HF 1275

as introduced - 87th Legislature (2011 - 2012) Posted on 03/23/2011 09:35am

A bill for an act
relating to common interest ownership; clarifying certain provisions related to
disclosure statements; amending Minnesota Statutes 2010, section 515B.4-106.

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

Section 1.

Minnesota Statutes 2010, section 515B.4-106, is amended to read:

515B.4-106 PURCHASER'S RIGHT TO CANCEL.

(a) A person required to deliver a disclosure statement pursuant to section
515B.4-101(b) shall provide at least one of the purchasers of the unit with a copy of the
disclosure statement and all amendments thereto before conveyance of the unit. If a
purchaser is not given a disclosure statement more than ten days before execution of the
purchase agreement, the purchaser may, before conveyance, cancel the purchase agreement
within ten days after first receiving the disclosure statement. new text begin The ten-day rescission
period shall begin to run upon delivery of the disclosure statement to the purchaser or, if
written authorization has been provided, the purchaser's agent. new text end If a purchaser is given the
disclosure statement more than ten days before execution of the purchase agreement, the
purchaser may not cancel the purchase agreement pursuant to this section. The ten-day
rescission period may be modified or waived, in writing, by agreement of the purchaser of
a unit only after the purchaser has received and had an opportunity to review the disclosure
statement. The person required to deliver a disclosure statement may not condition the
sale of the unit on the purchaser agreeing to modify or waive the purchaser's ten-day
right of rescission, may not contractually obligate the purchaser to modify or waive the
purchaser's ten-day right of rescission, and may not include a modification or waiver of
the ten-day right of rescission in any purchase agreement for the unit. To be effective, a
modification or waiver of a purchaser's ten-day right of rescission must be evidenced by
an instrument separate from the purchase agreement signed by the purchaser more than
three days after the purchaser receives the disclosure statement.

(b) If an amendment to the disclosure statement materially and adversely affects a
purchaser, then the purchaser shall have ten days after delivery of the amendment to cancel
the purchase agreement in accordance with this section. new text begin The ten-day recision period
shall begin to run upon delivery of the amended disclosure statement to the purchaser or,
if written authorization has been provided, the purchaser's agent. new text end The ten-day rescission
period may be modified or waived, in writing, by agreement of the purchaser of a unit only
after the purchaser has received and had an opportunity to review the amendment. To be
effective, a modification or waiver of a purchaser's ten-day right of rescission under this
section must be evidenced by a written instrument separate from the purchase agreement
signed by the purchaser more than three days after the purchaser receives the amendment.

(c) If a purchaser elects to cancel a purchase agreement pursuant to this section,
the purchaser may do so by giving notice thereof pursuant to section 515B.1-115.
Cancellation is without penalty, and all payments made by the purchaser before
cancellation shall be refunded promptly. Notwithstanding anything in this section to
the contrary, the purchaser's cancellation rights under this section terminate upon the
purchaser's acceptance of a conveyance of the unit.

(d) If a declarant obligated to deliver a disclosure statement fails to deliver to the
purchaser a disclosure statement which substantially complies with this chapter, the
declarant shall be liable to the purchaser in the amount of $5,000, in addition to any
damages or other amounts recoverable under this chapter or otherwise. Any action
brought under this subsection shall be commenced within the time period specified in
section 515B.4-115, subsection (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011, and applies to
purchase agreements signed on or after that date.
new text end