1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
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 includes the benefits and 2.3 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, applies whenever, after ownership of any 2.7 of the real property is 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 shall2.35 transmit the same. The attorney general shall represent the 2.36 state in these 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 must 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 must 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 must be maintained in the 6.4 same manner as provided for certificates of title and must 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 must 6.7 be "unit owners." The description of the registered land in the 6.8 tract index must be "common elements" or "CECT." 6.9 Subd. 4. [UNIT CERTIFICATES.] Certificates of title issued 6.10 for the units described in the declaration must 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 must 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 condominium8.21 declaration or plat in accordance with chapter 515A, ora 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 filed8.29 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 thefirst 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 INAPPLICATION; 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 on9.26 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 initialdirectives , and supplemental directivesto 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.] A11.5 certified copy of the application shall be delivered to the11.6 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 or11.19 recertified in a mannersatisfactory to the examiner of titles11.20 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 onof 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 must 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 those rights are 12.22 limited by section 508A.02, subdivision 1. The examiner's 12.23 directive shall contain an accurate description of the land and 12.24 shall set forth the address of the applicant and, if the 12.25 applicant beis an individual, whether the applicant is 18 years 12.26 of age or older, and whether married or unmarried, and if 12.27 married, the name of the spouse; if the applicant is under any 12.28 legal incapacity, the nature of it shall be stated. The 12.29 examiner shall deliver the abstract of title to the registrar of 12.30 titles who shall retain it, but it must not be entered as a 12.31 memorial on the CPT. From the date of filing the examiner's 12.32 directive with the registrar of titles, all instruments 12.33 affecting title to the land which are registered shall be filed 12.34 in the office of the registrar of titles and be memorialized 12.35 upon the CPT. 12.36 Sec. 15. Minnesota Statutes 2000, section 508A.22, 13.1 subdivision 3, is amended to read: 13.2 Subd. 3. [FEES.] Upon the filing with the registrar of 13.3 titles of the examiner's directive pursuant to subdivision 1, 13.4 there shall be paid to the registrar: (1) the fee provided by 13.5 section 508A.82, clause (2), for registering a first CPT, and 13.6 (2) the fee provided by section 508.74, which shall be paid to 13.7 the state treasurer pursuant to section 508.75. Upon filing13.8 with the registrar of titles the supplemental directive of the13.9 examiner, there shall be paid to the registrar of titles the fee13.10 for the entry of a memorial pursuant to section 508A.82, clause13.11 (4).13.12 Sec. 16. Minnesota Statutes 2000, section 508A.25, is 13.13 amended to read: 13.14 508A.25 [RIGHTS OF PERSON HOLDING CPT.] 13.15 Every person holding a CPT issued pursuant to sections 13.16 508A.01 to 508A.85 who has acquired title in good faith and for 13.17 a valuable consideration shall hold the same free from all 13.18 encumbrances and adverse claims, excepting only estates, 13.19 mortgages, liens, charges, and interests as may be noted by 13.20 separate memorials in the latest CPT in the office of the 13.21 registrar, and also excepting the memorial provided in section13.22 508A.351 andany of the following rights or encumbrances 13.23 subsisting against the same, if any: 13.24 (1) liens, claims, or rights arising or existing under the 13.25 laws or the constitution of the United States, which this state 13.26 cannot require to appear of record; 13.27 (2) the lien of any real property tax or special 13.28 assessment; 13.29 (3) any lease for a period not exceeding three years when 13.30 there is actual occupation of the premises under it; 13.31 (4) all rights in public highways upon the land; 13.32 (5) the rights of any person in possession under deed or 13.33 contract for deed from the owner of the CPT; 13.34 (6) any liens, encumbrances, and other interests that may13.35 be contained in the examiner's supplemental directive issued13.36 pursuant to section 508A.22, subdivision 2;14.1 (7)any claims that may be made pursuant to section 508A.17 14.2 within five years from the date the examiner's supplemental14.3 directive is filed onof the first CPT; and 14.4 (8)(7) any outstanding mechanics lien rights which may 14.5 exist under sections 514.01 to 514.17. 14.6 No existing or future lien for state taxes arising under 14.7 the laws of this state for the nonpayment of any amounts due 14.8 under chapter 268 or any tax administered by the commissioner of 14.9 revenue may encumber title to lands registered under this 14.10 chapter unless filed under the terms of this chapter. 14.11 Sec. 17. Minnesota Statutes 2000, section 508A.35, is 14.12 amended to read: 14.13 508A.35 [FORMS OF CPT.] 14.14 The CPT shall contain the name and residence of the owner, 14.15 a description of the land and of the estate of the owner, and 14.16 shall by memorial contain a description of all encumbrances, 14.17 liens, and interests known to the ownerto which the estate of 14.18 the owner is subject. It shall state whether the owner is 18 14.19 years of age or older and if under any legal incapacity, the 14.20 nature of it. It shall also state whether or not the owner is 14.21 married and if married, the name of the spouse. In case the 14.22 land is held in trust or subject to any condition or limitation, 14.23 it shall state the nature and character of it. It shall be in 14.24 substantially the following form: 14.25 CERTIFICATE OF POSSESSORY TITLE (CPT) 14.26 First Certificate of Possessory Title, pursuant to the 14.27 Directive of the Examiner of Titles, County of ..........., and 14.28 State of Minnesota, date .................., ..... 14.29 Registration of Possessory Title 14.30 State of Minnesota ) 14.31 )ss 14.32 County of ...............) 14.33 This is to certify that ........................, of the 14.34 .................. of ................ County of ............., 14.35 and State of ......................, is now the owner of a fee 14.36 simple estate of and in the following described land situation 15.1 in the county of ....... and state of Minnesota, 15.2 ........................................ Subject to the 15.3 encumbrances, liens, and interests noted by the memorial 15.4 underwritten or endorsed hereon; and subject to the following 15.5 rights or encumbrances subsisting, namely: 15.6 (1) Liens, claims, or rights arising under the laws ofor 15.7 the Constitution of the United States, which the statutes of 15.8 this state cannot require to appear of record; 15.9 (2) Any real property tax or special assessment; 15.10 (3) Any lease for a period not exceeding three years, when 15.11 there is actual occupation of the premises under the lease; 15.12 (4) All rights in public highways upon the land; 15.13 (5) The rights, titles, estates, liens, and interests of15.14 any person who has acquired an interest set forth in the15.15 Examiner's Supplemental Directive issued pursuant to section15.16 508A.22, subdivision 2;15.17 (6)The rights of any person in possession under deed or 15.18 contract for deed from the owner of the CPT; 15.19 (7)(6) Any claims that may be made pursuant to section 15.20 508A.17 within five years from the date the Examiner's15.21 Supplemental Directive is filed onof the first CPT; and 15.22 (8)(7) Any outstanding mechanics lien rights which may 15.23 exist under sections 514.01 to 514.17. 15.24 In witness whereof, I have hereunto subscribed my name and 15.25 affixed the seal of my office, this ............ day of 15.26 ...................., ..... 15.27 ................................... 15.28 Registrar of Titles, in and for the 15.29 County of ..................... and 15.30 State of Minnesota. 15.31 All CPTs issued subsequent to the first shall be in like 15.32 form except that they shall be entitled "Transfer from number 15.33 (here give the number of the next previous CPT relating to the 15.34 same land)," and shall also contain the words "Originally 15.35 registered (date, volume, and page of registration)." 15.36 CPTs shall be indexed and maintained in the same manner as 16.1 provided for certificates of title under chapter 508. 16.2 Sec. 18. Minnesota Statutes 2000, section 508A.351, is 16.3 amended by adding a subdivision to read: 16.4 Subd. 1a. [DECLARATION.] Prior to filing with the 16.5 registrar of titles of a declaration or bylaws for a 16.6 condominium, or an amendment to the declaration or bylaws, a 16.7 determination must be made by an order of court in a proceeding 16.8 subsequent to initial registration or by a written directive of 16.9 the examiner of titles that the documents comply with the 16.10 requirements of the applicable condominium statute. 16.11 Sec. 19. Minnesota Statutes 2000, section 508A.351, is 16.12 amended by adding a subdivision to read: 16.13 Subd. 2a. [FORM OF COMMON ELEMENTS CERTIFICATE OF 16.14 TITLE.] Upon the filing of a declaration creating a condominium, 16.15 the registrar shall issue a certificate of title, designated as 16.16 a "common elements certificate of title," ("CECT"). It must be 16.17 in substantially the following form: 16.18 COMMON ELEMENTS CERTIFICATE OF TITLE (CECT) 16.19 This is the Common Elements Certificate of Title for 16.20 Condominium CIC No. ........... 16.21 State of Minnesota ) 16.22 ) SS. 16.23 County of ..............) 16.24 This is to certify that the common elements in condominium 16.25 CIC No. ....... are subject to the encumbrances, liens, and 16.26 interests noted by the memorials set forth as follows: 16.27 16.28 16.29 16.30 In witness whereof, I have here unto subscribed my name and 16.31 affixed the seal of my office, this ....... day of ......., ..... 16.32 ................... 16.33 Registrar of Titles, in and for the 16.34 County of ............ 16.35 and State of Minnesota 16.36 Sec. 20. Minnesota Statutes 2000, section 508A.351, is 17.1 amended by adding a subdivision to read: 17.2 Subd. 3. [TRACT INDEX.] CECTs must be maintained in the 17.3 same manner as provided for certificates of title under chapter 17.4 508 and must be indexed in the tract index as provided in 17.5 section 508.37, subdivision 1a. The names of the owners in the 17.6 tract index must be "unit owners." The description of the 17.7 registered land in the tract index must be "common elements" or 17.8 "CECT." 17.9 Sec. 21. Minnesota Statutes 2000, section 508A.351, is 17.10 amended by adding a subdivision to read: 17.11 Subd. 4. [UNIT CERTIFICATES.] CPTs issued for the units 17.12 described in the declaration must contain, immediately following 17.13 the description of the unit, a statement in substantially the 17.14 following form: "Subject to encumbrances, liens, and interests 17.15 noted on CECT No. ......." 17.16 Sec. 22. Minnesota Statutes 2000, section 508A.351, is 17.17 amended by adding a subdivision to read: 17.18 Subd. 5. [MEMORIALS.] The condominium declaration, bylaws, 17.19 any amendment to the declaration or bylaws; any lien against the 17.20 common elements pursuant to chapter 514; any fixture filings 17.21 pursuant to section 336.9-314 where the financing statement 17.22 describes the common elements; any easement on the common 17.23 elements pursuant to section 515B.3-102, subsection (a)(9); any 17.24 instrument evidencing the transfer of a special declarant right 17.25 pursuant to section 515B.3-104; and any conveyance or 17.26 encumbrance of the common elements pursuant to section 17.27 515B.3-112 must be entered as memorials on the CECT only. 17.28 Sec. 23. Minnesota Statutes 2000, section 508A.351, is 17.29 amended by adding a subdivision to read: 17.30 Subd. 6. [PREEXISTING CONDOMINIUMS.] In the case of a 17.31 condominium existing prior to August 1, 2001, on registered 17.32 land, for which no CECT has been issued, upon the filing of a 17.33 document of the kind specified in section 508.351, subdivision 17.34 4, the registrar shall issue a CECT, but documents filed prior 17.35 to the issuance of the CECT need not be entered as memorials on 17.36 the CECT. The registrar for no additional fee shall mark by the 18.1 land description on the certificate of title for each of the 18.2 units in the condominium a statement in substantially the 18.3 following form: "Subject to encumbrances, liens, and interests 18.4 noted in CECT No. ......." and in future certificates for each 18.5 unit in the condominium insert, immediately following the 18.6 description of the Unit, a statement in substantially the 18.7 following form: "Subject to encumbrances, liens and interests 18.8 noted on CECT No. ........" 18.9 Sec. 24. Minnesota Statutes 2000, section 508A.421, is 18.10 amended by adding a subdivision to read: 18.11 Subd. 1a. [REISSUANCE.] The owner of registered land may 18.12 request the registrar of titles to issue a new CPT free from the 18.13 memorials of all interests which have terminated. 18.14 Sec. 25. [508A.422] [COMBINED CERTIFICATE.] 18.15 Subdivision 1. [COMBINING CPT AND CERTIFICATE OF 18.16 TITLE.] The owner of registered land holding a CPT and a 18.17 certificate of title may request the registrar of titles to 18.18 issue a single certificate of title, to be known as a combined 18.19 certificate of title, for the lands described in the CPT and the 18.20 certificate of title. The combined certificate of title must be 18.21 in the form prescribed in section 508.35 and must also contain, 18.22 following the statement required by section 508.35 regarding 18.23 rights or encumbrances subsisting, a statement in substantially 18.24 the following form: "This certificate of title is also a CPT as 18.25 to the lands described herein included in the examiner's 18.26 directive shown by memorial on this certificate of title and 18.27 those lands are subject to any claims that may be made pursuant 18.28 to section 508A.17 within five years from the date of the first 18.29 CPT." 18.30 Subd. 2. [APPLICABLE STATUTE.] Chapter 508 applies to the 18.31 lands in the combined certificate of title which are registered 18.32 under that chapter or which have been integrated pursuant to 18.33 section 508A.85, subdivision 5. This chapter applies to the 18.34 lands in the combined certificate of title which are registered 18.35 pursuant to this chapter and which have not been integrated 18.36 pursuant to section 508A.85, subdivision 5. 19.1 Sec. 26. Minnesota Statutes 2000, section 508A.82, 19.2 subdivision 1, is amended to read: 19.3 Subdivision 1. [STANDARD DOCUMENTS.] The fees to be paid 19.4 to the registrar shall be as follows: 19.5 (1) of the fees provided herein, five percent of the fees 19.6 collected under clauses (3), (4), (10), (12), (14), and (16)19.7 (5), (11), (13), (14), and (17), for filing or memorializing 19.8 shall be paid to the state treasurer and credited to the general 19.9 fund; plus a $4.50 surcharge shall be charged and collected in 19.10 addition to the total fees charged for each transaction under 19.11 clauses (2) to (5), (10), (12), and (16), (3), (5), (11), (13), 19.12 (14), and (17), with 50 cents of this surcharge to be retained 19.13 by the county to cover its administrative costs and $4 to be 19.14 paid to the state treasury and credited to the general fund; 19.15 (2) for registering a first CPT, including issuing a copy 19.16 of it, $30; 19.17 (3) for registering each instrument transferring the fee 19.18 simple title for which a new CPT is issued and for the 19.19 registration of the new CPT, including a copy of it, $30; 19.20 (4) for issuance of a CECT pursuant to section 508A.351, 19.21 $15; 19.22 (5) for the entry of each memorial on a CPT, $15; 19.23 (5)(6) for issuing each residue CPT, $20; 19.24 (6)(7) for exchange CPTs or combined certificates of 19.25 title, $10 for each CPT and certificate of title canceled and 19.26 $10 for each new CPT or combined certificate of title issued; 19.27 (7)(8) for each CPT showing condition of the register, 19.28 $10; 19.29 (8)(9) for any certified copy of any instrument or writing 19.30 on file in the registrar's office, the same fees allowed by law 19.31 to county recorders for like services; 19.32 (9)(10) for a noncertified copy of any CPT, other than the 19.33 copies issued under clauses (2) and (3), any instrument or 19.34 writing on file in the office of the registrar of titles, or any 19.35 specified page or part of it, an amount as determined by the 19.36 county board for each page or fraction of a page specified. If 20.1 computer or microfilm printers are used to reproduce the 20.2 instrument or writing, a like amount per image; 20.3 (10)(11) for filing two copies of any plat in the office 20.4 of the registrar, $30; 20.5 (11)(12) for any other service under sections 508A.01 to 20.6 508A.85, the fee the court shall determine; 20.7 (12)(13) for filing an amendment to a declaration in 20.8 accordance with chapter 515, $10 for each certificate upon which 20.9 the document is registered and $30 for an amended floor plan 20.10 filed in accordance with chapter 515; 20.11 (13)(14) for filing an amendment to a condominium20.12 declaration or plat in accordance with chapter 515A, ora common 20.13 interest community declaration and plat or amendment complying 20.14 with section 515B.2-110, subsection (c) and issuing a CECT if 20.15 required, $10 for each certificate upon which the document is 20.16 registered and $30 for the filing of the condominium or common 20.17 interest community plat or amendment; 20.18 (14)(15) for a copy of a condominium floor plan filed in 20.19 accordance with chapter 515, a copy of a condominium plat filed20.20 in accordance with chapter 515A,or a copy of a common interest 20.21 community plat complying with section 515B.2-110, subsection 20.22 (c), the fee shall be $1 for each page of the floor plan, 20.23 condominium plat,or common interest community plat with a 20.24 minimum fee of $10; 20.25 (15)(16) in counties in which the compensation of the 20.26 examiner of titles is paid in the same manner as the 20.27 compensation of other county employees, for each parcel of land 20.28 contained in the application for a CPT, as the number of parcels 20.29 is determined by the examiner, a fee which is reasonable and 20.30 which reflects the actual cost to the county, established by the 20.31 board of county commissioners of the county in which the land is 20.32 located; 20.33 (16)(17) for filing a registered land survey in triplicate 20.34 in accordance with section 508A.47, subdivision 4, $30; and 20.35 (17)(18) for furnishing a certified copy of a registered 20.36 land survey in accordance with section 508A.47, subdivision 4, 21.1 $10. 21.2 Sec. 27. Minnesota Statutes 2000, section 508A.85, 21.3 subdivision 4, is amended to read: 21.4 Subd. 4. [CHANGEOVER, MEMORIALS ON CERTIFICATE OF TITLE.] 21.5 Any certificate of title issued pursuant to this section shall 21.6 carry forward all memorials which still affect the land , except21.7 for the memorial of the examiner's supplemental directive issued21.8 pursuant to section 508A.22, subdivision 2. It shall be made 21.9 subject to all statutory exceptions and be issued in the same 21.10 form as provided in section 508.35, except that, in lieu of 21.11 reciting that the certificate of title was issued pursuant to 21.12 the order of the district court, the certificate of title shall 21.13 recite that it was issued pursuant to the provisions of this 21.14 section and recite the date the certificate of title was issued 21.15 for the land involved. The memorial of the examiner's directive 21.16 on the CPT pursuant to section 508A.351508A.22 shall not be 21.17 removed without an order of the district court. 21.18 Sec. 28. Minnesota Statutes 2000, section 515B.1-116, is 21.19 amended to read: 21.20 515B.1-116 [RECORDING.] 21.21 (a) A declaration, bylaws, any amendment to a declaration 21.22 or bylaws, and any other instrument affecting a common interest 21.23 community shall be entitled to be recorded. In those counties 21.24 which have a tract index, the county recorder shall enter the 21.25 declaration in the tract index for each unit affected. The 21.26 registrar of titles shall file the declaration on the21.27 certificate of title for each unit affectedin accordance with 21.28 section 508.351 or 508A.351. 21.29 (b) The recording officer shall upon request promptly 21.30 assign a number (CIC number) to a common interest community to 21.31 be formed or to a common interest community resulting from the 21.32 merger of two or more common interest communities. 21.33 (c) Documents recorded pursuant to this chapter shall in 21.34 the case of registered land be filed, and references to the 21.35 recording of documents shall mean filed in the case of 21.36 registered land. 22.1 (d) Subject to any specific requirements of this chapter, 22.2 if a recorded document relating to a common interest community 22.3 purports to require a certain vote or signatures approving any 22.4 restatement or amendment of the document by a certain number or 22.5 percentage of unit owners or secured parties, and if the 22.6 amendment or restatement is to be recorded pursuant to this 22.7 chapter, an affidavit of the president or secretary of the 22.8 association stating that the required vote or signatures have 22.9 been obtained shall be attached to the document to be recorded 22.10 and shall constitute prima facie evidence of the representations 22.11 contained therein. 22.12 (e) If a common interest community is located on registered 22.13 land, the recording fee for any document affecting two or more 22.14 units shall be the then-current fee for registering the document 22.15 on the certificates of title for the first ten affected 22.16 certificates and one-third of the then-current fee for each 22.17 additional affected certificate. This provision shall not apply 22.18 to recording fees for deeds of conveyance, with the exception of 22.19 deeds given pursuant to sections 515B.2-119 and 515B.3-112. 22.20 (f) Except as permitted under this subsection, a recording 22.21 officer shall not file or record a declaration creating a new 22.22 common interest community, unless the county treasurer has 22.23 certified that the property taxes payable in the current year 22.24 for the real estate included in the proposed common interest 22.25 community have been paid. This certification is in addition to 22.26 the certification for delinquent taxes required by section 22.27 272.12. In the case of preexisting common interest communities, 22.28 the recording officer shall accept, file, and record the 22.29 following instruments, without requiring a certification as to 22.30 the current or delinquent taxes on any of the units in the 22.31 common interest community: (i) a declaration subjecting the 22.32 common interest community to this chapter; (ii) a declaration 22.33 changing the form of a common interest community pursuant to 22.34 section 515B.2-123; or (iii) an amendment to or restatement of 22.35 the declaration, bylaws, or CIC plat. In order for the 22.36 instruments to be accepted and recorded under the preceding 23.1 sentence, the assessor must certify or otherwise inform the 23.2 recording officer that, for taxes payable in the current year, 23.3 the assessor has allocated taxable values to each unit or has 23.4 separately assessed each unit. 23.5 (g) The registrar of titles shall not require the filing on23.6 certificates of title previously issued for units in a flexible23.7 common interest community of an amendment to a declaration23.8 pursuant to section 515B.2-111 made solely to add additional23.9 real estate.23.10 (h) In the case of an amendment to a declaration or a23.11 transfer of special declarant rights with respect to a common23.12 interest community located on registered land, the registrar of23.13 titles shall not require the surrender of the owner's duplicate23.14 certificates of title to record the document, except for any23.15 owner's duplicate certificates of title relating to additional23.16 real estate being added by an amendment under section 515B.2-111.23.17 Sec. 29. Minnesota Statutes 2000, section 515B.3-104, is 23.18 amended to read: 23.19 515B.3-104 [TRANSFER OF SPECIAL DECLARANT RIGHTS.] 23.20 (a) A special declarant right created or reserved under 23.21 this chapter may be voluntarily transferred only by a separate 23.22 instrument evidencing the transfer recorded in every county in 23.23 which any part of the common interest community is located. The 23.24 separate instrument shall be recorded against all units in the 23.25 common interest community, or in the case of a cooperative, 23.26 against the real estate owned by the cooperative, or in the case 23.27 of a condominium on registered land, the instrument must be 23.28 filed pursuant to section 508.351, subdivision 3, or 508A.351, 23.29 subdivision 3. The instrument may provide for the conveyance of 23.30 less than all of the special declarant rights, and is not 23.31 effective unless executed by the transferor and transferee. A 23.32 deed in lieu of foreclosure, or other conveyance arising out of 23.33 a foreclosure or cancellation, shall not be deemed a voluntary 23.34 transfer within the meaning of this section. 23.35 (b) Upon the voluntary transfer of any special declarant 23.36 right, the liability of a transferor declarant is as follows: 24.1 (1) A transferor is not relieved of any obligation or 24.2 liability arising before the transfer and remains liable for 24.3 warranty obligations imposed on the transferor by this chapter. 24.4 Lack of privity does not deprive any unit owner of standing to 24.5 maintain an action to enforce any obligation of the transferor. 24.6 (2) If a successor to any special declarant right is an 24.7 affiliate of a declarant, the transferor is jointly and 24.8 severally liable with the successor for any obligations or 24.9 liabilities of the successor relating to the common interest 24.10 community. 24.11 (3) If a transferor retains any special declarant rights, 24.12 but transfers other special declarant rights to a successor who 24.13 is not an affiliate of the declarant, the transferor is liable 24.14 for any obligations or liabilities imposed on a declarant by 24.15 this chapter or by the declaration relating to the retained 24.16 special declarant rights and arising before or after the 24.17 transfer. 24.18 (4) A transferor has no liability for any act or omission 24.19 or any breach of a contractual or warranty obligation arising 24.20 from the exercise of a special declarant right by a successor 24.21 declarant who is not an affiliate of the transferor. 24.22 (c) Upon the voluntary transfer of any special declarant 24.23 right, the liability of a successor declarant is as follows: 24.24 (1) A successor to any special declarant right who is an 24.25 affiliate of a declarant is subject to all obligations and 24.26 liabilities imposed on the transferor by this chapter or by the 24.27 declaration. 24.28 (2) A successor to any special declarant right who is not 24.29 an affiliate of a declarant is subject to all obligations and 24.30 liabilities imposed by this chapter or the declaration, except: 24.31 (i) misrepresentations by any previous declarant; (ii) warranty 24.32 obligations on improvements made by any previous declarant, or 24.33 made before the common interest community was created; (iii) 24.34 breach of any fiduciary obligation by any previous declarant or 24.35 the declarant's appointees to the board; (iv) any liability or 24.36 obligation imposed on the transferor as a result of the 25.1 transferor's acts or omissions after the transfer; and (v) any 25.2 liability arising out of a special declarant right which was not 25.3 transferred as provided in subsection (a). 25.4 (d) In case of foreclosure of a mortgage or cancellation of 25.5 a contract for deed or other security interest (or conveyance in 25.6 lieu thereof), sale by a trustee under an agreement creating a 25.7 security interest, tax sale, judicial sale, or sale under 25.8 bankruptcy code or receivership proceedings, of any units or 25.9 additional real estate, or interest therein, owned by a 25.10 declarant, a person acquiring title to the property or interests 25.11 succeeds to all special declarant rights related to the property 25.12 or interests held by that declarant and acquired by it unless (i) 25.13 the mortgage instrument or other instrument creating the 25.14 security interest, (ii) the instrument conveying title or (iii) 25.15 a separate instrument signed by the person and recorded within 25.16 60 days after the person acquires title to the property or 25.17 interests, provides for transfer of less than all special 25.18 declarant rights. The separate instrument need be recorded only 25.19 against the title to the units or interests other than those 25.20 being acquired under this subsection, or in the case of a 25.21 cooperative, against the real estate owned by the cooperative. 25.22 The declarant shall cease to have or exercise any special 25.23 declarant rights which are transferred. If the person has 25.24 limited the transfer of certain special declarant rights as 25.25 provided in this subsection, then it and its successor's 25.26 liability shall be limited, as follows: 25.27 (1) If the person or its successor limits its rights and 25.28 liabilities only to maintain models, sales office and signs, and 25.29 if that party is not an affiliate of a declarant, it is not 25.30 subject to any liability or obligations as a declarant, except 25.31 the obligation to provide a disclosure statement and any 25.32 liability arising from that obligation, and it may not exercise 25.33 any other special declarant rights. 25.34 (2) If the person or its successor is not an affiliate of a 25.35 declarant, it may declare its intention in a recorded instrument 25.36 as provided in subsection (a) to acquire all special declarant 26.1 rights and hold those rights solely for transfer to another 26.2 person. Thereafter, until the special declarant rights are 26.3 transferred to a person acquiring title to any unit owned by the 26.4 successor, or until a separate instrument is recorded permitting 26.5 exercise of all of those rights, that successor may not exercise 26.6 any of those rights other than the right to control the board of 26.7 directors in accordance with the provisions of section 26.8 515B.3-103 for the duration of any period of declarant control. 26.9 So long as any successor may not exercise its special declarant 26.10 rights under this subsection, it is not subject to any liability 26.11 or obligation as a declarant other than liability for its acts 26.12 and omissions under section 515B.3-103. 26.13 (e) Any attempted exercise by a purported successor to a 26.14 special declarant right which is not transferred as provided in 26.15 this section is void, and any purported successor attempting to 26.16 exercise that right shall be liable for any damages arising out 26.17 of its actions. 26.18 (f) Nothing in this section shall subject any successor to 26.19 a special declarant right to any claims against or other 26.20 obligations of a transferor declarant, other than claims and 26.21 obligations arising under this chapter, or the declaration or 26.22 bylaws. 26.23 Sec. 30. Minnesota Statutes 2000, section 515B.3-117, is 26.24 amended to read: 26.25 515B.3-117 [OTHER LIENS.] 26.26 (a) Except in a cooperative and except as otherwise 26.27 provided in this chapter or in a security instrument, an 26.28 individual unit owner may have the unit owner's unit released 26.29 from a lien if the unit owner pays the lienholder the portion of 26.30 the amount which the lien secures that is attributable to the 26.31 unit. Upon the receipt of payment, the lienholder shall 26.32 promptly deliver to the unit owner a recordable partial 26.33 satisfaction and release of lien releasing the unit from the 26.34 lien. The release shall be deemed to include a release of any 26.35 rights in the common elements appurtenant to the unit. The 26.36 portion of the amount which a lien secures that is attributable 27.1 to the unit shall be equal to the total amount which the lien 27.2 secures multiplied by a percentage calculated by dividing the 27.3 common expense liability attributable to the unit by the common 27.4 expense liability attributable to all units against which the 27.5 lien has been recorded, or in the case of a lien under 27.6 subsection (b), the units against which the lien is permitted or 27.7 required to be recorded. At the request of a lien claimant or 27.8 unit owners, the association shall provide a written statement 27.9 of the percentage of common expense liability attributable to 27.10 all units. After a unit owner's payment pursuant to this 27.11 section, the association may not assess the unit for any common 27.12 expense incurred thereafter in connection with the satisfaction 27.13 or defense against the lien. 27.14 (b) Labor performed or materials furnished for the 27.15 improvement of a unit shall be the basis for the recording of a 27.16 lien against that unit pursuant to the provisions of chapter 514 27.17 but shall not be the basis for the recording of a lien against 27.18 the common elements. Labor performed or materials furnished for 27.19 the improvement of common elements, if duly authorized by the 27.20 association, shall be deemed to be performed or furnished with 27.21 the express consent of each unit owner, and shall be perfected 27.22 by recording a lien against all the units in the common interest 27.23 community pursuant to the provisions of chapter 514, but shall 27.24 not be the basis for the recording of a lien against the common 27.25 elements except in the case of a condominium on registered land, 27.26 in which case a lien must be filed pursuant to section 508.351, 27.27 subdivision 3, or 508A.351, subdivision 3. Where a lien is 27.28 recorded against the units for labor performed or material 27.29 furnished for the improvement of common elements, the 27.30 association shall be deemed to be the authorized agent of the 27.31 unit owners for purposes of receiving the notices required under 27.32 sections 514.011 and 514.08, subdivision 1, clause (2). 27.33 (c) A security interest in a cooperative whose unit owners' 27.34 interests in the units are personal property shall be perfected 27.35 by recording a financing statement in the UCC filing section of 27.36 the office of the recording officer for the county in which the 28.1 unit is located. In any disposition by a secured party pursuant 28.2 to section 336.9-504 or retention pursuant to section 336.9-505, 28.3 the rights of the parties shall be the same as those provided by 28.4 law, subject to the exceptions and requirements set forth in 28.5 section 515B.3-116(h)(3), and except that the unit owner has the 28.6 right to reinstate the debt owing to the secured party by paying 28.7 to the secured party, prior to the effective date of the 28.8 disposition or retention, the amount which would be required to 28.9 reinstate the debt under section 580.30 if the unit were wholly 28.10 real estate. 28.11 Sec. 31. Minnesota Statutes 2000, section 541.023, 28.12 subdivision 1, is amended to read: 28.13 Subdivision 1. [COMMENCEMENT.] As against a claim of title 28.14 based upon a source of title, which source has then been of 28.15 record at least 40 years, no action affecting the possession or 28.16 title of any real estate shall be commenced by a person, 28.17 partnership, corporation, other legal entity, state, or any 28.18 political division thereof, after January 1, 1948,to enforce 28.19 any right, claim, interest, incumbrance, or lien founded upon 28.20 any instrument, event or transaction which was executed or 28.21 occurred more than 40 years prior to the commencement of such 28.22 action, unless within 40 years after such execution or 28.23 occurrence there has been recorded in the office of the county 28.24 recorder or filed in the office of the registrar of titlesin 28.25 the county in which the real estate affected is situated, a 28.26 notice sworn to by the claimant or the claimant's agent or 28.27 attorney setting forth the name of the claimant, a description 28.28 of the real estate affected and of the instrument, event or 28.29 transaction on which such claim is founded, and stating whether 28.30 the right, claim, interest, incumbrance, or lien is mature or 28.31 immature. If such notice relates to vested or contingent rights 28.32 claimed under a condition subsequent or restriction it shall 28.33 affirmatively show why such condition or restriction is not, or 28.34 has not become nominal so that it may be disregarded under the 28.35 provisions of Minnesota Statutes 1945,section 500.20, 28.36 subdivision 1. 29.1 Sec. 32. Minnesota Statutes 2000, section 541.023, 29.2 subdivision 2, is amended to read: 29.3 Subd. 2. [APPLICATION.] (a) This section shall apply to 29.4 every right, claim, interest, incumbrance, or lien founded by 29.5 any instrument, event, or transaction that is at least 40 years 29.6 old at the date hereof, or which will be 40 years old prior to29.7 January 1, 1948, except those under which the claimant29.8 thereunder shall file a notice as herein provided prior to29.9 January 1, 1948.29.10 (b) This section applies to repurchase options or other 29.11 rights of repurchase that encumber an interest in land based 29.12 upon an instrument other than a deed of conveyance granted by a 29.13 governmental body, agency, or subdivision, unless within 40 29.14 years of the recording or filing of the instrument a notice is 29.15 recorded or filed under subdivision 1. This paragraph does not 29.16 revive repurchase options or rights of repurchase barred by 29.17 subdivision 1. 29.18 (c) This section does not apply to actions to enforce 29.19 rights, claims, interests, encumbrances, or liens arising out of 29.20 private covenants, conditions, or restrictions to which section 29.21 500.20, subdivision 2a, or successor statutes do not apply. 29.22 Sec. 33. Minnesota Statutes 2000, section 541.023, is 29.23 amended by adding a subdivision to read: 29.24 Subd. 2a. [REGISTERED PROPERTY NOT AFFECTED.] (a) Except 29.25 as provided in paragraph (b), this section does not apply to 29.26 real property while it remains registered according to chapter 29.27 508 or 508A. 29.28 (b) This subdivision does not affect an action or 29.29 proceeding involving the validity of a claim of title based upon 29.30 a source of title which has been of record at least 40 years if: 29.31 (i) the action or proceeding is pending on the effective 29.32 date of this subdivision or is commenced before February 1, 29.33 2002; and 29.34 (ii) a notice of the pendency of the action or proceeding 29.35 is recorded or filed before February 1, 2002, in the office of 29.36 the registrar of titles of the county in which the real property 30.1 affected by the action or proceeding is located. 30.2 Sec. 34. Minnesota Statutes 2000, section 541.023, 30.3 subdivision 4, is amended to read: 30.4 Subd. 4. [NOTICES, FILING OR RECORDING; FEE.] County 30.5 recorders and registrars of titlesare hereby directed to accept 30.6 for recording or filing notices conforming with the provisions 30.7 hereof, and to charge therefor fees corresponding with the fees 30.8 charged for filing notices of lis pendens of similar length. 30.9 Such notices may be discharged in the same manner as notices of 30.10 lis pendens, and, when so discharged, shall, together with all 30.11 information included therein, cease to constitute either actual 30.12 or constructive notice. 30.13 Sec. 35. Minnesota Statutes 2000, section 541.023, 30.14 subdivision 6, is amended to read: 30.15 Subd. 6. [LIMITATIONS; CERTAIN TITLES NOT AFFECTED.] This 30.16 section shall not affect any rights of the federal government; 30.17 nor increase the effect as notice, actual or constructive, of 30.18 any instrument now of record; nor bar the rights of any person, 30.19 partnership or corporation in possession of real estate. This 30.20 section shall not impair the record title or record interest, or 30.21 title obtained by or through any congressional or legislative 30.22 grant, of any railroad corporation or other public service 30.23 corporation or any trustee or receiver thereof or of any 30.24 educational or religious corporation in any real estate by 30.25 reason of any failure to file or record further evidence of such 30.26 title or interest even though the record thereof is new or 30.27 hereafter more than 40 years old; nor shall this section require 30.28 the filing of any notice as provided for in this act as to any 30.29 undischarged mortgage or deed of trust executed by any such 30.30 corporation or any trustee or receiver thereof or to any claim 30.31 or action founded upon any such undischarged mortgage or deed of 30.32 trust. The exceptions of this subdivision shall not include (a) 30.33 reservations or exceptions of land for right of way or other 30.34 railroad purposes contained in deeds of conveyance made by a 30.35 railroad company or by trustees or receivers thereof, unless 30.36 said reserved or excepted land shall have been put to railroad 31.1 use within 40 years after the date of said deeds of conveyance, 31.2 (b) nor any rights under any conditions subsequent or 31.3 restrictions contained in any such deeds of conveyance. This31.4 act shall not affect any action or proceeding which is now or on31.5 January 1, 1948, shall be pending, for the determination of31.6 validity of the title to real estate.31.7 Sec. 36. Minnesota Statutes 2000, section 541.023, 31.8 subdivision 7, is amended to read: 31.9 Subd. 7. [SOURCE OF TITLE.] For the purposes of this 31.10 section, the words "source of title" as used in subdivision 1 31.11 hereof shall mean any deed, judgment, decree, sheriff's 31.12 certificate, or other instrument which transfers or confirms, or 31.13 purports to transfer or confirm, a fee simple title to real 31.14 estate, including any such instrument which purports to 31.15 transfer, or to confirm the transfer of a fee simple title from 31.16 a person who was not the record owner of the real estate. 31.17 However, any such instrument which purports to transfer, or to 31.18 confirm the transfer of, a fee simple title from a person who 31.19 was not the record owner of the real estate to the grantee or 31.20 transferee named in such instrument shall be deemed a source of 31.21 title "of record at least 40 years" within the meaning of 31.22 subdivision 1 only if, during the period of 40 years after it 31.23 was recorded, the following two conditions are fulfilled: (1) 31.24 another instrument was recorded which purports to transfer a fee 31.25 simple title from said grantee or transferee to another person 31.26 and (2) no instrument was recorded which purports to be or 31.27 confirm a transfer of any interest in the real estate by or from 31.28 whoever was the record owner in fee simple immediately before 31.29 the commencement of said period of 40 years. The purpose of the 31.30 next preceding sentence is to limit the effect of erroneous 31.31 descriptions or accidental conveyances. Insofar as this31.32 subdivision 7 may bar any claim not otherwise barred or31.33 extinguished by this section or by some other statute, it shall31.34 not be effective until June 1, 1960, and it shall not then apply31.35 to any such claim with respect to which a notice has been filed31.36 under the provisions of this section prior to that date. This32.1 subdivision 7 shall not affect any action or proceeding which is32.2 now, or on or before June 1, 1960, shall be, pending in any32.3 court.32.4 Sec. 37. [REPEALER.] 32.5 Minnesota Statutes 2000, sections 508.71, subdivision 7; 32.6 508A.22, subdivision 2; 508A.27; and 508A.351, subdivision 1, 32.7 are repealed. 32.8 Sec. 38. [INSTRUCTION TO REVISOR.] 32.9 (a) The revisor of statutes shall change the headnote for 32.10 Minnesota Statutes, section 508.51, to read "VOLUNTARY 32.11 INSTRUMENT." 32.12 (b) The revisor of statutes shall change the headnote for 32.13 Minnesota Statutes, section 508.421, to read "EXCHANGE 32.14 CERTIFICATE." 32.15 (c) The revisor of statutes shall change the headnote for 32.16 Minnesota Statutes, section 508A.22, to read "EXAMINER'S 32.17 DIRECTIVE; FEES." 32.18 (d) The revisor of statutes shall change the headnote for 32.19 Minnesota Statutes, section 508A.351, to read "CONDOMINIUM 32.20 CERTIFICATE." 32.21 Sec. 39. [EFFECTIVE DATE.] 32.22 (a) Section 1 is effective the day following final 32.23 enactment and applies to all easements, conditions, 32.24 restrictions, and other servitudes created before, on, or after 32.25 the effective date. 32.26 (b) Section 1 does not affect an action or proceeding 32.27 involving the validity of an easement, condition, restriction, 32.28 or other servitude if: 32.29 (1) the action or proceeding is pending as of the effective 32.30 date of section 1, or is commenced before February 1, 2002; and 32.31 (2) a notice of the pendency of the action or proceeding is 32.32 recorded or filed before February 1, 2002, in the office of the 32.33 county recorder or registrar of titles of the county in which 32.34 the property affected by the action or proceeding is located.