SF 4035

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/03/2026 09:19 a.m.

A bill for an act
relating to common interest communities; limiting late fee charges; requiring
associations to adopt policies on fines and collection; requiring disclosures;
amending Minnesota Statutes 2024, sections 515B.1-103; 515B.3-102; 515B.3-115;
515B.3-1151; 515B.4-1021; 515B.4-107.

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

Section 1.

Minnesota Statutes 2024, section 515B.1-103, is amended to read:

515B.1-103 DEFINITIONS.

In the declaration and bylaws, unless specifically provided otherwise or the context
otherwise requires, and in this chapter:

(1) "Additional real estate" means real estate that may be added to a flexible common
interest community.

(2) "Affiliate of a declarant" means any person who controls, is controlled by, or is under
common control with a declarant.

(A) A person "controls" a declarant if the person (i) is a general partner, officer, director,
or employer of the declarant, (ii) directly or indirectly or acting in concert with one or more
other persons, or through one or more subsidiaries, owns, controls, holds with power to
vote, or holds proxies representing, more than 20 percent of the voting interest in the
declarant, (iii) controls in any manner the election of a majority of the directors of the
declarant, or (iv) has contributed more than 20 percent of the capital of the declarant.

(B) A person "is controlled by" a declarant if the declarant (i) is a general partner, officer,
director, or employer of the person, (ii) directly or indirectly or acting in concert with one
or more other persons, or through one or more subsidiaries, owns, controls, holds with
power to vote, or holds proxies representing, more than 20 percent of the voting interest in
the person, (iii) controls in any manner the election of a majority of the directors of the
person, or (iv) has contributed more than 20 percent of the capital of the person.

(C) Control does not exist if the powers described in this subsection are held solely as
a security interest and have not been exercised.

(3) "Allocated interests" means the following interests allocated to each unit: (i) in a
condominium, the undivided interest in the common elements, the common expense liability,
and votes in the association; (ii) in a cooperative, the common expense liability and the
ownership interest and votes in the association; and (iii) in a planned community, the common
expense liability and votes in the association.

(4) "Association" means the unit owners' association organized under section 515B.3-101.

(5) "Board" means the body, regardless of name, designated in the articles of
incorporation, bylaws or declaration to act on behalf of the association, or on behalf of a
master association when so identified.

(6) "CIC plat" means a common interest community plat described in section 515B.2-110.

(7) "Common elements" means all portions of the common interest community other
than the units.

(8) "Common expenses" means expenditures made or liabilities incurred by or on behalf
of the association, or master association when so identified, together with any allocations
to reserves.

(9) "Common expense liability" means the liability for common expenses allocated to
each unit pursuant to section 515B.2-108.

(10) "Common interest community" or "CIC" means contiguous or noncontiguous real
estate within Minnesota that is subject to an instrument which obligates persons owning a
separately described parcel of the real estate, or occupying a part of the real estate pursuant
to a proprietary lease, by reason of their ownership or occupancy, to pay for (i) real estate
taxes levied against; (ii) insurance premiums payable with respect to; (iii) maintenance of;
or (iv) construction, maintenance, repair or replacement of improvements located on, one
or more parcels or parts of the real estate other than the parcel or part that the person owns
or occupies. Real estate which satisfies the definition of a common interest community is
a common interest community whether or not it is subject to this chapter. Real estate subject
to a master declaration, regardless of when the master declaration was recorded, shall not
collectively constitute a separate common interest community unless so stated in the master
declaration.

(11) "Condominium" means a common interest community in which (i) portions of the
real estate are designated as units, (ii) the remainder of the real estate is designated for
common ownership solely by the owners of the units, and (iii) undivided interests in the
common elements are vested in the unit owners.

(11a) "Construction defect claim" means a civil action or an arbitration proceeding based
on any legal theory including, but not limited to, claims under chapter 327A for damages,
indemnity, or contribution brought against a development party to assert a claim,
counterclaim, cross-claim, or third-party claim for damages or loss to, or the loss of use of,
real or personal property caused by a defect in the initial design or construction of an
improvement to real property that is part of a common interest community, including an
improvement that is constructed on additional real estate pursuant to section 515B.2-111.
"Construction defect claim" does not include claims related to subsequent maintenance,
repairs, alterations, or modifications to, or the addition of, improvements that are part of
the common interest community, and that are contracted for by the association or a unit
owner.

(12) "Conversion property" means real estate on which is located a building that at any
time within two years before creation of the common interest community was occupied, in
whole or in part, for (i) residential use or (ii) for residential rental purposes by persons other
than purchasers and persons who occupy with the consent of purchasers.

(13) "Cooperative" means a common interest community in which the real estate is
owned by an association, each of whose members is entitled to a proprietary lease by virtue
of the member's ownership interest in the association.

(14) "Dealer" means a person in the business of selling units for the person's own account.

(15) "Declarant" means:

(i) if the common interest community has been created, (A) any person who has executed
a declaration, or a supplemental declaration or amendment to a declaration adding additional
real estate, except secured parties, a spouse holding only an inchoate interest, persons whose
interests in the real estate will not be transferred to unit owners, or, in the case of a leasehold
common interest community, a lessor who possesses no special declarant rights and who
is not an affiliate of a declarant who possesses special declarant rights, or (B) any person
who reserves, or succeeds under section 515B.3-104 to any special declarant rights;

(ii) any person or persons acting in concert who have offered prior to creation of the
common interest community to transfer their interest in a unit to be created and not previously
transferred; or

(iii) if (A) a unit has been restricted to nonresidential use and sold to a purchaser who
has agreed to modify or waive, in whole or in part, sections 515B.4-101 to 515B.4-118, and
(B) the restriction expires or is modified or terminated such that residential use of the unit
is permitted, the unit owner at the time the restriction expires or is so modified or terminated
is a declarant with respect to that unit and any improvements subject to use rights by a
purchaser of the unit.

(16) "Declaration" means any instrument, however denominated, that creates a common
interest community.

(16a) "Development party" means an architect, contractor, construction manager,
subcontractor, developer, declarant, engineer, or private inspector performing or furnishing
the design, supervision, inspection, construction, coordination, or observation of the
construction of any improvement to real property that is part of a common interest
community, or any of the person's affiliates, officers, directors, shareholders, members, or
employees.

(17) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any legal
or equitable interest in the common interest community, but the term does not include the
transfer or release of a security interest.

new text begin (17a) "First mortgage" means:
new text end

new text begin (i) if there is only one mortgage encumbering title to a unit, that mortgage; or
new text end

new text begin (ii) if there are multiple mortgages encumbering title to a unit, the mortgage that is first
in priority, whether by operation of applicable law or by a properly recorded agreement.
new text end

new text begin (17b) "First mortgagee" means the holder of a first mortgage.
new text end

(18) "Flexible common interest community" means a common interest community to
which additional real estate may be added.

new text begin (18a) "Governing documents" means the declaration, the articles of incorporation, bylaws
and rules and regulations of an association, as amended from time to time.
new text end

(19) "Leasehold common interest community" means a common interest community in
which all or a portion of the real estate is subject to a lease the expiration or termination of
which will terminate the common interest community or reduce its size.

(20) "Limited common element" means a portion of the common elements allocated by
the declaration or by operation of section 515B.2-109(c) or (d) for the exclusive use of one
or more but fewer than all of the units.

(21) "Master association" means an entity created on or after June 1, 1994, that directly
or indirectly exercises any of the powers set forth in section 515B.3-102 on behalf of one
or more members described in section 515B.2-121(b), (i), (ii) or (iii), whether or not it also
exercises those powers on behalf of one or more property owners' associations described
in section 515B.2-121(b)(iv). A person (i) hired by an association to perform maintenance,
repair, accounting, bookkeeping or management services, or (ii) granted authority under an
instrument recorded primarily for the purpose of creating rights or obligations with respect
to utilities, access, drainage, or recreational amenities, is not, solely by reason of that
relationship, a master association.

(22) "Master declaration" means a written instrument, however named, (i) recorded on
or after June 1, 1994, and (ii) complying with section 515B.2-121, subsection (e).

(23) "Master developer" means a person who is designated in the master declaration as
a master developer or, in the absence of such a designation, the owner or owners of the real
estate subject to the master declaration at the time the master declaration is recorded, except
(i) secured parties and (ii) a spouse holding only an inchoate interest. A master developer
is not a declarant unless the master declaration states that the real estate subject to the master
declaration collectively is or collectively will be a separate common interest community.

(24) "Period of declarant control" means the time period provided for in section
515B.3-103(c) during which the declarant may appoint and remove officers and directors
of the association.

(25) "Person" means an individual, corporation, limited liability company, partnership,
trustee under a trust, personal representative, guardian, conservator, government,
governmental subdivision or agency, or other legal or commercial entity capable of holding
title to real estate.

(26) "Planned community" means a common interest community that is not a
condominium or a cooperative. A condominium or cooperative may be a part of a planned
community.

(27) "Proprietary lease" means an agreement with a cooperative association whereby a
member of the association is entitled to exclusive possession of a unit in the cooperative.

(28) "Purchaser" means a person, other than a declarant, who by means of a voluntary
transfer acquires a legal or equitable interest in a unit other than (i) a leasehold interest of
less than 20 years, including renewal options, or (ii) a security interest.

(29) "Real estate" means any fee simple, leasehold or other estate or interest in, over,
or under land, including structures, fixtures, and other improvements and interests that by
custom, usage, or law pass with a conveyance of land though not described in the contract
of sale or instrument of conveyance. "Real estate" may include spaces with or without upper
or lower boundaries, or spaces without physical boundaries.

(30) "Residential use" means use as a dwelling, whether primary, secondary or seasonal,
but not (i) transient use such as hotels or motels, (ii) use for residential rental purposes if
the individual dwellings are not separate units or if the individual dwellings are not located
on separate parcels of real estate. For purposes of this chapter, a unit is restricted to
nonresidential use if the unit is subject to a restriction that prohibits residential use as defined
in this section whether or not the restriction also prohibits the uses described in this paragraph.

(31) "Secured party" means the person owning a security interest as defined in paragraph
(32).

(32) "Security interest" means a perfected interest in real estate or personal property,
created by contract or conveyance, which secures payment or performance of an obligation.
The term includes a mortgagee's interest in a mortgage, a vendor's interest in a contract for
deed, a lessor's interest in a lease intended as security, a holder's interest in a sheriff's
certificate of sale during the period of redemption, an assignee's interest in an assignment
of leases or rents intended as security, in a cooperative, a lender's interest in a member's
ownership interest in the association, a pledgee's interest in the pledge of an ownership
interest, or any other interest intended as security for an obligation under a written agreement.

(33a) This definition of special declarant rights applies only to common interest
communities created before August 1, 2010. "Special declarant rights" means rights reserved
in the declaration for the benefit of a declarant to:

(i) complete improvements indicated on the CIC plat, planned by the declarant consistent
with the disclosure statement or authorized by the municipality in which the CIC is located;

(ii) add additional real estate to a common interest community;

(iii) subdivide or combine units, or convert units into common elements, limited common
elements, or units;

(iv) maintain sales offices, management offices, signs advertising the common interest
community, and models;

(v) use easements through the common elements for the purpose of making improvements
within the common interest community or any additional real estate;

(vi) create a master association and provide for the exercise of authority by the master
association over the common interest community or its unit owners;

(vii) merge or consolidate a common interest community with another common interest
community of the same form of ownership; or

(viii) appoint or remove any officer or director of the association, or the master association
where applicable, during any period of declarant control.

(33b) This definition of special declarant rights applies only to common interest
communities created on or after August 1, 2010. "Special declarant rights" means rights
reserved in the declaration for the benefit of a declarant and expressly identified in the
declaration as special declarant rights. Such special declarant rights may include but are not
limited to the following:

(i) to complete improvements indicated on the CIC plat, planned by the declarant
consistent with the disclosure statement or authorized by the municipality in which the
common interest community is located, and to have and use easements for itself and its
employees, agents, and contractors through the common elements for such purposes;

(ii) to add additional real estate to a common interest community;

(iii) to subdivide or combine units, or convert units into common elements, limited
common elements and/or units, pursuant to section 515B.2-112;

(iv) to maintain and use sales offices, management offices, signs advertising the common
interest community, and models, and to have and use easements for itself and its employees,
agents, and invitees through the common elements for such purposes;

(v) to appoint or remove any officer or director of the association during any period of
declarant control;

(vi) to utilize an alternate common expense plan as provided in section 515B.3-115(a)(2);

(vii) to grant common element licenses as provided in section 515B.2-109(e); or

(viii) to review, and approve or disapprove, the exterior design, materials, size, site
location, and other exterior features of buildings and other structures, landscaping and other
exterior improvements, located within the common interest community, and any
modifications or alterations thereto.

Special declarant rights shall not be reserved or utilized for the purpose of evading any
limitation or obligation imposed on declarants by this chapter.

(34) "Time share" means a right to occupy a unit or any of several units during three or
more separate time periods over a period of at least three years, including renewal options,
whether or not coupled with a fee title interest in the common interest community or a
specified portion thereof.

(35) "Unit" means a portion of a common interest community the boundaries of which
are described in the common interest community's declaration and which is intended for
separate ownership, or separate occupancy pursuant to a proprietary lease.

(36) "Unit identifier" means English letters or Arabic numerals, or a combination thereof,
which identify only one unit in a common interest community and which meet the
requirements of section 515B.2-104.

(37) "Unit owner" means a declarant or other person who owns a unit, a lessee under a
proprietary lease, or a lessee of a unit in a leasehold common interest community whose
lease expires simultaneously with any lease the expiration or termination of which will
remove the unit from the common interest community, but does not include a secured party.
In a common interest community, the declarant is the unit owner of a unit until that unit has
been conveyed to another person.

Sec. 2.

Minnesota Statutes 2024, section 515B.3-102, is amended to read:

515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.

(a) Except as provided in subsections (b), (c), (d), (e), and (f) and subject to the provisions
of the declaration or bylaws, the association shall have the power to:

(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
incorporation, bylaws and declaration, as follows: (i) regulating the use of the common
elements; (ii) regulating the use of the units, and conduct of unit occupants, which may
jeopardize the health, safety or welfare of other occupants, which involves noise or other
disturbing activity, or which may damage the common elements or other units; (iii) regulating
or prohibiting animals; (iv) regulating changes in the appearance of the common elements
and conduct which may damage the common interest community; (v) regulating the exterior
appearance of the common interest community, including, for example, balconies and patios,
window treatments, and signs and other displays, regardless of whether inside a unit; (vi)
implementing the articles of incorporation, declaration and bylaws, and exercising the
powers granted by this section; and (vii) otherwise facilitating the operation of the common
interest community;

(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
collect assessments for common expenses from unit owners;

(3) hire and discharge managing agents and other employees, agents, and independent
contractors;

(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
own name on behalf of itself or two or more unit owners on matters affecting the common
elements or other matters affecting the common interest community or, (ii) with the consent
of the owners of the affected units on matters affecting only those units;

(5) make contracts and incur liabilities;

(6) regulate the use, maintenance, repair, replacement, and modification of the common
elements and the units;

(7) cause improvements to be made as a part of the common elements, and, in the case
of a cooperative, the units;

(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
real estate or personal property, but (i) common elements in a condominium or planned
community may be conveyed or subjected to a security interest only pursuant to section
515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
may be subjected to a security interest, only pursuant to section 515B.3-112;

(9) grant or amend easements for public utilities, public rights-of-way or other public
purposes, and cable television or other communications, through, over or under the common
elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
by the declaration; and, subject to approval by a vote of unit owners other than declarant
or its affiliates, grant or amend other easements, leases, and licenses through, over or under
the common elements;

(10) impose and receive any payments, fees, or charges for the use, rental, or operation
of the common elements, other than limited common elements, and for services provided
to unit owners;

(11) new text begin (i) new text end impose deleted text begin interest and deleted text end late charges for late payment of assessments new text begin , except that an
association may not impose a late fee in excess of 15 percent of the amount of any installment
of assessments, unless otherwise provided for in the declaration; new text end and deleted text begin ,
deleted text end

new text begin (ii) new text end after notice and an opportunity to be heard before the board or a committee appointed
by it, levy reasonable fines for violations of the declaration, bylaws, and rules and regulations
of the association, provided that new text begin if a hearing is requested by a unit owner, new text end attorney fees and
costs deleted text begin must not be charged or collected from a unit owner who disputes a fine or assessment
and, if after the homeowner requests a hearing and a deleted text end new text begin incurred related to the violation may
not be assessed to the responsible unit or charged to an owner until after the new text end hearing is held
by the board or a committee of the board, new text begin and new text end the board deleted text begin does not adopt deleted text end new text begin or committee adopts new text end
a resolution levying the fine or upholding the assessment against the unit owner or owner's
unit;

(12) impose reasonable charges for the review, preparation and recordation of
amendments to the declaration, resale certificates required by section 515B.4-107, statements
of unpaid assessments, or furnishing copies of association records;

(13) provide for the indemnification of its officers and directors, and maintain directors'
and officers' liability insurance;

(14) provide for reasonable procedures governing the conduct of meetings and election
of directors;

(15) exercise any other powers conferred by law, or by the declaration, articles of
incorporation or bylaws; and

(16) exercise any other powers necessary and proper for the governance and operation
of the association.

(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
on the power of the association to deal with the declarant which are more restrictive than
the limitations imposed on the power of the association to deal with other persons.

(c) new text begin An association must adopt and provide to every unit owner a policy regarding fines
that includes a representative list of violations for which a fine may be imposed, a schedule
of fine amounts, and an explanation of the remedies available to the association in the event
of a violation. The association must provide the policy regarding fines to prospective
purchasers in accordance with section 515B.4-107(a)(1). new text end An association that levies a fine
pursuant to subsection (a)(11), or an assessment pursuant to section 515B.3-115(g), or
515B.3-1151(g), must provide a dated, written notice to a unit owner that:

(1) states the amount and reason for the fine or assessment;

(2) for fines levied under section 515B.3-102(a)(11), specifies: (i) the violation for which
a fine is being levied and the date of the levy; and (ii) the specific section of the declaration,
bylaws, rules, or regulations allegedly violated;

(3) for assessments levied under section 515B.3-115(g) or 515B.3-1151(g), identifies:
(i) the damage caused; and (ii) the act or omission alleged to have caused the damage;

(4) states that all unpaid fines and assessments are liens which, if not satisfied, could
lead to foreclosure of the lien against the owner's unit;

(5) describes the unit owner's right to be heard by the board or a committee appointed
by the board;

(6) states that if the assessment, fine, late fees, and other allowable charges are not paid,
the amount may increase as a result of the imposition of attorney fees and other collection
costs; and

(7) informs the unit owner that homeownership assistance is available from the Minnesota
Homeownership Center.

(d) Notwithstanding subsection (a), powers exercised under this section must comply
with sections 500.215, 500.216, and 500.217.

(e) Notwithstanding subsection (a)(4) or any other provision of this chapter, the
association, before instituting litigation or arbitration involving construction defect claims
against a development party, shall:

(1) mail or deliver written notice of the anticipated commencement of the action to each
unit owner at the addresses, if any, established for notices to owners in the declaration and,
if the declaration does not state how notices are to be given to owners, to the owner's last
known address. The notice shall specify the nature of the construction defect claims to be
alleged, the relief sought, and the manner in which the association proposes to fund the cost
of pursuing the construction defect claims; and

(2) obtain the approval of owners of units to which a majority of the total votes in the
association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
are excluded. The association may obtain the required approval by a vote at an annual or
special meeting of the members or, if authorized by the statute under which the association
is created and taken in compliance with that statute, by a vote of the members taken by
electronic means or mailed ballots. If the association holds a meeting and voting by electronic
means or mailed ballots is authorized by that statute, the association shall also provide for
voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
or mailed ballots, except that the votes must be used in combination with the vote taken at
a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
for purposes of determining whether a quorum was present. Proxies may not be used for a
vote taken under this paragraph unless the unit owner executes the proxy after receipt of
the notice required under subsection (e)(1) and the proxy expressly references this notice.

(f) The association may intervene in a litigation or arbitration involving a construction
defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
claim before complying with subsections (e)(1) and (e)(2) but the association's complaint
in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without
prejudice unless the association has complied with the requirements of subsection (e) within
90 days of the association's commencement of the complaint in an intervention or the
assertion of the counterclaim, crossclaim, or third-party claim.

Sec. 3.

Minnesota Statutes 2024, section 515B.3-115, is amended to read:

515B.3-115 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED
BEFORE AUGUST 1, 2010.

(a) The obligation of a unit owner to pay common expense assessments shall be as
follows:

(1) If a common expense assessment has not been levied, the declarant shall pay all
operating expenses of the common interest community, and shall fund the replacement
reserve component of the common expenses as required by subsection (b).

(2) If a common expense assessment has been levied, all unit owners, including the
declarant, shall pay the assessments allocated to their units, subject to the following:

(i) If the declaration so provides, a declarant's liability, and the assessment lien, for the
common expense assessments, exclusive of replacement reserves, on any unit owned by
the declarant may be limited to 25 percent or more of any assessment, exclusive of
replacement reserves, until the unit or any building located in the unit is substantially
completed. Substantial completion shall be evidenced by a certificate of occupancy in any
jurisdiction that issues the certificate.

(ii) If the declaration provides for a reduced assessment pursuant to paragraph (2)(i),
the declarant shall be obligated, within 60 days following the termination of the period of
declarant control, to make up any operating deficit incurred by the association during the
period of declarant control. The existence and amount, if any, of the operating deficit shall
be determined using the accrual basis of accounting applied as of the date of termination
of the period of declarant control, regardless of the accounting methodology previously
used by the association to maintain its accounts.

(b) The replacement reserve component of the common expenses shall be funded for
each unit in accordance with the projected annual budget required by section
515B.4-102(a)(23) provided that the funding of replacement reserves with respect to a unit
shall commence no later than the date that the unit or any building located within the unit
boundaries is substantially completed. Substantial completion shall be evidenced by a
certificate of occupancy in any jurisdiction that issues the certificate.

(c) After an assessment has been levied by the association, assessments shall be levied
at least annually, based upon a budget approved at least annually by the association.

(d) Except as modified by subsections (a)(1) and (2), (e), (f), and (g), all common
expenses shall be assessed against all the units in accordance with the allocations established
by the declaration pursuant to section 515B.2-108.

(e) Unless otherwise required by the declaration:

(1) any common expense associated with the maintenance, repair, or replacement of a
limited common element shall be assessed against the units to which that limited common
element is assigned, equally, or in any other proportion the declaration provides;

(2) any common expense or portion thereof benefiting fewer than all of the units may
be assessed exclusively against the units benefited, equally, or in any other proportion the
declaration provides;

(3) the costs of insurance may be assessed in proportion to risk or coverage, and the
costs of utilities may be assessed in proportion to usage;

(4) subject to section 515B.3-102(a)(11), reasonable attorney fees and costs incurred by
the association in connection with (i) the collection of assessments against a unit owner,
and (ii) the enforcement of this chapter, the articles, bylaws, declaration, or rules and
regulations against a unit owner, may be assessed against the unit owner's unit subject to
section 515B.3-116(h); and

(5) fees, charges, late charges, fines and interest may be assessed as provided in section
515B.3-116(a).

(f) Assessments levied under section 515B.3-116 to pay a judgment against the association
may be levied only against the units in the common interest community at the time the
judgment was entered, in proportion to their common expense liabilities.

(g) If any damage to the common elements or another unit is caused by the act or omission
of any unit owner, or occupant of a unit, or their invitees, the association may assess the
costs of repairing the damage exclusively against the unit owner's unit to the extent not
covered by insurance.

(h) Subject to any shorter period specified by the declaration or bylaws, if any installment
of an assessment becomes more than 60 days past due, then the association may, upon ten
days' written notice to the unit owner, declare the entire amount of the assessment
immediately due and payable in full, except that any portion of the assessment that represents
installments that are not due and payable without acceleration as of the date of reinstatement
must not be included in the amount that a unit owner must pay to reinstate under section
580.30 or chapter 581.

(i) If common expense liabilities are reallocated for any purpose authorized by this
chapter, common expense assessments and any installment thereof not yet due shall be
recalculated in accordance with the reallocated common expense liabilities.

(j) An assessment against fewer than all of the units must be levied within three years
after the event or circumstances forming the basis for the assessment, or shall be barred.

new text begin (k) An association must adopt a collection policy and provide a copy to all unit owners
and prospective purchasers as required pursuant to section 515B.4-107(a)(1). A collection
policy must provide at a minimum:
new text end

new text begin (1) three separate notifications to a unit owner before the account is referred to a law
firm or collection agency for collections, including at least one notification sent by certified
mail to the unit owner's registered address; and
new text end

new text begin (2) require any law firm engaged to foreclose an association's lien for assessments to
send the preforeclosure notice required to be provided pursuant to section 580.022 by United
States mail and certified mail.
new text end

deleted text begin (k) deleted text end new text begin (l) new text end This section applies only to common interest communities created before August
1, 2010.

Sec. 4.

Minnesota Statutes 2024, section 515B.3-1151, is amended to read:

515B.3-1151 ASSESSMENTS FOR COMMON EXPENSES; CIC CREATED ON
OR AFTER AUGUST 1, 2010.

(a) The association shall approve an annual budget of common expenses at or prior to
the conveyance of the first unit in the common interest community to a purchaser and
annually thereafter. The annual budget shall include all customary and necessary operating
expenses and replacement reserves for the common interest community, consistent with
this section and section 515B.3-114. For purposes of replacement reserves under subsection
(b), until an annual budget has been approved, the reserves shall be paid based upon the
budget contained in the disclosure statement required by section 515B.4-102. The obligation
of a unit owner to pay common expenses shall be as follows:

(1) If a common expense assessment has not been levied by the association, the declarant
shall pay all common expenses of the common interest community, including the payment
of the replacement reserve component of the common expenses for all units in compliance
with subsection (b).

(2) If a common expense assessment has been levied by the association, all unit owners,
including the declarant, shall pay the assessments levied against their units, except as follows:

(i) The declaration may provide for an alternate common expense plan whereby the
declarant's common expense liability, and the corresponding assessment lien against the
units owned by the declarant, is limited to: (A) paying when due, in compliance with
subsection (b), an amount equal to the full share of the replacement reserves allocated to
units owned by the declarant, as set forth in the association's annual budget approved as
provided in this subsection; and (B) paying when due all accrued expenses of the common
interest community in excess of the aggregate assessments payable with respect to units
owned by persons other than a declarant; provided, that the alternate common expense plan
shall not affect a declarant's obligation to make up any operating deficit pursuant to item
(iv), and shall terminate upon the termination of any period of declarant control unless
terminated earlier pursuant to item (iii).

(ii) The alternate common expense plan may be authorized only by including in the
declaration and the disclosure statement required by section 515B.4-102 provisions
authorizing and disclosing the alternate common expense plan as described in item (i), and
including in the disclosure statement either (A) a statement that the alternate common
expense plan will have no effect on the level of services or amenities anticipated by the
association's budget contained in the disclosure statement, or (B) a statement describing
how the services or amenities may be affected.

(iii) A declarant shall give notice to the association of its intent to utilize the alternate
common expense plan and a commencement date after the date the notice is given. The
alternate common expense plan shall be valid only for periods after the notice is given. A
declarant may terminate its right to utilize the alternate common expense plan prior to the
termination of the period of declarant control only by giving notice to the association and
the unit owners at least 30 days prior to a selected termination date set forth in the notice.

(iv) If a declarant utilizes an alternate common expense plan, that declarant shall cause
to be prepared and delivered to the association, at the declarant's expense, within 90 days
after the termination of the period of declarant control, an audited balance sheet and profit
and loss statement certified to the association and prepared by an accountant having the
qualifications set forth in section 515B.3-121(b). The audit shall be binding on the declarant
and the association.

(v) If the audited profit and loss statement shows an accumulated operating deficit, the
declarant shall be obligated to make up the deficit within 15 days after delivery of the audit
to the association, and the association shall have a claim against the declarant for an amount
equal to the deficit until paid. A declarant who does not utilize an alternate common expense
plan is not liable to make up any operating deficit. If more than one declarant utilizes an
alternate common expense plan, all declarants who utilize the plan are jointly and severally
liable to the association for any operating deficit.

(vi) The existence and amount, if any, of the operating deficit shall be determined using
the accrual method of accounting applied as of the date of termination of the period of
declarant control, regardless of the accounting methodology previously used by the
association to maintain its accounts.

(vii) Unless approved by a vote of the unit owners other than the declarant and its
affiliates, the operating deficit shall not be made up, prior to the election by the unit owners
of a board of directors pursuant to section 515B.3-103(d), through the use of a special
assessment described in subsection (c) or by assessments described in subsections (e), (f),
and (g).

(viii) The use by a declarant of an alternate common expense plan shall not affect the
obligations of the declarant or the association as provided in the declaration, the bylaws, or
this chapter, or as represented in the disclosure statement required by section 515B.4-102,
except as to matters authorized by this chapter.

(b) The replacement reserves required by section 515B.3-114 shall be paid to the
association by each unit owner for each unit owned by that unit owner in accordance with
the association's annual budget approved pursuant to subsection (a), regardless of whether
an annual assessment has been levied or whether the declarant has utilized an alternate
common expense plan under subsection (a)(2). Replacement reserves shall be paid with
respect to a unit commencing as of the later of (1) the date of creation of the common interest
community or (2) the date that the structure and exterior of the building containing the unit,
or the structure and exterior of any building located within the unit boundaries, but excluding
the interior finishing of the structure itself, are substantially completed. If the association
has not approved an annual budget as of the commencement date for the payment of
replacement reserves, then the reserves shall be paid based upon the budget contained in
the disclosure statement required by section 515B.4-102.

(c) After an assessment has been levied by the association, assessments shall be levied
at least annually, based upon an annual budget approved by the association. In addition to
and not in lieu of annual assessments, an association may, if so provided in the declaration,
levy special assessments against all units in the common interest community based upon
the same formula required by the declaration for levying annual assessments. Special
assessments may be levied only (1) to cover expenditures of an emergency nature, (2) to
replenish underfunded replacement reserves, (3) to cover unbudgeted capital expenditures
or operating expenses, or (4) to replace certain components of the common interest
community described in section 515B.3-114(a), if such alternative method of funding is
approved under section 515B.3-114(a)(5). The association may also levy assessments against
fewer than all units as provided in subsections (e), (f), and (g). An assessment under
subsection (e)(2) for replacement reserves is subject to the requirements of section
515B.3-1141(a)(5).

(d) Except as modified by subsections (a), clauses (1) and (2), (e), (f), and (g), all common
expenses shall be assessed against all the units in accordance with the allocations established
by the declaration pursuant to section 515B.2-108.

(e) Unless otherwise required by the declaration:

(1) any common expense associated with the maintenance, repair, or replacement of a
limited common element shall be assessed against the units to which that limited common
element is assigned, equally, or in any other proportion the declaration provides;

(2) any common expense or portion thereof benefiting fewer than all of the units may
be assessed exclusively against the units benefited, equally, or in any other proportion the
declaration provides;

(3) the costs of insurance may be assessed in proportion to risk or coverage, and the
costs of utilities may be assessed in proportion to usage;

(4) subject to section 515B.3-102(a)(11), reasonable attorney fees and costs incurred by
the association in connection with (i) the collection of assessments, and (ii) the enforcement
of this chapter, the articles, bylaws, declaration, or rules and regulations, against a unit
owner, may be assessed against the unit owner's unit, subject to section 515B.3-116(h); and

(5) fees, charges, late charges, fines, and interest may be assessed as provided in section
515B.3-116(a).

(f) Assessments levied under section 515B.3-116 to pay a judgment against the association
may be levied only against the units in the common interest community at the time the
judgment was entered, in proportion to their common expense liabilities.

(g) If any damage to the common elements or another unit is caused by the act or omission
of any unit owner, or occupant of a unit, or their invitees, the association may assess the
costs of repairing the damage exclusively against the unit owner's unit to the extent not
covered by insurance.

(h) Subject to any shorter period specified by the declaration or bylaws, if any installment
of an assessment becomes more than 60 days past due, then the association may, upon ten
days' written notice to the unit owner, declare the entire amount of the assessment
immediately due and payable in full, except that any portion of the assessment that represents
installments that are not due and payable without acceleration as of the date of reinstatement
must not be included in the amount that a unit owner must pay to reinstate under section
580.30 or chapter 581.

(i) If common expense liabilities are reallocated for any purpose authorized by this
chapter, common expense assessments and any installment thereof not yet due shall be
recalculated in accordance with the reallocated common expense liabilities.

(j) An assessment against fewer than all of the units must be levied within three years
after the event or circumstances forming the basis for the assessment, or shall be barred.

new text begin (k) An association must adopt a collection policy and provide a copy to all unit owners
and prospective purchasers as required pursuant to section 515B.4-107(a)(1). A collection
policy must provide at a minimum:
new text end

new text begin (1) three separate notifications to a unit owner before the account is referred to a law
firm or collection agency for collections, including at least one notification sent by certified
mail to the unit owner's registered address; and
new text end

new text begin (2) require any law firm engaged to foreclose an association's lien for assessments to
send the preforeclosure notice required to be provided pursuant to section 580.022 by United
States mail and certified mail.
new text end

deleted text begin (k) deleted text end new text begin (l) new text end This section applies only to common interest communities created on or after
August 1, 2010.

Sec. 5.

Minnesota Statutes 2024, section 515B.4-1021, is amended to read:

515B.4-1021 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
CREATED ON OR AFTER AUGUST 1, 2010.

(a) A disclosure statement shall fully and accurately disclose:

(1) the name and, if available, the number of the common interest community;

(2) the name and principal address of each declarant holding any special declarant rights;
a description of the special declarant rights held by each declarant; a description of the units
or additional real estate to which the respective special declarant rights apply; and a copy
of any recorded transfer of special declarant rights pursuant to section 515B.3-104(a), or
any instrument recorded pursuant to section 515B.3-104(b), (g), or (h);

(3) the total number of units which all declarants have the right to include in the common
interest community and a statement that the common interest community is either a
condominium, cooperative, or planned community;

(4) a general description of the common interest community, including, at a minimum,
(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
construction, (iv) whether the common interest community involves new construction or
rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
before it was added to the common interest community, and the nature of the occupancy,
(vi) a general description of any roads, trails, or utilities that are located on the common
elements and that the association or master association will be required to maintain, (vii) a
description of any declarant licensing rights under section 515B.2-109(e), and (viii) the
initial maintenance plan, initial maintenance schedule, and maintenance budget under section
515B.3-107(b). The initial maintenance plan prepared by the declarant must be based on
the best available information listing all building elements to which the plan will apply and
the generally accepted standards of maintenance on which the plan is based. The initial plan
must be dated and signed by the declarant and be fully funded by the initial budget provided
by the declarant;

(5) declarant's schedule of commencement and completion of construction of any
buildings and other improvements that the declarant is obligated to build pursuant to section
515B.4-117;

(6) any expenses or services, not reflected in the budget, that the declarant pays or
provides, which may become a common expense; the projected common expense attributable
to each of those expenses or services; a description of any alternate common expense plan
under section 515B.3-115(a)(2)(i); and, if the declaration provides for an alternate common
expense plan, either (i) a statement that the alternate common expense plan will have no
effect on the level of services or amenities anticipated by the association's budget or disclosed
in the disclosure statement, or (ii) a statement describing how the services or amenities may
be affected;

(7) any initial or special fee due from the purchaser to the declarant or the association
at closing, together with a description of the purpose and method of calculating the fee;

(8) identification of any liens, defects, or encumbrances which will continue to affect
the title to a unit or to any real property owned by the association after the contemplated
conveyance;

(9) a description of any financing offered or arranged by the declarant;

(10) a statement as to whether application has been made for any project approvals for
the common interest community from the Federal National Mortgage Association (FNMA),
Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
Development (HUD), or Department of Veterans Affairs (VA), and which, if any, such
final approvals have been received;

(11) the terms of any warranties provided by the declarant, including copies of sections
515B.4-112 to 515B.4-115, and any other applicable statutory warranties, and a statement
of any limitations on the enforcement of the applicable warranties or on damages;

(12) a statement that:

(i) within ten days after the receipt of a disclosure statement, a purchaser may cancel
any contract for the purchase of a unit from a declarant; provided, that the right to cancel
terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the
declarant or by the purchaser agreeing to modify or waive the right to cancel in the manner
provided by section 515B.4-106(a);

(ii) if a purchaser receives a disclosure statement more than ten days before signing a
purchase agreement, the purchaser cannot cancel the purchase agreement; and

(iii) if a declarant obligated to deliver a disclosure statement fails to deliver a disclosure
statement which substantially complies with this chapter to a purchaser to whom a unit is
conveyed, the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);

(13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
the association is a party, and the status of those lawsuits which are material to the common
interest community or the unit being purchased;

(14) a statement (i) describing the conditions under which earnest money will be held
in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;

(15) a detailed description of the insurance coverage provided by the association for the
benefit of unit owners, including a statement as to which, if any, of the items referred to in
section 515B.3-113(b), are insured by the association deleted text begin ; deleted text end new text begin . The description of insurance must
identify the association's deductible amounts for property damage, including wind and hail
claims, that may be assessed to a unit as a loss assessment. All descriptions of insurance
must contain the following statement:
new text end

new text begin "The unit owner, at the time a loss assessment is due is personally liable for payment of
a loss assessment. The deductible and potential loss assessment amount is subject to change
each year when the association purchases new insurance. It is recommended that each unit
owner personally purchase insurance coverage for loss assessments in the amount of the
association's deductible. IF THE ASSOCIATION ASSESSES A LOSS ASSESSMENT,
THE UNIT OWNER IS PERSONALLY RESPONSIBLE FOR PAYING IT, EVEN IF
THE UNIT OWNER DOES NOT HAVE APPROPRIATE INSURANCE COVERAGE.";
new text end

(16) any current or expected fees or charges, other than assessments for common
expenses, to be paid by unit owners for the use of the common elements or any other
improvements or facilities;

(17) the financial arrangements, including any contingencies, which have been made to
provide for completion of all improvements that the declarant is obligated to build pursuant
to section 515B.4-118, or a statement that no such arrangements have been made;

(18) in a cooperative:

(i) whether the unit owners will be entitled, for federal and state tax purposes, to deduct
payments made by the association for real estate taxes and interest paid to the holder of a
security interest encumbering the cooperative;

(ii) a statement as to the effect on the unit owners if the association fails to pay real estate
taxes or payments due the holder of a security interest encumbering the cooperative; and

(iii) the principal amount and a general description of the terms of any blanket mortgage,
contract for deed, or other blanket security instrument encumbering the cooperative property;

(19) a statement:

(i) that real estate taxes for the unit or any real property owned by the association are
not delinquent or, if there are delinquent real estate taxes, describing the property for which
the taxes are delinquent, stating the amount of the delinquent taxes, interest, and penalties,
and stating the years for which taxes are delinquent; and

(ii) setting forth the amount of real estate taxes, including the amount of any special
assessment certified for payment with the real estate taxes, due and payable with respect to
the unit in the year in which the disclosure statement is given, if real estate taxes have been
separately assessed against the unit;

(20) if the unit or other parcel of real estate being purchased is or may be subject to a
master declaration at the time of the conveyance from the declarant to the purchaser, a
statement to that effect, and all of the following information with respect to the master
association:

(i) copies of the following documents (which may be in proposed form if the master
declaration has not been recorded): the master declaration, the articles of incorporation,
bylaws, and rules and regulations for the master association, together with any amendments
thereto;

(ii) the name and address of the master developer, and the name, address, and general
description of the master association, including a general description of any other association,
unit owners, or other persons which are or may become members;

(iii) a description of any nonresidential use permitted on any property subject to the
master declaration;

(iv) a statement as to the estimated maximum number of associations, unit owners, or
other persons which may become members of the master association, and a description of
any period of control of the master association and rights to appoint master association
directors by a master developer or other person pursuant to section 515B.2-121(c);

(v) a description of any facilities intended for the benefit of the members of the master
association and not located on property owned or controlled by a member of the master
association;

(vi) the financial arrangements, including any contingencies, which have been made to
provide for completion of the facilities referred to in subsection (v), or a statement that no
arrangements have been made;

(vii) any current balance sheet of the master association and a projected or current annual
budget, as applicable, which budget shall include with respect to the master association
those items in paragraph (23), clauses (i) through (iii), and the projected monthly or other
periodic common expense assessment payment for each type of unit, lot, or other parcel of
real estate which is or is planned to be subject to assessment;

(viii) a description of any expenses or services not reflected in the budget, paid for or
provided by a master developer or another person executing the master declaration, which
may become an expense of the master association in the future;

(ix) a description of any powers delegated to and accepted by the master association
pursuant to section 515B.2-121(e)(2);

(x) identification of any liens, defects, or encumbrances that will continue to affect title
to property owned or operated by the master association for the benefit of its members;

(xi) the terms of any warranties provided by any person for construction of facilities in
which the members of the master association have or may have an interest, and any known
defects in the facilities which would violate the standards described in section
515B.4-113(b)(2);

(xii) a statement disclosing, after inquiry of the master association, any unsatisfied
judgments or lawsuits to which the master association is a party, and the status of those
lawsuits which are material to the master association;

(xiii) a description of any insurance coverage provided for the benefit of its members
by the master association deleted text begin ; and deleted text end new text begin . The description of insurance must identify the master
association's deductible amounts for property damage, including wind and hail claims, that
may be assessed to a unit as a loss assessment. All descriptions of insurance must contain
the following statement:
new text end

new text begin "The unit owner, at the time a loss assessment is due is personally liable for payment of
a loss assessment. The deductible and potential loss assessment amount is subject to change
each year when the association purchases new insurance. It is recommended that each unit
owner personally purchase insurance coverage for loss assessments in the amount of the
association's deductible. IF THE ASSOCIATION ASSESSES A LOSS ASSESSMENT,
THE UNIT OWNER IS PERSONALLY RESPONSIBLE FOR PAYING IT, EVEN IF
THE UNIT OWNER DOES NOT HAVE APPROPRIATE INSURANCE COVERAGE.";
and
new text end

(xiv) any current or expected fees or charges, other than assessments by the master
association, to be paid by members of the master association for the use of any facilities
intended for the benefit of the members;

(21) a statement as to whether the unit will be substantially completed at the time of
conveyance to a purchaser, and, if not substantially completed, who is responsible to complete
and pay for the construction of the unit;

(22) copies of the following documents (which may be in proposed form if the declaration
has not been recorded): the declaration and any supplemental declaration, and any
amendments thereto (exclusive of the CIC plat); any other recorded covenants, conditions,
restrictions, and reservations affecting the common interest community; the articles of
incorporation, bylaws, and any rules or regulations of the association; the names of the
current members of the association's board of directors; any agreement excluding or
modifying any implied warranties; any agreement reducing the statute of limitations for the
enforcement of warranties; any contracts or leases to be signed by the purchaser at closing;
and a description of any material contracts, leases, or other agreements affecting the common
interest community; deleted text begin and
deleted text end

(23) a balance sheet for the association, following the creation of the association, current
within 90 days; a projected annual budget for the association; and a statement identifying
the party responsible for the preparation of the budget. The budget shall assume that all
units intended to be included in the common interest community, based upon the declarant's
good faith estimate, have been subjected to the declaration; provided, that additional budget
portrayals based upon a lesser number of units are permitted. The budget shall include,
without limitation:

(i) a statement of the amount included in the budget as a reserve for replacement, the
components of the common interest community for which the reserves are budgeted, and
the amounts of the reserves, if any, that are allocated for the replacement of each of those
components;

(ii) a statement of any other reserves;

(iii) the projected common expense for each category of expenditures for the association;

(iv) the projected monthly common expense assessment for each type of unit;

(v) a statement as to the components of the common interest community whose
replacement will be funded by assessments under section 515B.3-115(c) or (e), rather than
by replacement reserves as approved pursuant to section 515B.3-114(a). If, based upon the
association's then-current budget, the monthly common expense assessment for the unit at
the time of conveyance to the purchaser is anticipated to exceed the monthly assessment
stated in the budget, a statement to such effect shall be included deleted text begin . deleted text end new text begin ; and
new text end

new text begin (vi) a copy of any reserve study or any other reports or estimates utilized by the declarant
in providing the information required by section 515B.4-102(a)(23);
new text end

new text begin (24) the schedules of fines and allowable remedies required under section 515B.3-102
and the collection policy adopted by the association under section 515B.3-115(k) or
515B.3-1151(k); and
new text end

new text begin (25) the following statement and acknowledgment for execution by a unit purchaser or
potential unit purchaser:
new text end

new text begin "By purchasing a unit within a common interest community the undersigned
acknowledges that they understand the legal documents they have been provided in this
disclosure will impact property rights related to the subject property and may impose certain
obligations on them as a unit owner. Governing documents for a common interest community
dictate how decisions will be made related to the property, including financial decisions,
maintenance decisions, and restrictions on the use of the property, which may include, but
not be limited to, restrictions on parking, appearance, noise, smoking, pets, and rentals.
Governing documents may also be modified or changed at any time with the appropriate
approval and any modifications or amendments will apply to existing unit owners. If the
undersigned has questions about the impact on property rights from the governing documents
provided with this disclosure, it is advisable to consult with an attorney."
new text end

(b) A declarant shall promptly amend the disclosure statement to reflect any material
change in the information required by this chapter.

(c) The master association, within ten days after a request by a declarant, a holder of
declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
representative of any of them, shall furnish the information required to be provided by
subsection (a)(20). A declarant or other person who provides information pursuant to
subsection (a)(20), is not liable to the buyer for any erroneous information if the declarant
or other person: (i) is not an affiliate of or related in any way to a person authorized to
appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
actual knowledge that the information is incorrect.

(d) This section applies only to common interest communities created on or after August
1, 2010.

Sec. 6.

Minnesota Statutes 2024, section 515B.4-107, is amended to read:

515B.4-107 RESALE OF UNITS.

(a) In the event of a resale of a unit by a unit owner other than a declarant, unless exempt
under section 515B.4-101(c), the unit owner shall furnish to a purchaser, before execution
of any purchase agreement for a unit or otherwise before conveyance, the following
documents relating to the association or to the master association, if applicable:

(1) copies of the declaration (other than any CIC plat), the articles of incorporation and
bylaws, any rules and regulations, and any amendments or supplemental declarations new text begin ,
including the schedules of fines and allowable remedies required under section 515B.3-102
and the collection policy adopted by the association under section 515B.3-115(k) or
515B.3-1151(k) new text end ;

(2) copies of the master declaration, articles of incorporation, bylaws, and rules and
regulations, if the common interest community is subject to a master declaration; deleted text begin and
deleted text end

new text begin (3) a copy of any reserve study obtained by the association within the past three years,
for the purposes of evaluating the adequacy of replacement reserve contributions and
compliance with section 515B.3-1141; and
new text end

deleted text begin (3) deleted text end new text begin (4) new text end a resale disclosure certificate from the association dated not more than 90 days
prior to the date of the purchase agreement or the date of conveyance, whichever is earlier,
containing the information set forth in subsection (b).

(b) The resale disclosure certificate must be in substantially the following form:

COMMON INTEREST COMMUNITY

RESALE DISCLOSURE CERTIFICATE

Name of Common Interest Community: .

Name of Association: .

Address of Association: .

Unit Number(s) (include principal unit and any garage, storage, or other auxiliary units):

Common elements licensed under Minnesota Statutes, section 515B.2-109(e):

.

.

The following information is furnished by the association named above according to
Minnesota Statutes, section 515B.4-107.

1. There is no right of first refusal or other restraint on the free alienability of the above
unit(s) contained in the declaration, bylaws, rules and regulations, or any amendment to
them, except as follows: .

.

.

.

2. The following periodic installments of common expense assessments and special
assessments are payable with respect to the above unit(s):

	a.	Annual assessment installments:				$ .	Due: .
	b.	Special assessment installments:				$ .	Due: .
	c.	Unpaid assessments, fines, or other charges:
			(1)	Annual	$ .
			(2)	Special	$ .
			(3)	Fines	$ .
			(4)	Other Charges	$ .
	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). If a plan is approved, a description of the plan is attached to this certificate.

3. In addition to the amounts due under paragraph 2, the following additional fees or
charges other than assessments are payable by unit owners (include late payment charges,
user fees, etc.):

.

.

.

4. There are no extraordinary expenditures approved by the association, and not yet
assessed, for the current and two succeeding fiscal years, except as follows: .

.

.

5. The association is obligated to replace the following components of the common
interest community: .

.

.

The association has the following amounts in its reserves for replacement of those
components:

.

.

The replacement of the following components is funded by assessments levied only against
the unit or units served by the component, pursuant to Minnesota Statutes, section
515B.3-115 (e)(1) or (2). .

.

.

6. The following documents are furnished with this certificate according to statute:

	a.	The most recent regularly prepared balance sheet and income and expense statement of the association.
	b.	The current budget of the association.

7. There are no unsatisfied judgments against the association, except as follows (identify
creditor and amount): .

.

.

8. There are no pending lawsuits to which the association is a party, except as follows
(identify and summarize status): .

.

.

9. Description of insurance coverages:

a. The association provides the following insurance coverage for the benefit of unit
owners: (Reference may be made to applicable sections of the declaration or bylaws;
however, any additional coverages should be described in this space) .

.

.

.

b. The following described fixtures, decorating items, or construction items within the
unit referred to in Minnesota Statutes, section 515B.3-113, subsection (b), are insured by
the association (check as applicable):

..... Ceiling or wall finishing materials

..... Finished flooring

..... Cabinetry

..... Finished millwork

..... Electrical, heating, ventilating, and air conditioning equipment, or plumbing fixtures
serving a single unit

..... Built-in appliances

..... Improvements and betterments as originally constructed

..... Additional improvements and betterments installed by unit owners

new text begin c. The association's master insurance has deductible amounts for property damage,
including wind or hail claims, that may be assessed to a unit as a loss assessment. The unit
owner, at the time a loss assessment is due, is personally liable for payment of a loss
assessment. The deductible and potential loss assessment amount is subject to change each
year when the association purchases new insurance. It is recommended that each unit owner
personally purchase insurance coverage for loss assessments in the amount of the association's
deductible. IF THE ASSOCIATION ASSESSES A LOSS ASSESSMENT, THE UNIT
OWNER IS PERSONALLY RESPONSIBLE FOR PAYING IT, EVEN IF THE UNIT
OWNER DOES NOT HAVE APPROPRIATE INSURANCE COVERAGE.
new text end

10. The board of directors of the association has not notified the unit owner (i) that any
alterations or improvements to the unit or to the limited common elements assigned to it
violate any provision of the declaration; or (ii) that the unit is in violation of any governmental
statute, ordinance, code, or regulation, except as follows: .

.

11. The remaining term of any leasehold estate affecting the common interest community
and the premises governing any extension or renewal of it are as follows: .

.

.

12. This Resale Disclosure Certificate is given in connection with the resale of a unit
by a unit owner who is not a declarant and who, therefore, is not liable for express warranties
under Minnesota Statutes, section 515B.4-112, or implied warranties under Minnesota
Statutes, section 515B.4-113. The conveyance of this unit may, however, result in a transfer
of preexisting warranties made by a declarant under the referenced statutes, subject to the
terms of Minnesota Statutes, sections 515B.4-114 and 515B.4-115.

13. In addition to the above, the following matters affecting the occupancy or use of the
unit, or the unit owner's obligations with respect to the unit, are deemed material: .

.

I hereby certify that the foregoing information and statements are true and correct as
of .

.
(Date)
		By: .
		Title: .
		(Association representative)
		Address: .
		Phone Number: .

RECEIPT

In addition to the foregoing information furnished by the association, the unit owner is
obligated to furnish to the purchaser before execution of any purchase agreement for a unit
or otherwise before conveyance, copies of the following documents relating to the association
or to the master association (as applicable): the declaration (other than any common interest
community plat), articles of incorporation, bylaws, rules and regulations (if any), and any
amendments to these documents. Receipt of the foregoing documents, and the resale
disclosure certificate, is acknowledged by the undersigned buyer(s).

new text begin Buyer also acknowledges that they understand the legal documents they have been provided
in this disclosure will impact property rights related to the subject property and may impose
certain obligations as a unit owner. Governing documents for a common interest community
dictate how decisions will be made related to the property, including financial decisions,
maintenance decisions, and restrictions on the use of the property, which may include, but
not be limited to, restrictions on parking, appearance, noise, smoking, pets, and rentals.
Governing documents may also be modified or changed at any time with the appropriate
approval and any modifications or amendments will apply to existing unit owners. If the
undersigned has questions about the impact on property rights from the governing documents
provided with this disclosure, it is advisable to consult with an attorney.
new text end

	Dated: .		.
			(Buyer)
			.
			(Buyer)

(c) If the common interest community is subject to a master declaration and governed
by a master association to which has been delegated any of the association's powers under
section 515B.3-102(a)(2), then the financial information required to be disclosed under
subsection (b) may be disclosed on a consolidated basis.

(d) The association, within ten days after a request by a unit owner, or the unit owner's
authorized representative, shall furnish the certificate required in subsection (a). The
association may charge a reasonable fee for furnishing the certificate and any association
documents related thereto. A unit owner providing a certificate pursuant to subsection (a)
is not liable to the purchaser for any erroneous information provided by the association and
included in the certificate. A unit owner who has acquired title to a unit pursuant to section
515B.3-104 including, but not limited to, a unit owner who has acquired title through
foreclosure or a deed in lieu of foreclosure, must indicate to the association in connection
with a request for a resale disclosure certificate whether the requesting unit owner is or is
not a declarant. The unit owner, not the association, is liable for any damage, loss, or other
consequence arising out of the incorrect representation of its declarant status.

(e) A purchaser is not liable for any unpaid common expense assessments, including
special assessments, if any, not set forth in the certificate required in subsection (a). A
purchaser is not liable for the amount by which the annual or special assessments exceed
the amount of annual or special assessments stated in the certificate for assessments payable
in the year in which the certificate was given, except to the extent of any increases
subsequently approved in accordance with the declaration or bylaws. A unit owner is not
liable to a purchaser for the failure of the association to provide the certificate, or a delay
by the association in providing the certificate in a timely manner.