2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 02/26/2004 | |
1st Engrossment | Posted on 03/10/2004 | |
2nd Engrossment | Posted on 03/15/2004 |
1.1 A bill for an act 1.2 relating to commerce; regulating real estate brokers 1.3 and salespersons; making various changes in real 1.4 property law; recodifying the laws and rules 1.5 regulating these licensees; making technical and 1.6 conforming changes; prohibiting unreasonable delays in 1.7 mortgage loan closings; amending Minnesota Statutes 1.8 2002, sections 58.13, subdivision 1; 58.16, 1.9 subdivisions 2, 4; 82.17, subdivision 4, by adding 1.10 subdivisions; 82.19, subdivisions 3, 5, by adding 1.11 subdivisions; 82.195; 82.196; 82.197; 82.20, 1.12 subdivisions 3, 4, 8, by adding subdivisions; 82.21, 1.13 by adding subdivisions; 82.22, subdivisions 6, 8, 12, 1.14 13, by adding subdivisions; 82.24, subdivisions 3, 5, 1.15 by adding subdivisions; 82.27, by adding a 1.16 subdivision; 513.55, subdivision 1; 513.56, by adding 1.17 a subdivision; 515B.4-101; 515B.4-102; 515B.4-106; 1.18 515B.4-107; 515B.4-108; 559.21, subdivision 4; 1.19 proposing coding for new law in Minnesota Statutes, 1.20 chapters 82; 325F; 559; repealing Minnesota Statutes 1.21 2002, sections 58.02, subdivision 24; 82.22, 1.22 subdivision 9; Minnesota Rules, parts 2800.0100; 1.23 2800.0200; 2800.0300; 2800.1100; 2800.1200; 2800.1300; 1.24 2800.1400; 2800.1500; 2800.1600; 2800.1700; 2800.1750; 1.25 2800.1751; 2800.1800; 2800.1900; 2800.2000; 2800.2100; 1.26 2800.2150; 2805.0100; 2805.0200; 2805.0300; 2805.0400; 1.27 2805.0500; 2805.0600; 2805.0700; 2805.0800; 2805.0900; 1.28 2805.1000; 2805.1100; 2805.1300; 2805.1400; 2805.1500; 1.29 2805.1600; 2805.1700; 2805.1800; 2805.1900; 2805.2000. 1.30 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.31 ARTICLE 1 1.32 CHANGES IN REAL ESTATE 1.33 MORTGAGE LENDING LAW 1.34 Section 1. Minnesota Statutes 2002, section 58.13, 1.35 subdivision 1, is amended to read: 1.36 Subdivision 1. [GENERALLY.] No person acting as a 1.37 residential mortgage originator or servicer, including a person 1.38 required to be licensed under this chapter, and no person exempt 2.1 from the licensing requirements of this chapter under section 2.2 58.04, shall: 2.3 (1) fail to maintain a trust account to hold trust funds 2.4 received in connection with a residential mortgage loan; 2.5 (2) fail to deposit all trust funds into a trust account 2.6 within three business days of receipt; commingle trust funds 2.7 with funds belonging to the licensee or exempt person; or use 2.8 trust account funds for any purpose other than that for which 2.9 they are received; 2.10 (3) unreasonably delay the processing of a residential 2.11 mortgage loan application, or the closing of a residential 2.12 mortgage loan. For purposes of this clause, evidence of 2.13 unreasonable delay includes but is not limited to those factors 2.14 identified in section 47.206, subdivision 7, clause (d); 2.15 (4) fail to disburse funds according to its contractual or 2.16 statutory obligations; 2.17 (5) fail to perform in conformance with its written 2.18 agreements with borrowers, investors, other licensees, or exempt 2.19 persons; 2.20 (6) charge a fee for a product or service where the product 2.21 or service is not actually provided, or misrepresent the amount 2.22 charged by or paid to a third party for a product or service; 2.23 (7) fail to comply with sections 345.31 to 345.60, the 2.24 Minnesota unclaimed property law; 2.25 (8) violate any provision of any other applicable state or 2.26 federal law regulating residential mortgage loans including, 2.27 without limitation, sections 47.20 to 47.208; 2.28 (9) make or cause to be made, directly or indirectly, any 2.29 false, deceptive, or misleading statement or representation in 2.30 connection with a residential loan transaction including, 2.31 without limitation, a false, deceptive, or misleading statement 2.32 or representation regarding the borrower's ability to qualify 2.33 for any mortgage product; 2.34 (10) conduct residential mortgage loan business under any 2.35 name other than that under which the license or certificate of 2.36 exemption was issued; 3.1 (11) compensate, whether directly or indirectly, coerce or 3.2 intimidate an appraiser for the purpose of influencing the 3.3 independent judgment of the appraiser with respect to the value 3.4 of real estate that is to be covered by a residential mortgage 3.5 or is being offered as security according to an application for 3.6 a residential mortgage loan; 3.7 (12) issue any document indicating conditional 3.8 qualification or conditional approval for a residential mortgage 3.9 loan, unless the document also clearly indicates that final 3.10 qualification or approval is not guaranteed, and may be subject 3.11 to additional review; 3.12 (13) make or assist in making any residential mortgage loan 3.13 with the intent that the loan will not be repaid and that the 3.14 residential mortgage originator will obtain title to the 3.15 property through foreclosure; 3.16 (14) provide or offer to provide for a borrower, any 3.17 brokering or lending services under an arrangement with a person 3.18 other than a licensee or exempt person, provided that a person 3.19 may rely upon a written representation by the residential 3.20 mortgage originator that it is in compliance with the licensing 3.21 requirements of this chapter; 3.22 (15) claim to represent a licensee or exempt person, unless 3.23 the person is an employee of the licensee or exempt person or 3.24 unless the person has entered into a written agency agreement 3.25 with the licensee or exempt person; 3.26 (16) fail to comply with the record-keeping and 3.27 notification requirements identified in section 58.14 or fail to 3.28 abide by the affirmations made on the application for licensure; 3.29 (17) represent that the licensee or exempt person is acting 3.30 as the borrower's agent after providing the nonagency disclosure 3.31 required by section 58.15, unless the disclosure is retracted 3.32 and the licensee or exempt person complies with all of the 3.33 requirements of section 58.16; 3.34 (18) make, provide, or arrange for a residential mortgage 3.35 loan that is of a lower investment grade if the borrower's 3.36 credit score or, if the originator does not utilize credit 4.1 scoring or if a credit score is unavailable, then comparable 4.2 underwriting data, indicates that the borrower may qualify for a 4.3 residential mortgage loan, available from or through the 4.4 originator, that is of a higher investment grade, unless the 4.5 borrower is informed that the borrower may qualify for a higher 4.6 investment grade loan with a lower interest rate and/or lower 4.7 discount points, and consents in writing to receipt of the lower 4.8 investment grade loan. 4.9 For purposes of this section, "investment grade" refers to 4.10 a system of categorizing residential mortgage loans in which the 4.11 loans are: (i) commonly referred to as "prime" or "subprime"; 4.12 (ii) commonly designated by an alphabetical character with "A" 4.13 being the highest investment grade; and (iii) are distinguished 4.14 by interest rate or discount points or both charged to the 4.15 borrower, which vary according to the degree of perceived risk 4.16 of default based on factors such as the borrower's credit, 4.17 including credit score and credit patterns, income and 4.18 employment history, debt ratio, loan-to-value ratio, and prior 4.19 bankruptcy or foreclosure; 4.20 (19) make, publish, disseminate, circulate, place before 4.21 the public, or cause to be made, directly or indirectly, any 4.22 advertisement or marketing materials of any type, or any 4.23 statement or representation relating to the business of 4.24 residential mortgage loans that is false, deceptive, or 4.25 misleading; 4.26 (20) advertise loan types or terms that are not available 4.27 from or through the licensee or exempt person on the date 4.28 advertised, or on the date specified in the advertisement. For 4.29 purposes of this clause, advertisement includes, but is not 4.30 limited to, a list of sample mortgage terms, including interest 4.31 rates, discount points, and closing costs provided by licensees 4.32 or exempt persons to a print or electronic medium that presents 4.33 the information to the public;and4.34 (21) use or employ phrases, pictures, return addresses, 4.35 geographic designations, or other means that create the 4.36 impression, directly or indirectly, that a licensee or other 5.1 person is a governmental agency, or is associated with, 5.2 sponsored by, or in any manner connected to, related to, or 5.3 endorsed by a governmental agency, if that is not the case; or 5.4 (22) violate section 82.176, relating to table funding. 5.5 Sec. 2. Minnesota Statutes 2002, section 58.16, 5.6 subdivision 2, is amended to read: 5.7 Subd. 2. [CONTRACT PROVISIONS.] (a) A residential mortgage 5.8 originator who engages in the activities described in 5.9 subdivision 1 shall enter into a written contract with each 5.10 borrower and shall provide a copy of the written contract to 5.11 each borrower at or before the time of receipt of any fee or 5.12 valuable consideration paid for mortgage origination services. 5.13 The written contract must: 5.14 (1) specifically describe the services to be provided by 5.15 the residential mortgage originator and if the originator 5.16 collects an advance fee, the dates by which the services will be 5.17 performed; 5.18 (2) specifically identify whether the residential mortgage 5.19 originator may receive compensation from sources other than the 5.20 borrower in connection with the loan transaction; 5.21 (3) state the total amount of commission or compensation 5.22 that the borrower agrees to pay for the residential mortgage 5.23 originator's services, or the basis on which the compensation 5.24 will be computed; 5.25 (4) state the maximum rate of interest to be charged on any 5.26 residential mortgage loan obtained; 5.27 (5) contain a statement that notifies the borrower of the 5.28 right to cancel the contract according to subdivision 3 and 5.29 disclose the cancellation rights and procedures provided in 5.30 subdivision 3; and 5.31 (6) disclose, with respect to the 12-month period ending 5.32 ten business days before the date of the contract in question, 5.33 the percentage of the mortgage originator's customers for whom 5.34 loans have actually been funded as a result of the residential 5.35 mortgage originator's services. 5.36 (b) If an advance fee is solicited or received the contract 6.1 must also: 6.2 (1) identify the trust account into which the fees or 6.3 consideration will be deposited; 6.4 (2) set forth the circumstances under which the residential 6.5 mortgage originator will be entitled to disbursement from the 6.6 trust account; and 6.7 (3) set forth the circumstances under which the borrower 6.8 will be entitled to a refund of all or part of the fee. 6.9 Sec. 3. Minnesota Statutes 2002, section 58.16, 6.10 subdivision 4, is amended to read: 6.11 Subd. 4. [TRUST ACCOUNT.] The residential mortgage 6.12 originator shall deposit in a trust account within three 6.13 business days all fees received before the time a loan is 6.14 actually funded. The trust account must be in a financial 6.15 institution located within the state of Minnesota and must be 6.16 controlled by an unaffiliated accountant, attorney, or bank 6.17 officer or employee. 6.18 Sec. 4. [325F.691] [UNREASONABLE DELAY IN MORTGAGE LOAN 6.19 CLOSING.] 6.20 Subdivision 1. [PROHIBITED CONDUCT.] (a) A lender, as 6.21 defined in section 47.206, who causes unreasonable delay in 6.22 processing a loan application beyond the expiration date of an 6.23 interest rate or discount point agreement is liable to the 6.24 borrower for a penalty in an amount not to exceed the borrower's 6.25 actual out-of-pocket damages, including the present value of the 6.26 increased interest costs over the normal life of the loan, or 6.27 specific performance of the agreement. This paragraph applies 6.28 to an agreement entered into after July 1, 2004. 6.29 (b) For purposes of this section, evidence of unreasonable 6.30 delay includes, but is not limited to: 6.31 (1) failure of the lender to return telephone calls or 6.32 otherwise respond to the borrower's inquiries concerning the 6.33 status of the loan; 6.34 (2) the addition by the lender of new requirements for 6.35 processing or approving the loan that were not disclosed to the 6.36 borrower under section 47.206, subdivision 2, clause (3), unless 7.1 the requirements result from governmental agency or secondary 7.2 mortgage market changes, other than changes in interest rates, 7.3 that occur after the date of the agreement; or 7.4 (3) failure by the lender to take actions necessary to 7.5 process or approve the loan within a reasonable period of time, 7.6 if the borrower provided information requested by the lender in 7.7 a timely manner. 7.8 Subd. 2. [ADDITIONAL PENALTY.] In addition to the remedies 7.9 in subdivision 1, a lender is liable to the borrower for $500 7.10 for each unreasonable delay in processing a loan application 7.11 which causes an interest rate or discount point agreement to 7.12 expire before closing. 7.13 Sec. 5. Minnesota Statutes 2002, section 513.55, 7.14 subdivision 1, is amended to read: 7.15 Subdivision 1. [CONTENTS.] (a) Before signing an agreement 7.16 to sell or transfer residential real property, the seller shall 7.17 make a written disclosure to the prospective buyer. The 7.18 disclosure must include all material factspertaining to adverse7.19physical conditions in the propertyof which the seller is aware 7.20 that could adversely and significantly affect: 7.21 (1) an ordinary buyer'suse and enjoyment ofrights and 7.22 interest in the property; or 7.23 (2) any intended use of the property of which the seller is 7.24 aware. 7.25 (b) The disclosure must be made in good faith and based 7.26 upon the best of the seller's knowledge at the time of the 7.27 disclosure. 7.28 Sec. 6. Minnesota Statutes 2002, section 513.56, is 7.29 amended by adding a subdivision to read: 7.30 Subd. 4. [EFFECT ON COMMON LAW.] The limitation on 7.31 disclosure in subdivisions 1 and 2 modifies any common law 7.32 duties with respect to disclosure of material facts. 7.33 Sec. 7. Minnesota Statutes 2002, section 515B.4-101, is 7.34 amended to read: 7.35 515B.4-101 [APPLICABILITY; DELIVERY OF DISCLOSURE 7.36 STATEMENT.] 8.1 (a) Sections 515B.4-101 through 515B.4-118 apply to all 8.2 units subject to this chapter, except as provided in subsection 8.3 (c) or as modified or waived by agreement of purchasers ofathe 8.4 unitwhich is restricted to nonresidential use. For a 8.5 residential unit, the seller may not condition the sale of the 8.6 unit on the buyer agreeing to modify or waive the buyer's 8.7 ten-day right of rescission under section 515B.4-118. 8.8 (b) Subject to subsections (a) and (c), a declarant who 8.9 offers a unit to a purchaser shall deliver to the purchaser a 8.10 current disclosure statement which complies with the 8.11 requirements of section 515B.4-102. The disclosure statement 8.12 shall include any material amendments to the disclosure 8.13 statement made prior to the conveyance of the unit to the 8.14 purchaser. The declarant shall be liable to the purchaser to 8.15 whom it delivered the disclosure statement for any false or 8.16 misleading statement set forth therein or for any omission of a 8.17 material fact therefrom. A disclosure statement is considered 8.18 to have been delivered to a purchaser as of the time it is 8.19 received by one of the purchasers or by a real estate licensee 8.20 representing or assisting one of the purchasers. 8.21 (c) Neither a disclosure statement nor a resale disclosure 8.22 certificate need be prepared or delivered in the case of: 8.23 (1) a gratuitous transfer; 8.24 (2) a transfer pursuant to a court order; 8.25 (3) a transfer to a government or governmental agency; 8.26 (4) a transfer to a secured party by foreclosure or deed in 8.27 lieu of foreclosure; 8.28 (5) an option to purchase a unit, until exercised; 8.29 (6) a transfer to a person who "controls" or is "controlled 8.30 by," the grantor as those terms are defined with respect to a 8.31 declarant under section 515B.1-103(2); 8.32 (7) a transfer by inheritance; 8.33 (8) a transfer of special declarant rights under section 8.34 515B.3-104; or 8.35 (9) a transfer in connection with a change of form of 8.36 common interest community under section 515B.2-123. 9.1 (d) A purchase agreement for a unit shall contain the 9.2 following notice: "The following notice is required by 9.3 Minnesota Statutes. The purchaser is entitled to receive a 9.4 disclosure statement or resale disclosure certificate, as 9.5 applicable. The disclosure statement or resale disclosure 9.6 certificate contains important information regarding the common 9.7 interest community and the purchaser's cancellation rights." 9.8 Sec. 8. Minnesota Statutes 2002, section 515B.4-102, is 9.9 amended to read: 9.10 515B.4-102 [DISCLOSURE STATEMENT; GENERAL PROVISIONS.] 9.11 (a) A disclosure statement shall fully and accurately 9.12 disclose: 9.13 (1) the name and, if available, the number of the common 9.14 interest community; 9.15 (2) the name and principal address of the declarant; 9.16 (3) the number of units in the common interest community 9.17 and a statement that the common interest community is either a 9.18 condominium, cooperative, or planned community; 9.19 (4) a general description of the common interest community, 9.20 including, at a minimum, (i) the number of buildings, (ii) the 9.21 number of dwellings per building, (iii) the type of 9.22 construction, (iv) whether the common interest community 9.23 involves new construction or rehabilitation, (v) whether any 9.24 building was wholly or partially occupied, for any purpose, 9.25 before it was added to the common interest community and the 9.26 nature of the occupancy, and (vi) a general description of any 9.27 roads, trails, or utilities that are located on the common 9.28 elements and that the association or a master association will 9.29 be required to maintain; 9.30 (5) declarant's schedule of commencement and completion of 9.31 construction of any buildings and other improvements that the 9.32 declarant is obligated to build pursuant to section 515B.4-117; 9.33 (6) any expenses or services, not reflected in the budget, 9.34 that the declarant pays or provides, which may become a common 9.35 expense; the projected common expense attributable to each of 9.36 those expenses or services; and an explanation of declarant's 10.1 limited assessment liability under section 515B.3-115, 10.2 subsection (b); 10.3 (7) any initial or special fee due from the purchaser to 10.4 the declarant or the association at closing, together with a 10.5 description of the purpose and method of calculating the fee; 10.6 (8) identification of any liens, defects, or encumbrances 10.7 which will continue to affect the title to a unit or to any real 10.8 property owned by the association after the contemplated 10.9 conveyance; 10.10 (9) a description of any financing offered or arranged by 10.11 the declarant; 10.12 (10) a statement as to whether application has been made 10.13 for any project approvals for the common interest community from 10.14 the Federal National Mortgage Association (FNMA), Federal Home 10.15 Loan Mortgage Corporation (FHLMC), Department of Housing and 10.16 Urban Development (HUD) or Department of Veterans Affairs (VA), 10.17 and which, if any, such final approvals have been received; 10.18 (11) the terms of any warranties provided by the declarant, 10.19 including copies of chapter 327A, and sections 515B.4-112 10.20 through 515B.4-115, and a statement of any limitations on the 10.21 enforcement of warranties or on damages; 10.22 (12) a statement that: (i) within ten days after the 10.23 receipt of a disclosure statement, a purchaser may cancel any 10.24 contract for the purchase of a unit from a declarant; provided, 10.25 that the right to cancel terminates upon the purchaser's 10.26 voluntary acceptance of a conveyance of the unit from the 10.27 declarant; (ii) if a purchaser receives a disclosure statement 10.28 more than ten days before signing a purchase agreement, the 10.29 purchaser cannot cancel the purchase agreement;and(iii) if a 10.30 declarant obligated to deliver a disclosure statement fails to 10.31 deliver a disclosure statement which substantially complies with 10.32 this chapter to a purchaser to whom a unit is conveyed, the 10.33 declarant shall be liable to the purchaser as provided in 10.34 section 515B.4-106(d); and (iv) a disclosure statement is 10.35 considered to have been received by a purchaser as of the time 10.36 that it is received by one of the purchasers or by a real estate 11.1 licensee representing or assisting one of the purchasers; 11.2 (13) a statement disclosing to the extent of the 11.3 declarant's or an affiliate of a declarant's actual knowledge, 11.4 after reasonable inquiry, any unsatisfied judgments or lawsuits 11.5 to which the association is a party, and the status of those 11.6 lawsuits which are material to the common interest community or 11.7 the unit being purchased; 11.8 (14) a statement (i) describing the conditions under which 11.9 earnest money will be held in and disbursed from the escrow 11.10 account, as set forth in section 515B.4-109, (ii) that the 11.11 earnest money will be returned to the purchaser if the purchaser 11.12 cancels the contract pursuant to section 515B.4-106, and (iii) 11.13 setting forth the name and address of the escrow agent; 11.14 (15) a detailed description of the insurance coverage 11.15 provided by the association for the benefit of unit owners, 11.16 including a statement as to which, if any, of the items referred 11.17 to in section 515B.3-113, subsection (b), are insured by the 11.18 association; 11.19 (16) any current or expected fees or charges, other than 11.20 assessments for common expenses, to be paid by unit owners for 11.21 the use of the common elements or any other improvements or 11.22 facilities; 11.23 (17) the financial arrangements, including any 11.24 contingencies, which have been made to provide for completion of 11.25 all improvements that the declarant is obligated to build 11.26 pursuant to section 515B.4-118, or a statement that no such 11.27 arrangements have been made; 11.28 (18) in a cooperative: (i) whether the unit owners will be 11.29 entitled for federal and state tax purposes, to deduct payments 11.30 made by the association for real estate taxes and interest paid 11.31 to the holder of a security interest encumbering the 11.32 cooperative; and (ii) a statement as to the effect on the unit 11.33 owners if the association fails to pay real estate taxes or 11.34 payments due the holder of a security interest encumbering the 11.35 cooperative; 11.36 (19) a statement: (i) that real estate taxes for the unit 12.1 or any real property owned by the association are not delinquent 12.2 or, if there are delinquent real estate taxes, describing the 12.3 property for which the taxes are delinquent, stating the amount 12.4 of the delinquent taxes, interest and penalties, and stating the 12.5 years for which taxes are delinquent, and (ii) setting forth the 12.6 amount of real estate taxes, including the amount of any special 12.7 assessment certified for payment with the real estate taxes, due 12.8 and payable with respect to the unit in the year in which the 12.9 disclosure statement is given, if real estate taxes have been 12.10 separately assessed against the unit; 12.11 (20) if the association or the purchaser of the unit will 12.12 be a member of a master association, a statement to that effect, 12.13 and all of the following information with respect to the master 12.14 association: (i) a copy of the declaration, if any (other than 12.15 any CIC plat), the articles of incorporation, bylaws, and rules 12.16 and regulations for the master association, together with any 12.17 amendments thereto; (ii) the name, address and general 12.18 description of the master association, including a general 12.19 description of any other association, unit owners, or other 12.20 persons which are or may become members; (iii) a description of 12.21 any nonresidential use permitted on any property subject to the 12.22 master association; (iv) a statement as to the estimated maximum 12.23 number of associations, unit owners or other persons which may 12.24 become members of the master association, and the degree and 12.25 period of control of the master association by a declarant or 12.26 other person; (v) a description of any facilities intended for 12.27 the benefit of the members of the master association and not 12.28 located on property owned or controlled by a member; (vi) the 12.29 financial arrangements, including any contingencies, which have 12.30 been made to provide for completion of the facilities referred 12.31 to in subsection (v), or a statement that no arrangements have 12.32 been made; (vii) any current balance sheet of the master 12.33 association and a projected or current annual budget, as 12.34 applicable, which budget shall include with respect to the 12.35 master association those items in paragraph (23), clauses (i) 12.36 through (iv); (viii) a description of any expenses or services 13.1 not reflected in the budget, paid for or provided by a declarant 13.2 or a person executing the master declaration, which may become 13.3 an expense of the master association in the future; (ix) a 13.4 description of any powers delegated to and accepted by the 13.5 master association pursuant to section 515B.2-121(f)(2); (x) 13.6 identification of any liens, defects or encumbrances that will 13.7 continue to affect title to property owned or operated by the 13.8 master association for the benefit of its members; (xi) the 13.9 terms of any warranties provided by any person for construction 13.10 of facilities in which the members of the master association 13.11 have or may have an interest, and any known defects in the 13.12 facilities which would violate the standards described in 13.13 section 515B.4-112(b); (xii) a statement disclosing, to the 13.14 extent of the declarant's knowledge, after inquiry of the master 13.15 association, any unsatisfied judgments or lawsuits to which the 13.16 master association is a party, and the status of those lawsuits 13.17 which are material to the master association; (xiii) a 13.18 description of any insurance coverage provided for the benefit 13.19 of its members by the master association; and (xiv) any current 13.20 or expected fees or charges, other than assessments by the 13.21 master association, to be paid by members of the master 13.22 association for the use of any facilities intended for the 13.23 benefit of the members; 13.24 (21) a statement as to whether the unit will be 13.25 substantially completed at the time of conveyance to a 13.26 purchaser, and if not substantially completed, who is 13.27 responsible to complete and pay for the construction of the 13.28 unit; 13.29 (22) a copy of the declaration and any amendments thereto, 13.30 (exclusive of the CIC plat), any other recorded covenants, 13.31 conditions restrictions, and reservations affecting the common 13.32 interest community; the articles of incorporation, bylaws and 13.33 any rules or regulations of the association; any agreement 13.34 excluding or modifying any implied warranties; any agreement 13.35 reducing the statute of limitations for the enforcement of 13.36 warranties; any contracts or leases to be signed by purchaser at 14.1 closing; and a brief narrative description of any contracts or 14.2 leases that are or may be subject to cancellation by the 14.3 association under section 515B.3-105; and 14.4 (23) any current balance sheet for the association; a 14.5 projected annual budget for the association for the year in 14.6 which the first unit is conveyed to a purchaser, and thereafter 14.7 the current annual budget of the association; and a statement 14.8 identifying the party responsible for the preparation of the 14.9 budget. The budget shall include, without limitation: (i) a 14.10 statement of the amount included in the budget as a reserve for 14.11 maintenance, repair and replacement; (ii) a statement of any 14.12 other reserves; (iii) the projected common expense for each 14.13 category of expenditures for the association; and (iv) the 14.14 projected monthly common expense assessment for each type of 14.15 unit. 14.16 (b) A declarant shall promptly amend the disclosure 14.17 statement to reflect any material change in the information 14.18 required by this chapter. 14.19 (c) The master association, within ten days after a request 14.20 by a declarant, or any holder of declarant rights, or the 14.21 authorized representative of any of them, shall furnish the 14.22 information required to be provided by subsection (a)(20). A 14.23 declarant or other person who provides information pursuant to 14.24 subsection (a)(20) is not liable to the purchaser for any 14.25 erroneous information if the declarant or other person: (i) is 14.26 not an affiliate of or related in any way to a person authorized 14.27 to appoint the master association board pursuant to section 14.28 515B.2-121(c)(3), and (ii) has no actual knowledge that the 14.29 information is incorrect. 14.30 Sec. 9. Minnesota Statutes 2002, section 515B.4-106, is 14.31 amended to read: 14.32 515B.4-106 [PURCHASER'S RIGHT TO CANCEL.] 14.33 (a) A person required to deliver a disclosure statement 14.34 pursuant to section 515B.4-101(b) shall provide at least one of 14.35 the purchasers of the unit with a copy of the disclosure 14.36 statement and all amendments thereto before conveyance of the 15.1 unit. If a purchaser is not given a disclosure statement more 15.2 than ten days before execution of the purchase agreement, the 15.3 purchaser may, before conveyance, cancel the purchase agreement 15.4 within ten days after first receiving the disclosure statement. 15.5 If a purchaser is given the disclosure statement more than ten 15.6 days before execution of the purchase agreement, the purchaser 15.7 may not cancel the purchase agreement pursuant to this section. 15.8 For purposes of this section, a disclosure statement, or an 15.9 amendment to it, is considered to have been provided, given, or 15.10 delivered to a purchaser as of the time it is received by one of 15.11 the purchasers or by a real estate licensee assisting or 15.12 representing one of the purchasers. Except as expressly 15.13 provided in this chapter, the ten-day rescission periodcannot15.14 may be modified or waived by agreement of the purchaser. For a 15.15 residential unit, the seller may not condition the sale of the 15.16 unit on the buyer agreeing to modify or waive the buyer's 15.17 ten-day right of rescission under sections 515B.4-101 to 15.18 515B.4-118. 15.19 (b) If an amendment to the disclosure statement materially 15.20 and adversely affects a purchaser, then the purchaser shall have 15.21 ten days after delivery of the amendment to cancel the purchase 15.22 agreement in accordance with this section. 15.23 (c) If a purchaser elects to cancel a purchase agreement 15.24 pursuant to this section, the purchaser may do so by giving 15.25 notice thereof pursuant to section 515B.1-115. Cancellation is 15.26 without penalty, and all payments made by the purchaser before 15.27 cancellation shall be refunded promptly. Notwithstanding 15.28 anything in this section to the contrary, the purchaser's 15.29 cancellation rights under this section terminate upon the 15.30 purchaser's acceptance of a conveyance of the unit. 15.31 (d) If a declarant obligated to deliver a disclosure 15.32 statement fails to deliver to the purchaser a disclosure 15.33 statement which substantially complies with this chapter, the 15.34 declarant shall be liable to the purchaser in the amount of 15.35 $1,000, in addition to any damages or other amounts recoverable 15.36 under this chapter or otherwise. Any action brought under this 16.1 subsection shall be commenced within the time period specified 16.2 in section 515B.4-115, subsection (a). 16.3 Sec. 10. Minnesota Statutes 2002, section 515B.4-107, is 16.4 amended to read: 16.5 515B.4-107 [RESALE OF UNITS.] 16.6 (a) In the event of a resale of a unit by a unit owner 16.7 other than a declarant, unless exempt under section 16.8 515B.4-101(c), the unit owner shall furnish to a purchaser, 16.9 before execution of any purchase agreement for a unit or 16.10 otherwise before conveyance, the following documents relating to 16.11 the association or to the master association, if applicable: 16.12 (1) copies of the declaration (other than any CIC plat), 16.13 the articles of incorporation and bylaws, any rules and 16.14 regulations, and any amendments thereto; 16.15 (2) the organizational and operating documents relating to 16.16 the master association, if any; and 16.17 (3) a resale disclosure certificate from the association 16.18 dated not more than 90 days prior to the date of the purchase 16.19 agreement or the date of conveyance, whichever is earlier, 16.20 containing the information set forth in subsection (b). 16.21 (b) The resale disclosure certificate must be in 16.22 substantially the following form: 16.23 COMMON INTEREST COMMUNITY 16.24 RESALE DISCLOSURE CERTIFICATE 16.25 Name of Common Interest Community:.............................. 16.26 Name of Association:............................................ 16.27 Address of Association:......................................... 16.28 Unit Number(s) (include principal unit and any garage, storage, 16.29 or other auxiliary unit(s)):..................................... 16.30 The following information is furnished by the association 16.31 named above according to Minnesota Statutes, section 515B.4-107. 16.32 1. There is no right of first refusal or other restraint 16.33 on the free alienability of the above unit(s) contained in the 16.34 declaration, bylaws, rules and regulations, or any amendment to 16.35 them, except as follows:........................................ 16.36 ................................................................ 17.1 ................................................................ 17.2 ................................................................ 17.3 2. The following periodic installments of common expense 17.4 assessments and special assessments are payable with respect to 17.5 the above unit(s): 17.6 a. Annual assessment 17.7 installments: $....... Due: ............. 17.8 b. Special assessment 17.9 installments: $....... Due: ............. 17.10 c. Unpaid assessments, fines, or other charges: 17.11 (1) Annual $....... 17.12 (2) Special $....... 17.13 (3) Fines $....... 17.14 (4) Other Charges $....... 17.15 d. The association has/has not (strike one) approved 17.16 a plan for levying certain common expense 17.17 assessments against fewer than all the units 17.18 according to Minnesota Statutes, section 515B.3-115, 17.19 subsection (e). If a plan is approved, a description 17.20 of the plan is attached to this certificate. 17.21 3. In addition to the amounts due under paragraph 2, the 17.22 following additional fees or charges other than assessments are 17.23 payable by unit owners (include late payment charges, user fees, 17.24 etc.):.......................................................... 17.25 ................................................................ 17.26 ................................................................ 17.27 4. There are no extraordinary expenditures approved by the 17.28 association, and not yet assessed, for the current and two 17.29 succeeding fiscal years, except as follows:..................... 17.30 ................................................................ 17.31 ................................................................ 17.32 5. The association has reserved the following amounts for 17.33 maintenance, repair, or replacement:............................ 17.34 ................................................................ 17.35 ................................................................ 17.36 The following portions of these reserves are designated for the 18.1 following specified projects or uses:........................... 18.2 ................................................................ 18.3 6. The following documents are furnished with this 18.4 certificate according to statute: 18.5 a. The most recent regularly prepared balance sheet and 18.6 income and expense statement of the association. 18.7 b. The current budget of the association. 18.8 7. There are no unsatisfied judgments against the 18.9 association, except as follows (identify creditor and amount):.. 18.10 ................................................................ 18.11 ................................................................ 18.12 8. There are no pending lawsuits to which the association 18.13 is a party, except as follows (identify and summarize status):.. 18.14 ................................................................ 18.15 ................................................................ 18.16 ................................................................ 18.17 9. Description of insurance coverages: 18.18 a. The association provides the following insurance 18.19 coverage for the benefit of unit owners: (Reference may be made 18.20 to applicable sections of the declaration or bylaws; however, 18.21 any additional coverages should be described in this space) 18.22 ................................................................ 18.23 ................................................................ 18.24 ................................................................ 18.25 b. The following described fixtures, decorating items, or 18.26 construction items within the unit referred to in Minnesota 18.27 Statutes, section 515B.3-113, subsection (b), are insured by the 18.28 association (check as applicable): 18.29 ..._____Ceiling or wall finishing materials 18.30 ..._____Floor coverings 18.31 ..._____Cabinetry 18.32 ..._____Finished millwork 18.33 ..._____Electrical or plumbing fixtures serving a single unit 18.34 ..._____Built-in appliances 18.35 ..._____Improvements and betterments as originally constructed 18.36 ..._____Additional improvements and betterments installed by 19.1 unit owners 19.2 10. The board of directors of the association has not 19.3 notified the unit owner (i) that any alterations or improvements 19.4 to the unit or to the limited common elements assigned to it 19.5 violate any provision of the declaration; or (ii) that the unit 19.6 is in violation of any governmental statute, ordinance, code, or 19.7 regulation, except as follows:................................... 19.8 ................................................................. 19.9 11. The remaining term of any leasehold estate affecting 19.10 the common interest community and the premises governing any 19.11 extension or renewal of it are as follows:...................... 19.12 ................................................................ 19.13 ................................................................ 19.14 12. In addition to the above, the following matters 19.15 affecting the unit or the unit owner's obligations with respect 19.16 to the unit are deemed material. 19.17 I hereby certify that the foregoing information and 19.18 statements are true and correct as of ............. 19.19 (Date) 19.20 By: ....................... 19.21 Title: ..................... 19.22 (Association representative) 19.23 Address:.................... 19.24 Phone Number:............... 19.25 RECEIPT 19.26 In addition to the foregoing information furnished by the 19.27 association, the unit owner is obligated to furnish to the 19.28 purchaser before execution of any purchase agreement for a unit 19.29 or otherwise before conveyance, copies of the following 19.30 documents relating to the association or to the master 19.31 association (as applicable): the declaration (other than any 19.32 common interest community plat), articles of incorporation, 19.33 bylaws, rules and regulations (if any), and any amendments to 19.34 these documents. Receipt of the foregoing documents, and the 19.35 resale disclosure certificate, is acknowledged by the 19.36 undersigned buyer(s). 20.1 Dated: ............ ......................... 20.2 (Buyer or real estate 20.3 licensee representing or 20.4 assisting a buyer) 20.5 ......................... 20.6 (Buyer or real estate 20.7 licensee representing or 20.8 assisting a buyer) 20.9 (c) If the association is subject to a master association 20.10 to which has been delegated the association's powers under 20.11 section 515B.3-102(a)(2), then the financial information 20.12 required to be disclosed under subsection (b) may be disclosed 20.13 on a consolidated basis. 20.14 (d) The association, within ten days after a request by a 20.15 unit owner, or the unit owner's authorized representative, shall 20.16 furnish the certificate required in subsection (a). The 20.17 association may charge a reasonable fee for furnishing the 20.18 certificate and any association documents related thereto. A 20.19 unit owner providing a certificate pursuant to subsection (a) is 20.20 not liable to the purchaser for any erroneous information 20.21 provided by the association and included in the certificate. 20.22 (e) A purchaser is not liable for any unpaid common expense 20.23 assessments, including special assessments, if any, not set 20.24 forth in the certificate required in subsection (a). A 20.25 purchaser is not liable for the amount by which the annual or 20.26 special assessments exceed the amount of annual or special 20.27 assessments stated in the certificate for assessments payable in 20.28 the year in which the certificate was given, except to the 20.29 extent of any increases subsequently approved in accordance with 20.30 the declaration or bylaws. A unit owner is not liable to a 20.31 purchaser for the failure of the association to provide the 20.32 certificate, or a delay by the association in providing the 20.33 certificate in a timely manner. 20.34 (f) For purposes of this section, a resale disclosure 20.35 certificate or other document is considered furnished to a 20.36 purchaser as of the time it is given to one of the purchasers or 21.1 to a real estate licensee representing or assisting one of the 21.2 purchasers. 21.3 Sec. 11. Minnesota Statutes 2002, section 515B.4-108, is 21.4 amended to read: 21.5 515B.4-108 [PURCHASER'S RIGHT TO CANCEL RESALE.] 21.6 (a) Unless a purchaser is given the information required to 21.7 be delivered by section 515B.4-107, by a delivery method 21.8 described in that section, more than ten days prior to the 21.9 execution of the purchase agreement for the unit the purchaser 21.10 may, prior to the conveyance, cancel the purchase agreement 21.11 within ten days after receiving the information. Except as 21.12 expressly provided in this chapter, the ten-day rescission 21.13 periodcannotmay be modified or waived by agreement of the 21.14 purchaser. For a residential unit, the seller may not condition 21.15 the sale of the unit on the buyer agreeing to modify or waive 21.16 the buyer's ten-day right of rescission under sections 21.17 515B.4-101 to 515B.4-118. 21.18 (b) A purchaser who elects to cancel a purchase agreement 21.19 pursuant to subsection (a), may do so by hand delivering notice 21.20 thereof or mailing notice by postage prepaid United States mail 21.21 to the seller or the agent. Cancellation is without penalty and 21.22 all payments made by the purchaser shall be refunded promptly. 21.23 Sec. 12. Minnesota Statutes 2002, section 559.21, 21.24 subdivision 4, is amended to read: 21.25 Subd. 4. [LAW PREVAILS OVER CONTRACT; PROCEDURE; 21.26 CONDITIONS.] (a) The notice required by this section must be 21.27 given notwithstanding any provisions in the contract to the 21.28 contrary, except that earnest money contracts, purchase 21.29 agreements, and exercised options that are subject to this 21.30 section may, unless by their terms they provide for a longer 21.31 termination period, be terminated on 30 days' notice, or may be 21.32 terminated under section 559.217. The notice must be served 21.33 within the state in the same manner as a summons in the district 21.34 court, and outside of the state, in the same manner, and without 21.35 securing any sheriff's return of not found, making any 21.36 preliminary affidavit, mailing a copy of the notice or doing any 22.1 other preliminary act or thing whatsoever. Service of the 22.2 notice outside of the state may be proved by the affidavit of 22.3 the person making the same, made before an authorized officer 22.4 having a seal, and within the state by such an affidavit or by 22.5 the return of the sheriff of any county therein. 22.6 (b) If a person to be served is a resident individual who 22.7 has departed from the state, or cannot be found in the state; or 22.8 is a nonresident individual or a foreign corporation, 22.9 partnership, or association, service may be made by publication 22.10 as provided in this paragraph. Three weeks' published notice 22.11 has the same effect as personal service of the notice. The 22.12 published notice must comply with subdivision 3 and state (1) 22.13 that the person to be served is allowed 90 days after the first 22.14 date of publication of the notice to comply with the conditions 22.15 of the contract, and (2) that the contract will terminate 90 22.16 days after the first date of publication of the notice, unless 22.17 before the termination date the purchaser complies with the 22.18 notice. If the real estate described in the contract is 22.19 actually occupied, then, in addition to publication, a person in 22.20 possession must be personally served, in like manner as the 22.21 service of a summons in a civil action in state district court, 22.22 within 30 days after the first date of publication of the 22.23 notice. If an address of a person to be served is known, then 22.24 within 30 days after the first date of publication of the notice 22.25 a copy of the notice must be mailed to the person's last known 22.26 address by first class mail, postage prepaid. 22.27 (c) The contract is reinstated if, within the time 22.28 mentioned, the person served: 22.29 (1) complies with the conditions in default; 22.30 (2) if subdivision 1d or 2a applies, makes all payments due 22.31 and owing to the seller under the contract through the date that 22.32 payment is made; 22.33 (3) pays the costs of service as provided in subdivision 22.34 1b, 1c, 1d, or 2a; 22.35 (4) if subdivision 2a applies, pays two percent of the 22.36 amount in default, not including the final balloon payment, any 23.1 taxes, assessments, mortgages, or prior contracts that are 23.2 assumed by the purchaser; and 23.3 (5) pays attorneys' fees as provided in subdivision 1b, 1c, 23.4 1d, or 2a. 23.5 (d) The contract is terminated if the provisions of 23.6 paragraph (c) are not met. 23.7 (e) In the event that the notice was not signed by an 23.8 attorney for the seller and the seller is not present in the 23.9 state, or cannot be found in the state, then compliance with the 23.10 conditions specified in the notice may be made by paying to the 23.11 court administrator of the district court in the county wherein 23.12 the real estate or any part thereof is situated any money due 23.13 and filing proof of compliance with other defaults specified, 23.14 and the court administrator of the district court shall be 23.15 deemed the agent of the seller for such purposes. A copy of the 23.16 notice with proof of service thereof, and the affidavit of the 23.17 seller, the seller's agent or attorney, showing that the 23.18 purchaser has not complied with the terms of the notice, may be 23.19 recorded with the county recorder, and is prima facie evidence 23.20 of the facts stated in it; but this section in no case applies 23.21 to contracts for the sale or conveyance of lands situated in 23.22 another state or in a foreign country. If the notice is served 23.23 by publication, the affidavit must state that the affiant 23.24 believes that the party to be served is not a resident of the 23.25 state, or cannot be found in the state, and either that the 23.26 affiant has mailed a copy of the notice by first class mail, 23.27 postage prepaid, to the party's last known address, or that such 23.28 address is not known to the affiant. 23.29 Sec. 13. [559.217] [DECLARATORY CANCELLATION OF PURCHASE 23.30 AGREEMENT.] 23.31 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 23.32 section, the terms defined in this subdivision have the meanings 23.33 given. 23.34 (b) "Purchase agreement" means an earnest money contract, 23.35 purchase agreement, or exercised option that could be terminated 23.36 under section 559.21, subdivision 4, paragraph (a). 24.1 (c) "Residential real property" means real property, 24.2 including vacant land, occupied by, or intended to be occupied 24.3 by, one to four families as their residence. 24.4 Subd. 2. [USE OF THIS SECTION.] Either the purchaser or 24.5 the seller may cancel a purchase agreement for residential real 24.6 property under this section. 24.7 Subd. 3. [CANCELLATION WITH RIGHT TO CURE.] (a) If a 24.8 default occurs or an unfulfilled condition exists in the terms 24.9 of a purchase agreement for the conveyance of residential real 24.10 property, which does not by its terms terminate or cancel the 24.11 purchase agreement, the purchaser or the seller may initiate a 24.12 cancellation by serving upon the other party to the purchase 24.13 agreement a notice: 24.14 (1) specifying the residential real property that is the 24.15 subject of the purchase agreement; 24.16 (2) specifying the purchase agreement by date and names of 24.17 parties, and the unfulfilled condition or default; and 24.18 (3) stating that the purchase agreement will terminate ten 24.19 days after service of the notice unless prior to the termination 24.20 date the party upon whom the notice is served complies with the 24.21 conditions in default and all obligations of that party under 24.22 the purchase agreement that were required to be performed as of 24.23 the date of service of the notice, including, if applicable, 24.24 completion of the purchase or sale of the residential real 24.25 property according to the terms of the purchase agreement. 24.26 (b) The notice must be served in the manner provided in 24.27 section 559.21, subdivision 4, paragraphs (a) and (b). 24.28 (c) The purchase agreement is canceled unless, within ten 24.29 days after the service of the notice, the party upon whom the 24.30 notice was served fully complies with the conditions in default 24.31 or secures from a court an order suspending the termination. 24.32 Subd. 4. [DECLARATORY CANCELLATION.] (a) If a default 24.33 occurs or an unfulfilled condition exists in the terms of a 24.34 purchase agreement for the conveyance of residential real 24.35 property, which by the terms of the purchase agreement 24.36 terminates or cancels the purchase agreement, either the 25.1 purchaser or the seller may confirm the cancellation by serving 25.2 upon the other party a notice: 25.3 (1) specifying the residential real property that is the 25.4 subject of the purchase agreement; 25.5 (2) specifying the purchase agreement by date and names of 25.6 parties, and the unfulfilled condition or default; and 25.7 (3) stating that the purchase agreement has been terminated. 25.8 (b) The notice must be served in the manner provided in 25.9 section 559.21, subdivision 4, paragraphs (a) and (b). 25.10 (c) The cancellation of the purchase agreement is complete, 25.11 unless, within ten days after the service of the notice, the 25.12 party upon whom the notice was served secures from a court an 25.13 order suspending the termination. 25.14 Subd. 5. [FORM OF NOTICE OF CANCELLATION.] (a) For 25.15 purposes of subdivision 3, the term "notice" means a writing 25.16 stating the information required in subdivision 3, paragraph 25.17 (a), stating the name, address, and telephone number of that 25.18 party serving the notice or of an attorney authorized by such 25.19 party to serve the notice, and including the following 25.20 information in 12-point or larger underlined uppercase type, or 25.21 8-point type if published, or in large legible handwritten 25.22 letters: 25.23 "THIS NOTICE IS TO INFORM YOU THAT BY THIS NOTICE THE 25.24 (SELLER) (PURCHASER) (STRIKE ONE) HAS BEGUN PROCEEDINGS UNDER 25.25 MINNESOTA STATUTES, SECTION 559.217, TO TERMINATE YOUR PURCHASE 25.26 AGREEMENT FOR THE (PURCHASE) (SALE) (STRIKE ONE) OF THE ABOVE 25.27 PROPERTY FOR THE REASONS SPECIFIED IN THIS NOTICE. THE PURCHASE 25.28 AGREEMENT WILL TERMINATE .. DAYS AFTER (SERVICE OF THIS NOTICE 25.29 UPON YOU) (THE FIRST DAY OF PUBLICATION OF THIS NOTICE) (STRIKE 25.30 ONE) UNLESS BEFORE THEN: 25.31 (A) YOU HAVE FULLY COMPLIED WITH ALL OF YOUR OBLIGATIONS 25.32 UNDER THE PURCHASE AGREEMENT THAT WERE REQUIRED TO BE PERFORMED 25.33 AS OF THE DATE OF SERVICE OF THIS NOTICE, INCLUDING WITHOUT 25.34 LIMITATION, THE ITEMS OF DEFAULT SPECIFIED IN THIS NOTICE; OR 25.35 (B) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 25.36 TERMINATION OF THE PURCHASE AGREEMENT BE SUSPENDED UNTIL YOUR 26.1 CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 26.2 SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 26.3 GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES. 26.4 IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 26.5 WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR PURCHASE 26.6 AGREEMENT WILL TERMINATE AT THE END OF THE PERIOD (AND YOU WILL 26.7 LOSE ALL EARNEST MONEY YOU HAVE PAID ON THE PURCHASE AGREEMENT) 26.8 (STRIKE IF NOT APPLICABLE); AND YOU MAY LOSE YOUR RIGHT TO 26.9 ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE. IF YOU HAVE 26.10 ANY QUESTIONS ABOUT THIS NOTICE, CONTACT AN ATTORNEY 26.11 IMMEDIATELY." 26.12 (b) For purposes of subdivision 4, the term "notice" means 26.13 a writing stating the information required in subdivision 4, 26.14 paragraph (a), stating the name, address, and telephone number 26.15 of the party serving the notice or of an attorney authorized by 26.16 that party to serve the notice, and including the following 26.17 information in 12-point or larger underlined uppercase type, or 26.18 8-point type if published, or in large legible handwritten 26.19 letters: 26.20 "THIS NOTICE IS PURSUANT TO MINNESOTA STATUTES, SECTION 26.21 559.217, TO INFORM YOU THAT YOUR PURCHASE AGREEMENT FOR THE 26.22 (PURCHASE) (SALE) (STRIKE ONE) OF THE ABOVE PROPERTY HAS 26.23 TERMINATED FOR THE REASONS SPECIFIED IN THIS NOTICE. THE 26.24 TERMINATION WILL BE FINAL ... DAYS AFTER (SERVICE OF THIS NOTICE 26.25 UPON YOU) (THE FIRST DAY OF PUBLICATION OF THIS NOTICE) (STRIKE 26.26 ONE) UNLESS BEFORE THEN YOU SECURE FROM A DISTRICT COURT AN 26.27 ORDER THAT THE TERMINATION OF THE PURCHASE AGREEMENT BE 26.28 SUSPENDED UNTIL YOUR CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF 26.29 BY TRIAL, HEARING, OR SETTLEMENT. YOUR ACTION MUST SPECIFICALLY 26.30 STATE THOSE FACTS AND GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR 26.31 DEFENSES. 26.32 IF YOU DO NOT OBTAIN SUCH A COURT ORDER WITHIN THE TIME 26.33 PERIOD SPECIFIED IN THIS NOTICE, THE TERMINATION OF YOUR 26.34 PURCHASE AGREEMENT WILL BE FINAL AT THE END OF THE PERIOD (AND 26.35 YOU WILL LOSE ALL EARNEST MONEY YOU HAVE PAID ON THE PURCHASE 26.36 AGREEMENT) (STRIKE IF NOT APPLICABLE); AND YOU MAY LOSE YOUR 27.1 RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE. IF 27.2 YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT AN ATTORNEY 27.3 IMMEDIATELY." 27.4 Subd. 6. [ATTORNEY FEES AND COSTS OF SERVICE.] If the 27.5 party upon whom the notice is served commences a proceeding to 27.6 obtain a court order to suspend the termination of a purchase 27.7 agreement under this section, the court shall award attorney 27.8 fees and costs of service actually expended to the prevailing 27.9 party in an amount not to exceed $1,000. 27.10 Subd. 7. [AFFIDAVIT OF CANCELLATION.] (a) After 27.11 cancellation under this section, the purchase agreement is void 27.12 and of no further force or effect, and any earnest money held 27.13 under the purchase agreement must be distributed to, and become 27.14 the sole property of, the party completing the cancellation of 27.15 the purchase agreement. 27.16 (b) When a cancellation under this section has been 27.17 completed, the party who served the notice, or that party's 27.18 attorney, may execute an affidavit stating that the party caused 27.19 a notice of cancellation to be served upon the other party, that 27.20 the other party neither complied with the actions required in 27.21 the notice, if applicable, nor obtained a court order suspending 27.22 the cancellation, and that the property is residential real 27.23 property. 27.24 (c) A copy of the affidavit of cancellation, when attached 27.25 to a copy of the notice, is prima facie evidence of the facts 27.26 therein stated. 27.27 (d) The affidavit of cancellation, when delivered to a 27.28 person holding earnest money under the purchase agreement, is a 27.29 sufficient basis for that person to release the earnest money to 27.30 the party initiating the cancellation. 27.31 Subd. 8. [ATTORNEY AS AGENT FOR SERVICE.] Any attorney 27.32 authorized to serve the notice of cancellation by a party 27.33 initiating a cancellation under this section is designated as 27.34 the attorney who may receive service as agent for the party 27.35 initiating the cancellation of all summons, complaints, orders, 27.36 and motions made in connection with an action by the party upon 28.1 whom the notice is served to restrain the termination. Service 28.2 in the action may be made upon the party initiating the 28.3 cancellation by mailing a copy of the process to such party or 28.4 to such party's attorney, by first class mail, postage prepaid, 28.5 to the address stated in the notice. 28.6 Sec. 14. [REPEALER.] 28.7 Minnesota Statutes 2002, section 58.02, subdivision 24, is 28.8 repealed. 28.9 Sec. 15. [EFFECTIVE DATE.] 28.10 Sections 1 to 14 are effective August 1, 2004. Section 13 28.11 applies to purchase agreements entered into on or after that 28.12 date. 28.13 ARTICLE 2 28.14 RECODIFICATION 28.15 Section 1. Minnesota Statutes 2002, section 82.17, 28.16 subdivision 4, is amended to read: 28.17 Subd. 4. [REAL ESTATE BROKER; BROKER.] "Real estate 28.18 broker" or "broker" means any person who: 28.19 (a) for another and for commission, fee, or other valuable 28.20 consideration or with the intention or expectation of receiving 28.21 the same directly or indirectly lists, sells, exchanges, buys or 28.22 rents, manages, or offers or attempts to negotiate a sale, 28.23 option, exchange, purchase or rental of an interest or estate in 28.24 real estate, or advertises or holds out as engaged in these 28.25 activities; 28.26 (b) for another and for commission, fee, or other valuable 28.27 consideration or with the intention or expectation of receiving 28.28 the same directly or indirectly negotiates or offers or attempts 28.29 to negotiate a loan, secured or to be secured by a mortgage or 28.30 other encumbrance on real estate, which is not a residential 28.31 mortgage loan as defined by section 58.02, subdivision 18; 28.32 (c) "real estate broker" or "broker" as set forth in clause 28.33 (b) shall not apply to the originating, making, processing, 28.34 selling, or servicing of a loan in connection with the broker's 28.35 ordinary business activities by a mortgagee, lender, or servicer 28.36 approved or certified by the secretary of housing and urban 29.1 development, or approved or certified by the administrator of 29.2 veterans affairs, or approved or certified by the administrator 29.3 of the Farmers Home Administration, or approved or certified by 29.4 the federal Home Loan Mortgage Corporation, or approved or 29.5 certified by the federal National Mortgage Association; 29.6 (d) for another and for commission, fee, or other valuable 29.7 consideration or with the intention or expectation of receiving 29.8 the same directly or indirectly lists, sells, exchanges, buys, 29.9 rents, manages, offers or attempts to negotiate a sale, option, 29.10 exchange, purchase or rental of any business opportunity or 29.11 business, or its good will, inventory, or fixtures, or any 29.12 interest therein; 29.13(d)(e) for another and for commission, fee, or other 29.14 valuable consideration or with the intention or expectation of 29.15 receiving the same directly or indirectly offers, sells or 29.16 attempts to negotiate the sale of property that is subject to 29.17 the registration requirements of chapter 83, concerning 29.18 subdivided land; 29.19(e)(f) for another and for commission, fee, or other 29.20 valuable consideration or with the intention or expectation of 29.21 receiving the same, promotes the sale of real estate by 29.22 advertising it in a publication issued primarily for this 29.23 purpose, if the person: 29.24 (1) negotiates on behalf of any party to a transaction; 29.25 (2) disseminates any information regarding the property to 29.26 any party or potential party to a transaction subsequent to the 29.27 publication of the advertisement, except that in response to an 29.28 initial inquiry from a potential purchaser, the person may 29.29 forward additional written information regarding the property 29.30 which has been prepared prior to the publication by the seller 29.31 or broker or a representative of either; 29.32 (3) counsels, advises, or offers suggestions to the seller 29.33 or a representative of the seller with regard to the marketing, 29.34 offer, sale, or lease of the real estate, whether prior to or 29.35 subsequent to the publication of the advertisement; 29.36 (4) counsels, advises, or offers suggestions to a potential 30.1 buyer or a representative of the seller with regard to the 30.2 purchase or rental of any advertised real estate; or 30.3 (5) engages in any other activity otherwise subject to 30.4 licensure under this chapter; 30.5(f)(g) engages wholly or in part in the business of 30.6 selling real estate to the extent that a pattern of real estate 30.7 sales is established, whether or not the real estate is owned by 30.8 the person. A person shall be presumed to be engaged in the 30.9 business of selling real estate if the person engages as 30.10 principal in five or more transactions during any 12-month 30.11 period, unless the person is represented by a licensed real 30.12 estate broker or salesperson. 30.13 Sec. 2. Minnesota Statutes 2002, section 82.17, is amended 30.14 by adding a subdivision to read: 30.15 Subd. 13. [BUSINESS OF FINANCIAL PLANNING.] "Business of 30.16 financial planning" means providing, or offering to provide, 30.17 financial planning services or financial counseling or advice, 30.18 on a group or individual basis. A person who, on 30.19 advertisements, cards, signs, circulars, letterheads, or in any 30.20 other manner, indicates that the person is a "financial planner," 30.21 "financial counselor," "financial adviser," "investment 30.22 counselor," "estate planner," "investment adviser," "financial 30.23 consultant," or any other similar designation or title or 30.24 combination thereof, is considered to be representing himself or 30.25 herself to be engaged in the business of financial planning. 30.26 Sec. 3. Minnesota Statutes 2002, section 82.17, is amended 30.27 by adding a subdivision to read: 30.28 Subd. 14. [ELECTRONIC AGENT.] "Electronic agent" means a 30.29 computer program or an electronic or other automated means used 30.30 independently to initiate an action or respond to electronic 30.31 records or performances, in whole or in part, without review or 30.32 action by an individual. 30.33 Sec. 4. Minnesota Statutes 2002, section 82.17, is amended 30.34 by adding a subdivision to read: 30.35 Subd. 15. [ELECTRONIC RECORD.] "Electronic record" means a 30.36 record created, generated, sent, communicated, received, or 31.1 stored by electronic means. 31.2 Sec. 5. Minnesota Statutes 2002, section 82.17, is amended 31.3 by adding a subdivision to read: 31.4 Subd. 16. [ELECTRONIC SIGNATURE.] "Electronic signature" 31.5 means an electronic sound, symbol, or process attached to or 31.6 logically associated with a record and executed or adopted by a 31.7 person with the intent to sign the record. 31.8 Sec. 6. Minnesota Statutes 2002, section 82.17, is amended 31.9 by adding a subdivision to read: 31.10 Subd. 17. [LICENSEE.] "Licensee" means a person duly 31.11 licensed under this chapter. 31.12 Sec. 7. Minnesota Statutes 2002, section 82.17, is amended 31.13 by adding a subdivision to read: 31.14 Subd. 18. [LOAN BROKER.] "Loan broker" means a licensed 31.15 real estate broker or salesperson who, for another and for a 31.16 commission, fee, or other valuable consideration or with the 31.17 intention or expectation of receiving the same, directly or 31.18 indirectly, negotiates or offers or attempts to negotiate a loan 31.19 secured or to be secured by a mortgage or other encumbrance on 31.20 real estate, or represents himself or herself or otherwise holds 31.21 himself or herself out as a licensed real estate broker or 31.22 salesperson, either in connection with any transaction in which 31.23 he or she directly or indirectly negotiates or offers or 31.24 attempts to negotiate a loan, or in connection with the conduct 31.25 of his or her ordinary business activities as a loan broker. 31.26 "Loan broker" does not include a licensed real estate 31.27 broker or salesperson who, in the course of representing a 31.28 purchaser or seller of real estate, incidentally assists the 31.29 purchaser or seller in obtaining financing for the real property 31.30 in question if the licensee does not receive a separate 31.31 commission, fee, or other valuable consideration for this 31.32 service. 31.33 Sec. 8. Minnesota Statutes 2002, section 82.17, is amended 31.34 by adding a subdivision to read: 31.35 Subd. 19. [OVERPAYMENT.] "Overpayment" means any payment 31.36 of money in excess of a statutory fee or for a license for which 32.1 a person does not qualify. 32.2 Sec. 9. Minnesota Statutes 2002, section 82.17, is amended 32.3 by adding a subdivision to read: 32.4 Subd. 20. [OVERRIDE CLAUSE.] "Override clause" means a 32.5 provision in a listing agreement or similar instrument allowing 32.6 the broker to receive compensation when, after the listing 32.7 agreement has expired, the property is sold to persons with whom 32.8 a broker or salesperson had negotiated or exhibited the property 32.9 prior to the expiration of the listing agreement. 32.10 Sec. 10. Minnesota Statutes 2002, section 82.17, is 32.11 amended by adding a subdivision to read: 32.12 Subd. 21. [PRIMARY BROKER.] "Primary broker" means the 32.13 broker on whose behalf salespersons are licensed to act pursuant 32.14 to section 82.20, subdivision 6. In the case of a corporation 32.15 licensed as a broker, "primary broker" means each officer of the 32.16 corporation who is individually licensed to act as broker for 32.17 the corporation. In the case of a partnership, "primary broker" 32.18 means each partner licensed to act as a broker for the 32.19 partnership. 32.20 Sec. 11. Minnesota Statutes 2002, section 82.17, is 32.21 amended by adding a subdivision to read: 32.22 Subd. 22. [PROTECTIVE LIST.] "Protective list" means the 32.23 written list of names and addresses of prospective purchasers 32.24 with whom a licensee has negotiated the sale or rental of the 32.25 property or to whom a licensee has exhibited the property before 32.26 the expiration of the listing agreement. For the purposes of 32.27 this subdivision, "property" means the property that is the 32.28 subject of the listing agreement in question. 32.29 Sec. 12. Minnesota Statutes 2002, section 82.17, is 32.30 amended by adding a subdivision to read: 32.31 Subd. 23. [RENTAL SERVICE.] "Rental service" means a 32.32 person who gathers and catalogs information concerning 32.33 apartments or other units of real estate available for rent, and 32.34 who, for a fee, provides information intended to meet the 32.35 individual needs of specifically identified lessors or 32.36 prospective lessees. "Rental service" does not apply to 33.1 newspapers or other periodicals with a general circulation or 33.2 individual listing contracts between an owner or lessor of 33.3 property and a licensee. 33.4 Sec. 13. Minnesota Statutes 2002, section 82.17, is 33.5 amended by adding a subdivision to read: 33.6 Subd. 24. [SPONSOR.] "Sponsor" means a person offering or 33.7 providing real estate education. 33.8 Sec. 14. Minnesota Statutes 2002, section 82.19, 33.9 subdivision 3, is amended to read: 33.10 Subd. 3. [COMMISSION-SPLITTING, REBATES, AND FEES.] No 33.11 real estate broker, salesperson, or closing agents shall offer, 33.12 pay, or give, and no person shall accept, any compensation or 33.13 other thing of value from any real estate broker, salesperson, 33.14 or closing agents by way of commission-splitting, rebate, 33.15 finder's fees, or otherwise, in connection with any real estate 33.16 or business opportunity transaction. This subdivision does not 33.17 apply to transactions (1) between a licensed real estate broker 33.18 or salesperson and theperson by whom the broker or salesperson33.19is engaged to purchase or sell real estate or business33.20opportunityparties to the transaction, (2) among persons 33.21 licensed as provided herein, (3) between a licensed real estate 33.22 broker or salesperson and persons from other jurisdictions 33.23 similarly licensed in that jurisdiction, (4) involving timeshare 33.24 or other recreational lands where the amount offered or paid 33.25 does not exceed $150, and payment is not conditioned upon any 33.26 sale but is made merely for providing the referral and the 33.27 person paying the fee is bound by any representations the person 33.28 receiving the fee makes, and (5) involving a person who receives 33.29 a referral fee from a person or an agent of a person licensed 33.30 under this section, provided that in any 12-month period, no 33.31 recipient may earn more than the value of one month's rent, that 33.32 the recipient is a resident of the property or has lived there 33.33 within 60 days of the payment of the fee, and that the person 33.34 paying the fee is bound by any representations made by the 33.35 recipient of the fee. A licensed real estate broker or 33.36 salesperson may assign or direct that commissions or other 34.1 compensation earned in connection with any real estate or 34.2 business opportunity transaction be paid to a corporation, 34.3 limited liability company, or sole proprietorship of which the 34.4 licensed real estate broker or salesperson is the sole owner. 34.5 Sec. 15. Minnesota Statutes 2002, section 82.19, 34.6 subdivision 5, is amended to read: 34.7 Subd. 5. [DISCLOSURE REGARDING REPRESENTATION OF PARTIES.] 34.8 (a) No person licensed pursuant to this chapter or who otherwise 34.9 acts as a real estate broker or salesperson shall fail to 34.10 provide at the first substantive contact with a consumer in a 34.11 residential real property transaction an agency disclosure form 34.12 as set forth in section 82.197. 34.13 (b) The seller may, in the listing agreement, authorize the 34.14 seller's broker to disburse part of the broker's compensation to 34.15 other brokers, including the buyer's brokers solely representing 34.16 the buyer.A broker representing a buyer shall make known to34.17the seller or the seller's agent the fact of the agency34.18relationship before any showing or negotiations are initiated.34.19 Sec. 16. Minnesota Statutes 2002, section 82.19, is 34.20 amended by adding a subdivision to read: 34.21 Subd. 10. [PROHIBITION ON GUARANTEEING FUTURE 34.22 PROFITS.] Licensees shall not, with respect to the sale or lease 34.23 of real property, guarantee or affirmatively encourage another 34.24 person to guarantee future profits or earnings that may result 34.25 from the purchase or lease of the real property in question 34.26 unless the guarantee and the assumptions upon which it is based 34.27 are fully disclosed and contained in the contract, purchase 34.28 agreement, or other instrument of sale or lease. 34.29 Sec. 17. Minnesota Statutes 2002, section 82.19, is 34.30 amended by adding a subdivision to read: 34.31 Subd. 11. [PROHIBITION AGAINST DISCOURAGING USE OF 34.32 ATTORNEY.] Licensees shall not discourage prospective parties to 34.33 a real estate transaction from seeking the services of an 34.34 attorney. 34.35 Sec. 18. Minnesota Statutes 2002, section 82.19, is 34.36 amended by adding a subdivision to read: 35.1 Subd. 12. [FRAUDULENT, DECEPTIVE, AND DISHONEST 35.2 PRACTICES.] (a) [PROHIBITIONS.] For the purposes of section 35.3 82.32, subdivision 1, clause (b), the following acts and 35.4 practices constitute fraudulent, deceptive, or dishonest 35.5 practices: 35.6 (1) act on behalf of more than one party to a transaction 35.7 without the knowledge and consent of all parties; 35.8 (2) act in the dual capacity of licensee and undisclosed 35.9 principal in any transaction; 35.10 (3) receive funds while acting as principal which funds 35.11 would constitute trust funds if received by a licensee acting as 35.12 an agent, unless the funds are placed in a trust account. Funds 35.13 need not be placed in a trust account if a written agreement 35.14 signed by all parties to the transaction specifies a different 35.15 disposition of the funds, in accordance with section 82.27, 35.16 subdivision 1; 35.17 (4) violate any state or federal law concerning 35.18 discrimination intended to protect the rights of purchasers or 35.19 renters of real estate; 35.20 (5) make a material misstatement in an application for a 35.21 license or in any information furnished to the commissioner; 35.22 (6) procure or attempt to procure a real estate license for 35.23 himself or herself or any person by fraud, misrepresentation, or 35.24 deceit; 35.25 (7) represent membership in any real estate-related 35.26 organization in which the licensee is not a member; 35.27 (8) advertise in any manner that is misleading or 35.28 inaccurate with respect to properties, terms, values, policies, 35.29 or services conducted by the licensee; 35.30 (9) make any material misrepresentation or permit or allow 35.31 another to make any material misrepresentation; 35.32 (10) make any false or misleading statements, or permit or 35.33 allow another to make any false or misleading statements, of a 35.34 character likely to influence, persuade, or induce the 35.35 consummation of a transaction contemplated by this chapter; 35.36 (11) fail within a reasonable time to account for or remit 36.1 any money coming into the licensee's possession which belongs to 36.2 another; 36.3 (12) commingle with his or her own money or property trust 36.4 funds or any other money or property of another held by the 36.5 licensee; 36.6 (13) demand from a seller a commission to compensation 36.7 which the licensee is not entitled, knowing that he or she is 36.8 not entitled to the commission compensation; 36.9 (14) pay or give money or goods of value to an unlicensed 36.10 person for any assistance or information relating to the 36.11 procurement by a licensee of a listing of a property or of a 36.12 prospective buyer of a property (this item does not apply to 36.13 money or goods paid or given to the parties to the transaction); 36.14 (15) fail to maintain a trust account at all times, as 36.15 provided by law; 36.16 (16) engage, with respect to the offer, sale, or rental of 36.17 real estate, in an anticompetitive activity; 36.18 (17) represent on advertisements, cards, signs, circulars, 36.19 letterheads, or in any other manner, that he or she is engaged 36.20 in the business of financial planning unless he or she provides 36.21 a disclosure document to the client. The document must be 36.22 signed by the client and a copy must be left with the client. 36.23 The disclosure document must contain the following: 36.24 (i) the basis of fees, commissions, or other compensation 36.25 received by him or her in connection with rendering of financial 36.26 planning services or financial counseling or advice in the 36.27 following language: 36.28 "My compensation may be based on the following: 36.29 (a) ... commissions generated from the products I sell you; 36.30 (b) ... fees; or 36.31 (c) ... a combination of (a) and (b). [Comments]"; 36.32 (ii) the name and address of any company or firm that 36.33 supplies the financial services or products offered or sold by 36.34 him or her in the following language: 36.35 "I am authorized to offer or sell products and/or services 36.36 issued by or through the following firm(s): 37.1 [List] 37.2 The products will be traded, distributed, or placed through 37.3 the clearing/trading firm(s) of: 37.4 [List]"; 37.5 (iii) the license(s) held by the person under this chapter 37.6 or chapter 60A or 80A in the following language: 37.7 "I am licensed in Minnesota as a(n): 37.8 (a) ... insurance agent; 37.9 (b) ... securities agent or broker/dealer; 37.10 (c) ... real estate broker or salesperson; 37.11 (d) ... investment adviser"; and 37.12 (iv) the specific identity of any financial products or 37.13 services, by category, for example mutual funds, stocks, or 37.14 limited partnerships, the person is authorized to offer or sell 37.15 in the following language: 37.16 "The license(s) entitles me to offer and sell the following 37.17 products and/or services: 37.18 (a) ... securities, specifically the following: [List]; 37.19 (b) ... real property; 37.20 (c) ... insurance; and 37.21 (d) ... other: [List]." 37.22 (b) [DETERMINING VIOLATION.] A licensee shall be deemed to 37.23 have violated this section if the licensee has been found to 37.24 have violated sections 325D.49 to 325D.66, by a final decision 37.25 or order of a court of competent jurisdiction. 37.26 (c) [COMMISSIONER'S AUTHORITY.] Nothing in this section 37.27 limits the authority of the commissioner to take actions against 37.28 a licensee for fraudulent, deceptive, or dishonest practices not 37.29 specifically described in this section. 37.30 Sec. 19. [82.191] [COMPENSATION.] 37.31 Subdivision 1. [LICENSEE TO RECEIVE ONLY FROM BROKER.] A 37.32 licensee shall not accept a commission compensation or other 37.33 valuable consideration for the performance of any acts requiring 37.34 a real estate license from any person except the real estate 37.35 broker to whom the licensee is licensed or to whom the licensee 37.36 was licensed at the time of the transaction. 38.1 Subd. 2. [UNDISCLOSED COMPENSATION.] A licensee shall not 38.2 accept, give, or charge any undisclosed compensation or realize 38.3 any direct or indirect remuneration that inures to the benefit 38.4 of the licensee on an expenditure made for a principal. 38.5 Subd. 3. [LIMITATION ON BROKER WHEN TRANSACTION NOT 38.6 COMPLETED.] When the owner fails or is unable to consummate a 38.7 real estate transaction, through no fault of the purchaser, the 38.8 listing broker may not claim any portion of any trust funds 38.9 deposited with the broker by the purchaser, absent a separate 38.10 agreement with the purchaser. 38.11 Sec. 20. Minnesota Statutes 2002, section 82.195, is 38.12 amended to read: 38.13 82.195 [LISTING AGREEMENTS.] 38.14Subdivision 1.(a) [REQUIREMENT.] Licensees shall obtain a 38.15 signed listing agreement or other signed written authorization 38.16 from the owner of real property or from another person 38.17 authorized to offer the property for sale or lease before 38.18 advertising to the general public that the real property is 38.19 available for sale or lease. 38.20 For the purposes of this section "advertising" includes 38.21 placing a sign on the owner's property that indicates that the 38.22 property is being offered for sale or lease. 38.23Subd. 2.(b) [CONTENTS.] All listing agreements must be in 38.24 writing and must include: 38.25 (1) a definite expiration date; 38.26 (2) a description of the real property involved; 38.27 (3) the list price and any terms required by the seller; 38.28 (4) the amount of any compensation or commission or the 38.29 basis for computing the commission; 38.30 (5) a clear statement explaining the events or conditions 38.31 that will entitle a broker to a commission; 38.32 (6) information regarding an override clause, if 38.33 applicable, including a statement to the effect that the 38.34 override clause will not be effective unless the licensee 38.35 supplies the seller with a protective list within 72 hours after 38.36 the expiration of the listing agreement; 39.1 (7) the following notice in not less than ten point 39.2 boldface type immediately preceding any provision of the listing 39.3 agreement relating to compensation of the licensee: 39.4 "NOTICE: THE COMPENSATION FOR THE SALE, LEASE, RENTAL, OR 39.5 MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH 39.6 INDIVIDUAL BROKER AND THE BROKER'S CLIENT."; 39.7 (8) for residential property listings, the following "dual 39.8 agency" disclosure statement: 39.9 If a buyer represented by broker wishes to buyyourthe 39.10 seller's property, a dual agency will be created. This means 39.11 that broker will represent bothyouthe seller(s) and the 39.12 buyer(s), and owe the same duties to the buyer(s) that broker 39.13 owes toyouthe seller(s). This conflict of interest will 39.14 prohibit broker from advocating exclusively onyourthe seller's 39.15 behalf. Dual agency will limit the level of representation 39.16 broker can provide. If a dual agency should arise,youthe 39.17 seller(s) will need to agree that confidential information about 39.18 price, terms, and motivation will still be kept confidential 39.19 unlessyouthe seller(s) instruct broker in writing to disclose 39.20 specific information aboutyouthe seller(s). All other 39.21 information will be shared. Broker cannot act as a dual agent 39.22 unless bothyouthe seller(s) and the buyer(s) agree to it. By 39.23 agreeing to a possible dual agency,youthe seller(s) will be 39.24 giving up the right to exclusive representation in an in-house 39.25 transaction. However, ifyouthe seller(s) should decide not to 39.26 agree to a possible dual agency, andyouthe seller(s) want 39.27 broker to representyouthe seller(s),youthe seller(s) may 39.28 give up the opportunity to sellyourthe property to buyers 39.29 represented by broker. 39.30 Seller's Instructions to Broker 39.31 39.32 Having read and understood this information about dual 39.33 agency, seller(s) now instructs broker as follows: 39.34 ....... Seller(s) will agree to a dual agency 39.35 representation and will consider offers made 39.36 by buyers represented by broker. 40.1 40.2 ....... Seller(s) will not agree to a dual agency 40.3 representation and will not consider offers 40.4 made by buyers represented by broker. 40.5 40.6 40.7 ......................... ......................... 40.8 SellerBrokerReal Estate Company Name 40.9 40.10 40.11 ......................... By: .................... 40.12 Seller Salesperson 40.13 40.14 Date: ..................; 40.15 (9) a notice requiring the seller to indicate in writing 40.16 whether it is acceptable to the seller to have the licensee 40.17 arrange for closing services or whether the seller wishes to 40.18 arrange for others to conduct the closing; and 40.19 (10) for residential listings, a notice stating that after 40.20 the expiration of the listing agreement, the seller will not be 40.21 obligated to pay the licensee a fee or commission if the seller 40.22 has executed another valid listing agreement pursuant to which 40.23 the seller is obligated to pay a fee or commission to another 40.24 licensee for the sale, lease, or exchange of the real property 40.25 in question. This notice may be used in the listing agreement 40.26 for any other type of real estate. 40.27Subd. 3.(c) [PROHIBITED PROVISIONS.] Except as otherwise 40.28 provided insubdivision 4,paragraph(b)(d)(ii), licensees 40.29 shall not include in a listing agreement a holdover clause, 40.30 automatic extension, or any similar provision, or an override 40.31 clause the length of which is more than six months after the 40.32 expiration of the listing agreement. 40.33Subd. 4.(d) [OVERRIDE CLAUSES.](a)(i) Licensees shall 40.34 not seek to enforce an override clause unless a protective list 40.35 has been furnished to the seller within 72 hours after the 40.36 expiration of the listing agreement. 41.1(b)(ii) A listing agreement may contain an override clause 41.2 of up to two years in length when used in conjunction with the 41.3 purchase or sale of a business. The length of the override 41.4 clause must be negotiable between the licensee and the seller of 41.5 the business. The protective list provided in connection with 41.6 the override clause must include the written acknowledgment of 41.7 each party named on the protective list, that the business which 41.8 is the subject of the listing agreement was presented to that 41.9 party by the licensee. 41.10Subd. 5.(e) [PROTECTIVE LISTS.] A broker or salesperson 41.11 has the burden of demonstrating that each person on the 41.12 protective list has, during the period of the listing agreement, 41.13 either made an affirmative showing of interest in the property 41.14 by responding to an advertisement or by contacting the broker or 41.15 salesperson involved or has been physically shown the property 41.16 by the broker or salesperson. For the purpose of this section, 41.17 the mere mailing or other distribution by a licensee of 41.18 literature setting forth information about the property in 41.19 question does not, of itself, constitute an affirmative showing 41.20 of interest in the property on the part of a subsequent 41.21 purchaser. 41.22 For listings of nonresidential real property which do not 41.23 contain the notice described insubdivision 2paragraph (b), 41.24 clause (10), the protective list must contain the following 41.25 notice in boldface type: 41.26 "IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE 41.27 PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME APPEARS 41.28 ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS TO BOTH 41.29 BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK COMPETENT 41.30 ADVICE." 41.31 Sec. 21. Minnesota Statutes 2002, section 82.196, is 41.32 amended to read: 41.33 82.196 [BUYER'S BROKER AGREEMENTS.] 41.34Subdivision 1.(a) [REQUIREMENTS.] Licensees shall obtain 41.35 a signed buyer's broker agreement from a buyer before performing 41.36 any acts as a buyer's representative and before a purchase 42.1 agreement is signed. 42.2Subd. 2.(b) [CONTENTS.] All buyer's broker agreements 42.3 must be in writing and must include: 42.4 (1) a definite expiration date; 42.5 (2) the amount of any compensation or commission, or the 42.6 basis for computing the commission; 42.7 (3) a clear statement explaining the services to be 42.8 provided to the buyer by the broker, and the events or 42.9 conditions that will entitle a broker to a commission or other 42.10 compensation; 42.11 (4) a clear statement explaining if the agreement may be 42.12 canceled and the terms under which the agreement may be 42.13 canceled; 42.14 (5) information regarding an override clause, if 42.15 applicable, including a statement to the effect that the 42.16 override clause will not be effective unless the licensee 42.17 supplies the buyer with a protective list within 72 hours after 42.18 the expiration of the buyer's broker agreement; 42.19 (6) the following notice in not less than ten point 42.20 boldface type immediately preceding any provision of the buyer's 42.21 broker agreement relating to compensation of the licensee: 42.22 "NOTICE: THE COMPENSATION FOR THE PURCHASE, LEASE, RENTAL, 42.23 OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH 42.24 INDIVIDUAL BROKER AND THE BROKER'S CLIENT."; 42.25 (7) the following "dual agency" disclosure statement: 42.26 Ifyouthe buyer(s) choose(s) to purchase a property listed 42.27 by broker, a dual agency will be created. This means that 42.28 broker will represent bothyouthe buyer(s) and the seller(s), 42.29 and owe the same duties to the seller(s) that broker owes toyou42.30 the buyer(s). This conflict of interest will prohibit broker 42.31 from advocating exclusively onyourthe buyer's behalf. Dual 42.32 agency will limit the level of representation broker can 42.33 provide. If a dual agency should arise,youthe buyer(s) will 42.34 need to agree that confidential information about price, terms, 42.35 and motivation will still be kept confidential unlessyouthe 42.36 buyer(s) instruct broker in writing to disclose specific 43.1 information aboutyouthe buyer(s). All other information will 43.2 be shared. Broker cannot act as a dual agent unless bothyou43.3 the buyer(s) and the seller(s) agree to it. By agreeing to a 43.4 possible dual agency,youthe buyer(s) will be giving up the 43.5 right to exclusive representation in an in-house transaction. 43.6 However, ifyouthe buyer(s) should decide not to agree to a 43.7 possible dual agency, andyouthe buyer(s) want(s) broker to 43.8 representyouthe buyer(s),youthe buyer(s) may give up the 43.9 opportunity to purchase the properties listed by broker. 43.10 Buyer's Instructions to Broker 43.11 43.12 ....... Buyer(s) will agree to a dual agency representation 43.13 and will consider properties listed by broker. 43.14 43.15 ....... Buyer(s) will not agree to a dual agency 43.16 representation and will not consider 43.17 properties listed by broker. 43.18 43.19 43.20 ......................... ......................... 43.21 BuyerBrokerReal Estate Company Name 43.22 43.23 ......................... By: .................... 43.24 Buyer Salesperson 43.25 43.26 Date: ...................; and 43.27 (8) for buyer's broker agreements which involve residential 43.28 real property, a notice stating that after the expiration of the 43.29 buyer's broker agreement, the buyer will not be obligated to pay 43.30 the licensee a fee or commission if the buyer has executed 43.31 another valid buyer's broker agreement pursuant to which the 43.32 buyer is obligated to pay a fee or commission to another 43.33 licensee for the purchase, lease, or exchange of real property. 43.34Subd. 3.(c) [PROHIBITED PROVISIONS.] Licensees shall not 43.35 include in a buyer's broker agreement a holdover clause, 43.36 automatic extension, or any other similar provision, or an 44.1 override clause the length of which is more than six months 44.2 after the expiration of the buyer's broker agreement. 44.3Subd. 4.(d) [OVERRIDE CLAUSES.] Licensees shall not seek 44.4 to enforce an override clause unless a protective list has been 44.5 furnished to the buyer within 72 hours after the expiration of 44.6 the buyer's broker agreement. 44.7Subd. 5.(e) [PROTECTIVE LISTS.] A licensee has the burden 44.8 of demonstrating that each property on the protective list has 44.9 been shown to the buyer, or specifically brought to the 44.10 attention of the buyer, during the time the buyer's broker 44.11 agreement was in effect. 44.12Subd. 6.(f) [APPLICATION.] This section applies only to 44.13 residential real property transactions. 44.14 Sec. 22. Minnesota Statutes 2002, section 82.197, is 44.15 amended to read: 44.16 82.197 [DISCLOSURE REQUIREMENTS.] 44.17 Subdivision 1. [ADVERTISING.] Each licensee shall identify 44.18 himself or herself as either a broker or an agent salesperson in 44.19 any advertising for the purchase, sale, lease, exchange, 44.20 mortgaging, transfer, or other disposition of real property, 44.21 whether the advertising pertains to the licensee's own property 44.22 or the property of others. 44.23 Subd. 2. [AGENCY DISCLOSURE.] A real estate broker or 44.24 salesperson shall provide to a consumer in the sale and purchase 44.25 of a residential real property transaction at the first 44.26 substantive contact with the consumer an agency disclosure form 44.27 in substantially the form set forth in subdivision 4. The 44.28 agency disclosure form shall be intended to provide a 44.29 description of available options for agency and facilitator 44.30 relationships, and a description of the role of a licensee under 44.31 each option. The agency disclosure form shall provide a 44.32 signature line for acknowledgment of receipt by the 44.33 consumer. The disclosures required by this subdivision apply 44.34 only to residential real property transactions. 44.35Subd. 2. [CREATION OF DUAL AGENCY.] If circumstances44.36create a dual agency situation, the broker must make full45.1disclosure to all parties to the transaction as to the change in45.2relationship of the parties to the broker due to dual agency. A45.3broker, having made full disclosure, must obtain the consent of45.4all parties to these circumstances in residential real property45.5transactions in the purchase agreement in the form set forth45.6below which shall be set off in a boxed format to draw attention45.7to it:45.8Broker represents both the seller(s) and the buyer(s) of45.9the property involved in this transaction, which creates a dual45.10agency. This means that broker and its salespersons owe45.11fiduciary duties to both seller(s) and buyer(s). Because the45.12parties may have conflicting interests, broker and its45.13salespersons are prohibited from advocating exclusively for45.14either party. Broker cannot act as a dual agent in this45.15transaction without the consent of both seller(s) and buyer(s).45.16Seller(s) and buyer(s) acknowledge that:45.17(1) confidential information communicated to broker which45.18regards price, terms, or motivation to buy or sell will remain45.19confidential unless seller(s) or buyer(s) instructs broker in45.20writing to disclose this information. Other information will be45.21shared;45.22(2) broker and its salespersons will not represent the45.23interests of either party to the detriment of the other; and45.24(3) within the limits of dual agency, broker and its45.25salespersons will work diligently to facilitate the mechanics of45.26the sale.45.27With the knowledge and understanding of the explanation45.28above, seller(s) and buyer(s) authorize and instruct broker and45.29its salespersons to act as dual agents in this transaction.45.30 45.31 45.32......................................................45.33SellerBuyer45.34 45.35......................................................45.36SellerBuyer46.1 46.2......................................................46.3DateDate46.4 Subd. 3. [SCOPE AND EFFECT.] Disclosures made in 46.5 accordance with the requirements for disclosure of agency 46.6 relationships set forth in this chapter are sufficient to 46.7 satisfy common law disclosure requirements.In addition, when a46.8principal in the transaction is a licensee or a relative or46.9business associate of the licensee, that fact must be disclosed46.10in writing in addition to any other required disclosures.46.11 Subd. 4. [AGENCY DISCLOSURE FORM.] The agency disclosure 46.12 form shall be in substantially the form set forth below: 46.13 AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS 46.14 Minnesota law requires that early in any relationship, real 46.15 estate brokers or salespersons discuss with consumers what type 46.16 of agency representation or relationship they desire.(1) The 46.17 available options are listed below. This is not a contract. 46.18 This is an agency disclosure form only. If you desire 46.19 representation, you must enter into a written contract according 46.20 to state law (a listing contract or a buyer representation 46.21 contract). Until such time as you choose to enter into a 46.22 written contract for representation, you will be treated as a 46.23 customer and will not receive any representation from the broker 46.24 or salesperson. The broker or salesperson will be acting as a 46.25 Facilitator (see paragraph V below), unless the broker or 46.26 salesperson is representing another party as described below. 46.27 ACKNOWLEDGMENT: I/We acknowledge that I/We have been 46.28 presented with the below-described options. I/We understand 46.29 that until I/We have signed a representation contract, I/We are 46.30 not represented by the broker/salesperson. I/We understand that 46.31 written consent is required for a dual agency relationship. 46.32 THIS IS A DISCLOSURE ONLY, NOT A CONTRACT FOR REPRESENTATION. 46.33 ............... .......... 46.34 Signature Date 46.35 ............... .......... 47.1 Signature Date 47.2 I. 47.3 Seller's Broker: A broker who lists a property, or a 47.4 salesperson who is licensed to the listing broker, 47.5 represents the Seller and acts on behalf of the Seller. A 47.6 Seller's broker owes to the Seller the fiduciary duties 47.7 described below.(2) The broker must also disclose to the 47.8 Buyer material facts as defined in Minnesota Statutes, 47.9 section 82.197, subdivision 6, of which the broker is aware 47.10 that could adversely and significantly affect the Buyer's 47.11 use or enjoyment of the property. If a broker or 47.12 salesperson working with a Buyer as a customer is 47.13 representing the Seller, he or she must act in the Seller's 47.14 best interest and must tell the Seller any information 47.15 disclosed to him or her, except confidential information 47.16 acquired in a facilitator relationship (see paragraph V 47.17 below). In that case, the Buyer will not be represented 47.18 and will not receive advice and counsel from the broker or 47.19 salesperson. 47.20 II. 47.21 Subagent: A broker or salesperson who is working with a 47.22 Buyer but represents the Seller. In this case, the Buyer 47.23 is the broker's customer and is not represented by that 47.24 broker. If a broker or salesperson working with a Buyer as 47.25 a customer is representing the Seller, he or she must act 47.26 in the Seller's best interest and must tell the Seller any 47.27 information that is disclosed to him or her. In that case, 47.28 the Buyer will not be represented and will not receive 47.29 advice and counsel from the broker or salesperson. 47.30 III. 47.31 Buyer's Broker: A Buyer may enter into an agreement for 47.32 the broker or salesperson to represent and act on behalf of 47.33 the Buyer. The broker may represent the Buyer only, and 47.34 not the Seller, even if he or she is being paid in whole or 47.35 in part by the Seller. A Buyer's broker owes to the Buyer 47.36 the fiduciary duties described below.(2) The broker must 48.1 disclose to the Buyer material facts as defined in 48.2 Minnesota Statutes, section 82.197, subdivision 6, of which 48.3 the broker is aware that could adversely and significantly 48.4 affect the Buyer's use or enjoyment of the property. If a 48.5 broker or salesperson working with a Seller as a customer 48.6 is representing the Buyer, he or she must act in the 48.7 Buyer's best interest and must tell the Buyer any 48.8 information disclosed to him or her, except confidential 48.9 information acquired in a facilitator relationship (see 48.10 paragraph V below). In that case, the Seller will not be 48.11 represented and will not receive advice and counsel from 48.12 the broker or salesperson. 48.13 IV. 48.14 Dual Agency-Broker Representing both Seller and Buyer: 48.15 Dual agency occurs when one broker or salesperson 48.16 represents both parties to a transaction, or when two 48.17 salespersons licensed to the same broker each represent a 48.18 party to the transaction. Dual agency requires the 48.19 informed consent of all parties, and means that the broker 48.20 and salesperson owe the same duties to the Seller and the 48.21 Buyer. This role limits the level of representation the 48.22 broker and salespersons can provide, and prohibits them 48.23 from acting exclusively for either party. In a dual 48.24 agency, confidential information about price, terms, and 48.25 motivation for pursuing a transaction will be kept 48.26 confidential unless one party instructs the broker or 48.27 salesperson in writing to disclose specific information 48.28 about him or her. Other information will be shared. Dual 48.29 agents may not advocate for one party to the detriment of 48.30 the other.(3) 48.31 Within the limitations described above, dual agents owe to 48.32 both Seller and Buyer the fiduciary duties described 48.33 below.(2) Dual agents must disclose to Buyers material 48.34 facts as defined in Minnesota Statutes, section 82.197, 48.35 subdivision 6, of which the broker is aware that could 48.36 adversely and significantly affect the Buyer's use or 49.1 enjoyment of the property. 49.2 V. 49.3 Facilitator: A broker or salesperson who performs services 49.4 for a Buyer, a Seller, or both but does not represent 49.5 either in a fiduciary capacity as a Buyer's Broker, 49.6 Seller's Broker, or Dual Agent. THE FACILITATOR BROKER OR 49.7 SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY 49.8 DUTIES LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE 49.9 DUTIES ARE INCLUDED IN A WRITTEN FACILITATOR SERVICES 49.10 AGREEMENT. The facilitator broker or salesperson owes the 49.11 duty of confidentiality to the party but owes no other duty 49.12 to the party except those duties required by law or 49.13 contained in a written facilitator services agreement, if 49.14 any. In the event a facilitator broker or salesperson, 49.15 working with a Buyer, shows a property listed by the 49.16 facilitator broker or salesperson, then the facilitator 49.17 broker or salesperson must act as a Seller's Broker (see 49.18 paragraph I above). In the event a facilitator broker or 49.19 salesperson, working with a Seller, accepts a showing of 49.20 the property by a Buyer being represented by the 49.21 facilitator broker or salesperson, then the facilitator 49.22 broker or salesperson must act as a Buyer's Broker (see 49.23 paragraph III above). 49.24 49.25 49.26 49.27 **************************************************************** 49.28 (1) This disclosure is required by law in any transaction 49.29 involving property occupied or intended to be occupied by one to 49.30 four families as their residence. 49.31 (2) The fiduciary duties mentioned above are listed below 49.32 and have the following meanings: 49.33 Loyalty-broker/salesperson will act only in client(s)' best 49.34 interest. 49.35 Obedience-broker/salesperson will carry out all client(s)' 49.36 lawful instructions. 50.1 Disclosure-broker/salesperson will disclose to client(s) 50.2 all material facts of which broker/salesperson has knowledge 50.3 which might reasonably affect the client's rights and interests. 50.4 Confidentiality-broker/salesperson will keep client(s)' 50.5 confidences unless required by law to disclose specific 50.6 information (such as disclosure of material facts to Buyers). 50.7 Reasonable Care-broker/salesperson will use reasonable care 50.8 in performing duties as an agent. 50.9 Accounting-broker/salesperson will account to client(s) for 50.10 all client(s)' money and property received as agent. 50.11 (3) If Seller(s) decides not to agree to a dual agency 50.12 relationship, Seller(s) may give up the opportunity to sell the 50.13 property to Buyers represented by the broker/salesperson. If 50.14 Buyer(s) decides not to agree to a dual agency relationship, 50.15 Buyer(s) may give up the opportunity to purchase properties 50.16 listed by the broker. 50.17 Subd. 5. [APPLICATIONCREATION OF DUAL AGENCY.]The50.18disclosures required by subdivision 4 apply only to residential50.19real property transactions.If circumstances create a dual 50.20 agency situation, the broker must make full disclosure to all 50.21 parties to the transaction as to the change in relationship of 50.22 the parties to the broker due to dual agency. A broker, having 50.23 made full disclosure, must obtain the consent of all parties to 50.24 these circumstances in residential real property transactions in 50.25 the purchase agreement in the form set forth below which shall 50.26 be set off in a boxed format to draw attention to it: 50.27 Broker represents both the seller(s) and the buyer(s) of 50.28 the property involved in this transaction, which creates a dual 50.29 agency. This means that broker and it salespersons owe 50.30 fiduciary duties to both seller(s) and buyer(s). Because the 50.31 parties may have conflicting interests, broker and its 50.32 salespersons are prohibited from advocating exclusively for 50.33 either party. Broker cannot act as a dual agent in this 50.34 transaction without the consent of both seller(s) and buyer(s). 50.35 Seller(s) and buyer(s) acknowledge that: 50.36 (1) confidential information communicated to broker which 51.1 regards price, terms, or motivation to buy or sell will remain 51.2 confidential unless seller(s) or buyer(s) instructs broker in 51.3 writing to disclose this information. Other information will be 51.4 shared; 51.5 (2) broker and its salespersons will not represent the 51.6 interests of either party to the detriment of the other; and 51.7 (3) within the limits of dual agency, broker and its 51.8 salespersons will work diligently to facilitate the mechanics of 51.9 the sale. 51.10 With the knowledge and understanding of the explanation 51.11 above, seller(s) and buyer(s) authorize and instruct broker and 51.12 its salespersons to act as dual agents in this transaction. 51.13 ............... ............... 51.14 Seller Buyer 51.15 ............... ............... 51.16 Seller Buyer 51.17 ............... ............... 51.18 Date Date 51.19 Subd. 6. [AGENT OF BROKER DISCLOSURE.] A salesperson shall 51.20 only conduct business under the licensed name of and on behalf 51.21 of the broker to whom the salesperson is licensed. An 51.22 individual broker shall only conduct business under the broker's 51.23 licensed name. A broker licensed to a corporation or 51.24 partnership shall only conduct business under the licensed 51.25 corporate or partnership name. A licensee shall affirmatively 51.26 disclose, before the negotiation or consummation of any 51.27 transaction, the licensed name of the broker under whom the 51.28 licensee is authorized to conduct business in accordance with 51.29 this section. 51.30 Subd. 7. [FINANCIAL INTERESTS DISCLOSURE; LICENSEE.] (a) 51.31 Prior to the negotiation or consummation of any transaction, a 51.32 licensee shall affirmatively disclose to the owner of real 51.33 property that the licensee is a real estate broker or agent 51.34 salesperson, and in what capacity the licensee is acting, if the 51.35 licensee directly, or indirectly through a third party, 51.36 purchases for himself or herself or acquires, or intends to 52.1 acquire, any interest in, or any option to purchase, the owner's 52.2 property. 52.3 (b) When a principal in the transaction is a licensee or a 52.4 relative or business associate of the licensee, that fact must 52.5 be disclosed in writing. 52.6 Subd.6.8. [MATERIAL FACTS.] (a) Licensees shall disclose 52.7 to any prospective purchaser all material facts of which the 52.8 licensees are aware, which could adversely and significantly 52.9 affect an ordinary purchaser'suse or enjoyment ofrights and 52.10 interests in the property, or any intended use of the property 52.11 of which the licensees are aware. 52.12 (b) It is not a material fact relating to real property 52.13 offered for saleand no regulatory action shall be brought52.14against a licensee for failure to disclose in any real estate52.15transactionthe fact or suspicion that the property: 52.16 (1) is or was occupied by an owner or occupant who is or 52.17 was suspected to be infected with human immunodeficiency virus 52.18 or diagnosed with acquired immunodeficiency syndrome; 52.19 (2) was the site of a suicide, accidental death, natural 52.20 death, or perceived paranormal activity; or 52.21 (3) is located in a neighborhood containing any adult 52.22 family home, community-based residential facility, or nursing 52.23 home. 52.24 (c) A licensee or employee of the licensee has no duty to 52.25 disclose information regarding an offender who is required to 52.26 register under section 243.166, or about whom notification is 52.27 made under that section, if the broker or salesperson, in a 52.28 timely manner, provides a written notice that information about 52.29 the predatory offender registry and persons registered with the 52.30 registry may be obtained by contacting local law enforcement 52.31 where the property is located or the Department of Corrections. 52.32 (d) A licensee is not required to disclose, except as 52.33 otherwise provided in paragraph (e), information relating to the 52.34 physical condition of the property or any other information 52.35 relating to the real estate transaction, if a written report 52.36 that discloses the information has been prepared by a qualified 53.1 third party and provided to the person. For the purposes of 53.2 this paragraph, "qualified third party" means a federal, state, 53.3 or local governmental agency, or any person whom the broker, 53.4 salesperson, or a party to the real estate transaction 53.5 reasonably believes has the expertise necessary to meet the 53.6 industry standards of practice for the type of inspection or 53.7 investigation that has been conducted by the third party in 53.8 order to prepare the written report and who is acceptable to the 53.9 person to whom the disclosure is being made. 53.10 (e) A licensee shall disclose to the parties to a real 53.11 estate transaction any facts known by the broker or salesperson 53.12 that contradict any information included in a written report, if 53.13 a copy of the report is provided to the licensee, described in 53.14 paragraph (d). 53.15 (f) The limitation on disclosures set forth in paragraphs 53.16 (b) and (c) shall modify any common law duties with respect to 53.17 disclosure of material facts. 53.18 Subd. 9. [NONPERFORMANCE OF ANY PARTY.] If a licensee is 53.19 put on notice by any party to a real estate transaction that the 53.20 party will not perform in accordance with the terms of a 53.21 purchase agreement or other similar written agreement to convey 53.22 real estate, the licensee shall immediately disclose the fact of 53.23 that party's intent not to perform to the other party or parties 53.24 to the transaction. Whenever reasonably possible, the licensee 53.25 shall inform the party who will not perform of the licensee's 53.26 obligation to disclose this fact to the other party or parties 53.27 to the transaction prior to making the disclosure. The 53.28 obligation required by this section shall not apply to notice of 53.29 a party's inability to keep or fulfill any contingency to which 53.30 the real estate transaction has been made subject. 53.31 Sec. 23. Minnesota Statutes 2002, section 82.20, is 53.32 amended by adding a subdivision to read: 53.33 Subd. 2a. [ADDITIONAL BROKER'S LICENSE.] An individual who 53.34 holds a broker's license in his or her own name or for or on 53.35 behalf of a corporation or partnership must be issued an 53.36 additional broker's license only upon demonstrating that the 54.1 additional license is necessary in order to serve a legitimate 54.2 business purpose; that the broker will be capable of supervising 54.3 all salespersons over whom he or she will have supervisory 54.4 responsibility or, in the alternative, that the broker will have 54.5 no supervisory responsibilities under the additional license; 54.6 and that the broker has a substantial ownership interest in each 54.7 corporation or partnership for or on whose behalf he or she 54.8 holds or will hold a broker's license. 54.9 The requirement of a substantial ownership interest does 54.10 not apply where the broker seeking the additional license or 54.11 licenses is an officer of a corporation for or on whose behalf 54.12 the broker already holds a license and the broker is applying 54.13 for the additional license or licenses for or on behalf of an 54.14 affiliated corporation or corporations of which he or she is 54.15 also an officer. For the purpose of this section, "affiliated 54.16 corporation" means a corporation which is directly or indirectly 54.17 controlled by the same persons as the corporation for or on 54.18 whose behalf the broker is already licensed to act. 54.19 For the purposes of this section, a legitimate business 54.20 purpose includes engaging in a different and specialized area of 54.21 real estate or maintaining an existing business name. 54.22 Sec. 24. Minnesota Statutes 2002, section 82.20, 54.23 subdivision 3, is amended to read: 54.24 Subd. 3. [APPLICATION FOR LICENSE; CONTENTS.] (a) Every 54.25 applicant for a license as a real estate broker, real estate 54.26 salesperson, or closing agent shall make an application in 54.27 writing upon forms prepared and furnished by the commissioner. 54.28 Each application shall be signed and sworn to by the applicant 54.29 and shall be accompanied by the license fee required by this 54.30 chapter. 54.31 (b) Each application for a real estate broker license, real 54.32 estate salesperson license, or real estate closing agent license 54.33 shall contain such information as required by the commissioner 54.34 consistent with the administration of the provisions and 54.35 purposes of this chapter. 54.36 (c) Each application for a real estate salesperson license 55.1 shall give the applicant's name, age, residence address, and the 55.2 name and place of business of the real estate broker on whose 55.3 behalf the salesperson is to be acting. 55.4 (d) Each application for a real estate closing agent 55.5 license shall give the applicant's name, age, residence address, 55.6 and the name and place of business of the closing agent. 55.7 (e) The commissioner may require such further information 55.8 as the commissioner deems appropriate to administer the 55.9 provisions and further the purposes of this chapter. 55.10 (f) Applicants for a real estate salesperson license shall 55.11 submit to the commissioner, along with the application for 55.12 licensure, a copy of the course completion certificate for 55.13 courses I, II, and III. 55.14 Sec. 25. Minnesota Statutes 2002, section 82.20, is 55.15 amended by adding a subdivision to read: 55.16 Subd. 3a. [APPLICATION FOR BROKER'S LICENSE.] After 55.17 successful completion of the real estate broker's examination, 55.18 an individual shall have one year from the date of the 55.19 examination to apply for a broker's license, unless the 55.20 individual is a salesperson who remains continuously active in 55.21 the real estate field as a licensee. Failure to apply for the 55.22 broker's license or to remain continuously active in the real 55.23 estate field will necessitate a reexamination. 55.24 Sec. 26. Minnesota Statutes 2002, section 82.20, 55.25 subdivision 4, is amended to read: 55.26 Subd. 4. [CORPORATE AND PARTNERSHIP LICENSES.] (a) A 55.27 corporation applying for a license shall have at least one 55.28 officer individually licensed to act as broker for the 55.29 corporation. The corporation broker's license shall extend no 55.30 authority to act as broker to any person other than the 55.31 corporate entity. Each officer who intends to act as a broker 55.32 shall obtain a license. 55.33 (b) A partnership applying for a license shall have at 55.34 least one partner individually licensed to act as broker for the 55.35 partnership. Each partner who intends to act as a broker shall 55.36 obtain a license. 56.1 (c) Applications for a license made by a corporation shall 56.2 be verified by the president and one other officer. 56.3 Applications made by a partnership shall be verified by at least 56.4 two partners. 56.5 (d) Any partner or officer who ceases to act as broker for 56.6 a partnership or corporation shall notify the commissioner upon 56.7 said termination. The individual licenses of all salespersons 56.8 acting on behalf of a corporation or partnership, are 56.9 automatically ineffective upon the revocation or suspension of 56.10 the license of the partnership or corporation. The commissioner 56.11 may suspend or revoke the license of an officer or partner 56.12 without suspending or revoking the license of the corporation or 56.13 partnership. 56.14 (e) The application of all officers of a corporation or 56.15 partners in a partnership who intend to act as a broker on 56.16 behalf of a corporation or partnership shall accompany the 56.17 initial license application of the corporation or partnership. 56.18 Officers or partners intending to act as brokers subsequent to 56.19 the licensing of the corporation or partnership shall procure an 56.20 individual real estate broker's license prior to acting in the 56.21 capacity of a broker. No corporate officer who maintains a 56.22 salesperson's license may exercise any authority over any trust 56.23 account administered by the broker nor may they be vested with 56.24 any supervisory authority over the broker. 56.25 (f) The corporation or partnership applicant shall make 56.26 available upon request, such records and data required by the 56.27 commissioner for enforcement of this chapter. 56.28 (g) The commissioner may require further information, as 56.29 the commissioner deems appropriate, to administer the provisions 56.30 and further the purposes of this chapter. 56.31 Sec. 27. Minnesota Statutes 2002, section 82.20, is 56.32 amended by adding a subdivision to read: 56.33 Subd. 7a. [AUTOMATIC TRANSFER OF SALESPERSON'S LICENSE.] A 56.34 salesperson may utilize the automatic license transfer 56.35 provisions of subdivision 9, clause (b), if the salesperson 56.36 commences association with the broker to whom the salesperson is 57.1 transferring, as evidenced by the dates of the signatures of 57.2 both brokers on the form prescribed by the commissioner, within 57.3 five days after terminating the salesperson's association with 57.4 the broker from whom the salesperson is transferring, provided 57.5 the salesperson's educational requirements are not past due. 57.6 A salesperson may not utilize the automatic license 57.7 transfer provisions of subdivision 9, clause (b), if the sales 57.8 person has failed to notify the commissioner within ten days of 57.9 any change of information contained in the salesperson's license 57.10 application on file with the commissioner or of a civil 57.11 judgment, disciplinary action, or criminal offense, which notice 57.12 is required pursuant to section 82.20, subdivision 11. 57.13 Sec. 28. Minnesota Statutes 2002, section 82.20, 57.14 subdivision 8, is amended to read: 57.15 Subd. 8. [TIMELY RENEWALS.] (a) Persons whose applications 57.16 have been properly and timely filed who have not received notice 57.17 of denial of renewal are deemed to have been approved for 57.18 renewal and may continue to transact business either as a real 57.19 estate broker, salesperson, or closing agent whether or not the 57.20 renewed license has been received on or before July 1 of the 57.21 renewal year. Application for renewal of a license shall be 57.22 deemed to have been timely filed if received by the commissioner 57.23 by, or mailed with proper postage and postmarked by, June 15 of 57.24 the renewal year. Applications for renewal shall be deemed 57.25 properly filed if made upon forms duly executed and sworn to, 57.26 accompanied by fees prescribed by this chapter and contain any 57.27 information which the commissioner may require. 57.28 (b) Persons who have failed to make a timely application 57.29 for renewal of a license and who have not received the renewal 57.30 license as of July 1 of the renewal year, shall be unlicensed 57.31 until such time as the license has been issued by the 57.32 commissioner and is received. 57.33 Sec. 29. Minnesota Statutes 2002, section 82.20, is 57.34 amended by adding a subdivision to read: 57.35 Subd. 8a. [PROCEDURE.] An application for automatic 57.36 transfer shall be made only on the form prescribed by the 58.1 commissioner. The transfer is ineffective if the form is not 58.2 completed in its entirety. 58.3 The form shall be accompanied by a $10 transfer fee, and 58.4 the license renewal fee, if applicable. Cash will not be 58.5 accepted. 58.6 The signature of the broker from whom the salesperson is 58.7 transferring must predate the signature of the broker to whom 58.8 the salesperson is transferring. The salesperson is unlicensed 58.9 for the period of time between the times and dates of both 58.10 signatures. The broker from whom the salesperson is 58.11 transferring shall sign and date the transfer application upon 58.12 the request of the salesperson and shall destroy the 58.13 salesperson's license immediately. 58.14 Sec. 30. Minnesota Statutes 2002, section 82.20, is 58.15 amended by adding a subdivision to read: 58.16 Subd. 9a. [EFFECTIVE DATE.] (a) The transfer is effective 58.17 when the broker to whom the salesperson is transferring signs 58.18 and dates the transfer application form, provided the 58.19 commissioner receives the form and fee within 72 hours after the 58.20 date and time of the new broker's signature, either by certified 58.21 mail or personal delivery to the commissioner's office. The 58.22 commissioner may accept an application for license transfer made 58.23 by an electronic agent or an electronic record with an 58.24 electronic signature if the commissioner has the capability of 58.25 accepting the application electronically. In the event of a 58.26 delay in mail delivery, an application postmarked within 24 58.27 hours of the date of the signature of the new broker shall be 58.28 deemed timely received. The properly executed automatic 58.29 transfer form serves as a temporary real estate license for no 58.30 more than 45 days. 58.31 (b) The transfer is ineffective if the fee is paid by means 58.32 of a check, draft, or other negotiable or nonnegotiable 58.33 instrument or order of withdrawal drawn on an account with 58.34 insufficient funds. 58.35 (c) The salesperson shall retain the certified mail return 58.36 receipt, if the transfer application is delivered to the 59.1 commissioner by mail, retain a photocopy of the executed 59.2 transfer application, and provide a photocopy of the executed 59.3 transfer application to the broker from whom the salesperson is 59.4 transferring. 59.5 (d) The real estate salesperson automatic transfer must be 59.6 in the form prescribed by the commissioner. 59.7 Sec. 31. Minnesota Statutes 2002, section 82.20, is 59.8 amended by adding a subdivision to read: 59.9 Subd. 11a. [MANDATORY.] Licensees shall notify the 59.10 commissioner of the facts in subdivisions 11b to 11d. 59.11 Sec. 32. Minnesota Statutes 2002, section 82.20, is 59.12 amended by adding a subdivision to read: 59.13 Subd. 11b. [CIVIL JUDGMENT.] Licensees must notify the 59.14 commissioner in writing within ten days of a final adverse 59.15 decision or order of a court, whether or not the decision or 59.16 order is appealed, regarding any proceeding in which the 59.17 licensee was named as a defendant, and which alleged fraud, 59.18 misrepresentation, or the conversion of funds, if the final 59.19 adverse decision relates to the allegations of fraud, 59.20 misrepresentation, or the conversion of funds. 59.21 Sec. 33. Minnesota Statutes 2002, section 82.20, is 59.22 amended by adding a subdivision to read: 59.23 Subd. 11c. [DISCIPLINARY ACTION.] The licensee must notify 59.24 the commissioner in writing within ten days of the suspension or 59.25 revocation of the licensee's real estate or other occupational 59.26 license issued by this state or another jurisdiction. 59.27 Sec. 34. Minnesota Statutes 2002, section 82.20, is 59.28 amended by adding a subdivision to read: 59.29 Subd. 11d. [CRIMINAL OFFENSE.] The licensee must notify 59.30 the commissioner in writing within ten days if the licensee is 59.31 charged with, adjudged guilty of, or enters a plea of guilty or 59.32 nolo contendere to a charge of any felony, or of any gross 59.33 misdemeanor alleging fraud, misrepresentation, conversion of 59.34 funds, or a similar violation of any real estate licensing law. 59.35 Sec. 35. Minnesota Statutes 2002, section 82.20, is 59.36 amended by adding a subdivision to read: 60.1 Subd. 12a. [TEMPORARY BROKER'S PERMIT.] In the event of 60.2 death or incapacity of a broker, the commissioner may issue a 60.3 45-day temporary permit to an individual who has had a minimum 60.4 of two years actual experience as a licensed real estate 60.5 salesperson and who is otherwise reasonably qualified to act as 60.6 a broker. Upon application prior to its expiration, the 45-day 60.7 temporary permit shall be renewed once by the commissioner if 60.8 the applicant demonstrates that he or she has made a good faith 60.9 effort to obtain a broker's license within the preceding 45 days 60.10 and an extension of time will not harm the public interest. 60.11 Only those salespersons licensed to the deceased or 60.12 incapacitated broker at the time of death or incapacity may 60.13 conduct business for or on behalf of the person to whom the 60.14 temporary broker's license was issued. 60.15 Sec. 36. Minnesota Statutes 2002, section 82.20, is 60.16 amended by adding a subdivision to read: 60.17 Subd. 14a. [WITHDRAWAL OF LICENSE OR APPLICATION.] A 60.18 licensee or license applicant may at any time file with the 60.19 commissioner a request to withdraw from the status of licensee 60.20 or to withdraw a pending license application. Withdrawal from 60.21 the status of licensee or withdrawal of the license application 60.22 becomes effective 30 days after receipt of a request to withdraw 60.23 or within a shorter period the commissioner determines unless a 60.24 revocation, suspension, or denial proceeding is pending when the 60.25 request to withdraw is filed or a proceeding to revoke, suspend, 60.26 deny, or to impose conditions upon the withdrawal is instituted 60.27 within 30 days after the request to withdraw is filed. If a 60.28 proceeding is pending or instituted, withdrawal becomes 60.29 effective at the time and upon the conditions the commissioner 60.30 determines by order. If no proceeding is pending or instituted 60.31 and withdrawal automatically becomes effective, the commissioner 60.32 may institute a revocation or suspension proceeding within one 60.33 year after withdrawal became effective and enter a revocation or 60.34 suspension order as of the last date on which the license was in 60.35 effect. 60.36 Sec. 37. [82.201] [COMPUTATION OF TIME.] 61.1 Subdivision 1. [DAYS.] Where performing or doing any act, 61.2 duty, matter, payment, or thing is ordered or directed, and the 61.3 period of time or duration for performing or doing it is 61.4 prescribed and fixed by law, rule, or order, the time, except as 61.5 otherwise provided in subdivision 2, is computed so as to 61.6 exclude the first and include the last day of any such 61.7 prescribed or fixed period or duration of time. When the last 61.8 day of the period falls on Sunday or on any day made a legal 61.9 holiday, by the laws of this state or of the United States, the 61.10 day is omitted from the computation. 61.11 Subd. 2. [MONTHS.] When the lapse of a number of months 61.12 before or after a certain day is required by law, rule, or 61.13 order, the number of months is computed by counting the months 61.14 from the day, excluding the calendar month in which the day 61.15 occurs, and including the day of the month in the last month so 61.16 counted having the same numerical order as the day of the month 61.17 from which the computation is made, unless there be not so many 61.18 days in the last month so counted, in which case the period 61.19 computed shall expire with the last day of the month so counted. 61.20 Sec. 38. Minnesota Statutes 2002, section 82.21, is 61.21 amended by adding a subdivision to read: 61.22 Subd. 5. [CASH NOT ACCEPTED.] All fees must be paid by 61.23 check, draft, credit card, or other negotiable or nonnegotiable 61.24 instrument or order of withdrawal that is drawn against funds 61.25 held by a financial institution. Cash will not be accepted. 61.26 Sec. 39. Minnesota Statutes 2002, section 82.21, is 61.27 amended by adding a subdivision to read: 61.28 Subd. 6. [OVERPAYMENT OF FEES.] An overpayment of a fee 61.29 paid pursuant to this chapter shall be refunded within a 61.30 reasonable time after a letter requesting the refund is received 61.31 by the commissioner and signed by the person making the 61.32 overpayment. 61.33 Refunds shall not be given for other than overpayment of 61.34 fees. A request for a refund of an overpayment must be received 61.35 by the commissioner within six months of the date of deposit or 61.36 it will be forfeited. 62.1 Sec. 40. Minnesota Statutes 2002, section 82.22, is 62.2 amended by adding a subdivision to read: 62.3 Subd. 5a. [WAIVERS.] The commissioner may waive the real 62.4 estate licensing experience requirement for the broker's 62.5 examination. 62.6 (a) An applicant for a waiver shall provide evidence of: 62.7 (1) successful completion of a minimum of 90 quarter 62.8 credits or 270 classroom hours of real estate-related studies; 62.9 (2) a minimum of five consecutive years of practical 62.10 experience in real estate-related areas; or 62.11 (3) successful completion of 30 credits or 90 classroom 62.12 hours and three consecutive years of practical experience in 62.13 real estate-related areas. 62.14 (b) A request for a waiver shall be submitted to the 62.15 commissioner in writing and be accompanied by documents 62.16 necessary to evidence qualification as set forth in paragraph 62.17 (a). 62.18 (c) The waiver will lapse if the applicant fails to 62.19 successfully complete the broker's examination within one year 62.20 from the date of the granting of the waiver. 62.21 Sec. 41. Minnesota Statutes 2002, section 82.22, is 62.22 amended by adding a subdivision to read: 62.23 Subd. 5b. [FAILURE TO RENEW LICENSE.] If a license lapses 62.24 or becomes ineffective due to the licensee's failure to file a 62.25 timely renewal application or otherwise, the commissioner may 62.26 institute a revocation or suspension proceeding within two years 62.27 after the license was last effective and enter a revocation or 62.28 suspension order as of the last date on which the license was in 62.29 effect. 62.30 Sec. 42. Minnesota Statutes 2002, section 82.22, 62.31 subdivision 6, is amended to read: 62.32 Subd. 6. [INSTRUCTION; NEW LICENSES.] (a) Every applicant 62.33 for a salesperson's license shall be required to successfully 62.34 complete a course of study in the real estate field consisting 62.35 of 30 hours of instruction approved by the commissioner before 62.36 taking the examination specified in subdivision 1. Every 63.1 applicant for a salesperson's license shall be required to 63.2 successfully complete an additional course of study in the real 63.3 estate field consisting of 60 hours of instruction approved by 63.4 the commissioner, of which three hours shall consist of training 63.5 in state and federal fair housing laws, regulations, and rules, 63.6 and of which two hours must consist of training in laws and 63.7 regulations on agency representation and disclosure, before 63.8 filing an application for the license. This subdivision does 63.9 not apply to salespeople licensed in Minnesota before July 1, 63.10 1969. 63.11 (b)The commissioner may approve courses of study in the63.12real estate field offered in educational institutions of higher63.13learning in this state or courses of study in the real estate63.14field developed by and offered under the auspices of the63.15National Association of Realtors, its affiliates, or private63.16real estate schools. The commissioner shall not approve any63.17course offered by, sponsored by, or affiliated with any person63.18or company licensed to engage in the real estate business. The63.19commissioner may by rule prescribe the curriculum and63.20qualification of those employed as instructors.63.21(c)An applicant for a broker's license must successfully 63.22 complete a course of study in the real estate field consisting 63.23 of 30 hours of instruction approved by the commissioner, of 63.24 which three hours shall consist of training in state and federal 63.25 fair housing laws, regulations, and rules. The course must have 63.26 been completed within 12 months prior to the date of application 63.27 for the broker's license. 63.28(d)(c) An applicant for a real estate closing agent's 63.29 license must successfully complete a course of study relating to 63.30 closing services consisting of eight hours of instruction 63.31 approved by the commissioner. 63.32 Sec. 43. Minnesota Statutes 2002, section 82.22, is 63.33 amended by adding a subdivision to read: 63.34 Subd. 6a. [CHANGE OF APPLICATION INFORMATION.] The 63.35 commissioner must be notified in writing of a change of 63.36 information contained in the license application on file with 64.1 the commissioner within ten days of the change. 64.2 Sec. 44. Minnesota Statutes 2002, section 82.22, is 64.3 amended by adding a subdivision to read: 64.4 Subd. 6b. [CANCELLATION OF SALESPERSON'S OR BROKER'S 64.5 LICENSE.] A salesperson's or broker's license that has been 64.6 canceled for failure of a licensee to complete postlicensing 64.7 education requirements must be returned to the commissioner by 64.8 the licensee's broker within ten days of receipt of notice of 64.9 cancellation. The license shall be reinstated without 64.10 reexamination by completing the required instruction, filing an 64.11 application, and paying the fee for a salesperson's or broker's 64.12 license within two years of the cancellation date. 64.13 Sec. 45. Minnesota Statutes 2002, section 82.22, is 64.14 amended by adding a subdivision to read: 64.15 Subd. 6c. [PASSING GRADE FOR EXAMINATION.] A passing grade 64.16 for a salesperson's and broker's examination shall be a score of 64.17 75 percent or higher on the uniform portion and a score of 75 64.18 percent or higher on the state portion of the examination. 64.19 The commissioner shall not accept the scores of a person 64.20 who has cheated on an examination. Cheating on a real estate 64.21 examination shall be grounds for denying an application for a 64.22 broker's or salesperson's license. 64.23 Sec. 46. Minnesota Statutes 2002, section 82.22, 64.24 subdivision 8, is amended to read: 64.25 Subd. 8. [DURATION.] No renewal of a salesperson's license 64.26 shall be effective beyond a date two years after the granting of 64.27 such salesperson's license unless the salesperson has furnished 64.28 evidence of compliance witheither subdivisions 6 or 7section 64.29 82.22, subdivision 6. The commissioner shall cancel the license 64.30 of any salesperson who fails to comply withsubdivisions 6 or 764.31 section 82.22, subdivision 6. This subdivision shall not apply 64.32 to salespeople licensed in Minnesota prior to July 1, 1969. 64.33 Sec. 47. Minnesota Statutes 2002, section 82.22, 64.34 subdivision 12, is amended to read: 64.35 Subd. 12. [RECIPROCITY.] The requirements ofthis64.36sectionsubdivisions 6 and 13 may be waived for individuals of 65.1 other jurisdictions, provided: (1) a written reciprocal 65.2 licensing agreement is in effect between the commissioner and 65.3 the licensing officials of that jurisdiction, (2) the individual 65.4 is licensed in that jurisdiction, and (3) the licensing 65.5 requirements of that jurisdiction are substantially similar to 65.6 the provisions of this chapter. 65.7 Sec. 48. Minnesota Statutes 2002, section 82.22, 65.8 subdivision 13, is amended to read: 65.9 Subd. 13. [CONTINUINGEDUCATION.] (a) All real estate 65.10 salespersons and all real estate brokers shall be required to 65.11 successfully complete 30 hours of real estate continuing 65.12 education, either as a student or a lecturer, in courses of 65.13 study approved by the commissioner, during the initial license 65.14 period and during each succeeding 24-month license period. At 65.15 least 15 of the 30 credit hours must be completed during the 65.16 first 12 months of the 24-month licensing period. Licensees may 65.17 not claim credit for continuing education not actually completed 65.18 as of the date their report of continuing education compliance 65.19 is filed. 65.20 (b) The commissionershallmay adopt rules defining the 65.21 standards for course and instructor approval, and may adopt 65.22 rules for the proper administration ofthis subdivision65.23 prelicense instruction as required under section 82.22, 65.24 subdivision 6, and continuing education as required under this 65.25 section. The commissioner may not approve a course which can be 65.26 completed by the student at home or outside the classroom 65.27 without the supervision of an instructor except accredited 65.28 courses using new delivery technology, including interactive 65.29 technology, and the Internet. The commissioner may approve 65.30 courses of study in the real estate field offered in educational 65.31 institutions of higher learning in this state or courses of 65.32 study in the real estate field developed by and offered under 65.33 the auspices of the National Association of Realtors, its 65.34 affiliates, or private real estate schools. Courses in 65.35 motivation, salesmanship, psychology, or time management shall 65.36 not be approved by the commissioner for continuing education 66.1 credit. The commissioner may approve courses in any other 66.2 subjects, including, but not limited to, communication, 66.3 marketing, negotiation, and technology for continuing education 66.4 credit. 66.5 (c) Any program approved by Minnesota continuing legal 66.6 education shall be approved by the commissioner of commerce for 66.7 continuing education for real estate brokers and salespeople if 66.8 the program or any part thereof relates to real estate. 66.9 (d) As part of the continuing education requirements of 66.10 this section, the commissioner shall require that all real 66.11 estate brokers and salespersons receive: 66.12 (1) at least one hour of training during each license 66.13 period in courses in laws or regulations on agency 66.14 representation and disclosure; and 66.15 (2) at least one hour of training during each license 66.16 period in courses in state and federal fair housing laws, 66.17 regulations, and rules, other antidiscrimination laws, or 66.18 courses designed to help licensees to meet the housing needs of 66.19 immigrant and other underserved populations. 66.20 Clauses (1) and (2) do not apply to real estate 66.21 salespersons and real estate brokers engaged solely in the 66.22 commercial real estate business who file with the commissioner a 66.23 verification of this status along with the continuing education 66.24 report required under paragraph (a). 66.25 (e) The commissioner is authorized to establish a procedure 66.26 for renewal of course accreditation. 66.27 (f) Approved continuing education courses may be sponsored 66.28 or offered by a broker of a real estate company and may be held 66.29 on the premises of a company licensed under this chapter. 66.30 All continuing education course offerings must be open to any 66.31 interested individuals. Access may be restricted by the sponsor 66.32 based on class size only. Courses must not be approved if 66.33 attendance is restricted to any particular group of people. A 66.34 broker must comply with all continuing education rules 66.35 prescribed by the commissioner. The commissioner shall not 66.36 approve any prelicense instruction courses offered by, sponsored 67.1 by, or affiliated with any person or company licensed to engage 67.2 in the real estate business. 67.3(g) No more than one-half of the credit hours per licensing67.4period, including continuing education required under67.5subdivision 6, may be credited to a person for attending any67.6combination of courses either:(h) Credit may not be earned if 67.7 the licensee has previously obtained credit for the same course 67.8 as either a student or instructor during the same licensing 67.9 period. 67.10(1) sponsored by, offered by, or affiliated with a real67.11estate company or its agents; or67.12(2) offered using new delivery technology, including67.13interactive technology, and the Internet.67.14 (i) The real estate education course completion certificate 67.15 must be in the form set forth by the commissioner. 67.16 Students are responsible for maintaining copies of course 67.17 completion certificates. 67.18 Sec. 49. Minnesota Statutes 2002, section 82.24, 67.19 subdivision 3, is amended to read: 67.20 Subd. 3. [NONDEPOSITABLE ITEMS.] In the event earnest 67.21 money or other down payments in a real estate transaction are 67.22 received by the broker or salesperson in the form of a 67.23 nondepositable item such as a note, bond, stock certificate, 67.24 treasury bill, or any other instrument or equity or thing of 67.25 value received by a broker, salesperson, or closing 67.26 agent received in lieu of cashas earnest money or down payment67.27in a real estate transactionshall beheld bydeposited 67.28 immediately with an authorized escrow agent, whose authority is 67.29 evidenced by a written agreement executed by the offeror and the 67.30 escrow agent. A receipt shall be issued to the buyer for the 67.31 value of the nondepositable item. 67.32 In the event the broker acts as the escrow agent, the 67.33 broker shall obtain written authority from the buyer and seller 67.34 to hold such items in escrow. In all cases, the parties shall 67.35 be advised of the details relative to the nondepositable item, 67.36 including the nature of the item, the amount, and in whose 68.1 custody such item is being held. The fact that such an item is 68.2 being held by the broker shall be duly recorded in the broker's 68.3 trust account records. 68.4 Sec. 50. Minnesota Statutes 2002, section 82.24, 68.5 subdivision 5, is amended to read: 68.6 Subd. 5. [TRUST ACCOUNTS.] (a) Each broker or closing 68.7 agent shall maintain and retain records of all trust funds and 68.8 trust accounts. The commissioner may prescribe information to 68.9 be included in the records by appropriate rules. 68.10 (b) Unless otherwise agreed upon in writing by the parties 68.11 to a transaction, the broker with whom trust funds are to be 68.12 deposited in satisfaction of subdivision 1 shall be the listing 68.13 broker. 68.14 (c) A check received from a potential buyer shall be 68.15 deposited into the listing broker's trust account not later than 68.16 the third business day after delivery of the check to the 68.17 broker, except that the check may be held by the listing broker 68.18 until acceptance or rejection of the offer if: 68.19 (1) the check by its terms is not negotiable by the broker 68.20 or if the potential buyer has given written instructions that 68.21 the check shall not be deposited nor cashed until acceptance or 68.22 shall be immediately returned if the offer is rejected; and 68.23 (2) the potential seller is informed that the check is 68.24 being so held before or at the time the offer is presented to 68.25 that person for acceptance. 68.26 If the offer is accepted, the check shall be deposited in a 68.27 neutral escrow depository or the trust fund account of the 68.28 listing broker not later than the third business day following 68.29 acceptance of the offer unless the broker has received written 68.30 authorization from all parties to the transaction to continue to 68.31 hold the check. If the offer is rejected, the check shall be 68.32 returned to the potential buyer not later than the next business 68.33 day after rejection. 68.34 (d) Trust funds must be maintained in a trust account until 68.35 disbursement is made in accordance with the terms of the 68.36 applicable agreements and proper accounting is made to the 69.1 parties entitled to an accounting. 69.2 Disbursement must be made within a reasonable time 69.3 following the consummation or termination of a transaction if 69.4 the applicable agreements are silent as to the time of 69.5 disbursement. 69.6 Sec. 51. Minnesota Statutes 2002, section 82.24, is 69.7 amended by adding a subdivision to read: 69.8 Subd. 9. [CONSENT TO PLACE IN SPECIAL ACCOUNT.] Trust 69.9 funds may be placed by the broker in a special account which may 69.10 be an interest-bearing account or certificate of deposit if the 69.11 buyer and the seller consent in writing to the special account 69.12 and to the disposition of the trust funds, including any 69.13 interest thereon. 69.14 Sec. 52. Minnesota Statutes 2002, section 82.24, is 69.15 amended by adding a subdivision to read: 69.16 Subd. 10. [LICENSEE AS PRINCIPAL.] Funds which would 69.17 constitute trust funds if received by a licensee acting as an 69.18 agent must, if received by a licensee acting as principal, be 69.19 placed in a trust account unless a written agreement signed by 69.20 all parties to the transaction specifies a different disposition 69.21 of the funds. The written agreement shall state that the funds 69.22 would otherwise be placed in a real estate trust account. 69.23 Sec. 53. Minnesota Statutes 2002, section 82.24, is 69.24 amended by adding a subdivision to read: 69.25 Subd. 11. [TRUST ACCOUNT RECORDS.] (a) Every broker shall 69.26 keep a record of all trust funds received, including notes, 69.27 savings certificates, uncashed or uncollected checks, or other 69.28 similar instruments. Said records shall set forth: 69.29 (1) date funds received; 69.30 (2) from whom received; 69.31 (3) amount received; 69.32 (4) with respect to funds deposited in a trust account, the 69.33 date of said deposit; 69.34 (5) with respect to funds previously deposited in a trust 69.35 account, the check number or date of related disbursements; and 69.36 (6) a monthly balance of the trust account. 70.1 Each broker shall maintain a formal trust cash receipts 70.2 journal and a formal cash disbursement journal, or similar 70.3 records, in accordance with generally accepted accounting 70.4 principles. All records and funds shall be subject to 70.5 inspection by the commissioner or an agent of the commissioner 70.6 at any time. 70.7 (b) Each broker shall keep a separate record for each 70.8 beneficiary or transaction, accounting for all funds therein 70.9 which have been deposited in the broker's trust bank account. 70.10 These records shall set forth information sufficient to identify 70.11 the transaction and the parties thereto. At a minimum, each 70.12 record shall set forth: 70.13 (1) the date funds are deposited; 70.14 (2) the amount deposited; 70.15 (3) the date of each related disbursement; 70.16 (4) the check number of each related disbursement; 70.17 (5) the amount of each related disbursement; and 70.18 (6) a description of each disbursement. 70.19 Sec. 54. [82.261] [GUARANTEED SALE PROGRAMS.] 70.20 If a broker advertises or offers a guaranteed sale program, 70.21 or other program whereby the broker undertakes to purchase real 70.22 property in the event he or she is unable to effectuate a sale 70.23 to a third party within a specified period of time, a written 70.24 disclosure that sets forth clearly and completely the general 70.25 terms and conditions under which the broker agrees to purchase 70.26 the property and the disposition of any profit at the time of 70.27 resale by the broker must be provided to the seller prior to the 70.28 execution of a listing agreement. 70.29 Sec. 55. Minnesota Statutes 2002, section 82.27, is 70.30 amended by adding a subdivision to read: 70.31 Subd. 8. [REVOCATIONS.] If the commissioner finds that any 70.32 licensee or applicant is no longer in existence or has ceased to 70.33 do business as a broker or salesperson or is subject to an 70.34 adjudication of mental incompetence or to the control of a 70.35 committee, conservator, or guardian, or cannot be located after 70.36 reasonable search, the commissioner may by order revoke the 71.1 license or deny the application. 71.2 Sec. 56. [82.36] [LOAN BROKERS.] 71.3 Subdivision 1. [COMPLIANCE.] Loan brokers shall comply 71.4 with the requirements of subdivisions 2 to 7. 71.5 Subd. 2. [CONTRACT PROVISIONS.] A loan broker shall enter 71.6 into a written contract with each customer and shall provide a 71.7 copy of the written contract to each customer at or before the 71.8 time of receipt of any fee or valuable consideration paid for 71.9 loan brokerage services. The written contract shall: 71.10 (1) identify the escrow account into which the fees or 71.11 consideration will be deposited; 71.12 (2) set forth the circumstances under which the loan broker 71.13 will be entitled to disbursement from the escrow account; 71.14 (3) set forth the circumstances under which the customer 71.15 will be entitled to a refund of all or part of the fee; 71.16 (4) specifically describe the services to be provided by 71.17 the loan broker and the dates by which the services will be 71.18 performed; 71.19 (5) state the maximum rate of interest to be charged on any 71.20 loan obtained; 71.21 (6) contain a statement which notifies the customer of his 71.22 or her rights to cancel the contract pursuant to subdivision 3; 71.23 (7) disclose, with respect to the 12-month period ending 71.24 ten business days prior to the date of the contract in question, 71.25 the percentage of the loan broker's customers for whom loans 71.26 have actually been funded as a result of the loan broker's 71.27 services. This disclosure need not be made for any period prior 71.28 to September 8, 1986; and 71.29 (8) disclose the cancellation rights and procedures set 71.30 forth in subdivision 3. 71.31 Subd. 3. [CANCELLATION.] Any customer of a loan broker who 71.32 pays a fee prior to the time a loan is actually funded shall 71.33 have an unconditional right to rescind the contract for loan 71.34 brokerage services at any time until midnight of the third 71.35 business day after the day on which the contract is signed. 71.36 Cancellation is evidenced by the customer giving written notice 72.1 of cancellation to the loan broker at the address stated in the 72.2 contract. Notice of cancellation, if given by mail, is 72.3 effective upon deposit in a mailbox properly addressed to the 72.4 loan broker with postage prepaid. Notice of cancellation need 72.5 not take a particular form and is sufficient if it indicates by 72.6 any form of written expression the intention of the customer not 72.7 to be bound by the contract. No act of a customer of a loan 72.8 broker shall be effective to waive the right to rescind as 72.9 provided in this subdivision. 72.10 Subd. 4. [ESCROW ACCOUNT.] The loan broker shall deposit 72.11 in an escrow account within 48 hours all fees received prior to 72.12 the time a loan is actually funded. The escrow account shall be 72.13 in a bank located within the state of Minnesota and shall be 72.14 controlled by an unaffiliated accountant, lawyer, or bank 72.15 officer or employee. 72.16 Subd. 5. [RECORDS.] The loan broker shall maintain a 72.17 separate record of all fees received for services performed or 72.18 to be performed as a loan broker. Each record shall set forth 72.19 the date funds are received, the person from whom the funds are 72.20 received, the amount received, the date of deposit in the escrow 72.21 account, the account number, the date the funds are disbursed 72.22 and the check number of the disbursement, and a description of 72.23 each disbursement and the justification for the disbursement. 72.24 Subd. 6. [MONTHLY STATEMENT.] The loan broker shall 72.25 provide to each customer at least monthly a detailed written 72.26 accounting of all disbursements of the customer's funds from the 72.27 trust account. 72.28 Subd. 7. [DISCLOSURE OF LENDERS.] The loan broker shall 72.29 provide to each customer at the expiration of the contract a 72.30 list of the lenders or loan sources to whom loan applications 72.31 were submitted on behalf of the customer. 72.32 Sec. 57. [82.37] [NEGOTIATIONS.] 72.33 Subdivision 1. [WRITTEN OFFERS.] All written offers to 72.34 purchase or lease shall be promptly submitted in writing to the 72.35 seller or lessor. 72.36 Subd. 2. [NONDISCLOSURE OF TERMS OF OFFER.] A licensee 73.1 shall not disclose the terms of an offer to another prospective 73.2 buyer or the licensee representing or assisting the buyer prior 73.3 to the presentation of the offer to the seller. 73.4 Subd. 3. [CLOSING COSTS.] Licensees shall disclose to a 73.5 buyer or a seller at or before the time an offer is written or 73.6 presented that the buyer or seller may be required to pay 73.7 certain closing costs, which may effectively reduce the proceeds 73.8 from the sale or increase the cash outlay at closing. 73.9 Subd. 4. [REQUIRED DOCUMENTS.] Licensees shall furnish to 73.10 the parties to the transaction at the time the documents are 73.11 signed or become available a true and accurate copy of listing 73.12 agreements, earnest money receipts, purchase agreements, 73.13 contracts for deed, option agreements, closing statements, 73.14 truth-in-housing forms, energy audits, and any other record, 73.15 instrument, or document that is material to the transaction and 73.16 that is in the licensee's possession. 73.17 Subd. 5. [CLOSING STATEMENT.] The listing broker or his or 73.18 her designee shall deliver to the seller, at the time of 73.19 closing, a complete and detailed closing statement setting forth 73.20 all of the receipts and disbursements handled by the broker for 73.21 the seller. The listing broker shall also deliver to the buyer, 73.22 at the time of closing, a complete and detailed statement 73.23 setting forth the disposition of all money received in the 73.24 transaction from the buyer. 73.25 Sec. 58. [82.46] [RENTAL SERVICES.] 73.26 Subdivision 1. [LICENSE.] A rental service shall obtain a 73.27 real estate broker's license before engaging in business or 73.28 holding itself out as being engaged in business. No person 73.29 shall act as a real estate salesperson on behalf of a rental 73.30 service without first obtaining a real estate salesperson's 73.31 license on behalf of the rental service. 73.32 Subd. 2. [DISSEMINATION OF UNIT INFORMATION.] A rental 73.33 service shall not provide information regarding a rental unit 73.34 without the express authority of the owner of the unit. 73.35 Subd. 3. [AVAILABILITY OF UNIT.] A rental service shall 73.36 not represent a unit as currently available unless its 74.1 availability has been verified within 72 hours preceding the 74.2 representation. 74.3 Subd. 4. [ADVERTISING.] A rental service shall not 74.4 advertise in a manner that is misleading with regards to fees 74.5 charged, services provided, the availability of rental units, or 74.6 rental terms or conditions. 74.7 Sec. 59. [82.48] [STANDARDS OF CONDUCT.] 74.8 Subdivision 1. [ACCESS TO GOVERNING STATUTES AND 74.9 RULES.] Every real estate office and branch office shall have a 74.10 current copy of this chapter and chapter 83 and the rules 74.11 adopted under those chapters, available for the use of licensees. 74.12 Access to the statutes and rules required by this section may be 74.13 made available through an electronic agent. 74.14 Subd. 2. [PENALTY FOR NONCOMPLIANCE.] The methods, acts, 74.15 or practices set forth in sections 82.19, subdivision 10; 74.16 82.191; 82.197; 82.22, subdivision 6a; 82.261; 82.37; and 74.17 subdivisions 1 and 3, are standards of conduct governing the 74.18 activities of real estate brokers and salespersons. Failure to 74.19 comply with these standards shall constitute grounds for license 74.20 denial, suspension, or revocation, or for censure of the 74.21 licensee. 74.22 Subd. 3. [RESPONSIBILITIES OF BROKERS.] (a) [SUPERVISION 74.23 OF PERSONNEL.] Brokers shall adequately supervise the activities 74.24 of their salespersons and employees. Supervision includes the 74.25 ongoing monitoring of listing agreements, purchase agreements, 74.26 other real estate-related documents which are prepared or 74.27 drafted by the broker's salespersons or employees or which are 74.28 otherwise received by the broker's office, and the review of all 74.29 trust account books and records. If an individual broker 74.30 maintains more than one place of business, each place of 74.31 business shall be under the broker's direction and supervision. 74.32 If a partnership or corporate broker maintains more than one 74.33 place of business, each place of business shall be under the 74.34 direction and supervision of an individual broker licensed to 74.35 act on behalf of the partnership or corporation. 74.36 The primary broker shall maintain records specifying the 75.1 name of each broker responsible for the direction and 75.2 supervision of each place of business. If an individual broker, 75.3 who may be the primary broker, is responsible for supervising 75.4 more than one place of business, the primary broker shall, upon 75.5 written request of the commissioner, file a written statement 75.6 specifying the procedures which have been established to ensure 75.7 that all salespersons and employees are adequately supervised. 75.8 Designation of another broker to supervise a place of business 75.9 does not relieve the primary broker of the ultimate 75.10 responsibility for the actions of licensees. 75.11 (b) [PREPARATION AND SAFEKEEPING OF DOCUMENTS.] Brokers 75.12 shall be responsible for the preparation, custody, safety, and 75.13 accuracy of all real estate contracts, documents, and records, 75.14 even though another person may be assigned these duties by the 75.15 broker. 75.16 (c) [DOCUMENTATION AND RESOLUTION OF COMPLAINTS.] Brokers 75.17 shall investigate and attempt to resolve complaints made 75.18 regarding the practices of any individual licensed to them and 75.19 shall maintain, with respect to each individual licensed to 75.20 them, a complaint file containing all material relating to any 75.21 complaints received in writing for a period of three years. 75.22 (d) [DISCLOSURE OF LISTED PROPERTY INFORMATION.] A broker 75.23 may allow any unlicensed person, who is authorized by the 75.24 broker, to disclose any factual information pertaining to the 75.25 properties listed with the broker, if the factual information is 75.26 provided to the unlicensed person in written form by the broker 75.27 representing or assisting the seller(s). 75.28 Sec. 60. [82.51] [UNCLAIMED PROPERTY ACT COMPLIANCE.] 75.29 Upon the initial application for a real estate broker's 75.30 license and upon each annual application for renewal, the 75.31 applicant or broker shall be required to inform the commissioner 75.32 of compliance with the requirements set forth in chapter 345 75.33 relating to unclaimed property. 75.34 Sec. 61. [REVISOR'S INSTRUCTION.] 75.35 The revisor of statutes shall renumber each section of 75.36 Minnesota Statutes listed in column A with the number listed in 76.1 column B. The revisor shall also make the necessary 76.2 cross-reference changes consistent with the renumbering. 76.3 Column A Column B 76.4 82.17, subdivision 13 82.17, subdivision 2 76.5 82.17, subdivision 10 82.17, subdivision 3 76.6 82.17, subdivision 3 82.17, subdivision 4 76.7 82.17, subdivision 11 82.17, subdivision 5 76.8 82.17, subdivision 14 82.17, subdivision 6 76.9 82.17, subdivision 15 82.17, subdivision 7 76.10 82.17, subdivision 16 82.17, subdivision 8 76.11 82.17, subdivision 17 82.17, subdivision 9 76.12 82.17, subdivision 18 82.17, subdivision 10 76.13 82.17, subdivision 19 82.17, subdivision 11 76.14 82.17, subdivision 20 82.17, subdivision 12 76.15 82.17, subdivision 2 82.17, subdivision 13 76.16 82.17, subdivision 21 82.17, subdivision 14 76.17 82.17, subdivision 22 82.17, subdivision 15 76.18 82.17, subdivision 9 82.17, subdivision 16 76.19 82.17, subdivision 8 82.17, subdivision 17 76.20 82.17, subdivision 4 82.17, subdivision 18 76.21 82.17, subdivision 5 82.17, subdivision 19 76.22 82.17, subdivision 23 82.17, subdivision 20 76.23 82.17, subdivision 12 82.17, subdivision 21 76.24 82.17, subdivision 24 82.17, subdivision 22 76.25 82.17, subdivision 6 82.17, subdivision 23 76.26 82.17, subdivision 7 82.17, subdivision 24 76.27 82.33 82.18 76.28 82.191 82.19 76.29 82.201 82.20 76.30 82.196 82.21, subdivision 1 76.31 82.195 82.21, subdivision 2 76.32 82.197 82.22 76.33 82.18 82.23 76.34 82.21 82.24 76.35 82.261 82.27 76.36 82.22, subdivision 1 82.29, subdivision 1 77.1 82.22, subdivision 11 82.29, subdivision 2 77.2 82.22, subdivision 4 82.29, subdivision 3 77.3 82.22, subdivision 2 82.29, subdivision 4 77.4 82.22, subdivision 5a 82.29, subdivision 5 77.5 82.22, subdivision 6c 82.29, subdivision 6 77.6 82.22, subdivision 3 82.29, subdivision 7 77.7 82.22, subdivision 6 82.29, subdivision 8 77.8 82.20, subdivision 2 82.31, subdivision 1 77.9 82.20, subdivision 3 82.31, subdivision 2 77.10 82.20, subdivision 3a 82.31, subdivision 3 77.11 82.20, subdivision 4 82.31, subdivision 4 77.12 82.22, subdivision 5 82.31, subdivision 5 77.13 82.22, subdivision 6a 82.31, subdivision 6 77.14 82.22, subdivision 13 82.32 77.15 82.22, subdivision 8 82.33, subdivision 1 77.16 82.20, subdivision 8, 77.17 paragraph (a) 82.33, subdivision 2 77.18 82.20, subdivision 8, 77.19 paragraph (b) 82.33, subdivision 3 77.20 82.22, subdivision 10 82.33, subdivision 4 77.21 82.22, subdivision 5b 82.33, subdivision 5 77.22 82.22, subdivision 6b 82.33, subdivision 6 77.23 82.20, subdivision 1 82.34, subdivision 1 77.24 82.20, subdivision 2a 82.34, subdivision 2 77.25 82.20, subdivision 5 82.34, subdivision 3 77.26 82.20, subdivision 6 82.34, subdivision 4 77.27 82.20, subdivision 7 82.34, subdivision 5 77.28 82.20, subdivision 9, 77.29 paragraphs (a) and (b) 82.34, subdivision 6 77.30 82.20, subdivision 7a 82.34, subdivision 7 77.31 82.20, subdivision 8a 82.34, subdivision 8 77.32 82.20, subdivision 9a 82.34, subdivision 9 77.33 82.20, subdivision 9, 77.34 paragraph (c) 82.34, subdivision 10 77.35 82.20, subdivision 12 82.34, subdivision 11 77.36 82.20, subdivision 12a 82.34, subdivision 12 78.1 82.20, subdivision 13 82.34, subdivision 13 78.2 82.20, subdivision 14 82.34, subdivision 14 78.3 82.20, subdivision 14a 82.34, subdivision 15 78.4 82.20, subdivision 15 82.34, subdivision 16 78.5 82.27, subdivision 1 82.35, subdivision 1 78.6 82.20, subdivision 10 82.35, subdivision 2 78.7 82.27, subdivision 2 82.35, subdivision 3 78.8 82.27, subdivision 2a 82.35, subdivision 4 78.9 82.27, subdivision 3 82.35, subdivision 5 78.10 82.27, subdivision 4 82.35, subdivision 6 78.11 82.27, subdivision 5 82.35, subdivision 7 78.12 82.27, subdivision 6 82.35, subdivision 8 78.13 82.27, subdivision 7 82.35, subdivision 9 78.14 82.27, subdivision 8 82.35, subdivision 10 78.15 82.31 82.38 78.16 82.20, subdivision 11 82.39, subdivision 1 78.17 82.20, subdivision 11a 82.39, subdivision 2 78.18 82.20, subdivision 11b 82.39, subdivision 3 78.19 82.20, subdivision 11c 82.39, subdivision 4 78.20 82.20, subdivision 11d 82.39, subdivision 5 78.21 82.32 82.40 78.22 82.19, subdivision 1 82.41, subdivision 1 78.23 82.19, subdivision 2 82.41, subdivision 2 78.24 82.19, subdivision 3 82.41, subdivision 3 78.25 82.19, subdivision 4 82.41, subdivision 4 78.26 82.19, subdivision 4a 82.41, subdivision 5 78.27 82.19, subdivision 5 82.41, subdivision 6 78.28 82.19, subdivision 6 82.41, subdivision 7 78.29 82.19, subdivision 7 82.41, subdivision 8 78.30 82.19, subdivision 8 82.41, subdivision 9 78.31 82.19, subdivision 9 82.41, subdivision 10 78.32 82.19, subdivision 10 82.41, subdivision 11 78.33 82.19, subdivision 11 82.41, subdivision 12 78.34 82.19, subdivision 12 82.41, subdivision 13 78.35 82.29 82.42 78.36 82.34 82.43 79.1 82.22, subdivision 12 82.44 79.2 82.23, subdivision 2 82.45, subdivision 1 79.3 82.23, subdivision 3 82.45, subdivision 2 79.4 82.23, subdivision 1 82.45, subdivision 3 79.5 82.28 82.47 79.6 82.176 82.49 79.7 82.24, subdivision 1 82.50, subdivision 1 79.8 82.24, subdivision 2 82.50, subdivision 2 79.9 82.24, subdivision 3 82.50, subdivision 3 79.10 82.24, subdivision 4 82.50, subdivision 4 79.11 82.24, subdivision 5 82.50, subdivision 5 79.12 82.24, subdivision 6 82.50, subdivision 6 79.13 82.24, subdivision 7 82.50, subdivision 7 79.14 82.24, subdivision 8 82.50, subdivision 8 79.15 82.24, subdivision 9 82.50, subdivision 9 79.16 82.24, subdivision 10 82.50, subdivision 10 79.17 82.24, subdivision 11 82.50, subdivision 11 79.18 Sec. 62. [REPEALER.] 79.19 (a) Minnesota Statutes 2002, section 82.22, subdivision 9, 79.20 is repealed. 79.21 (b) Minnesota Rules, parts 2800.0100; 2800.0200; 2800.0300; 79.22 2800.1100; 2800.1200; 2800.1300; 2800.1400; 2800.1500; 79.23 2800.1600; 2800.1700; 2800.1750; 2800.1751; 2800.1800; 79.24 2800.1900; 2800.2000; 2800.2100; 2800.2150; 2805.0100; 79.25 2805.0200; 2805.0300; 2805.0400; 2805.0500; 2805.0600; 79.26 2805.0700; 2805.0800; 2805.0900; 2805.1000; 2805.1100; 79.27 2805.1300; 2805.1400; 2805.1500; 2805.1600; 2805.1700; 79.28 2805.1800; 2805.1900; and 2805.2000, are repealed.