1.1 	A bill for an act
1.2 	relating to real property; making clarifying, technical, and conforming changes to 
1.3 	the Minnesota Common Interest Ownership Act; providing for certain exemptions; 
1.4 	providing for number of directors for certain associations; clarifying certain 
1.5 	insurance policies;amending Minnesota Statutes 2024, sections 515B.1-102; 
1.6 	515B.1-103; 515B.1-116; 515B.2-101; 515B.2-102; 515B.2-104; 515B.2-105; 
1.7 	515B.2-108; 515B.2-110; 515B.2-1101; 515B.2-113; 515B.2-118; 515B.2-119; 
1.8 	515B.2-121; 515B.2-124; 515B.2-125; 515B.3-102; 515B.3-1041; 515B.3-105; 
1.9 	515B.3-1051; 515B.3-106; 515B.3-107; 515B.3-112; 515B.3-113; 515B.3-1141; 
1.10 	515B.3-1151; 515B.3-116; 515B.4-101; 515B.4-102; 515B.4-1021; 515B.4-103; 
1.11 	515B.4-104; 515B.4-105; 515B.4-106; 515B.4-107; 515B.4-113; 515B.4-116; 
1.12 	515B.4-118; Minnesota Statutes 2025 Supplement, section 515B.3-103.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. Minnesota Statutes 2024, section 515B.1-102, is amended to read:
1.15 	515B.1-102 APPLICABILITY.
1.16 	(a) Except as provided in this section, this chapter, and not chapters 515 and 515A, 
1.17 	applies to all common interest communities created within this state on and after June 1, 
1.18 	1994.
1.19 	(b) The applicability of this chapter to common interest communities created prior to 
1.20 	June 1, 1994, shall be as follows:
1.21 	(1) This chapter shall apply to condominiums created under chapter 515A with respect 
1.22 	to events and circumstances occurring on and after June 1, 1994; provided (i) that this 
1.23 	chapter shall not invalidate the declarations, bylaws or condominium plats of those 
1.24 	condominiums, and (ii) that chapter 515A, and not this chapter, shall govern all rights and 
1.25 	obligations of a declarant of a condominium created under chapter 515A, and the rights and 
1.26 	claims of unit owners against that declarant.
2.1 	(2) The following sections in this chapter apply to condominiums created under chapter 
2.2 	515: 515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and Taxation); 
2.3 	515B.1-106 (Applicability of Local Requirements); 515B.1-107 (Eminent Domain); 
2.4 	515B.1-108 (This Chapter Prevails; Supplemental Law); 515B.1-109 (Construction Against 
2.5 	Implicit Repeal); 515B.1-112 (Unconscionable Agreement or Term of Contract); 515B.1-113 
2.6 	(Obligation of Good Faith); 515B.1-114 (Remedies to be Liberally Administered); 
2.7 	515B.1-115 (Notice); 515B.1-116 (Recording); 515B.2-103 (Construction and Validity of 
2.8 	Declaration and Bylaws); 515B.2-104 (Description of Units); 515B.2-108 (d) 515B.2-108(d)
2.9 	(Allocation of Interests); 515B.2-109 (f) 515B.2-109(f) (Common Elements and Limited 
2.10 	Common Elements); 515B.2-112 (Subdivision, Combination, or Conversion of Units); 
2.11 	515B.2-113 (Alteration of Units); 515B.2-114 (Relocation of Boundaries Between Adjoining 
2.12 	Units); 515B.2-115 (Minor Variations in Boundaries); 515B.2-118 (Amendment of 
2.13 	Declaration); 515B.2-119 (Termination of Common Interest Community); 515B.3-102 
2.14 	(Powers of Unit Owners' Association); 515B.3-103 (a) 515B.3-103(a), (b), and (g) (Board 
2.15 	of Directors, Officers, and Declarant Control); 515B.3-107 (Upkeep of Common Interest 
2.16 	Community); 515B.3-108 (Meetings); 515B.3-109 (Quorums); 515B.3-110 (Voting; Proxies); 
2.17 	515B.3-111 (Tort and Contract Liability); 515B.3-112 (Conveyance of, or Creation of 
2.18 	Security Interests in, Common Elements); 515B.3-113 (Insurance); 515B.3-114 (Reserves; 
2.19 	Surplus Funds); 515B.3-1141 (Replacement Reserves); 515B.3-115 (c) 515B.3-115(c), (e), 
2.20 	(f), (g), (h), and (i) (Assessments for Common Expenses); 515B.3-116 (Lien for 
2.21 	Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association Records); 515B.3-119 
2.22 	(Association as Trustee); 515B.3-121 (Accounting Controls); 515B.4-107 (Resale of Units); 
2.23 	515B.4-108 (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of Action; 
2.24 	Attorney's Fees). Section 515B.1-103 (Definitions) shall apply to the extent necessary in 
2.25 	construing any of the sections referenced in this section. Sections 515B.1-105, 515B.1-106, 
2.26 	515B.1-107, 515B.1-116, 515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110, 
2.27 	515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 515B.3-121, 515B.4-107, 
2.28 	515B.4-108, and 515B.4-116 apply only with respect to events and circumstances occurring 
2.29 	on and after June 1, 1994. All other sections referenced in this section apply only with 
2.30 	respect to events and circumstances occurring after July 31, 1999. A section referenced in 
2.31 	this section does not invalidate the declarations, bylaws or condominium plats of 
2.32 	condominiums created before August 1, 1999. But all sections referenced in this section 
2.33 	prevail over the declarations, bylaws, CIC plats, rules and regulations under them, of 
2.34 	condominiums created before August 1, 1999, except to the extent that this chapter defers 
2.35 	to the declarations, bylaws, CIC plats, or rules and regulations issued under them.
3.1 	(3) This chapter shall not apply to cooperatives and planned communities created prior 
3.2 	to June 1, 1994, or to planned communities that were created on or after June 1, 1994, and 
3.3 	before August 1, 2006, and that consist of more than two but fewer than 13 units; except 
3.4 	by election pursuant to subsection (d), and except that sections 515B.1-116, subsections (a)
3.5 	515B.1-116(a), (c), (d), and (e), 515B.4-107, and 515B.4-108, apply to all planned 
3.6 	communities and cooperatives regardless of when they are created, unless they are exempt 
3.7 	under subsection (e).
3.8 	(c) This chapter shall not invalidate any amendment to the declaration, bylaws or 
3.9 	condominium plat of any condominium created under chapter 515 or 515A if the amendment 
3.10 	was recorded before June 1, 1994. Any amendment recorded on or after June 1, 1994, shall 
3.11 	be adopted in conformity with the procedures and requirements specified by those instruments 
3.12 	and by this chapter. If the amendment grants to any person any rights, powers or privileges 
3.13 	permitted by this chapter, all correlative obligations, liabilities and restrictions contained 
3.14 	in this chapter shall also apply to that person.
3.15 	(d) Any condominium created under chapter 515, any planned community or cooperative 
3.16 	which would be exempt from this chapter under subsection (e), or any planned community 
3.17 	or cooperative created prior to June 1, 1994, or any planned community that was created 
3.18 	on or after June 1, 1994, and prior to August 1, 2006, and that consists of more than two 
3.19 	but fewer than 13 units, may elect to be subject to this chapter, as follows:
3.20 	(1) The election shall be accomplished by recording a declaration or amended declaration, 
3.21 	and a new or amended CIC plat where required, and by approving bylaws or amended 
3.22 	bylaws, which conform to the requirements of this chapter, and which, in the case of 
3.23 	amendments, are adopted in conformity with the procedures and requirements specified by 
3.24 	the existing declaration and bylaws of the common interest community, and by any applicable 
3.25 	statutes.
3.26 	(2) In a condominium, the preexisting condominium plat shall be the CIC plat and an 
3.27 	amended CIC plat shall be required only if the amended declaration or bylaws contain 
3.28 	provisions inconsistent with the preexisting condominium plat. The condominium's CIC 
3.29 	number shall be the apartment ownership number or condominium number originally 
3.30 	assigned to it by the recording officer. In a cooperative in which the unit owners' interests 
3.31 	are characterized as real estate, a CIC plat shall be required. In a planned community, the 
3.32 	preexisting plat or registered land survey recorded pursuant to chapter 505, 508, or 508A, 
3.33 	or the part of the plat or registered land survey upon which the common interest community 
3.34 	is located, shall be the CIC plat.
4.1 	(3) The amendment shall comply with section 515B.2-118(a)(3) and (c); except that the 
4.2 	unanimous consent of the unit owners shall not be required for (i) a clarification of the unit 
4.3 	boundary description if the clarified boundary description is substantially consistent with 
4.4 	the preexisting CIC plat, or (ii) changes from common elements to limited common elements 
4.5 	that occur by operation of section 515B.2-109(c) and (d).
4.6 	(4) Except as permitted by paragraph (3), no declarant, affiliate of declarant, association, 
4.7 	master association nor unit owner may acquire, increase, waive, reduce or revoke any 
4.8 	previously existing warranty rights or causes of action that one of said persons has against 
4.9 	any other of said persons by reason of exercising the right of election under this subsection.
4.10 	(5) A common interest community which elects to be subject to this chapter may, as a 
4.11 	part of the election process, change its form of ownership by complying with section 
4.12 	515B.2-123.
4.13 	(e) Except as otherwise provided in this subsection, this chapter shall not apply, except 
4.14 	by election pursuant to subsection (d), to the following:
4.15 	(1) a planned community which consists of two units, which utilizes a CIC plat complying 
4.16 	with section 515B.2-110(d)(1) and (2), or section 515B.2-1101(d)(1) and (2), which is not 
4.17 	subject to any rights to subdivide or convert units or to add additional real estate, and which 
4.18 	is not subject to a master association;
4.19 	(2) a common interest community that consists solely of platted lots or other separate 
4.20 	parcels of real estate designed or utilized for detached single family dwellings or agricultural 
4.21 	purposes, with or without common property, where no association or master association 
4.22 	has an obligation to maintain any building containing a dwelling or any agricultural building 
4.23 	located or to be located on such platted lots or parcels; except that section 515B.4-101(e) 
4.24 	shall apply to the sale of such platted lots or parcels of real estate if the common interest 
4.25 	community is or will be subject to a master declaration;
4.26 	(3) a cooperative where, at the time of creation of the cooperative, the unit owners' 
4.27 	interests in the dwellings as described in the declaration consist solely of proprietary leases 
4.28 	having an unexpired term of fewer than 20 years, including renewal options;
4.29 	(4) planned communities utilizing a CIC plat complying with section 515B.2-110(d)(1) 
4.30 	and (2), or section 515B.2-1101(d)(1) and (2), and cooperatives, which are limited by the 
4.31 	declaration to nonresidential uses; or
5.1 	(5) real estate subject only to an instrument or instruments filed primarily for the purpose 
5.2 	of creating or modifying rights with respect to access, utilities, parking, ditches, drainage, 
5.3 	or irrigation.; or
5.4 	(6) if all of the real estate is restricted to nonresidential uses, real estate subject only to 
5.5 	an instrument or instruments filed primarily for the purpose of creating or modifying rights 
5.6 	with respect to access, utilities, parking, ditches, drainage, irrigation, insurance, or repair 
5.7 	or replacement following a casualty loss.
5.8 	(f) Section 515B.4-101(e) applies to any platted lot or other parcel of real estate that is 
5.9 	subject to a master declaration and is not subject to or is exempt from this chapter.
5.10 	(g) Section Sections515B.1-106and section 515B.2-118, subsections (a)(5)
5.11 	515B.2-118(a)(5), (a)(7), and (d), shall apply to all common interest communities.
5.12 	(h) Sections 515B.1-103(33a), 515B.2-110, 515B.3-105, 515B.3-115, 515B.4-102, and 
5.13 	515B.4-115 apply only to common interest communities created before August 1, 2010. 
5.14 	Sections 515B.1-103 (33b) 515B.1-103(33b), 515B.2-1101, 515B.3-1051, 515B.3-1151, 
5.15 	515B.4-1021, and 515B.4-1151 apply only to common interest communities created on or 
5.16 	after August 1, 2010.
5.17 	(i) Section 515B.3-114 applies to common interest communities only for the association's 
5.18 	fiscal years commencing before January 1, 2012. Section 515B.3-1141 applies to common 
5.19 	interest communities only for the association's fiscal years commencing on or after January 
5.20 	1, 2012.
5.21 	(j) Section 515B.3-104 applies only to transfers of special declarant rights that are 
5.22 	effective before August 1, 2010. Section 515B.3-1041, subsections (a) through
5.23 	515B.3-1041(a) to (i), apply only to transfers of special declarant rights that are effective 
5.24 	on or after August 1, 2010. Section 515B.3-1041, subsections (j) 515B.3-1041(j) and (k), 
5.25 	apply only to special declarant rights reserved in a declaration that is first recorded on or 
5.26 	after August 1, 2010.
5.27 	(k) Sections 515B.1-103(11a) and (16a), 515B.3-102(d) and (e), 515B.4-113(h), and 
5.28 	515B.4-116(c) apply only to common interest communities created on or after August 1, 
5.29 	2017.

6.1 	Sec. 2. Minnesota Statutes 2024, section 515B.1-103, is amended to read:
6.2 	515B.1-103 DEFINITIONS.
6.3 	In the declaration and bylaws, unless specifically provided otherwise or the context 
6.4 	otherwise requires, and in this chapter:
6.5 	(1) "Additional real estate" means real estate that may be added to a flexible common 
6.6 	interest community.
6.7 	(2) "Affiliate of a declarant" means any person who controls, is controlled by, or is under 
6.8 	common control with a declarant.
6.9 	(A) A person "controls" a declarant if the person (i) is a general partner, officer, director, 
6.10 	or employer of the declarant, (ii) directly or indirectly or acting in concert with one or more 
6.11 	other persons, or through one or more subsidiaries, owns, controls, holds with power to 
6.12 	vote, or holds proxies representing, more than 20 percent of the voting interest in the 
6.13 	declarant, (iii) controls in any manner the election of a majority of the directors of the 
6.14 	declarant, or (iv) has contributed more than 20 percent of the capital of the declarant.
6.15 	(B) A person "is controlled by" a declarant if the declarant (i) is a general partner, officer, 
6.16 	director, or employer of the person, (ii) directly or indirectly or acting in concert with one 
6.17 	or more other persons, or through one or more subsidiaries, owns, controls, holds with 
6.18 	power to vote, or holds proxies representing, more than 20 percent of the voting interest in 
6.19 	the person, (iii) controls in any manner the election of a majority of the directors of the 
6.20 	person, or (iv) has contributed more than 20 percent of the capital of the person.
6.21 	(C) Control does not exist if the powers described in this subsection are held solely as 
6.22 	a security interest and have not been exercised.
6.23 	(3) "Allocated interests" means the following interests allocated to each unit: (i) in a 
6.24 	condominium, the undivided interest in the common elements, the common expense liability, 
6.25 	and votes in the association; (ii) in a cooperative, the common expense liability and the 
6.26 	ownership interest and votes in the association; and (iii) in a planned community, the common 
6.27 	expense liability and votes in the association.
6.28 	(4) "Association" means the unit owners' association organized under section 515B.3-101.
6.29 	(5) "Board" means the body, regardless of name, designated in the articles of 
6.30 	incorporation, bylaws or declaration to act on behalf of the association, or on behalf of a 
6.31 	master association when so identified.
7.1 	(6) "CIC plat" means a common interest community plat described in section 515B.2-110
7.2 	or 515B.2-1101.
7.3 	(7) "Common elements" means all portions of the common interest community other 
7.4 	than the units.
7.5 	(8) "Common expenses" means expenditures made or liabilities incurred by or on behalf 
7.6 	of the association, or master association when so identified, together with any allocations 
7.7 	to reserves.
7.8 	(9) "Common expense liability" means the liability for common expenses allocated to 
7.9 	each unit pursuant to section 515B.2-108.
7.10 	(10) "Common interest community" or "CIC" means contiguous or noncontiguous real 
7.11 	estate within Minnesota that is subject to an instrument which obligates persons owning a 
7.12 	separately described parcel of the real estate, or occupying a part of the real estate pursuant 
7.13 	to a proprietary lease, by reason of their ownership or occupancy, to pay for (i) real estate 
7.14 	taxes levied against; (ii) insurance premiums payable with respect to; (iii) maintenance of; 
7.15 	or (iv) construction, maintenance, repair or replacement of improvements located on, one 
7.16 	or more parcels or parts of the real estate other than the parcel or part that the person owns 
7.17 	or occupies. Real estate which satisfies the definition of a common interest community is 
7.18 	a common interest community whether or not it is subject to this chapter. Real estate subject 
7.19 	to a master declaration, regardless of when the master declaration was recorded, shall not 
7.20 	collectively constitute a separate common interest community unless so stated in the master 
7.21 	declaration.
7.22 	(11) "Condominium" means a common interest community in which (i) portions of the 
7.23 	real estate are designated as units, (ii) the remainder of the real estate is designated for 
7.24 	common ownership solely by the owners of the units, and (iii) undivided interests in the 
7.25 	common elements are vested in the unit owners.
7.26 	(11a) "Construction defect claim" means a civil action or an arbitration proceeding based 
7.27 	on any legal theory including, but not limited to, claims under chapter 327A for damages, 
7.28 	indemnity, or contribution brought against a development party to assert a claim, 
7.29 	counterclaim, cross-claim, or third-party claim for damages or loss to, or the loss of use of, 
7.30 	real or personal property caused by a defect in the initial design or construction of an 
7.31 	improvement to real property that is part of a common interest community, including an 
7.32 	improvement that is constructed on additional real estate pursuant to section 515B.2-111. 
7.33 	"Construction defect claim" does not include claims related to subsequent maintenance, 
7.34 	repairs, alterations, or modifications to, or the addition of, improvements that are part of 
8.1 	the common interest community, and that are contracted for by the association or a unit 
8.2 	owner.
8.3 	(12) "Conversion property" means real estate on which is located a building that at any 
8.4 	time within two years before creation of the common interest community was occupied, in 
8.5 	whole or in part, for (i) residential use or (ii) for residential rental purposes by persons other 
8.6 	than purchasers and persons who occupy with the consent of purchasers.
8.7 	(13) "Cooperative" means a common interest community in which the real estate is 
8.8 	owned by an association, each of whose members is entitled to a proprietary lease by virtue 
8.9 	of the member's ownership interest in the association.
8.10 	(14) "Dealer" means a person in the business of selling units for the person's own account.
8.11 	(15) "Declarant" means:
8.12 	(i) if the common interest community has been created, (A) any person who has executed 
8.13 	a declaration, or a supplemental declaration or amendment to a declaration adding additional 
8.14 	real estate, except secured parties, a spouse holding only an inchoate interest, persons whose 
8.15 	interests in the real estate will not be transferred to unit owners, or, in the case of a leasehold 
8.16 	common interest community, a lessor who possesses no special declarant rights and who 
8.17 	is not an affiliate of a declarant who possesses special declarant rights, or (B) any person 
8.18 	who reserves, or succeeds under section 515B.3-104 or 515B.3-1041 to any special declarant 
8.19 	rights;
8.20 	(ii) any person or persons acting in concert who have offered prior to creation of the 
8.21 	common interest community to transfer their interest in a unit to be created and not previously 
8.22 	transferred; or
8.23 	(iii) if (A) a unit has been restricted to nonresidential use and sold to a purchaser who 
8.24 	has agreed to modify or waive, in whole or in part, sections 515B.4-101 to 515B.4-118, and 
8.25 	(B) the restriction expires or is modified or terminated such that residential use of the unit 
8.26 	is permitted, the unit owner at the time the restriction expires or is so modified or terminated 
8.27 	is a declarant with respect to that unit and any improvements subject to use rights by a 
8.28 	purchaser of the unit.
8.29 	(16) "Declaration" means any instrument, however denominated, that creates a common 
8.30 	interest community.
8.31 	(16a) "Development party" means an architect, contractor, construction manager, 
8.32 	subcontractor, developer, declarant, engineer, or private inspector performing or furnishing 
8.33 	the design, supervision, inspection, construction, coordination, or observation of the 
9.1 	construction of any improvement to real property that is part of a common interest 
9.2 	community, or any of the person's affiliates, officers, directors, shareholders, members, or 
9.3 	employees.
9.4 	(17) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any legal 
9.5 	or equitable interest in the common interest community, but the term does not include the 
9.6 	transfer or release of a security interest.
9.7 	(17a) "First mortgage" means either (i) if there is only one mortgage encumbering title 
9.8 	to a unit, that mortgage, or (ii) if there are multiple mortgages encumbering title to a unit, 
9.9 	the mortgage that is first in priority, whether by operation of applicable law or by a properly 
9.10 	recorded agreement.
9.11 	(17b) "First mortgagee" means the holder of a first mortgage.
9.12 	(18) "Flexible common interest community" means a common interest community to 
9.13 	which additional real estate may be added.
9.14 	(19) "Leasehold common interest community" means a common interest community in 
9.15 	which all or a portion of the real estate is subject to a lease the expiration or termination of 
9.16 	which will terminate the common interest community or reduce its size.
9.17 	(20) "Limited common element" means a portion of the common elements allocated by 
9.18 	the declaration or by operation of section 515B.2-109(c) or (d) for the exclusive use of one 
9.19 	or more but fewer than all of the units.
9.20 	(21) "Master association" means an entity created on or after June 1, 1994, that directly 
9.21 	or indirectly exercises any of the powers set forth in section 515B.3-102 on behalf of one 
9.22 	or more members described in section 515B.2-121(b), (i), (ii) or (iii), whether or not it also 
9.23 	exercises those powers on behalf of one or more property owners' associations described 
9.24 	in section 515B.2-121(b)(iv). A person (i) hired by an association to perform maintenance, 
9.25 	repair, accounting, bookkeeping or management services, or (ii) granted authority under an 
9.26 	instrument recorded primarily for the purpose of creating rights or obligations with respect 
9.27 	to utilities, access, drainage, or recreational amenities, is not, solely by reason of that 
9.28 	relationship, a master association.
9.29 	(22) "Master declaration" means a written instrument, however named, (i) recorded on 
9.30 	or after June 1, 1994, and (ii) complying with section 515B.2-121, subsection (e)
9.31 	515B.2-121(e).
9.32 	(23) "Master developer" means a person who is designated in the master declaration as 
9.33 	a master developer or, in the absence of such a designation, the owner or owners of the real 
10.1 	estate subject to the master declaration at the time the master declaration is recorded, except 
10.2 	(i) secured parties and (ii) a spouse holding only an inchoate interest. A master developer 
10.3 	is not a declarant unless the master declaration states that the real estate subject to the master 
10.4 	declaration collectively is or collectively will be a separate common interest community.
10.5 	(24) "Period of declarant control" means the time period provided for in section 
10.6 	515B.3-103(c) during which the declarant may appoint and remove officers and directors 
10.7 	of the association.
10.8 	(25) "Person" means an individual, corporation, limited liability company, partnership, 
10.9 	trustee under a trust, personal representative, guardian, conservator, government, 
10.10 	governmental subdivision or agency, or other legal or commercial entity capable of holding 
10.11 	title to real estate.
10.12 	(26) "Planned community" means a common interest community that is not a 
10.13 	condominium or a cooperative. A condominium or cooperative may be a part of a planned 
10.14 	community.
10.15 	(27) "Proprietary lease" means an agreement with a cooperative association whereby a 
10.16 	member of the association is entitled to exclusive possession of a unit in the cooperative.
10.17 	(28) "Purchaser" means a person, other than a declarant, who by means of a voluntary 
10.18 	transfer acquires a legal or equitable interest in a unit other than (i) a leasehold interest of 
10.19 	less than 20 years, including renewal options, or (ii) a security interest.
10.20 	(29) "Real estate" means any fee simple, leasehold or other estate or interest in, over, 
10.21 	or under land, including structures, fixtures, and other improvements and interests that by 
10.22 	custom, usage, or law pass with a conveyance of land though not described in the contract 
10.23 	of sale or instrument of conveyance. "Real estate" may include spaces with or without upper 
10.24 	or lower boundaries, or spaces without physical boundaries.
10.25 	(30) "Residential use" means use as a dwelling, whether primary, secondary or seasonal, 
10.26 	but not (i) transient use such as hotels or motels, (ii) use for residential rental purposes if 
10.27 	the individual dwellings are not separate units or if the individual dwellings are not located 
10.28 	on separate parcels of real estate. For purposes of this chapter, a unit is restricted to 
10.29 	nonresidential use if the unit is subject to a restriction that prohibits residential use as defined 
10.30 	in this section whether or not the restriction also prohibits the uses described in this paragraph.
10.31 	(31) "Secured party" means the person owning a security interest as defined in paragraph 
10.32 	(32).
11.1 	(32) "Security interest" means a perfected interest in real estate or personal property, 
11.2 	created by contract or conveyance, which secures payment or performance of an obligation. 
11.3 	The term includes a mortgagee's interest in a mortgage, a vendor's interest in a contract for 
11.4 	deed, a lessor's interest in a lease intended as security, a holder's interest in a sheriff's 
11.5 	certificate of sale during the period of redemption, an assignee's interest in an assignment 
11.6 	of leases or rents intended as security, in a cooperative, a lender's interest in a member's 
11.7 	ownership interest in the association, a pledgee's interest in the pledge of an ownership 
11.8 	interest, or any other interest intended as security for an obligation under a written agreement.
11.9 	(33a) This definition of special declarant rights applies only to common interest 
11.10 	communities created before August 1, 2010. "Special declarant rights" means rights reserved 
11.11 	in the declaration for the benefit of a declarant to:
11.12 	(i) complete improvements indicated on the CIC plat, planned by the declarant consistent 
11.13 	with the disclosure statement or authorized by the municipality in which the CIC is located;
11.14 	(ii) add additional real estate to a common interest community;
11.15 	(iii) subdivide or combine units, or convert units into common elements, limited common 
11.16 	elements, or units;
11.17 	(iv) maintain sales offices, management offices, signs advertising the common interest 
11.18 	community, and models;
11.19 	(v) use easements through the common elements for the purpose of making improvements 
11.20 	within the common interest community or any additional real estate;
11.21 	(vi) create a master association and provide for the exercise of authority by the master 
11.22 	association over the common interest community or its unit owners;
11.23 	(vii) merge or consolidate a common interest community with another common interest 
11.24 	community of the same form of ownership; or
11.25 	(viii) appoint or remove any officer or director of the association, or the master association 
11.26 	where applicable, during any period of declarant control.
11.27 	(33b) This definition of special declarant rights applies only to common interest 
11.28 	communities created on or after August 1, 2010. "Special declarant rights" means rights 
11.29 	reserved in the declaration for the benefit of a declarant and expressly identified in the 
11.30 	declaration as special declarant rights. Such special declarant rights may include but are not 
11.31 	limited to the following:
12.1 	(i) to complete improvements indicated on the CIC plat, planned by the declarant 
12.2 	consistent with the disclosure statement or authorized by the municipality in which the 
12.3 	common interest community is located, and to have and use easements for itself and its 
12.4 	employees, agents, and contractors through the common elements for such purposes;
12.5 	(ii) to add additional real estate to a common interest community;
12.6 	(iii) to subdivide or combine units, or convert units into common elements, limited 
12.7 	common elements and/or units, pursuant to section 515B.2-112;
12.8 	(iv) to maintain and use sales offices, management offices, signs advertising the common 
12.9 	interest community, and models, and to have and use easements for itself and its employees, 
12.10 	agents, and invitees through the common elements for such purposes;
12.11 	(v) to appoint or remove any officer or director of the association during any period of 
12.12 	declarant control;
12.13 	(vi) to utilize an alternate common expense plan as provided in section 515B.3-115(a)(2)
12.14 	515B.3-1151(a)(2);
12.15 	(vii) to grant common element licenses as provided in section 515B.2-109(e); or
12.16 	(viii) to review, and approve or disapprove, the exterior design, materials, size, site 
12.17 	location, and other exterior features of buildings and other structures, landscaping and other 
12.18 	exterior improvements, located within the common interest community, and any 
12.19 	modifications or alterations thereto.
12.20 	Special declarant rights shall not be reserved or utilized for the purpose of evading any 
12.21 	limitation or obligation imposed on declarants by this chapter.
12.22 	(34) "Time share" means a right to occupy a unit or any of several units during three or 
12.23 	more separate time periods over a period of at least three years, including renewal options, 
12.24 	whether or not coupled with a fee title interest in the common interest community or a 
12.25 	specified portion thereof.
12.26 	(35) "Unit" means a portion of a common interest community the boundaries of which 
12.27 	are described in the common interest community's declaration and which is intended for 
12.28 	separate ownership, or separate occupancy pursuant to a proprietary lease.
12.29 	(36) "Unit identifier" means one or more English letters or, one or more Arabic numerals, 
12.30 	or a combination thereof, which identify only one unit in a common interest community 
12.31 	and which meet the requirements of section 515B.2-104.
13.1 	(37) "Unit owner" means a declarant or other person who owns a unit, a lessee under a 
13.2 	proprietary lease, or a lessee of a unit in a leasehold common interest community whose 
13.3 	lease expires simultaneously with any lease the expiration or termination of which will 
13.4 	remove the unit from the common interest community, but does not include a secured party. 
13.5 	In a common interest community, the declarant is the unit owner of a unit until that unit has 
13.6 	been conveyed to another person.

13.7 	Sec. 3. Minnesota Statutes 2024, section 515B.1-116, is amended to read:
13.8 	515B.1-116 RECORDING.
13.9 	(a) A declaration, bylaws, a supplemental declaration, any amendment to a declaration, 
13.10 	supplemental declaration, or bylaws, and any other instrument affecting a common interest 
13.11 	community shall be entitled to be recorded. In those counties which have a tract index, the 
13.12 	county recorder shall enter the declaration in the tract index for each unit or other tract 
13.13 	affected. The county recorder shall not enter the declaration in the tract index for lands 
13.14 	described as additional real estate, unless such lands are added to the common interest 
13.15 	community pursuant to section 515B.2-111. The registrar of titles shall file the declaration 
13.16 	in accordance with section 508.351 or 508A.351. The registrar of titles shall not file the 
13.17 	declaration upon certificates of title for lands described as additional real estate, unless such 
13.18 	lands are added to the common interest community pursuant to section 515B.2-111.
13.19 	(b) The recording officer shall upon request promptly assign a number (CIC number) 
13.20 	to a common interest community to be formed or to a common interest community resulting 
13.21 	from the merger of two or more common interest communities.
13.22 	(c) Documents recorded pursuant to this chapter shall in the case of registered land be 
13.23 	filed, and references to the recording of documents shall mean filed in the case of registered 
13.24 	land.
13.25 	(d) Except as provided in section 515B.2-109, 515B.2-112, 515B.2-114, or 515B.2-124, 
13.26 	if a recorded this chapter, a declaration, or any other document relating to a common interest 
13.27 	community or a master association purports to require a certain vote or signatures approving 
13.28 	any restatement or amendment of the document by requires that a certain number or 
13.29 	percentage of unit owners, association members, parcel owners, master association members,
13.30 	or secured parties, and if the amendment or restatement is to be recorded, vote in favor of, 
13.31 	approve, or consent to an amendment to a declaration or to any other recorded document 
13.32 	relating to a common interest community, the vote, approval, or consent to the amendment 
13.33 	or other recorded document, or the deemed consent pursuant to section 515B.2-118(a)(5) 
13.34 	or (7), may be established either by: (i) having the requisite number or percentage of unit 
14.1 	owners, association members, parcel owners, master association members, or secured parties, 
14.2 	as applicable, execute the amendment or other recorded document; or (ii) having the president 
14.3 	or other authorized officer of the association or master association execute the amendment 
14.4 	on behalf of the association and attaching to the amendment or other recorded document
14.5 	an affidavit of the president or secretary of the association or master association stating that 
14.6 	the required vote or signatures have been obtained shall be attached to the document to be 
14.7 	recorded and number or percentage of unit owners, association members, parcel owners, 
14.8 	master association members, or secured parties have voted in favor of, approved, or consented 
14.9 	to, or, pursuant to section 515B.2-118(a)(5) or (7), are deemed to have consent to, the 
14.10 	amendment or other recorded document. An affidavit pursuant to this paragraph shall 
14.11 	constitute prima facie evidence of the representations statements contained therein.
14.12 	(e) Except as permitted under this subsection, a recording officer shall not file or record 
14.13 	a declaration creating a new common interest community, unless the county treasurer has 
14.14 	certified that the property taxes payable in the current year for the real estate included in 
14.15 	the proposed common interest community have been paid. This certification is in addition 
14.16 	to the certification for delinquent taxes required by section 272.12. In the case of preexisting 
14.17 	common interest communities, the recording officer shall accept, file, and record the 
14.18 	following instruments, without requiring a certification as to the current or delinquent taxes 
14.19 	on any of the units in the common interest community: (i) a declaration or amended 
14.20 	declaration subjecting the common interest community to this chapter; (ii) a declaration 
14.21 	changing the form of a common interest community pursuant to section 515B.2-123; or (iii) 
14.22 	an amendment to or restatement of the declaration, bylaws, or CIC plat; provided, that if 
14.23 	the declaration, amendment, or restatement changes the boundaries of an existing tax parcel, 
14.24 	then the recording officer shall require a certification as to the payment of current and 
14.25 	delinquent taxes on any tax parcel the boundaries of which are changed.

14.26 	Sec. 4. Minnesota Statutes 2024, section 515B.2-101, is amended to read:
14.27 	515B.2-101 CREATION OF COMMON INTEREST COMMUNITIES.
14.28 	(a) On and after June 1, 1994, a common interest community subject to this chapter may 
14.29 	be created only as follows:
14.30 	(1) A condominium may be created only by recording a declaration.
14.31 	(2) A cooperative may be created only by recording a declaration and by immediately 
14.32 	thereafter recording a conveyance of the real estate subject to that declaration to the 
14.33 	association.
15.1 	(3) A planned community which includes common elements may be created only by 
15.2 	recording a declaration. The declarant shall, immediately thereafter, record a conveyance 
15.3 	of the common elements subject to that declaration, other than common elements described 
15.4 	in section 515B.2-109(c) and (d), to the association; provided, that a delay in or failure to 
15.5 	record the conveyance shall have no effect on the validity of the common interest community.
15.6 	(4) A planned community without common elements may be created only by recording 
15.7 	a declaration.
15.8 	(b) Except as otherwise provided in this chapter, the declaration shall be executed by 
15.9 	the owner of the real estate subject to the declaration at the time the declaration is recorded, 
15.10 	except vendors under contracts for deed, and by every lessor of a lease the expiration or 
15.11 	termination of which will terminate the common interest community. The declaration shall 
15.12 	be recorded in every county in which any portion of the common interest community is 
15.13 	located. Failure of any party not required to execute a declaration, but having a recorded 
15.14 	interest in the real estate subject to the declaration at the time the declaration is recorded, 
15.15 	to join in the declaration shall have no effect on the validity of the common interest 
15.16 	community; provided that the party is not bound by the declaration unless the party (i) 
15.17 	executes a recorded instrument that utilizes a legal description of part or all of the common 
15.18 	interest community complying with section 515B.2-104, or (ii) otherwise acknowledges 
15.19 	the existence of the common interest community in a recorded instrument.
15.20 	(c) In a condominium, a planned community utilizing a CIC plat complying with section 
15.21 	515B.2-110(c) or 515B.2-1101(c), or a cooperative, where the unit boundaries are delineated 
15.22 	by a structure, a declaration, or an amendment to a declaration adding units, shall not be 
15.23 	recorded unless the structural components of the structures containing the units and the 
15.24 	mechanical systems serving more than one unit, but not the units, are substantially completed, 
15.25 	as evidenced by a recorded certificate executed by a registered engineer or architect.
15.26 	(d) A project which (i) meets the definition of a "common interest community" in section 
15.27 	515B.1-103(10), (ii) is created after May 31, 1994, and (iii) is not exempt under section 
15.28 	515B.1-102(e), is subject to this chapter even if this or other sections of the chapter have 
15.29 	not been complied with, and the declarant and all unit owners are bound by all requirements 
15.30 	and obligations of this chapter.
15.31 	(e) The association shall be incorporated pursuant to section 515B.3-101 and the CIC 
15.32 	plat shall be recorded as and if required by section 515B.2-110 or 515B.2-1101.
16.1 	(f) A declarant must comply with section 508.351 or 508A.351, as applicable, before 
16.2 	recording a declaration against property title which is registered pursuant to chapter 508 or 
16.3 	508A.
16.4 	(g) A condominium created on or after August 1, 2026, that utilizes a CIC plat that 
16.5 	complies with section 515B.2-1101(c) shall not include both registered land and unregistered 
16.6 	land, but shall consist only of land that is all registered under chapter 508 or 508A, or land 
16.7 	of which no part is so registered.

16.8 	Sec. 5. Minnesota Statutes 2024, section 515B.2-102, is amended to read:
16.9 	515B.2-102 UNIT BOUNDARIES.
16.10 	(a) The declaration shall describe the boundaries of the units as provided in section 
16.11 	515B.2-105(5). The boundaries need not be delineated by a physical structure. The unit 
16.12 	may consist of noncontiguous portions of the common interest community.
16.13 	(b) In a condominium, a cooperative, or a planned community utilizing a CIC plat 
16.14 	complying with section 515B.2-110(c) or 515B.2-1101(c):
16.15 	(1) except as the declaration otherwise provides, if the walls, floors, or ceilings of a unit 
16.16 	are designated as its boundaries, then the boundaries shall be the interior, unfinished surfaces 
16.17 	of the perimeter walls, floors, ceilings, doors, windows, and door and window frames of 
16.18 	the unit, all paneling, tiles, wallpaper, paint, floor covering, and any other finishing materials 
16.19 	applied to the interior surfaces of the perimeter walls, floors or ceilings, are a part of the 
16.20 	unit, and all other portions of the perimeter walls, floors, ceilings, doors, windows, and door 
16.21 	and window frames, are a part of the common elements; and
16.22 	(2) except in common interest communities created before August 1, 2010, and except 
16.23 	in common interest communities in which all units are restricted to nonresidential use, if 
16.24 	unit area or volume is used to allocate interests, the description of the unit boundaries for 
16.25 	similar types of units, such as residential units, garage units, or storage units, shall be the 
16.26 	same.
16.27 	(c) In a planned community utilizing a CIC plat complying with section 515B.2-110(d)(1) 
16.28 	and (2) or 515B.2-1101(d)(1) and (2), except as the declaration otherwise provides, the unit 
16.29 	boundaries shall be the lot lines designated on a plat recorded pursuant to chapter 505 or 
16.30 	the tract boundaries designated on a registered land survey recorded pursuant to chapter 
16.31 	508 or 508A.
16.32 	(d) Except as provided in section 515B.2-109(c), all spaces, fixtures, and improvements 
16.33 	located wholly within the boundaries of a unit are a part of the unit.

17.1 	Sec. 6. Minnesota Statutes 2024, section 515B.2-104, is amended to read:
17.2 	515B.2-104 DESCRIPTION OF UNITS.
17.3 	(a) A description of a unit is legally sufficient if it sets forth (i) the unit identifier of the 
17.4 	unit, (ii) the number assigned to the common interest community by the recording officer, 
17.5 	and (iii) the county in which the unit is located.
17.6 	(b) If the CIC plat for a planned community complies with chapter 505, 508, or 508A, 
17.7 	then a description of a unit in the planned community is legally sufficient if it is stated in 
17.8 	terms of a plat or registered land survey. In planned communities whose CIC plats comply 
17.9 	with section 515B.2-110(c) or 515B.2-1101(c), and in all condominiums and cooperatives 
17.10 	created under this chapter, a unit identifier shall contain no more than six characters, only 
17.11 	one of which may be a letter.
17.12 	(c) A description which complies with this section shall be deemed to include all rights, 
17.13 	obligations, and interests appurtenant to the unit which were created by the declaration or 
17.14 	bylaws, by a master declaration, or by this chapter, whether or not those rights, obligations, 
17.15 	or interests are expressly described.
17.16 	(d) If the CIC plat for a planned community complies with section 515B.2-110(c) or 
17.17 	515B.2-1101(c), a description of the common elements is legally sufficient if it sets forth 
17.18 	(i) the words "common elements," (ii) the number assigned to the common interest 
17.19 	community by the recording officer, and (iii) the county in which the common elements are 
17.20 	located. The common elements may consist of separate parcels of real estate, in which case 
17.21 	each parcel shall be separately identified on the CIC plat and in any recorded instrument 
17.22 	referencing a separate parcel of the common elements.

17.23 	Sec. 7. Minnesota Statutes 2024, section 515B.2-105, is amended to read:
17.24 	515B.2-105 DECLARATION CONTENTS; ALL COMMON INTEREST 
17.25 	COMMUNITIES.
17.26 	(a) The declaration shall contain:
17.27 	(1) the number of the common interest community, whether the common interest 
17.28 	community is a condominium, planned community or cooperative, and the name of the 
17.29 	common interest community, which shall appear at the top of the first page of the declaration 
17.30 	in the following format:
17.31 	Common Interest Community No. ....
17.32 	(Type of Common Interest Community)
18.1 	(Name of Common Interest Community)
18.2 	DECLARATION
18.3 	(2) a statement as to whether the common interest community is or is not subject to a 
18.4 	master association;
18.5 	(3) the name of the association, a statement that the association has been incorporated 
18.6 	and a reference to the statute under which it was incorporated;
18.7 	(4) a legally sufficient description of the real estate included in the common interest 
18.8 	community, a statement identifying any appurtenant easement necessary for access to a 
18.9 	public street or highway, and a general reference to any other appurtenant easements;
18.10 	(5) a description of the boundaries of each unit created by the declaration and the unit's 
18.11 	unit identifier;
18.12 	(6) in a planned community containing common elements, a legally sufficient description 
18.13 	of the common elements;
18.14 	(7) in a cooperative, a statement as to whether the unit owners' interests in all units and 
18.15 	their allocated interests are real estate or personal property;
18.16 	(8) an allocation to each unit of the allocated interests in the manner described in section 
18.17 	515B.2-108;
18.18 	(9) a statement (i) of the total number of units, and (ii) identifying any units that are 
18.19 	restricted to residential use and any units that are restricted to nonresidential use;
18.20 	(10) if applicable, a statement (i) of the maximum number of units that may be created 
18.21 	by the subdivision or conversion of units owned by the declarant pursuant to section 
18.22 	515B.2-112, and (ii) in declarations recorded on or after August 1, 2010, identifying the 
18.23 	units that a declarant may subdivide or convert or a statement that a declarant may subdivide 
18.24 	or convert all units;
18.25 	(11) any material restrictions on use, occupancy, or alienation of the units, or on the sale 
18.26 	price of a unit or on the amount that may be received by an owner on sale, condemnation 
18.27 	or casualty loss to the unit or to the common interest community, or on termination of the 
18.28 	common interest community; provided, that these requirements shall not affect the power 
18.29 	of the association to adopt, amend or revoke rules and regulations pursuant to section 
18.30 	515B.3-102;
18.31 	(12) a statement as to whether time shares are permitted;
19.1 	(13) a statement as to whether the common interest community includes any shoreland, 
19.2 	as defined in section 103F.205, and, if the common interest community includes shoreland, 
19.3 	a statement that the common interest community may be subject to county, township, or 
19.4 	municipal ordinances or rules affecting the development and use of the shoreland area; and
19.5 	(14) if applicable, matters required by sections 515B.1-103(33), 515B.1-103(33a) or 
19.6 	(33b), Definitions: Special Declarant Rights; 515B.2-107, Declaration of Leasehold Common 
19.7 	Interest Communities; 515B.2-109, Common Elements and Limited Common Elements; 
19.8 	515B.2-110 or 515B.2-1101, as applicable, Common Interest Community Plat (CIC Plat); 
19.9 	515B.2-121, Master Associations; and 515B.3-115 or 515B.3-1151, Assessments for 
19.10 	Common Expenses; and 515B.2-121, Master Associations.
19.11 	(b) The declaration may contain any other matters the declarant considers appropriate.

19.12 	Sec. 8. Minnesota Statutes 2024, section 515B.2-108, is amended to read:
19.13 	515B.2-108 ALLOCATION OF INTERESTS.
19.14 	(a) The declaration shall allocate to each unit:
19.15 	(1) in a condominium, a fraction or percentage of undivided interests in the common 
19.16 	elements and in the common expenses of the association and a portion of the votes in the 
19.17 	association;
19.18 	(2) in a cooperative, an ownership interest in the association, a fraction or percentage 
19.19 	of the common expenses of the association and a portion of the votes in the association; 
19.20 	and
19.21 	(3) in a planned community, a fraction or percentage of the common expenses of the 
19.22 	association and a portion of the votes in the association.
19.23 	(b) The declaration shall state the formulas used to establish allocations of interests. If 
19.24 	the fractions or percentages are all equal the declaration may so state in lieu of stating the 
19.25 	fractions or percentages. The declaration need not allocate votes or a share of common 
19.26 	expenses to units that are auxiliary to other units, such as garage units or storage units. The 
19.27 	allocations shall not discriminate in favor of units owned by the declarant or an affiliate of 
19.28 	the declarant, except as provided in sections 515B.2-121and,515B.3-115, and 515B.3-1151.
19.29 	(c) If units may be added to the common interest community, the formulas used to 
19.30 	reallocate the allocated interests among all units included in the common interest community 
19.31 	after the addition shall be the formulas stated in the declaration.
20.1 	(d) The declaration may authorize special allocations: (i) of unit owner votes among 
20.2 	certain units or classes of units on particular matters specified in the declaration, or (ii) of 
20.3 	common expenses among certain units or classes of units on particular matters specified in 
20.4 	the declaration. Special allocations may only be used to address operational, physical or 
20.5 	administrative differences within the common interest community. A declarant may not 
20.6 	utilize special allocations for the purpose of evading any limitation or obligation imposed 
20.7 	on declarants by this chapter nor may units constitute a class because they are owned by a 
20.8 	declarant.
20.9 	(e) The sum of each category of allocated interests allocated at any time to all the units 
20.10 	must equal one if stated as a fraction or 100 percent if stated as a percentage. In the event 
20.11 	of a discrepancy between an allocated interest and the result derived from application of 
20.12 	the pertinent formula, the allocated interest prevails.
20.13 	(f) In a condominium or planned community, the common elements are not subject to 
20.14 	partition, and any purported conveyance, encumbrance, judicial sale, or other voluntary or 
20.15 	involuntary transfer of an undivided interest in the common elements made without the unit 
20.16 	to which that interest is allocated is void. The granting of easements, licenses or leases 
20.17 	pursuant to section 515B.2-109 or 515B.3-102 shall not constitute a partition.
20.18 	(g) In a cooperative, any purported conveyance, encumbrance, judicial sale, or other 
20.19 	voluntary or involuntary transfer of an ownership interest in the association made without 
20.20 	the possessory interest in the unit to which that interest is related is void.

20.21 	Sec. 9. Minnesota Statutes 2024, section 515B.2-110, is amended to read:
20.22 	515B.2-110 COMMON INTEREST COMMUNITY PLAT (CIC PLAT); CIC 
20.23 	CREATED BEFORE AUGUST 1, 2010.
20.24 	(a) A CIC plat is required for condominiums and planned communities, and cooperatives 
20.25 	in which the unit owners' interests are characterized as real estate. The CIC plat is a part of 
20.26 	the declaration in condominiums, in planned communities utilizing a CIC plat complying 
20.27 	with subsection (c), and in cooperatives in which the unit owners' interests are characterized 
20.28 	as real estate, but need not be physically attached to the declaration.
20.29 	(1) In a condominium, or a cooperative in which the unit owners' interests are 
20.30 	characterized as real estate, the CIC plat shall comply with subsection (c).
20.31 	(2) In a planned community, a CIC plat that does not comply with subsection (c) shall 
20.32 	consist of all or part of a subdivision plat or registered land survey complying with subsection 
20.33 	(d), or any combination thereof. The CIC plat or registered land survey need not contain 
21.1 	the number of the common interest community and may be recorded at any time before the 
21.2 	recording of the declaration; provided that if the CIC plat complies with subsection (c), the 
21.3 	number of the common interest community shall be included and the CIC plat shall be 
21.4 	recorded at the time of recording of the declaration.
21.5 	(3) In a cooperative in which the unit owners' interests are characterized as personal 
21.6 	property, a CIC plat shall not be required. In lieu of a CIC plat, the declaration or any 
21.7 	amendment to it creating, converting, or subdividing units in a personal property cooperative 
21.8 	shall include an exhibit containing a scale drawing of each building, identifying each building, 
21.9 	and showing the perimeter walls of each unit created or changed by the declaration or any 
21.10 	amendment to it, including the unit's unit identifier, and its location within the building if 
21.11 	the building contains more than one unit.
21.12 	(b) The CIC plat, or supplemental or amended CIC plat, for condominiums, for planned 
21.13 	communities using a plat complying with subsection (c), and for cooperatives in which the 
21.14 	unit owners' interests are characterized as real estate, shall contain certifications by a licensed 
21.15 	professional land surveyor and licensed professional architect, as to the parts of the CIC 
21.16 	plat prepared by each, that (i) the CIC plat accurately depicts all information required by 
21.17 	this section, and (ii) the work was undertaken by, or reviewed and approved by, the certifying 
21.18 	land surveyor or architect. The portions of the CIC plat depicting the dimensions of the 
21.19 	portions of the common interest community described in subsection (c), clauses (8), (9), 
21.20 	(10), and (12), may be prepared by either a land surveyor or an architect. The other portions 
21.21 	of the CIC plat shall be prepared only by a land surveyor. A certification of the CIC plat or 
21.22 	supplemental CIC plat, or an amendment to it, under this subsection by an architect is not 
21.23 	required if all parts of the CIC plat, supplemental CIC plat, or amendment are prepared by 
21.24 	a land surveyor. Certification by the land surveyor or architect does not constitute a guaranty 
21.25 	or warranty of the nature, suitability, or quality of construction of any improvements located 
21.26 	or to be located in the common interest community.
21.27 	(c) A CIC plat for a condominium, or a cooperative in which the unit owners' interests 
21.28 	are characterized as real estate, shall show:
21.29 	(1) the number of the common interest community, and the boundaries, dimensions, and 
21.30 	legally sufficient description of the land included therein;
21.31 	(2) the dimensions and location of all existing material structural improvements and 
21.32 	roadways;
22.1 	(3) the intended location and dimensions of any contemplated common element 
22.2 	improvements to be constructed within the common interest community after the filing of 
22.3 	the CIC plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT";
22.4 	(4) the location and dimensions of any additional real estate, labeled as such, and a 
22.5 	legally sufficient description of the additional real estate;
22.6 	(5) the extent of any encroachments by or upon any portion of the common interest 
22.7 	community;
22.8 	(6) the location and dimensions of all recorded easements within the land included in 
22.9 	the common interest community burdening any portion of the land;
22.10 	(7) the distance and direction between noncontiguous parcels of real estate;
22.11 	(8) the location and dimensions of limited common elements, except that with respect 
22.12 	to limited common elements described in section 515B.2-102, subsections (d) and (f)
22.13 	515B.2-109(c) and (d), only such material limited common elements as porches, balconies, 
22.14 	decks, patios, and garages shall be shown;
22.15 	(9) the location and dimensions of the front, rear, and side boundaries of each unit and 
22.16 	that unit's unit identifier;
22.17 	(10) the location and dimensions of the upper and lower boundaries of each unit with 
22.18 	reference to an established or assumed datum and that unit's unit identifier;
22.19 	(11) a legally sufficient description of any real estate in which the unit owners will own 
22.20 	only an estate for years, labeled as "leasehold real estate"; and
22.21 	(12) any units which may be converted by the declarant to create additional units or 
22.22 	common elements identified separately.
22.23 	(d) A CIC plat for a planned community either shall comply with subsection (c), or it 
22.24 	shall:
22.25 	(1) comply with chapter 505, 508, or 508A, as applicable; and
22.26 	(2) comply with the applicable subdivision requirements of any governmental authority 
22.27 	within whose jurisdiction the planned community is located, subject to the limitations set 
22.28 	forth in section 515B.1-106.
22.29 	(e) If a declarant adds additional real estate, the declarant shall record a supplemental 
22.30 	CIC plat or plats for the real estate being added, conforming to the requirements of this 
22.31 	section which apply to the type of common interest community in question. If less than all 
22.32 	additional real estate is being added, the supplemental CIC plat for a condominium, a planned 
23.1 	community whose CIC plat complies with subsection (c), or a cooperative in which the unit 
23.2 	owners' interests are characterized as real estate shall also show the location and dimensions 
23.3 	of the remaining portion.
23.4 	(f) If, pursuant to section 515B.2-112, a declarant subdivides or converts any unit into 
23.5 	two or more units, common elements, or limited common elements, or combines two or 
23.6 	more units, the declarant shall record an amendment to the CIC plat showing the location 
23.7 	and dimensions of any new units, common elements, or limited common elements thus 
23.8 	created.
23.9 	(g) A CIC plat that complies with subsection (c) is not subject to chapter 505.
23.10 	(h) This section applies only to common interest communities created before August 1, 
23.11 	2010.

23.12 	Sec. 10. Minnesota Statutes 2024, section 515B.2-1101, is amended to read:
23.13 	515B.2-1101 COMMON INTEREST COMMUNITY PLAT (CIC PLAT); CIC 
23.14 	CREATED ON OR AFTER AUGUST 1, 2010.
23.15 	(a) A CIC plat is required for condominiums and planned communities, and cooperatives 
23.16 	in which the unit owners' interests are characterized as real estate. The CIC plat is a part of 
23.17 	the declaration in condominiums, in planned communities utilizing a CIC plat complying 
23.18 	with subsection (c), and in cooperatives in which the unit owners' interests are characterized 
23.19 	as real estate, but need not be physically attached to the declaration.
23.20 	(1) In a condominium, a planned community not utilizing a subdivision plat or registered 
23.21 	land survey under subsection (d), clause (1), or a cooperative in which the unit owners' 
23.22 	interests are characterized as real estate, the CIC plat shall comply with subsection (c).
23.23 	(2) In a planned community, a CIC plat that does not comply with subsection (c) shall 
23.24 	consist of all or part of a subdivision plat or registered land survey complying with subsection 
23.25 	(d), or any combination thereof. The CIC subdivision plat or registered land survey need 
23.26 	not contain the number of the common interest community and may be recorded at any time 
23.27 	before the recording of the declaration; provided that if the CIC plat complies with subsection 
23.28 	(c), the number of the common interest community shall be included and the CIC plat shall 
23.29 	be recorded at the time of recording of the declaration.
23.30 	(3) In a cooperative in which the unit owners' interests are characterized as personal 
23.31 	property, a CIC plat shall not be required. In lieu of a CIC plat, the declaration, or any 
23.32 	amendment or supplemental declaration creating, converting, or subdividing units shall 
23.33 	include an exhibit containing a dimensioned, scale drawing showing (i) the boundaries of 
24.1 	the land constituting the cooperative property, (ii) the location and dimensions of the front, 
24.2 	rear, and side boundaries of each unit, and (iii) the unit's unit identifier and its location 
24.3 	within the cooperative property.
24.4 	(b) The CIC plat or supplemental or amended CIC plat for condominiums, for planned 
24.5 	communities using a plat complying with subsection (c), and for cooperatives in which the 
24.6 	unit owners' interests are characterized as real estate shall contain certifications by a licensed 
24.7 	professional land surveyor and licensed professional architect, as to the parts of the CIC 
24.8 	plat prepared by each, that (i) the CIC plat accurately depicts all information required by 
24.9 	this section, and (ii) the work was undertaken by, or reviewed and approved by, the certifying 
24.10 	land surveyor or architect. The portions of the CIC plat depicting the dimensions of the 
24.11 	portions of the common interest community described in subsection (c), clauses (8), (9), 
24.12 	and (10), may be prepared by either a land surveyor or an architect. The other portions of 
24.13 	the CIC plat shall be prepared only by a land surveyor. A certification of the CIC plat or 
24.14 	supplemental CIC plat, or an amendment to it, under this subsection by an architect is not 
24.15 	required if all parts of the CIC plat, supplemental CIC plat, or amendment are prepared by 
24.16 	a land surveyor. Certification by the land surveyor or architect does not constitute a guaranty 
24.17 	or warranty of the nature, suitability, or quality of construction of any improvements located 
24.18 	or to be located in the common interest community.
24.19 	(c) A CIC plat for a condominium, a planned community not utilizing a subdivision plat 
24.20 	or registered land survey under subsection (d), clause (1), or a cooperative in which the unit 
24.21 	owners' interests are characterized as real estate shall show:
24.22 	(1) the number of the common interest community, and the boundaries, dimensions, and 
24.23 	a legally sufficient description of the land included therein. CIC plats under this paragraph 
24.24 	shall be numbered serially beginning with the next number after the last CIC number assigned 
24.25 	and the numbers shall run consecutively within the County Recorder's Office and Office of 
24.26 	the Registrar of Titles for each county;
24.27 	(2) the dimensions and location of all existing roadways and material structural 
24.28 	improvements that are part of the common elements;
24.29 	(3) the intended location and dimensions of all roadways and material structural 
24.30 	improvements that may be constructed by the declarant within the common elements after 
24.31 	the filing of the CIC plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT";
24.32 	(4) the location and dimensions of any additional real estate, labeled as such, and a 
24.33 	legally sufficient description of the additional real estate;
25.1 	(5) the extent of any encroachments by or upon any portion of the common interest 
25.2 	community;
25.3 	(6) the location and dimensions of all recorded easements within the land included in 
25.4 	the common interest community burdening any portion of the land;
25.5 	(7) the distance and direction between noncontiguous parcels of real estate;
25.6 	(8) the location and dimensions of limited common elements, except that with respect 
25.7 	to limited common elements described in section 515B.2-109, subsections (c) 515B.2-109(c)
25.8 	and (d), only such material limited common elements as porches, balconies, decks, and 
25.9 	patios shall be shown;
25.10 	(9) the location and dimensions of the front, rear, and side boundaries of each unit and 
25.11 	that unit's unit identifier;
25.12 	(10) the location and dimensions of the upper and lower boundaries of each unit with 
25.13 	reference to an established or assumed datum and that unit's unit identifier; and
25.14 	(11) a legally sufficient description of any real estate in which the unit owners will own 
25.15 	only an estate for years, labeled as "leasehold real estate."
25.16 	(d) A CIC plat for a planned community either shall comply with subsection (c), or it 
25.17 	shall:
25.18 	(1) comply with chapter 505, 508, or 508A, as applicable; and
25.19 	(2) comply with the applicable subdivision requirements of any governmental authority 
25.20 	within whose jurisdiction the planned community is located, subject to the limitations set 
25.21 	forth in section 515B.1-106.
25.22 	(e) If a declarant adds additional real estate, the declarant shall record a supplemental 
25.23 	CIC plat or plats for the real estate being added, conforming to the requirements of this 
25.24 	section which apply to the type of common interest community in question. If less than all 
25.25 	additional real estate is being added, the supplemental CIC plat for a condominium, a planned 
25.26 	community whose CIC plat complies with subsection (c), or a cooperative in which the unit 
25.27 	owners' interests are characterized as real estate, shall also show the location and dimensions 
25.28 	of the remaining portion.
25.29 	(f) A CIC plat which complies with subsection (c) is not subject to chapter 505, but any 
25.30 	CIC plat recorded on or after August 1, 2026, must comply with the requirements of section 
25.31 	505.021, subdivision 1.
26.1 	(g) This section applies only to common interest communities created on or after August 
26.2 	1, 2010.

26.3 	Sec. 11. Minnesota Statutes 2024, section 515B.2-113, is amended to read:
26.4 	515B.2-113 ALTERATION OF UNITS.
26.5 	(a) Subject to the provisions of the declaration and applicable law, a unit owner may, at 
26.6 	the unit owner's expense, make any improvements or alterations to the unit, provided: (i) 
26.7 	that they do not impair the structural integrity or mechanical systems, affect the common 
26.8 	elements, or impair the support of any portion of the common interest community; (ii) that 
26.9 	prior arrangements are made with the association to ensure that other unit owners are not 
26.10 	disturbed; (iii) that the common elements are not damaged; and (iv) that the common 
26.11 	elements and other units are protected against mechanics' liens.
26.12 	(b) Subject to the provisions of applicable law, a unit owner of a unit that is used as a 
26.13 	dwelling, whether primary, secondary, or seasonal, may, at the unit owner's expense, make 
26.14 	improvements or alterations to the unit as necessary for the full enjoyment of the unit by 
26.15 	any person residing in the unit who has a disability, as provided in the Fair Housing 
26.16 	Amendments Act, United States Code, title 42, section 3601, et seq., and the Minnesota 
26.17 	Human Rights Act, chapter 363A, and any amendments to those acts. This subsection applies 
26.18 	to all common interest communities subject to this chapter, chapter 515, or 515A, 
26.19 	notwithstanding any contrary provision of section 515B.1-102.
26.20 	(c) The declaration, bylaws, rules, and regulations, or agreements with the association 
26.21 	may not prohibit the improvements or alterations referred to in subsection (b), but may 
26.22 	reasonably regulate the type, style, and quality of the improvements or alterations, as they 
26.23 	relate to health, safety, and architectural standards. In addition, improvements or alterations 
26.24 	made pursuant to subsection (b) must comply with subsection (a)(i), (ii), (iii), and (iv).
26.25 	(d) The unit owner's rights under this section may not be waived.
26.26 	(e) Subsection (b) does not apply to restrictions on improvements or alterations imposed 
26.27 	by statute, rule, or ordinance.
26.28 	(f) Subject to the provisions of the declaration and applicable law, a unit owner may, at 
26.29 	the unit owner's expense, after acquiring title to an adjoining unit or an adjoining part of an 
26.30 	adjoining unit, with the prior written approval of the association and first mortgagees of the 
26.31 	affected units, remove or alter any intervening partition or create apertures therein, even if 
26.32 	the partition is part of the common elements, if those acts do not impair the structural 
26.33 	integrity or mechanical systems or lessen the support of any portion of the common interest 
27.1 	community. The adjoining unit owners shall have the exclusive license to use the space 
27.2 	occupied by the removed partition, but the use shall not create an easement or vested right. 
27.3 	Removal of partitions or creation of apertures under this subsection is not an alteration of 
27.4 	boundaries. The association may require that the owner or owners of units affected replace 
27.5 	or restore any removed partition, that the unit owner comply with subsection (a)(i), (ii) and,
27.6 	(iii), and (iv), and that the unit owner pay all fees and costs incurred by the association in 
27.7 	connection with the alteration.

27.8 	Sec. 12. Minnesota Statutes 2024, section 515B.2-118, is amended to read:
27.9 	515B.2-118 AMENDMENT OF DECLARATION.
27.10 	(a) Except as otherwise provided in subsection (d), the declaration, including any CIC 
27.11 	plat, may be amended only by vote or written consent of unit owners of units to which at 
27.12 	least 67 percent of the votes in the association are allocated, or any greater or other 
27.13 	requirement the declaration specifies, subject to the following qualifications:
27.14 	(1) A declarant may execute supplemental declarations or amendments under section 
27.15 	515B.2-111 or 515B.2-112.
27.16 	(2) The association and certain unit owners, as applicable, may execute amendments 
27.17 	under section 515B.2-107, 515B.2-109, 515B.2-112, 515B.2-114, or 515B.2-124.
27.18 	(3) Except for amendments or supplemental declarations under subsection (a)(1) and 
27.19 	(2), and except as provided in sections 515B.1-102 (d)(3) 515B.1-102(d)(3) and 515B.2-106 
27.20 	(a)(2) 515B.2-106(a)(2), the unanimous written consent of the unit owners is required for 
27.21 	any amendment which (i) creates or increases special declarant rights, (ii) increases the 
27.22 	number of units, (iii) changes the boundaries of any unit, (iv) changes the allocated interests 
27.23 	of a unit, (v) changes common elements to limited common elements or units, (vi) changes 
27.24 	the authorized use of a unit from residential to nonresidential, or conversely, or (vii) changes 
27.25 	the characterization of the unit owner's interest in a cooperative from real estate to personal 
27.26 	property, or conversely. Where the amendment involves the conversion of common elements 
27.27 	into a unit or units, the title to the unit or units created shall, upon recording of the 
27.28 	amendment, vest in the association free and clear of the interests of the unit owners and all 
27.29 	secured parties holding security interests in units.
27.30 	(4) In addition to any other requirements contained in this section, a declarant must 
27.31 	execute an amendment that eliminates or modifies any special declarant rights held by that 
27.32 	declarant.
28.1 	(5) If any provision of this chapter, the declaration, the bylaws, or the articles of 
28.2 	incorporation requires the consent of a secured party holding a security interest in a unit as 
28.3 	a condition for the approval or effectiveness of an amendment to the declaration, the bylaws, 
28.4 	or the articles of incorporation, the consent is deemed to be granted if the secured party's 
28.5 	written refusal to consent is not received by the association within 60 days after the secured 
28.6 	party receives from the association notice and a copy of the amendment, by certified United 
28.7 	States mail, postage prepaid and return receipt requested. If the secured party has not 
28.8 	otherwise provided to the association an address for notice, the association shall send the 
28.9 	notice to the address, if any, set forth in the recorded instrument that evidences the security 
28.10 	interest. This subsection shall not apply to an amendment that affects the priority of a secured 
28.11 	party's security interest or the ability of a secured party to foreclose its security interest. In 
28.12 	such cases, the number or percentage of secured parties whose consent is required by the 
28.13 	instrument to be amended must consent to the amendment in writing.
28.14 	(6) The declaration may specify less than 67 percent for approval of an amendment, but 
28.15 	only if all of the units are restricted to nonresidential use.
28.16 	(7) If any provision of this chapter, the declaration, the bylaws, or the articles of 
28.17 	incorporation requires the vote or consent of unit owners as a condition for the approval or 
28.18 	effectiveness of an amendment to the declaration, the bylaws, or the articles of incorporation, 
28.19 	the affirmative vote or consent of a unit owner is deemed to be granted if the association 
28.20 	sends notice and a copy of the amendment, by certified United States mail, postage prepaid 
28.21 	and return receipt requested, and (i) if a vote is conducted, the unit owner's vote is not cast 
28.22 	against the proposed amendment, or (ii) if consent is requested, the unit owner's written 
28.23 	refusal to consent is not received by the association within 60 days after notice is mailed. 
28.24 	This subsection shall not apply to any amendment that would require execution by the 
28.25 	association and certain unit owners pursuant to subsection (a)(2).
28.26 	(b) No action to challenge the validity of an amendment or a supplemental declaration 
28.27 	may be brought more than two years after the amendment or supplemental declaration is 
28.28 	recorded.
28.29 	(c) Every amendment to a declaration or supplemental declaration shall be recorded in 
28.30 	every county in which any portion of the common interest community is located and is 
28.31 	effective only when recorded and, for amendments recorded on or after August 1, 2026, 
28.32 	any vote or consent of unit owners required by this section or by the declaration is established 
28.33 	of record as provided in section 515B.1-116(d). If an amendment (i) changes the number 
28.34 	of units, (ii) changes the boundary of a unit, (iii) changes common elements to limited 
28.35 	common elements, where the limited common element is required by and section 515B.2-110 
29.1 	(c), to 515B.2-110(c) or 515B.2-1101(c) requires the limited common element be shown 
29.2 	on the CIC plat, (iv) changes limited common elements to common elements if the limited 
29.3 	common elements are shown as limited common elements on the CIC plat, or (v) makes 
29.4 	any other change that creates an inconsistency between the declaration, as amended, and 
29.5 	the CIC plat, then an amendment to the CIC plat reflecting the change shall be recorded.
29.6 	(d) The association may petition the district court of any county in which any portion 
29.7 	of the common interest community is located for an order reducing the percentage of 
29.8 	affirmative votes or consents necessary for an amendment to the declaration, bylaws, or 
29.9 	articles of incorporation, subject to the following qualifications:
29.10 	(1) The petition shall describe the reason for the amendment, the approval requirements 
29.11 	based on the governing documents and applicable law, the effort that has been made to 
29.12 	solicit approval of the association members, the number of affirmative votes or consents 
29.13 	actually received, the number of negative votes or denials actually received, the number or 
29.14 	percentage of affirmative votes or consents required to effect the amendment, and other 
29.15 	matters the petitioner considers relevant to the court's determination. The petition shall also 
29.16 	contain, as exhibits thereto, copies of all of the following: (i) the governing documents; (ii) 
29.17 	the complete text of the amendment; (iii) copies of any notice and solicitation materials 
29.18 	utilized in the solicitation of member approvals; and (iv) any other documentation that the 
29.19 	petitioner believes will be useful to the court in deciding whether to grant the petition.
29.20 	(2) Upon filing the petition, the association shall contact the court administrator to obtain 
29.21 	a hearing date not less than 90 days after the date of filing the petition.
29.22 	(3) Not less than 15 days prior to the date of the hearing, the association shall serve a 
29.23 	copy of the petition, excluding the exhibits, and notice of the hearing date on all members 
29.24 	of the association in the same manner as service of a summons by personal service, or by 
29.25 	publication in circumstances in which service of a summons by publication would be allowed 
29.26 	under the Minnesota Rules of Civil Procedure. Notwithstanding the foregoing, to avoid 
29.27 	unnecessary expenses of service, the association may obtain from any member of the 
29.28 	association a signed waiver of service (i) acknowledging receipt of a copy of the petition, 
29.29 	excluding the exhibits, and notice of the hearing date, and (ii) waiving service thereof.
29.30 	(4) The court may grant the petition if it finds all of the following:
29.31 	(i) each member of the association was served with a copy of the petition, excluding the 
29.32 	exhibits, and notice of the hearing date not less than 15 days prior to the date of the hearing, 
29.33 	or waived service thereof, pursuant to subsection (d)(3);
30.1 	(ii) each secured party that is entitled to notice of the proposed amendment under the 
30.2 	terms of the declaration, bylaws, or articles of incorporation, if any, either consented to the 
30.3 	amendment, is deemed to have consented to the amendment pursuant to subsection (a)(5), 
30.4 	or received a copy of the petition, excluding the exhibits, and notice of the hearing date not 
30.5 	less than 15 days prior to the date of the hearing;
30.6 	(iii) the association conducted a vote or requested the consent of the members regarding 
30.7 	the proposed amendment in accordance with the declaration, the bylaws, the articles of 
30.8 	incorporation, this chapter, and any other applicable law;
30.9 	(iv) a reasonably diligent effort was made to permit all eligible members to vote, or to 
30.10 	grant or deny consent, regarding the proposed amendment;
30.11 	(v) the amendment was approved by the affirmative vote or consent of unit owners of 
30.12 	units to which at least 67 percent of the votes in the association are allocated, or if all of the 
30.13 	units are restricted to nonresidential use, by the affirmative vote or consent of unit owners 
30.14 	of units to which a majority of the votes in the association are allocated;
30.15 	(vi) the amendment is reasonable; and
30.16 	(vii) granting the petition is not improper for any reason stated in subsection (d)(6).
30.17 	(5) If the court makes the findings required by subsection (d)(4), any order issued pursuant 
30.18 	to this section may confirm the amendment as being validly approved on the basis of the 
30.19 	affirmative votes or consents actually received, or the order may dispense with any 
30.20 	requirement relating to quorums or to the number or percentage of votes or consents needed 
30.21 	for approval of the amendment that would otherwise exist under the governing documents.
30.22 	(6) Notwithstanding subsections (d)(1) to (5), the court shall not approve any amendment 
30.23 	that:
30.24 	(i) would require execution by the association and certain unit owners pursuant to 
30.25 	subsection (a)(2), unless the association and unit owners execute the amendment;
30.26 	(ii) would require the unanimous written consent of the unit owners pursuant to subsection 
30.27 	(a)(3);
30.28 	(iii) would eliminate any special rights, preferences, or privileges designated in the 
30.29 	declaration as belonging to the declarant, without the consent of the declarant; or
30.30 	(iv) would impair the security interest of a secured party without the approval of the 
30.31 	percentage of secured parties specified in the declaration, if the declaration requires the 
30.32 	approval of a specified percentage of secured parties.
31.1 	(7) An amendment to a declaration is not effective pursuant to this subsection until the 
31.2 	court order and amendment have been recorded in every county in which a portion of the 
31.3 	common interest community is located. Upon recordation of the amendment and court order, 
31.4 	the declaration, as amended in accordance with this section, shall have the same force and 
31.5 	effect as if the amendment were adopted in compliance with every requirement imposed 
31.6 	by this chapter and the declaration.

31.7 	Sec. 13. Minnesota Statutes 2024, section 515B.2-119, is amended to read:
31.8 	515B.2-119 TERMINATION OF COMMON INTEREST COMMUNITY.
31.9 	(a) Except as otherwise provided in this chapter, a common interest community may be 
31.10 	terminated only by agreement of unit owners of units to which at least 80 percent of the 
31.11 	votes in the association are allocated, and 80 percent of the first mortgagees of units (each 
31.12 	mortgagee having one vote per unit financed), or any larger percentage the declaration 
31.13 	specifies. The declaration may specify a smaller percentage only if all of the units are 
31.14 	restricted to nonresidential use.
31.15 	(b) An agreement to terminate shall be evidenced by a written agreement, executed in 
31.16 	the same manner as a deed by the number of unit owners and first mortgagees of units 
31.17 	required by subsection (a). The agreement shall specify a date after which the agreement 
31.18 	shall be void unless recorded before that date. The agreement shall also specify a date by 
31.19 	which the termination of the common interest community and the winding up of its affairs 
31.20 	must be accomplished. A certificate of termination executed by the association evidencing 
31.21 	the termination shall be recorded on or before the termination date, or the agreement to 
31.22 	terminate shall be revoked. The agreement to terminate, or a memorandum thereof, and the 
31.23 	certificate of termination shall be recorded in every county in which a portion of the common 
31.24 	interest community is situated and is effective only upon recording.
31.25 	(c) In the case of a condominium or planned community containing only units having 
31.26 	upper and lower boundaries, a termination agreement may provide that all of the common 
31.27 	elements and units of the common interest community must be sold following termination. 
31.28 	If, pursuant to the agreement, any real estate in the common interest community is to be 
31.29 	sold following termination, the termination agreement shall set forth the minimum terms 
31.30 	of sale acceptable to the association.
31.31 	(d) In the case of a condominium or planned community containing any units not having 
31.32 	upper and lower boundaries, a termination agreement may provide for sale of the common 
31.33 	elements, but it may not require that the units be sold following termination, unless the 
32.1 	original declaration provided otherwise or all unit owners whose units are to be sold consent 
32.2 	to the sale.
32.3 	(e) The association, on behalf of the unit owners, shall have authority to contract for the 
32.4 	sale of real estate in a common interest community pursuant to this section, subject to the 
32.5 	required approval. The agreement to terminate shall be deemed to grant to the association 
32.6 	a power of attorney coupled with an interest to effect the conveyance of the real estate on 
32.7 	behalf of the holders of all interests in the units, including without limitation the power to 
32.8 	execute all instruments of conveyance and related instruments. Until the sale has been 
32.9 	completed, all instruments in connection with the sale have been executed and the sale 
32.10 	proceeds distributed, the association shall continue in existence with all powers it had before 
32.11 	termination.
32.12 	(1) The instrument conveying or creating the interest in the common interest community 
32.13 	shall include as exhibits (i) an affidavit of the secretary of the association certifying that the 
32.14 	approval required by this section has been obtained and (ii) a schedule of the names of all 
32.15 	unit owners in the common interest community as of the date of the approval.
32.16 	(2) Proceeds of the sale shall be distributed to unit owners and secured parties as their 
32.17 	interests may appear, in accordance with subsections (h), (i), (j), and (k).
32.18 	(3) Unless otherwise specified in the agreement of termination, until the association has 
32.19 	conveyed title to the real estate, each unit owner and the unit owner's successors in interest 
32.20 	have an exclusive right to occupancy of the portion of the real estate that formerly constituted 
32.21 	the unit. During the period of that occupancy, each unit owner and the unit owner's successors 
32.22 	in interest remain liable for all assessments and other obligations imposed on unit owners 
32.23 	by this chapter, the declaration or the bylaws.
32.24 	(f) The legal description of the real estate constituting the common interest community 
32.25 	shall, upon the date of recording of the certificate of termination referred to in subsection 
32.26 	(b), be as follows:
32.27 	(1) In a planned community utilizing a CIC plat complying with section 515B.2-110(d)(1) 
32.28 	and (2) or 515B.2-1101(d)(1) and (2), the lot and block description contained in the CIC 
32.29 	plat, and any amendments thereto, subject to any subsequent conveyance or taking of a fee 
32.30 	interest in any part of the property.
32.31 	(2) In a condominium or cooperative, or a planned community utilizing a CIC plat 
32.32 	complying with section 515B.2-110(c) or 515B.2-1101(c), the underlying legal description 
32.33 	of the real estate as set forth in the declaration creating the common interest community, 
33.1 	and any amendments thereto, subject to any subsequent conveyance or taking of a fee interest 
33.2 	in any part of the property.
33.3 	(3) The legal description referred to in this subsection shall apply upon the recording of 
33.4 	the certificate of termination. The recording officer for each county in which the common 
33.5 	interest community is located shall index the property located in that county in its records 
33.6 	under the legal description required by this subsection from and after the date of recording 
33.7 	of the certificate of termination. In the case of registered property, the registrar of titles shall 
33.8 	cancel the existing certificates of title with respect to the property and issue one or more 
33.9 	certificates of title for the property utilizing the legal description required by this subsection.
33.10 	(g) In a condominium or planned community, if the agreement to terminate provides 
33.11 	that the real estate constituting the common interest community is not to be sold following 
33.12 	termination, title to the common elements and, in a common interest community containing 
33.13 	only units having upper and lower boundaries described in the declaration, title to all the 
33.14 	real estate in the common interest community, vests in the unit owners upon termination as 
33.15 	tenants in common in proportion to their respective interest as provided in subsection (k), 
33.16 	and liens on the units shift accordingly. While the tenancy in common exists, each unit 
33.17 	owner and the unit owner's successors in interest have an exclusive right to occupancy of 
33.18 	the portion of the real estate that formerly constituted the unit.
33.19 	(h) The proceeds of any sale of real estate pursuant to subsection (e), together with the 
33.20 	assets of the association, shall be held by the association as trustee for unit owners, secured 
33.21 	parties and other holders of liens on the units as their interests may appear. Before distributing 
33.22 	any proceeds, the association shall have authority to deduct from the proceeds of sale due 
33.23 	with respect to the unit (i) unpaid assessments levied by the association with respect to the 
33.24 	unit, (ii) unpaid real estate taxes or special assessments due with respect to the unit, and 
33.25 	(iii) the share of expenses of sale and winding up of the association's affairs with respect to 
33.26 	the unit.
33.27 	(i) Following termination of a condominium or planned community, creditors of the 
33.28 	association holding liens on the units perfected before termination may enforce those liens 
33.29 	in the same manner as any lienholder, in order of priority based upon their times of perfection. 
33.30 	All other creditors of the association are to be treated as if they had perfected liens on the 
33.31 	units immediately before termination.
33.32 	(j) In a cooperative, the declaration may provide that all creditors of the association have 
33.33 	priority over any interests of unit owners and creditors of unit owners. In that event, following 
33.34 	termination, creditors of the association holding liens on the cooperative which were perfected 
34.1 	before termination may enforce their liens in the same manner as any lienholder, in order 
34.2 	of priority based upon their times of perfection. All other creditors of the association shall 
34.3 	be treated as if they had perfected a lien against the cooperative immediately before 
34.4 	termination. Unless the declaration provides that all creditors of the association have that 
34.5 	priority:
34.6 	(1) the lien of each creditor of the association which was perfected against the association 
34.7 	before termination becomes, upon termination, a lien against each unit owner's interest in 
34.8 	the unit as of the date the lien was perfected;
34.9 	(2) any other creditor of the association is to be treated upon termination as if the creditor 
34.10 	had perfected a lien against each unit owner's interest immediately before termination;
34.11 	(3) the amount of the lien of an association's creditor described in paragraphs (1) and 
34.12 	(2) against each of the unit owners' interest shall be proportionate to the ratio which each 
34.13 	unit's common expense liability bears to the common expense liability of all of the units;
34.14 	(4) the lien of each creditor of each unit owner which was perfected before termination 
34.15 	continues as a lien against that unit owner's interest in the unit as of the date the lien was 
34.16 	perfected; and
34.17 	(5) the assets of the association shall be distributed to all unit owners and all lienholders 
34.18 	as their interests may appear in the order described in this section. Creditors of the association 
34.19 	are not entitled to payment from any unit owner in excess of the amount of the creditor's 
34.20 	lien against that unit owner's interest.
34.21 	(k) The respective interest of unit owners referred to in subsections (e), (f), (g), (h) and 
34.22 	(i) are as follows:
34.23 	(1) Except as provided in paragraph (2), the respective interests of unit owners are the 
34.24 	fair market values of their units, allocated interests, and any limited common elements 
34.25 	immediately before the termination, as determined by one or more independent appraisers 
34.26 	selected by the association. The decision of the independent appraisers must be distributed 
34.27 	to the unit owners and becomes final unless disapproved within 30 days after distribution 
34.28 	by unit owners of units to which 25 percent of the votes in the association are allocated. 
34.29 	The proportion of any unit's interest to that of all units is determined by dividing the fair 
34.30 	market value of that unit by the total fair market values of all the units.
34.31 	(2) If any unit or any limited common element is destroyed to the extent that an appraisal 
34.32 	of the fair market value thereof before destruction cannot be made, the interests of all unit 
34.33 	owners shall be measured by: (i) in a condominium, their allocations of common element 
35.1 	interests immediately before the termination, (ii) in a cooperative, their respective ownership 
35.2 	interests immediately before the termination, and (iii) in a planned community, their 
35.3 	respective allocations of common expenses immediately before the termination.
35.4 	(l) In a condominium or planned community, except as provided in subsection (m), 
35.5 	foreclosure or enforcement of a lien or encumbrance against the entire common interest 
35.6 	community does not terminate, of itself, the common interest community, and foreclosure 
35.7 	or enforcement of a lien or encumbrance against a portion of the common interest community 
35.8 	does not withdraw that portion from the common interest community.
35.9 	(m) In a condominium or planned community, if a lien or encumbrance against a portion 
35.10 	of the real estate comprising the common interest community has priority over the declaration 
35.11 	and the lien or encumbrance has not been partially released, the parties foreclosing the lien 
35.12 	or encumbrance, upon foreclosure, may record an instrument excluding the real estate subject 
35.13 	to that lien or encumbrance from the common interest community.
35.14 	(n) Following the termination of a common interest community in accordance with this 
35.15 	section, the association shall be dissolved in accordance with law.

35.16 	Sec. 14. Minnesota Statutes 2024, section 515B.2-121, is amended to read:
35.17 	515B.2-121 MASTER ASSOCIATIONS.
35.18 	(a) A master association formed after June 1, 1994, shall be organized as a Minnesota 
35.19 	profit, nonprofit or cooperative corporation. A master association shall be incorporated prior 
35.20 	to the delegation to it of any powers under this chapter.
35.21 	(b) The members of the master association shall be any combination of (i) unit owners, 
35.22 	(ii) associations, (iii) master associations, or (iv) owners of real estate or property owners' 
35.23 	associations not subject to this chapter but only in combination with at least one other 
35.24 	category of member. An association or its members may be members of an entity created 
35.25 	before June 1, 1994, which performs functions similar to those performed by a master 
35.26 	association regardless of whether the entity is subject to this chapter.
35.27 	(c) A master association shall be governed by a master board. Except as expressly 
35.28 	prohibited by the master declaration, the master association's articles of incorporation or 
35.29 	bylaws, or other provisions of this chapter, the master board may act in all instances on 
35.30 	behalf of the master association. The directors of a master association shall be elected or, 
35.31 	if a nonprofit corporation, elected or appointed, in a manner consistent with the requirements 
35.32 	of the statute under which the master association is formed and of the master association's 
35.33 	articles of incorporation and bylaws, and subject to the following:
36.1 	(1) The master declaration may provide for a period of master developer control of the 
36.2 	master association during which a master developer or a person designated by the master 
36.3 	developer may appoint and remove the officers and directors of the master association. The 
36.4 	period of master developer control begins on the date of the recording of the master 
36.5 	declaration and terminates upon the earliest of the following events:
36.6 	(i) the voluntary surrender of the right to appoint directors;
36.7 	(ii) the date ten years after the date the master declaration is recorded, unless extended 
36.8 	by an amendment to the master declaration approved in writing by the master developer, 
36.9 	and by 67 percent of the votes of members other than the master developer;
36.10 	(iii) the termination date, if any, in the master declaration; or
36.11 	(iv) the date when at least 75 percent of the total units and other parcels of real estate 
36.12 	referred to in subsection (e)(1)(vii) have been conveyed to persons other than a master 
36.13 	developer, master association, declarant, or association.
36.14 	(2) Upon the termination of the period of master developer control, the master board 
36.15 	shall cause a meeting of the members of the master association to be called and held within 
36.16 	60 days after said termination, at which time the directors shall be elected by all members, 
36.17 	including the master developer if a member. If the master board fails or refuses to call a 
36.18 	meeting of the unit owners required to be called by this subsection, then the members other 
36.19 	than the master developer and its affiliates, if they are members, may cause the meeting to 
36.20 	be called pursuant to the applicable provisions of the statute under which the master 
36.21 	association was created. If the master developer or its affiliates are members, they shall be 
36.22 	deemed to be present at the meeting for purposes of establishing a quorum regardless of 
36.23 	their failure to attend the meeting. The master board shall thereafter be subject to the 
36.24 	following:
36.25 	(i) unless otherwise approved by a vote of members other than the master developer or 
36.26 	an affiliate of the master developer, a majority of the directors shall be members, or a natural 
36.27 	person designated by a member that is not a natural person, other than the master developer 
36.28 	or an affiliate of the master developer;
36.29 	(ii) subject to the requirements of subsection (c)(2)(i), the articles of incorporation or 
36.30 	bylaws may authorize the master developer or a person designated by the master developer 
36.31 	to appoint one director, who need not be a member. The articles of incorporation or bylaws 
36.32 	shall not be amended to change or terminate the authorization to appoint one director without 
36.33 	the written consent of the master developer or other person possessing the power to appoint; 
36.34 	and
37.1 	(iii) subject to the requirements of subsection (c)(2)(i), the articles of incorporation or 
37.2 	bylaws may authorize special classes of directors and director voting rights, as follows: (A) 
37.3 	classes of directors, (B) the appointment or election of directors in certain classes by certain 
37.4 	classes of members, or (C) class voting by classes of directors on issues affecting only a 
37.5 	certain class or classes of members, units, or other parcels of real estate, or to otherwise 
37.6 	protect the legitimate interests of such class or classes. No person may utilize such special 
37.7 	classes or class voting for the purpose of evading any limitation imposed by this chapter on 
37.8 	master developers or declarants.
37.9 	(d) Subject to subsection (c)(1), the officers of a master association shall be elected, 
37.10 	appointed, or designated in a manner consistent with the statute under which the master 
37.11 	association is formed and consistent with the master association articles of incorporation 
37.12 	and bylaws.
37.13 	(e) The creation and authority of a master association shall be governed by the following 
37.14 	requirements:
37.15 	(1) A master declaration shall be recorded in connection with the creation of a master 
37.16 	association. The master declaration shall be executed by the owners of the real estate 
37.17 	subjected to the master declaration and by the master developer if not an owner. The master 
37.18 	declaration shall contain, at a minimum:
37.19 	(i) the name of the master association;
37.20 	(ii) a legally sufficient description of the real estate which is subject to the master 
37.21 	declaration, identifying any interest in the real estate which will be owned by the master 
37.22 	association, and a legally sufficient description of any other real estate which may be 
37.23 	subjected to the master declaration pursuant to subsection (f);
37.24 	(iii) a statement as to whether the real estate subject to, and which may be subjected to, 
37.25 	the master declaration collectively is or collectively will be a separate common interest 
37.26 	community;
37.27 	(iv) a description of the members of the master association;
37.28 	(v) a description of the master association's powers. To the extent described in the master 
37.29 	declaration, a master association has the powers with respect to the master association's 
37.30 	members and the property subject to the master declaration that section 515B.3-102 grants 
37.31 	to an association with respect to the association's members and the property subject to the 
37.32 	declaration. A master association also has the powers delegated to it by an association 
37.33 	pursuant to subsection (e)(2) or by a property owners' association not subject to the chapter; 
38.1 	provided (A) that the master declaration identifies the powers and authorizes the delegation 
38.2 	either expressly or by a grant of authority to the master board of the association or property 
38.3 	owners' association and (B) that the master association board has not refused the delegation 
38.4 	pursuant to subsection (e)(4). The provisions of the declarations of the common interest 
38.5 	communities, or the provisions of recorded instruments governing other property subject 
38.6 	to the master declaration, that delegate powers to the master association shall be consistent 
38.7 	with the provisions of the master declaration that govern the delegation of the powers;
38.8 	(vi) a description of the formulas governing the allocation of assessments and member 
38.9 	voting rights, including any special classes or class voting referred to in subsection (c);
38.10 	(vii) a statement, based upon the master developer's good faith estimate, of the total 
38.11 	number of units and other parcels of real estate intended for ownership by persons other 
38.12 	than a master developer, master association, declarant, or association that are (A) subject 
38.13 	to the master declaration as initially recorded and (B) intended to be created by the addition 
38.14 	of real estate or by the subdivision of units or other parcels of real estate; and
38.15 	(viii) the requirements for amendment of the master declaration, other than an amendment 
38.16 	under subsection (f).
38.17 	(2) The declaration of a common interest community located on property subject to a 
38.18 	master declaration may:
38.19 	(i) delegate any of the powers described in section 515B.3-102 to the master association; 
38.20 	provided, that a delegation of the powers described in section 515B.3-102(a)(2) is effective 
38.21 	only if expressly stated in the declaration; and
38.22 	(ii) authorize the board to delegate any of the powers described in section 515B.3-102, 
38.23 	except for the powers described in section 515B.3-102(a)(2), to the master association.
38.24 	(3) With respect to any other property subject to a master association, there need not be 
38.25 	an instrument other than the master declaration recorded against the property to empower 
38.26 	the master association to exercise powers with respect to the property.
38.27 	(4) If a declaration or other recorded instrument authorizes the master board or the board 
38.28 	of a property owners' association to delegate powers to a master association, the master 
38.29 	board may refuse any delegation of powers that does not comply with (i) this chapter, (ii) 
38.30 	the declaration or other recorded instrument, or (iii) the organizational documents of the 
38.31 	master association.
38.32 	(5) The failure of a declaration, a master board, or an owner of property subject to a 
38.33 	master association to properly delegate some or all of the powers to the master association 
39.1 	does not affect the authority of the master association to exercise those and other powers 
39.2 	with respect to other common interest communities or owners of properties that are subject 
39.3 	to the master association.
39.4 	(6) Any interest in the real estate subject to a master declaration that subsection (e)(1)(ii) 
39.5 	or (f) indicates will be owned by the master association shall be conveyed to the master 
39.6 	association immediately after the recording of the master declaration or amendment to the 
39.7 	master declaration, as applicable.
39.8 	(f) If the master declaration so provides, other real estate may be subjected to the master 
39.9 	declaration. The other real estate shall be subjected to the master declaration by an 
39.10 	amendment executed (i) by the master developer and (ii) by the owner of the other real 
39.11 	estate. The amendment shall identify any ownership interest in the other real estate that will 
39.12 	be owned by the master association.
39.13 	(g) Sections 515B.3-103(a), (b), and (g), 515B.3-108, 515B.3-109, 515B.3-110, and 
39.14 	515B.3-112 shall apply in the conduct of the affairs of a master association. But the rights 
39.15 	of voting, notice, and other rights enumerated in those sections apply to persons who elect 
39.16 	or appoint the directors of a master board, whether or not those persons are otherwise unit 
39.17 	owners within the meaning of this chapter.
39.18 	(h) If so provided in the master declaration, a master association may levy assessments 
39.19 	for common expenses of the master association against its members and the property subject 
39.20 	to the master declaration, and have and foreclose liens securing the assessments. The 
39.21 	assessment liens shall have the same priority against secured parties, shall include the same 
39.22 	fees and charges, and may be foreclosed in the same manner, as assessment liens under 
39.23 	section 515B.3-116. The master association's lien shall have priority as against the lien of 
39.24 	an association or property owners' association subject to the master association, regardless 
39.25 	of when the lien arose or was perfected.
39.26 	(1) Master association common expenses shall be allocated among the members of the 
39.27 	master association in a fair and equitable manner. If the members include associations or 
39.28 	property owners' associations, then the master assessments may be allocated among and 
39.29 	levied against the associations or property owners' associations, or allocated among and 
39.30 	levied against the units or other parcels of real estate owned by the members of the association 
39.31 	or property owners' association. If so provided in the master declaration, master assessments 
39.32 	levied against a member association or property owners' association are allocated among 
39.33 	and levied against the units or other parcels of real estate owned by the members of the 
39.34 	association or property owners' association. If applicable and appropriate, the formulas and 
40.1 	principles described in section 515B.2-108, subsections (b) 515B.2-108(b), (c), (d), and (e), 
40.2 	shall be used in making the allocations. The assessment formulas and procedures described 
40.3 	in the declarations of any common interest communities or any instruments governing other 
40.4 	real estate subject to the master association shall not conflict with the formulas and procedures 
40.5 	described in the master declaration.
40.6 	(2) Subject to subsection (i), the master declaration may exempt from liability for all or 
40.7 	a portion of master association assessments any person authorized by subsection (c)(1) to 
40.8 	appoint the members of the master board, or any other person, and exempt any unit or other 
40.9 	parcel of real estate owned by the person from a lien for such assessments, until the building 
40.10 	containing the unit, or located within the boundaries of the unit or other parcel of real estate, 
40.11 	is substantially completed. Substantial completion shall be evidenced by a certificate of 
40.12 	occupancy in a jurisdiction that issues that certificate.
40.13 	(i) A master association shall not be used, directly or indirectly, to avoid or nullify any 
40.14 	warranties or other obligations for which a declarant of a common interest community 
40.15 	subject to the master association is responsible, or to otherwise avoid the requirements of 
40.16 	this chapter.

40.17 	Sec. 15. Minnesota Statutes 2024, section 515B.2-124, is amended to read:
40.18 	515B.2-124 SEVERANCE OF COMMON INTEREST COMMUNITY.
40.19 	(a) Unless the declaration provides otherwise, a part of a common interest community 
40.20 	containing one or more units, with or without common elements, may be severed from the 
40.21 	common interest community, subject to the requirements of this section. Subject to any 
40.22 	additional requirements contained in the declaration, the severance shall be approved in a 
40.23 	written severance agreement complying with this section, executed by:
40.24 	(1) unit owners entitled to cast at least 67 percent of the votes in the association, which 
40.25 	approval shall include the approval of unit owners entitled to cast a majority of the votes 
40.26 	allocated to units in the remaining common interest community and the approval of unit 
40.27 	owners entitled to cast a majority of the votes allocated to units in the part of the common 
40.28 	interest community being severed;
40.29 	(2) declarant until the earlier of five years after the recording of the declaration or the 
40.30 	time at which declarant no longer owns an unsold unit; and
40.31 	(3) in the case of a cooperative, all holders of mortgages or contracts for deed on the 
40.32 	entire real estate constituting the cooperative.
41.1 	(b) The declaration may specify a smaller percentage for unit owner approval only if all 
41.2 	of the units are restricted to nonresidential use.
41.3 	(c) The severance agreement shall specify a severance date by which the severance of 
41.4 	the common interest community shall be accomplished, after which the severance agreement 
41.5 	is void. The severance agreement shall be deemed to grant to the association a power of 
41.6 	attorney coupled with an interest to effect the severance of the common interest community 
41.7 	on behalf of the unit owners and the holders of all other interests in the units, including 
41.8 	without limitations the power to execute the amendment to the declaration, any instruments 
41.9 	of conveyance, and all related instruments.
41.10 	(d) The severance agreement shall:
41.11 	(1) Approve an amendment to the declaration complying with this chapter, in substantially 
41.12 	the same form to be recorded, and an amendment to the CIC plat if required. The declaration 
41.13 	amendment shall, at a minimum, (i) legally describe the real estate constituting the remaining 
41.14 	common interest community and the real estate being severed, (ii) restate the number of 
41.15 	units in the remaining common interest community, (iii) reallocate the interests of the unit 
41.16 	owners in the remaining common interest community among the remaining units in 
41.17 	accordance with the allocation formula set forth in the declaration, and (iv) recite any 
41.18 	easements to which the severed portion of the common interest community remains subject.
41.19 	(2) Approve an amendment to the articles of incorporation and bylaws of the remaining 
41.20 	common interest community, if necessary.
41.21 	(3) Authorize the association to execute and record the amended declaration, articles of 
41.22 	incorporation or bylaws on behalf of the unit owners and all other persons holding an interest 
41.23 	in the remaining common interest community, and to take other actions necessary to 
41.24 	accomplish the severance of the common interest community.
41.25 	(4) Allocate the assets and liabilities of the association between the association and (i) 
41.26 	a new association formed pursuant to subsection (g), or (ii) the owners of the units being 
41.27 	severed, subject to a lien against their interest in the severed real estate or their share in the 
41.28 	assets of the association in favor of any person that held a security interest in their unit.
41.29 	(5) If the units that are being severed from the common interest community will not be 
41.30 	included in a new common interest community that is (i) formed simultaneously with the 
41.31 	severance of the common interest community, and (ii) includes all of the units and 
41.32 	substantially all of the common elements being severed, then the agreement shall contain 
41.33 	the written consent of holders of first mortgages on all units that are being severed, and 
41.34 	shall describe in detail the proposed disposition of all real estate to be severed and all assets 
42.1 	of the association allocated to the severed units, and the distribution of the proceeds of the 
42.2 	disposition, if any, consistent with subsection (i).
42.3 	(e) The severance agreement or a memorandum of it shall be recorded in every county 
42.4 	in which a part of the common interest community is located. The recording of the severance 
42.5 	agreement or memorandum of it shall, from the date of recording, constitute notice to all 
42.6 	persons subsequently acquiring an interest in the common interest community that the 
42.7 	common interest community is being severed, and that those persons acquire their interests 
42.8 	subject to the terms and conditions contained in the severance agreement and the amendment 
42.9 	to the declaration.
42.10 	(f) The amendment to the declaration of the remaining common interest community 
42.11 	shall be recorded on or before the severance date or the severance agreement and the 
42.12 	amendment to the declaration are void as of the day after the severance date. The recording 
42.13 	of the amendment to the declaration shall complete the severance of the common interest 
42.14 	community and release the severed part of the common interest community from the 
42.15 	declaration without further action by any person.
42.16 	(g) If the units that are being severed from the common interest community will be 
42.17 	included in a new common interest community, then unit owners entitled to cast at least 80 
42.18 	percent of the votes allocated by the existing declaration to these units shall approve a new 
42.19 	declaration, articles of incorporation and bylaws to govern the new common interest 
42.20 	community no later than the date of the severance agreement. However, the new declaration 
42.21 	shall not create, increase, or extend special declarant rights, increase the number of units, 
42.22 	change unit boundaries, change the formula for allocations of interests, change the use of 
42.23 	a unit from residential to nonresidential or conversely, or change the form of common 
42.24 	interest community, unless agreed to in writing by all owners whose units are being severed. 
42.25 	The new declaration shall be recorded simultaneously with the amendment to the existing 
42.26 	declaration. The articles of incorporation creating the association intended to govern the 
42.27 	new common interest community shall be filed with the secretary of state and the unit owners 
42.28 	whose units are being severed shall elect a board of directors to act on behalf of the new 
42.29 	association before the recording of the new declaration. The new association shall have a 
42.30 	power of attorney coupled with an interest to execute and record the new declaration, any 
42.31 	instruments of conveyance, and all related instruments on behalf of the unit owners whose 
42.32 	units are being severed from the common interest community, but shall not thereby acquire 
42.33 	any rights or obligations of a declarant. The board of directors of the new association shall 
42.34 	cooperate with the board of directors of the existing association to complete the severance. 
42.35 	The existing association shall retain all authority to act on behalf of the common interest 
43.1 	community until the amendment to the existing declaration and the new declaration are 
43.2 	recorded.
43.3 	(h) The legal descriptions of the real estate constituting (i) the remaining common interest 
43.4 	community, and (ii) the severed portion of the common interest community shall, at the 
43.5 	time of recording of the amendment to the declaration referred to in subsection (e), be as 
43.6 	follows:
43.7 	(1) In a planned community using a CIC plat that complies with section 515B.2-110, 
43.8 	subsection (d) 515B.2-110(d)(1) and (2) or 515B.2-1101(d)(1) and (2), the lot and block 
43.9 	descriptions contained in the CIC plat, and any amendments to it, with respect to (i) the 
43.10 	remaining common interest community, and (ii) the severed portion of the common interest 
43.11 	community.
43.12 	(2) In a condominium, or cooperative or planned community using a CIC plat that 
43.13 	complies with section 515B.2-110, subsection (c) 515B.2-110(c) or 515B.2-1101(c), (i) the 
43.14 	CIC plat description relating to the remaining common interest community, and (ii) the part 
43.15 	of the underlying legal description of the real estate in the declaration creating the common 
43.16 	interest community, and any amendments to it, relating to the severed part of the common 
43.17 	interest community.
43.18 	(3) The recording officer for each county in which the common interest community is 
43.19 	located shall index the property located in that county in its records under the legal 
43.20 	descriptions required by this subsection as of the date of recording of the amendment to the 
43.21 	declaration. In the case of registered property, the registrar of titles shall cancel the existing 
43.22 	certificates of title for the severed part of the common interest community and issue 
43.23 	certificates of title for the property using the legal descriptions required by this subsection.
43.24 	(i) In a condominium or planned community, if the severed part of the common interest 
43.25 	community is not to be reconstituted as a new common interest community following 
43.26 	severance, title to all the real estate in the severed part of the common interest community 
43.27 	vests in the unit owners of the units being severed, upon severance, as provided in the 
43.28 	severance agreement.
43.29 	(j) No common interest community shall be severed in such a manner as to materially 
43.30 	impair access, utility services, communication services, or other essential services with 
43.31 	respect to either the remaining common interest community or the severed part of the 
43.32 	common interest community.

44.1 	Sec. 16. Minnesota Statutes 2024, section 515B.2-125, is amended to read:
44.2 	515B.2-125 ADDITION OF COMMON ELEMENTS.
44.3 	(a) Unless the declaration provides otherwise, real estate owned by the association may 
44.4 	be added to the common interest community, as common elements only, subject to the 
44.5 	requirements of this section. Subject to any additional requirements contained in the 
44.6 	declaration, the addition of the real estate shall be approved by:
44.7 	(1) unit owners entitled to cast at least 67 percent of the votes in the association;
44.8 	(2) declarant until the earlier of (i) five years after the recording of the declaration, or 
44.9 	(ii) the time at which declarant no longer owns an unsold unit; and
44.10 	(3) in the case of a cooperative, all holders of mortgages or contracts for deed on the 
44.11 	entire real estate constituting the cooperative.
44.12 	(b) The declaration may specify a smaller percentage for unit owner approval only if all 
44.13 	of the units are restricted to nonresidential use. A part of the common elements shall not be 
44.14 	designated as limited common elements unless approved unanimously in writing by the 
44.15 	unit owners.
44.16 	(c) The approval by the unit owners shall be deemed to grant to the association a power 
44.17 	of attorney coupled with an interest to acquire title to the real estate, if not previously 
44.18 	acquired, and to add the real estate to the common interest community on behalf of the unit 
44.19 	owners and the holders of all other interests in the units, including without limit the power 
44.20 	to execute an amendment to the declaration and any other instruments relating to the 
44.21 	acquisition.
44.22 	(d) Following the required approvals, the association shall record an amendment to the 
44.23 	declaration complying with this chapter, that, at a minimum, (i) legally describes the real 
44.24 	estate added, (ii) designates the real estate as part of the common elements, and (iii) subjects 
44.25 	the real estate to the declaration.
44.26 	(e) In the case of a common interest community using a plat complying with section 
44.27 	515B.2-110, subsection (c) 515B.2-110(c) or 515B.2-1101(c), the association shall record 
44.28 	an amended CIC plat reflecting the change in the common elements with the amendment 
44.29 	to the declaration. The recording of the amendment to the declaration, and amended CIC 
44.30 	plat if required, shall complete the addition of the real estate without further action by any 
44.31 	person.

45.1 	Sec. 17. Minnesota Statutes 2024, section 515B.3-102, is amended to read:
45.2 	515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.
45.3 	(a) Except as provided in subsections (b), (c), (d), (e), and (f) and subject to the provisions 
45.4 	of the declaration or bylaws, the association shall have the power to:
45.5 	(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of 
45.6 	incorporation, bylaws and declaration, as follows: (i) regulating the use of the common 
45.7 	elements; (ii) regulating the use of the units, and conduct of unit occupants, which may 
45.8 	jeopardize the health, safety or welfare of other occupants, which involves noise or other 
45.9 	disturbing activity, or which may damage the common elements or other units; (iii) regulating 
45.10 	or prohibiting animals; (iv) regulating changes in the appearance of the common elements 
45.11 	and conduct which may damage the common interest community; (v) regulating the exterior 
45.12 	appearance of the common interest community, including, for example, balconies and patios, 
45.13 	window treatments, and signs and other displays, regardless of whether inside a unit; (vi) 
45.14 	implementing the articles of incorporation, declaration and bylaws, and exercising the 
45.15 	powers granted by this section; and (vii) otherwise facilitating the operation of the common 
45.16 	interest community;
45.17 	(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and 
45.18 	collect assessments for common expenses from unit owners;
45.19 	(3) hire and discharge managing agents and other employees, agents, and independent 
45.20 	contractors;
45.21 	(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its 
45.22 	own name on behalf of itself or two or more unit owners on matters affecting the common 
45.23 	elements or other matters affecting the common interest community or, (ii) with the consent 
45.24 	of the owners of the affected units on matters affecting only those units;
45.25 	(5) make contracts and incur liabilities;
45.26 	(6) regulate the use, maintenance, repair, replacement, and modification of the common 
45.27 	elements and the units;
45.28 	(7) cause improvements to be made as a part of the common elements, and, in the case 
45.29 	of a cooperative, the units;
45.30 	(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to 
45.31 	real estate or personal property, but (i) common elements in a condominium or planned 
45.32 	community may be conveyed or subjected to a security interest only pursuant to section 
46.1 	515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative 
46.2 	may be subjected to a security interest, only pursuant to section 515B.3-112;
46.3 	(9) grant or amend easements for public utilities, public rights-of-way or other public 
46.4 	purposes, and cable television or other communications, through, over or under the common 
46.5 	elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized 
46.6 	by the declaration; and, subject to approval by a vote of unit owners other than declarant 
46.7 	or its affiliates, grant or amend other easements, leases, and licenses through, over or under 
46.8 	the common elements;
46.9 	(10) impose and receive any payments, fees, or charges for the use, rental, or operation 
46.10 	of the common elements, other than limited common elements, and for services provided 
46.11 	to unit owners;
46.12 	(11) impose interest and late charges for late payment of assessments and, after notice 
46.13 	and an opportunity to be heard before the board or a committee appointed by it, levy 
46.14 	reasonable fines for violations of the declaration, bylaws, and rules and regulations of the 
46.15 	association, provided that attorney fees and costs must not be charged or collected from a 
46.16 	unit owner who disputes a fine or assessment and, if after the homeowner requests a hearing 
46.17 	and a hearing is held by the board or a committee of the board, the board does not adopt a 
46.18 	resolution levying the fine or upholding the assessment against the unit owner or owner's 
46.19 	unit;
46.20 	(12) impose reasonable charges for the review, preparation and recordation of 
46.21 	amendments to the declaration, resale certificates required by section 515B.4-107, statements 
46.22 	of unpaid assessments, or furnishing copies of association records;
46.23 	(13) provide for the indemnification of its officers and directors, and maintain directors' 
46.24 	and officers' liability insurance;
46.25 	(14) provide for reasonable procedures governing the conduct of meetings and election 
46.26 	of directors;
46.27 	(15) exercise any other powers conferred by law, or by the declaration, articles of 
46.28 	incorporation or bylaws; and
46.29 	(16) exercise any other powers necessary and proper for the governance and operation 
46.30 	of the association.
46.31 	(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations 
46.32 	on the power of the association to deal with the declarant which are more restrictive than 
46.33 	the limitations imposed on the power of the association to deal with other persons.
47.1 	(c) An association that levies a fine pursuant to subsection (a)(11), or an assessment 
47.2 	pursuant to section 515B.3-115(g), or 515B.3-1151(g), must provide a dated, written notice 
47.3 	to a unit owner that:
47.4 	(1) states the amount and reason for the fine or assessment;
47.5 	(2) for fines levied under section 515B.3-102(a)(11), specifies: (i) the violation for which 
47.6 	a fine is being levied and the date of the levy; and (ii) the specific section of the declaration, 
47.7 	bylaws, rules, or regulations allegedly violated;
47.8 	(3) for assessments levied under section 515B.3-115(g) or 515B.3-1151(g), identifies: 
47.9 	(i) the damage caused; and (ii) the act or omission alleged to have caused the damage;
47.10 	(4) states that all unpaid fines and assessments are liens which, if not satisfied, could 
47.11 	lead to foreclosure of the lien against the owner's unit;
47.12 	(5) describes the unit owner's right to be heard by the board or a committee appointed 
47.13 	by the board;
47.14 	(6) states that if the assessment, fine, late fees, and other allowable charges are not paid, 
47.15 	the amount may increase as a result of the imposition of attorney fees and other collection 
47.16 	costs; and
47.17 	(7) informs the unit owner that homeownership assistance is available from the Minnesota 
47.18 	Homeownership Center.
47.19 	(d) Notwithstanding subsection (a), powers exercised under this section must comply 
47.20 	with sections 500.215, 500.216, and 500.217.
47.21 	(e) Notwithstanding subsection (a)(4) or any other provision of this chapter, for common 
47.22 	interest communities created on or after August 1, 2017, the association, before instituting 
47.23 	litigation or arbitration involving construction defect claims against a development party, 
47.24 	shall:
47.25 	(1) mail or deliver written notice of the anticipated commencement of the action to each 
47.26 	unit owner at the addresses, if any, established for notices to owners in the declaration and, 
47.27 	if the declaration does not state how notices are to be given to owners, to the owner's last 
47.28 	known address. The notice shall specify the nature of the construction defect claims to be 
47.29 	alleged, the relief sought, and the manner in which the association proposes to fund the cost 
47.30 	of pursuing the construction defect claims; and
47.31 	(2) obtain the approval of owners of units to which a majority of the total votes in the 
47.32 	association are allocated. Votes allocated to units owned by the declarant, an affiliate of the 
48.1 	declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale 
48.2 	are excluded. The association may obtain the required approval by a vote at an annual or 
48.3 	special meeting of the members or, if authorized by the statute under which the association 
48.4 	is created and taken in compliance with that statute, by a vote of the members taken by 
48.5 	electronic means or mailed ballots. If the association holds a meeting and voting by electronic 
48.6 	means or mailed ballots is authorized by that statute, the association shall also provide for 
48.7 	voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means 
48.8 	or mailed ballots, except that the votes must be used in combination with the vote taken at 
48.9 	a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered 
48.10 	for purposes of determining whether a quorum was present. Proxies may not be used for a 
48.11 	vote taken under this paragraph unless the unit owner executes the proxy after receipt of 
48.12 	the notice required under subsection (e)(1) and the proxy expressly references this notice.
48.13 	(f) For common interest communities created on or after August 1, 2017, the association 
48.14 	may intervene in a litigation or arbitration involving a construction defect claim or assert a 
48.15 	construction defect claim as a counterclaim, crossclaim, or third-party claim before complying 
48.16 	with subsections (e)(1) and (e)(2) but the association's complaint in an intervention, 
48.17 	counterclaim, crossclaim, or third-party claim shall be dismissed without prejudice unless 
48.18 	the association has complied with the requirements of subsection (e) within 90 days of the 
48.19 	association's commencement of the complaint in an intervention or the assertion of the 
48.20 	counterclaim, crossclaim, or third-party claim.

48.21 	Sec. 18. Minnesota Statutes 2025 Supplement, section 515B.3-103, is amended to read:
48.22 	515B.3-103 BOARD OF DIRECTORS, OFFICERS AND DECLARANT 
48.23 	CONTROL.
48.24 	(a) An association shall be governed by a board of directors whose appointment or 
48.25 	election shall occur no later than the date of creation of the common interest community 
48.26 	and shall be reflected in the association's records. Except as expressly prohibited by the 
48.27 	declaration, the articles of incorporation, bylaws, subsection (b), or other provisions of this 
48.28 	chapter, the board may act in all instances on behalf of the association. In the performance 
48.29 	of their duties, the officers and directors are required to exercise (i) if appointed by the 
48.30 	declarant, the care required of fiduciaries of the unit owners and (ii) if elected by the unit 
48.31 	owners, the care required of a director by section 302A.251, 308B.455, 308C.455, or 
48.32 	317A.251, as applicable. The officers and directors appointed by the declarant shall have 
48.33 	a duty to fulfill, and to cause the association to fulfill, their respective obligations under the 
48.34 	declaration, bylaws, articles of incorporation, and this chapter and to enforce the provisions 
49.1 	of the declaration, bylaws, articles of incorporation, and this chapter against all unit owners, 
49.2 	including the declarant and its affiliates, in a uniform and fair manner. The standards of 
49.3 	conduct for officers and directors set forth in this subsection shall also apply to the officers 
49.4 	and directors of master associations in the exercise of their duties on behalf of the master 
49.5 	association. Notwithstanding the provisions of section 317A.203, if an association is formed 
49.6 	under chapter 317A and consists of fewer than three units, the number of directors may be 
49.7 	equal to or greater than the number of units.
49.8 	(b) The board may not act unilaterally to amend the declaration, to terminate the common 
49.9 	interest community, to elect directors to the board, or to determine the qualifications, powers 
49.10 	and duties, or terms of office of directors, but the board may fill vacancies in its membership 
49.11 	created other than by removal by the vote of the association members for the unexpired 
49.12 	portion of any term.
49.13 	(c) The declaration may provide for a period of declarant control of the association, 
49.14 	during which a declarant, or persons designated by the declarant, may appoint and remove 
49.15 	the officers and directors of the association. The period of declarant control begins on the 
49.16 	date of creation of the common interest community and terminates upon the earliest of the 
49.17 	following events: (i) five years after the date of the first conveyance of a unit to a unit owner 
49.18 	other than a declarant in the case of a flexible common interest community or three years 
49.19 	in the case of any other common interest community, (ii) the declarant's voluntary surrender 
49.20 	of control by giving written notice to the unit owners pursuant to section 515B.1-115, or 
49.21 	(iii) the conveyance of 75 percent of the units to unit owners other than a declarant.
49.22 	(d) The board shall cause a meeting of the unit owners to be called, as follows:
49.23 	(1) If the period of declarant control has terminated pursuant to subsection (c), a meeting 
49.24 	of the unit owners shall be called and held within 60 days after said termination, at which 
49.25 	the board shall be appointed or elected by all unit owners, including declarant, subject to 
49.26 	the requirements of subsection (e).
49.27 	(2) If 50 percent of the units that a declarant is authorized by the declaration to create 
49.28 	have been conveyed prior to the termination of the declarant control period, a meeting of 
49.29 	the unit owners shall be called and held within 60 days thereafter, at which not less than 
49.30 	33-1/3 percent of the members of the board shall be elected by unit owners other than a 
49.31 	declarant or an affiliate of a declarant.
49.32 	(3) If the board fails or refuses to cause a meeting of the unit owners required to be called 
49.33 	pursuant to subsection (d), then the unit owners other than a declarant and its affiliates may 
49.34 	cause the meeting to be called pursuant to the applicable provisions of the law under which 
50.1 	the association was created. The declarant and its affiliates shall be deemed to be present 
50.2 	at the meeting for purposes of establishing a quorum regardless of their failure to attend the 
50.3 	meeting.
50.4 	(e) Following the termination of any period of declarant control, the unit owners shall 
50.5 	appoint or elect the board. All unit owners, including the declarant and its affiliates, may 
50.6 	cast the votes allocated to any units owned by them. The board shall thereafter be subject 
50.7 	to the following:
50.8 	(1) Unless otherwise approved by a vote of unit owners other than the declarant or an 
50.9 	affiliate of the declarant, a majority of the directors shall be unit owners or a natural person 
50.10 	designated by a unit owner that is not a natural person, other than a declarant or an affiliate 
50.11 	of a declarant. The remaining directors need not be unit owners unless required by the 
50.12 	articles of incorporation or bylaws.
50.13 	(2) Subject to the requirements of subsection (e)(1), the articles of incorporation or 
50.14 	bylaws may authorize the declarant or a person designated by the declarant to appoint one 
50.15 	director, who need not be a member. The articles of incorporation or bylaws shall not be 
50.16 	amended to change or terminate the authorization to appoint one director without the written 
50.17 	consent of the declarant or other person possessing the power to appoint.
50.18 	(3) Subject to the requirements of subsection (e)(1), the articles of incorporation or 
50.19 	bylaws may authorize special classes of directors and director voting rights, as follows: (i) 
50.20 	classes of directors, (ii) the appointment or election of directors in certain classes by certain 
50.21 	classes of members, or (iii) class voting by classes of directors on issues affecting only a 
50.22 	certain class or classes of members, units, or other parcels of real estate, or to otherwise 
50.23 	protect the legitimate interest of such class or classes. No person may utilize such special 
50.24 	classes or class voting for the purpose of evading any limitation imposed on declarants by 
50.25 	this chapter.
50.26 	(4) The board shall elect the officers. The directors and officers shall take office upon 
50.27 	election.
50.28 	(f) In determining whether the period of declarant control has terminated under subsection 
50.29 	(c), or whether unit owners other than a declarant are entitled to elect members of the board 
50.30 	of directors under subsection (d), the percentage of the units conveyed shall be calculated 
50.31 	using as a numerator the number of units conveyed and as a denominator the number of 
50.32 	units subject to the declaration plus the number of units which the declarant is authorized 
50.33 	by the declaration to create on any additional real estate. The percentages referred to in 
50.34 	subsections (c) and (d) shall be calculated without reference to units that are auxiliary to 
51.1 	other units, such as garage units or storage units. A person shall not use a master association 
51.2 	or other device to evade the requirements of this section.
51.3 	(g) Except as otherwise provided in this subsection, meetings of the board of directors 
51.4 	must be open to the unit owners. To the extent practicable, the board shall give reasonable 
51.5 	notice to the unit owners of the date, time, and place of a board meeting. If the date, time, 
51.6 	and place of meetings are provided for in the declaration, articles, or bylaws, announced at 
51.7 	a previous meeting of the board, posted in a location accessible to the unit owners and 
51.8 	designated by the board from time to time, or if an emergency requires immediate 
51.9 	consideration of a matter by the board, notice is not required. "Notice" has the meaning 
51.10 	given in section 317A.011, subdivision 14. Meetings may be closed to discuss the following:
51.11 	(1) personnel matters;
51.12 	(2) pending or potential litigation, arbitration or other potentially adversarial proceedings, 
51.13 	between unit owners, between the board or association and unit owners, or other matters in 
51.14 	which any unit owner may have an adversarial interest, if the board determines that closing 
51.15 	the meeting is necessary to discuss strategy or to otherwise protect the position of the board 
51.16 	or association or the privacy of a unit owner or occupant of a unit; or
51.17 	(3) criminal activity arising within the common interest community if the board 
51.18 	determines that closing the meeting is necessary to protect the privacy of the victim or that 
51.19 	opening the meeting would jeopardize investigation of the activity.
51.20 	Nothing in this subsection imposes a duty on the board to provide special facilities for 
51.21 	meetings. The failure to give notice as required by this subsection shall not invalidate the 
51.22 	board meeting or any action taken at the meeting. The minutes of any part of a meeting that 
51.23 	is closed under this subsection may be kept confidential at the discretion of the board.

51.24 	Sec. 19. Minnesota Statutes 2024, section 515B.3-1041, is amended to read:
51.25 	515B.3-1041 SPECIAL DECLARANT RIGHTS; TRANSFER, LIABILITY OF 
51.26 	TRANSFEROR AND TRANSFEREE, AND TERMINATION; SPECIAL 
51.27 	DECLARANT RIGHTS TRANSFERRED ON OR AFTER AUGUST 1, 2010.
51.28 	(a) Except as set forth in subsection (b) or (c), a special declarant right, as defined in 
51.29 	section 515B.1-103(33b) 515B.1-103(33a) or (33b), does not run with title and may only 
51.30 	be transferred pursuant to a separate transfer instrument, titled a "Transfer of Special 
51.31 	Declarant Rights," that both the transferor and the transferee execute.
51.32 	(1) A transfer shall be recorded in compliance with applicable law, and is not effective 
51.33 	unless the transferee is the owner of record of a unit or additional real estate at the time the 
52.1 	transfer is recorded. Transfers recorded on or after June 1, 2011, shall be recorded against 
52.2 	title to all units in the common interest community.
52.3 	(2) A transferor may transfer fewer than all of the special declarant rights the transferor 
52.4 	holds provided that any special declarant rights not transferred are subject to item (i).
52.5 	(3) If as a result of a transfer there will be multiple declarants holding special declarant 
52.6 	rights, the transfer shall describe the allocation of each special declarant right between or 
52.7 	among the transferor and each transferee, including, at a minimum, a description of the 
52.8 	units or additional real estate to which the respective special declarant rights apply and the 
52.9 	name and address of the owner or owners of record of the respective units or additional real 
52.10 	estate at the time the transfer is recorded.
52.11 	(b) If a declarant's ownership interest in a unit, or in additional real estate that may 
52.12 	become subject to the declaration pursuant to the exercise of a special declarant right, is 
52.13 	transferred to another person as a result of the foreclosure, termination, or cancellation of 
52.14 	a security interest, foreclosure of a judgment lien, tax judgment sale, tax-forfeited land sale, 
52.15 	sale or transfer under bankruptcy code or receivership proceedings, or other sale or transfer 
52.16 	approved by a court, or is transferred by a deed in lieu of foreclosure, then all special 
52.17 	declarant rights that are reserved to the declarant in the declaration and that relate to the 
52.18 	units or additional real estate transferred are automatically transferred to the person acquiring 
52.19 	title from the declarant, and the transfer is effective as to all special declarant rights, unless 
52.20 	or until: (i) the security instrument in the case of the foreclosure, termination, or cancellation 
52.21 	of a security interest, (ii) the instrument effecting the involuntary transfer, or (iii) a separate 
52.22 	instrument executed by the transferee and recorded in compliance with applicable law within 
52.23 	60 days after the date the transferee acquires title to the declarant's ownership interest, 
52.24 	provides for the transfer of fewer than all of the declarant's special declarant rights. From 
52.25 	and after June 1, 2011, a separate instrument recorded pursuant to subsection (b), item (iii), 
52.26 	shall be recorded against title to all units in the common interest community. For purposes 
52.27 	of this subsection, the transferee shall be deemed to acquire title upon the expiration of the 
52.28 	owner's period of redemption, or reinstatement in the case of contract for deed. The transferor 
52.29 	shall cease to have and shall not exercise any special declarant right that relates to the 
52.30 	transferor's ownership interest in the units or additional real estate transferred, whether or 
52.31 	not the transferee subsequently disclaims the right, but the transferor retains all reserved 
52.32 	special declarant rights that relate to its ownership interest that is not transferred to the 
52.33 	transferee.
52.34 	(c) If a declarant is an individual rather than a legal entity, and the individual dies, than 
52.35 	all special declarant rights that are reserved to the declarant in the declaration and that relate 
53.1 	to the units or additional real estate owned by the declarant are automatically transferred 
53.2 	with the title to said units or additional real estate.
53.3 	(d) A transferor's liability for the performance of obligations that this chapter imposes 
53.4 	upon a declarant is as follows:
53.5 	(1) A transferor remains liable under this chapter for all obligations that this chapter 
53.6 	imposes upon a declarant that arise on or before the effective date of the transfer, except 
53.7 	that a transferor is not liable under section 515B.4-112 for any express warranties that a 
53.8 	transferee makes to a purchaser. Except as set forth in subsection (d), clauses (2) and (3), 
53.9 	a transferor is not liable under this chapter for the performance of any obligations that this 
53.10 	chapter imposes upon a declarant and arising after the effective date of the transfer.
53.11 	(2) If a transferor and a transferee are affiliates, the transferor and the transferee are 
53.12 	jointly and severally liable under this chapter for the performance of all the obligations that 
53.13 	this chapter imposes upon a declarant, whether such obligations arise before, on, or after 
53.14 	the effective date of the transfer. Upon a subsequent transfer, a prior transferor remains 
53.15 	liable to the extent its transferee remains liable under subsection (d) and is relieved of 
53.16 	liability to the same extent that its transferee is relieved of liability under subsection (e).
53.17 	(3) If, following a transfer of special declarant rights, the transferor retains special 
53.18 	declarant rights, the transferor and transferee are jointly and severally liable for the 
53.19 	performance of all the obligations that this chapter imposes upon a declarant and that arise 
53.20 	after the effective date of the transfer, except that the transferor is not liable under section 
53.21 	515B.4-101(b) or,515B.4-102(b), and section or 515B.4-1021(b), as applicable,515B.4-109, 
53.22 	515B.4-110, 515B.4-111, 515B.4-112, 515B.4-113, 515B.4-117, or 515B.4-118, to any 
53.23 	purchaser from or through the transferee.
53.24 	(e) Except as provided in subsections (g) and (h), a transferee's liability for the 
53.25 	performance of obligations that this chapter imposes upon a declarant is as follows:
53.26 	(1) Except as set forth in subsection (e), clause (3), a transferee is liable under this chapter 
53.27 	for all obligations that this chapter imposes upon a declarant and that arise after the effective 
53.28 	date of the transfer. A transferee is not liable under this chapter for the performance of any 
53.29 	obligations that this chapter imposes upon a declarant and that arise before or on the effective 
53.30 	date of the transfer, except that a transferee is liable under section 515B.4-112 for any 
53.31 	express warranties the transferee makes to a purchaser before or on the effective date of the 
53.32 	transfer.
53.33 	(2) If a transferor and a transferee are affiliates, the transferor and the transferee are 
53.34 	jointly and severally liable under this chapter for the performance of all the obligations that 
54.1 	this chapter imposes upon a declarant, whether such obligations arise before, on, or after 
54.2 	the effective date of the transfer. Upon a subsequent transfer, a prior transferor remains 
54.3 	liable to the extent its transferee remains liable under subsection (d) and is relieved of 
54.4 	liability to the same extent that its transferee is relieved of liability under this subsection.
54.5 	(3) If, following a transfer of special declarant rights under subsection (a) or (b), the 
54.6 	transferor retains special declarant rights, the transferor and transferee are jointly and 
54.7 	severally liable for the performance of all the obligations that this chapter imposes upon a 
54.8 	declarant and that arise after the effective date of the transfer, except that the transferee is 
54.9 	not liable under section 515B.4-101(b) or,515B.4-102(b), and section or 515B.4-1021(b), 
54.10 	as applicable,515B.4-109, 515B.4-110, 515B.4-111, 515B.4-112, 515B.4-113, 515B.4-117, 
54.11 	or 515B.4-118, to any purchaser from or through the transferor.
54.12 	(f) For purposes of this section, a declarant's obligations under section 515B.3-111(a) 
54.13 	arise when the tort or contract violation occurs, a declarant's obligations to a purchaser under 
54.14 	section 515B.4-112 arise when the declarant makes an express warranty to the purchaser 
54.15 	and a declarant's obligations to a purchaser under sections 515B.4-113 and 515B.4-118(a) 
54.16 	arise when the declarant conveys a unit to the purchaser.
54.17 	(g) A transferee who acquires special declarant rights pursuant to subsection (b) and 
54.18 	who is not an affiliate of the transferor may record an instrument in compliance with 
54.19 	subsection (b) stating that the transferee elects to acquire only the special declarant rights 
54.20 	described in section 515B.1-103(33b)(i) 515B.1-103(33a)(i), (ii), and (iv) or (33b)(i), (ii), 
54.21 	and (iv). In that case, the transferee is liable as a declarant only to purchasers from said 
54.22 	transferee and only for the obligations of a declarant under sections 515B.4-101(b) and,
54.23 	515B.4-102(b), and sections or 515B.4-1021(b), as applicable,515B.4-109, 515B.4-110, 
54.24 	515B.4-111, 515B.4-113, 515B.4-117, and 515B.4-118, and for any express warranties 
54.25 	under section 515B.4-112 that the transferee makes to purchasers.
54.26 	(h) A transferee who acquires special declarant rights pursuant to subsection (b) and 
54.27 	who is not an affiliate of the transferor may record an instrument in compliance with 
54.28 	subsection (b) stating that the transferee elects to acquire the special declarant rights solely 
54.29 	for subsequent retransfer to another person who acquires title to units or additional real 
54.30 	estate from said transferee. In that case, (i) the transferee may not utilize special declarant 
54.31 	rights in the sale of units or otherwise sell units, except to a person who also acquires one 
54.32 	or more special declarant rights the transferee holds with respect to the units or additional 
54.33 	real estate sold; (ii) the transferee may not exercise any special declarant rights other than 
54.34 	the rights described in section 515B.1-103(33b)(v) 515B.1-103(33a)(viii) or (33b)(v); (iii) 
54.35 	the transferee is not liable to make up any operating deficit under section 515B.3-115(a)(2)
55.1 	or 515B.3-1151(a)(2), as applicable; and (iv) the transferee is liable as a declarant only for 
55.2 	the obligations of a declarant under sections 515B.3-103, 515B.3-111, and 515B.3-120, as 
55.3 	applicable. A transferee who makes the election described in this subsection may 
55.4 	subsequently rescind the election in whole or in part by recording an instrument in compliance 
55.5 	with applicable law, and upon the recording of such an instrument the transferee's rights 
55.6 	and obligations as a declarant shall be as otherwise set forth in this section.
55.7 	(i) Nothing in this section shall subject any transferee of a special declarant right to any 
55.8 	claims against or other obligations of a transferor, other than claims and obligations arising 
55.9 	under this chapter, or the declaration or bylaws.
55.10 	(j) A special declarant right held by a declarant terminates upon the earlier of: (i) that 
55.11 	declarant's voluntary surrender of the special declarant right by giving written notice to the 
55.12 	unit owners pursuant to section 515B.1-115; or (ii) the conveyance, whether voluntary or 
55.13 	involuntary, by that declarant, of all of the units and additional real estate owned by that 
55.14 	declarant, unless immediately after the conveyance the special declarant right is transferred 
55.15 	to the grantee. All special declarant rights terminate ten years after the date of the first 
55.16 	conveyance of a unit to a person other than a declarant unless extended by the vote or written 
55.17 	agreement of unit owners entitled to cast at least 67 percent of the votes allocated to units 
55.18 	not owned by a declarant.
55.19 	(k) No person shall exercise special declarant rights unless, at the time of exercise, the 
55.20 	person holds title of record to one or more units or additional real estate. Any exercise of a 
55.21 	special declarant right in violation of this section shall be void, and the person attempting 
55.22 	to exercise the right shall be liable for all damages and costs arising from its actions.
55.23 	(l) Subsections (a) through (i) apply only to transfers of special declarant rights that are 
55.24 	effective on or after August 1, 2010. Subsections (j) and (k) apply only to special declarant 
55.25 	rights reserved in a declaration that is first recorded on or after August 1, 2010.

55.26 	Sec. 20. Minnesota Statutes 2024, section 515B.3-105, is amended to read:
55.27 	515B.3-105 TERMINATION OF CONTRACTS, LEASES; CIC CREATED 
55.28 	BEFORE AUGUST 1, 2010.
55.29 	(a) If entered into prior to termination of the period of declarant control, (i) any 
55.30 	management contract, employment contract, or lease of recreational facilities, or garages 
55.31 	or other parking facilities, (ii) any contract, lease, or license binding the association, and to 
55.32 	which a declarant or an affiliate of a declarant is a party, or (iii) any contract, lease, or license 
55.33 	binding the association or any unit owner other than the declarant or an affiliate of the 
56.1 	declarant which is not bona fide or which was unconscionable to the unit owners at the time 
56.2 	entered into under the circumstances then prevailing, may be terminated without penalty 
56.3 	by the association under the procedures described in this section.
56.4 	(b) If prior to expiration of the suspension period described in Minnesota Statutes 2008, 
56.5 	section 515B.2-121, subsection (c), paragraph (3) 515B.2-121(c)(3) or the termination of 
56.6 	the period of master developer control described in section 515B.2-121(c)(1), as applicable, 
56.7 	a contract, lease, or license of a type described in subsection (a) is entered into by a person 
56.8 	having authority to appoint the directors of the master association and is binding upon the 
56.9 	master association, then the master association, and not any association, may terminate the 
56.10 	contract, lease, or license under the procedures described in this section.
56.11 	(c) Termination shall be upon no less than 90 days' notice. Notice of termination shall 
56.12 	be given by the association or master association, as applicable, in accordance with section 
56.13 	515B.1-115; provided, that notice shall be effective only if given within two years following 
56.14 	the termination of the period of declarant control or; the suspension period described in 
56.15 	Minnesota Statutes 2008, section 515B.2-121, subsection (c), paragraph (3) 515B.2-121(c)(3); 
56.16 	or the termination of the period of master developer control described in section 
56.17 	515B.2-121(c)(1), as applicable.
56.18 	(d) This section does not apply to:
56.19 	(1) any lease the termination of which would terminate the common interest community;
56.20 	(2) in the case of a cooperative, a mortgage or contract for deed encumbering real estate 
56.21 	owned by the association, except that if the mortgage or contract for deed contains a 
56.22 	contractual obligation involving a type of contract, lease, or license which may be terminated 
56.23 	pursuant to subsection (a) or (b), then that contractual obligation may be terminated pursuant 
56.24 	to subsection (c); or
56.25 	(3) an agreement between a declarant or; an affiliate of a declarant, or a person having 
56.26 	authority pursuant to section 515B.2-121(c)(1) or pursuant to Minnesota Statutes 2008, 
56.27 	section 515B.2-121, subsection (c), paragraph (3) 515B.2-121(c)(3), to appoint the directors 
56.28 	of the master association, and any governmental entity, if such agreement is necessary to 
56.29 	obtain governmental approvals, provide financing under any type of government program, 
56.30 	or provide for governmentally required access, conservation, drainage, or utilities.
56.31 	(e) This section applies only to common interest communities created before August 1, 
56.32 	2010.

57.1 	Sec. 21. Minnesota Statutes 2024, section 515B.3-1051, is amended to read:
57.2 	515B.3-1051 TERMINATION OF CONTRACTS, LEASES, LICENSES; CIC 
57.3 	CREATED ON OR AFTER AUGUST 1, 2010.
57.4 	(a) If entered into prior to termination of the period of declarant control, (i) any 
57.5 	management, employment, maintenance, or operations contract or any lease or license of 
57.6 	recreational, parking, or storage facilities, that is binding on the association; (ii) any other 
57.7 	contract, lease, or license entered into by the association, a declarant or an affiliate of a 
57.8 	declarant that is binding on the association; or (iii) any contract, lease, or license that is 
57.9 	binding on the association or all unit owners other than a declarant or an affiliate of the 
57.10 	declarant which is not bona fide or which was unconscionable to the association or the unit 
57.11 	owners at the time entered into under the circumstances then prevailing, may be terminated 
57.12 	without penalty by the association under the procedures described in this section.
57.13 	(b) If entered into prior to the termination of the period of master developer control 
57.14 	described in section 515B.2-121, subsection (c), paragraph (1) 515B.2-121(c)(1), a contract, 
57.15 	lease, or license of a type described in subsection (a) is entered into by the master developer 
57.16 	and is binding upon the master association, then the master association may terminate the 
57.17 	contract, lease, or license under the procedures described in this section.
57.18 	(c) Termination shall be upon no less than 90 days' notice. Notice of termination shall 
57.19 	be given by the association or master association, as applicable, in accordance with section 
57.20 	515B.1-115; provided that notice shall be effective only if given within two years following 
57.21 	the termination of the period of declarant control or the period of master developer control, 
57.22 	as applicable.
57.23 	(d) This section does not apply to the following, provided that the rights and obligations 
57.24 	created by the referenced instruments are (i) bona fide and not unconscionable as 
57.25 	contemplated by subsection (a), item (iii); and (ii) disclosed to the purchaser of the unit in 
57.26 	the disclosure statement required by section 515B.4-102 515B.4-1021:
57.27 	(1) a lease the termination of which would terminate the common interest community;
57.28 	(2) in the case of a cooperative, a mortgage or contract for deed encumbering real estate 
57.29 	owned by the association, except that if the mortgage or contract for deed contains a 
57.30 	contractual obligation involving a type of contract, lease, or license which may be terminated 
57.31 	pursuant to subsection (a) or (b), then that contractual obligation may be terminated pursuant 
57.32 	to subsection (c);
58.1 	(3) an agreement between a declarant or an affiliate of a declarant, or a master developer, 
58.2 	and any governmental entity, if such agreement is necessary to obtain governmental 
58.3 	approvals, provide financing under any type of government program, or provide for 
58.4 	governmentally required access, conservation, drainage, utilities, or other public purpose;
58.5 	(4) subject to the requirements of section 515B.4-110(a), a lease, easement, covenant, 
58.6 	condition, or restriction that is recorded before the recording of the declaration, to the extent 
58.7 	that it benefits a person other than a declarant or an affiliate of a declarant; or
58.8 	(5) a license granted by a declarant pursuant to section 515B.2-109(e).
58.9 	(e) This section applies only to common interest communities created on or after August 
58.10 	1, 2010.

58.11 	Sec. 22. Minnesota Statutes 2024, section 515B.3-106, is amended to read:
58.12 	515B.3-106 BYLAWS; ANNUAL REPORT.
58.13 	(a) A common interest community shall have bylaws which comply with this chapter 
58.14 	and the statute under which the association is incorporated. The bylaws and any amendments 
58.15 	may be recorded, but need not be recorded to be effective unless so provided in the bylaws.
58.16 	To be eligible for recording on or after August 1, 2026, bylaws or bylaw amendments must 
58.17 	be executed by the association.
58.18 	(b) The bylaws shall provide that, in addition to any statutory requirements:
58.19 	(1) A meeting of the members shall be held at least once each year, and a specified 
58.20 	officer of the association shall give notice of the meeting as provided in section 515B.3-108.
58.21 	(2) An annual report shall be prepared by the association and a copy of the report shall 
58.22 	be provided to each unit owner at or prior to the annual meeting.
58.23 	(c) The annual report shall contain at a minimum:
58.24 	(1) a statement of any capital expenditures in excess of two percent of the current budget 
58.25 	or $5,000, whichever is greater, approved by the association for the current fiscal year or 
58.26 	succeeding two fiscal years;
58.27 	(2) a statement of the association's total replacement reserves, the components of the 
58.28 	common interest community for which the reserves are set aside, and the amounts of the 
58.29 	reserves, if any, that the board has allocated for the replacement of each of those components;
58.30 	(3) a copy of the statement of revenues and expenses for the association's last fiscal year, 
58.31 	and a balance sheet as of the end of said fiscal year;
59.1 	(4) a statement of the status of any pending litigation or judgments to which the 
59.2 	association is a party;
59.3 	(5) a detailed description of the insurance coverage provided by the association including 
59.4 	a statement as to which, if any, of the items referred to in section 515B.3-113, subsection 
59.5 	(b) 515B.3-113(b), are insured by the association; and
59.6 	(6) a statement of the total past due assessments on all units, current as of not more than 
59.7 	60 days prior to the date of the meeting.

59.8 	Sec. 23. Minnesota Statutes 2024, section 515B.3-107, is amended to read:
59.9 	515B.3-107 UPKEEP OF COMMON INTEREST COMMUNITY.
59.10 	(a) Except to the extent provided by the declaration, this subsection or section 
59.11 	515B.3-113, the association is responsible for the maintenance, repair and replacement of 
59.12 	the common elements, and each unit owner is responsible for the maintenance, repair and 
59.13 	replacement of the unit owner's unit. Damage to the common With respect to common 
59.14 	interest communities created before August 1, 2017, damage to the common elements or 
59.15 	any unit as a result of the acts or omissions of a unit owner or the association is the 
59.16 	responsibility of the person causing the damage, or whose agents or invitees caused the 
59.17 	damage. With respect to common interest communities created on or after August 1, 2017, 
59.18 	damage to the common elements or any unit as a result of the acts or omissions of a unit 
59.19 	owner or the association, including damage resulting from the unit owner's or association's 
59.20 	lack of maintenance or failure to perform necessary repairs or replacement, is the 
59.21 	responsibility of the unit owner or association responsible for causing the damage, or whose 
59.22 	agents or invitees caused the damage.
59.23 	(b) The association's board of directors shall prepare and approve a written preventative 
59.24 	maintenance plan, maintenance schedule, and maintenance budget for the common elements. 
59.25 	The association shall follow the approved preventative maintenance plan. The association's 
59.26 	board may amend, modify, or replace an approved preventative maintenance plan or an 
59.27 	approved maintenance schedule from time to time. The association must provide all unit 
59.28 	owners with a paper copy, electronic copy, or electronic access to the preventative 
59.29 	maintenance plan, the maintenance schedule, and any amendments or modifications to or 
59.30 	replacements of the preventative maintenance plan and the maintenance schedule. If a 
59.31 	common interest community was created on or before August 1, 2017, the association's 
59.32 	board of directors shall have until January 1, 2019, to comply with the requirements of this 
59.33 	subsection.
60.1 	(c) The association shall have access through and into each unit for purposes of 
60.2 	performing maintenance, repair or replacement for which the association may be responsible. 
60.3 	The association and any public safety personnel shall also have access for purposes of 
60.4 	abating or correcting any condition in the unit which violates any governmental law, 
60.5 	ordinance or regulation, which may cause material damage to or jeopardize the safety of 
60.6 	the common interest community, or which may constitute a health or safety hazard for 
60.7 	occupants of units.
60.8 	(d) Neither the association, nor any unit owner other than the declarant or its affiliates, 
60.9 	is subject to a claim for payment of expenses incurred in connection with any additional 
60.10 	real estate.

60.11 	Sec. 24. Minnesota Statutes 2024, section 515B.3-112, is amended to read:
60.12 	515B.3-112 CONVEYANCE OF, OR CREATION OF SECURITY INTERESTS 
60.13 	IN, COMMON ELEMENTS.
60.14 	(a) In a condominium or planned community, unless the declaration provides otherwise, 
60.15 	portions of the common elements may be conveyed or subjected to a security interest by 
60.16 	the association if persons entitled to cast at least 67 percent of the votes in the association, 
60.17 	including 67 percent of the votes allocated to units not owned by a declarant, or any larger 
60.18 	percentage the declaration specifies, approve that action in writing or at a meeting; but all 
60.19 	unit owners of units to which any limited common element is allocated must agree in order 
60.20 	to convey that limited common element or subject it to a security interest. The declaration 
60.21 	may specify a smaller percentage only if all of the units are restricted to nonresidential use.
60.22 	(b) In a cooperative, unless the declaration provides otherwise, part of a cooperative 
60.23 	may be conveyed, or all or a part subjected to a security interest, by the association if persons 
60.24 	entitled to cast at least 67 percent of the votes in the association, including 67 percent of 
60.25 	the votes allocated to units in which the declarant has no interest, or any larger percentage 
60.26 	the declaration specifies, approves that action in writing or at a meeting. If fewer than all 
60.27 	of the units or limited common elements are to be conveyed or subjected to a security 
60.28 	interest, then all unit owners of those units, or the units to which those limited common 
60.29 	elements are allocated, must agree in order to convey those units or limited common elements 
60.30 	or subject them to a security interest. The declaration may specify a smaller percentage only 
60.31 	if all of the units are restricted to nonresidential use. Any purported conveyance or other 
60.32 	voluntary transfer of an entire cooperative is void, unless made pursuant to section 
60.33 	515B.2-119.
61.1 	(c) The association, on behalf of the unit owners, may contract to convey or encumber 
61.2 	an interest in the common elements of a common interest community pursuant to this 
61.3 	subsection, subject to the required approval. After the approval has been obtained, the 
61.4 	association shall have a power of attorney coupled with an interest to effect the conveyance 
61.5 	or encumbrance on behalf of all unit owners in the common interest community, including 
61.6 	the power to execute deeds, mortgages, or other instruments of conveyance or security. The 
61.7 	instrument conveying or creating the interest in the common interest community shall be 
61.8 	recorded and shall include as exhibits (i) an affidavit of the president or secretary of the 
61.9 	association certifying that the approval required by this section has been obtained and (ii) 
61.10 	a schedule of the names of all unit owners and units in the common interest community as 
61.11 	of the date of the approval.
61.12 	(d) Unless made pursuant to this section, any purported conveyance, creation of a security 
61.13 	interest in or other voluntary transfer of any interest in the common elements, or of any part 
61.14 	of a cooperative, is void. The grant of an easement, lease, or license pursuant to section 
61.15 	515B.3-102(a)(9) is not subject to this section.
61.16 	(e) In the case of a conveyance involving a condominium, a planned community utilizing 
61.17 	a CIC plat complying with section 515B.2-110(c) or 515B.2-1101(c), or a cooperative in 
61.18 	which the unit owners' interests are characterized as real estate, the association shall record, 
61.19 	simultaneously with the recording of the instrument of conveyance, an amended CIC plat 
61.20 	showing the real estate constituting the common interest community exclusive of the real 
61.21 	estate conveyed.
61.22 	(f) A conveyance or encumbrance of common elements, or of a cooperative, pursuant 
61.23 	to this section shall not deprive any unit of its rights of support, reasonable access or utility 
61.24 	services.
61.25 	(g) In all common interest communities, upon recording of the instrument of conveyance, 
61.26 	the real estate conveyed shall be released from the declaration and all rights and obligations 
61.27 	arising therefrom. Except as provided in subsection (a), or unless the declaration otherwise 
61.28 	provides, a conveyance or encumbrance of common elements pursuant to this section does 
61.29 	not affect the priority or validity of preexisting encumbrances.
61.30 	(h) Any proceeds of the conveyance or creation of a security interest under this section 
61.31 	are an asset of the association.
61.32 	(i) This section shall not apply to any conveyance or encumbrance of any interest in a 
61.33 	proprietary lease.

62.1 	Sec. 25. Minnesota Statutes 2024, section 515B.3-113, is amended to read:
62.2 	515B.3-113 INSURANCE.
62.3 	(a) Commencing not later than the time of the first conveyance of a unit to a unit owner 
62.4 	other than a declarant, the association shall maintain, to the extent reasonably available:
62.5 	(1) subject to subsection (b), property insurance (i) on the common elements and, in a 
62.6 	planned community, also on property that must become common elements, (ii) for broad 
62.7 	form covered causes of loss, and (iii) in a total amount of not less than the full insurable 
62.8 	replacement cost of the insured property, less deductibles, at the time the insurance is 
62.9 	purchased and at each renewal date, exclusive of items normally excluded from property 
62.10 	policies; and
62.11 	(2) commercial general liability insurance against claims and liabilities arising in 
62.12 	connection with the ownership, existence, use or management of the property in an amount, 
62.13 	if any, specified by the common interest community instruments or otherwise deemed 
62.14 	sufficient in the judgment of the board, insuring the board, the association, the management 
62.15 	agent, and their respective employees, agents and all persons acting as agents. The declarant 
62.16 	shall be included as an additional insured in its capacity as a unit owner or board member. 
62.17 	The unit owners shall be included as additional insureds but only for claims and liabilities 
62.18 	arising in connection with the ownership, existence, use or management of the common 
62.19 	elements. The insurance shall cover claims of one or more insured parties against other 
62.20 	insured parties.
62.21 	(b) In the case of a common interest community that contains units, or structures within 
62.22 	units, sharing or having contiguous walls, siding or roofs, the insurance maintained under 
62.23 	subsection (a)(1) shall include those units, or structures within those units, and the common 
62.24 	elements. The insurance need not cover the following items within the units: (i) ceiling or 
62.25 	wall finishing materials, (ii) finished flooring, (iii) cabinetry, (iv) finished millwork, (v) 
62.26 	electrical, heating, ventilating, and air conditioning equipment, and plumbing fixtures serving 
62.27 	a single unit, (vi) built-in appliances, or (vii) other improvements and betterments, regardless 
62.28 	of when installed. If any improvements and betterments are covered, any increased cost 
62.29 	may be assessed by the association against the units affected. The association may, in the 
62.30 	case of a claim for damage to a unit or units, (i) pay the deductible amount as a common 
62.31 	expense, (ii) assess the deductible amount against one or more of the units affected in any 
62.32 	reasonable manner, or (iii) require the unit owners of one or more of the units affected to 
62.33 	pay the deductible amount directly.
63.1 	(c) If the insurance described in subsections (a) and (b) is not reasonably available, the 
63.2 	association shall promptly cause notice of that fact to be hand delivered or sent prepaid by 
63.3 	United States mail to all unit owners. The declaration may require the association to carry 
63.4 	any other insurance, and the association in any event may carry any other insurance it 
63.5 	considers appropriate to protect the association, the unit owners or officers, directors or 
63.6 	agents of the association.
63.7 	(d) Insurance policies carried pursuant to subsections (a) and (b) shall provide that:
63.8 	(1) each unit owner and secured party is an insured person under the policy with respect 
63.9 	to liability arising out of the unit owner's interest in the common elements or membership 
63.10 	in the association;
63.11 	(2) the insurer waives its right to subrogation under the policy against any unit owner 
63.12 	of the condominium a unit in the common interest community or members of the unit owner's 
63.13 	household and against the association and members of the board of directors;
63.14 	(3) no act or omission by any unit owner or secured party, unless acting within the scope 
63.15 	of authority on behalf of the association, shall void the policy or be a condition to recovery 
63.16 	under the policy; and
63.17 	(4) if at the time of a loss under the policy there is other insurance in the name of a unit 
63.18 	owner covering the same property covered by the policy, the association's policy is primary 
63.19 	insurance. A declaration may provide, however, that with respect to insurance policies 
63.20 	carried pursuant to subsection (a)(2), if, at the time of a claim under the policy that arises 
63.21 	out of or relates to the use of a limited common element assigned to a unit that is restricted 
63.22 	to nonresidential use, there is other insurance in the name of the unit owner of the unit to 
63.23 	which that limited common element is assigned, any insurance in the name of the unit owner 
63.24 	to which the limited common element is assigned is primary insurance.
63.25 	(e) Any loss covered by the property policy under subsection (a)(1) shall be adjusted by 
63.26 	and with the association. The insurance proceeds for that loss shall be payable to the 
63.27 	association, or to an insurance trustee designated by the association for that purpose. The 
63.28 	insurance trustee or the association shall hold any insurance proceeds in trust for unit owners 
63.29 	and secured parties as their interests may appear. The proceeds shall be disbursed first for 
63.30 	the repair or restoration of the damaged common elements and units. If there is a surplus 
63.31 	of proceeds after the common elements and units have been completely repaired or restored 
63.32 	or the common interest community is terminated, the board of directors may retain the 
63.33 	surplus for use by the association or distribute the surplus among the owners on an equitable 
63.34 	basis as determined by the board.
64.1 	(f) Unit owners may obtain insurance for personal benefit in addition to insurance carried 
64.2 	by the association.
64.3 	(g) An insurer that has issued an insurance policy under this section shall issue certificates 
64.4 	or memoranda of insurance, upon request, to any unit owner or secured party. The insurance 
64.5 	may not be canceled until 60 days after notice of the proposed cancellation has been mailed 
64.6 	to the association, each unit owner and each secured party for an obligation to whom 
64.7 	certificates of insurance have been issued.
64.8 	(h) Any portion of the common interest community which is damaged or destroyed as 
64.9 	the result of a loss covered by the association's insurance shall be promptly repaired or 
64.10 	replaced by the association unless (i) the common interest community is terminated and the 
64.11 	association votes not to repair or replace all or part thereof, (ii) repair or replacement would 
64.12 	be illegal under any state or local health or safety statute or ordinance, or (iii) 80 percent of 
64.13 	the unit owners, including every unit owner and holder of a first mortgage on a unit or 
64.14 	assigned limited common element which will not be rebuilt, vote not to rebuild. Subject to 
64.15 	subsection (b), the cost of repair or replacement of the common elements in excess of 
64.16 	insurance proceeds and reserves shall be paid as a common expense, and the cost of repair 
64.17 	of a unit in excess of insurance proceeds shall be paid by the respective unit owner.
64.18 	(i) If less than the entire common interest community is repaired or replaced, (i) the 
64.19 	insurance proceeds attributable to the damaged common elements shall be used to restore 
64.20 	the damaged area to a condition compatible with the remainder of the common interest 
64.21 	community, (ii) the insurance proceeds attributable to units and limited common elements 
64.22 	which are not rebuilt shall be distributed to the owners of those units, including units to 
64.23 	which the limited common elements were assigned, and the secured parties of those units, 
64.24 	as their interests may appear, and (iii) the remainder of the proceeds shall be distributed to 
64.25 	all the unit owners and secured parties as their interests may appear in proportion to their 
64.26 	common element interest in the case of a condominium or in proportion to their common 
64.27 	expense liability in the case of a planned community or cooperative.
64.28 	(j) If the unit owners and holders of first mortgages vote not to rebuild a unit, that unit's 
64.29 	entire common element interest, votes in the association, and common expense liability are 
64.30 	automatically reallocated upon the vote as if the unit had been condemned under section 
64.31 	515B.1-107. The association shall have the power to, and shall, promptly prepare, execute 
64.32 	and record an amendment to the declaration reflecting the reallocations. Notwithstanding 
64.33 	the provisions of this subsection, if the common interest community is terminated, insurance 
64.34 	proceeds not used for repair or replacement shall be distributed in the same manner as sales 
64.35 	proceeds pursuant to section 515B.2-119(e).
65.1 	(k) The provisions of this section may be varied or waived in the case of a common 
65.2 	interest community in which all units are restricted to nonresidential use.

65.3 	Sec. 26. Minnesota Statutes 2024, section 515B.3-1141, is amended to read:
65.4 	515B.3-1141 REPLACEMENT RESERVES.
65.5 	(a) The association shall include in its annual budgets replacement reserves projected 
65.6 	by the board to be adequate, together with past and future contributions to replacement 
65.7 	reserves, to fund the replacement of those components of the common interest community 
65.8 	which the association is obligated to replace by reason of ordinary wear and tear or 
65.9 	obsolescence, subject to the following:
65.10 	(1) The amount annually budgeted for replacement reserves shall be adequate, together 
65.11 	with past and future contributions to replacement reserves, to replace the components as 
65.12 	determined based upon the estimated remaining useful life of each component; provided 
65.13 	that portions of replacement reserves need not be segregated for the replacement of specific 
65.14 	components.
65.15 	(2) Unless otherwise required by the declaration, annual budgets need not include reserves 
65.16 	for the replacement of (i) components that a remaining useful life of more than 30 years, 
65.17 	or (ii) components whose replacement will be funded by assessments authorized under 
65.18 	section 515B.3-115(e)(1) or 515B.3-1151(e)(1), or approved in compliance with clause (5).
65.19 	(3) The association shall keep the replacement reserves in an account or accounts separate 
65.20 	from the association's operating funds, and shall not use or borrow from the replacement 
65.21 	reserves to fund the association's operating expenses, provided that this restriction shall not 
65.22 	affect the association's authority to pledge the replacement reserves as security for a loan 
65.23 	to the association.
65.24 	(4) The association shall reevaluate the adequacy of its budgeted replacement reserves 
65.25 	at least every third year after the recording of the declaration creating the common interest 
65.26 	community.
65.27 	(5) Unless otherwise required by the declaration, after the termination of the period of 
65.28 	declarant control, and subject to approval by (i) the board, and (ii) unit owners, other than 
65.29 	the declarant or its affiliates, of units to which 51 percent of the votes in the association are 
65.30 	allocated, the association need not annually assess for replacement reserves to replace those 
65.31 	components whose replacement is planned to be paid for by special assessments, if the 
65.32 	declaration authorizes special assessments, or by assessments levied under section 
65.33 	515B.3-115(e)(2) or 515B.3-1151(e)(2). The approval provided for in the preceding sentence 
66.1 	shall be effective for no more than the association's current and three following fiscal years, 
66.2 	subject to modification or renewal by the same approval standards.
66.3 	(6) Unless otherwise required by the declaration, subsection (a) shall not apply to a 
66.4 	common interest community which is restricted to nonresidential use.
66.5 	(b) Unless the declaration provides otherwise, any surplus funds that the association has 
66.6 	remaining after payment of or provision for common expenses and reserves shall be (i) 
66.7 	credited to the unit owners to reduce their future common expense assessments or (ii) 
66.8 	credited to reserves, or any combination thereof, as determined by the board of directors.
66.9 	(c) This section applies to common interest communities only for their fiscal years 
66.10 	commencing on or after January 1, 2012.

66.11 	Sec. 27. Minnesota Statutes 2024, section 515B.3-1151, is amended to read:
66.12 	515B.3-1151 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED ON 
66.13 	OR AFTER AUGUST 1, 2010.
66.14 	(a) The association shall approve an annual budget of common expenses at or prior to 
66.15 	the conveyance of the first unit in the common interest community to a purchaser and 
66.16 	annually thereafter. The annual budget shall include all customary and necessary operating 
66.17 	expenses and replacement reserves for the common interest community, consistent with 
66.18 	this section and section 515B.3-114 or 515B.3-1141, as applicable. For purposes of 
66.19 	replacement reserves under subsection (b), until an annual budget has been approved, the 
66.20 	reserves shall be paid based upon the budget contained in the disclosure statement required 
66.21 	by section 515B.4-102 515B.4-1021(a)(23). The obligation of a unit owner to pay common 
66.22 	expenses shall be as follows:
66.23 	(1) If a common expense assessment has not been levied by the association, the declarant 
66.24 	shall pay all common expenses of the common interest community, including the payment 
66.25 	of the replacement reserve component of the common expenses for all units in compliance 
66.26 	with subsection (b).
66.27 	(2) If a common expense assessment has been levied by the association, all unit owners, 
66.28 	including the declarant, shall pay the assessments levied against their units, except as follows:
66.29 	(i) The declaration may provide for an alternate common expense plan whereby the 
66.30 	declarant's common expense liability, and the corresponding assessment lien against the 
66.31 	units owned by the declarant, is limited to: (A) paying when due, in compliance with 
66.32 	subsection (b), an amount equal to the full share of the replacement reserves allocated to 
66.33 	units owned by the declarant, as set forth in the association's annual budget approved as 
67.1 	provided in this subsection; and (B) paying when due all accrued expenses of the common 
67.2 	interest community in excess of the aggregate assessments payable with respect to units 
67.3 	owned by persons other than a declarant; provided, that the alternate common expense plan 
67.4 	shall not affect a declarant's obligation to make up any operating deficit pursuant to item 
67.5 	(iv), and shall terminate upon the termination of any period of declarant control unless 
67.6 	terminated earlier pursuant to item (iii).
67.7 	(ii) The alternate common expense plan may be authorized only by including in the 
67.8 	declaration and the disclosure statement required by section 515B.4-102 515B.4-1021
67.9 	provisions authorizing and disclosing the alternate common expense plan as described in 
67.10 	item (i), and including in the disclosure statement either (A) a statement that the alternate 
67.11 	common expense plan will have no effect on the level of services or amenities anticipated 
67.12 	by the association's budget contained in the disclosure statement, or (B) a statement 
67.13 	describing how the services or amenities may be affected.
67.14 	(iii) A declarant shall give notice to the association of its intent to utilize the alternate 
67.15 	common expense plan and a commencement date after the date the notice is given. The 
67.16 	alternate common expense plan shall be valid only for periods after the notice is given. A 
67.17 	declarant may terminate its right to utilize the alternate common expense plan prior to the 
67.18 	termination of the period of declarant control only by giving notice to the association and 
67.19 	the unit owners at least 30 days prior to a selected termination date set forth in the notice.
67.20 	(iv) If a declarant utilizes an alternate common expense plan, that declarant shall cause 
67.21 	to be prepared and delivered to the association, at the declarant's expense, within 90 days 
67.22 	after the termination of the period of declarant control, an audited balance sheet and profit 
67.23 	and loss statement certified to the association and prepared by an accountant having the 
67.24 	qualifications set forth in section 515B.3-121(b). The audit shall be binding on the declarant 
67.25 	and the association.
67.26 	(v) If the audited profit and loss statement shows an accumulated operating deficit, the 
67.27 	declarant shall be obligated to make up the deficit within 15 days after delivery of the audit 
67.28 	to the association, and the association shall have a claim against the declarant for an amount 
67.29 	equal to the deficit until paid. A declarant who does not utilize an alternate common expense 
67.30 	plan is not liable to make up any operating deficit. If more than one declarant utilizes an 
67.31 	alternate common expense plan, all declarants who utilize the plan are jointly and severally 
67.32 	liable to the association for any operating deficit.
67.33 	(vi) The existence and amount, if any, of the operating deficit shall be determined using 
67.34 	the accrual method of accounting applied as of the date of termination of the period of 
68.1 	declarant control, regardless of the accounting methodology previously used by the 
68.2 	association to maintain its accounts.
68.3 	(vii) Unless approved by a vote of the unit owners other than the declarant and its 
68.4 	affiliates, the operating deficit shall not be made up, prior to the election by the unit owners 
68.5 	of a board of directors pursuant to section 515B.3-103(d), through the use of a special 
68.6 	assessment described in subsection (c) or by assessments described in subsections (e), (f), 
68.7 	and (g).
68.8 	(viii) The use by a declarant of an alternate common expense plan shall not affect the 
68.9 	obligations of the declarant or the association as provided in the declaration, the bylaws, or 
68.10 	this chapter, or as represented in the disclosure statement required by section 515B.4-102
68.11 	515B.4-1021, except as to matters authorized by this chapter.
68.12 	(b) The replacement reserves required by section 515B.3-114 or 515B.3-1141, as 
68.13 	applicable, shall be paid to the association by each unit owner for each unit owned by that 
68.14 	unit owner in accordance with the association's annual budget approved pursuant to 
68.15 	subsection (a), regardless of whether an annual assessment has been levied or whether the 
68.16 	declarant has utilized an alternate common expense plan under subsection (a)(2). Replacement 
68.17 	reserves shall be paid with respect to a unit commencing as of the later of (1) the date of 
68.18 	creation of the common interest community or (2) the date that the structure and exterior 
68.19 	of the building containing the unit, or the structure and exterior of any building located 
68.20 	within the unit boundaries, but excluding the interior finishing of the structure itself, are 
68.21 	substantially completed. If the association has not approved an annual budget as of the 
68.22 	commencement date for the payment of replacement reserves, then the reserves shall be 
68.23 	paid based upon the budget contained in the disclosure statement required by section 
68.24 	515B.4-102 515B.4-1021.
68.25 	(c) After an assessment has been levied by the association, assessments shall be levied 
68.26 	at least annually, based upon an annual budget approved by the association. In addition to 
68.27 	and not in lieu of annual assessments, an association may, if so provided in the declaration, 
68.28 	levy special assessments against all units in the common interest community based upon 
68.29 	the same formula required by the declaration for levying annual assessments. Special 
68.30 	assessments may be levied only (1) to cover expenditures of an emergency nature, (2) to 
68.31 	replenish underfunded replacement reserves, (3) to cover unbudgeted capital expenditures 
68.32 	or operating expenses, or (4) to replace certain components of the common interest 
68.33 	community described in section 515B.3-114(a) 515B.3-1141(a), if such alternative method 
68.34 	of funding is approved under section 515B.3-114(a)(5) 515B.3-1141(a)(5). The association 
68.35 	may also levy assessments against fewer than all units as provided in subsections (e), (f), 
69.1 	and (g). An assessment under subsection (e)(2) for replacement reserves is subject to the 
69.2 	requirements of section 515B.3-1141(a)(5).
69.3 	(d) Except as modified by subsections (a), clauses (1) and (2), (e), (f), and (g), all common 
69.4 	expenses shall be assessed against all the units in accordance with the allocations established 
69.5 	by the declaration pursuant to section 515B.2-108.
69.6 	(e) Unless otherwise required by the declaration:
69.7 	(1) any common expense associated with the maintenance, repair, or replacement of a 
69.8 	limited common element shall be assessed against the units to which that limited common 
69.9 	element is assigned, equally, or in any other proportion the declaration provides;
69.10 	(2) any common expense or portion thereof benefiting fewer than all of the units may 
69.11 	be assessed exclusively against the units benefited, equally, or in any other proportion the 
69.12 	declaration provides;
69.13 	(3) the costs of insurance may be assessed in proportion to risk or coverage, and the 
69.14 	costs of utilities may be assessed in proportion to usage;
69.15 	(4) subject to section 515B.3-102(a)(11), reasonable attorney fees and costs incurred by 
69.16 	the association in connection with (i) the collection of assessments, and (ii) the enforcement 
69.17 	of this chapter, the articles, bylaws, declaration, or rules and regulations, against a unit 
69.18 	owner, may be assessed against the unit owner's unit, subject to section 515B.3-116(h); and
69.19 	(5) fees, charges, late charges, fines, and interest may be assessed as provided in section 
69.20 	515B.3-116(a).
69.21 	(f) Assessments levied under section 515B.3-116 to pay a judgment against the association 
69.22 	may be levied only against the units in the common interest community at the time the 
69.23 	judgment was entered, in proportion to their common expense liabilities.
69.24 	(g) If any damage to the common elements or another unit is caused by the act or omission 
69.25 	of any unit owner, or occupant of a unit, or their invitees, the association may assess the 
69.26 	costs of repairing the damage exclusively against the unit owner's unit to the extent not 
69.27 	covered by insurance.
69.28 	(h) Subject to any shorter period specified by the declaration or bylaws, if any installment 
69.29 	of an assessment becomes more than 60 days past due, then the association may, upon ten 
69.30 	days' written notice to the unit owner, declare the entire amount of the assessment 
69.31 	immediately due and payable in full, except that any portion of the assessment that represents 
69.32 	installments that are not due and payable without acceleration as of the date of reinstatement 
70.1 	must not be included in the amount that a unit owner must pay to reinstate under section 
70.2 	580.30 or chapter 581.
70.3 	(i) If common expense liabilities are reallocated for any purpose authorized by this 
70.4 	chapter, common expense assessments and any installment thereof not yet due shall be 
70.5 	recalculated in accordance with the reallocated common expense liabilities.
70.6 	(j) An assessment against fewer than all of the units must be levied within three years 
70.7 	after the event or circumstances forming the basis for the assessment, or shall be barred.
70.8 	(k) This section applies only to common interest communities created on or after August 
70.9 	1, 2010.

70.10 	Sec. 28. Minnesota Statutes 2024, section 515B.3-116, is amended to read:
70.11 	515B.3-116 LIEN FOR ASSESSMENTS.
70.12 	(a) The association has a lien on a unit for any assessment levied against that unit from 
70.13 	the time the assessment becomes due. If an assessment is payable in installments, the full 
70.14 	amount of the assessment is a lien from the time the first installment thereof becomes due. 
70.15 	Unless the declaration otherwise provides, fees, charges, late charges, fines and interest 
70.16 	charges pursuant to section 515B.3-102(a)(10), (11) and (12) are liens, and are enforceable 
70.17 	as assessments, under this section. Recording of the declaration constitutes record notice 
70.18 	and perfection of any assessment lien under this section, and no further recording of any 
70.19 	notice of or claim for the lien is required.
70.20 	(b) Subject to subsection (c), a lien under this section is prior to all other liens and 
70.21 	encumbrances on a unit except (i) liens and encumbrances recorded before the declaration 
70.22 	and, in a cooperative, liens and encumbrances which the association creates, assumes, or 
70.23 	takes subject to, (ii) any first mortgage encumbering the fee simple interest in the unit, or, 
70.24 	in a cooperative, any first security interest encumbering only the unit owner's interest in the 
70.25 	unit, (iii) liens for real estate taxes and other governmental assessments or charges against 
70.26 	the unit, and (iv) a master association lien under section 515B.2-121(h). This subsection 
70.27 	shall not affect the priority of mechanic's liens.
70.28 	(c) If a first mortgage on a unit is foreclosed, the first mortgage was recorded after June 
70.29 	1, 1994, and no owner or person who acquires the owner's interest in the unit redeems 
70.30 	pursuant to chapter 580, 581, or 582, the holder of the sheriff's certificate of sale from the 
70.31 	foreclosure of the first mortgage or any person who acquires title to the unit by redemption 
70.32 	as a junior creditor shall take title to the unit subject to a lien in favor of the association for 
70.33 	unpaid assessments for common expenses levied pursuant to section 515B.3-115(a), (e)(1) 
71.1 	to (3), (f), and (i) and 515B.3-1151(a), (e)(1) to (3), (f), and (i) which became due, without 
71.2 	acceleration, during the six months immediately preceding the end of the owner's period of 
71.3 	redemption. The common expenses shall be based upon the association's then current annual 
71.4 	budget, notwithstanding the use of an alternate common expense plan under section 
71.5 	515B.3-115(a)(2) or 515B.3-1151(a)(2). If a first security interest encumbering a unit owner's 
71.6 	interest in a cooperative unit which is personal property is foreclosed, the secured party or 
71.7 	the purchaser at the sale shall take title to the unit subject to unpaid assessments for common 
71.8 	expenses levied pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and (i) and 
71.9 	515B.3-1151(a), (e)(1) to (3), (f), and (i) which became due, without acceleration, during 
71.10 	the six months immediately preceding the first day following either the disposition date 
71.11 	pursuant to section 336.9-610 or the date on which the obligation of the unit owner is 
71.12 	discharged pursuant to section 336.9-622.
71.13 	(d) Proceedings to enforce an assessment lien shall be instituted within three years after 
71.14 	the last installment of the assessment becomes payable, or shall be barred.
71.15 	(e) The unit owner of a unit at the time an assessment is due shall be personally liable 
71.16 	to the association for payment of the assessment levied against the unit. If there are multiple 
71.17 	owners of the unit, they shall be jointly and severally liable.
71.18 	(f) This section does not prohibit actions to recover sums for which subsection (a) creates 
71.19 	a lien nor prohibit an association from taking a deed in lieu of foreclosure.
71.20 	(g) The association shall furnish to a unit owner or the owner's authorized agent upon 
71.21 	written request of the unit owner or the authorized agent a statement setting forth the amount 
71.22 	of unpaid assessments currently levied against the owner's unit. If the unit owner's interest 
71.23 	is real estate, the statement shall be in recordable form. The statement shall be furnished 
71.24 	within ten business days after receipt of the request and is binding on the association and 
71.25 	every unit owner.
71.26 	(h) The association's lien may be foreclosed as provided in this subsection.
71.27 	(1) In a condominium or planned community, the association's lien may be foreclosed 
71.28 	in a like manner as a mortgage containing a power of sale pursuant to chapter 580, or by 
71.29 	action pursuant to chapter 581. The association shall have a power of sale to foreclose the 
71.30 	lien pursuant to chapter 580, except that any portion of the assessment that represents 
71.31 	attorney fees or costs shall not be included in the amount a unit owner must pay to reinstate 
71.32 	under section 580.30 or chapter 581.
72.1 	(2) In a cooperative whose unit owners' interests are real estate, the association's lien 
72.2 	shall be foreclosed in a like manner as a mortgage on real estate as provided in paragraph 
72.3 	(1).
72.4 	(3) In a cooperative whose unit owners' interests in the units are personal property, the 
72.5 	association's lien shall be foreclosed in a like manner as a security interest under article 9 
72.6 	of chapter 336. In any disposition pursuant to section 336.9-610 or retention pursuant to 
72.7 	sections 336.9-620 to 336.9-622, the rights of the parties shall be the same as those provided 
72.8 	by law, except (i) notice of sale, disposition, or retention shall be served on the unit owner 
72.9 	90 days prior to sale, disposition, or retention, (ii) the association shall be entitled to its 
72.10 	reasonable costs and attorney fees not exceeding the amount provided by section 582.01, 
72.11 	subdivision 1a, (iii) the amount of the association's lien shall be deemed to be adequate 
72.12 	consideration for the unit subject to disposition or retention, notwithstanding the value of 
72.13 	the unit, and (iv) the notice of sale, disposition, or retention shall contain the following 
72.14 	statement in capital letters with the name of the association or secured party filled in:
72.15 	"THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of association or 
72.16 	secured party) HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES, 
72.17 	CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST IN YOUR UNIT FOR THE 
72.18 	REASON SPECIFIED IN THIS NOTICE. YOUR INTEREST IN YOUR UNIT WILL 
72.19 	TERMINATE 90 DAYS AFTER SERVICE OF THIS NOTICE ON YOU UNLESS 
72.20 	BEFORE THEN:
72.21 	(a) THE PERSON AUTHORIZED BY (fill in the name of association or secured party) 
72.22 	AND DESCRIBED IN THIS NOTICE TO RECEIVE PAYMENTS RECEIVES FROM 
72.23 	YOU:
72.24 	(1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS
72.25 	(2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS
72.26 	(3) $500 TO APPLY TO ATTORNEY FEES ACTUALLY EXPENDED OR 
72.27 	INCURRED; PLUS
72.28 	(4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO (fill 
72.29 	in name of association or secured party) AFTER THE DATE OF THIS NOTICE; OR
72.30 	(b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 
72.31 	FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR 
72.32 	CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 
73.1 	SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 
73.2 	GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.
73.3 	IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN 
73.4 	THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP RIGHTS IN 
73.5 	YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU WILL LOSE 
73.6 	ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL LOSE YOUR 
73.7 	RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR RIGHT TO 
73.8 	ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND YOU WILL 
73.9 	BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT 
73.10 	AN ATTORNEY IMMEDIATELY."
73.11 	(4) In any foreclosure pursuant to chapter 580, 581, or 582, the rights of the parties shall 
73.12 	be the same as those provided by law, except (i) the period of redemption for unit owners 
73.13 	shall be six months from the date of sale or a lesser period authorized by law, (ii) in a 
73.14 	foreclosure by advertisement under chapter 580, the foreclosing party shall be entitled to 
73.15 	costs and disbursements of foreclosure and attorney fees authorized by the declaration or 
73.16 	bylaws, notwithstanding the provisions of section 582.01, subdivisions 1 and 1a, (iii) in a 
73.17 	foreclosure by action under chapter 581, the foreclosing party shall be entitled to costs and 
73.18 	disbursements of foreclosure and attorney fees as the court shall determine, and (iv) the 
73.19 	amount of the association's lien shall be deemed to be adequate consideration for the unit 
73.20 	subject to foreclosure, notwithstanding the value of the unit.
73.21 	(i) If a holder of a sheriff's certificate of sale, prior to the expiration of the period of 
73.22 	redemption, pays any past due or current assessments, or any other charges lienable as 
73.23 	assessments, with respect to the unit described in the sheriff's certificate, then the amount 
73.24 	paid shall be a part of the sum required to be paid to redeem under section 582.03.
73.25 	(j) In a cooperative, if the unit owner fails to redeem before the expiration of the 
73.26 	redemption period in a foreclosure of the association's assessment lien, the association may 
73.27 	bring an action for eviction against the unit owner and any persons in possession of the unit, 
73.28 	and in that case section 504B.291 shall not apply.
73.29 	(k) An association may assign its lien rights in the same manner as any other secured 
73.30 	party.

74.1 	Sec. 29. Minnesota Statutes 2024, section 515B.4-101, is amended to read:
74.2 	515B.4-101 APPLICABILITY; DELIVERY OF DISCLOSURE STATEMENT.
74.3 	(a) Sections 515B.4-101 through 515B.4-118 apply to all units subject to this chapter, 
74.4 	except as provided in subsection (c) or as modified or waived by written agreement of 
74.5 	purchasers of a unit which is restricted to nonresidential use.
74.6 	(b) Subject to subsections (a) and (c), a declarant who offers a unit to a purchaser shall 
74.7 	deliver to the purchaser a current disclosure statement which complies with the requirements 
74.8 	of section 515B.4-102 or 515B.4-1021, as applicable. The disclosure statement shall include 
74.9 	any material amendments to the disclosure statement made prior to the conveyance of the 
74.10 	unit to the purchaser. The declarant shall be liable to the purchaser to whom it delivered the 
74.11 	disclosure statement for any false or misleading statement set forth therein or for any omission 
74.12 	of a material fact therefrom.
74.13 	(c) Neither a disclosure statement nor a resale disclosure certificate need be prepared or 
74.14 	delivered in the case of:
74.15 	(1) a gratuitous transfer;
74.16 	(2) a transfer pursuant to a court order;
74.17 	(3) a transfer to a government or governmental agency;
74.18 	(4) a transfer to a secured party by foreclosure or deed in lieu of foreclosure;
74.19 	(5) an option to purchase a unit, until exercised;
74.20 	(6) a transfer to a person who "controls" or is "controlled by," the grantor as those terms 
74.21 	are defined with respect to a declarant under section 515B.1-103(2);
74.22 	(7) a transfer by inheritance;
74.23 	(8) a transfer of special declarant rights under section 515B.3-104 or 515B.3-1041; or
74.24 	(9) a transfer in connection with a change of form of common interest community under 
74.25 	section 515B.2-123.
74.26 	(d) A purchase agreement for a unit shall contain the following notice: "The following 
74.27 	notice is required by Minnesota Statutes. The purchaser is entitled to receive a disclosure 
74.28 	statement or resale disclosure certificate, as applicable. The disclosure statement or resale 
74.29 	disclosure certificate contains important information regarding the common interest 
74.30 	community and the purchaser's cancellation rights."
75.1 	(e) The sale, to the initial occupant, of a platted lot or other parcel of real estate (i) which 
75.2 	is or may be subject to a master declaration, (ii) which is intended for residential occupancy, 
75.3 	and (iii) which does not and is not intended to constitute a unit, shall be subject to the 
75.4 	following requirements:
75.5 	(1) The purchase agreement for the lot or other parcel shall contain the following notice: 
75.6 	"The following notice is required by Minnesota Statutes: The real estate to be conveyed 
75.7 	under this agreement is or may be subject to a master association as defined in Minnesota 
75.8 	Statutes, chapter 515B. The master developer is required to provide to the buyer, within ten 
75.9 	days after receipt of a request from the buyer or the buyer's authorized representative, a 
75.10 	statement containing the information required by Minnesota Statutes, section 
75.11 	515B.4-102(a)(20) or 515B.4-1021(a)(20), as applicable, with respect to the master 
75.12 	association. The statement contains important information regarding the master association. 
75.13 	The name, address, and telephone number of the master developer are [insert information]."
75.14 	(2) A master developer shall, within ten days after receipt of a request described in clause 
75.15 	(1), furnish to the requesting person the information required to be provided by section 
75.16 	515B.4-102(a)(20) or 515B.4-1021(a)(20), as applicable.
75.17 	(f) A claim by a buyer based upon a failure to comply with subsection (e):
75.18 	(1) shall be limited to legal, and not equitable, remedies; or
75.19 	(2) shall be barred unless it is commenced within the time period specified in section 
75.20 	515B.4-115(a) or 515B.4-1152(a), as applicable.

75.21 	Sec. 30. Minnesota Statutes 2024, section 515B.4-102, is amended to read:
75.22 	515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC 
75.23 	CREATED BEFORE AUGUST 1, 2010.
75.24 	(a) A disclosure statement shall fully and accurately disclose:
75.25 	(1) the name and, if available, the number of the common interest community;
75.26 	(2) the name and principal address of the declarant;
75.27 	(3) the number of units which the declarant has the right to include in the common 
75.28 	interest community and a statement that the common interest community is either a 
75.29 	condominium, cooperative, or planned community;
75.30 	(4) a general description of the common interest community, including, at a minimum, 
75.31 	(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of 
75.32 	construction, (iv) whether the common interest community involves new construction or 
76.1 	rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose, 
76.2 	before it was added to the common interest community and the nature of the occupancy, 
76.3 	and (vi) a general description of any roads, trails, or utilities that are located on the common 
76.4 	elements and that the association or a master association will be required to maintain;
76.5 	(4a) copies of the initial maintenance plan, initial maintenance schedule, and initial 
76.6 	maintenance budget described in section 515B.3-107(b);
76.7 	(5) declarant's schedule of commencement and completion of construction of any 
76.8 	buildings and other improvements that the declarant is obligated to build pursuant to section 
76.9 	515B.4-117;
76.10 	(6) any expenses or services, not reflected in the budget, that a declarant pays or provides, 
76.11 	which may become a common expense; the projected common expense attributable to each 
76.12 	of those expenses or services; and an explanation of declarant's limited assessment liability 
76.13 	under section 515B.3-115(b);
76.14 	(7) any initial or special fee due from the purchaser to the declarant or the association 
76.15 	at closing, together with a description of the purpose and method of calculating the fee;
76.16 	(8) identification of any liens, defects, or encumbrances which will continue to affect 
76.17 	the title to a unit or to any real property owned by the association after the contemplated 
76.18 	conveyance;
76.19 	(9) a description of any financing offered or arranged by the declarant;
76.20 	(10) a statement as to whether application has been made for any project approvals for 
76.21 	the common interest community from the Federal National Mortgage Association (FNMA), 
76.22 	Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban 
76.23 	Development (HUD) or Department of Veterans Affairs (VA), and which, if any, such final 
76.24 	approvals have been received;
76.25 	(11) the terms of any warranties provided by the declarant, including copies of sections 
76.26 	515B.4-112 through 515B.4-115, and any other applicable statutory warranties, and a 
76.27 	statement of any limitations on the enforcement of the applicable warranties or on damages;
76.28 	(12) a statement that: (i) within ten days after the receipt of a disclosure statement, a 
76.29 	purchaser may cancel any contract for the purchase of a unit from a declarant; provided, 
76.30 	that the right to cancel terminates upon the purchaser's voluntary acceptance of a conveyance 
76.31 	of the unit from the declarant or by the purchaser agreeing to modify or waive the right to 
76.32 	cancel in the manner provided by section 515B.4-106(a); (ii) if a purchaser receives a 
76.33 	disclosure statement more than ten days before signing a purchase agreement, the purchaser 
77.1 	cannot cancel the purchase agreement; and (iii) if a declarant obligated to deliver a disclosure 
77.2 	statement fails to deliver a disclosure statement which substantially complies with this 
77.3 	chapter to a purchaser to whom a unit is conveyed, the declarant shall be liable to the 
77.4 	purchaser as provided in section 515B.4-106(d);
77.5 	(13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's 
77.6 	actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which 
77.7 	the association is a party, and the status of those lawsuits which are material to the common 
77.8 	interest community or the unit being purchased;
77.9 	(14) a statement (i) describing the conditions under which earnest money will be held 
77.10 	in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the 
77.11 	earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant 
77.12 	to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
77.13 	(15) a detailed description of the insurance coverage provided by the association for the 
77.14 	benefit of unit owners, including a statement as to which, if any, of the items referred to in 
77.15 	section 515B.3-113, subsection (b) 515B.3-113(b), are insured by the association;
77.16 	(16) any current or expected fees or charges, other than assessments for common 
77.17 	expenses, to be paid by unit owners for the use of the common elements or any other 
77.18 	improvements or facilities;
77.19 	(17) the financial arrangements, including any contingencies, which have been made to 
77.20 	provide for completion of all improvements that the declarant is obligated to build pursuant 
77.21 	to section 515B.4-118, or a statement that no such arrangements have been made;
77.22 	(18) in a cooperative: (i) whether the unit owners will be entitled for federal and state 
77.23 	tax purposes, to deduct payments made by the association for real estate taxes and interest 
77.24 	paid to the holder of a security interest encumbering the cooperative; (ii) a statement as to 
77.25 	the effect on the unit owners if the association fails to pay real estate taxes or payments due 
77.26 	the holder of a security interest encumbering the cooperative; and (iii) the principal amount 
77.27 	and a general description of the terms of any blanket mortgage, contract for deed, or other 
77.28 	blanket security instrument encumbering the cooperative property;
77.29 	(19) a statement: (i) that real estate taxes for the unit or any real property owned by the 
77.30 	association are not delinquent or, if there are delinquent real estate taxes, describing the 
77.31 	property for which the taxes are delinquent, stating the amount of the delinquent taxes, 
77.32 	interest and penalties, and stating the years for which taxes are delinquent, and (ii) setting 
77.33 	forth the amount of real estate taxes, including the amount of any special assessment certified 
77.34 	for payment with the real estate taxes, due and payable with respect to the unit in the year 
78.1 	in which the disclosure statement is given, if real estate taxes have been separately assessed 
78.2 	against the unit;
78.3 	(20) if the association or the purchaser of the unit will be a member of a master 
78.4 	association, a statement to that effect, and all of the following information with respect to 
78.5 	the master association: (i) a copy of the master declaration, the articles of incorporation, 
78.6 	bylaws, and rules and regulations for the master association, together with any amendments 
78.7 	thereto; (ii) the name, address and general description of the master association, including 
78.8 	a general description of any other association, unit owners, or other persons which are or 
78.9 	may become members; (iii) a description of any nonresidential use permitted on any property 
78.10 	subject to the master association; (iv) a statement as to the estimated maximum number of 
78.11 	associations, unit owners or other persons which may become members of the master 
78.12 	association, and the degree and period of control of the master association by a declarant 
78.13 	or other person; (v) a description of any facilities intended for the benefit of the members 
78.14 	of the master association and not located on property owned or controlled by a member or 
78.15 	the master association; (vi) the financial arrangements, including any contingencies, which 
78.16 	have been made to provide for completion of the facilities referred to in subsection (v), or 
78.17 	a statement that no arrangements have been made; (vii) any current balance sheet of the 
78.18 	master association and a projected or current annual budget, as applicable, which budget 
78.19 	shall include with respect to the master association those items in paragraph (23), clauses 
78.20 	(i) through (iii), and the projected monthly common expense assessment for each type of 
78.21 	unit, lot, or other parcel of real estate which is or is planned to be subject to assessment; 
78.22 	(viii) a description of any expenses or services not reflected in the budget, paid for or 
78.23 	provided by a declarant or a person executing the master declaration, which may become 
78.24 	an expense of the master association in the future; (ix) a description of any powers delegated 
78.25 	to and accepted by the master association pursuant to section 515B.2-121(f)(2)
78.26 	515B.2-121(e)(2); (x) identification of any liens, defects or encumbrances that will continue 
78.27 	to affect title to property owned or operated by the master association for the benefit of its 
78.28 	members; (xi) the terms of any warranties provided by any person for construction of 
78.29 	facilities in which the members of the master association have or may have an interest, and 
78.30 	any known defects in the facilities which would violate the standards described in section 
78.31 	515B.4-112(b); (xii) a statement disclosing, after inquiry of the master association, any 
78.32 	unsatisfied judgments or lawsuits to which the master association is a party, and the status 
78.33 	of those lawsuits which are material to the master association; (xiii) a description of any 
78.34 	insurance coverage provided for the benefit of its members by the master association; and 
78.35 	(xiv) any current or expected fees or charges, other than assessments by the master 
79.1 	association, to be paid by members of the master association for the use of any facilities 
79.2 	intended for the benefit of the members;
79.3 	(21) a statement as to whether the unit will be substantially completed at the time of 
79.4 	conveyance to a purchaser, and if not substantially completed, who is responsible to complete 
79.5 	and pay for the construction of the unit;
79.6 	(22) a copy of the declaration and any amendments thereto (exclusive of the CIC plat); 
79.7 	any other recorded covenants, conditions, restrictions, or reservations affecting the common 
79.8 	interest community; the articles of incorporation, bylaws and any rules or regulations of the 
79.9 	association; any agreement excluding or modifying any implied warranties; any agreement 
79.10 	reducing the statute of limitations for the enforcement of warranties; any contracts or leases 
79.11 	to be signed by purchaser at closing; and a brief narrative description of any (i) contracts 
79.12 	or leases that are or may be subject to cancellation by the association under section 
79.13 	515B.3-105 and (ii) any material agreements entered into between the declarant and a 
79.14 	governmental entity that affect the common interest community; and
79.15 	(23) a balance sheet for the association, current within 90 days; a projected annual budget 
79.16 	for the association; and a statement identifying the party responsible for the preparation of 
79.17 	the budget. The budget shall assume that all units intended to be included in the common 
79.18 	interest community, based upon the declarant's good faith estimate, have been subjected to 
79.19 	the declaration; provided, that additional budget portrayals based upon a lesser number of 
79.20 	units are permitted. The budget shall include, without limitation: (i) a statement of the 
79.21 	amount included in the budget as a reserve for replacement; (ii) a statement of any other 
79.22 	reserves; (iii) the projected common expense for each category of expenditures for the 
79.23 	association; (iv) the projected monthly common expense assessment for each type of unit; 
79.24 	and (v) a footnote or other reference to those components of the common interest community 
79.25 	the maintenance, repair, or replacement of which the budget assumes will be funded by 
79.26 	assessments under section 515B.3-115(e), rather than by assessments included in the 
79.27 	association's annual budget, and a statement referencing section 515B.3-115(e)(1) or (2), 
79.28 	as the source of funding. If, based upon the association's then current budget, the monthly 
79.29 	common expense assessment for the unit at the time of conveyance to the purchaser is 
79.30 	anticipated to exceed the monthly assessment stated in the budget, a statement to such effect 
79.31 	shall be included.
79.32 	(b) A declarant shall promptly amend the disclosure statement to reflect any material 
79.33 	change in the information required by this chapter.
80.1 	(c) The master association, within ten days after a request by a declarant, a holder of 
80.2 	declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized 
80.3 	representative of any of them, shall furnish the information required to be provided by 
80.4 	subsection (a)(20). A declarant or other person who provides information pursuant to 
80.5 	subsection (a)(20) is not liable to the buyer for any erroneous information if the declarant 
80.6 	or other person: (i) is not an affiliate of or related in any way to a person authorized to 
80.7 	appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no 
80.8 	actual knowledge that the information is incorrect.
80.9 	(d) This section applies only to common interest communities created before August 1, 
80.10 	2010.

80.11 	Sec. 31. Minnesota Statutes 2024, section 515B.4-1021, is amended to read:
80.12 	515B.4-1021 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC 
80.13 	CREATED ON OR AFTER AUGUST 1, 2010.
80.14 	(a) A disclosure statement shall fully and accurately disclose:
80.15 	(1) the name and, if available, the number of the common interest community;
80.16 	(2) the name and principal address of each declarant holding any special declarant rights; 
80.17 	a description of the special declarant rights held by each declarant; a description of the units 
80.18 	or additional real estate to which the respective special declarant rights apply; and a copy 
80.19 	of any recorded transfer of special declarant rights pursuant to section 515B.3-104(a)
80.20 	515B.3-1041(a), or any instrument recorded pursuant to section 515B.3-104(b)
80.21 	515B.3-1041(b), (g), or (h);
80.22 	(3) the total number of units which all declarants have the right to include in the common 
80.23 	interest community and a statement that the common interest community is either a 
80.24 	condominium, cooperative, or planned community;
80.25 	(4) a general description of the common interest community, including, at a minimum,
80.26 	(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of 
80.27 	construction, (iv) whether the common interest community involves new construction or 
80.28 	rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose, 
80.29 	before it was added to the common interest community, and the nature of the occupancy, 
80.30 	(vi) a general description of any roads, trails, or utilities that are located on the common 
80.31 	elements and that the association or master association will be required to maintain, and 
80.32 	(vii) a description of any declarant licensing rights under section 515B.2-109(e), and (viii);
81.1 	(4a) copies of the initial maintenance plan, initial maintenance schedule, and initial 
81.2 	maintenance budget under described in section 515B.3-107(b). For common interest 
81.3 	communities created on or after August 1, 2017, the initial maintenance plan prepared by 
81.4 	the declarant must be based on the best available information listing all building elements 
81.5 	to which the plan will apply and the generally accepted standards of maintenance on which 
81.6 	the plan is based. The initial plan must be dated and signed by the declarant and be fully 
81.7 	funded by the initial budget provided by the declarant;
81.8 	(5) declarant's schedule of commencement and completion of construction of any 
81.9 	buildings and other improvements that the declarant is obligated to build pursuant to section 
81.10 	515B.4-117;
81.11 	(6) any expenses or services, not reflected in the budget, that the declarant pays or 
81.12 	provides, which may become a common expense; the projected common expense attributable 
81.13 	to each of those expenses or services; a description of any alternate common expense plan 
81.14 	under section 515B.3-115(a)(2)(i) 515B.3-1151(a)(2)(i); and, if the declaration provides 
81.15 	for an alternate common expense plan, either (i) a statement that the alternate common 
81.16 	expense plan will have no effect on the level of services or amenities anticipated by the 
81.17 	association's budget or disclosed in the disclosure statement, or (ii) a statement describing 
81.18 	how the services or amenities may be affected;
81.19 	(7) any initial or special fee due from the purchaser to the declarant or the association 
81.20 	at closing, together with a description of the purpose and method of calculating the fee;
81.21 	(8) identification of any liens, defects, or encumbrances which will continue to affect 
81.22 	the title to a unit or to any real property owned by the association after the contemplated 
81.23 	conveyance;
81.24 	(9) a description of any financing offered or arranged by the declarant;
81.25 	(10) a statement as to whether application has been made for any project approvals for 
81.26 	the common interest community from the Federal National Mortgage Association (FNMA), 
81.27 	Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban 
81.28 	Development (HUD), or Department of Veterans Affairs (VA), and which, if any, such 
81.29 	final approvals have been received;
81.30 	(11) the terms of any warranties provided by the declarant, including copies of sections 
81.31 	515B.4-112 to 515B.4-115 515B.4-114 and either 515B.4-1151 or 515B.4-1152, as 
81.32 	applicable, and any other applicable statutory warranties, and a statement of any limitations 
81.33 	on the enforcement of the applicable warranties or on damages;
82.1 	(12) a statement that:
82.2 	(i) within ten days after the receipt of a disclosure statement, a purchaser may cancel 
82.3 	any contract for the purchase of a unit from a declarant; provided, that the right to cancel 
82.4 	terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the 
82.5 	declarant or by the purchaser agreeing to modify or waive the right to cancel in the manner 
82.6 	provided by section 515B.4-106(a);
82.7 	(ii) if a purchaser receives a disclosure statement more than ten days before signing a 
82.8 	purchase agreement, the purchaser cannot cancel the purchase agreement; and
82.9 	(iii) if a declarant obligated to deliver a disclosure statement fails to deliver a disclosure 
82.10 	statement which substantially complies with this chapter to a purchaser to whom a unit is 
82.11 	conveyed, the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);
82.12 	(13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's 
82.13 	actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which 
82.14 	the association is a party, and the status of those lawsuits which are material to the common 
82.15 	interest community or the unit being purchased;
82.16 	(14) a statement (i) describing the conditions under which earnest money will be held 
82.17 	in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the 
82.18 	earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant 
82.19 	to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
82.20 	(15) a detailed description of the insurance coverage provided by the association for the 
82.21 	benefit of unit owners, including a statement as to which, if any, of the items referred to in 
82.22 	section 515B.3-113(b), are insured by the association;
82.23 	(16) any current or expected fees or charges, other than assessments for common 
82.24 	expenses, to be paid by unit owners for the use of the common elements or any other 
82.25 	improvements or facilities;
82.26 	(17) the financial arrangements, including any contingencies, which have been made to 
82.27 	provide for completion of all improvements that the declarant is obligated to build pursuant 
82.28 	to section 515B.4-118, or a statement that no such arrangements have been made;
82.29 	(18) in a cooperative:
82.30 	(i) whether the unit owners will be entitled, for federal and state tax purposes, to deduct 
82.31 	payments made by the association for real estate taxes and interest paid to the holder of a 
82.32 	security interest encumbering the cooperative;
83.1 	(ii) a statement as to the effect on the unit owners if the association fails to pay real estate 
83.2 	taxes or payments due the holder of a security interest encumbering the cooperative; and
83.3 	(iii) the principal amount and a general description of the terms of any blanket mortgage, 
83.4 	contract for deed, or other blanket security instrument encumbering the cooperative property;
83.5 	(19) a statement:
83.6 	(i) that real estate taxes for the unit or any real property owned by the association are 
83.7 	not delinquent or, if there are delinquent real estate taxes, describing the property for which 
83.8 	the taxes are delinquent, stating the amount of the delinquent taxes, interest, and penalties, 
83.9 	and stating the years for which taxes are delinquent; and
83.10 	(ii) setting forth the amount of real estate taxes, including the amount of any special 
83.11 	assessment certified for payment with the real estate taxes, due and payable with respect to 
83.12 	the unit in the year in which the disclosure statement is given, if real estate taxes have been 
83.13 	separately assessed against the unit;
83.14 	(20) if the unit or other parcel of real estate being purchased is or may be subject to a 
83.15 	master declaration at the time of the conveyance from the declarant to the purchaser, a 
83.16 	statement to that effect, and all of the following information with respect to the master 
83.17 	association:
83.18 	(i) copies of the following documents (which may be in proposed form if the master 
83.19 	declaration has not been recorded): the master declaration, the articles of incorporation, 
83.20 	bylaws, and rules and regulations for the master association, together with any amendments 
83.21 	thereto;
83.22 	(ii) the name and address of the master developer, and the name, address, and general 
83.23 	description of the master association, including a general description of any other association, 
83.24 	unit owners, or other persons which are or may become members;
83.25 	(iii) a description of any nonresidential use permitted on any property subject to the 
83.26 	master declaration;
83.27 	(iv) a statement as to the estimated maximum number of associations, unit owners, or 
83.28 	other persons which may become members of the master association, and a description of 
83.29 	any period of control of the master association and rights to appoint master association 
83.30 	directors by a master developer or other person pursuant to section 515B.2-121(c);
83.31 	(v) a description of any facilities intended for the benefit of the members of the master 
83.32 	association and not located on property owned or controlled by a member of the master 
83.33 	association;
84.1 	(vi) the financial arrangements, including any contingencies, which have been made to 
84.2 	provide for completion of the facilities referred to in subsection (v), or a statement that no 
84.3 	arrangements have been made;
84.4 	(vii) any current balance sheet of the master association and a projected or current annual 
84.5 	budget, as applicable, which budget shall include with respect to the master association 
84.6 	those items in paragraph (23), clauses (i) through (iii), and the projected monthly or other 
84.7 	periodic common expense assessment payment for each type of unit, lot, or other parcel of 
84.8 	real estate which is or is planned to be subject to assessment;
84.9 	(viii) a description of any expenses or services not reflected in the budget, paid for or 
84.10 	provided by a master developer or another person executing the master declaration, which 
84.11 	may become an expense of the master association in the future;
84.12 	(ix) a description of any powers delegated to and accepted by the master association 
84.13 	pursuant to section 515B.2-121(e)(2);
84.14 	(x) identification of any liens, defects, or encumbrances that will continue to affect title 
84.15 	to property owned or operated by the master association for the benefit of its members;
84.16 	(xi) the terms of any warranties provided by any person for construction of facilities in 
84.17 	which the members of the master association have or may have an interest, and any known 
84.18 	defects in the facilities which would violate the standards described in section 
84.19 	515B.4-113(b)(2);
84.20 	(xii) a statement disclosing, after inquiry of the master association, any unsatisfied 
84.21 	judgments or lawsuits to which the master association is a party, and the status of those 
84.22 	lawsuits which are material to the master association;
84.23 	(xiii) a description of any insurance coverage provided for the benefit of its members 
84.24 	by the master association; and
84.25 	(xiv) any current or expected fees or charges, other than assessments by the master 
84.26 	association, to be paid by members of the master association for the use of any facilities 
84.27 	intended for the benefit of the members;
84.28 	(21) a statement as to whether the unit will be substantially completed at the time of 
84.29 	conveyance to a purchaser, and, if not substantially completed, who is responsible to complete 
84.30 	and pay for the construction of the unit;
84.31 	(22) copies of the following documents (which may be in proposed form if the declaration 
84.32 	has not been recorded): the declaration and any supplemental declaration, and any 
84.33 	amendments thereto (exclusive of the CIC plat); any other recorded covenants, conditions, 
85.1 	restrictions, and reservations affecting the common interest community; the articles of 
85.2 	incorporation, bylaws, and any rules or regulations of the association; the names of the 
85.3 	current members of the association's board of directors; any agreement excluding or 
85.4 	modifying any implied warranties; any agreement reducing the statute of limitations for the 
85.5 	enforcement of warranties; any contracts or leases to be signed by the purchaser at closing; 
85.6 	and a description of any material contracts, leases, or other agreements affecting the common 
85.7 	interest community; and
85.8 	(23) a balance sheet for the association, following the creation of the association, current 
85.9 	within 90 days; a projected annual budget for the association; and a statement identifying 
85.10 	the party responsible for the preparation of the budget. The budget shall assume that all 
85.11 	units intended to be included in the common interest community, based upon the declarant's 
85.12 	good faith estimate, have been subjected to the declaration; provided, that additional budget 
85.13 	portrayals based upon a lesser number of units are permitted. The budget shall include, 
85.14 	without limitation:
85.15 	(i) a statement of the amount included in the budget as a reserve for replacement, the 
85.16 	components of the common interest community for which the reserves are budgeted, and 
85.17 	the amounts of the reserves, if any, that are allocated for the replacement of each of those 
85.18 	components;
85.19 	(ii) a statement of any other reserves;
85.20 	(iii) the projected common expense for each category of expenditures for the association;
85.21 	(iv) the projected monthly common expense assessment for each type of unit; and
85.22 	(v) a statement as to the components of the common interest community whose 
85.23 	replacement will be funded by assessments under section 515B.3-115(c) 515B.3-1151(c)
85.24 	or (e), rather than by replacement reserves as approved pursuant to section 515B.3-114(a)
85.25 	515B.3-1141(a). If, based upon the association's then-current budget, the monthly common 
85.26 	expense assessment for the unit at the time of conveyance to the purchaser is anticipated to 
85.27 	exceed the monthly assessment stated in the budget, a statement to such effect shall be 
85.28 	included.
85.29 	(b) A declarant shall promptly amend the disclosure statement to reflect any material 
85.30 	change in the information required by this chapter.
85.31 	(c) The master association, within ten days after a request by a declarant, a holder of 
85.32 	declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized 
85.33 	representative of any of them, shall furnish the information required to be provided by 
86.1 	subsection (a)(20). A declarant or other person who provides information pursuant to 
86.2 	subsection (a)(20), is not liable to the buyer for any erroneous information if the declarant 
86.3 	or other person: (i) is not an affiliate of or related in any way to a person authorized to 
86.4 	appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no 
86.5 	actual knowledge that the information is incorrect.
86.6 	(d) This section applies only to common interest communities created on or after August 
86.7 	1, 2010.

86.8 	Sec. 32. Minnesota Statutes 2024, section 515B.4-103, is amended to read:
86.9 	515B.4-103 COMMON INTEREST COMMUNITIES SUBJECT TO RIGHTS TO 
86.10 	ADD ADDITIONAL REAL ESTATE.
86.11 	If the declaration provides that a common interest community is subject to any rights to 
86.12 	add additional real estate:
86.13 	(1) the disclosure statement shall include the following notice:
86.14 	"The following notice is required by Minnesota Statutes. The declarant has reserved in 
86.15 	the declaration certain rights to add additional real estate. These rights allow a declarant to 
86.16 	add units or common elements to a common interest community, and to make other changes 
86.17 	to the community over a specified period of time. These changes may have a substantial 
86.18 	effect upon the units or rights of unit owners, by changing relative voting power and share 
86.19 	of common expenses, by increasing the number of persons using the common elements, by 
86.20 	altering the size and appearance of the common interest community and by making other 
86.21 	changes which may affect the value or utility of the units. A purchaser of units in this 
86.22 	common interest community should consider the possible effects of the declarant's rights 
86.23 	reserved for this project"; and
86.24 	(2) the disclosure statement shall include, in addition to the information required by 
86.25 	section 515B.4-102 or 515B.4-1021, as applicable, a statement referencing the provisions 
86.26 	of the declaration where rights to add additional real estate are reserved.

86.27 	Sec. 33. Minnesota Statutes 2024, section 515B.4-104, is amended to read:
86.28 	515B.4-104 TIME SHARES.
86.29 	If the declaration permits time shares, the disclosure statement shall contain or disclose, 
86.30 	in addition to the information required by sections 515B.4-102 or 515B.4-1021, as applicable, 
86.31 	and 515B.4-103:
86.32 	(1) the unit identifiers of the units in which time shares may be created;
87.1 	(2) the total number of time shares that may be created;
87.2 	(3) the minimum duration of any time shares that may be created;
87.3 	(4) the extent to which the creation of time shares will or may affect the enforceability 
87.4 	of the association's lien for assessments provided in section 515B.3-116;
87.5 	(5) a statement as to whether the time share interest is a fixed time period in a designated 
87.6 	unit or if either the time period or unit may vary;
87.7 	(6) copies of all organizational documents, contracts, leases and other documents affecting 
87.8 	the time share association or the time shares, or the purchaser's rights therein;
87.9 	(7) any state or federal ruling or nonaction letter regarding the classification of the time 
87.10 	shares as a security or a statement that there is no ruling or nonaction letter;
87.11 	(8) a statement as to whether the time share is registered with the state under the 
87.12 	Subdivided Land Sales Act or with the federal government under the Interstate Land Sales 
87.13 	Act and, if the time share is so registered, a copy of the public offering statement or other 
87.14 	disclosure document required by those acts; and
87.15 	(9) if the time share owners are to be permitted or required to become members of or to 
87.16 	participate in a program for the exchange of occupancy rights among themselves or with 
87.17 	the owners of time shares in other projects or both, a general description of the program.

87.18 	Sec. 34. Minnesota Statutes 2024, section 515B.4-105, is amended to read:
87.19 	515B.4-105 COMMON INTEREST COMMUNITY WITH BUILDING ONCE 
87.20 	OCCUPIED.
87.21 	The disclosure statement for a common interest community containing any building that 
87.22 	was at any time before the creation of the common interest community wholly or partially 
87.23 	occupied, for any purpose, by persons other than purchasers or persons who occupied with 
87.24 	the consent of purchasers, shall contain, in addition to the information required by sections 
87.25 	515B.4-102 or 515B.4-1021, as applicable, 515B.4-103, and 515B.4-104:
87.26 	(1) a professional opinion prepared by a registered professional architect or engineer, 
87.27 	licensed in this state, describing the current condition of all structural components and 
87.28 	mechanical, electrical, and plumbing installations material to the use and enjoyment of the 
87.29 	building, to the extent reasonably ascertainable without disturbing the improvements or 
87.30 	dismantling the equipment, which will be in place or be operational at the time of conveyance 
87.31 	of the first unit to a person other than a declarant. Subject to such reasonable accessibility, 
87.32 	the opinion shall include, at a minimum, the following information concerning the following 
88.1 	components and installations: (i) the composition and condition of all roofs, (ii) the type of 
88.2 	building frame and its condition, (iii) the composition and condition of exterior walls, (iv) 
88.3 	whether any building foundation, or any exterior walls or exposed load-bearing components, 
88.4 	show significant spalling, buckling, shearing, or other obvious settling, damage, or load 
88.5 	distress, (v) the type, composition, and condition of predominant window and door systems, 
88.6 	(vi) the condition of any furnaces or boilers, (vii) the stated capacity of common electrical 
88.7 	service, (viii) the type and condition of any common elevator system serving any building, 
88.8 	and (ix) evidence of water damage within any building and any apparent source of the 
88.9 	damage;
88.10 	(2) a statement of the remaining useful life of each item reported on in paragraph (1) or 
88.11 	a statement that no representations are made in that regard as to some or all of the items;
88.12 	(3) a list of any outstanding notices of uncured violations of building code or other 
88.13 	municipal regulations, together with the estimated cost of curing those violations;
88.14 	(4) the approximate age of each building and the approximate date of any major alterations 
88.15 	or additions thereto; and
88.16 	(5) a statement as to which, if any, of the components or installations reported on in 
88.17 	clause (1) has been replaced or will be replaced prior to the recording of the declaration and 
88.18 	the approximate date when the replacement occurred or will occur.

88.19 	Sec. 35. Minnesota Statutes 2024, section 515B.4-106, is amended to read:
88.20 	515B.4-106 PURCHASER'S RIGHT TO CANCEL.
88.21 	(a) A person required to deliver a disclosure statement pursuant to section 515B.4-101 
88.22 	(b) shall provide at least one of the purchasers of the unit with a copy of the disclosure 
88.23 	statement and all amendments thereto before conveyance of the unit. If a purchaser is not 
88.24 	given a disclosure statement more than ten days before execution of the purchase agreement, 
88.25 	the purchaser may, before conveyance, cancel the purchase agreement within ten days after 
88.26 	first receiving the disclosure statement. If a purchaser is given the disclosure statement more 
88.27 	than ten days before execution of the purchase agreement, the purchaser may not cancel the 
88.28 	purchase agreement pursuant to this section. The ten-day rescission period may be modified 
88.29 	or waived, in writing, by agreement of the purchaser of a unit only after the purchaser has 
88.30 	received and had an opportunity to review the disclosure statement. The person required to 
88.31 	deliver a disclosure statement may not condition the sale of the unit on the purchaser agreeing 
88.32 	to modify or waive the purchaser's ten-day right of rescission, may not contractually obligate 
88.33 	the purchaser to modify or waive the purchaser's ten-day right of rescission, and may not 
89.1 	include a modification or waiver of the ten-day right of rescission in any purchase agreement 
89.2 	for the unit. To be effective, a modification or waiver of a purchaser's ten-day right of 
89.3 	rescission must be evidenced by an instrument separate from the purchase agreement signed 
89.4 	by the purchaser more than three days after the purchaser receives the disclosure statement.
89.5 	(b) If an amendment to the disclosure statement materially and adversely affects a 
89.6 	purchaser, then the purchaser shall have ten days after delivery of the amendment to cancel 
89.7 	the purchase agreement in accordance with this section. The ten-day rescission period may 
89.8 	be modified or waived, in writing, by agreement of the purchaser of a unit only after the 
89.9 	purchaser has received and had an opportunity to review the amendment. To be effective, 
89.10 	a modification or waiver of a purchaser's ten-day right of rescission under this section must 
89.11 	be evidenced by a written instrument separate from the purchase agreement signed by the 
89.12 	purchaser more than three days after the purchaser receives the amendment.
89.13 	(c) If a purchaser elects to cancel a purchase agreement pursuant to this section, the 
89.14 	purchaser may do so by giving the seller or the seller's agent notice thereof pursuant to 
89.15 	section 515B.1-115 or, if the seller or seller's agent has provided an electronic address at 
89.16 	which the seller or seller's agent agrees to receive electronic communication, as defined in 
89.17 	section 317A.011, subdivision 7a, by electronic communication sent to that address. 
89.18 	Cancellation is without penalty, and all payments made by the purchaser before cancellation 
89.19 	shall be refunded promptly. Notwithstanding anything in this section to the contrary, the 
89.20 	purchaser's cancellation rights under this section terminate upon the purchaser's acceptance 
89.21 	of a conveyance of the unit.
89.22 	(d) If a declarant obligated to deliver a disclosure statement fails to deliver to the 
89.23 	purchaser a disclosure statement which substantially complies with this chapter, the declarant 
89.24 	shall be liable to the purchaser in the amount of $5,000, in addition to any damages or other 
89.25 	amounts recoverable under this chapter or otherwise. Any action brought under this 
89.26 	subsection shall be commenced within the time period specified in section 515B.4-115, 
89.27 	subsection (a) 515B.4-115(a), 515B.4-1151(a), or 515B.4-1152(a), as applicable.

89.28 	Sec. 36. Minnesota Statutes 2024, section 515B.4-107, is amended to read:
89.29 	515B.4-107 RESALE OF UNITS.
89.30 	(a) In the event of a resale of a unit by a unit owner other than a declarant, unless exempt 
89.31 	under section 515B.4-101(c), the unit owner shall furnish to a purchaser, before execution 
89.32 	of any purchase agreement for a unit or otherwise before conveyance, the following 
89.33 	documents relating to the association or to the master association, if applicable:
90.1 	(1) copies of the declaration (other than any CIC plat), the articles of incorporation and 
90.2 	bylaws, any rules and regulations, and any amendments or supplemental declarations;
90.3 	(2) copies of the master declaration, articles of incorporation, bylaws, and rules and 
90.4 	regulations, if the common interest community is subject to a master declaration; and
90.5 	(3) a resale disclosure certificate from the association dated not more than 90 days prior 
90.6 	to the date of the purchase agreement or the date of conveyance, whichever is earlier, 
90.7 	containing the information set forth in subsection (b).
90.8 	(b) The resale disclosure certificate must be in substantially the following form:
90.9 	COMMON INTEREST COMMUNITY
90.10 	RESALE DISCLOSURE CERTIFICATE
90.11 	Name of Common Interest Community:........
90.12 	Name of Association:........
90.13 	Address of Association:........
90.14 	Unit Number(s) (include principal unit and any garage, storage, or other auxiliary units):
90.15 	Common elements licensed under Minnesota Statutes, section 515B.2-109(e):
90.16 	........
90.17 	........
90.18 	The following information is furnished by the association named above according to 
90.19 	Minnesota Statutes, section 515B.4-107.
90.20 	1. There is no right of first refusal or other restraint on the free alienability of the above 
90.21 	unit(s) contained in the declaration, bylaws, rules and regulations, or any amendment to 
90.22 	them, except as follows:........
90.23 	........
90.24 	........
90.25 	........
90.26 	2. The following periodic installments of common expense assessments and special 
90.27 	assessments are payable with respect to the above unit(s):

90.28		a.
	Annual assessment installments:
	$........
	Due:........
	
90.29		b.
	Special assessment installments:
	$........
	Due:........
	
90.30		c.
	Unpaid assessments, fines, or other charges:
	
91.1				(1)
	Annual
	$........
			
91.2				(2)
	Special
	$........
			
91.3				(3)
	Fines
	$........
			
91.4				(4)
	Other Charges
	$........
			
91.591.6
91.7
91.8
91.9		d.
	The association has/has not (strike one) approved a plan for levying certain 
common expense assessments against fewer than all the units according to 
Minnesota Statutes, section 515B.3-115, subsection (e) 515B.3-115(e) or 
515B.3-1151(e), as applicable. If a plan is approved, a description of the plan is 
attached to this certificate.
	
91.10 	3. In addition to the amounts due under paragraph 2, the following additional fees or 
91.11 	charges other than assessments are payable by unit owners (include late payment charges, 
91.12 	user fees, etc.):
91.13 	........
91.14 	........
91.15 	........
91.16 	4. There are no extraordinary expenditures approved by the association, and not yet 
91.17 	assessed, for the current and two succeeding fiscal years, except as follows:........
91.18 	........
91.19 	........
91.20 	5. The association is obligated to replace the following components of the common 
91.21 	interest community:........
91.22 	........
91.23 	........
91.24 	The association has the following amounts in its reserves for replacement of those 
91.25 	components:
91.26 	........
91.27 	........
91.28 	The replacement of the following components is funded by assessments levied only against 
91.29 	the unit or units served by the component, pursuant to Minnesota Statutes, section 
91.30 	515B.3-115(e)(1) or (2) or 515B.3-1151(e)(1) or (2), as applicable.........
91.31 	........
91.32 	........
92.1 	6. The following documents are furnished with this certificate according to statute:

92.292.3		a.
	The most recent regularly prepared balance sheet and income and expense 
statement of the association.
	
92.4		b.
	The current budget of the association.
	
92.592.6
92.7
92.8		c.
	Copies of the association's written preventative maintenance plan, maintenance 
schedule, and maintenance budget for the common elements of the common 
interest community are either furnished with this certificate or are available 
electronically from the association as follows:........
	
92.9 	7. There are no unsatisfied judgments against the association, except as follows (identify 
92.10 	creditor and amount):........
92.11 	........
92.12 	........
92.13 	8. There are no pending lawsuits to which the association is a party, except as follows 
92.14 	(identify and summarize status):........
92.15 	........
92.16 	........
92.17 	9. Description of insurance coverages:
92.18 	a. The association provides the following insurance coverage for the benefit of unit 
92.19 	owners: (Reference may be made to applicable sections of the declaration or bylaws; 
92.20 	however, any additional coverages should be described in this space)........
92.21 	........
92.22 	........
92.23 	........
92.24 	b. The following described fixtures, decorating items, or construction items within the 
92.25 	unit referred to in Minnesota Statutes, section 515B.3-113, subsection (b) 515B.3-113(b), 
92.26 	are insured by the association (check as applicable):
92.27 	..... Ceiling or wall finishing materials
92.28 	..... Finished flooring
92.29 	..... Cabinetry
92.30 	..... Finished millwork
92.31 	..... Electrical, heating, ventilating, and air conditioning equipment, or plumbing fixtures 
92.32 	serving a single unit
93.1 	..... Built-in appliances
93.2 	..... Improvements and betterments as originally constructed
93.3 	..... Additional improvements and betterments installed by unit owners
93.4 	10. The board of directors of the association has not notified the unit owner (i) that any 
93.5 	alterations or improvements to the unit or to the limited common elements assigned to it 
93.6 	violate any provision of the declaration; or (ii) that the unit is in violation of any governmental 
93.7 	statute, ordinance, code, or regulation, except as follows:........
93.8 	........
93.9 	11. The remaining term of any leasehold estate affecting the common interest community 
93.10 	and the premises governing any extension or renewal of it are as follows:........
93.11 	........
93.12 	........
93.13 	12. This Resale Disclosure Certificate is given in connection with the resale of a unit 
93.14 	by a unit owner who is not a declarant and who, therefore, is not liable for express warranties 
93.15 	under Minnesota Statutes, section 515B.4-112, or implied warranties under Minnesota 
93.16 	Statutes, section 515B.4-113. The conveyance of this unit may, however, result in a transfer 
93.17 	of preexisting warranties made by a declarant under the referenced statutes, subject to the 
93.18 	terms of Minnesota Statutes, sections 515B.4-114and, 515B.4-1141,515B.4-115, and 
93.19 	515B.4-1151, as applicable.
93.20 	13. In addition to the above, the following matters affecting the occupancy or use of the 
93.21 	unit, or the unit owner's obligations with respect to the unit, are deemed material:........
93.22 	........
93.23 	I hereby certify that the foregoing information and statements are true and correct as 
93.24 	of........

93.25	........
			
93.26	(Date)
			
93.27			By: ........
	
93.28			Title: ........
	
93.29			(Association representative)
	
93.30			Address: ........
	
93.31			Phone Number: ........
	
93.32 	RECEIPT
94.1 	In addition to the foregoing information furnished by the association, the unit owner is 
94.2 	obligated to furnish to the purchaser before execution of any purchase agreement for a unit 
94.3 	or otherwise before conveyance, copies of the following documents relating to the association 
94.4 	or to the master association (as applicable): the declaration (other than any common interest 
94.5 	community plat), articles of incorporation, bylaws, rules and regulations (if any), and any 
94.6 	amendments to these documents. Receipt of the foregoing documents, and the resale 
94.7 	disclosure certificate, is acknowledged by the undersigned buyer(s).

94.8		Dated: ........
		........
	
94.9				(Buyer)
	
94.10				........
	
94.11				(Buyer)
	
94.12 	(c) If the common interest community is subject to a master declaration and governed 
94.13 	by a master association to which has been delegated any of the association's powers under 
94.14 	section 515B.3-102(a)(2), then the financial information required to be disclosed under 
94.15 	subsection (b) may be disclosed on a consolidated basis.
94.16 	(d) The association, within ten days after a request by a unit owner, or the unit owner's 
94.17 	authorized representative, shall furnish the certificate required in subsection (a). The 
94.18 	association may charge a reasonable fee for furnishing the certificate and any association 
94.19 	documents related thereto. A unit owner providing a certificate pursuant to subsection (a) 
94.20 	is not liable to the purchaser for any erroneous information provided by the association and 
94.21 	included in the certificate. A unit owner who has acquired title to a unit pursuant to section 
94.22 	515B.3-104 or 515B.3-1041, including, but not limited to, a unit owner who has acquired 
94.23 	title through foreclosure or a deed in lieu of foreclosure, must indicate to the association in 
94.24 	connection with a request for a resale disclosure certificate whether the requesting unit 
94.25 	owner is or is not a declarant. The unit owner, not the association, is liable for any damage, 
94.26 	loss, or other consequence arising out of the incorrect representation of its declarant status.
94.27 	(e) A purchaser is not liable for any unpaid common expense assessments, including 
94.28 	special assessments, if any, not set forth in the certificate required in subsection (a). A 
94.29 	purchaser is not liable for the amount by which the annual or special assessments exceed 
94.30 	the amount of annual or special assessments stated in the certificate for assessments payable 
94.31 	in the year in which the certificate was given, except to the extent of any increases 
94.32 	subsequently approved in accordance with the declaration or bylaws. A unit owner is not 
94.33 	liable to a purchaser for the failure of the association to provide the certificate, or a delay 
94.34 	by the association in providing the certificate in a timely manner.

95.1 	Sec. 37. Minnesota Statutes 2024, section 515B.4-113, is amended to read:
95.2 	515B.4-113 IMPLIED WARRANTIES.
95.3 	(a) A declarant warrants to a purchaser that a unit will be in at least as good condition 
95.4 	at the earlier of the time of the conveyance or delivery of possession as it was at the time 
95.5 	of contracting, reasonable wear and tear excepted.
95.6 	(b) A declarant warrants to a purchaser that:
95.7 	(1) a unit and the common elements in the common interest community are suitable for 
95.8 	the ordinary uses of real estate of its type; and
95.9 	(2) any improvements subject to use rights by the purchaser, made or contracted for by 
95.10 	the declarant, or made by any person in contemplation of the creation of the common interest 
95.11 	community, will be (i) free from defective materials and (ii) constructed in accordance with 
95.12 	applicable law, according to sound engineering and construction standards, and in a 
95.13 	workmanlike manner.
95.14 	(c) In addition, a declarant warrants to a purchaser of a unit which under the declaration 
95.15 	is available for residential use that the residential use will not violate applicable law at the 
95.16 	earlier of the time of conveyance or delivery of possession.
95.17 	(d) Warranties imposed by this section may be excluded or modified only as specified 
95.18 	in section 515B.4-114.
95.19 	(e) For purposes of this section, improvements made or contracted for by an affiliate of 
95.20 	a declarant are made or contracted for by the declarant.
95.21 	(f) Any conveyance of a unit transfers to the purchaser all implied warranties.
95.22 	(g) This section does not in any manner abrogate the provisions of chapter 327A relating 
95.23 	to statutory warranties for housing, or affect any other cause of action under a statute or the 
95.24 	common law.
95.25 	(h) With respect to common interest communities created on or after August 1, 2017, a 
95.26 	development party shall not have liability under this section for loss or damage caused by 
95.27 	the failure of the association or a unit owner to comply with obligations imposed by section 
95.28 	515B.3-107, unless the loss or damage is caused by failure to comply with section 
95.29 	515B.3-107 while the declarant controlled the board.

96.1 	Sec. 38. Minnesota Statutes 2024, section 515B.4-116, is amended to read:
96.2 	515B.4-116 RIGHTS OF ACTION; ATTORNEY'S FEES.
96.3 	(a) In addition to any other rights to recover damages, attorney's fees, costs or expenses, 
96.4 	whether authorized by this chapter or otherwise, if a declarant, an association, or any other 
96.5 	person violates any provision of this chapter, or any provision of the declaration, bylaws, 
96.6 	or rules and regulations any person or class of persons adversely affected by the failure to 
96.7 	comply has a claim for appropriate relief. Subject to the requirements of section 515B.3-102
96.8 	515B.3-102(d) with respect to common interest communities created on or after August 1, 
96.9 	2017, the association shall have standing to pursue claims on behalf of the unit owners of 
96.10 	two or more units.
96.11 	(b) The court may award reasonable attorney's fees and costs of litigation to the prevailing 
96.12 	party. Punitive damages may be awarded for a willful failure to comply.
96.13 	(c) For common interest communities created on or after August 1, 2017, as a condition 
96.14 	precedent to any construction defect claim, the parties to the claim must submit the matter 
96.15 	to mediation before a mutually agreeable neutral third party. For the purposes of this section, 
96.16 	mediation has the meaning given under the General Rules of Practice, rule 114.02 (7). If 
96.17 	the parties are not able to agree on a neutral third-party mediator from the roster maintained 
96.18 	by the Minnesota Supreme Court, the parties may petition the district court in the jurisdiction 
96.19 	in which the common interest community is located to appoint a mediator. The applicable 
96.20 	statute of limitations and statute of repose for an action based on breach of a warranty 
96.21 	imposed by this section, or any other action in contract, tort, or other law for any injury to 
96.22 	real or personal property or bodily injury or wrongful death arising out of the alleged 
96.23 	construction defect, is tolled from the date that any party makes a written demand for 
96.24 	mediation under this section until the latest of the following:
96.25 	(1) five business days after mediation is completed; or
96.26 	(2) 180 days.
96.27 	Notwithstanding the foregoing, mediation shall not be required prior to commencement 
96.28 	of a construction defect claim if the parties have completed home warranty dispute resolution 
96.29 	under section 327A.051.
96.30 	(d) The remedies provided for under this chapter are not exclusive and do not abrogate 
96.31 	any remedies under other statutes or the common law, notwithstanding whether those 
96.32 	remedies are referred to in this chapter.

97.1 	Sec. 39. Minnesota Statutes 2024, section 515B.4-118, is amended to read:
97.2 	515B.4-118 DECLARANT'S OBLIGATION TO COMPLETE AND RESTORE.
97.3 	(a) Except for improvements labeled "NEED NOT BE BUILT," the declarant shall 
97.4 	complete all improvements depicted on any CIC plat prepared pursuant to section 515B.2-110
97.5 	or 515B.2-1101, whether or not the plat is contained in the disclosure statement.
97.6 	(b) The declarant is liable for the prompt repair and restoration of any portion of the 
97.7 	common interest community damaged by the declarant's exercise of any special declarant 
97.8 	rights.