1.1                          A bill for an act 
  1.2             relating to real property; clarifying law relating to 
  1.3             servitudes created by a common owner of multiple 
  1.4             pieces of property; providing for filing of an amended 
  1.5             application to register land; authorizing attorney 
  1.6             general to represent state in certain torrens 
  1.7             proceedings; providing for issuance of certificates of 
  1.8             title for common elements in a condominium; permitting 
  1.9             owners of certain land to request new certificates of 
  1.10            title; modifying certificates of possessory title; 
  1.11            modifying Minnesota Common Interest Ownership Act; 
  1.12            exempting registered/torrens land from the 40 year 
  1.13            law; amending Minnesota Statutes 2000, sections 
  1.14            508.09; 508.16, subdivision 1; 508.421, by adding a 
  1.15            subdivision; 508.82, subdivision 1; 508A.01, 
  1.16            subdivision 2; 508A.08; 508A.09; 508A.10; 508A.11, 
  1.17            subdivisions 1 and 2; 508A.17, subdivision 1; 508A.22, 
  1.18            subdivisions 1 and 3; 508A.25; 508A.35; 508A.351, by 
  1.19            adding subdivisions; 508A.421, by adding a 
  1.20            subdivision; 508A.82, subdivision 1; 508A.85, 
  1.21            subdivision 4; 515B.1-116; 515B.3-104; 515B.3-117; and 
  1.22            541.023, subdivisions 1, 2, 4, 6, 7, and by adding a 
  1.23            subdivision; proposing coding for new law in Minnesota 
  1.24            Statutes, chapters 507; 508; and 508A; repealing 
  1.25            Minnesota Statutes 2000, sections 508.71, subdivision 
  1.26            7; 508A.22, subdivision 2; 508A.27; and 508A.351, 
  1.27            subdivision 1. 
  1.28  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.29     Section 1.  [507.47] [CREATION OF SERVITUDES BY COMMON 
  1.30  OWNER.] 
  1.31     An easement, condition, restriction, or other servitude 
  1.32  that is imposed on real property by a recorded instrument and is 
  1.33  not in violation of law or public policy, is valid 
  1.34  notwithstanding the common ownership, when the easement, 
  1.35  condition, restriction, or other servitude is imposed, of any of 
  1.36  the real property burdened or benefited by the easement, 
  2.1   condition, restriction, or other servitude.  A conveyance of all 
  2.2   or any portion of the real property shall include the benefits 
  2.3   and burdens of all easements, conditions, restrictions, or other 
  2.4   servitudes validated under this section, except as provided by 
  2.5   sections 500.20 and 541.023.  The common law doctrine of merger, 
  2.6   and not this section, shall apply whenever, after ownership of 
  2.7   any of the real property was severed, all of the real property 
  2.8   burdened or benefited by an easement, condition, restriction, or 
  2.9   other servitude again is owned by a common owner. 
  2.10     Sec. 2.  Minnesota Statutes 2000, section 508.09, is 
  2.11  amended to read: 
  2.12     508.09 [AMENDMENT.] 
  2.13     Amendments to the application, including joinder, 
  2.14  substitution, or discontinuance as to parties, may be allowed by 
  2.15  the court at any time upon terms that are just and reasonable, 
  2.16  but all amendments shall be in writing and signed and verified 
  2.17  like the original application.  A person who acquires the 
  2.18  original applicant's estate in all or part of the land by 
  2.19  voluntary instrument from the original applicant may be 
  2.20  substituted for the applicant as to the land acquired by 
  2.21  executing and filing an amendment without payment of the fees 
  2.22  specified in section 357.021, subdivision 2, clause (1). 
  2.23     Sec. 3.  Minnesota Statutes 2000, section 508.16, 
  2.24  subdivision 1, is amended to read: 
  2.25     Subdivision 1.  [SUBSCRIBED BY ADMINISTRATOR; COPIES.] The 
  2.26  summons shall be subscribed by the court administrator, directed 
  2.27  to the defendants, and require them to appear and answer the 
  2.28  application of the applicant, within 20 days after the service 
  2.29  of the summons, exclusive of the day of such service.  It shall 
  2.30  be served in the manner as provided by law for the service of a 
  2.31  summons in civil actions in the district court, except as herein 
  2.32  otherwise provided.  It shall be served upon the state by 
  2.33  delivering a copy thereof to the attorney general, a deputy 
  2.34  attorney general or an assistant attorney general who shall 
  2.35  transmit the same.  The attorney general shall represent the 
  2.36  state in such proceedings.  In those cases where the attorney 
  3.1   general deems it appropriate, the attorney general may transmit 
  3.2   the matter to the county attorney of the county in which the 
  3.3   land described therein is situated, and thereupon such county 
  3.4   attorney shall appear in such proceeding, and represent the 
  3.5   state therein.  It shall be served upon a domestic corporation 
  3.6   governed by chapter 302A whose charter has terminated by 
  3.7   dissolution, expiration, or otherwise, by delivering a copy of 
  3.8   it to a person, known to the applicant, who held office in the 
  3.9   corporation at the time of dissolution and can be found in the 
  3.10  state or, if no officer known to the applicant can be found in 
  3.11  the state, by publishing the summons in a newspaper printed and 
  3.12  published in the county where the application is filed, once 
  3.13  each week for three consecutive weeks.  It shall be served upon 
  3.14  all persons not personally served who are not residents of the 
  3.15  state or who cannot be found therein, and upon domestic 
  3.16  corporations not governed by chapter 302A whose charter has 
  3.17  terminated by dissolution, expiration, or otherwise more than 
  3.18  three years prior to the commencement of the action, and upon 
  3.19  unknown successors in interests of such corporations, and upon 
  3.20  "all other persons or parties unknown claiming any right, title, 
  3.21  estate, lien, or interest in the real estate described in the 
  3.22  application herein" by publishing the same in a newspaper 
  3.23  printed and published in the county wherein the application is 
  3.24  filed, once each week for three consecutive weeks; provided, if 
  3.25  the order for summons or a supplemental order of the court, 
  3.26  filed before, during or after the publication of the summons, 
  3.27  shall so direct, the summons may be personally served without 
  3.28  the state upon any one or more of the defendants who are 
  3.29  nonresidents of the state or who cannot be found therein, in 
  3.30  like manner and with like effect as such service in a summons in 
  3.31  a civil action in the district court; and provided further, that 
  3.32  any nonresident defendant, natural or corporate, who can be 
  3.33  found in the state of Minnesota and can be personally served 
  3.34  therein, may be served personally.  The court administrator 
  3.35  shall also, at least 20 days before the entry of the decree 
  3.36  which shall be entered in the matter, send a copy of the summons 
  4.1   by mail to all defendants not served personally who are not 
  4.2   residents of the state, and whose place of address is known to 
  4.3   applicant or stated in the application, or in the order 
  4.4   directing the issuance of the summons.  The certificate of the 
  4.5   court administrator that the court administrator has mailed the 
  4.6   summons, as herein provided, shall be conclusive evidence 
  4.7   thereof.  Other or further notice of the application for 
  4.8   registration may be given in such manner and to such persons as 
  4.9   the court or any judge thereof may direct.  The summons shall be 
  4.10  served at the expense of the applicant and proof of the service 
  4.11  shall be made in the same manner as in civil actions.  The 
  4.12  summons shall be substantially in the following form: 
  4.13          SUMMONS IN APPLICATION FOR REGISTRATION OF LAND 
  4.14     State of Minnesota 
  4.15                                ss. 
  4.16     County of ........ 
  4.17     District Court ...... Judicial District. 
  4.18     In the matter of the application of (name of applicant) to 
  4.19  register the title to the following described real estate 
  4.20  situated in ............. county, Minnesota, namely:  
  4.21  (description of land) .................. 
  4.22     Applicant, 
  4.23                                 vs 
  4.24     (names of defendants) and "all other persons or parties 
  4.25  unknown claiming any right, title, estate, lien or interest in 
  4.26  the real estate described in the application herein." 
  4.27     Defendants. 
  4.28       THE STATE OF MINNESOTA TO THE ABOVE NAMED DEFENDANTS: 
  4.29     You are hereby summoned and required to answer the 
  4.30  application of the applicant in the above entitled proceeding 
  4.31  and to file your answer to the said application in the office of 
  4.32  the court administrator of said court, in said county, within 20 
  4.33  days after service of this summons upon you exclusive of the day 
  4.34  of such service, and, if you fail to answer the application 
  4.35  within the time aforesaid, the applicant in this proceeding will 
  4.36  apply to the court for the relief demanded therein. 
  5.1      Witness ........ court administrator of said court, and the 
  5.2   seal thereof, at .........., in said county, this ........ day 
  5.3   of .........., ..... 
  5.4      (Seal) 
  5.5    
  5.6                                         .........................
  5.7                                            Court administrator
  5.8      Sec. 4.  [508.351] [CONDOMINIUM CERTIFICATE.] 
  5.9      Subdivision 1.  [DECLARATION.] Prior to filing with the 
  5.10  registrar of titles of a declaration or bylaws for a 
  5.11  condominium, or an amendment to the declaration or bylaws, a 
  5.12  determination shall be made by an order of court in a proceeding 
  5.13  subsequent to initial registration or by a written directive of 
  5.14  the examiner of titles that the documents comply with the 
  5.15  requirements of the applicable condominium statute. 
  5.16     Subd. 2.  [FORM OF COMMON ELEMENTS CERTIFICATE OF 
  5.17  TITLE.] Upon the filing of a declaration creating a condominium, 
  5.18  the registrar shall issue a certificate of title, designated as 
  5.19  a "common elements certificate of title," ("CECT").  It shall be 
  5.20  in substantially the following form: 
  5.21           COMMON ELEMENTS CERTIFICATE OF TITLE (CECT)
  5.22     This is the Common Elements Certificate of Title for 
  5.23  Condominium CIC No. ....... 
  5.24  State of Minnesota     )
  5.25                         ) SS.
  5.26  County of .............)
  5.27     This is to certify that the common elements in condominium 
  5.28  CIC No. ....... are subject to the encumbrances, liens, and 
  5.29  interests noted by the memorials set forth as follows: 
  5.30     
  5.31     
  5.32     
  5.33     In witness whereof, I have hereunto subscribed my name and 
  5.34  affixed the seal of my office, this ....... day of ......., .....
  5.35                               ....................
  5.36                               Registrar of Titles, in and for the
  6.1                                County of..................... and
  6.2                                State of Minnesota
  6.3      Subd. 3.  [TRACT INDEX.] CECTs shall be maintained in the 
  6.4   same manner as provided for certificates of title and shall be 
  6.5   indexed in the tract index as provided in section 508.37, 
  6.6   subdivision 1a.  The names of the owners in the tract index 
  6.7   shall be "unit owners."  The description of the registered land 
  6.8   in the tract index shall be "common elements" or "CECT."  
  6.9      Subd. 4.  [UNIT CERTIFICATES.] Certificates of title issued 
  6.10  for the units described in the declaration shall contain, 
  6.11  immediately following the description of the Unit, a statement 
  6.12  in substantially the following form:  "Subject to encumbrances, 
  6.13  liens, and interests noted on CECT No. ......." 
  6.14     Subd. 5.  [MEMORIALS.] The condominium declaration, bylaws, 
  6.15  any amendment to the declaration or bylaws; any lien against the 
  6.16  common elements pursuant to chapter 514; any fixture filing 
  6.17  pursuant to section 336.9-314 where the financing statement 
  6.18  describes the common elements; any easement on the common 
  6.19  elements pursuant to section 515B.3-102, subsection (a)(9); any 
  6.20  instrument evidencing the transfer of a special declarant right 
  6.21  pursuant to section 515B.3-104; and any conveyance or 
  6.22  encumbrance of the common elements pursuant to section 
  6.23  515B.3-112 shall be entered as memorials on the CECT only. 
  6.24     Subd. 6.  [PREEXISTING CONDOMINIUMS.] In the case of a 
  6.25  condominium existing prior to August 1, 2001, on registered 
  6.26  land, for which no CECT has been issued, upon the filing of a 
  6.27  document of the kind specified in subdivision 5, the registrar 
  6.28  shall issue a CECT, but documents filed prior to the issuance of 
  6.29  the CECT need not be entered as memorials on the CECT.  The 
  6.30  registrar for no additional fee shall mark by the land 
  6.31  description on the certificate of title for each of the units in 
  6.32  the condominium a statement in substantially the following 
  6.33  form:  "subject to encumbrances, liens, and interests noted in 
  6.34  CECT No. ......." and in future certificates for each unit in 
  6.35  the condominium, insert immediately following the description of 
  6.36  the unit, a statement in substantially the following form:  
  7.1   "subject to encumbrances, liens, and interests noted on CECT No. 
  7.2   ......." 
  7.3      Sec. 5.  Minnesota Statutes 2000, section 508.421, is 
  7.4   amended by adding a subdivision to read:  
  7.5      Subd. 1a.  [REISSUANCE.] The owner of registered land may 
  7.6   request the registrar of titles to issue a new certificate of 
  7.7   title free from the memorials of all interests which have 
  7.8   terminated. 
  7.9      Sec. 6.  Minnesota Statutes 2000, section 508.82, 
  7.10  subdivision 1, is amended to read: 
  7.11     Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
  7.12  to the registrar shall be as follows: 
  7.13     (1) of the fees provided herein, five percent of the fees 
  7.14  collected under clauses (3), (4), (5), (10) (11), (12) (13), 
  7.15  (14), (15), and (16), and (17), for filing or memorializing 
  7.16  shall be paid to the state treasurer and credited to the general 
  7.17  fund; plus a $4.50 surcharge shall be charged and collected in 
  7.18  addition to the total fees charged for each transaction under 
  7.19  clauses (2) to (5), (10), (12), and (16), (3), (5), (11), (13), 
  7.20  (14), (16), and (17), with 50 cents of this surcharge to be 
  7.21  retained by the county to cover its administrative costs and $4 
  7.22  to be paid to the state treasury and credited to the general 
  7.23  fund; 
  7.24     (2) for registering a first certificate of title, including 
  7.25  issuing a copy of it, $30; 
  7.26     (3) for registering each instrument transferring the fee 
  7.27  simple title for which a new certificate of title is issued and 
  7.28  for the registration of the new certificate of title, including 
  7.29  a copy of it, $30; 
  7.30     (4) for issuance of a CECT pursuant to section 508.351, 
  7.31  $15; 
  7.32     (5) for the entry of each memorial on a certificate, $15; 
  7.33     (5) (6) for issuing each residue certificate, $20; 
  7.34     (6) (7) for exchange certificates, $10 for each certificate 
  7.35  canceled and $10 for each new certificate issued; 
  7.36     (7) (8) for each certificate showing condition of the 
  8.1   register, $10; 
  8.2      (8) (9) for any certified copy of any instrument or writing 
  8.3   on file in the registrar's office, the same fees allowed by law 
  8.4   to county recorders for like services; 
  8.5      (9) (10) for a noncertified copy of any certificate of 
  8.6   title, other than the copies issued under clauses (2) and (3), 
  8.7   any instrument or writing on file in the office of the registrar 
  8.8   of titles, or any specified page or part of it, an amount as 
  8.9   determined by the county board for each page or fraction of a 
  8.10  page specified.  If computer or microfilm printers are used to 
  8.11  reproduce the instrument or writing, a like amount per image; 
  8.12     (10) (11) for filing two copies of any plat in the office 
  8.13  of the registrar, $30; 
  8.14     (11) (12) for any other service under this chapter, such 
  8.15  fee as the court shall determine; 
  8.16     (12) (13) for filing an amendment to a declaration in 
  8.17  accordance with chapter 515, $10 for each certificate upon which 
  8.18  the document is registered and $30 for an amended floor plan 
  8.19  filed in accordance with chapter 515; 
  8.20     (13) (14) for filing an amendment to a condominium 
  8.21  declaration or plat in accordance with chapter 515A, or a common 
  8.22  interest community declaration and plat or amendment complying 
  8.23  with section 515B.2-110, subsection (c), $10 for each 
  8.24  certificate upon which the document is registered and $30 for 
  8.25  the filing of the condominium or common interest community plat 
  8.26  or amendment; 
  8.27     (14) (15) for a copy of a condominium floor plan filed in 
  8.28  accordance with chapter 515, a copy of a condominium plat filed 
  8.29  in accordance with chapter 515A, or a copy of a common interest 
  8.30  community plat complying with section 515B.2-110, subsection 
  8.31  (c), the fee shall be $1 for each page of the floor plan, 
  8.32  condominium plat, or common interest community plat with a 
  8.33  minimum fee of $10; 
  8.34     (15) (16) for the filing of a certified copy of a plat of 
  8.35  the survey pursuant to section 508.23 or 508.671, $10; 
  8.36     (16) (17) for filing a registered land survey in triplicate 
  9.1   in accordance with section 508.47, subdivision 4, $30; 
  9.2      (17) (18) for furnishing a certified copy of a registered 
  9.3   land survey in accordance with section 508.47, subdivision 4, 
  9.4   $10. 
  9.5      Sec. 7.  Minnesota Statutes 2000, section 508A.01, 
  9.6   subdivision 2, is amended to read: 
  9.7      Subd. 2.  [PURPOSE.] The purpose of sections 508A.01 to 
  9.8   508A.85 is to provide a voluntary procedure for registration of 
  9.9   certain possessory estates in land with certainty, at reasonable 
  9.10  cost and speed, and without the necessity for the initial 
  9.11  adjudication required by chapter 508, and to provide for initial 
  9.12  registration of land under a certificate of possessory title 
  9.13  ("CPT").  Upon the expiration of five years from the date of the 
  9.14  examiner's supplemental directive is filed on the first CPT, the 
  9.15  registrar of titles shall cancel the CPT and issue a certificate 
  9.16  of title as provided in section 508A.85, subdivisions 2 and 3.  
  9.17     Sec. 8.  Minnesota Statutes 2000, section 508A.08, is 
  9.18  amended to read: 
  9.19     508A.08 [LANDS INCLUDED IN APPLICATION; CONTENTS.] 
  9.20     Subdivision 1.  [ADJACENT LAND; COMMON OWNER.] Any number 
  9.21  of adjoining tracts of land in the same county and owned by the 
  9.22  same person and in the same right, or any number of tracts of 
  9.23  land in the same county having the same chain of title, and 
  9.24  belonging to the same person may be included in one 
  9.25  application.  When approved by the examiner of titles on 
  9.26  petition of the applicant or applicants, nonadjoining tracts of 
  9.27  land owned by the same person or persons in the same right 
  9.28  having different chains of title may be included in one 
  9.29  application.  
  9.30     Subd. 2.  [ADJACENT LAND; DIFFERENT OWNERS.] When approved 
  9.31  by the examiner of titles, owners of two or more adjacent tracts 
  9.32  of land in the same county may join in one application to 
  9.33  register the title to their individual tracts.  The application 
  9.34  must list separately all of the information required by section 
  9.35  508A.06 for the owner or owners of each of the tracts included 
  9.36  in the application. 
 10.1      Sec. 9.  Minnesota Statutes 2000, section 508A.09, is 
 10.2   amended to read: 
 10.3      508A.09 [AMENDMENT.] 
 10.4      Amendments to the application may be allowed by the 
 10.5   examiner of titles at any time upon terms that are just and 
 10.6   reasonable, but all amendments shall be in writing and signed 
 10.7   and verified like the original application.  A person who 
 10.8   acquires the original applicant's estate in all or part of the 
 10.9   land by voluntary instrument from the original applicant may be 
 10.10  substituted for the applicant as to the land acquired by 
 10.11  executing an amendment. 
 10.12     Sec. 10.  Minnesota Statutes 2000, section 508A.10, is 
 10.13  amended to read: 
 10.14     508A.10 [APPLICATION TO EXAMINER; POWERS OF EXAMINER.] 
 10.15     An application for registration for a CPT shall be 
 10.16  addressed to the examiner of titles in and for the county in 
 10.17  which the land described is situated.  The examiner shall have 
 10.18  the powers provided in sections 508A.01 to 508A.85 including but 
 10.19  not limited to the following:  
 10.20     (1) To approve all applications prior to filing of record; 
 10.21     (2) To require an abstract of title with searches and 
 10.22  recertifications as desired; 
 10.23     (3) To require that mailed notice be given to the holders 
 10.24  of any interest, when their addresses are known; 
 10.25     (4) To issue examiner's reports, supplemental reports, and 
 10.26  initial directives, and supplemental directives to the registrar 
 10.27  regarding initial CPTs or memorials upon any CPT pursuant to 
 10.28  section 508A.71; 
 10.29     (5) To require the county surveyor to review the proposed 
 10.30  legal description of any CPT or to inspect the real property; 
 10.31     (6) To suspend any proceeding hereunder upon receipt of any 
 10.32  valid written objections by persons claiming an interest in the 
 10.33  real property; and 
 10.34     (7) To require proceedings subsequent to the initial CPT as 
 10.35  may be necessary to achieve the purposes of sections 508A.01 to 
 10.36  508A.85, or to certify instruments transferring title pursuant 
 11.1   to sections 508A.59, 508A.62, and 508A.69. 
 11.2      Sec. 11.  Minnesota Statutes 2000, section 508A.11, 
 11.3   subdivision 1, is amended to read: 
 11.4      Subdivision 1.  [APPLICATION FILED WITH COUNTY RECORDER.] A 
 11.5   certified copy of the application shall be delivered to the 
 11.6   examiner of titles.  After approval by the examiner of titles, 
 11.7   the application for a CPT shall be filed for record in the 
 11.8   office of the county recorder, and shall be notice forever to 
 11.9   all purchasers and encumbrancers of the pendency of the 
 11.10  registration and of all matters referred to in the files and 
 11.11  records of the examiner of titles and of the registrar of titles 
 11.12  pertaining to the registration.  The applicant shall deliver a 
 11.13  certified copy of the recorded application to the examiner of 
 11.14  titles. 
 11.15     Sec. 12.  Minnesota Statutes 2000, section 508A.11, 
 11.16  subdivision 2, is amended to read: 
 11.17     Subd. 2.  [ABSTRACT SUPPLIED.] The applicant shall deliver 
 11.18  to the examiner of titles an abstract of title certified or 
 11.19  recertified in a manner satisfactory to the examiner of titles 
 11.20  shall be delivered to the examiner.  In the event the examiner 
 11.21  refuses to direct the issuance of a CPT, the abstract shall be 
 11.22  returned.  Otherwise, the abstract shall be returned to the 
 11.23  applicant only at the time and under the conditions as the 
 11.24  examiner shall determine.  
 11.25     Sec. 13.  Minnesota Statutes 2000, section 508A.17, 
 11.26  subdivision 1, is amended to read: 
 11.27     Subdivision 1.  [LIMITATION.] As against a title to land 
 11.28  registered under a CPT which has been entered and maintained by 
 11.29  the registrar under sections 508A.01 to 508A.85, no action 
 11.30  affecting the possession or title to the land shall be commenced 
 11.31  by any person, partnership, corporation, state, or political 
 11.32  subdivision to enforce any right, title, estate, lien, or 
 11.33  interest founded upon any instrument, event, or transaction 
 11.34  which was executed or occurred before the entry of the first CPT 
 11.35  and which is not set out as a separate memorial on the CPT or 
 11.36  covered by section 508A.25, clauses (1) to (5) and (8) (7) 
 12.1   unless the action is commenced and a notice of lis pendens of it 
 12.2   is registered upon the CPT within a period of five years from 
 12.3   the date the examiner's supplemental directive is filed on of 
 12.4   the first CPT.  
 12.5      Sec. 14.  Minnesota Statutes 2000, section 508A.22, 
 12.6   subdivision 1, is amended to read: 
 12.7      Subdivision 1.  [DIRECTIVE.] The examiner of titles, upon 
 12.8   being satisfied that the applicant is entitled to a CPT, but not 
 12.9   earlier than 20 days from the date of mailing of the notice 
 12.10  required by section 508A.13, shall issue a written directive to 
 12.11  the registrar of titles directing that the first CPT be issued 
 12.12  and entered in the name of the applicant, subject only to the 
 12.13  following:  (a) the exceptions set out in section 508A.25; 
 12.14  (b) separate memorials showing all outstanding rights, titles, 
 12.15  estates, liens, and interests set forth in the examiner's report 
 12.16  and any additional liens, encumbrances, or other interests 
 12.17  affecting the land, arising after the filing of the application; 
 12.18  and (c) a memorial of the examiner's directive which shall state 
 12.19  that the land described in the directive is subject to the 
 12.20  rights of persons in possession, if any, and any rights which 
 12.21  would be disclosed by a survey except as such rights are limited 
 12.22  by section 508A.02, subdivision 1.  The examiner's directive 
 12.23  shall contain an accurate description of the land and shall set 
 12.24  forth the address of the applicant and, if the applicant be is 
 12.25  an individual, whether the applicant is 18 years of age or 
 12.26  older, and whether married or unmarried, and if married, the 
 12.27  name of the spouse; if the applicant is under any legal 
 12.28  incapacity, the nature of it shall be stated.  The examiner 
 12.29  shall deliver the abstract of title to the registrar of titles 
 12.30  who shall retain it, but it shall not be entered as a memorial 
 12.31  on the CPT.  From the date of filing the examiner's directive 
 12.32  with the registrar of titles, all instruments affecting title to 
 12.33  the land which are registered shall be filed in the office of 
 12.34  the registrar of titles and be memorialized upon the CPT. 
 12.35     Sec. 15.  Minnesota Statutes 2000, section 508A.22, 
 12.36  subdivision 3, is amended to read: 
 13.1      Subd. 3.  [FEES.] Upon the filing with the registrar of 
 13.2   titles of the examiner's directive pursuant to subdivision 1, 
 13.3   there shall be paid to the registrar:  (1) the fee provided by 
 13.4   section 508A.82, clause (2), for registering a first CPT, and 
 13.5   (2) the fee provided by section 508.74, which shall be paid to 
 13.6   the state treasurer pursuant to section 508.75.  Upon filing 
 13.7   with the registrar of titles the supplemental directive of the 
 13.8   examiner, there shall be paid to the registrar of titles the fee 
 13.9   for the entry of a memorial pursuant to section 508A.82, clause 
 13.10  (4).  
 13.11     Sec. 16.  Minnesota Statutes 2000, section 508A.25, is 
 13.12  amended to read: 
 13.13     508A.25 [RIGHTS OF PERSON HOLDING CPT.] 
 13.14     Every person holding a CPT issued pursuant to sections 
 13.15  508A.01 to 508A.85 who has acquired title in good faith and for 
 13.16  a valuable consideration shall hold the same free from all 
 13.17  encumbrances and adverse claims, excepting only estates, 
 13.18  mortgages, liens, charges, and interests as may be noted by 
 13.19  separate memorials in the latest CPT in the office of the 
 13.20  registrar, and also excepting the memorial provided in section 
 13.21  508A.351 and any of the following rights or encumbrances 
 13.22  subsisting against the same, if any:  
 13.23     (1) liens, claims, or rights arising or existing under the 
 13.24  laws or the constitution of the United States, which this state 
 13.25  cannot require to appear of record; 
 13.26     (2) the lien of any real property tax or special 
 13.27  assessment; 
 13.28     (3) any lease for a period not exceeding three years when 
 13.29  there is actual occupation of the premises under it; 
 13.30     (4) all rights in public highways upon the land; 
 13.31     (5) the rights of any person in possession under deed or 
 13.32  contract for deed from the owner of the CPT; 
 13.33     (6) any liens, encumbrances, and other interests that may 
 13.34  be contained in the examiner's supplemental directive issued 
 13.35  pursuant to section 508A.22, subdivision 2; 
 13.36     (7) any claims that may be made pursuant to section 508A.17 
 14.1   within five years from the date the examiner's supplemental 
 14.2   directive is filed on of the first CPT; and 
 14.3      (8) (7) any outstanding mechanics lien rights which may 
 14.4   exist under sections 514.01 to 514.17.  
 14.5      No existing or future lien for state taxes arising under 
 14.6   the laws of this state for the nonpayment of any amounts due 
 14.7   under chapter 268 or any tax administered by the commissioner of 
 14.8   revenue may encumber title to lands registered under this 
 14.9   chapter unless filed under the terms of this chapter. 
 14.10     Sec. 17.  Minnesota Statutes 2000, section 508A.35, is 
 14.11  amended to read: 
 14.12     508A.35 [FORMS OF CPT.] 
 14.13     The CPT shall contain the name and residence of the owner, 
 14.14  a description of the land and of the estate of the owner, and 
 14.15  shall by memorial contain a description of all encumbrances, 
 14.16  liens, and interests known to the owner to which the estate of 
 14.17  the owner is subject.  It shall state whether the owner is 18 
 14.18  years of age or older and if under any legal incapacity, the 
 14.19  nature of it.  It shall also state whether or not the owner is 
 14.20  married and if married, the name of the spouse.  In case the 
 14.21  land is held in trust or subject to any condition or limitation, 
 14.22  it shall state the nature and character of it.  It shall be in 
 14.23  substantially the following form:  
 14.24               CERTIFICATE OF POSSESSORY TITLE (CPT) 
 14.25     First Certificate of Possessory Title, pursuant to the 
 14.26  Directive of the Examiner of Titles, County of ..........., and 
 14.27  State of Minnesota, date .................., ..... 
 14.28                  Registration of Possessory Title 
 14.29  State of Minnesota       )
 14.30                           )ss
 14.31  County of ...............)
 14.32     This is to certify that ........................, of the 
 14.33  .................. of ................ County of ............., 
 14.34  and State of ......................, is now the owner of a fee 
 14.35  simple estate of and in the following described land situation 
 14.36  in the county of ....... and state of Minnesota, 
 15.1   ........................................  Subject to the 
 15.2   encumbrances, liens, and interests noted by the memorial 
 15.3   underwritten or endorsed hereon; and subject to the following 
 15.4   rights or encumbrances subsisting, namely: 
 15.5      (1) Liens, claims, or rights arising under the laws of or 
 15.6   the Constitution of the United States, which the statutes of 
 15.7   this state cannot require to appear of record; 
 15.8      (2) Any real property tax or special assessment; 
 15.9      (3) Any lease for a period not exceeding three years, when 
 15.10  there is actual occupation of the premises under the lease; 
 15.11     (4) All rights in public highways upon the land; 
 15.12     (5) The rights, titles, estates, liens, and interests of 
 15.13  any person who has acquired an interest set forth in the 
 15.14  Examiner's Supplemental Directive issued pursuant to section 
 15.15  508A.22, subdivision 2; 
 15.16     (6) The rights of any person in possession under deed or 
 15.17  contract for deed from the owner of the CPT; 
 15.18     (7) (6) Any claims that may be made pursuant to section 
 15.19  508A.17 within five years from the date the Examiner's 
 15.20  Supplemental Directive is filed on of the first CPT; and 
 15.21     (8) (7) Any outstanding mechanics lien rights which may 
 15.22  exist under sections 514.01 to 514.17.  
 15.23     In witness whereof, I have hereunto subscribed my name and 
 15.24  affixed the seal of my office, this ............ day of 
 15.25  ...................., ..... 
 15.26  ...................................
 15.27                            Registrar of Titles, in and for the
 15.28                            County of ..................... and
 15.29                            State of Minnesota.  
 15.30     All CPTs issued subsequent to the first shall be in like 
 15.31  form except that they shall be entitled "Transfer from number 
 15.32  (here give the number of the next previous CPT relating to the 
 15.33  same land)," and shall also contain the words "Originally 
 15.34  registered (date, volume, and page of registration)."  
 15.35     CPTs shall be indexed and maintained in the same manner as 
 15.36  provided for certificates of title under chapter 508.  
 16.1      Sec. 18.  Minnesota Statutes 2000, section 508A.351, is 
 16.2   amended by adding a subdivision to read: 
 16.3      Subd. 1a.  [DECLARATION.] Prior to filing with the 
 16.4   registrar of titles of a declaration or bylaws for a 
 16.5   condominium, or an amendment to the declaration or bylaws, a 
 16.6   determination shall be made by an order of court in a proceeding 
 16.7   subsequent to initial registration or by a written directive of 
 16.8   the examiner of titles that the documents comply with the 
 16.9   requirements of the applicable condominium statute. 
 16.10     Sec. 19.  Minnesota Statutes 2000, section 508A.351, is 
 16.11  amended by adding a subdivision to read: 
 16.12     Subd. 2a.  [FORM OF COMMON ELEMENTS CERTIFICATE OF 
 16.13  TITLE.] Upon the filing of a declaration creating a condominium, 
 16.14  the registrar shall issue a certificate of title, designated as 
 16.15  a "common elements certificate of title," ("CECT").  It shall be 
 16.16  in substantially the following form: 
 16.17            COMMON ELEMENTS CERTIFICATE OF TITLE (CECT)
 16.18     This is the Common Elements Certificate of Title for 
 16.19  Condominium CIC No. ........... 
 16.20  State of Minnesota      )
 16.21                          ) SS.
 16.22  County of ..............)
 16.23     This is to certify that the common elements in condominium 
 16.24  CIC No. ....... are subject to the encumbrances, liens, and 
 16.25  interests noted by the memorials set forth as follows: 
 16.26     
 16.27     
 16.28     
 16.29     In witness whereof, I have here unto subscribed my name and 
 16.30  affixed the seal of my office, this ....... day of ......., .....
 16.31                              ...................
 16.32                              Registrar of Titles, in and for the 
 16.33                              County of ............ 
 16.34                              and State of Minnesota
 16.35     Sec. 20.  Minnesota Statutes 2000, section 508A.351, is 
 16.36  amended by adding a subdivision to read: 
 17.1      Subd. 3.  [TRACT INDEX.] CECTs shall be maintained in the 
 17.2   same manner as provided for certificates of title under chapter 
 17.3   508 and shall be indexed in the tract index as provided in 
 17.4   section 508.37, subdivision 1a.  The names of the owners in the 
 17.5   tract index shall be "unit owners."  The description of the 
 17.6   registered land in the tract index shall be "common elements" or 
 17.7   "CECT." 
 17.8      Sec. 21.  Minnesota Statutes 2000, section 508A.351, is 
 17.9   amended by adding a subdivision to read: 
 17.10     Subd. 4.  [UNIT CERTIFICATES.] CPTs issued for the units 
 17.11  described in the declaration shall contain, immediately 
 17.12  following the description of the unit, a statement in 
 17.13  substantially the following form:  "Subject to encumbrances, 
 17.14  liens, and interests noted on CECT No. ......." 
 17.15     Sec. 22.  Minnesota Statutes 2000, section 508A.351, is 
 17.16  amended by adding a subdivision to read: 
 17.17     Subd. 5.  [MEMORIALS.] The condominium declaration, bylaws, 
 17.18  any amendment to the declaration or bylaws; any lien against the 
 17.19  common elements pursuant to chapter 514; any fixture filings 
 17.20  pursuant to section 336.9-314 where the financing statement 
 17.21  describes the common elements; any easement on the common 
 17.22  elements pursuant to section 515B.3-102, subsection (a)(9); any 
 17.23  instrument evidencing the transfer of a special declarant right 
 17.24  pursuant to section 515B.3-104; and any conveyance or 
 17.25  encumbrance of the common elements pursuant to section 
 17.26  515B.3-112 shall be entered as memorials on the CECT only. 
 17.27     Sec. 23.  Minnesota Statutes 2000, section 508A.351, is 
 17.28  amended by adding a subdivision to read: 
 17.29     Subd. 6.  [PREEXISTING CONDOMINIUMS.] In the case of a 
 17.30  condominium existing prior to August 1, 2001, on registered 
 17.31  land, for which no CECT has been issued, upon the filing of a 
 17.32  document of the kind specified in section 508.351, subdivision 
 17.33  4, the registrar shall issue a CECT, but documents filed prior 
 17.34  to the issuance of the CECT need not be entered as memorials on 
 17.35  the CECT.  The registrar for no additional fee shall mark by the 
 17.36  land description on the certificate of title for each of the 
 18.1   units in the condominium a statement in substantially the 
 18.2   following form:  "Subject to encumbrances, liens, and interests 
 18.3   noted in CECT No. ......." and in future certificates for each 
 18.4   unit in the condominium insert, immediately following the 
 18.5   description of the Unit, a statement in substantially the 
 18.6   following form:  "Subject to encumbrances, liens and interests 
 18.7   noted on CECT No.  ........" 
 18.8      Sec. 24.  Minnesota Statutes 2000, section 508A.421, is 
 18.9   amended by adding a subdivision to read: 
 18.10     Subd. 1a.  [REISSUANCE.] The owner of registered land may 
 18.11  request the registrar of titles to issue a new CPT free from the 
 18.12  memorials of all interests which have terminated. 
 18.13     Sec. 25.  [508A.422] [COMBINED CERTIFICATE.] 
 18.14     Subdivision 1.  [COMBINING CPT AND CERTIFICATE OF 
 18.15  TITLE.] The owner of registered land holding a CPT and a 
 18.16  certificate of title may request the registrar of titles to 
 18.17  issue a single certificate of title, to be known as a combined 
 18.18  certificate of title, for the lands described in the CPT and the 
 18.19  certificate of title.  The combined certificate of title shall 
 18.20  be in the form prescribed in section 508.35 and shall also 
 18.21  contain, following the statement required by section 508.35 
 18.22  regarding rights or encumbrances subsisting, a statement in 
 18.23  substantially the following form:  "This certificate of title is 
 18.24  also a CPT as to the lands described herein included in the 
 18.25  examiner's directive shown by memorial on this certificate of 
 18.26  title and those lands are subject to any claims that may be made 
 18.27  pursuant to section 508A.17 within five years from the date of 
 18.28  the first CPT." 
 18.29     Subd. 2.  [APPLICABLE STATUTE.] Chapter 508 shall apply to 
 18.30  the lands in the combined certificate of title which are 
 18.31  registered under that chapter or which have been integrated 
 18.32  pursuant to section 508A.85, subdivision 5.  This chapter 
 18.33  applies to the lands in the combined certificate of title which 
 18.34  are registered pursuant to this chapter and which have not been 
 18.35  integrated pursuant to section 508A.85, subdivision 5. 
 18.36     Sec. 26.  Minnesota Statutes 2000, section 508A.82, 
 19.1   subdivision 1, is amended to read: 
 19.2      Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
 19.3   to the registrar shall be as follows:  
 19.4      (1) of the fees provided herein, five percent of the fees 
 19.5   collected under clauses (3), (4), (10), (12), (14), and (16) 
 19.6   (5), (11), (13), (14), (15), and (17), for filing or 
 19.7   memorializing shall be paid to the state treasurer and credited 
 19.8   to the general fund; plus a $4.50 surcharge shall be charged and 
 19.9   collected in addition to the total fees charged for each 
 19.10  transaction under clauses (2) to (5), (10), (12), and (16), with 
 19.11  50 cents of this surcharge to be retained by the county to cover 
 19.12  its administrative costs and $4 to be paid to the state treasury 
 19.13  and credited to the general fund; 
 19.14     (2) for registering a first CPT, including issuing a copy 
 19.15  of it, $30; 
 19.16     (3) for registering each instrument transferring the fee 
 19.17  simple title for which a new CPT is issued and for the 
 19.18  registration of the new CPT, including a copy of it, $30; 
 19.19     (4) for issuance of a CECT pursuant to section 508A.351, 
 19.20  $15; 
 19.21     (5) for the entry of each memorial on a CPT, $15; 
 19.22     (5) (6) for issuing each residue CPT, $20; 
 19.23     (6) (7) for exchange CPTs or combined certificates of 
 19.24  title, $10 for each CPT and certificate of title canceled and 
 19.25  $10 for each new CPT or combined certificate of title issued; 
 19.26     (7) (8) for each CPT showing condition of the register, 
 19.27  $10; 
 19.28     (8) (9) for any certified copy of any instrument or writing 
 19.29  on file in the registrar's office, the same fees allowed by law 
 19.30  to county recorders for like services; 
 19.31     (9) (10) for a noncertified copy of any CPT, other than the 
 19.32  copies issued under clauses (2) and (3), any instrument or 
 19.33  writing on file in the office of the registrar of titles, or any 
 19.34  specified page or part of it, an amount as determined by the 
 19.35  county board for each page or fraction of a page specified.  If 
 19.36  computer or microfilm printers are used to reproduce the 
 20.1   instrument or writing, a like amount per image; 
 20.2      (10) (11) for filing two copies of any plat in the office 
 20.3   of the registrar, $30; 
 20.4      (11) (12) for any other service under sections 508A.01 to 
 20.5   508A.85, the fee the court shall determine; 
 20.6      (12) (13) for filing an amendment to a declaration in 
 20.7   accordance with chapter 515, $10 for each certificate upon which 
 20.8   the document is registered and $30 for an amended floor plan 
 20.9   filed in accordance with chapter 515; 
 20.10     (13) (14) for filing an amendment to a condominium 
 20.11  declaration or plat in accordance with chapter 515A, or a common 
 20.12  interest community declaration and plat or amendment complying 
 20.13  with section 515B.2-110, subsection (c) and issuing a CECT if 
 20.14  required, $10 for each certificate upon which the document is 
 20.15  registered and $30 for the filing of the condominium or common 
 20.16  interest community plat or amendment; 
 20.17     (14) (15) for a copy of a condominium floor plan filed in 
 20.18  accordance with chapter 515, a copy of a condominium plat filed 
 20.19  in accordance with chapter 515A, or a copy of a common interest 
 20.20  community plat complying with section 515B.2-110, subsection 
 20.21  (c), the fee shall be $1 for each page of the floor plan, 
 20.22  condominium plat, or common interest community plat with a 
 20.23  minimum fee of $10; 
 20.24     (15) (16) in counties in which the compensation of the 
 20.25  examiner of titles is paid in the same manner as the 
 20.26  compensation of other county employees, for each parcel of land 
 20.27  contained in the application for a CPT, as the number of parcels 
 20.28  is determined by the examiner, a fee which is reasonable and 
 20.29  which reflects the actual cost to the county, established by the 
 20.30  board of county commissioners of the county in which the land is 
 20.31  located; 
 20.32     (16) (17) for filing a registered land survey in triplicate 
 20.33  in accordance with section 508A.47, subdivision 4, $30; and 
 20.34     (17) (18) for furnishing a certified copy of a registered 
 20.35  land survey in accordance with section 508A.47, subdivision 4, 
 20.36  $10. 
 21.1      Sec. 27.  Minnesota Statutes 2000, section 508A.85, 
 21.2   subdivision 4, is amended to read: 
 21.3      Subd. 4.  [CHANGEOVER, MEMORIALS ON CERTIFICATE OF TITLE.] 
 21.4   Any certificate of title issued pursuant to this section shall 
 21.5   carry forward all memorials which still affect the land, except 
 21.6   for the memorial of the examiner's supplemental directive issued 
 21.7   pursuant to section 508A.22, subdivision 2.  It shall be made 
 21.8   subject to all statutory exceptions and be issued in the same 
 21.9   form as provided in section 508.35, except that, in lieu of 
 21.10  reciting that the certificate of title was issued pursuant to 
 21.11  the order of the district court, the certificate of title shall 
 21.12  recite that it was issued pursuant to the provisions of this 
 21.13  section and recite the date the certificate of title was issued 
 21.14  for the land involved.  The memorial of the examiner's directive 
 21.15  on the CPT pursuant to section 508A.351 508A.22 shall not be 
 21.16  removed without an order of the district court.  
 21.17     Sec. 28.  Minnesota Statutes 2000, section 515B.1-116, is 
 21.18  amended to read: 
 21.19     515B.1-116 [RECORDING.] 
 21.20     (a) A declaration, bylaws, any amendment to a declaration 
 21.21  or bylaws, and any other instrument affecting a common interest 
 21.22  community shall be entitled to be recorded.  In those counties 
 21.23  which have a tract index, the county recorder shall enter the 
 21.24  declaration in the tract index for each unit affected.  The 
 21.25  registrar of titles shall file the declaration on the 
 21.26  certificate of title for each unit affected in accordance with 
 21.27  section 508.351 or 508A.351. 
 21.28     (b) The recording officer shall upon request promptly 
 21.29  assign a number (CIC number) to a common interest community to 
 21.30  be formed or to a common interest community resulting from the 
 21.31  merger of two or more common interest communities. 
 21.32     (c) Documents recorded pursuant to this chapter shall in 
 21.33  the case of registered land be filed, and references to the 
 21.34  recording of documents shall mean filed in the case of 
 21.35  registered land. 
 21.36     (d) Subject to any specific requirements of this chapter, 
 22.1   if a recorded document relating to a common interest community 
 22.2   purports to require a certain vote or signatures approving any 
 22.3   restatement or amendment of the document by a certain number or 
 22.4   percentage of unit owners or secured parties, and if the 
 22.5   amendment or restatement is to be recorded pursuant to this 
 22.6   chapter, an affidavit of the president or secretary of the 
 22.7   association stating that the required vote or signatures have 
 22.8   been obtained shall be attached to the document to be recorded 
 22.9   and shall constitute prima facie evidence of the representations 
 22.10  contained therein. 
 22.11     (e) If a common interest community is located on registered 
 22.12  land, the recording fee for any document affecting two or more 
 22.13  units shall be the then-current fee for registering the document 
 22.14  on the certificates of title for the first ten affected 
 22.15  certificates and one-third of the then-current fee for each 
 22.16  additional affected certificate.  This provision shall not apply 
 22.17  to recording fees for deeds of conveyance, with the exception of 
 22.18  deeds given pursuant to sections 515B.2-119 and 515B.3-112. 
 22.19     (f) Except as permitted under this subsection, a recording 
 22.20  officer shall not file or record a declaration creating a new 
 22.21  common interest community, unless the county treasurer has 
 22.22  certified that the property taxes payable in the current year 
 22.23  for the real estate included in the proposed common interest 
 22.24  community have been paid.  This certification is in addition to 
 22.25  the certification for delinquent taxes required by section 
 22.26  272.12.  In the case of preexisting common interest communities, 
 22.27  the recording officer shall accept, file, and record the 
 22.28  following instruments, without requiring a certification as to 
 22.29  the current or delinquent taxes on any of the units in the 
 22.30  common interest community:  (i) a declaration subjecting the 
 22.31  common interest community to this chapter; (ii) a declaration 
 22.32  changing the form of a common interest community pursuant to 
 22.33  section 515B.2-123; or (iii) an amendment to or restatement of 
 22.34  the declaration, bylaws, or CIC plat.  In order for the 
 22.35  instruments to be accepted and recorded under the preceding 
 22.36  sentence, the assessor must certify or otherwise inform the 
 23.1   recording officer that, for taxes payable in the current year, 
 23.2   the assessor has allocated taxable values to each unit or has 
 23.3   separately assessed each unit. 
 23.4      (g) The registrar of titles shall not require the filing on 
 23.5   certificates of title previously issued for units in a flexible 
 23.6   common interest community of an amendment to a declaration 
 23.7   pursuant to section 515B.2-111 made solely to add additional 
 23.8   real estate. 
 23.9      (h) In the case of an amendment to a declaration or a 
 23.10  transfer of special declarant rights with respect to a common 
 23.11  interest community located on registered land, the registrar of 
 23.12  titles shall not require the surrender of the owner's duplicate 
 23.13  certificates of title to record the document, except for any 
 23.14  owner's duplicate certificates of title relating to additional 
 23.15  real estate being added by an amendment under section 515B.2-111.
 23.16     Sec. 29.  Minnesota Statutes 2000, section 515B.3-104, is 
 23.17  amended to read: 
 23.18     515B.3-104 [TRANSFER OF SPECIAL DECLARANT RIGHTS.] 
 23.19     (a) A special declarant right created or reserved under 
 23.20  this chapter may be voluntarily transferred only by a separate 
 23.21  instrument evidencing the transfer recorded in every county in 
 23.22  which any part of the common interest community is located.  The 
 23.23  separate instrument shall be recorded against all units in the 
 23.24  common interest community, or in the case of a cooperative, 
 23.25  against the real estate owned by the cooperative, or in the case 
 23.26  of a condominium on registered land, the instrument shall be 
 23.27  filed pursuant to section 508.351, subdivision 3, or 508A.351, 
 23.28  subdivision 3.  The instrument may provide for the conveyance of 
 23.29  less than all of the special declarant rights, and is not 
 23.30  effective unless executed by the transferor and transferee.  A 
 23.31  deed in lieu of foreclosure, or other conveyance arising out of 
 23.32  a foreclosure or cancellation, shall not be deemed a voluntary 
 23.33  transfer within the meaning of this section. 
 23.34     (b) Upon the voluntary transfer of any special declarant 
 23.35  right, the liability of a transferor declarant is as follows: 
 23.36     (1) A transferor is not relieved of any obligation or 
 24.1   liability arising before the transfer and remains liable for 
 24.2   warranty obligations imposed on the transferor by this chapter.  
 24.3   Lack of privity does not deprive any unit owner of standing to 
 24.4   maintain an action to enforce any obligation of the transferor. 
 24.5      (2) If a successor to any special declarant right is an 
 24.6   affiliate of a declarant, the transferor is jointly and 
 24.7   severally liable with the successor for any obligations or 
 24.8   liabilities of the successor relating to the common interest 
 24.9   community. 
 24.10     (3) If a transferor retains any special declarant rights, 
 24.11  but transfers other special declarant rights to a successor who 
 24.12  is not an affiliate of the declarant, the transferor is liable 
 24.13  for any obligations or liabilities imposed on a declarant by 
 24.14  this chapter or by the declaration relating to the retained 
 24.15  special declarant rights and arising before or after the 
 24.16  transfer. 
 24.17     (4) A transferor has no liability for any act or omission 
 24.18  or any breach of a contractual or warranty obligation arising 
 24.19  from the exercise of a special declarant right by a successor 
 24.20  declarant who is not an affiliate of the transferor. 
 24.21     (c) Upon the voluntary transfer of any special declarant 
 24.22  right, the liability of a successor declarant is as follows: 
 24.23     (1) A successor to any special declarant right who is an 
 24.24  affiliate of a declarant is subject to all obligations and 
 24.25  liabilities imposed on the transferor by this chapter or by the 
 24.26  declaration. 
 24.27     (2) A successor to any special declarant right who is not 
 24.28  an affiliate of a declarant is subject to all obligations and 
 24.29  liabilities imposed by this chapter or the declaration, except:  
 24.30  (i) misrepresentations by any previous declarant; (ii) warranty 
 24.31  obligations on improvements made by any previous declarant, or 
 24.32  made before the common interest community was created; (iii) 
 24.33  breach of any fiduciary obligation by any previous declarant or 
 24.34  the declarant's appointees to the board; (iv) any liability or 
 24.35  obligation imposed on the transferor as a result of the 
 24.36  transferor's acts or omissions after the transfer; and (v) any 
 25.1   liability arising out of a special declarant right which was not 
 25.2   transferred as provided in subsection (a). 
 25.3      (d) In case of foreclosure of a mortgage or cancellation of 
 25.4   a contract for deed or other security interest (or conveyance in 
 25.5   lieu thereof), sale by a trustee under an agreement creating a 
 25.6   security interest, tax sale, judicial sale, or sale under 
 25.7   bankruptcy code or receivership proceedings, of any units or 
 25.8   additional real estate, or interest therein, owned by a 
 25.9   declarant, a person acquiring title to the property or interests 
 25.10  succeeds to all special declarant rights related to the property 
 25.11  or interests held by that declarant and acquired by it unless (i)
 25.12  the mortgage instrument or other instrument creating the 
 25.13  security interest, (ii) the instrument conveying title or (iii) 
 25.14  a separate instrument signed by the person and recorded within 
 25.15  60 days after the person acquires title to the property or 
 25.16  interests, provides for transfer of less than all special 
 25.17  declarant rights.  The separate instrument need be recorded only 
 25.18  against the title to the units or interests other than those 
 25.19  being acquired under this subsection, or in the case of a 
 25.20  cooperative, against the real estate owned by the cooperative.  
 25.21  The declarant shall cease to have or exercise any special 
 25.22  declarant rights which are transferred.  If the person has 
 25.23  limited the transfer of certain special declarant rights as 
 25.24  provided in this subsection, then it and its successor's 
 25.25  liability shall be limited, as follows: 
 25.26     (1) If the person or its successor limits its rights and 
 25.27  liabilities only to maintain models, sales office and signs, and 
 25.28  if that party is not an affiliate of a declarant, it is not 
 25.29  subject to any liability or obligations as a declarant, except 
 25.30  the obligation to provide a disclosure statement and any 
 25.31  liability arising from that obligation, and it may not exercise 
 25.32  any other special declarant rights. 
 25.33     (2) If the person or its successor is not an affiliate of a 
 25.34  declarant, it may declare its intention in a recorded instrument 
 25.35  as provided in subsection (a) to acquire all special declarant 
 25.36  rights and hold those rights solely for transfer to another 
 26.1   person.  Thereafter, until the special declarant rights are 
 26.2   transferred to a person acquiring title to any unit owned by the 
 26.3   successor, or until a separate instrument is recorded permitting 
 26.4   exercise of all of those rights, that successor may not exercise 
 26.5   any of those rights other than the right to control the board of 
 26.6   directors in accordance with the provisions of section 
 26.7   515B.3-103 for the duration of any period of declarant control.  
 26.8   So long as any successor may not exercise its special declarant 
 26.9   rights under this subsection, it is not subject to any liability 
 26.10  or obligation as a declarant other than liability for its acts 
 26.11  and omissions under section 515B.3-103. 
 26.12     (e) Any attempted exercise by a purported successor to a 
 26.13  special declarant right which is not transferred as provided in 
 26.14  this section is void, and any purported successor attempting to 
 26.15  exercise that right shall be liable for any damages arising out 
 26.16  of its actions. 
 26.17     (f) Nothing in this section shall subject any successor to 
 26.18  a special declarant right to any claims against or other 
 26.19  obligations of a transferor declarant, other than claims and 
 26.20  obligations arising under this chapter, or the declaration or 
 26.21  bylaws. 
 26.22     Sec. 30.  Minnesota Statutes 2000, section 515B.3-117, is 
 26.23  amended to read: 
 26.24     515B.3-117 [OTHER LIENS.] 
 26.25     (a) Except in a cooperative and except as otherwise 
 26.26  provided in this chapter or in a security instrument, an 
 26.27  individual unit owner may have the unit owner's unit released 
 26.28  from a lien if the unit owner pays the lienholder the portion of 
 26.29  the amount which the lien secures that is attributable to the 
 26.30  unit.  Upon the receipt of payment, the lienholder shall 
 26.31  promptly deliver to the unit owner a recordable partial 
 26.32  satisfaction and release of lien releasing the unit from the 
 26.33  lien.  The release shall be deemed to include a release of any 
 26.34  rights in the common elements appurtenant to the unit.  The 
 26.35  portion of the amount which a lien secures that is attributable 
 26.36  to the unit shall be equal to the total amount which the lien 
 27.1   secures multiplied by a percentage calculated by dividing the 
 27.2   common expense liability attributable to the unit by the common 
 27.3   expense liability attributable to all units against which the 
 27.4   lien has been recorded, or in the case of a lien under 
 27.5   subsection (b), the units against which the lien is permitted or 
 27.6   required to be recorded.  At the request of a lien claimant or 
 27.7   unit owners, the association shall provide a written statement 
 27.8   of the percentage of common expense liability attributable to 
 27.9   all units.  After a unit owner's payment pursuant to this 
 27.10  section, the association may not assess the unit for any common 
 27.11  expense incurred thereafter in connection with the satisfaction 
 27.12  or defense against the lien. 
 27.13     (b) Labor performed or materials furnished for the 
 27.14  improvement of a unit shall be the basis for the recording of a 
 27.15  lien against that unit pursuant to the provisions of chapter 514 
 27.16  but shall not be the basis for the recording of a lien against 
 27.17  the common elements.  Labor performed or materials furnished for 
 27.18  the improvement of common elements, if duly authorized by the 
 27.19  association, shall be deemed to be performed or furnished with 
 27.20  the express consent of each unit owner, and shall be perfected 
 27.21  by recording a lien against all the units in the common interest 
 27.22  community pursuant to the provisions of chapter 514, but shall 
 27.23  not be the basis for the recording of a lien against the common 
 27.24  elements except in the case of a condominium on registered land, 
 27.25  in which case a lien shall be filed pursuant to section 508.351, 
 27.26  subdivision 3, or 508A.351, subdivision 3.  Where a lien is 
 27.27  recorded against the units for labor performed or material 
 27.28  furnished for the improvement of common elements, the 
 27.29  association shall be deemed to be the authorized agent of the 
 27.30  unit owners for purposes of receiving the notices required under 
 27.31  sections 514.011 and 514.08, subdivision 1, clause (2). 
 27.32     (c) A security interest in a cooperative whose unit owners' 
 27.33  interests in the units are personal property shall be perfected 
 27.34  by recording a financing statement in the UCC filing section of 
 27.35  the office of the recording officer for the county in which the 
 27.36  unit is located.  In any disposition by a secured party pursuant 
 28.1   to section 336.9-504 or retention pursuant to section 336.9-505, 
 28.2   the rights of the parties shall be the same as those provided by 
 28.3   law, subject to the exceptions and requirements set forth in 
 28.4   section 515B.3-116(h)(3), and except that the unit owner has the 
 28.5   right to reinstate the debt owing to the secured party by paying 
 28.6   to the secured party, prior to the effective date of the 
 28.7   disposition or retention, the amount which would be required to 
 28.8   reinstate the debt under section 580.30 if the unit were wholly 
 28.9   real estate. 
 28.10     Sec. 31.  Minnesota Statutes 2000, section 541.023, 
 28.11  subdivision 1, is amended to read: 
 28.12     Subdivision 1.  [COMMENCEMENT.] As against a claim of title 
 28.13  based upon a source of title, which source has then been of 
 28.14  record at least 40 years, no action affecting the possession or 
 28.15  title of any real estate shall be commenced by a person, 
 28.16  partnership, corporation, other legal entity, state, or any 
 28.17  political division thereof, after January 1, 1948, to enforce 
 28.18  any right, claim, interest, incumbrance, or lien founded upon 
 28.19  any instrument, event or transaction which was executed or 
 28.20  occurred more than 40 years prior to the commencement of such 
 28.21  action, unless within 40 years after such execution or 
 28.22  occurrence there has been recorded in the office of the county 
 28.23  recorder or filed in the office of the registrar of titles in 
 28.24  the county in which the real estate affected is situated, a 
 28.25  notice sworn to by the claimant or the claimant's agent or 
 28.26  attorney setting forth the name of the claimant, a description 
 28.27  of the real estate affected and of the instrument, event or 
 28.28  transaction on which such claim is founded, and stating whether 
 28.29  the right, claim, interest, incumbrance, or lien is mature or 
 28.30  immature.  If such notice relates to vested or contingent rights 
 28.31  claimed under a condition subsequent or restriction it shall 
 28.32  affirmatively show why such condition or restriction is not, or 
 28.33  has not become nominal so that it may be disregarded under the 
 28.34  provisions of Minnesota Statutes 1945, section 500.20, 
 28.35  subdivision 1. 
 28.36     Sec. 32.  Minnesota Statutes 2000, section 541.023, 
 29.1   subdivision 2, is amended to read: 
 29.2      Subd. 2.  [APPLICATION.] (a) This section shall apply to 
 29.3   every right, claim, interest, incumbrance, or lien founded by 
 29.4   any instrument, event, or transaction that is at least 40 years 
 29.5   old at the date hereof, or which will be 40 years old prior to 
 29.6   January 1, 1948, except those under which the claimant 
 29.7   thereunder shall file a notice as herein provided prior to 
 29.8   January 1, 1948. 
 29.9      (b) This section applies to repurchase options or other 
 29.10  rights of repurchase that encumber an interest in land based 
 29.11  upon an instrument other than a deed of conveyance granted by a 
 29.12  governmental body, agency, or subdivision, unless within 40 
 29.13  years of the recording or filing of the instrument a notice is 
 29.14  recorded or filed under subdivision 1.  This paragraph does not 
 29.15  revive repurchase options or rights of repurchase barred by 
 29.16  subdivision 1. 
 29.17     (c) This section does not apply to actions to enforce 
 29.18  rights, claims, interests, encumbrances, or liens arising out of 
 29.19  private covenants, conditions, or restrictions to which section 
 29.20  500.20, subdivision 2a, or successor statutes do not apply. 
 29.21     Sec. 33.  Minnesota Statutes 2000, section 541.023, is 
 29.22  amended by adding a subdivision to read: 
 29.23     Subd. 2a.  [REGISTERED PROPERTY NOT AFFECTED.] (a) Except 
 29.24  as provided in paragraph (b), this section shall not apply to 
 29.25  real property while it remains registered according to chapter 
 29.26  508 or 508A. 
 29.27     (b) This subdivision does not affect an action or 
 29.28  proceeding involving the validity of a claim of title based upon 
 29.29  a source of title which has been of record at least 40 years if: 
 29.30     (i) the action or proceeding is pending on the effective 
 29.31  date of this subdivision or is commenced before February 1, 
 29.32  2002; and 
 29.33     (ii) a notice of the pendency of the action or proceeding 
 29.34  is recorded or filed before February 1, 2002, in the office of 
 29.35  the registrar of titles of the county in which the real property 
 29.36  affected by the action or proceeding is located. 
 30.1      Sec. 34.  Minnesota Statutes 2000, section 541.023, 
 30.2   subdivision 4, is amended to read: 
 30.3      Subd. 4.  [NOTICES, FILING OR RECORDING; FEE.] County 
 30.4   recorders and registrars of titles are hereby directed to accept 
 30.5   for recording or filing notices conforming with the provisions 
 30.6   hereof, and to charge therefor fees corresponding with the fees 
 30.7   charged for filing notices of lis pendens of similar length.  
 30.8   Such notices may be discharged in the same manner as notices of 
 30.9   lis pendens, and, when so discharged, shall, together with all 
 30.10  information included therein, cease to constitute either actual 
 30.11  or constructive notice. 
 30.12     Sec. 35.  Minnesota Statutes 2000, section 541.023, 
 30.13  subdivision 6, is amended to read: 
 30.14     Subd. 6.  [LIMITATIONS; CERTAIN TITLES NOT AFFECTED.] This 
 30.15  section shall not affect any rights of the federal government; 
 30.16  nor increase the effect as notice, actual or constructive, of 
 30.17  any instrument now of record; nor bar the rights of any person, 
 30.18  partnership or corporation in possession of real estate.  This 
 30.19  section shall not impair the record title or record interest, or 
 30.20  title obtained by or through any congressional or legislative 
 30.21  grant, of any railroad corporation or other public service 
 30.22  corporation or any trustee or receiver thereof or of any 
 30.23  educational or religious corporation in any real estate by 
 30.24  reason of any failure to file or record further evidence of such 
 30.25  title or interest even though the record thereof is new or 
 30.26  hereafter more than 40 years old; nor shall this section require 
 30.27  the filing of any notice as provided for in this act as to any 
 30.28  undischarged mortgage or deed of trust executed by any such 
 30.29  corporation or any trustee or receiver thereof or to any claim 
 30.30  or action founded upon any such undischarged mortgage or deed of 
 30.31  trust.  The exceptions of this subdivision shall not include (a) 
 30.32  reservations or exceptions of land for right of way or other 
 30.33  railroad purposes contained in deeds of conveyance made by a 
 30.34  railroad company or by trustees or receivers thereof, unless 
 30.35  said reserved or excepted land shall have been put to railroad 
 30.36  use within 40 years after the date of said deeds of conveyance, 
 31.1   (b) nor any rights under any conditions subsequent or 
 31.2   restrictions contained in any such deeds of conveyance.  This 
 31.3   act shall not affect any action or proceeding which is now or on 
 31.4   January 1, 1948, shall be pending, for the determination of 
 31.5   validity of the title to real estate.  
 31.6      Sec. 36.  Minnesota Statutes 2000, section 541.023, 
 31.7   subdivision 7, is amended to read: 
 31.8      Subd. 7.  [SOURCE OF TITLE.] For the purposes of this 
 31.9   section, the words "source of title" as used in subdivision 1 
 31.10  hereof shall mean any deed, judgment, decree, sheriff's 
 31.11  certificate, or other instrument which transfers or confirms, or 
 31.12  purports to transfer or confirm, a fee simple title to real 
 31.13  estate, including any such instrument which purports to 
 31.14  transfer, or to confirm the transfer of a fee simple title from 
 31.15  a person who was not the record owner of the real estate.  
 31.16  However, any such instrument which purports to transfer, or to 
 31.17  confirm the transfer of, a fee simple title from a person who 
 31.18  was not the record owner of the real estate to the grantee or 
 31.19  transferee named in such instrument shall be deemed a source of 
 31.20  title "of record at least 40 years" within the meaning of 
 31.21  subdivision 1 only if, during the period of 40 years after it 
 31.22  was recorded, the following two conditions are fulfilled:  (1) 
 31.23  another instrument was recorded which purports to transfer a fee 
 31.24  simple title from said grantee or transferee to another person 
 31.25  and (2) no instrument was recorded which purports to be or 
 31.26  confirm a transfer of any interest in the real estate by or from 
 31.27  whoever was the record owner in fee simple immediately before 
 31.28  the commencement of said period of 40 years.  The purpose of the 
 31.29  next preceding sentence is to limit the effect of erroneous 
 31.30  descriptions or accidental conveyances.  Insofar as this 
 31.31  subdivision 7 may bar any claim not otherwise barred or 
 31.32  extinguished by this section or by some other statute, it shall 
 31.33  not be effective until June 1, 1960, and it shall not then apply 
 31.34  to any such claim with respect to which a notice has been filed 
 31.35  under the provisions of this section prior to that date.  This 
 31.36  subdivision 7 shall not affect any action or proceeding which is 
 32.1   now, or on or before June 1, 1960, shall be, pending in any 
 32.2   court.  
 32.3      Sec. 37.  [REPEALER.] 
 32.4      Minnesota Statutes 2000, sections 508.71, subdivision 7; 
 32.5   508A.22, subdivision 2; 508A.27; and 508A.351, subdivision 1, 
 32.6   are repealed. 
 32.7      Sec. 38.  [INSTRUCTION TO REVISOR.] 
 32.8      (a) The revisor of statutes shall change the headnote for 
 32.9   Minnesota Statutes, section 508.51, to read "VOLUNTARY 
 32.10  INSTRUMENT." 
 32.11     (b) The revisor of statutes shall change the headnote for 
 32.12  Minnesota Statutes, section 508.421, to read "EXCHANGE 
 32.13  CERTIFICATE." 
 32.14     (c) The revisor of statutes shall change the headnote for 
 32.15  Minnesota Statutes, section 508A.22, to read "EXAMINER'S 
 32.16  DIRECTIVE; FEES." 
 32.17     (d) The revisor of statutes shall change the headnote for 
 32.18  Minnesota Statutes, section 508A.351, to read "CONDOMINIUM 
 32.19  CERTIFICATE." 
 32.20     Sec. 39.  [EFFECTIVE DATE.] 
 32.21     (a) Section 1 is effective the day following final 
 32.22  enactment and applies to all easements, conditions, 
 32.23  restrictions, and other servitudes created before, on, or after 
 32.24  the effective date. 
 32.25     (b) Section 1 does not affect an action or proceeding 
 32.26  involving the validity of an easement, condition, restriction, 
 32.27  or other servitude if: 
 32.28     (1) the action or proceeding is pending as of the effective 
 32.29  date of section 1, or is commenced before February 1, 2002; and 
 32.30     (2) a notice of the pendency of the action or proceeding is 
 32.31  recorded or filed before February 1, 2002, in the office of the 
 32.32  county recorder or registrar of titles of the county in which 
 32.33  the property affected by the action or proceeding is located.