secured parties rather than unit owners; 
107.7   provided that (i) the provisions of subsections (a), (b), and (c)
107.8   apply to those persons as if they were unit owners; (ii) unit 
107.9   owners who have so delegated their votes to other persons may 
107.10  not cast votes on those specified matters; (iii) lessees or 
107.11  secured parties are entitled to notice of meetings, access to 
107.12  records, and other rights respecting those matters as if they 
107.13  were unit owners, and (iv) the lessee or secured party has filed 
107.14  satisfactory evidence of its interest with the secretary of the 
107.15  association prior to the meeting.  Unit owners must also be 
107.16  given notice, in the manner provided in section 515B.3-108(b), 
107.17  of meetings at which lessees or secured parties are entitled to 
107.18  vote. 
107.19     (e) (f) No votes allocated to a unit owned by the 
107.20  association may be cast nor counted toward a quorum. 
107.21     Sec. 21.  Minnesota Statutes 1998, section 515B.3-113, is 
107.22  amended to read: 
107.23     515B.3-113 [INSURANCE.] 
107.24     (a) Commencing not later than the time of the first 
107.25  conveyance of a unit to a unit owner other than a declarant, the 
107.26  association shall maintain, to the extent reasonably available: 
107.27     (1) subject to subsection (b), property insurance (i) on 
107.28  the common elements and, in a planned community, also on 
107.29  property that must become common elements, (ii) for broad form 
107.30  covered causes of loss, and (iii) in a total amount of not less 
107.31  than the full insurable replacement cost of the insured 
107.32  property, less deductibles, at the time the insurance is 
107.33  purchased and at each renewal date, exclusive of items normally 
107.34  excluded from property policies; and 
107.35     (2) commercial general liability insurance against claims 
107.36  and liabilities arising in connection with the ownership, 
108.1   existence, use or management of the property in an amount, if 
108.2   any, specified by the common interest community instruments or 
108.3   otherwise deemed sufficient in the judgment of the board, 
108.4   insuring the board, the association, the management agent, and 
108.5   their respective employees, agents and all persons acting as 
108.6   agents.  The declarant shall be included as an additional 
108.7   insured in its capacity as a unit owner or board member.  The 
108.8   unit owners shall be included as additional insureds but only 
108.9   for claims and liabilities arising in connection with the 
108.10  ownership, existence, use or management of the common elements.  
108.11  The insurance shall cover claims of one or more insured parties 
108.12  against other insured parties. 
108.13     (b) In the case of a common interest community that 
108.14  contains units, or structures within units, sharing or having 
108.15  contiguous walls, siding or roofs, the insurance maintained 
108.16  under subsection (a)(1) shall include the those units, or 
108.17  structures within those units, and the common elements.  The 
108.18  insurance need not cover improvements and betterments to the 
108.19  units installed by unit owners, but the following items within 
108.20  the units:  (i) ceiling or wall finishing materials, (ii) floor 
108.21  coverings, (iii) cabinetry, (iv) finished millwork, (v) 
108.22  electrical or plumbing fixtures serving a single unit, (vi) 
108.23  built-in appliances, or (vii) other improvements and 
108.24  betterments, regardless of when installed.  If any improvements 
108.25  and betterments are covered, any increased cost may be assessed 
108.26  by the association against the units affected.  The association 
108.27  may, in the case of a claim for damage to a unit or units, (i) 
108.28  pay the deductible amount as a common expense, (ii) assess the 
108.29  deductible amount against the units affected in any reasonable 
108.30  manner, or (iii) require the unit owners of the units affected 
108.31  to pay the deductible amount directly. 
108.32     (c) If the insurance described in subsections (a) and (b) 
108.33  is not reasonably available, the association shall promptly 
108.34  cause notice of that fact to be hand delivered or sent prepaid 
108.35  by United States mail to all unit owners.  The declaration may 
108.36  require the association to carry any other insurance, and the 
109.1   association in any event may carry any other insurance it 
109.2   considers appropriate to protect the association, the unit 
109.3   owners or officers, directors or agents of the association. 
109.4      (d) Insurance policies carried pursuant to subsections (a) 
109.5   and (b) shall provide that: 
109.6      (1) each unit owner and secured party is an insured person 
109.7   under the policy with respect to liability arising out of the 
109.8   unit owner's interest in the common elements or membership in 
109.9   the association; 
109.10     (2) the insurer waives its right to subrogation under the 
109.11  policy against any unit owner of the condominium or members of 
109.12  the unit owner's household and against the association and 
109.13  members of the board of directors; 
109.14     (3) no act or omission by any unit owner or secured party, 
109.15  unless acting within the scope of authority on behalf of the 
109.16  association, shall void the policy or be a condition to recovery 
109.17  under the policy; and 
109.18     (4) if at the time of a loss under the policy there is 
109.19  other insurance in the name of a unit owner covering the same 
109.20  property covered by the policy, the association's policy is 
109.21  primary insurance. 
109.22     (e) Any loss covered by the property policy under 
109.23  subsection (a)(1) shall be adjusted by and with the association. 
109.24  The insurance proceeds for that loss shall be payable to the 
109.25  association, or to an insurance trustee designated by the 
109.26  association for that purpose.  The insurance trustee or the 
109.27  association shall hold any insurance proceeds in trust for unit 
109.28  owners and secured parties as their interests may appear.  The 
109.29  proceeds shall be disbursed first for the repair or restoration 
109.30  of the damaged common elements and units.  Unit owners and 
109.31  secured parties are not entitled to receive any portion of the 
109.32  proceeds unless there is a surplus of proceeds after the common 
109.33  elements and units have been completely repaired or restored or 
109.34  the common interest community is terminated. 
109.35     (f) Unit owners may obtain insurance for personal benefit 
109.36  in addition to insurance carried by the association. 
110.1      (g) An insurer that has issued an insurance policy under 
110.2   this section shall issue certificates or memoranda of insurance, 
110.3   upon request, to any unit owner or secured party.  The insurance 
110.4   may not be canceled until 60 days after notice of the proposed 
110.5   cancellation has been mailed to the association, each unit owner 
110.6   and each secured party for an obligation to whom certificates of 
110.7   insurance have been issued. 
110.8      (h) Any portion of the common interest community which is 
110.9   damaged or destroyed as the result of a loss covered by the 
110.10  association's insurance shall be promptly repaired or replaced 
110.11  by the association unless (i) the common interest community is 
110.12  terminated and the association votes not to repair or replace 
110.13  all or part thereof, (ii) repair or replacement would be illegal 
110.14  under any state or local health or safety statute or ordinance, 
110.15  or (iii) 80 percent of the unit owners, including every unit 
110.16  owner and holder of a first mortgage on a unit or assigned 
110.17  limited common element which will not be rebuilt, vote not to 
110.18  rebuild.  Subject to subsection (b), the cost of repair or 
110.19  replacement of the common elements in excess of insurance 
110.20  proceeds and reserves shall be paid as a common expense, and the 
110.21  cost of repair of a unit in excess of insurance proceeds shall 
110.22  be paid by the respective unit owner. 
110.23     (i) If less than the entire common interest community is 
110.24  repaired or replaced, (i) the insurance proceeds attributable to 
110.25  the damaged common elements shall be used to restore the damaged 
110.26  area to a condition compatible with the remainder of the common 
110.27  interest community, (ii) the insurance proceeds attributable to 
110.28  units and limited common elements which are not rebuilt shall be 
110.29  distributed to the owners of those units, including units to 
110.30  which the limited common elements were assigned, and the secured 
110.31  parties of those units, as their interests may appear, and (iii) 
110.32  the remainder of the proceeds shall be distributed to all the 
110.33  unit owners and secured parties as their interests may appear in 
110.34  proportion to their common element interest in the case of a 
110.35  condominium or in proportion to their common expense liability 
110.36  in the case of a planned community or cooperative. 
111.1      (j) If the unit owners and holders of first mortgages vote 
111.2   not to rebuild a unit, that unit's entire common element 
111.3   interest, votes in the association, and common expense liability 
111.4   are automatically reallocated upon the vote as if the unit had 
111.5   been condemned under section 515B.1-107, and the association 
111.6   shall promptly prepare, execute and record an amendment to the 
111.7   declaration reflecting the reallocations.  Notwithstanding the 
111.8   provisions of this subsection, if the common interest community 
111.9   is terminated, insurance proceeds not used for repair or 
111.10  replacement shall be distributed in the same manner as sales 
111.11  proceeds pursuant to section 515B.2-119. 
111.12     (k) The provisions of this section may be varied or waived 
111.13  in the case of a common interest community in which all units 
111.14  are restricted to nonresidential use. 
111.15     Sec. 22.  Minnesota Statutes 1998, section 515B.3-115, is 
111.16  amended to read: 
111.17     515B.3-115 [ASSESSMENTS FOR COMMON EXPENSES.] 
111.18     (a) The obligation of a unit owner to pay common expense 
111.19  assessments shall be as follows: 
111.20     (1) If a common expense assessment has not been levied, the 
111.21  declarant shall pay all accrued expenses of the common interest 
111.22  community.  
111.23     (2) If a common expense assessment has been levied, all 
111.24  unit owners including the declarant shall pay the assessments 
111.25  allocated to their units, except as otherwise permitted by this 
111.26  section.  Subject to the requirements of this section, a 
111.27  declarant may institute one, but not both, of the alternative 
111.28  assessment programs described in subsections (a)(1) and (a)(2), 
111.29  whereby: subject to subsection (b). 
111.30     (1) if a common expense assessment has been levied, the 
111.31  purchaser shall pay when due only the common expenses up to a 
111.32  specified limit guaranteed by the declarant, and the declarant 
111.33  shall pay all common expenses in excess of the limit; or 
111.34     (2) if a common expense assessment has been levied in a 
111.35  planned community, the declarant may limit its liability for 
111.36  assessments on units owned by it to 25 percent or any greater 
112.1   percentage of any assessment levied until such time as a 
112.2   certificate of occupancy is issued by the municipality in which 
112.3   the common interest community is located for the unit or units 
112.4   owned by the declarant.  
112.5      (3) Notwithstanding subsections (a)(1), (a)(2), and (b), if 
112.6   the association maintains the exteriors of the buildings 
112.7   constituting or contained within the units, that part of any 
112.8   assessment that is allocated to replacement reserves referred to 
112.9   in section 515B.3-114 shall be fully levied against a unit, 
112.10  including any unit owned by a declarant, on the earlier of 
112.11  substantial completion of the exterior of (i) the building 
112.12  containing the unit or (ii) any building located within the unit.
112.13     (b) The alternative assessment programs described in 
112.14  subsection (a)(1) or (2), shall be permitted only by including 
112.15  in the declaration, and the disclosure statement required by 
112.16  section 515B.4-102, provisions authorizing declarant to 
112.17  establish an alternative assessment program and a detailed 
112.18  explanation of the program, including at a minimum, as 
112.19  applicable, (i) the maximum amount of any guaranty on a monthly 
112.20  and aggregate basis with respect to each type of unit, (ii) the 
112.21  minimum and maximum duration of the alternative assessment 
112.22  program, (iii) the time when the declarant's authority to 
112.23  commence the alternative assessment program expires, which shall 
112.24  be no later than the expiration of any period of declarant 
112.25  control, and (iv) a statement that the alternative assessment 
112.26  program will have no effect on the level of services for items 
112.27  set forth in the association's budget, or a statement that no 
112.28  assurances are made in those regards. Subject to subsection 
112.29  (a)(3), if the declaration so provides, a declarant's liability, 
112.30  and the assessment lien, for assessments, other than replacement 
112.31  reserves, on any unit owned by the declarant may be limited to 
112.32  25 percent or any greater percentage of any assessment levied, 
112.33  until the unit or any building located in it is substantially 
112.34  completed.  Substantial completion shall be evidenced by a 
112.35  certificate of occupancy in any jurisdiction that issues the 
112.36  certificate. 
113.1      (c) Notwithstanding any disclosure in the declaration or 
113.2   disclosure statement, the declarant shall give the unit owners 
113.3   at least 60 days' prior notice of the termination of the 
113.4   alternative assessment program, subject to any minimum duration 
113.5   described in the declaration and disclosure statement. 
113.6      (d) Any alternative assessment program instituted by 
113.7   declarant shall not affect declarant's obligation to fund the 
113.8   reserves disclosed in the association's budget included in the 
113.9   disclosure statement or otherwise approved by the association. 
113.10     (e) Any representations or agreements made by a declarant 
113.11  with respect to an alternative assessment program shall be 
113.12  enforceable against declarant by any unit owner or by the 
113.13  association. 
113.14     (f) After an assessment has been levied by the association, 
113.15  assessments shall be levied at least annually, based upon a 
113.16  budget approved at least annually by the association. 
113.17     (g) (d) Except as modified by subsections (a)(1) and (2), 
113.18  (h), (i) and (j), all common expenses shall be assessed against 
113.19  all the units in accordance with the allocations established by 
113.20  the declaration pursuant to section 515B.2-108. 
113.21     (h) (e) Unless otherwise required by the declaration: 
113.22     (1) any common expense associated with the maintenance, 
113.23  repair, or replacement of a limited common element shall be 
113.24  assessed against the units to which that limited common element 
113.25  is assigned, equally, or in any other proportion the declaration 
113.26  provides; 
113.27     (2) any common expense or portion thereof benefiting fewer 
113.28  than all of the units may be assessed exclusively against the 
113.29  units benefited, equally, or in any other proportion the 
113.30  declaration provides; 
113.31     (3) the costs of insurance may be assessed in proportion to 
113.32  risk or coverage, and the costs of utilities may be assessed in 
113.33  proportion to usage; 
113.34     (4) reasonable attorneys fees and costs incurred by the 
113.35  association in connection with (i) the collection of assessments 
113.36  and, (ii) the enforcement of this chapter, the articles, bylaws, 
114.1   declaration, or rules and regulations, against a unit owner, may 
114.2   be assessed against the unit owner's unit; and 
114.3      (5) fees, charges, late charges, fines and interest may be 
114.4   assessed as provided in section 515B.3-116(a). 
114.5      (i) (f) Assessments levied under section 515B.3-116 to pay 
114.6   a judgment against the association may be levied only against 
114.7   the units in the common interest community at the time the 
114.8   judgment was entered, in proportion to their common expense 
114.9   liabilities. 
114.10     (j) (g) If any damage to the common elements or another 
114.11  unit is caused by the act or omission of any unit owner, or 
114.12  occupant of a unit, or their invitees, the association may 
114.13  assess the costs of repairing the damage exclusively against the 
114.14  unit owner's unit to the extent not covered by insurance. 
114.15     (k) (h) Subject to any shorter period specified by the 
114.16  declaration or bylaws, if any installment of an assessment 
114.17  becomes more than 60 days past due, then the association may, 
114.18  upon ten days' written notice to the unit owner, declare the 
114.19  entire amount of the assessment immediately due and payable in 
114.20  full. 
114.21     (l) (i) If common expense liabilities are reallocated for 
114.22  any purpose authorized by this chapter, common expense 
114.23  assessments and any installment thereof not yet due shall be 
114.24  recalculated in accordance with the reallocated common expense 
114.25  liabilities. 
114.26     Sec. 23.  Minnesota Statutes 1998, section 515B.3-116, is 
114.27  amended to read: 
114.28     515B.3-116 [LIEN FOR ASSESSMENTS.] 
114.29     (a) The association has a lien on a unit for any assessment 
114.30  levied against that unit from the time the assessment becomes 
114.31  due.  If an assessment is payable in installments, the full 
114.32  amount of the assessment is a lien from the time the first 
114.33  installment thereof becomes due.  Unless the declaration 
114.34  otherwise provides, fees, charges, late charges, fines and 
114.35  interest charges pursuant to section 515B.3-102(a)(10), (11) and 
114.36  (12) are liens, and are enforceable as assessments, under this 
115.1   section.  
115.2      (b) A lien under this section is prior to all other liens 
115.3   and encumbrances on a unit except (i) liens and encumbrances 
115.4   recorded before the declaration and, in a cooperative, liens and 
115.5   encumbrances which the association creates, assumes, or takes 
115.6   subject to, (ii) any first mortgage on encumbering the fee 
115.7   simple interest in the unit, or, in a cooperative, any first 
115.8   security interest encumbering only the unit owner's interest in 
115.9   the unit, and (iii) liens for real estate taxes and other 
115.10  governmental assessments or charges against the unit.  If a 
115.11  first mortgage on a unit is foreclosed, the first mortgage was 
115.12  recorded after June 1, 1994, and no owner redeems during the 
115.13  owner's period of redemption provided by chapter 580, 581, or 
115.14  582, the holder of the sheriff's certificate of sale from the 
115.15  foreclosure of the first mortgage shall take title to the unit 
115.16  subject to a lien in favor of the association for unpaid 
115.17  assessments for common expenses levied pursuant to section 
115.18  515B.3-115(a), (h)(1) to (3), (i), and (l) which became due, 
115.19  without acceleration, during the six months immediately 
115.20  preceding the first day following the end of the owner's period 
115.21  of redemption.  If a first security interest encumbering a unit 
115.22  owner's interest in a cooperative unit which is personal 
115.23  property is foreclosed, the secured party or the purchaser at 
115.24  the sale shall take title to the unit subject to unpaid 
115.25  assessments for common expenses levied pursuant to section 
115.26  515B.3-115(a), (h)(1) to (3), (i), and (l) which became due, 
115.27  without acceleration, during the six months immediately 
115.28  preceding the first day following either the date of sale 
115.29  pursuant to section 336.9-504 or the date on which the 
115.30  obligation of the unit owner is discharged pursuant to section 
115.31  336.9-505.  This subsection shall not affect the priority of 
115.32  mechanics' liens. 
115.33     (c) Recording of the declaration constitutes record notice 
115.34  and perfection of any lien under this section, and no further 
115.35  recordation of any notice of or claim for the lien is required. 
115.36     (d) Proceedings to enforce an assessment lien shall be 
116.1   instituted within three years after the last installment of the 
116.2   assessment becomes payable, or shall be barred. 
116.3      (e) The unit owner of a unit at the time an assessment is 
116.4   due shall be personally liable to the association for payment of 
116.5   the assessment levied against the unit.  If there are multiple 
116.6   owners of the unit, they shall be jointly and severally liable. 
116.7      (f) This section does not prohibit actions to recover sums 
116.8   for which subsection (a) creates a lien nor prohibit an 
116.9   association from taking a deed in lieu of foreclosure.  The 
116.10  commencement of an action to recover the sums is not an election 
116.11  of remedies if it is dismissed before commencement of 
116.12  foreclosure of the lien provided for by this section.  
116.13     (g) The association shall furnish to a unit owner or the 
116.14  owner's authorized agent upon written request of the unit owner 
116.15  or the authorized agent a statement setting forth the amount of 
116.16  unpaid assessments currently levied against the owner's unit.  
116.17  If the unit owner's interest is real estate, the statement shall 
116.18  be in recordable form.  The statement shall be furnished within 
116.19  ten business days after receipt of the request and is binding on 
116.20  the association and every unit owner. 
116.21     (h) The association's lien may be foreclosed as provided in 
116.22  this subsection. 
116.23     (1) In a condominium or planned community, the 
116.24  association's lien may be foreclosed in a like manner as a 
116.25  mortgage containing a power of sale pursuant to chapter 580, or 
116.26  by action pursuant to chapter 581.  The association shall have a 
116.27  power of sale to foreclose the lien pursuant to chapter 580. 
116.28     (2) In a cooperative whose unit owners' interests are real 
116.29  estate, the association's lien shall be foreclosed in a like 
116.30  manner as a mortgage on real estate as provided in paragraph (1).
116.31     (3) In a cooperative whose unit owners' interests in the 
116.32  units are personal property, the association's lien shall be 
116.33  foreclosed in a like manner as a security interest under article 
116.34  9 of chapter 336.  In any disposition pursuant to section 
116.35  336.9-504 or retention pursuant to section 336.9-505, the rights 
116.36  of the parties shall be the same as those provided by law, 
117.1   except (i) notice of sale, disposition, or retention shall be 
117.2   served on the unit owner 90 days prior to sale, disposition, or 
117.3   retention, (ii) the association shall be entitled to its 
117.4   reasonable costs and attorney fees not exceeding the amount 
117.5   provided by section 582.01, subdivision 1a, (iii) the amount of 
117.6   the association's lien shall be deemed to be adequate 
117.7   consideration for the unit subject to disposition or retention, 
117.8   notwithstanding the value of the unit, and (iv) the notice of 
117.9   sale, disposition, or retention shall contain the following 
117.10  statement in capital letters with the name of the association or 
117.11  secured party filled in: 
117.12     "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of 
117.13  association or secured party) HAS BEGUN PROCEEDINGS UNDER 
117.14  MINNESOTA STATUTES, CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST 
117.15  IN YOUR UNIT FOR THE REASON SPECIFIED IN THIS NOTICE.  YOUR 
117.16  INTEREST IN YOUR UNIT WILL TERMINATE 90 DAYS AFTER SERVICE OF 
117.17  THIS NOTICE ON YOU UNLESS BEFORE THEN: 
117.18     (a) THE PERSON AUTHORIZED BY (fill in the name of 
117.19  association or secured party) AND DESCRIBED IN THIS NOTICE TO 
117.20  RECEIVE PAYMENTS RECEIVES FROM YOU: 
117.21     (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS 
117.22     (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS 
117.23     (3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR 
117.24  INCURRED; PLUS 
117.25     (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO 
117.26  (fill in name of association or secured party) AFTER THE DATE OF 
117.27  THIS NOTICE; OR 
117.28     (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 
117.29  FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR 
117.30  CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 
117.31  SETTLEMENT.  YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 
117.32  GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES. 
117.33     IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 
117.34  WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP 
117.35  RIGHTS IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU 
117.36  WILL LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL 
118.1   LOSE YOUR RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR 
118.2   RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND 
118.3   YOU WILL BE EVICTED.  IF YOU HAVE ANY QUESTIONS ABOUT THIS 
118.4   NOTICE, CONTACT AN ATTORNEY IMMEDIATELY." 
118.5      (4) In any foreclosure pursuant to chapter 580, 581, or 
118.6   582, the rights of the parties shall be the same as those 
118.7   provided by law, except (i) the period of redemption for unit 
118.8   owners shall be six months from the date of sale or a lesser 
118.9   period authorized by law, (ii) in a foreclosure by advertisement 
118.10  under chapter 580, the foreclosing party shall be entitled to 
118.11  costs and disbursements of foreclosure, and attorneys fees in 
118.12  the amount provided by authorized by the declaration or bylaws, 
118.13  notwithstanding the provisions of section 582.01, 
118.14  subdivision subdivisions 1 and 1a, (iii) in a foreclosure by 
118.15  action under chapter 581, the foreclosing party shall be 
118.16  entitled to costs and disbursements of foreclosure and attorneys 
118.17  fees as the court shall determine, and (iv) the amount of the 
118.18  association's lien shall be deemed to be adequate consideration 
118.19  for the unit subject to foreclosure, notwithstanding the value 
118.20  of the unit. 
118.21     (i) If a holder of a sheriff's certificate of sale, prior 
118.22  to the expiration of the period of redemption, pays any past due 
118.23  or current assessments, or any other charges lienable as 
118.24  assessments, with respect to the unit described in the sheriff's 
118.25  certificate, then the amount paid shall be a part of the sum 
118.26  required to be paid to redeem under section 582.03. 
118.27     (j) In a cooperative, following foreclosure, the 
118.28  association may bring an action for unlawful detainer against 
118.29  the unit owner and any persons in possession of the unit, and in 
118.30  that case section 504.02 shall not apply. 
118.31     (k) An association may assign its lien rights in the same 
118.32  manner as any other secured party. 
118.33     Sec. 24.  Minnesota Statutes 1998, section 515B.3-121, is 
118.34  amended to read: 
118.35     515B.3-121 [ACCOUNTING CONTROLS.] 
118.36     (a) Subject to any additional or greater requirements set 
119.1   forth in the declaration or bylaws, a review of the 
119.2   association's financial statements shall be made at the end of 
119.3   the association's fiscal year, unless prior to 30 60 days after 
119.4   the end of that fiscal year, at a meeting or by mailed ballot, 
119.5   unit owners of units to which at least 30 percent of the votes 
119.6   in the association are allocated vote to waive the review 
119.7   requirement for that fiscal year.  A waiver vote shall not apply 
119.8   to more than one fiscal year, and shall not affect the board's 
119.9   authority to cause a review or audit to be made.  The reviewed 
119.10  financial statements shall be delivered to all members of the 
119.11  association within 120 180 days after the end of the 
119.12  association's fiscal year. 
119.13     (b) The review shall be made by a licensed, independent 
119.14  certified public accountant.  A licensed, independent certified 
119.15  public accountant means an accountant who (i) is not an employee 
119.16  of the declarant or its affiliates, (ii) is professionally 
119.17  independent of the control of the declarant or its affiliates, 
119.18  (iii) is licensed by the Minnesota state board of accountancy 
119.19  and (iv) satisfies the tests for independence as promulgated by 
119.20  the American Institute of Certified Public Accountants. 
119.21     (c) Where the financial statements are prepared by an 
119.22  independent certified public accountant, they shall be prepared 
119.23  in accordance with generally accepted accounting principles as 
119.24  established from time to time by the American Institute of 
119.25  Certified Public Accountants, and shall be reviewed in 
119.26  accordance with standards for accounting and review services.  
119.27  In such case, the financial statements shall be presented on the 
119.28  full accrual basis using an accounting format that separates 
119.29  operating activity from replacement reserve activity. 
119.30     Sec. 25.  Minnesota Statutes 1998, section 515B.4-101, is 
119.31  amended to read: 
119.32     515B.4-101 [APPLICABILITY; DELIVERY OF DISCLOSURE 
119.33  STATEMENT.] 
119.34     (a) Sections 515B.4-101 through 515B.4-118 apply to all 
119.35  units subject to this chapter, except as provided in subsection 
119.36  (c) or as modified or waived by agreement of purchasers of a 
120.1   unit which is restricted to nonresidential use. 
120.2      (b) Subject to subsection subsections (a) and (c), a 
120.3   declarant who offers a unit to a purchaser shall deliver to the 
120.4   purchaser a current disclosure statement which complies with the 
120.5   requirements of section 515B.4-102.  The disclosure statement 
120.6   shall include any material amendments to the disclosure 
120.7   statement made prior to the conveyance of the unit to the 
120.8   purchaser.  The declarant shall be liable to the purchaser to 
120.9   whom it delivered the disclosure statement for any false or 
120.10  misleading statement set forth therein or for any omission of a 
120.11  material fact therefrom. 
120.12     (c) Neither a disclosure statement nor a resale disclosure 
120.13  certificate need be prepared or delivered in the case of: 
120.14     (1) a gratuitous transfer; 
120.15     (2) a transfer pursuant to a court order; 
120.16     (3) a transfer to a government or governmental agency; 
120.17     (4) a transfer to a secured party by foreclosure or deed in 
120.18  lieu of foreclosure; 
120.19     (5) an option to purchase a unit, until exercised; 
120.20     (6) a transfer to a person who "controls" or is "controlled 
120.21  by," the grantor as those terms are defined with respect to a 
120.22  declarant under section 515B.1-103(2); 
120.23     (7) a transfer by inheritance; 
120.24     (8) a transfer of special declarant rights under section 
120.25  515B.3-104; or 
120.26     (9) a transfer in connection with a change of form of 
120.27  common interest community under section 515B.2-123. 
120.28     (d) A purchase agreement for a unit shall contain the 
120.29  following notice:  "The following notice is required by 
120.30  Minnesota Statutes.  The purchaser is entitled to receive a 
120.31  disclosure statement or resale disclosure certificate, as 
120.32  applicable.  The disclosure statement or resale disclosure 
120.33  certificate contains important information regarding the common 
120.34  interest community and the purchaser's cancellation rights." 
120.35     Sec. 26.  Minnesota Statutes 1998, section 515B.4-102, is 
120.36  amended to read: 
121.1      515B.4-102 [DISCLOSURE STATEMENT; GENERAL PROVISIONS.] 
121.2      (a) A disclosure statement shall fully and accurately 
121.3   disclose: 
121.4      (1) the name and, if available, the number of the common 
121.5   interest community; 
121.6      (2) the name and principal address of the declarant; 
121.7      (3) the number of units in the common interest community 
121.8   and a statement that the common interest community is either a 
121.9   condominium, cooperative, or planned community; 
121.10     (4) a general description of the common interest community, 
121.11  including, to the extent possible at a minimum, (i) the types 
121.12  and number of buildings, (ii) the number of dwellings per 
121.13  building, (iii) the type of construction, (iv) whether the 
121.14  common interest community involves new construction or 
121.15  rehabilitation, (v) whether any building was wholly or partially 
121.16  occupied, for any purpose, before it was added to the common 
121.17  interest community and the nature of the occupancy, and (vi) a 
121.18  general description of any roads, trails, or utilities that are 
121.19  located on the common elements and that the association or a 
121.20  master association will be required to maintain; 
121.21     (5) declarant's schedule of commencement and completion of 
121.22  construction of any buildings and other improvements that the 
121.23  declarant is obligated to build pursuant to section 515B.4-117; 
121.24     (6) any expenses or services, not reflected in the budget, 
121.25  that the declarant pays or provides, which may become a common 
121.26  expense of the association; the projected common expense 
121.27  attributable to each of those expenses or services for the 
121.28  association; and a detailed an explanation of any 
121.29  alternative declarant's limited assessment program established 
121.30  pursuant to liability under section 515B.3-115, subsection (b) 
121.31  and (d); 
121.32     (7) any initial or special fee due from the purchaser to 
121.33  the declarant or the association at closing, together with a 
121.34  description of the purpose and method of calculating the fee; 
121.35     (8) identification of any liens, defects, or encumbrances 
121.36  which will continue to affect the title to a unit or to any real 
122.1   property owned by the association after the contemplated 
122.2   conveyance; 
122.3      (9) a description of any financing offered or arranged by 
122.4   the declarant; 
122.5      (10) a statement as to whether the common interest 
122.6   community has received application has been made for any final 
122.7   project approvals for the common interest community from the 
122.8   Federal National Mortgage Association (FNMA), Federal Home Loan 
122.9   Mortgage Corporation (FHLMC), Department of Housing and Urban 
122.10  Development (HUD) or Department of Veterans Affairs (VA), and 
122.11  which, if any, such final approvals have been received; 
122.12     (11) the terms of any warranties provided by the declarant, 
122.13  including copies of chapter 327A, and sections 515B.4-112 
122.14  through 515B.4-115, and a statement of any limitations on the 
122.15  enforcement of warranties or on damages; 
122.16     (12) a statement that:  (i) within 15 ten days after the 
122.17  receipt of a disclosure statement, a purchaser may cancel any 
122.18  contract for the purchase of a unit from a declarant; provided, 
122.19  that the right to cancel terminates upon the purchaser's 
122.20  voluntary acceptance of a conveyance of the unit from the 
122.21  declarant; (ii) if a purchaser receives a disclosure statement 
122.22  more than 15 ten days before signing a purchase agreement, the 
122.23  purchaser cannot cancel the purchase agreement; and (iii) if a 
122.24  declarant obligated to deliver a disclosure statement fails to 
122.25  deliver a disclosure statement which substantially complies with 
122.26  this chapter to a purchaser to whom a unit is conveyed, the 
122.27  declarant shall be liable to the purchaser as provided in 
122.28  section 515B.4-106(d); 
122.29     (13) a statement disclosing to the extent of the 
122.30  declarant's or an affiliate of a declarant's actual knowledge, 
122.31  after reasonable inquiry, any unsatisfied judgments or lawsuits 
122.32  to which the association is a party, and the status of those 
122.33  lawsuits which are material to the common interest community or 
122.34  the unit being purchased; 
122.35     (14) a statement that any earnest money paid in connection 
122.36  with the purchase of a unit will be held in an escrow account 
123.1   until closing, or until the termination of the purchase 
123.2   agreement, and (i) describing the conditions under which earnest 
123.3   money will be held in and disbursed from the escrow account, as 
123.4   set forth in section 515B.4-109, (ii) that the earnest money 
123.5   will be returned to the purchaser if the purchaser cancels the 
123.6   contract pursuant to section 515B.4-106, together with and (iii) 
123.7   setting forth the name and address of the escrow agent; 
123.8      (15) a detailed description of the insurance coverage 
123.9   provided by the association for the benefit of unit owners, 
123.10  including any fixtures, decorating items or construction a 
123.11  statement as to which, if any, of the items within a unit which 
123.12  are not required to be referred to in section 515B.3-113, 
123.13  subsection (b), are insured by the association; 
123.14     (16) any current or expected fees or charges, other than 
123.15  assessments for common expenses, to be paid by unit owners for 
123.16  the use of the common elements or any other improvements or 
123.17  facilities; 
123.18     (17) the financial arrangements, including any 
123.19  contingencies, which have been made to provide for completion of 
123.20  all improvements that the declarant is obligated to build 
123.21  pursuant to section 515B.4-118, or a statement that no such 
123.22  arrangements have been made; 
123.23     (18) in a cooperative:  (i) whether the unit owners will be 
123.24  entitled for federal and state tax purposes, to deduct payments 
123.25  made by the association for real estate taxes and interest paid 
123.26  to the holder of a security interest encumbering the 
123.27  cooperative; and (ii) a statement as to the effect on the unit 
123.28  owners if the association fails to pay real estate taxes or 
123.29  payments due the holder of a security interest encumbering the 
123.30  cooperative; 
123.31     (19) a statement:  (i) that real estate taxes for the unit 
123.32  or any real property owned by the association are not delinquent 
123.33  or, if there are delinquent real estate taxes, describing the 
123.34  property for which the taxes are delinquent;, stating the amount 
123.35  of the delinquent taxes, interest and penalties;, and stating 
123.36  the years for which taxes are delinquent;, and (ii) setting 
124.1   forth the amount of the real estate taxes, including the amount 
124.2   of any special assessment certified for payment with the real 
124.3   estate taxes, due and payable with respect to the unit for which 
124.4   the disclosure statement is given in the year in which the 
124.5   disclosure statement is given, if real estate taxes have been 
124.6   separately assessed against the unit; 
124.7      (20) if the association or the purchaser of the unit will 
124.8   be a member of a master association, a statement to that effect, 
124.9   and all of the following information with respect to the master 
124.10  association:  (i) a copy of the declaration, if any, (other than 
124.11  any CIC plat), the articles of incorporation, bylaws, and rules 
124.12  and regulations for the master association, together with any 
124.13  amendments thereto; (ii) the name, address and general 
124.14  description of the master association, including a general 
124.15  description of any other association, unit owners, or other 
124.16  persons which are or may become members, and a general 
124.17  description of the relationship between the master association 
124.18  and its members; (iii) a description of any nonresidential use 
124.19  permitted on any property subject to the master association; 
124.20  (iv) a statement as to the estimated maximum number of 
124.21  associations, unit owners or other persons which may become 
124.22  members of the master association, and the degree and period of 
124.23  control of the master association by a declarant or other 
124.24  person; (v) a description of, and the schedule of commencement 
124.25  and completion of, any buildings and other improvements that the 
124.26  master association, a declarant or other person, as the case may 
124.27  be, is obligated to build in which the members of the master 
124.28  association have or may have an interest any facilities intended 
124.29  for the benefit of the members of the master association and not 
124.30  located on property owned or controlled by a member; (vi) the 
124.31  financial arrangements, including any contingencies, which have 
124.32  been made to provide for completion of the buildings and 
124.33  improvements facilities referred to in subsection (v), or a 
124.34  statement that no arrangements have been made; (vii) any current 
124.35  balance sheet of the master association, which shall include 
124.36  with respect to the master association those items set forth in 
125.1   section 515B.4-102(a)(23)(i) to (iv), and a projected or current 
125.2   annual budget, as applicable, which budget shall include with 
125.3   respect to the master association those items in paragraph (23), 
125.4   clauses (i) through (iv); (viii) a description of any expenses 
125.5   or services provided by the master association to its members 
125.6   and any current or projected assessments attributable to the 
125.7   members of the master association for the services not reflected 
125.8   in the budget, paid for or provided by a declarant or a person 
125.9   executing the master declaration, which may become an expense of 
125.10  the master association in the future; (ix) a description of any 
125.11  powers delegated to and accepted by the master association 
125.12  pursuant to section 515B.2-121(c)(f)(2); (x) identification of 
125.13  any liens, defects or encumbrances on or affecting that will 
125.14  continue to affect title to property in which the members of the 
125.15  master association have or may have any interest owned or 
125.16  operated by the master association for the benefit of its 
125.17  members; (xi) the terms of any warranties provided by any person 
125.18  for construction of buildings or other improvements facilities 
125.19  in which the members of the master association have or may have 
125.20  an interest by virtue of membership in the master association, 
125.21  and any known defects in the buildings or other improvements 
125.22  facilities which would violate the standards described in 
125.23  section 515B.4-112(b); (xii) a statement disclosing, to the 
125.24  extent of the declarant's knowledge, after inquiry of the master 
125.25  association, any unsatisfied judgments or lawsuits to which the 
125.26  master association is a party, and the status of those lawsuits 
125.27  which are material to the master association; (xiii) a 
125.28  description of any insurance coverage provided for the benefit 
125.29  of its members by the master association; and (xiv) any current 
125.30  or expected fees or charges, other than assessments by the 
125.31  master association, to be paid by members of the master 
125.32  association for the use of any improvements, facilities or 
125.33  amenities in which they have or may have an interest intended 
125.34  for the benefit of the members; 
125.35     (21) a statement as to whether the unit will be 
125.36  substantially completed at the time of conveyance to a 
126.1   purchaser, and if not substantially completed, who is 
126.2   responsible to complete and pay for the construction of the 
126.3   unit; 
126.4      (22) a copy of the declaration and any amendments thereto, 
126.5   (exclusive of the CIC plat), any other recorded covenants, 
126.6   conditions restrictions, and reservations affecting the common 
126.7   interest community; the articles of incorporation, bylaws and 
126.8   any rules or regulations of the association; any agreement 
126.9   excluding or modifying any implied warranties; any agreement 
126.10  reducing the statute of limitations for the enforcement of 
126.11  warranties; any contracts or leases to be signed by purchaser at 
126.12  closing; and a brief narrative description of any contracts or 
126.13  leases that are or may be subject to cancellation by the 
126.14  association under section 515B.3-105; and 
126.15     (23) any current balance sheet for the association; a 
126.16  projected annual budget for the association for the year in 
126.17  which the first unit is conveyed to a purchaser, and thereafter 
126.18  the current annual budget of the association; and a statement 
126.19  identifying the party responsible for the preparation of the 
126.20  budget.  The budget shall include, without limitation:  (i) a 
126.21  statement of the amount included in the budget as a reserve for 
126.22  maintenance, repair and replacement; (ii) a statement of any 
126.23  other reserves; (iii) the projected common expense for each 
126.24  category of expenditures for the association; and (iv) the 
126.25  projected monthly common expense assessment for each type of 
126.26  unit. 
126.27     (b) A declarant shall promptly amend the disclosure 
126.28  statement to reflect any material change in the information 
126.29  required by this chapter. 
126.30     (c) The master association, within ten days after a request 
126.31  by a declarant, or any holder of declarant rights, or the 
126.32  authorized representative of any of them, shall furnish the 
126.33  information required to be provided by subsection (a)(20).  A 
126.34  declarant or other person who provides information pursuant to 
126.35  subsection (a)(20) is not liable to the purchaser for any 
126.36  erroneous information if the declarant or other person:  (i) is 
127.1   not an affiliate of or related in any way to a person authorized 
127.2   to appoint the master association board pursuant to section 
127.3   515B.2-121(h)(c)(3), and (ii) has no actual knowledge that the 
127.4   information is incorrect. 
127.5      Sec. 27.  Minnesota Statutes 1998, section 515B.4-106, is 
127.6   amended to read: 
127.7      515B.4-106 [PURCHASER'S RIGHT TO CANCEL.] 
127.8      (a) A person required to deliver a disclosure statement 
127.9   pursuant to section 515B.4-101(b) shall provide at least one of 
127.10  the purchasers of the unit with a copy of the disclosure 
127.11  statement and all amendments thereto before conveyance of the 
127.12  unit.  If a purchaser is not given a disclosure statement more 
127.13  than 15 ten days before execution of the purchase agreement, the 
127.14  purchaser may, before conveyance, cancel the purchase agreement 
127.15  within 15 ten days after first receiving the disclosure 
127.16  statement. If a purchaser is given the disclosure statement more 
127.17  than 15 ten days before execution of a the purchase agreement 
127.18  for the unit, the purchaser may not cancel the purchase 
127.19  agreement pursuant to this section.  Except as expressly 
127.20  provided in this chapter, the ten-day rescission period cannot 
127.21  be waived. 
127.22     (b) If an amendment to the disclosure statement materially 
127.23  and adversely affects a purchaser, then the purchaser shall have 
127.24  15 days after delivery of the amendment to cancel the purchase 
127.25  agreement in accordance with this section. 
127.26     (c) If a purchaser elects to cancel a purchase agreement 
127.27  pursuant to this section, the purchaser may do so by giving 
127.28  notice thereof pursuant to section 515B.1-115.  Cancellation is 
127.29  without penalty, and all payments made by the purchaser before 
127.30  cancellation shall be refunded promptly.  Notwithstanding 
127.31  anything in this section to the contrary, the purchaser's 
127.32  cancellation rights under this section terminate upon the 
127.33  purchaser's acceptance of a conveyance of the unit. 
127.34     (d) If a declarant obligated to deliver a disclosure 
127.35  statement fails to deliver to the purchaser a disclosure 
127.36  statement which substantially complies with this chapter, the 
128.1   declarant shall be liable to the purchaser in the amount of 
128.2   $1,000, in addition to any damages or other amounts recoverable 
128.3   under this chapter or otherwise.  Any action brought under this 
128.4   subsection shall be commenced within the time period specified 
128.5   in section 515B.4-115, subsection (a). 
128.6      Sec. 28.  Minnesota Statutes 1998, section 515B.4-107, is 
128.7   amended to read: 
128.8      515B.4-107 [RESALE OF UNITS.] 
128.9      (a) In the event of a resale of a unit by a unit owner 
128.10  other than a declarant, unless exempt under section 
128.11  515B.4-101(c), the unit owner shall furnish to a purchaser, 
128.12  before execution of any purchase agreement for a unit or 
128.13  otherwise before conveyance, the following documents relating to 
128.14  the association or to the master association, if applicable: 
128.15     (1) copies of the declaration (other than any CIC plat), 
128.16  the articles of incorporation and bylaws, any rules and 
128.17  regulations, and any amendments thereto; 
128.18     (2) the organizational and operating documents relating to 
128.19  the master association, if any; and 
128.20     (3) a resale disclosure certificate from the association 
128.21  dated not more than 90 days prior to the date of the purchase 
128.22  agreement or the date of conveyance, whichever is earlier, 
128.23  containing the information set forth in subsection (b). 
128.24     (b) The resale disclosure certificate shall contain the 
128.25  following information: 
128.26     (1) a statement disclosing any right of first refusal or 
128.27  other restraint on the free alienability of the unit contained 
128.28  in the declaration, articles of incorporation, bylaws, rules and 
128.29  regulations, or any amendment thereof; 
128.30     (2) a statement setting forth the amount of the monthly 
128.31  installments of common expense assessments, including special 
128.32  assessments, if any, and the amount of any due and unpaid 
128.33  regular or special assessments, fines or other charges payable 
128.34  with respect to the unit;: 
128.35     (i) the installments of annual common expense assessments 
128.36  payable with respect to the unit, and the payment schedule; 
129.1      (ii) the installments of special common expense 
129.2   assessments, if any, payable with respect to the unit, and the 
129.3   payment schedule; and 
129.4      (iii) any plan approved by the association for levying 
129.5   certain common expense assessments against fewer than all the 
129.6   units pursuant to section 515B.3-115, subsection (h), and the 
129.7   amount and payment schedule for any such common expenses payable 
129.8   with respect to the unit; 
129.9      (3) a statement of any fees or charges other than 
129.10  assessments payable by unit owners; 
129.11     (4) a statement of any capital extraordinary expenditures 
129.12  approved by the association, and not yet assessed, for the 
129.13  current and two succeeding fiscal years; 
129.14     (5) a statement of the amount of any reserves for 
129.15  maintenance, repair or replacement and of any portions of those 
129.16  reserves designated by the association for any specified 
129.17  projects or uses; 
129.18     (6) the most recent regularly prepared balance sheet and 
129.19  income and expense statement of the association; 
129.20     (7) the current budget of the association; 
129.21     (8) a statement of any unsatisfied judgments against the 
129.22  association and the status of any pending suits in which the 
129.23  association is party; 
129.24     (9) a detailed description of the insurance coverage 
129.25  provided for the benefit of unit owners, including any fixtures, 
129.26  decorating items or construction items within a unit which are 
129.27  not required to be a statement as to which, if any, of the items 
129.28  referred to in section 515B.3-113, subsection (b), are insured 
129.29  by the association; 
129.30     (10) a statement as to whether the board has notified the 
129.31  unit owner (i) that any alterations or improvements to the unit 
129.32  or to the limited common elements assigned thereto violate any 
129.33  provision of the declaration or (ii) that the unit is in 
129.34  violation of any governmental statute, ordinance, code or 
129.35  regulation; and 
129.36     (11) a statement of the remaining term of any leasehold 
130.1   estate affecting the common interest community and the 
130.2   provisions governing any extension or renewal thereof; and 
130.3      (12) any other matters affecting the unit or the unit 
130.4   owner's obligations with respect to the unit which the 
130.5   association deems material. 
130.6      (c) If the association is subject to a master association 
130.7   to which has been delegated the association's powers under 
130.8   section 515B.3-102(a)(2), then the financial information 
130.9   required to be disclosed under subsection (b) may be disclosed 
130.10  on a consolidated basis. 
130.11     (d) The association, within ten days after a request by a 
130.12  unit owner, or the unit owner's authorized representative, shall 
130.13  furnish the certificate required in subsection (a).  The 
130.14  association may charge a reasonable fee for furnishing the 
130.15  certificate and any association documents related thereto.  A 
130.16  unit owner providing a certificate pursuant to subsection (a) is 
130.17  not liable to the purchaser for any erroneous information 
130.18  provided by the association and included in the certificate. 
130.19     (e) A purchaser is not liable for any unpaid common expense 
130.20  assessments, including special assessments, if any, not set 
130.21  forth in the certificate required in subsection (a).  A 
130.22  purchaser is not liable for the amount by which the annual or 
130.23  special assessments exceed the amount of annual or special 
130.24  assessments stated in the certificate for assessments payable in 
130.25  the year in which the certificate was given, except to the 
130.26  extent of any increases subsequently approved in accordance with 
130.27  the declaration or bylaws.  A unit owner is not liable to a 
130.28  purchaser for the failure of the association to provide the 
130.29  certificate, or a delay by the association in providing the 
130.30  certificate in a timely manner. 
130.31     Sec. 29.  Minnesota Statutes 1998, section 515B.4-108, is 
130.32  amended to read: 
130.33     515B.4-108 [PURCHASER'S RIGHT TO CANCEL RESALE.] 
130.34     (a) Unless a purchaser is given the information required to 
130.35  be delivered by section 515B.4-107 more than 15 ten days prior 
130.36  to the execution of the purchase agreement for the unit the 
131.1   purchaser may, prior to the conveyance, cancel the purchase 
131.2   agreement within 15 ten days after receiving the 
131.3   information.  Except as expressly provided in this chapter, the 
131.4   ten-day rescission period cannot be waived. 
131.5      (b) A purchaser who elects to cancel a purchase agreement 
131.6   pursuant to subsection (a), may do so by hand delivering notice 
131.7   thereof or mailing notice by postage prepaid United States mail 
131.8   to the seller or the agent.  Cancellation is without penalty and 
131.9   all payments made by the purchaser shall be refunded promptly. 
131.10     Sec. 30.  Minnesota Statutes 1998, section 515B.4-111, is 
131.11  amended to read: 
131.12     515B.4-111 [CONVERSION PROPERTY.] 
131.13     (a) A declarant of a common interest community containing 
131.14  conversion property, shall give the occupants of residential 
131.15  units in the conversion property notice of the conversion no 
131.16  later than 120 days before they are required to vacate.  A unit 
131.17  owner of a unit occupied for residential use in a common 
131.18  interest community containing conversion property shall not, for 
131.19  a period of one year following the recording of the declaration 
131.20  creating the common interest community, require any occupant of 
131.21  the unit to vacate the unit unless the unit owner gives notice 
131.22  to the occupant in the manner described in this section.  The 
131.23  notice shall be given no later than 120 days before the occupant 
131.24  is required to vacate the unit.  The notice shall be given by 
131.25  sufficient as to all occupants of a unit if it is 
131.26  hand delivering delivered or mailing one notice to each 
131.27  residential unit mailed to the unit to be vacated, addressed to 
131.28  the occupants thereof.  If the holder of the lessee's interest 
131.29  in the unit has given the unit owner of the building an address 
131.30  different than that of the unit, then the notice shall also be 
131.31  given to the holder of the lessee's interest at the designated 
131.32  address.  The notice shall satisfy the following requirements: 
131.33     (1) The notice shall set forth generally the rights 
131.34  conferred by this section. 
131.35     (2) The notice shall have attached to the notice intended 
131.36  for the holder of the lessee's interest a form of purchase 
132.1   agreement setting forth the terms of sale contemplated by 
132.2   subsection (d) and a statement of any significant restrictions 
132.3   on the use and occupancy of the unit to be imposed by the 
132.4   declarant. 
132.5      (3) The notice shall state that the occupants of the 
132.6   residential unit may demand to be given 60 additional days 
132.7   before being required to vacate, if any of them, or any person 
132.8   residing with them, is (i) 62 years of age or older, (ii) a 
132.9   person with a disability as defined in section 268A.01, or (iii) 
132.10  a minor child on the date the notice is given.  This demand must 
132.11  be in writing, contain reasonable proof of qualification, and be 
132.12  given to the declarant within 30 days after the notice of 
132.13  conversion is delivered or mailed. 
132.14     (4) The notice shall be contained in an envelope upon which 
132.15  the following shall be boldly printed: "Notice of Conversion." 
132.16     (b) No occupant of a unit in a conversion 
132.17  property Notwithstanding subsection (a), an occupant may be 
132.18  required to vacate a unit upon less than 120 days' notice, 
132.19  except by reason of nonpayment of rent, utilities or other 
132.20  monetary obligations, violations of law, waste, or conduct that 
132.21  disturbs other tenants' occupants' peaceful enjoyment of the 
132.22  premises.  Nor may The terms of the tenancy may not be altered 
132.23  during that the notice period, except that a tenant the holder 
132.24  of the lessee's interest or other party in possession may vacate 
132.25  and terminate the lease tenancy upon one month's written notice 
132.26  to the declarant.  Nothing in this section prevents 
132.27  the declarant unit owner and any occupant from agreeing to an 
132.28  extension of the tenancy a right of occupancy on a 
132.29  month-to-month basis beyond the 120-day notice period, or to an 
132.30  earlier termination of the tenancy right of occupancy. 
132.31     (c) No repair work or remodeling may be commenced or 
132.32  undertaken in the occupied units or common areas of the building 
132.33  during the notice period, unless reasonable precautions are 
132.34  taken to ensure the safety and security of the occupants. 
132.35     (d) For 60 days after delivery or mailing of the notice 
132.36  described in subsection (a), the holder of the lessee's interest 
133.1   in the unit on the date the notice is mailed or delivered shall 
133.2   have an option to purchase that unit on the terms set forth in 
133.3   the purchase agreement attached to the notice.  The purchase 
133.4   agreement shall contain no terms or provisions which violate any 
133.5   state or federal law relating to discrimination in housing.  If 
133.6   the holder of the lessee's interest fails to purchase the unit 
133.7   during that 60-day period, the declarant unit owner may not 
133.8   offer to dispose of an interest in that unit during the 
133.9   following 180 days at a price or on terms more favorable to the 
133.10  offeree than the price or terms offered to the holder.  This 
133.11  subsection does not apply to any unit in a conversion building 
133.12  if that unit will be restricted exclusively to nonresidential 
133.13  use or if the boundaries of the converted unit do not 
133.14  substantially conform to the boundaries of the residential unit 
133.15  before conversion. 
133.16     (e) If a declarant unit owner, in violation of subsection 
133.17  (b), conveys a unit to a purchaser for value who has no 
133.18  knowledge of the violation, the recording of the deed conveying 
133.19  the unit or, in a cooperative, the conveyance of the right to 
133.20  possession of the unit, extinguishes any right a holder of a 
133.21  lessee's interest who is not in possession of the unit may have 
133.22  under subsection (d) to purchase that unit, but the conveyance 
133.23  does not affect the right of the holder to recover damages from 
133.24  the declarant unit owner for a violation of subsection (d). 
133.25     (f) If a notice of conversion specifies a date by which a 
133.26  unit or proposed unit must be vacated or otherwise complies with 
133.27  the provisions of chapter 566, the notice also constitutes a 
133.28  notice to vacate specified by that statute. 
133.29     (g) Nothing in this section permits termination of a lease 
133.30  by a declarant a unit owner to terminate a lease in violation of 
133.31  its terms. 
133.32     (h) Failure to give notice as required by this section is a 
133.33  defense to an action for possession until a notice complying 
133.34  with this section is given and the applicable notice period 
133.35  terminates. 
133.36     Sec. 31.  Minnesota Statutes 1998, section 515B.4-115, is 
134.1   amended to read: 
134.2      515B.4-115 [STATUTE OF LIMITATIONS FOR WARRANTIES.] 
134.3      (a) A judicial proceeding for breach of an obligation 
134.4   arising under section 515B.4-106(d), shall be commenced within 
134.5   six months after the conveyance of the unit. 
134.6      (b) A judicial proceeding for breach of an obligation 
134.7   arising under section 515B.4-112 or 515B.4-113 shall be 
134.8   commenced within six years after the cause of action accrues, 
134.9   but the parties may agree to reduce the period of limitation to 
134.10  not less than two years.  With respect to a unit that may be 
134.11  occupied for residential use, an agreement to reduce the period 
134.12  of limitation must be evidenced by an instrument separate from 
134.13  the purchase agreement signed by the purchaser. 
134.14     (c) Subject to subsection (d), a cause of action under 
134.15  section 515B.4-112 or 515B.4-113, regardless of the purchasers 
134.16  lack of knowledge of the breach, accrues: 
134.17     (1) as to a unit, at the earlier of the time of conveyance 
134.18  of the unit by the declarant to a bona fide purchaser of the 
134.19  unit other than an affiliate of a declarant, or the time the 
134.20  purchaser enters into possession of the unit; and 
134.21     (2) as to each common element, the latest of (i) the time 
134.22  the common element is completed, (ii) the time the first unit in 
134.23  the condominium common interest community is conveyed to a bona 
134.24  fide purchaser, or if the common element is located on property 
134.25  that is additional real estate at the time the first unit 
134.26  therein is conveyed to a bona fide purchaser, or (iii) the 
134.27  termination of the period of declarant control. 
134.28     (d) If a warranty explicitly extends to future performance 
134.29  or duration of any improvement or component of the common 
134.30  interest community, the cause of action accrues at the time the 
134.31  breach is discovered or at the end of the period for which the 
134.32  warranty explicitly extends, whichever is earlier. 
134.33                             ARTICLE 3 
134.34     Section 1.  Minnesota Statutes 1998, section 47.20, 
134.35  subdivision 2, is amended to read: 
134.36     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
135.1   the terms defined in this subdivision have the meanings given 
135.2   them: 
135.3      (1) "Actual closing costs" mean reasonable charges for or 
135.4   sums paid for the following, whether or not retained by the 
135.5   mortgagee or lender: 
135.6      (a) Any insurance premiums including but not limited to 
135.7   premiums for title insurance, fire and extended coverage 
135.8   insurance, flood insurance, and private mortgage insurance, but 
135.9   excluding any charges or sums retained by the mortgagee or 
135.10  lender as self-insured retention. 
135.11     (b) Abstracting, title examination and search, and 
135.12  examination of public records. 
135.13     (c) The preparation and recording of any or all documents 
135.14  required by law or custom for closing a conventional or 
135.15  cooperative apartment loan. 
135.16     (d) Appraisal and survey of real property securing a 
135.17  conventional loan or real property owned by a cooperative 
135.18  apartment corporation of which a share or shares of stock or a 
135.19  membership certificate or certificates are to secure a 
135.20  cooperative apartment loan. 
135.21     (e) A single service charge, which includes any 
135.22  consideration, not otherwise specified herein as an "actual 
135.23  closing cost" paid by the borrower and received and retained by 
135.24  the lender for or related to the acquisition, making, 
135.25  refinancing or modification of a conventional or cooperative 
135.26  apartment loan, and also includes any consideration received by 
135.27  the lender for making a borrower's interest rate commitment or 
135.28  for making a borrower's loan commitment, whether or not an 
135.29  actual loan follows the commitment.  The term service charge 
135.30  does not include forward commitment fees.  The service charge 
135.31  shall not exceed one percent of the original bona fide principal 
135.32  amount of the conventional or cooperative apartment loan, except 
135.33  that in the case of a construction loan, the service charge 
135.34  shall not exceed two percent of the original bona fide principal 
135.35  amount of the loan.  That portion of the service charge imposed 
135.36  because the loan is a construction loan shall be itemized and a 
136.1   copy of the itemization furnished the borrower.  A lender shall 
136.2   not collect from a borrower the additional one percent service 
136.3   charge permitted for a construction loan if it does not perform 
136.4   the service for which the charge is imposed or if third parties 
136.5   perform and charge the borrower for the service for which the 
136.6   lender has imposed the charge. 
136.7      (f) Charges and fees necessary for or related to the 
136.8   transfer of real or personal property securing a conventional or 
136.9   cooperative apartment loan or the closing of a conventional or 
136.10  cooperative apartment loan paid by the borrower and received by 
136.11  any party other than the lender. 
136.12     (2) "Contract for deed" means an executory contract for the 
136.13  conveyance of real estate, the original principal amount of 
136.14  which is less than $100,000.  A commitment for a contract for 
136.15  deed shall include an executed purchase agreement or earnest 
136.16  money contract wherein the seller agrees to finance any part or 
136.17  all of the purchase price by a contract for deed. 
136.18     (3) "Conventional loan" means a loan or advance of credit, 
136.19  other than a loan or advance of credit made by a credit union or 
136.20  made pursuant to section 334.011, to a noncorporate borrower in 
136.21  an original principal amount of less than $100,000, secured by a 
136.22  mortgage upon real property containing one or more residential 
136.23  units or upon which at the time the loan is made it is intended 
136.24  that one or more residential units are to be constructed, and 
136.25  which is not insured or guaranteed by the secretary of housing 
136.26  and urban development, by the administrator of veterans affairs, 
136.27  or by the administrator of the farmers home administration, and 
136.28  which is not made pursuant to the authority granted in 
136.29  subdivision 1, clause (3) or (4).  The term mortgage does not 
136.30  include contracts for deed or installment land contracts. 
136.31     (4) "Cooperative apartment loan" means a loan or advance of 
136.32  credit, other than a loan or advance of credit made by a credit 
136.33  union or made pursuant to section 334.011, to a noncorporate 
136.34  borrower in an original principal amount of less than $100,000, 
136.35  secured by a security interest on a share or shares of stock or 
136.36  a membership certificate or certificates issued to a stockholder 
137.1   or member by a cooperative apartment corporation, which may be 
137.2   accompanied by an assignment by way of security of the 
137.3   borrower's interest in the proprietary lease or occupancy 
137.4   agreement in property issued by the cooperative apartment 
137.5   corporation and which is not insured or guaranteed by the 
137.6   secretary of housing and urban development, by the administrator 
137.7   of veterans affairs, or by the administrator of the farmers home 
137.8   administration.  
137.9      (5) "Cooperative apartment corporation" means a corporation 
137.10  or cooperative organized under chapter 308A or 317A, the 
137.11  shareholders or members of which are entitled, solely by reason 
137.12  of their ownership of stock or membership certificates in the 
137.13  corporation or association, to occupy one or more residential 
137.14  units in a building owned or leased by the corporation or 
137.15  association.  
137.16     (6) "Forward commitment fee" means a fee or other 
137.17  consideration paid to a lender for the purpose of securing a 
137.18  binding forward commitment by or through the lender to make 
137.19  conventional loans to two or more credit worthy purchasers, 
137.20  including future purchasers, of residential units, or a fee or 
137.21  other consideration paid to a lender for the purpose of securing 
137.22  a binding forward commitment by or through the lender to make 
137.23  conventional loans to two or more credit worthy purchasers, 
137.24  including future purchasers, of apartments as defined in section 
137.25  515.02 units to be created out of existing structures pursuant 
137.26  to the Minnesota Condominium Act chapter 515B, or a fee or other 
137.27  consideration paid to a lender for the purpose of securing a 
137.28  binding forward commitment by or through the lender to make 
137.29  cooperative apartment loans to two or more credit worthy 
137.30  purchasers, including future purchasers, of a share or shares of 
137.31  stock or a membership certificate or certificates in a 
137.32  cooperative apartment corporation; provided, that the forward 
137.33  commitment rate of interest does not exceed the maximum lawful 
137.34  rate of interest effective as of the date the forward commitment 
137.35  is issued by the lender. 
137.36     (7) "Borrower's interest rate commitment" means a binding 
138.1   commitment made by a lender to a borrower wherein the lender 
138.2   agrees that, if a conventional or cooperative apartment loan is 
138.3   made following issuance of and pursuant to the commitment, the 
138.4   conventional or cooperative apartment loan shall be made at a 
138.5   rate of interest not in excess of the rate of interest agreed to 
138.6   in the commitment, provided that the rate of interest agreed to 
138.7   in the commitment is not in excess of the maximum lawful rate of 
138.8   interest effective as of the date the commitment is issued by 
138.9   the lender to the borrower. 
138.10     (8) "Borrower's loan commitment" means a binding commitment 
138.11  made by a lender to a borrower wherein the lender agrees to make 
138.12  a conventional or cooperative apartment loan pursuant to the 
138.13  provisions, including the interest rate, of the commitment, 
138.14  provided that the commitment rate of interest does not exceed 
138.15  the maximum lawful rate of interest effective as of the date the 
138.16  commitment is issued and the commitment when issued and agreed 
138.17  to shall constitute a legally binding obligation on the part of 
138.18  the mortgagee or lender to make a conventional or cooperative 
138.19  apartment loan within a specified time period in the future at a 
138.20  rate of interest not exceeding the maximum lawful rate of 
138.21  interest effective as of the date the commitment is issued by 
138.22  the lender to the borrower; provided that a lender who issues a 
138.23  borrower's loan commitment pursuant to the provisions of a 
138.24  forward commitment is authorized to issue the borrower's loan 
138.25  commitment at a rate of interest not to exceed the maximum 
138.26  lawful rate of interest effective as of the date the forward 
138.27  commitment is issued by the lender. 
138.28     (9) "Finance charge" means the total cost of a conventional 
138.29  or cooperative apartment loan including extensions or grant of 
138.30  credit regardless of the characterization of the same and 
138.31  includes interest, finders fees, and other charges levied by a 
138.32  lender directly or indirectly against the person obtaining the 
138.33  conventional or cooperative apartment loan or against a seller 
138.34  of real property securing a conventional loan or a seller of a 
138.35  share or shares of stock or a membership certificate or 
138.36  certificates in a cooperative apartment corporation securing a 
139.1   cooperative apartment loan, or any other party to the 
139.2   transaction except any actual closing costs and any forward 
139.3   commitment fee.  The finance charges plus the actual closing 
139.4   costs and any forward commitment fee, charged by a lender shall 
139.5   include all charges made by a lender other than the principal of 
139.6   the conventional or cooperative apartment loan.  The finance 
139.7   charge, with respect to wraparound mortgages, shall be computed 
139.8   based upon the face amount of the wraparound mortgage note, 
139.9   which face amount shall consist of the aggregate of those funds 
139.10  actually advanced by the wraparound lender and the total 
139.11  outstanding principal balances of the prior note or notes which 
139.12  have been made a part of the wraparound mortgage note.  
139.13     (10) "Lender" means any person making a conventional or 
139.14  cooperative apartment loan, or any person arranging financing 
139.15  for a conventional or cooperative apartment loan.  The term also 
139.16  includes the holder or assignee at any time of a conventional or 
139.17  cooperative apartment loan. 
139.18     (11) "Loan yield" means the annual rate of return obtained 
139.19  by a lender over the term of a conventional or cooperative 
139.20  apartment loan and shall be computed as the annual percentage 
139.21  rate as computed in accordance with sections 226.5 (b), (c), and 
139.22  (d) of Regulation Z, Code of Federal Regulations, title 12, 
139.23  section 226, but using the definition of finance charge provided 
139.24  for in this subdivision.  For purposes of this section, with 
139.25  respect to wraparound mortgages, the rate of interest or loan 
139.26  yield shall be based upon the principal balance set forth in the 
139.27  wraparound note and mortgage and shall not include any interest 
139.28  differential or yield differential between the stated interest 
139.29  rate on the wraparound mortgage and the stated interest rate on 
139.30  the one or more prior mortgages included in the stated loan 
139.31  amount on a wraparound note and mortgage.  
139.32     (12) "Person" means an individual, corporation, business 
139.33  trust, partnership or association or any other legal entity. 
139.34     (13) "Residential unit" means any structure used 
139.35  principally for residential purposes or any portion thereof, and 
139.36  includes a unit in a townhouse or planned unit development, a 
140.1   condominium apartment in a common interest community, a nonowner 
140.2   occupied residence, and any other type of residence regardless 
140.3   of whether the unit is used as a principal residence, secondary 
140.4   residence, vacation residence, or residence of some other 
140.5   denomination. 
140.6      (14) "Vendor" means any person or persons who agree to sell 
140.7   real estate and finance any part or all of the purchase price by 
140.8   a contract for deed.  The term also includes the holder or 
140.9   assignee at any time of the vendor's interest in a contract for 
140.10  deed. 
140.11     Sec. 2.  Minnesota Statutes 1998, section 51A.02, 
140.12  subdivision 29, is amended to read: 
140.13     Subd. 29.  [HOME PROPERTY.] "Home property" means real 
140.14  estate on which there is located, or will be located pursuant to 
140.15  a real estate loan, either a structure designed for residential 
140.16  use by one family or a single condominium unit in a residential 
140.17  common interest community, or unit in a residential cooperative, 
140.18  including all elements pertinent thereto, designed for 
140.19  residential use by one family in a multiple dwelling unit 
140.20  structure or complex, and includes fixtures, furnishings and 
140.21  equipment. 
140.22     Sec. 3.  Minnesota Statutes 1998, section 60C.09, 
140.23  subdivision 1, is amended to read: 
140.24     Subdivision 1.  [DEFINITION.] A covered claim is any unpaid 
140.25  claim, including one for unearned premium, which: 
140.26     (a)(1) Arises out of and is within the coverage of an 
140.27  insurance policy issued by a member insurer if the insurer 
140.28  becomes an insolvent insurer after April 30, 1979; or 
140.29     (2) Would be within the coverage of an extended reporting 
140.30  endorsement to a claims-made insurance policy if insolvency had 
140.31  not prevented the member insurer from fulfilling its obligation 
140.32  to issue the endorsement, if: 
140.33     (i) the claims-made policy contained a provision affording 
140.34  the insured the right to purchase a reporting endorsement; 
140.35     (ii) coverage will be no greater than if a reporting 
140.36  endorsement had been issued; 
141.1      (iii) the insured has not purchased other insurance which 
141.2   applies to the claim; and 
141.3      (iv) the insured's deductible under the policy is increased 
141.4   by an amount equal to the premium for the reporting endorsement, 
141.5   as provided in the insured's claims-made policy, or if not so 
141.6   provided, then as established by a rate service organization. 
141.7      (b) Arises out of a class of business which is not excepted 
141.8   from the scope of this chapter by section 60C.02; and 
141.9      (c) Is made by: 
141.10     (i) A policyholder, or an insured beneficiary under a 
141.11  policy, who, at the time of the insured event, was a resident of 
141.12  this state; or 
141.13     (ii) A person designated in the policy as having an 
141.14  insurable interest in or related to property situated in this 
141.15  state at the time of the insured event; or 
141.16     (iii) An obligee or creditor under any surety bond, who, at 
141.17  the time of default by the principal debtor or obligor, was a 
141.18  resident of this state; or 
141.19     (iv) A third party claimant under a liability policy or 
141.20  surety bond, if:  (a) the insured or the third party claimant 
141.21  was a resident of this state at the time of the insured event; 
141.22  (b) the claim is for bodily or personal injuries suffered in 
141.23  this state by a person who when injured was a resident of this 
141.24  state; or (c) the claim is for damages to real property situated 
141.25  in this state at the time of damage; or 
141.26     (v) A direct or indirect assignee of a person who except 
141.27  for the assignment might have claimed under item (i), (ii), or 
141.28  (iii). 
141.29     For purposes of paragraph (c), item (ii), unit owners of 
141.30  condominiums, townhouses, or cooperatives units in a common 
141.31  interest community are considered as having an insurable 
141.32  interest.  
141.33     A covered claim also includes any unpaid claim which arises 
141.34  or exists within 30 days after the time of entry of a final 
141.35  order of liquidation with a finding of insolvency by a court of 
141.36  competent jurisdiction unless prior thereto the insured replaces 
142.1   the policy or causes its cancellation or the policy expires on 
142.2   its expiration date.  A covered claim does not include claims 
142.3   filed with the guaranty fund after the final date set by the 
142.4   court for the filing of claims except for workers' compensation 
142.5   claims that have met the time limitations and other requirements 
142.6   of chapter 176 and excused late filings permitted under section 
142.7   60B.37. 
142.8      Sec. 4.  Minnesota Statutes 1998, section 83.20, 
142.9   subdivision 11, is amended to read: 
142.10     Subd. 11.  "Subdivision" or "subdivided land" means any 
142.11  real estate, wherever located, improved or unimproved, which is 
142.12  divided or proposed to be divided for the purpose of sale or 
142.13  lease, including sales or leases of any timeshare interest, 
142.14  housing cooperative, condominium unit in a common interest 
142.15  community, or similar interest in real estate.  
142.16     Sec. 5.  Minnesota Statutes 1998, section 83.20, 
142.17  subdivision 14, is amended to read: 
142.18     Subd. 14.  "Improved lots" means lots which have or will 
142.19  have within a two-year period from the date of purchase, a 
142.20  permanent residential structure thereon, and are not devoted to 
142.21  or used as a time share interest, cooperative apartment 
142.22  corporation, condominium unit in a common interest community, or 
142.23  similar interest in real estate.  
142.24     Sec. 6.  Minnesota Statutes 1998, section 103I.235, 
142.25  subdivision 1, is amended to read: 
142.26     Subdivision 1.  [DISCLOSURE OF WELLS TO BUYER.] (a) Before 
142.27  signing an agreement to sell or transfer real property, the 
142.28  seller must disclose in writing to the buyer information about 
142.29  the status and location of all known wells on the property, by 
142.30  delivering to the buyer either a statement by the seller that 
142.31  the seller does not know of any wells on the property, or a 
142.32  disclosure statement indicating the legal description and 
142.33  county, and a map drawn from available information showing the 
142.34  location of each well to the extent practicable.  In the 
142.35  disclosure statement, the seller must indicate, for each well, 
142.36  whether the well is in use, not in use, or sealed.  
143.1      (b) At the time of closing of the sale, the disclosure 
143.2   statement information, name and mailing address of the buyer, 
143.3   and the quartile, section, township, and range in which each 
143.4   well is located must be provided on a well disclosure 
143.5   certificate signed by the seller or a person authorized to act 
143.6   on behalf of the seller. 
143.7      (c) A well disclosure certificate need not be provided if 
143.8   the seller does not know of any wells on the property and the 
143.9   deed or other instrument of conveyance contains the statement:  
143.10  "The Seller certifies that the Seller does not know of any wells 
143.11  on the described real property."  
143.12     (d) If a deed is given pursuant to a contract for deed, the 
143.13  well disclosure certificate required by this subdivision shall 
143.14  be signed by the buyer or a person authorized to act on behalf 
143.15  of the buyer.  If the buyer knows of no wells on the property, a 
143.16  well disclosure certificate is not required if the following 
143.17  statement appears on the deed followed by the signature of the 
143.18  grantee or, if there is more than one grantee, the signature of 
143.19  at least one of the grantees:  "The Grantee certifies that the 
143.20  Grantee does not know of any wells on the described real 
143.21  property."  The statement and signature of the grantee may be on 
143.22  the front or back of the deed or on an attached sheet and an 
143.23  acknowledgment of the statement by the grantee is not required 
143.24  for the deed to be recordable. 
143.25     (e) This subdivision does not apply to the sale, exchange, 
143.26  or transfer of real property:  
143.27     (1) that consists solely of a sale or transfer of severed 
143.28  mineral interests; or 
143.29     (2) that consists of an individual condominium unit as 
143.30  described in chapters 515 and 515A 515B. 
143.31     (f) For an area owned in common under chapter 515 or 515A 
143.32  515B the association or other responsible person must report to 
143.33  the commissioner by July 1, 1992, the location and status of all 
143.34  wells in the common area.  The association or other responsible 
143.35  person must notify the commissioner within 30 days of any change 
143.36  in the reported status of wells. 
144.1      (g) For real property sold by the state under section 
144.2   92.67, the lessee at the time of the sale is responsible for 
144.3   compliance with this subdivision. 
144.4      (h) If the seller fails to provide a required well 
144.5   disclosure certificate, the buyer, or a person authorized to act 
144.6   on behalf of the buyer, may sign a well disclosure certificate 
144.7   based on the information provided on the disclosure statement 
144.8   required by this section or based on other available information.
144.9      (i) A county recorder or registrar of titles may not record 
144.10  a deed or other instrument of conveyance dated after October 31, 
144.11  1990, for which a certificate of value is required under section 
144.12  272.115, or any deed or other instrument of conveyance dated 
144.13  after October 31, 1990, from a governmental body exempt from the 
144.14  payment of state deed tax, unless the deed or other instrument 
144.15  of conveyance contains the statement made in accordance with 
144.16  paragraph (c) or (d) or is accompanied by the well disclosure 
144.17  certificate containing all the information required by paragraph 
144.18  (b) or (d).  The county recorder or registrar of titles must not 
144.19  accept a certificate unless it contains all the required 
144.20  information.  The county recorder or registrar of titles shall 
144.21  note on each deed or other instrument of conveyance accompanied 
144.22  by a well disclosure certificate that the well disclosure 
144.23  certificate was received.  The notation must include the 
144.24  statement "No wells on property" if the disclosure certificate 
144.25  states there are no wells on the property.  The well disclosure 
144.26  certificate shall not be filed or recorded in the records 
144.27  maintained by the county recorder or registrar of titles.  After 
144.28  noting "No wells on property" on the deed or other instrument of 
144.29  conveyance, the county recorder or registrar of titles shall 
144.30  destroy or return to the buyer the well disclosure certificate.  
144.31  The county recorder or registrar of titles shall collect from 
144.32  the buyer or the person seeking to record a deed or other 
144.33  instrument of conveyance, a fee of $20 for receipt of a 
144.34  completed well disclosure certificate.  By the tenth day of each 
144.35  month, the county recorder or registrar of titles shall transmit 
144.36  the well disclosure certificates to the commissioner of health.  
145.1   By the tenth day after the end of each calendar quarter, the 
145.2   county recorder or registrar of titles shall transmit to the 
145.3   commissioner of health $17.50 of the fee for each well 
145.4   disclosure certificate received during the quarter.  The 
145.5   commissioner shall maintain the well disclosure certificate for 
145.6   at least six years.  The commissioner may store the certificate 
145.7   as an electronic image.  A copy of that image shall be as valid 
145.8   as the original. 
145.9      (j) No new well disclosure certificate is required under 
145.10  this subdivision if the buyer or seller, or a person authorized 
145.11  to act on behalf of the buyer or seller, certifies on the deed 
145.12  or other instrument of conveyance that the status and number of 
145.13  wells on the property have not changed since the last previously 
145.14  filed well disclosure certificate.  The following statement, if 
145.15  followed by the signature of the person making the statement, is 
145.16  sufficient to comply with the certification requirement of this 
145.17  paragraph:  "I am familiar with the property described in this 
145.18  instrument and I certify that the status and number of wells on 
145.19  the described real property have not changed since the last 
145.20  previously filed well disclosure certificate."  The 
145.21  certification and signature may be on the front or back of the 
145.22  deed or on an attached sheet and an acknowledgment of the 
145.23  statement is not required for the deed or other instrument of 
145.24  conveyance to be recordable. 
145.25     (k) The commissioner in consultation with county recorders 
145.26  shall prescribe the form for a well disclosure certificate and 
145.27  provide well disclosure certificate forms to county recorders 
145.28  and registrars of titles and other interested persons. 
145.29     (l) Failure to comply with a requirement of this 
145.30  subdivision does not impair: 
145.31     (1) the validity of a deed or other instrument of 
145.32  conveyance as between the parties to the deed or instrument or 
145.33  as to any other person who otherwise would be bound by the deed 
145.34  or instrument; or 
145.35     (2) the record, as notice, of any deed or other instrument 
145.36  of conveyance accepted for filing or recording contrary to the 
146.1   provisions of this subdivision. 
146.2      Sec. 7.  Minnesota Statutes 1998, section 238.22, 
146.3   subdivision 3, is amended to read: 
146.4      Subd. 3.  [MULTIPLE DWELLING COMPLEX.] "Multiple dwelling 
146.5   complex" means a site, lot, field, or tract of land or water, 
146.6   other than a condominium, cooperative common interest community, 
146.7   or mobile home park, whether occupied or under construction, 
146.8   containing more than four dwelling units. 
146.9      Sec. 8.  Minnesota Statutes 1998, section 273.124, 
146.10  subdivision 2, is amended to read: 
146.11     Subd. 2.  [TOWNHOUSES PLANNED COMMUNITIES; COMMON AREAS 
146.12  ELEMENTS; CONDOMINIUMS; COOPERATIVES.] (a) The total value 
146.13  of townhouse property planned community common elements, as 
146.14  defined in chapter 515B, including the value added as provided 
146.15  in this paragraph, must have the benefit of homestead treatment 
146.16  or other special classification if the townhouse unit in the 
146.17  planned community otherwise qualifies.  The value of townhouse 
146.18  property a planned community unit, as defined in chapter 515B, 
146.19  must be increased by the value added by the right to use any 
146.20  common areas elements in connection with the townhouse 
146.21  development planned community.  The common areas elements of the 
146.22  development must not be separately taxed.  
146.23     (b) Condominium property qualifying as a homestead under 
146.24  section 515A.1-105 and property owned by a cooperative 
146.25  association that qualifies as a homestead must have the benefit 
146.26  of homestead treatment or other special classification if the 
146.27  condominium or cooperative association property otherwise 
146.28  qualifies.  
146.29     (c) If the condominium, townhouse, or cooperative 
146.30  association property a unit in a common interest community is 
146.31  owned by the occupant and used for the purposes of a homestead 
146.32  but is located upon land which is leased, that leased land must 
146.33  be valued and assessed as if it were homestead property within 
146.34  class 1 if all of the following criteria are met: 
146.35     (1) the occupant is using the property unit as a permanent 
146.36  residence; 
147.1      (2) the occupant or the cooperative association is paying 
147.2   the ad valorem property taxes and any special assessments levied 
147.3   against the land and structure; 
147.4      (3) the occupant or the cooperative association has signed 
147.5   a land lease; and 
147.6      (4) the term of the land lease is at least 50 years, 
147.7   notwithstanding the fact that the amount of the rental payment 
147.8   may be renegotiated at shorter intervals.  
147.9      Sec. 9.  Minnesota Statutes 1998, section 297H.01, 
147.10  subdivision 8, is amended to read: 
147.11     Subd. 8.  [RESIDENTIAL GENERATOR.] "Residential generator" 
147.12  means any of the following: 
147.13     (1) a detached single family residence that generates mixed 
147.14  municipal solid waste or non-mixed-municipal solid waste; 
147.15     (2) a person residing in a building or site containing 
147.16  multiple residences that generates mixed municipal solid waste, 
147.17  including apartment buildings, condominiums, common interest 
147.18  communities, or manufactured home parks, or townhomes, where 
147.19  each residence is separately billed by the waste service 
147.20  provider; 
147.21     (3) an owner of a building or site containing multiple 
147.22  residences or an association representing residences that 
147.23  generate mixed municipal solid waste or non-mixed-municipal 
147.24  solid waste, including apartment buildings, condominiums, 
147.25  manufactured home parks, or townhomes where no residence is 
147.26  separately billed for such service by the waste management 
147.27  service provider and the owner or association is billed directly 
147.28  for the waste management services.  A residential generator does 
147.29  not include a self-hauler. 
147.30     Sec. 10.  Minnesota Statutes 1998, section 327C.095, 
147.31  subdivision 5, is amended to read: 
147.32     Subd. 5.  [PARK CONVERSIONS.] If the planned cessation of 
147.33  operation is for the purpose of converting the part of the park 
147.34  occupied by the resident to a condominium common interest 
147.35  community pursuant to chapter 515A 515B, the provisions of 
147.36  section 515A.4-110 515B.4-111, except paragraph subsection (a), 
148.1   shall apply.  The nine-month notice required by this section 
148.2   shall state that the cessation is for the purpose of conversion 
148.3   and shall set forth the rights conferred by this subdivision and 
148.4   section 515A.4-110 515B.4-111, paragraph subsection (b).  Not 
148.5   less than 120 days before the end of the nine months, the park 
148.6   owner shall serve upon the resident a form of purchase agreement 
148.7   setting forth the terms of sale contemplated by section 
148.8   515A.4-110 515B.4-111, paragraph (b) subsection (d).  Service of 
148.9   that form shall operate as the notice described by section 
148.10  515A.4-110 515B.4-111, paragraph subsection (a). 
148.11     Sec. 11.  Minnesota Statutes 1998, section 357.18, 
148.12  subdivision 1, is amended to read: 
148.13     Subdivision 1.  [COUNTY RECORDER FEES.] The fees to be 
148.14  charged by the county recorder shall be as follows: 
148.15     (1) for indexing and recording any deed or other instrument 
148.16  $1 for each page of an instrument, with a minimum fee of $15; 
148.17     (2) for documents containing multiple assignments, partial 
148.18  releases or satisfactions $10 for each document number or book 
148.19  and page cited; 
148.20     (3) for certified copies of any records or papers, $1 for 
148.21  each page of an instrument with a minimum fee of $5; 
148.22     (4) for an abstract of title, the fees shall be determined 
148.23  by resolution of the county board duly adopted upon the 
148.24  recommendation of the county recorder, and the fees shall not 
148.25  exceed $5 for every entry, $50 for abstract certificate, $1 per 
148.26  page for each exhibit included within an abstract as a part of 
148.27  an abstract entry, and $2 per name for each required name search 
148.28  certification; 
148.29     (5) for a copy of an official plat filed pursuant to 
148.30  section 505.08, the fee shall be $9.50 and an additional 50 
148.31  cents shall be charged for the certification of each plat; 
148.32     (6) for filing a condominium an amended floor plan in 
148.33  accordance with section 515.13, or a condominium plat in 
148.34  accordance with section 515A.2-110 chapter 515, an amended 
148.35  condominium plat in accordance with chapter 515A, or a common 
148.36  interest community plat or amendment complying with section 
149.1   515B.2-110, subsection (c), the fee shall be 50 cents per 
149.2   apartment or unit with a minimum fee of $30; 
149.3      (7) for a copy of a condominium floor plan filed pursuant 
149.4   to section 515.13, or chapter 515, a copy of a condominium plat 
149.5   filed in accordance with section 515A.2-110 chapter 515A, or a 
149.6   copy of a common interest community plat complying with section 
149.7   515B.2-110, subsection (c), the fee shall be $1 for each page of 
149.8   the floor plan or, condominium plat or common interest community 
149.9   plat with a minimum fee of $10. 
149.10     Sec. 12.  Minnesota Statutes 1998, section 389.09, is 
149.11  amended to read: 
149.12     389.09 [APPROVAL OF PLATS AND SURVEYS AND CONDOMINIUM PLATS 
149.13  IN CERTAIN COUNTIES.] 
149.14     Subdivision 1.  [PLATS AND SURVEYS IN CERTAIN COUNTIES.] In 
149.15  any county in which there is a county surveyor who maintains an 
149.16  office on a full-time basis in a building maintained by the 
149.17  county for county purposes, the county board may, by ordinance 
149.18  adopted in accordance with section 375.51, require that each 
149.19  subdivision plat or registered land survey plat or condominium 
149.20  common interest community plat must be approved by the county 
149.21  surveyor before recording.  The county board shall establish a 
149.22  schedule of fees charged to proprietors of plats for this 
149.23  service. 
149.24     Subd. 2.  [CONDOMINIUM COMMON INTEREST COMMUNITY PLATS.] A 
149.25  county board may, by ordinance adopted in accordance with 
149.26  section 375.51, require that each condominium common interest 
149.27  community plat submitted for recordation after July 31, 1985, be 
149.28  approved by the county surveyor or other licensed surveyor hired 
149.29  for this purpose by the county, for compliance with 
149.30  section 515A.2-110 515B.2-110, before recording.  The process of 
149.31  approving the condominium common interest community plat must be 
149.32  conducted in an expeditious manner so as not to unduly delay the 
149.33  recording of the condominium common interest community plat.  
149.34  The proprietor of the condominium common interest community plat 
149.35  may be charged a reasonable fee for the service in accordance 
149.36  with a schedule established by resolution passed by the 
150.1   governing body of the county. 
150.2      Sec. 13.  Minnesota Statutes 1998, section 428A.11, 
150.3   subdivision 4, is amended to read: 
150.4      Subd. 4.  [HOUSING IMPROVEMENTS.] "Housing improvements" 
150.5   has the meaning given in the city's enabling ordinance.  Housing 
150.6   improvements may include improvements to common elements of a 
150.7   condominium or other common interest community. 
150.8      Sec. 14.  Minnesota Statutes 1998, section 428A.11, 
150.9   subdivision 6, is amended to read: 
150.10     Subd. 6.  [HOUSING UNIT.] "Housing unit" means real 
150.11  property and improvements thereon consisting of a one-dwelling 
150.12  unit, or an apartment or unit as described in chapter 515 or, 
150.13  515A, or 515B, respectively, that is occupied by a person or 
150.14  family for use as a residence. 
150.15     Sec. 15.  Minnesota Statutes 1998, section 462C.02, 
150.16  subdivision 4, is amended to read: 
150.17     Subd. 4.  [SINGLE FAMILY HOUSING.] "Single family housing" 
150.18  means real property and improvements thereon consisting of a 
150.19  one, two, three or four unit dwelling, one unit of which is 
150.20  occupied as a principal residence by the owner of the units, or 
150.21  a unit or an apartment as described in chapter 515 or, 515A, or 
150.22  515B, or any amendatory or supplemental law, which is owned or 
150.23  to be owned and occupied by one person or family as a principal 
150.24  residence, or a unit in a cooperatively owned group of dwelling 
150.25  units which is occupied as a principal residence.  Single family 
150.26  housing may include new construction, or the acquisition and 
150.27  rehabilitation of an existing building and site, or the 
150.28  rehabilitation of and discharge of any interest or lien in an 
150.29  existing building and site. 
150.30     Sec. 16.  Minnesota Statutes 1998, section 462C.02, 
150.31  subdivision 5, is amended to read: 
150.32     Subd. 5.  [MULTIFAMILY HOUSING DEVELOPMENT, DEVELOPMENT.] 
150.33  "Multifamily housing development" or "development" means an 
150.34  apartment facility, including an apartment or unit described in 
150.35  chapter 515 or, 515A, or 515B, or a cooperative, or a group of 
150.36  townhouses, which include four or more dwelling units, each to 
151.1   be rented or sold to or occupied by a person or family for use 
151.2   as a residence, or a building or buildings which include one or 
151.3   more dwelling units, each to be rented by a person or family for 
151.4   use as a residence.  A development may include new construction 
151.5   or the acquisition and rehabilitation of an existing building 
151.6   and site or the rehabilitation of and discharge of any interest 
151.7   or lien in an existing building and site. 
151.8      Sec. 17.  Minnesota Statutes 1998, section 462C.05, 
151.9   subdivision 1, is amended to read: 
151.10     Subdivision 1.  [USE OF LOANS; CONDITIONS.] A city may also 
151.11  include in the housing plan, a program or programs to 
151.12  administer, and make or purchase a loan or loans to finance one 
151.13  or more multifamily housing developments within its boundaries, 
151.14  of the kind described in subdivision 2, 3, 4 or 7, and upon the 
151.15  conditions set forth in this section.  A loan may be made or 
151.16  purchased for 
151.17     (a) the acquisition and preparation of a site and the 
151.18  construction of a new development, 
151.19     (b) the rehabilitation of an existing building and site and 
151.20  the discharge of any lien or other interest in the building and 
151.21  site, 
151.22     (c) for the acquisition of an existing building and site 
151.23  and the rehabilitation thereof, 
151.24     (d) for the acquisition of an existing building and site 
151.25  for purposes of conversion to limited equity cooperative 
151.26  ownership by low or moderate income families, 
151.27     (e) for the acquisition, or acquisition and improvement, of 
151.28  an existing building and site by a nonprofit corporation which 
151.29  will operate the building as a multifamily housing development 
151.30  for rental primarily to elderly or handicapped persons, or 
151.31     (f) the taking out of accumulated equity in connection with 
151.32  a program of federal insurance for the preservation of 
151.33  low-income housing. 
151.34     With respect to loans made or purchased pursuant to clause 
151.35  (b) or (c), the cost of rehabilitation of an existing building 
151.36  must be estimated to equal at least $1,000 per dwelling unit or 
152.1   20 percent of the appraised value of the original building and 
152.2   site whichever is less, except that with respect to 
152.3   rehabilitation which consists primarily of improvement of the 
152.4   property with facilities or improvements to conserve energy or 
152.5   convert or retrofit for use of alternative energy sources, 
152.6   rehabilitation loans may be made without regard to cost; and at 
152.7   least a substantial portion of such rehabilitation cost must be 
152.8   estimated to be incurred for compliance with building codes or 
152.9   conservation of energy. 
152.10     Each development upon completion shall comply with all 
152.11  applicable code requirements.  A loan or loans may be made or 
152.12  purchased for either the construction or the long-term financing 
152.13  of a development, or both, including the financing of the 
152.14  acquisition of dwelling units and interests in common facilities 
152.15  provided therein, by persons to whom such units and facilities 
152.16  may be sold as contemplated in chapter 515 or, 515A, or 515B, or 
152.17  any supplemental or amendatory law thereof or as contemplated 
152.18  for a development consisting of cooperative housing.  
152.19     Substantially all of the proceeds of each loan shall be 
152.20  used to pay the cost of a multifamily housing development, 
152.21  including property functionally related and subordinate to it; 
152.22  but nothing herein prevents the construction or acquisition of 
152.23  the development over, under, or adjacent to, and in conjunction 
152.24  with facilities to be used for purposes other than housing. 
152.25     Sec. 18.  Minnesota Statutes 1998, section 500.20, 
152.26  subdivision 2a, is amended to read: 
152.27     Subd. 2a.  [RESTRICTION OF DURATION OF CONDITION.] Except 
152.28  for any right to reenter or to repossess as provided in 
152.29  subdivision 3, all private covenants, conditions, or 
152.30  restrictions created by which the title or use of real property 
152.31  is affected, cease to be valid and operative 30 years after the 
152.32  date of the deed, or other instrument, or the date of the 
152.33  probate of the will, creating them, and may be disregarded.  
152.34     This subdivision does not apply to covenants, conditions, 
152.35  or restrictions:  
152.36     (1) that were created before August 1, 1988, by deed or 
153.1   other instrument dated on or after August 1, 1982, or by will 
153.2   the date of death of the testator of which was on or after 
153.3   August 1, 1982; 
153.4      (2) that were created before August 1, 1959, under which a 
153.5   person who owns or has an interest in real property against 
153.6   which the covenants, conditions, or restrictions have been filed 
153.7   claims a benefit of the covenant, condition, or restriction if 
153.8   the person records in the office of the county recorder or files 
153.9   in the office of the registrar of titles in the county in which 
153.10  the real estate affected is located, on or before March 30, 
153.11  1989, a notice sworn to by the claimant or the claimant's agent 
153.12  or attorney:  setting forth the name of the claimant; describing 
153.13  the real estate affected; describing the deed, instrument, or 
153.14  will creating the covenant, condition, or restriction; and 
153.15  stating that the covenant, condition, or restriction is not 
153.16  nominal and may not be disregarded under subdivision 1; 
153.17     (3) that are created by the declaration, bylaws, floor 
153.18  plans, or condominium plat of a condominium created before 
153.19  August 1, 1980, under sections 515.01 to 515.29 chapter 515, or 
153.20  created on or after August 1, 1980, under sections 515A.1-101 to 
153.21  515A.4-117 chapter 515A or 515B, or by any amendments of the 
153.22  declaration, bylaws, floor plans, or condominium plat; 
153.23     (4) that are created by the articles of incorporation, 
153.24  bylaws, or proprietary leases of a cooperative association 
153.25  formed under chapter 308A; 
153.26     (5) that are created by a declaration or other instrument 
153.27  that authorizes and empowers a corporation of which the 
153.28  qualification for being a stockholder or member is ownership of 
153.29  certain parcels of real estate, to hold title to common real 
153.30  estate for the benefit of the parcels; 
153.31     (6) that are created by a deed, declaration, reservation, 
153.32  or other instrument by which one or more portions of a building, 
153.33  set of connecting or adjacent buildings, or complex or project 
153.34  of related buildings and structures share support, structural 
153.35  components, ingress and egress, or utility access with another 
153.36  portion or portions; 
154.1      (7) that were created after July 31, 1959, and before 
154.2   August 1, 1982, under which a person who owns or has an interest 
154.3   in real estate against which covenants, conditions, or 
154.4   restrictions have been filed claims a benefit of the covenants, 
154.5   conditions, or restrictions if the person records in the office 
154.6   of the county recorder or files in the office of the registrar 
154.7   of titles in the county in which the real estate affected is 
154.8   located during the period commencing on the 28th anniversary of 
154.9   the date of the deed or instrument, or the date of the probate 
154.10  of the will, creating them and ending on the 30th anniversary, a 
154.11  notice as described in clause (2); or 
154.12     (8) that are created by a declaration or bylaws of a common 
154.13  interest community created under or governed by chapter 515B, or 
154.14  by any amendments thereto. 
154.15     A notice filed in accordance with clause (2) or (7) delays 
154.16  application of this subdivision to the covenants, conditions, or 
154.17  restrictions for a period ending on the later of seven years 
154.18  after the date of filing of the notice, or until final judgment 
154.19  is entered in an action to determine the validity of the 
154.20  covenants, conditions, or restrictions, provided in the case of 
154.21  an action the summons and complaint must be served and a notice 
154.22  of lis pendens must be recorded in the office of the county 
154.23  recorder or filed in the office of the registrar of titles in 
154.24  each county in which the real estate affected is located within 
154.25  seven years after the date of recording or filing of the notice 
154.26  under clause (2) or (7). 
154.27     County recorders and registrars of titles shall accept for 
154.28  recording or filing a notice conforming with this subdivision 
154.29  and charge a fee corresponding with the fee charged for filing a 
154.30  notice of lis pendens of similar length.  The notice may be 
154.31  discharged in the same manner as a notice of lis pendens and 
154.32  when discharged, together with the information included with it, 
154.33  ceases to constitute either actual or constructive notice. 
154.34     Sec. 19.  Minnesota Statutes 1998, section 505.08, 
154.35  subdivision 3, is amended to read: 
154.36     Subd. 3.  [PREMATURE REFERENCE TO PLAT; FORFEITURE.] Any 
155.1   person who shall dispose of, lease, or offer to sell any land 
155.2   included in a plat by reference to the plat before the same is 
155.3   recorded, shall forfeit to the county $100 for each lot, or part 
155.4   of a lot, so disposed of, leased, or offered; and any official, 
155.5   land surveyor, or person whose duty it is to comply with any of 
155.6   the provisions of this chapter, shall forfeit not less than $100 
155.7   for each month during which compliance is delayed.  All 
155.8   forfeitures under this chapter shall be recovered in an action 
155.9   brought in the name of the county. Notwithstanding any 
155.10  provisions of this subdivision to the contrary, this subdivision 
155.11  shall not apply to an offer to sell or lease a unit in a 
155.12  proposed common interest community as defined in chapter 515B. 
155.13     Sec. 20.  Minnesota Statutes 1998, section 508.82, 
155.14  subdivision 1, is amended to read: 
155.15     Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
155.16  to the registrar shall be as follows: 
155.17     (1) of the fees provided herein, five percent of the fees 
155.18  collected under clauses (3), (4), (10), (12), (13), (14), (16), 
155.19  (17), and (18), for filing or memorializing shall be paid to the 
155.20  state treasurer and credited to the general fund; plus a $4.50 
155.21  surcharge shall be charged and collected in addition to the 
155.22  total fees charged for each transaction under clauses (2) to 
155.23  (5), (10), (12), (14), and (18), with 50 cents of this surcharge 
155.24  to be retained by the county to cover its administrative costs 
155.25  and $4 to be paid to the state treasury and credited to the 
155.26  general fund; 
155.27     (2) for registering each original certificate of title, and 
155.28  issuing a duplicate of it, $30; 
155.29     (3) for registering each instrument transferring the fee 
155.30  simple title for which a new certificate of title is issued and 
155.31  for the issuance and registration of the new certificate of 
155.32  title, $30; 
155.33     (4) for the entry of each memorial on a certificate and 
155.34  endorsements upon duplicate certificates, $15; 
155.35     (5) for issuing each residue certificate, $20; 
155.36     (6) for exchange certificates, $10 for each certificate 
156.1   canceled and $10 for each new certificate issued; 
156.2      (7) for each certificate showing condition of the register, 
156.3   $10; 
156.4      (8) for any certified copy of any instrument or writing on 
156.5   file in the registrar's office, the same fees allowed by law to 
156.6   county recorders for like services; 
156.7      (9) for a noncertified copy of any instrument or writing on 
156.8   file in the office of the registrar of titles, or any specified 
156.9   page or part of it, an amount as determined by the county board 
156.10  for each page or fraction of a page specified.  If computer or 
156.11  microfilm printers are used to reproduce the instrument or 
156.12  writing, a like amount per image; 
156.13     (10) for filing two copies of any plat in the office of the 
156.14  registrar, $30; 
156.15     (11) for any other service under this chapter, such fee as 
156.16  the court shall determine; 
156.17     (12) for issuing a duplicate certificate of title pursuant 
156.18  to the directive of the examiner of titles in counties in which 
156.19  the compensation of the examiner is paid in the same manner as 
156.20  the compensation of other county employees, $50, plus $10 to 
156.21  memorialize; 
156.22     (13) for issuing a duplicate certificate of title pursuant 
156.23  to the directive of the examiner of titles in counties in which 
156.24  the compensation of the examiner is not paid by the county or 
156.25  pursuant to an order of the court, $10; 
156.26     (14) for filing a condominium plat or an amendment to it a 
156.27  declaration in accordance with chapter 515, $10 for each 
156.28  certificate upon which the document is registered and $30 for an 
156.29  amended floor plan filed in accordance with chapter 515; 
156.30     (15) for filing an amendment to a condominium declaration 
156.31  or plat in accordance with chapter 515A, or a common interest 
156.32  community declaration and plat or amendment complying with 
156.33  section 515B.2-110, subsection (c), $10 for each certificate 
156.34  upon which the document is registered and $30 for the filing of 
156.35  the condominium or common interest community plat or amendment; 
156.36     (16) for a copy of a condominium floor plan filed in 
157.1   accordance with chapter 515, a copy of a condominium plat filed 
157.2   pursuant to chapters 515 and in accordance with chapter 515A, or 
157.3   a copy of a common interest community plat complying with 
157.4   section 515B.2-110, subsection (c), the fee shall be $1 for each 
157.5   page of the floor plan, condominium plat, or common interest 
157.6   community plat with a minimum fee of $10; 
157.7      (16) for filing a condominium declaration and plat or an 
157.8   amendment to it in accordance with chapter 515A, $10 for each 
157.9   certificate upon which the document is registered and $30 for 
157.10  the filing of the condominium plat or an amendment thereto; 
157.11     (17) for the filing of a certified copy of a plat of the 
157.12  survey pursuant to section 508.23 or 508.671, $10; 
157.13     (18) for filing a registered land survey in triplicate in 
157.14  accordance with section 508.47, subdivision 4, $30; 
157.15     (19) for furnishing a certified copy of a registered land 
157.16  survey in accordance with section 508.47, subdivision 4, $10. 
157.17     Sec. 21.  Minnesota Statutes 1998, section 508A.82, 
157.18  subdivision 1, is amended to read: 
157.19     Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
157.20  to the registrar shall be as follows:  
157.21     (1) of the fees provided herein, five percent of the fees 
157.22  collected under clauses (3), (4), (10), (12), (13), (14), (16), 
157.23  and (18), for filing or memorializing shall be paid to the state 
157.24  treasurer and credited to the general fund; plus a $4.50 
157.25  surcharge shall be charged and collected in addition to the 
157.26  total fees charged for each transaction under clauses (2) to 
157.27  (5), (10), (12), (14), and (18), with 50 cents of this surcharge 
157.28  to be retained by the county to cover its administrative costs 
157.29  and $4 to be paid to the state treasury and credited to the 
157.30  general fund; 
157.31     (2) for registering each original CPT, and issuing a 
157.32  duplicate of it, $30; 
157.33     (3) for registering each instrument transferring the fee 
157.34  simple title for which a new CPT is issued and for the issuance 
157.35  and registration of the new CPT, $30; 
157.36     (4) for the entry of each memorial on a certificate and 
158.1   endorsements upon duplicate CPTs, $15; 
158.2      (5) for issuing each residue CPT, $20; 
158.3      (6) for exchange CPTs, $10 for each CPT canceled and $10 
158.4   for each new CPT issued; 
158.5      (7) for each certificate showing condition of the register, 
158.6   $10; 
158.7      (8) for any certified copy of any instrument or writing on 
158.8   file in the registrar's office, the same fees allowed by law to 
158.9   county recorders for like services; 
158.10     (9) for a noncertified copy of any instrument or writing on 
158.11  file in the office of the registrar of titles, or any specified 
158.12  page or part of it, an amount as determined by the county board 
158.13  for each page or fraction of a page specified.  If computer or 
158.14  microfilm printers are used to reproduce the instrument or 
158.15  writing, a like amount per image; 
158.16     (10) for filing two copies of any plat in the office of the 
158.17  registrar, $30; 
158.18     (11) for any other service under sections 508A.01 to 
158.19  508A.85, the fee the court shall determine; 
158.20     (12) for issuing a duplicate CPT pursuant to the directive 
158.21  of the examiner of titles in counties in which the compensation 
158.22  of the examiner is paid in the same manner as the compensation 
158.23  of other county employees, $50, plus $10 to memorialize; 
158.24     (13) for issuing a duplicate CPT pursuant to the directive 
158.25  of the examiner of titles in counties in which the compensation 
158.26  of the examiner is not paid by the county or pursuant to an 
158.27  order of the court, $10; 
158.28     (14) for filing a condominium plat or an amendment to it a 
158.29  declaration in accordance with chapter 515, $10 for each 
158.30  certificate upon which the document is registered and $30 for an 
158.31  amended floor plan filed in accordance with chapter 515; 
158.32     (15) for filing an amendment to a condominium declaration 
158.33  or plat in accordance with chapter 515A, or a common interest 
158.34  community declaration and plat or amendment complying with 
158.35  section 515B.2-110, subsection (c), $10 for each certificate 
158.36  upon which the document is registered and $30 for the filing of 
159.1   the condominium or common interest community plat or amendment; 
159.2      (16) for a copy of a condominium floor plan filed in 
159.3   accordance with chapter 515, a copy of a condominium plat filed 
159.4   pursuant to chapters 515 and in accordance with chapter 515A, or 
159.5   a copy of a common interest community plat complying with 
159.6   section 515B.2-110, subsection (c), the fee shall be $1 for each 
159.7   page of the floor plan, condominium plat, or common interest 
159.8   community plat with a minimum fee of $10; 
159.9      (16) for filing a condominium declaration and condominium 
159.10  plat or an amendment to it in accordance with chapter 515A, $10 
159.11  for each certificate upon which the document is registered and 
159.12  $30 for the filing of the condominium plat or an amendment to 
159.13  it; 
159.14     (17) in counties in which the compensation of the examiner 
159.15  of titles is paid in the same manner as the compensation of 
159.16  other county employees, for each parcel of land contained in the 
159.17  application for a CPT, as the number of parcels is determined by 
159.18  the examiner, a fee which is reasonable and which reflects the 
159.19  actual cost to the county, established by the board of county 
159.20  commissioners of the county in which the land is located; 
159.21     (18) for filing a registered land survey in triplicate in 
159.22  accordance with section 508A.47, subdivision 4, $30; 
159.23     (19) for furnishing a certified copy of a registered land 
159.24  survey in accordance with section 508A.47, subdivision 4, $10. 
159.25                             ARTICLE 4 
159.26     Section 1.  Minnesota Statutes 1998, section 359.02, is 
159.27  amended to read: 
159.28     359.02 [TERM.] 
159.29     A notary commissioned under section 359.01 holds office for 
159.30  five years, unless sooner removed by the governor or the 
159.31  district court, or by action of the commissioner.  Within 30 
159.32  days seven months before the expiration of the commission a 
159.33  notary may be reappointed for a new term to commence and to be 
159.34  designated in the new commission as beginning upon the day 
159.35  immediately following the date of the expiration.  The 
159.36  reappointment takes effect and is valid although the appointing 
160.1   governor may not be in the office of governor on the effective 
160.2   day. 
160.3      (a) All notary commissions issued before January 31, 1995, 
160.4   will expire on January 31, 1995. 
160.5      (b) All notary commissions issued after January 31, 1995, 
160.6   will expire at the end of the licensing period, which will end 
160.7   every fifth year following January 31, 1995. 
160.8      (c) All notary commissions issued during a licensing period 
160.9   expire at the end of that period as set forth in this section. 
160.10     Sec. 2.  Minnesota Statutes 1998, section 386.31, is 
160.11  amended to read: 
160.12     386.31 [CONSECUTIVE NUMBERING.] 
160.13     Each county recorder shall endorse plainly upon each 
160.14  instrument received for record or filing as soon as received a 
160.15  number consecutive, to the extent practicable, to the number 
160.16  affixed to the instrument next previously received and enter 
160.17  such number as a part of the entry relating to such instrument 
160.18  in all the indexes kept in the office and on the margin of the 
160.19  record of the instrument, and such number shall be prima facie 
160.20  evidence of priority of registration.  If more than one 
160.21  instrument shall be received at the same time, by mail or other 
160.22  like enclosure, the recorder shall affix such number in the 
160.23  order directed by the sender; if no direction be given, then in 
160.24  the order in which the instruments actually come to the 
160.25  recorder's hand in opening the enclosures. 
160.26     Sec. 3.  Minnesota Statutes 1998, section 507.421, is 
160.27  amended to read: 
160.28     507.421 [ESTATES AND TRUSTS; CONVEYANCES, SATISFACTIONS, 
160.29  GRANTS, AND RELEASES.] 
160.30     Subdivision 1.  [MADE TO ESTATE OR TRUST.] A conveyance or 
160.31  grant of an interest in real or personal property made to the 
160.32  estate of a decedent, to the estate of a ward or conservatee, to 
160.33  the ward's or conservatee's guardian or conservator, or to a 
160.34  trust, including a trust in the form of a pension or 
160.35  profit-sharing plan, that names the estate, the guardian, the 
160.36  conservator, or the trust as the grantee of the interest, is a 
161.1   valid and effective conveyance or grant of the interest to the 
161.2   personal representative, guardian, or conservator of the 
161.3   estate to the ward or conservatee, or to the trustee of the 
161.4   trust, in like manner and effect as if the personal 
161.5   representative, guardian, conservator ward, conservatee, or 
161.6   trustee had been named the grantee of the conveyance or grant. 
161.7      Subd. 2.  [MADE BY ESTATE OR TRUST.] A satisfaction, 
161.8   release, conveyance, or grant of an interest in real or personal 
161.9   property that is made by an estate, a guardian, a conservator, 
161.10  or trust described in subdivision 1, that names the estate, the 
161.11  guardian, the conservator, or trust as the holder or grantor of 
161.12  the interest, and that is executed by the personal 
161.13  representative, guardian, conservator ward, conservatee, or 
161.14  trustee authorized to execute the instrument, is a valid and 
161.15  effective satisfaction, release, conveyance, or grant of the 
161.16  interest, in like manner and effect as if the personal 
161.17  representative, guardian, conservator, or trustee had been named 
161.18  the holder or the grantor in the satisfaction, release, 
161.19  conveyance, or grant. 
161.20     Sec. 4.  Minnesota Statutes 1998, section 559.21, 
161.21  subdivision 2a, is amended to read: 
161.22     Subd. 2a.  [FOR POST 7/31/1985 CONTRACT.] If a default 
161.23  occurs in the conditions of a contract for the conveyance of 
161.24  real estate or an interest in real estate executed on or after 
161.25  August 1, 1985, that gives the seller a right to terminate it, 
161.26  the seller may terminate the contract by serving upon the 
161.27  purchaser or the purchaser's personal representatives or 
161.28  assigns, within or outside of the state, a notice specifying the 
161.29  conditions in which default has been made.  The notice must 
161.30  state that the contract will terminate 60 days, or a shorter 
161.31  period allowed in subdivision 4, after the service of the 
161.32  notice, unless prior to the termination date the purchaser: 
161.33     (1) complies with the conditions in default; 
161.34     (2) makes all payments due and owing to the seller under 
161.35  the contract through the date that payment is made; 
161.36     (3) pays the costs of service of the notice, including the 
162.1   reasonable costs of service by sheriff, public officer, or 
162.2   private process server; except payment of costs of service is 
162.3   not required unless the seller notifies the purchaser of the 
162.4   actual costs of service by certified mail to the purchaser's 
162.5   last known address at least ten days prior to the date of 
162.6   termination; 
162.7      (4) except for earnest money contracts, purchase 
162.8   agreements, and exercised options, pays two percent of any 
162.9   amount in default at the time of service, not including the 
162.10  final balloon payment, any taxes, assessments, mortgages, or 
162.11  prior contracts that are assumed by the purchaser; and 
162.12     (5) if the contract is executed on or after August 1, 1999, 
162.13  pays an amount to apply on attorneys' fees actually expended or 
162.14  incurred, of $250 if the amount in default is less than $1,000, 
162.15  and of $500 if the amount in default is $1,000 or more; or if 
162.16  the contract is executed before August 1, 1999, pays an amount 
162.17  to apply on attorneys' fees actually expended or incurred, of 
162.18  $125 if the amount in default is less than $750, and of $250 if 
162.19  the amount in default is $750 or more; except that no amount for 
162.20  attorneys' fees is required to be paid unless some part of the 
162.21  conditions of default has existed for at least 30 days prior to 
162.22  the date of service of the notice.  
162.23     Sec. 5.  Minnesota Statutes 1998, section 582.32, 
162.24  subdivision 5, is amended to read: 
162.25     Subd. 5.  [FORECLOSURE PROCEDURE; NOTICE TO CREDITORS.] (a) 
162.26  After the date of agreement, the mortgagee may proceed to 
162.27  foreclose the mortgage in accordance with the laws generally 
162.28  applicable to foreclosure by advertisement including this 
162.29  chapter and chapter 580, except as otherwise provided in this 
162.30  section.  
162.31     (b) At least 14 days before the date of sale, the mortgagee 
162.32  shall:  
162.33     (1) serve the persons in possession of the real estate with 
162.34  notice of the voluntary foreclosure sale under this section in 
162.35  the same manner as in a foreclosure by advertisement as provided 
162.36  in section 580.03; and 
163.1      (2) mail notice of the voluntary foreclosure sale under 
163.2   this section to each holder of a junior lien who has filed or 
163.3   recorded a request for notice under section 580.032.  
163.4      (c) The mortgagee shall publish notice of the voluntary 
163.5   foreclosure sale under this section in the same manner as in a 
163.6   foreclosure by advertisement as provided in section 580.03 for 
163.7   four consecutive weeks.  The notice must include all information 
163.8   required under section 580.04, clauses (1) to (6), the date of 
163.9   agreement, and shall state that each holder of a junior lien may 
163.10  redeem in the order and manner provided in subdivision 9, 
163.11  beginning after the expiration of the mortgagor's two-month 
163.12  redemption period under this section.  
163.13     (d) The mortgagor's redemption period is two months from 
163.14  the date of sale, except that if the real estate is subject to a 
163.15  federal tax lien under which the United States is entitled to a 
163.16  120-day redemption period under section 7425(d)(1) of the 
163.17  Internal Revenue Code, as amended, the mortgagor's redemption 
163.18  period is 120 days from the date of sale.  The certificate of 
163.19  sale must indicate the redemption period applicable under this 
163.20  paragraph. 
163.21     Sec. 6.  [EFFECTIVE DATE.] 
163.22     Section 1 is effective July 1, 1999.