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Minnesota Legislature

Office of the Revisor of Statutes

HF 3393

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 04/16/2010 10:24am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14
1.15 1.16
1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 4.36 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14
5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 7.36 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29
10.30 10.31
10.32 10.33 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35
12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22
12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8
13.9 13.10 13.11 13.12 13.13 13.14
13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21
14.22 14.23
14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33
15.34 15.35 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 16.35
17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19
18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22
19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 19.35 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26
20.27 20.28 20.29 20.30 20.31 20.32 20.33 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 21.36 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14
22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 24.36
25.1 25.2
25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16
26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16
28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22
29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21
30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 31.35 31.36 32.1 32.2 32.3 32.4 32.5 32.6
32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 33.35 33.36 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 34.36 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10
36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 37.36 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 38.36 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 39.36 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 40.36 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 41.36 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9
42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19
45.20 45.21
45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32
46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 46.36 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28
47.29 47.30 47.31 47.32 47.33 47.34 47.35 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 49.36 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 50.36 51.1 51.2 51.3 51.4
51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 53.36 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 54.36 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 55.36 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 56.36
57.1 57.2
57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13
58.14 58.15
58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11
59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23
59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35 60.36 61.1 61.2 61.3 61.4
61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28
62.29 62.30 62.31 62.32 62.33 62.34 62.35 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 64.35 64.36 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23
65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29
66.30 66.31 66.32
66.33 66.34 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35 67.36 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34
70.35 70.36
71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 71.35 71.36 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35 72.36 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 73.36 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13
74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23
75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 75.35 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25
76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15
77.16 77.17
77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 78.35 79.1 79.2 79.3
79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 80.36 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 83.35 83.36 84.1 84.2 84.3 84.4 84.5
84.6 84.7
84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30
84.31 84.32 84.33 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31
85.32 85.33 85.34 85.35 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 86.36
87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26
91.27 91.28 91.29 91.30 91.31 91.32 91.33 91.34 91.35 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12
92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30
92.31 92.32 92.33 92.34 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35 95.1 95.2 95.3
95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 95.34
96.1 96.2
96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15

A bill for an act
relating to real property; amending the Minnesota Common Interest Ownership
Act; making clarifying, conforming, and technical changes; amending Minnesota
Statutes 2008, sections 515B.1-102; 515B.1-103; 515B.1-107; 515B.1-112;
515B.1-115; 515B.1-116; 515B.2-101; 515B.2-102; 515B.2-105; 515B.2-106;
515B.2-108; 515B.2-109; 515B.2-110; 515B.2-111; 515B.2-112; 515B.2-113;
515B.2-114; 515B.2-118; 515B.2-119; 515B.2-121; 515B.2-124; 515B.3-101;
515B.3-102; 515B.3-103; 515B.3-104; 515B.3-105; 515B.3-106; 515B.3-109;
515B.3-110; 515B.3-112; 515B.3-113; 515B.3-114; 515B.3-115; 515B.3-116;
515B.3-117; 515B.3-120; 515B.3-121; 515B.4-101; 515B.4-102; 515B.4-104;
515B.4-105; 515B.4-106; 515B.4-107; 515B.4-108; 515B.4-110; 515B.4-111;
515B.4-115; 515B.4-116; proposing coding for new law in Minnesota Statutes,
chapter 515B.

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

ARTICLE 1

APPLICABILITY, DEFINITIONS, AND OTHER GENERAL PROVISIONS

Section 1.

Minnesota Statutes 2008, section 515B.1-102, is amended to read:


515B.1-102 APPLICABILITY.

(a) Except as provided in this section, this chapter, and not chapters 515 and 515A,
applies to all common interest communities created within this state on and after June
1, 1994.

(b) The applicability of this chapter to common interest communities created prior to
June 1, 1994, shall be as follows:

(1) This chapter shall apply to condominiums created under chapter 515A with
respect to events and circumstances occurring on and after June 1, 1994; provided (i) that
this chapter shall not invalidate the declarations, bylaws or condominium plats of those
condominiums, and (ii) that chapter 515A, and not this chapter, shall govern all rights and
obligations of a declarant of a condominium created under chapter 515A, and the rights
and claims of unit owners against that declarant.

(2) The following sections in this chapter apply to condominiums created under
chapter 515: 515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and
Taxation); 515B.1-106 (Applicability of Local deleted text beginOrdinances, Regulations, and Building
Codes
deleted text endnew text begin Requirementsnew text end); 515B.1-107 (Eminent Domain); 515B.1-108 (deleted text beginSupplemental
General Principles of Law Applicable
deleted text end new text beginThis Chapter Prevails; Supplemental Lawnew text end);
515B.1-109 (Construction Against Implicit Repeal);new text begin 515B.1-110 (Vacation of Abutting
Publicly Dedicated Property);
new text end 515B.1-112 (Unconscionable Agreement or Term of
Contract); 515B.1-113 (Obligation of Good Faith); 515B.1-114 (Remedies to be
Liberally Administered); 515B.1-115 (Notice); 515B.1-116 (Recording); 515B.2-103
(Construction and Validity of Declaration and Bylaws); 515B.2-104 (Description of
Units); 515B.2-108(d) (Allocation of Interests); 515B.2-109(c) (Common Elements and
Limited Common Elements); 515B.2-112 (Subdivisionnew text begin, Combination,new text end or Conversion
of Units); 515B.2-113 (Alteration of Units); 515B.2-114 (Relocation of Boundaries
Between Adjoining Units); 515B.2-115 (Minor Variations in Boundaries); 515B.2-118
(Amendment of Declaration); 515B.2-119 (Termination of Common Interest Community);
515B.3-102 (Powers of Unit Owners' Association); 515B.3-103(a), (b), and (g) (Boarddeleted text begin;deleted text endnew text begin
of
new text end Directors deleted text beginanddeleted text endnew text begin,new text end Officersdeleted text begin; Period ofdeleted text endnew text begin, andnew text end Declarant Control); 515B.3-107 (Upkeep
of Common Interest Community); 515B.3-108 (Meetings); 515B.3-109 (Quorums);
515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and Contract Liability); 515B.3-112
(Conveyancenew text begin of,new text end or deleted text beginEncumbrance ofdeleted text endnew text begin Creation of Security Interests in,new text end Common
Elements); 515B.3-113 (Insurance); 515B.3-114 (new text beginReplacement new text endReservesdeleted text begin; Surplus Fundsdeleted text end);
515B.3-115(c), (e), (f), (g), (h), and (i) (Assessments for Common Expenses); 515B.3-116
(Lien for Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association Records);
515B.3-119 (Association as Trustee); 515B.3-121 (Accounting Controls); 515B.4-107
(Resale of Units); 515B.4-108 (Purchaser's Right to Cancel Resale); and 515B.4-116
(Rights of Action; Attorney's Fees). Section 515B.1-103 (Definitions) shall apply
to the extent necessary in construing any of the sections referenced in this section.
Sections 515B.1-105, 515B.1-106, 515B.1-107, 515B.1-116, 515B.2-103, 515B.2-104,
515B.2-118, 515B.3-102, 515B.3-110, 515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117,
515B.3-118, 515B.3-121, 515B.4-107, 515B.4-108, and 515B.4-116 apply only with
respect to events and circumstances occurring on and after June 1, 1994. All other
sections referenced in this section apply only with respect to events and circumstances
occurring after July 31, 1999. A section referenced in this section does not invalidate the
declarations, bylaws or condominium plats of condominiums created before August 1,
1999. But all sections referenced in this section prevail over the declarations, bylaws, CIC
plats, rules and regulations under them, of condominiums created before August 1, 1999,
except to the extent that this chapter defers to the declarations, bylaws, CIC plats, or
rules and regulations issued under them.

(3) This chapter shall not apply to cooperatives and planned communities created
prior to June 1, 1994new text begin, or to planned communities that were created on or after June 1,
1994, and before August 1, 2006, and that consist of more than two but fewer than 13
units
new text end; except by election pursuant to subsection (d), and except that sections 515B.1-116,
subsections (a), (c), (d), new text beginandnew text end (e), deleted text begin(f), and (h),deleted text end 515B.4-107, and 515B.4-108, apply to all
planned communities and cooperatives regardless of when they are created, unless they
are exempt under subsection (e).

(c) This chapter shall not invalidate any amendment to the declaration, bylaws
or condominium plat of any condominium created under chapter 515 or 515A if the
amendment was recorded before June 1, 1994. Any amendment recorded on or after June
1, 1994, shall be adopted in conformity with the procedures and requirements specified by
those instruments and by this chapter. If the amendment grants to any person any rights,
powers or privileges permitted by this chapter, all correlative obligations, liabilities and
restrictions contained in this chapter shall also apply to that person.

(d) Any condominium created under chapter 515, any planned community or
cooperative which would be exempt from this chapter under subsection (e), or any planned
community or cooperative created prior to June 1, 1994new text begin, or any planned community that
was created on or after June 1, 1994, and prior to August 1, 2006, and that consists of more
than two but fewer than 13 units
new text end, may elect to be subject to this chapter, as follows:

(1) The election shall be accomplished by recording a declaration or amended
declaration, and a new or amended CIC plat where required, and by approving bylaws or
amended bylaws, which conform to the requirements of this chapter, and which, in the
case of amendments, are adopted in conformity with the procedures and requirements
specified by the existing declaration and bylaws of the common interest community,
and by any applicable statutes.

(2) In a condominium, the preexisting condominium plat shall be the CIC plat and
an amended CIC plat shall be required only if the amended declaration or bylaws contain
provisions inconsistent with the preexisting condominium plat. The condominium's CIC
number shall be the apartment ownership number or condominium number originally
assigned to it by the recording officer. In a cooperative in which the unit owners' interests
are characterized as real estate, a CIC plat shall be required. In a planned community,
the preexisting plat new text beginor registered land survey new text endrecorded pursuant to chapter 505, 508, or
508A, or the part of the plat new text beginor registered land survey new text endupon which the common interest
community is located, shall be the CIC plat.

(3) The amendment shall comply with section 515B.2-118(a)(3)new text begin and (c); except that
the unanimous consent of the unit owners shall not be required for (i) a clarification of the
unit boundary description if the clarified boundary description is substantially consistent
with the preexisting CIC plat, or (ii) changes from common elements to limited common
elements that occur by operation of section 515B.2-109(c) and (d)
new text end.

(4) Except as permitted by paragraph (3), no declarant, affiliate of declarant,
association, master association nor unit owner may acquire, increase, waive, reduce or
revoke any previously existing warranty rights or causes of action that one of said persons
has against any other of said persons by reason of exercising the right of election under
this subsection.

(5) A common interest community which elects to be subject to this chapter may, as
a part of the election process, change its form of ownership by complying with section
515B.2-123.

(e) Except as otherwise provided in this subsection, this chapter shall not apply,
except by election pursuant to subsection (d), to the following:

(1) a planned community which consists of two units, which utilizes a CIC plat
complying with section 515B.2-110(d)(1) and (2), which is not subject to any rights to
subdivide or convert units or to add additional real estate, and which is not subject to a
master association;

(2) a common interest community deleted text beginwhere the units consistdeleted text endnew text begin that consistsnew text end solely of
new text begin platted lots or other new text endseparate parcels of real estate designed or utilized for detached single
family dwellings or agricultural purposes, deleted text beginanddeleted text endnew text begin with or without common property,new text end where
deleted text begin thedeleted text endnew text begin nonew text end association or deleted text beginadeleted text end master association has deleted text beginnodeleted text endnew text begin annew text end obligation to maintain any building
containing a dwelling or any agricultural buildingnew text begin located or to be located on such platted
lots or parcels; except that section 515B.4-101(e) shall apply to the sale of such platted
lots or parcels of real estate if the common interest community is or will be subject to a
master declaration
new text end;

(3) a cooperative where, at the time of creation of the cooperative, the unit owners'
interests in the dwellings as described in the declaration consist solely of proprietary
leases having an unexpired term of fewer than 20 years, including renewal options;

(4) planned communities utilizing a CIC plat complying with section
515B.2-110(d)(1) and (2) and cooperatives, which are limited by the declaration to
nonresidential deleted text beginusedeleted text endnew text begin uses alone or in combination with residential rental uses in which
individual dwellings do not constitute units or other separate parcels of real estate
new text end; or

(5) real estate subject only to an instrument or instruments filed primarily for the
purpose of creating or modifying rights with respect to access, utilities, parking, ditches,
drainage, or irrigation.

(f) Section 515B.4-101(e) applies to any platted lot or other parcel of real estate that
is subject to a master declaration and is not subject to or is exempt from this chapter.

(g) Section 515B.1-106 shall apply to all common interest communities.

new text begin (h) The amendments in this act to the following sections apply only to common
interest communities created on or after August 1, 2010: section 515B.1-103(33) and
sections 515B.2-110, 515B.3-105, 515B.3-115, 515B.3-116, 515B.4-102, and 515B.4-115.
new text end

new text begin (i) Section 515B.3-114, as amended by this act, applies to common interest
communities only for the association's fiscal years commencing on or after January
1, 2012.
new text end

new text begin (j) Section 515B.3-104, as amended by this act, is effective August 1, 2010, and
applies to transfers of special declarant rights that are effective on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2008, section 515B.1-103, is amended to read:


515B.1-103 DEFINITIONS.

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

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

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

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

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

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

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

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

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

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

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

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

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

(10) "Common interest community" or "CIC" means contiguous or noncontiguous
real estate within Minnesota that is subject to an instrument which obligates persons
owning a separately described parcel of the real estate, or occupying a part of the real
estate pursuant to a proprietary lease, by reason of their ownership or occupancy, to pay
for (i) real estate taxes levied against; (ii) insurance premiums payable with respect to; (iii)
maintenance of; or (iv) construction, maintenance, repair or replacement of improvements
located on, one or more parcels or parts of the real estate other than the parcel or part that
the person owns or occupies. Real estate which satisfies the definition of a common
interest community is a common interest community whether or not it is subject to this
chapter. Real estate subject to a master deleted text beginassociationdeleted text endnew text begin declarationnew text end, regardless of when the
master deleted text beginassociationdeleted text endnew text begin declarationnew text end was deleted text beginformeddeleted text endnew text begin recordednew text end, shall not collectively constitute a
separate common interest community unless so stated in the master declaration deleted text beginrecorded
against the real estate pursuant to section 515B.2-121, subsection (f)(1)
deleted text end.

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

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

(13) "Cooperative" means a common interest community in which the real estate
is owned by an association, each of whose members is entitlednew text begin to a proprietary leasenew text end by
virtue of the member's ownership interest in the association deleted text beginto a proprietary leasedeleted text end.

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

(15) "Declarant" means:

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

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

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

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

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

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

(20) "Limited common element" means a portion of the common elements allocated
by the declaration or by operation of section deleted text begin515B.2-102(d) or (f)deleted text endnew text begin 515B.2-109(c) or (d)new text end for
the exclusive use of one or more but fewer than all of the units.

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

(22) "Master declaration" means a written instrument, however named, (i) recorded
on or after June 1, 1994, deleted text beginagainst property subject to powers exercised by a master
association
deleted text end and (ii) complying with section 515B.2-121deleted text begin,deleted text end subsection deleted text begin(f)(1)deleted text endnew text begin(e)new text end.

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

deleted text begin (23)deleted text end new text begin(24) new text end"Period of declarant control" means the time period provided for in section
515B.3-103(c) during which the declarant may appoint and remove officers and directors
of the association.

deleted text begin (24)deleted text end new text begin(25) new text end"Person" means an individual, corporation, limited liability company,
partnership, trustee under a trust, personal representative, guardian, conservator,
government, governmental subdivision or agency, or other legal or commercial entity
capable of holding title to real estate.

deleted text begin (25)deleted text end new text begin(26) new text end"Planned community" means a common interest community that is not
a condominium or a cooperative. A condominium or cooperative may be a part of a
planned community.

deleted text begin (26)deleted text end new text begin(27) new text end"Proprietary lease" means an agreement with a cooperative association
whereby a member of the association is entitled to exclusive possession of a unit in the
cooperative.

deleted text begin (27)deleted text end new text begin(28) new text end"Purchaser" means a person, other than a declarant, who by means of a
voluntary transfer acquires a legal or equitable interest in a unit other than (i) a leasehold
interest of less than 20 years, including renewal options, or (ii) a security interest.

deleted text begin (28)deleted text end new text begin(29) new text end"Real estate" means any fee simple, leasehold or other estate or interest in,
over, or under land, including structures, fixtures, and other improvements and interests
that by custom, usage, or law pass with a conveyance of land though not described in the
contract of sale or instrument of conveyance. "Real estate" may include spaces with or
without upper or lower boundaries, or spaces without physical boundaries.

deleted text begin (29)deleted text end new text begin(30) new text end"Residential use" means use as a dwelling, whether primary, secondary or
seasonal, but not transient use such as hotels or motels.

deleted text begin (30)deleted text end new text begin(31) new text end"Secured party" means the person owning a security interest as defined in
paragraph deleted text begin(31)deleted text endnew text begin (32)new text end.

deleted text begin (31)deleted text end new text begin(32) new text end"Security interest" means a perfected interest in real estate or personal
property, created by contract or conveyance, which secures payment or performance of an
obligation. The term includes a mortgagee's interest in a mortgage, a vendor's interest in
a contract for deed, a lessor's interest in a lease intended as security, a holder's interest
in a sheriff's certificate of sale during the period of redemption, an assignee's interest in
an assignment of leases or rents intended as security,new text begin in a cooperative,new text end a lender's interest
in a deleted text begincooperative share loandeleted text endnew text begin member's ownership interest in the associationnew text end, a pledgee's
interest in the pledge of an ownership interest, or any other interest intended as security
for an obligation under a written agreement.

deleted text begin (32)deleted text end new text begin(33) new text end"Special declarant rights" means rights reserved in the declaration for the
benefit of a declarant deleted text begintodeleted text endnew text begin and expressly identified in the declaration as special declarant
rights. Such special declarant rights may include but are not limited to the following
new text end:

(i)new text begin tonew text end complete improvements indicated on the CIC plat, planned by the declarant
consistent with the disclosure statement or authorized by the municipality in which the
deleted text begin CICdeleted text endnew text begin common interest communitynew text end is locatednew text begin, and to have and use easements for itself and
its employees, agents, and contractors through the common elements for such purposes
new text end;

(ii)new text begin tonew text end add additional real estate to a common interest community;

(iii)new text begin tonew text end subdivide or combine units, or convert units into common elements, limited
common elements and/or unitsnew text begin,new text endnew text begin pursuant to section 515B.2-112new text end;

(iv)new text begin tonew text end maintainnew text begin and usenew text end sales offices, management offices, signs advertising the
common interest community, and modelsnew text begin, and to have and use easements for itself and its
employees, agents, and invitees through the common elements for such purposes
new text end;

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

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

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

deleted text begin (viii)deleted text end new text begin(v)new text endnew text begin to new text endappoint or remove any officer or director of the associationdeleted text begin, or the master
association where applicable,
deleted text end during any period of declarant controldeleted text begin.deleted text endnew text begin;
new text end

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

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

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

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

deleted text begin (33)deleted text end new text begin(34) new text end"Time share" means a right to occupy a unit or any of several units during
three or more separate time periods over a period of at least three years, including renewal
options, whether or not coupled with deleted text beginan estate ordeleted text end new text begina fee title new text endinterest in deleted text beginadeleted text endnew text begin thenew text end common
interest community or a specified portion thereof.

deleted text begin (34)deleted text end new text begin(35) new text end"Unit" means a portion of a common interest community the boundaries
of which are described in the common interest community's declaration and which is
intended for separate ownershipnew text begin,new text end or separate occupancy pursuant to a proprietary lease.

deleted text begin (35)deleted text end new text begin(36) new text end"Unit identifier" means English letters or Arabic numerals, or a
combination thereof, which identify only one unit in a common interest community and
which meet the requirements of section 515B.2-104.

deleted text begin (36)deleted text end new text begin(37) new text end"Unit owner" means a declarant or other person who owns a unit, a lessee
under a proprietary lease, or a lessee of a unit in a leasehold common interest community
whose lease expires simultaneously with any lease the expiration or termination of which
will remove the unit from the common interest community, but does not include a secured
party. In a common interest community, the declarant is the unit owner of a unit until that
unit has been conveyed to another person.

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to section 515B.1-103(33) is effective August
1, 2010, and applies only to common interest communities created on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2008, section 515B.1-107, is amended to read:


515B.1-107 EMINENT DOMAIN.

(a) If a unit is acquired by eminent domain, or if part of a unit is acquired by eminent
domain leaving the unit owner with a remnant which may not practically or lawfully be
used for any material purpose permitted by the declaration, the award shall compensate
the unit owner and secured party in the unit as their interests may appear, whether or not
any common element interest is acquired. Upon acquisition, unless the order or final
certificate otherwise provides, that unit's allocated interests are automatically reallocated
among the remaining units in proportion to their respective allocated interests prior to the
taking, and the association shall promptly prepare, execute, and record an amendment to
the declaration reflecting the deleted text beginallocationsdeleted text endnew text begin reallocationsnew text end. Any remnant of a unit remaining
after part of a unit is taken under this subsection is thereafter a common element.

(b) Except as provided in subsection (a), if part of a unit is acquired by eminent
domain, the award shall compensate the unit owner and secured party for the reduction in
value of the unit and its interest in the common elements, whether or not any common
elements are acquired. Upon acquisition, unless the order or final certificate otherwise
provides, (i) that unit's allocated interests are reduced in proportion to the reduction in the
size of the unit, or on any other basis specified in the declaration and (ii) the portion of the
allocated interests divested from the partially acquired unit are automatically reallocated
to that unit and to the remaining units in proportion to the respective allocated interests
of those units before the taking, with the partially acquired unit participating in the
reallocation on the basis of its reduced allocated interests.

(c) If part of the common elements is acquired by eminent domain, the portion of
the award attributable to the common elements taken shall be paid to the association. In
an eminent domain proceeding which seeks to acquire a part of the common elements,
jurisdiction may be acquired by service of process upon the association. Unless the
declaration provides otherwise, any portion of the award attributable to the acquisition of a
limited common element shall be equally divided among the owners of the units to which
that limited common element was allocated at the time of acquisition and their secured
parties, as their interests may appear or as provided by the declaration.

(d) In any eminent domain proceeding the units shall be treated as separate parcels
of real estate for valuation purposes, regardless of the number of units subject to the
proceeding.

(e) Any distribution to a unit owner from the proceeds of an eminent domain award
shall be subject to any limitations imposed by the declaration or bylaws.

(f) The court order or final certificate containing the final awards shall be recorded in
every county in which any portion of the common interest community is located.

Sec. 4.

new text begin [515B.1-1105] VACATION OF ABUTTING PUBLICLY DEDICATED
PROPERTY.
new text end

new text begin (a) When, by operation or presumption of law, all or any portion of vacated property,
such as a street, alley, right-of-way, or other publicly dedicated area, accrues to property
subject to a declaration, such portion of the vacated property shall, by operation of law
and without any corresponding amendment to the declaration or the CIC plat, become
subject to all of the terms and conditions of the declaration. Except as otherwise provided
in an amendment to the declaration that is adopted in accordance with section 515B.2-118
and the declaration:
new text end

new text begin (1) if the vacated property accrues to one or more units in a condominium or a
planned community, title to the vacated property shall vest in the owner or owners of the
unit or the units, but the interests allocated to the units pursuant to section 515B.2-108 and
the declaration shall not change as a result thereof;
new text end

new text begin (2) if the vacated property accrues to common elements in a condominium, title
to the vacated property shall vest in the unit owners in accordance with their allocated
interests and the vacated property shall be treated as a part of the common elements; and
new text end

new text begin (3) if the vacated property accrues to common elements in a cooperative or planned
community, title to the vacated property shall vest in the association and the vacated
property shall be treated as a part of the common elements.
new text end

new text begin (b) At any time after the vacation the association may, but is not obligated to, amend
the declaration or CIC plat to confirm the inclusion of the vacated property in the common
interest community in accordance with section 515B.2-118 and the declaration.
new text end

Sec. 5.

Minnesota Statutes 2008, section 515B.1-112, is amended to read:


515B.1-112 UNCONSCIONABLE AGREEMENT OR TERM OF CONTRACT.

(a) The court, upon finding as a matter of law that a contract or contract clause was
unconscionable at the time the contract was made, may refuse to enforce the contract,
enforce the remainder of the contract without the unconscionable clause, or limit the
application of any unconscionable clause in order to avoid an unconscionable result.new text begin For
purposes of this section, a contract includes a declaration, master declaration, the articles of
incorporation and bylaws of an association or master association, and a proprietary lease.
new text end

(b) Whenever it is claimed, or appears to the court, that a contract or any contract
clause is or may be unconscionable, the parties, in order to aid the court in making the
determination, shall be afforded a reasonable opportunity to present evidence as to:

(1) the commercial setting of the negotiations;

(2) whether a party has knowingly taken advantage of the inability of the other party
reasonably to protect the other party's interests by reason of physical or mental infirmity,
illiteracy, inability to understand the language of the agreement, or similar factors;

(3) the effect and purpose of the contract or clause; and

(4) if a sale, any gross disparity, at the time of contracting, between the amount
charged for the property and the value of that property measured by the price at which
similar property was readily obtainable in similar transaction, provided, that this factor
shall not, of itself, render the contract unconscionable.

Sec. 6.

Minnesota Statutes 2008, section 515B.1-115, is amended to read:


515B.1-115 NOTICE.

Except as otherwise stated in this chapter all notices required by this chapter shall be
in writing and shall be effective new text begin (i) new text endupon hand delivery, deleted text beginordeleted text endnew text begin (ii)new text end upon mailing if properly
addressed with postage prepaid and deposited in the United States mailnew text begin, or (iii) when given
in compliance with section 515B.3-110(c), with respect to matters covered by that section
new text end.

Sec. 7.

Minnesota Statutes 2008, section 515B.1-116, is amended to read:


515B.1-116 RECORDING.

(a) A declaration, bylaws,new text begin a supplemental declaration,new text end any amendment to a
declarationnew text begin, supplemental declarationnew text end or bylaws, and any other instrument affecting a
common interest community shall be entitled to be recorded. In those counties which
have a tract index, the county recorder shall enter the declaration in the tract index for
each unit or other tract affected. The county recorder shall not enter the declaration in
the tract index for lands described as additional real estate, unless such lands are added
to the common interest community pursuant to section 515B.2-111. The registrar of
titles shall file the declaration in accordance with section 508.351 or 508A.351. The
registrar of titles shall not file the declaration upon certificates of title for lands described
as additional real estate, unless such lands are added to the common interest community
pursuant to section 515B.2-111.

(b) The recording officer shall upon request promptly assign a number (CIC number)
to a common interest community to be formed or to a common interest community
resulting from the merger of two or more common interest communities.

(c) Documents recorded pursuant to this chapter shall in the case of registered
land be filed, and references to the recording of documents shall mean filed in the case
of registered land.

(d) deleted text beginSubject to any specific requirements of this chapterdeleted text endnew text begin Except as provided in section
515B.2-109, 515B.2-112, 515B.2-114, or 515B.2-124
new text end, if a recorded document relating to a
common interest community or a master association purports to require a certain vote or
signatures approving any restatement or amendment of the document by a certain number
or percentage of unit owners or secured parties, and if the amendment or restatement is to
be recorded, an affidavit of the president or secretary of the association stating that the
required vote or signatures have been obtained shall be attached to the document to be
recorded and shall constitute prima facie evidence of the representations contained therein.

(e) Except as permitted under this subsection, a recording officer shall not file or
record a declaration creating a new common interest community, unless the county
treasurer has certified that the property taxes payable in the current year for the real estate
included in the proposed common interest community have been paid. This certification
is in addition to the certification for delinquent taxes required by section 272.12. In the
case of preexisting common interest communities, the recording officer shall accept,
file, and record the following instruments, without requiring a certification as to the
current or delinquent taxes on any of the units in the common interest community: (i) a
declaration subjecting the common interest community to this chapter; (ii) a declaration
changing the form of a common interest community pursuant to section 515B.2-123; or
(iii) an amendment to or restatement of the declaration, bylaws, or CIC plat. In order for
an instrument to be accepted and recorded under the preceding sentence, the instrument
must not create or change unit or common area boundaries.

ARTICLE 2

CREATION, ALTERATION AND TERMINATION

Section 1.

Minnesota Statutes 2008, section 515B.2-101, is amended to read:


515B.2-101 CREATION OF COMMON INTEREST COMMUNITIES.

(a) On and after June 1, 1994, a common interest communitynew text begin subject to this chapternew text end
may be created only as follows:

(1) A condominium may be created only by recording a declaration.

(2) A cooperative may be created only by recording a declaration and bynew text begin
immediately thereafter
new text end recording a conveyance of the real estate subject to that declaration
to the association.

(3) A planned community which includes common elements may be created
only by deleted text beginsimultaneouslydeleted text end recording a declaration deleted text beginanddeleted text endnew text begin. The declarant shall, immediately
thereafter, record
new text end a conveyance of the common elements subject to that declarationnew text begin, other
than common elements described in section 515B.2-109(c) and (d),
new text end to the associationnew text begin;
provided, that a delay in or failure to record the conveyance shall have no effect on the
validity of the common interest community
new text end.

(4) A planned community without common elements may be created only by
recording a declaration.

(b) Except as otherwise deleted text beginexpresslydeleted text end provided in this chapter, the declaration shall be
executed by deleted text beginall persons whose interests indeleted text endnew text begin the owner ofnew text end the real estate deleted text beginwill be conveyed
to unit owners or to the association
deleted text endnew text begin subject to the declaration at the time the declaration
is recorded
new text end, except vendors under contracts for deed, and by every lessor of a lease the
expiration or termination of which will terminate the common interest community. The
declaration shall be recorded in every county in which any portion of the common interest
community is located. Failure of any party not required to execute a declaration, but
having a recorded interest in the deleted text begincommon interest communitydeleted text endnew text begin real estate subject to the
declaration at the time the declaration is recorded
new text end, to join in the declaration shall have no
effect on the validity of the common interest community; provided that the party is not
bound by the declaration deleted text beginuntil thatdeleted text endnew text begin unless thenew text end party new text begin (i) executes a recorded instrument that
utilizes a legal description of part or all of the common interest community complying
with section 515B.2-104, or (ii) otherwise
new text endacknowledges the existence of the common
interest community in a recorded instrument.

(c) In a condominium, a planned community utilizing a CIC plat complying with
section 515B.2-110(c), or a cooperative, where the unit boundaries are delineated by
a structure, a declaration, or an amendment to a declaration adding units, shall not be
recorded unless the structural components of the structures containing the units and
the mechanical systems serving more than one unit, but not the units, are substantially
completed, as evidenced by a recorded certificate executed by a registered engineer or
architect.

(d) A project which (i) meets the definition of a "common interest community" in
section 515B.1-103(10), (ii) is created after May 31, 1994, and (iii) is not exempt under
section 515B.1-102(e), is subject to this chapter even if this or other sections of the chapter
have not been complied with, and the declarant and all unit owners are bound by all
requirements and obligations of this chapter.

(e) The association shall be incorporated pursuant to section 515B.3-101 and the
CIC plat shall be recorded as and if required by section 515B.2-110.

Sec. 2.

Minnesota Statutes 2008, section 515B.2-102, is amended to read:


515B.2-102 UNIT BOUNDARIES.

(a) The declaration shall describe the boundaries of the units as provided in section
515B.2-105(5). The boundaries need not be delineated by a physical structure. The unit
may consist of noncontiguous portions of the common interest community.

(b) In a condominium, a cooperative, or a planned community utilizing a CIC plat
complying with section 515B.2-110(c),

new text begin (1) new text end except as the declaration otherwise provides, if the walls, floors, or ceilings of a
unit are designated as its boundaries, then the boundaries shall be the interior, unfinished
surfaces of the perimeter walls, floors, ceilings, doors, windows, and door and window
frames of the unitdeleted text begin.deleted text endnew text begin,new text end all paneling, tiles, wallpaper, paint, floor covering, and any other
finishing materials applied to the interior surfaces of the perimeter walls, floors or ceilings,
are a part of the unit, and all other portions of the perimeter walls, floors, ceilings, doors,
windows, and door and window frames, are a part of the common elementsdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) except in common interest communities created before August 1, 2010, and
except in common interest communities in which all units are restricted to nonresidential
use, if unit area or volume is used to allocate interests, the description of the unit
boundaries for similar types of units, such as residential units, garage units, or storage
units, shall be the same.
new text end

(c) In a planned community utilizing a CIC plat complying with section
515B.2-110(d)(1) and (2), except as the declaration otherwise provides, the unit
boundaries shall be the lot lines designated on a plat recorded pursuant to chapter 505new text begin or
the tract boundaries designated on a registered land survey recorded pursuant to chapter
508 or 508A
new text end.

deleted text begin (d) If any chute, flue, duct, wire, pipe, conduit, bearing wall, bearing column, or any
other fixture serving fewer than all units lies partially within and partially outside of the
boundaries of the unit or units served, any portion thereof serving only that unit or units is
a limited common element allocated solely to that unit or units, and any portion thereof
serving any portion of the common elements is a part of the common elements.
deleted text end

deleted text begin (e) deleted text enddeleted text beginSubject to subsectiondeleted text end (d)new text begin Except as provided in section 515B.2-109(c)new text end, all
spaces, deleted text begininterior partitions, and otherdeleted text end fixtures and improvementsnew text begin located whollynew text end within the
boundaries of a unit are a part of the unit.

deleted text begin (f) Improvements such as shutters, awnings, window boxes, doorsteps, stoops,
porches, balconies, decks, patios, perimeter doors and windows, and their frames,
constructed as part of the original construction to serve a single unit, and authorized
replacements and modifications thereof, if located wholly or partially outside the unit's
boundaries, are limited common elements allocated exclusively to that unit.
deleted text end

Sec. 3.

Minnesota Statutes 2008, section 515B.2-105, is amended to read:


515B.2-105 DECLARATION CONTENTS; ALL COMMON INTEREST
COMMUNITIES.

(a) The declaration shall contain:

(1) the number of the common interest community, whether the common interest
community is a condominium, planned community or cooperative, and the name of
the common interest community, which shall appear at the top of the first page of the
declaration in the following format:

Common Interest Community No. ....

(Type of Common Interest Community)

(Name of Common Interest Community)

DECLARATION

(2) a statement as to whether the common interest community is or is not subject
to a master association;

(3) the name of the association, a statement that the association has been incorporated
and a reference to the statute under which it was incorporated;

(4) a legally sufficient description of the real estate included in the common interest
community, a statement identifying any appurtenant easement necessary for access to a
public street or highway, and a general reference to any other appurtenant easements;

(5) a description of the boundaries of each unit created by the declaration and the
unit's unit identifier;

(6) in a planned community containing common elements, a legally sufficient
description of the common elements;

(7) in a cooperative, a statement as to whether the unit owners' interests in all units
and their allocated interests are real estate or personal property;

(8) an allocation to each unit of the allocated interests in the manner described in
section 515B.2-108;

(9) a statement deleted text beginofdeleted text end (i) new text beginof new text endthe total number of unitsnew text begin,new text end and (ii) deleted text beginwhich units will bedeleted text endnew text begin
identifying any units that are
new text end restricted to residential use and deleted text beginwhich units will bedeleted text endnew text begin any units
that are
new text end restricted to nonresidential use;

(10)new text begin if applicable,new text end a statement new text begin (i) new text endof the maximum number of units deleted text beginwhichdeleted text endnew text begin thatnew text end may
be created by the subdivision or conversion of units owned by the declarant pursuant
to section 515B.2-112new text begin, and (ii) in declarations recorded on or after August 1, 2010,
identifying the units that a declarant may subdivide or convert or a statement that a
declarant may subdivide or convert all units
new text end;

(11) any material restrictions on use, occupancy, or alienation of the units, or on
the sale price of a unit or on the amount that may be received by an owner on sale,
condemnation or casualty loss to the unit or to the common interest community, or on
termination of the common interest community; provided, that these requirements shall
not affect the power of the association to adopt, amend or revoke rules and regulations
pursuant to section 515B.3-102;

(12) a statement as to whether time shares are permitted;

(13) a statement as to whether the common interest community includes any
shoreland, as defined in section 103F.205, and, if the common interest community includes
shoreland, a statement that the common interest community may be subject to county,
township, or municipal ordinances or rules affecting the development and use of the
shoreland area; and

(14) deleted text beginalldeleted text endnew text begin if applicable,new text end matters required by sections 515B.1-103deleted text begin(32)deleted text endnew text begin(33)new text end, Special
Declarant Rights; 515B.2-107, deleted text beginLeaseholdsdeleted text endnew text begin Declaration of Leasehold Common Interest
Communities
new text end; 515B.2-109, Common Elements and Limited Common Elements;
515B.2-110, Common Interest Community Platnew text begin (CIC Plat)new text end; 515B.3-115, Assessments for
Common Expenses; and 515B.2-121, Master Associations.

(b) The declaration may contain any other matters the declarant considers
appropriate.

Sec. 4.

Minnesota Statutes 2008, section 515B.2-106, is amended to read:


515B.2-106 DECLARATION OF FLEXIBLE COMMON INTEREST
COMMUNITIES.

(a) The declaration for a flexible common interest community shall include, in
addition to the matters specified in section 515B.2-105:

(1) a reservation of any rights to add additional real estate;

(2) a statement of any time limit, not exceeding ten years after the recording of the
declaration, upon which any right reserved under paragraph (1) will lapse, together with a
statement of any circumstances that will terminate the option before the expiration of the
time limit. If no time limit is set forth in the declaration, the time limit shall be ten years
after the recording of the declaration; provided, that the time limit may be extended by an
amendment to the declaration approved in writing by the declarant, and by the vote or
written agreement of unit owners, other than the declarant or an affiliate of the declarant,
to whose units are allocated at least 67 percent of the votes in the association;

(3) a statement of any limitations on any rights reserved under paragraph (1), other
than limitations created by or imposed pursuant to law;

(4) a legally sufficient description of the additional real estate;

(5) a statement as to whether portions of any additional real estate may be added
at different times;

(6) a statementnew text begin, based upon the declarant's good faith estimate, new text end of (i) the deleted text beginmaximumdeleted text endnew text begin
total
new text end number of unitsdeleted text begin, based upon the declarant's good faith estimate,deleted text end that may be created
within any additional real estate, and (ii) how many of those units will be restricted to
residential use;

(7) a statement that any buildings and units erected upon the additional real estate,
when and if added, will be compatible with the other buildings and units in the common
interest community in terms of architectural style, quality of construction, principal
materials employed in construction, and size, or a statement of any differences with respect
to the buildings or units, or a statement that no assurances are made in those regards;

(8) a statement that all restrictions in the declaration affecting use, occupancy, and
alienation of units will apply to units created in the additional real estate, when and if
added, or a statement of any differences with respect to the additional units;

(9) a statement as to whether any assurances made in the declaration regarding
additional real estate pursuant to paragraphs (5) through (8) will apply if the real estate is
not added to the common interest community.

(b) A declarant need not have an interest in the additional real estate in order to
identify it as such in the declaration, and the recording officer shall index the declaration
as provided in section 515B.1-116(a). Identification of additional real estate in the
declaration does not encumber or otherwise affect the title to the additional real estate.

Sec. 5.

Minnesota Statutes 2008, section 515B.2-108, is amended to read:


515B.2-108 ALLOCATION OF INTERESTS.

(a) The declaration shall allocate to each unit:

(1) in a condominium, a fraction or percentage of undivided interests in the common
elements and in the common expenses of the association and a portion of the votes
in the association;

(2) in a cooperative, an ownership interest in the association, a fraction or percentage
of the common expenses of the association and a portion of the votes in the association; and

(3) in a planned community, a fraction or percentage of the common expenses of the
association and a portion of the votes in the association.

(b) The declaration shall state the formulas used to establish allocations of interests.
If the fractions or percentages are all equal the declaration may so state in lieu of stating
the fractions or percentages. The declaration need not allocate votesnew text begin or a share of common
expenses
new text end to units that are auxiliary to other units, such as garage units or storage units.
The allocations shall not discriminate in favor of units owned by the declarant or an
affiliate of the declarant, except as provided in sections 515B.2-121 and 515B.3-115.

(c) If units may be added to the common interest community, the formulas used
to reallocate the allocated interests among all units included in the common interest
community after the addition shall be the formulas stated in the declaration.

(d) The declaration may authorize special allocations: (i) of unit owner votes among
certain units or classes of units on particular matters specified in the declaration, or (ii) of
common expenses among certain units or classes of units on particular matters specified
in the declaration. Special allocations may only be used to address operational, physical
or administrative differences within the common interest community. A declarant may
not utilize special allocations for the purpose of evading any limitation or obligation
imposed on declarants by this chapter nor may units constitute a class because they are
owned by a declarant.

(e) The sum of each category of allocated interests allocated at any time to all the
units must equal one if stated as a fraction or 100 percent if stated as a percentage.
In the event of a discrepancy between an allocated interest and the result derived from
application of the pertinent formula, the allocated interest prevails.

(f) In a condominium or planned community, the common elements are not subject
to partition, and any purported conveyance, encumbrance, judicial sale, or other voluntary
or involuntary transfer of an undivided interest in the common elements made without
the unit to which that interest is allocated is void. The granting of easements, licenses or
leases pursuant to section new text begin 515B.2-109 or new text end515B.3-102 shall not constitute a partition.

(g) In a cooperative, any purported conveyance, encumbrance, judicial sale, or other
voluntary or involuntary transfer of an ownership interest in the association made without
the possessory interest in the unit to which that interest is related is void.

Sec. 6.

Minnesota Statutes 2008, section 515B.2-109, is amended to read:


515B.2-109 COMMON ELEMENTS AND LIMITED COMMON ELEMENTS.

(a) Except as limited by the declaration or this chapter, common elements other than
limited common elements may be used in common by all unit owners. Limited common
elements are designated for the exclusive use of the unit owners of the unit or units to
which the limited common elements are allocated, subject to subsection (b) and the rights
of the association as set forth in the declaration, the bylaws or this chapter.

(b) Except for the limited common elements described in deleted text beginsection 515B.2-102,
deleted text endsubsections new text begin(c) and new text end(d)new text begin,new text end deleted text beginand (f),deleted text end the declaration shall specify to which unit or units each
limited common element is allocated.

new text begin (c) Unless otherwise provided in the declaration, if any chute, flue, duct, wire, pipe,
conduit, bearing wall, bearing column, or other fixture or improvement: (i) serves one or
more but fewer than all units and is located wholly or partially outside the unit boundaries,
it is a limited common element allocated solely to the unit or units served; (ii) serves all
units or any portion of the common elements, it is a part of the common elements; or (iii)
serves only the unit and is located wholly within the unit boundaries, it is a part of the unit.
new text end

new text begin (d) Unless otherwise provided in the declaration, improvements such as shutters,
awnings, window boxes, doorsteps, stoops, porches, balconies, decks, patios, perimeter
doors and windows, and their frames, constructed as part of the original construction to
serve a single unit or units, and authorized replacements and modifications thereof, if
located wholly or partially outside the unit boundaries, are limited common elements
allocated solely to the unit or units served.
new text end

new text begin (e) If the declaration so provides, and subject to any different licensing provisions in
a declaration recorded before August 1, 2010, the declarant may grant to a unit owner an
exclusive license for the use of a common element originally designed and constructed to
serve as a garage stall, storage locker, or other similar common element space, in which
case the common element license shall be deemed to be appurtenant to the unit owner's
unit, subject to transfer if so provided by the declaration. The declarant shall, at the time
the license is granted, provide to the association a common element license evidenced
by a separate instrument signed by the declarant, that, at a minimum, identifies the
licensed common element, the unit identifier of the unit to which it is appurtenant, and
a reference to the section of the declaration governing common element licenses. If the
declaration so provides, the declarant may require the onetime payment to the declarant of
a consideration for the grant of a license.
new text end

new text begin (1) Except as provided in the declaration or this subsection, no interest in the
common element license may be held or transferred separate from the unit, and the
purported transfer of any interest in the license other than to another unit owner shall be
void.
new text end

new text begin (2) The right of any declarant to grant a common element license shall terminate at
the earlier of (i) the conveyance of all units to persons other than a declarant or (ii) ten
years after the recording of the declaration.
new text end

new text begin (3) The document granting the common element license shall not be recorded. The
association shall maintain records of all common element licenses including originals
or copies of the common element licenses and transfers of common element licenses
authorized by the declaration.
new text end

new text begin (4) A common element license granted pursuant to this subsection shall not be
subject to the approval requirements set forth in section 515B.3-102(a)(9).
new text end

deleted text begin (c)deleted text end new text begin(f) new text endAn allocation of limited common elements may be changed by an amendment
to the declaration executed by the unit owners between or among whose units the
reallocation is made and the association. The amendment shall be approved by the board
of directors of the association as to form, and compliance with the declaration and this
chapter. The association shall establish fair and reasonable procedures and time frames for
the submission and processing of the reallocations, and shall maintain records thereof.
If approved, the association shall cause the amendment to be recorded promptly. The
amendment shall be effective when recorded. The association may require the unit owners
requesting the reallocation to pay all fees and costs for reviewing, preparing and recording
the amendment and any amended CIC plat.

Sec. 7.

Minnesota Statutes 2008, section 515B.2-110, is amended to read:


515B.2-110 COMMON INTEREST COMMUNITY PLAT (CIC PLAT).

(a) A CIC plat is required for condominiums and planned communities, and
cooperatives in which the unit owners' interests are characterized as real estate. The CIC
plat is a part of the declaration in condominiums, in planned communities utilizing a CIC
plat complying with subsection (c), and in cooperatives in which the unit owners' interests
are characterized as real estate, but need not be physically attached to the declaration.

(1) In a condominium,new text begin a planned community not utilizing a subdivision plat or
registered land survey under subsection (d)(1),
new text end or a cooperative in which the unit owners'
interests are characterized as real estate, the CIC plat shall comply with subsection (c).

(2) In a planned community, a CIC plat which does not comply with subsection
(c) shall consist of all or part of a subdivision plat or registered land survey complying
with subsection (d), or any combination thereof. The deleted text beginCICdeleted text endnew text begin subdivisionnew text end plat or registered
land survey need not contain the number of the common interest community and may be
recorded at any time before the recording of the declaration; provided, that if the CIC plat
complies with subsection (c), the number of the common interest community shall be
included and the CIC plat shall be recorded at the time of recording of the declaration.

(3) In a cooperative in which the unit owners' interests are characterized as personal
property, a CIC plat shall not be required. In lieu of a CIC plat, the declarationnew text begin,new text end or any
amendment deleted text beginto itdeleted text endnew text begin or supplemental declarationnew text end creating, converting, or subdividing units deleted text beginin
a personal property cooperative
deleted text endnew text begin,new text end shall include an exhibit containing anew text begin dimensioned,new text end scale
drawing deleted text beginof each building, identifying the building, and showing the perimeter walls of
each unit created or changed by the declaration or any amendment to it, including
deleted text endnew text begin showing
(i) the boundaries of the land constituting the cooperative property, (ii) the location and
dimensions of the front, rear, and side boundaries of each unit, and (iii)
new text end the unit's unit
identifierdeleted text begin,deleted text end and deleted text beginitsdeleted text end location within the deleted text beginbuilding if the building contains more than one
unit
deleted text endnew text begin cooperative propertynew text end.

(b) The CIC plat, or supplemental or amended CIC plat, for condominiums, for
planned communities using a plat complying with subsection (c), and for cooperatives in
which the unit owners' interests are characterized as real estate, shall contain certifications
by a licensed professional land surveyor and licensed professional architect, as to the
parts of the CIC plat prepared by each, that (i) the CIC plat accurately depicts all
information required by this section, and (ii) the work was undertaken by, or reviewed
and approved by, the certifying land surveyor or architect. The portions of the CIC plat
depicting the dimensions of the portions of the common interest community described
in subsections (c)(8), (9), new text begin and new text end(10),deleted text begin and (12),deleted text end may be prepared by either a land surveyor
or an architect. The other portions of the CIC plat shall be prepared only by a land
surveyor. A certification of the CIC plat or supplemental CIC plat, or an amendment
to it, under this subsection by an architect is not required if all parts of the CIC plat,
supplemental CIC plat, or amendment are prepared by a land surveyor. Certification by
the land surveyor or architect does not constitute a guaranty or warranty of the nature,
suitability, or quality of construction of any improvements located or to be located in
the common interest community.

(c) A CIC plat for a condominium,new text begin a planned community not utilizing a subdivision
plat or registered land survey under subsection (d)(1),
new text end or a cooperative in which the unit
owners' interests are characterized as real estate, shall show:

(1) the number of the common interest community, and the boundaries, dimensions
and a legally sufficient description of the land included therein;

(2) the dimensions and location of all existingdeleted text begin,deleted text endnew text begin roadways andnew text end material structural
improvements deleted text beginand roadwaysdeleted text endnew text begin that are part of the common elementsnew text end;

(3) the intended location and dimensions of deleted text beginany contemplated common elementdeleted text endnew text begin all
roadways and material structural
new text end improvements deleted text beginto be constructeddeleted text endnew text begin that may be constructed
by the declarant
new text end within the common deleted text begininterest communitydeleted text endnew text begin elementsnew text end after the filing of the
CIC plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT";

(4) the location and dimensions of any additional real estate, labeled as such, and a
legally sufficient description of the additional real estate;

(5) the extent of any encroachments by or upon any portion of the common interest
community;

(6) the location and dimensions of all recorded easements within the land included
in the common interest community burdening any portion of the land;

(7) the distance and direction between noncontiguous parcels of real estate;

(8) the location and dimensions of limited common elements, except that with
respect to limited common elements described in section deleted text begin515B.2-102, subsections (d) and
(f)
deleted text endnew text begin 515B.2-109, subsections (c) and (d)new text end, only such material limited common elements as
porches, balconies, decks,new text begin andnew text end patios, deleted text beginand garagesdeleted text end shall be shown;

(9) the location and dimensions of the front, rear, and side boundaries of each unit
and that unit's unit identifier;

(10) the location and dimensions of the upper and lower boundaries of each unit
with reference to an established or assumed datum and that unit's unit identifier;new text begin and
new text end

(11) a legally sufficient description of any real estate in which the unit owners will
own only an estate for years, labeled as "leasehold real estate"deleted text begin;deleted text endnew text begin.
new text end

deleted text begin (12) any units which may be converted by the declarant to create additional units or
common elements identified separately.
deleted text end

(d) A CIC plat for a planned community either shall comply with subsection (c),
or it shall:

(1) comply with chapter 505, 508, or 508A, as applicable; and

(2) comply with the applicable subdivision requirements of any governmental
authority within whose jurisdiction the planned community is located, subject to the
limitations set forth in section 515B.1-106.

(e) If a declarant adds additional real estate, the declarant shall record a supplemental
CIC plat or plats for the real estate being added, conforming to the requirements of this
section which apply to the type of common interest community in question. If less than
all additional real estate is being added, the supplemental CIC plat for a condominium,
a planned community whose CIC plat complies with subsection (c), or a cooperative
in which the unit owners' interests are characterized as real estate, shall also show the
location and dimensions of the remaining portion.

deleted text begin (f) If, pursuant to section 515B.2-112, a declarant subdivides or converts any unit
into two or more units, common elements or limited common elements, or combines
two or more units, the declarant shall record an amendment to the CIC plat showing
the location and dimensions of any new units, common elements or limited common
elements thus created.
deleted text end

deleted text begin (g)deleted text end new text begin(f) new text endA CIC plat which complies with subsection (c) is not subject to chapter 505.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective August 1, 2010,
and apply only to common interest communities created on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2008, section 515B.2-111, is amended to read:


515B.2-111 EXPANSION OF FLEXIBLE COMMON INTEREST
COMMUNITY.

(a) To add additional real estate pursuant to a right reserved under section
515B.2-106(a)(1), the declarant and deleted text beginall persons whose interests indeleted text endnew text begin the owners ofnew text end the
additional real estate deleted text beginwill be conveyed to unit owners or the associationdeleted text endnew text begin to be addednew text end,
except vendors under a contract for deed, shall execute and record deleted text begina supplemental
declaration
deleted text endnew text begin an instrument, titled a "supplemental declaration,"new text end as provided in this section.
The supplemental declaration deleted text beginshall be titled a "supplemental declaration,"deleted text end shall be limited
to matters authorized by this section, and shall include:

(1) a legally sufficient description of the real estate added by the supplemental
declaration;

(2) a description of the boundaries of each unit created by the supplemental
declaration, consistent with the declaration, and the unit's unit identifier;

(3) in a planned community containing common elements, a legally sufficient
description of the common elements;

(4) a reallocation of the common element interests, votes in the association, and
common expense liabilities as applicable, in compliance with the declaration and section
515B.2-108;

(5) a description of any limited common elements formed out of the additional real
estate, designating the unit to which each is allocated to the extent required by section
515B.2-109;

new text begin (6) a statement, based upon the declarant's current good faith estimate, of the total
number of units that may be created within any remaining additional real estate;
new text end

deleted text begin (6)deleted text end new text begin(7) new text enda statement as to whether or not the period of declarant control has terminated,
regardless of the reason for such termination; and

deleted text begin (7)deleted text end new text begin(8) new text endan attached affidavit attesting to the giving of the notice required by
subsection (b), if such notice is required.

(b) If the period of declarant control has terminated, a declarant shall give notice of
its intention to add additional real estate to the association (Attention: president of the
association) by a notice given in the manner provided in section 515B.1-115 not less
than 15 days prior to recording the supplemental declaration which adds the additional
real estate. A copy of the supplemental declaration shall be attached to the notice. The
supplemental declaration may be in proposed form; however, following notice, the
supplemental declaration shall not be changed so as to materially and adversely affect the
rights of unit owners or the association unless a new 15-day notice is given in accordance
with this section.

(c) A lien upon the additional real estate that is not also upon the existing common
interest community is a lien only upon the units, and their respective interest in the
common elements (if any), that are created from the additional real estate. Units within
the common interest community as it existed prior to expansion are transferred free of
liens that existed only upon the additional real estate, notwithstanding the fact that the
interest in the common elements is a portion of the entire common interest community,
including the additional real estate.

(d) If a supplemental declaration in a planned community creates common
elements, then a conveyance of the common elements to the association shall be recorded
simultaneously with the supplemental declaration. If a supplemental declaration adds
additional real estate to a cooperative, then a conveyance of the additional real estate to
the association shall be recorded simultaneously with the supplemental declaration.

Sec. 9.

Minnesota Statutes 2008, section 515B.2-112, is amended to read:


515B.2-112 SUBDIVISION, COMBINATION, OR CONVERSION OF UNITS.

(a) If the declaration so provides, (i) deleted text beginonedeleted text endnew text begin a unitnew text end or deleted text beginmoredeleted text end unitsnew text begin that are not owned
exclusively by a declarant or the association
new text end may be subdivided into two or more units
or combined into a lesser number of units, or (ii) a unit or units owned exclusively by a
declarantnew text begin or the associationnew text end may be subdivided, combined, or converted into one or more
units, limited common elements, common elements, or a combination of units, limited
common elements or common elements.

(b) If the unit or units are not owned exclusively by a declarantnew text begin or the associationnew text end,
the unit owners of the units to be combined or subdivided shall cause to be prepared
and submitted to the association for approval an application for an amendment to the
declaration and amended CIC plat, for the purpose of subdividing or combining the
unit or units. The application shall contain, at a minimum, a general description of the
proposed subdivision or combination, and shall specify in detail the matters required
by deleted text beginsubsectiondeleted text endnew text begin subsectionsnew text end deleted text begin(c)deleted text endnew text begin (d)new text end(2) deleted text beginanddeleted text endnew text begin,new text end (3)new text begin, and (4)new text end. The basis for disapproval of the
application by the association shall be limited to (i) health or safety considerations, (ii)
liability considerations for the association and other unit owners, (iii) aesthetic changes
to the common elements or another unit, (iv) any material and adverse impact on the
common elements or another unit, or (v) a failure to comply with the declaration, this
chapter, or governmental laws, ordinances, or regulations. The association shall give
written notice of its decision and required changes to the unit owner or owners who made
the application. The association shall establish fair and reasonable procedures and time
frames for the submission and prompt processing of the applications. If an application
under this subsection is approved, the unit owner shall cause an amendmentnew text begin,new text end and new text begin an
new text endamended CIC plat new text beginif required, new text endto be prepared based upon the approved application.

new text begin (c) If the unit or units are owned exclusively by a declarant or the association, the
declarant or the association, as applicable, shall have the authority to unilaterally prepare,
execute, and record, at its expense, an amendment to the declaration and an amended
CIC plat subdividing, combining, or converting the unit or units. The amendment shall
comply with subsection (d)(2), (3), (4), and (5), and shall be limited to those provisions
necessary to accomplish the subdivision, combination, or conversion unless the consent of
unit owners required to amend the declaration is obtained.
new text end

deleted text begin (c)deleted text end new text begin(d) new text endAn amendment new text begin approved new text endunder deleted text beginthis sectiondeleted text endnew text begin subsection (b)new text end shall:

(1) be executed by the association and deleted text beginbydeleted text end each unit owner deleted text beginand any secured party
with respect to
deleted text endnew text begin ofnew text end each unit to be combined or subdivided, deleted text beginif approved under subsection
(b)
deleted text endnew text begin and consented to by each secured party with a security interest in a unit to be combined
or subdivided
new text end;

(2) assign a unit identifier to each unit resulting from the subdivision, conversion, or
combination;

(3) reallocate the common element interest, votes in the association, and common
expense liability, as applicable, formerly allocated to the unit or units deleted text beginto bedeleted text endnew text begin being
new text end combined, converted, or subdividednew text begin (i) onlynew text end among the new text begin resulting new text endunit or units deleted text beginresulting
from the subdivision or combination
deleted text end, ornew text begin (ii)new text end among all new text begin remaining new text endunits in the case of a
conversionnew text begin of a unit or units entirely to common elementsnew text end, as applicable, on the basis of
the formula described in the declaration; deleted text beginand
deleted text end

new text begin (4) reallocate limited common elements formerly allocated to the unit or units being
combined, converted, or subdivided among the resulting unit or units, or designate part or
all of the limited common elements as common elements in the case of a conversion of
a unit or units; and
new text end

deleted text begin (4)deleted text end new text begin(5) new text endconform to the requirements of the declaration and this chapter.

deleted text begin (d)deleted text end new text begin(e) new text endIf the association determines that the amendment and amended CIC plat
conform to the deleted text beginapproveddeleted text end applicationnew text begin approved under subsection (b)new text end, the declaration,
and this chapter, the association shall execute the amendment and cause the amendment
and the amended CIC plat to be recorded. The association may require the unit owners
executing the amendment to pay all fees and costs for reviewing, preparing, and recording
the amendment and the amended CIC plat, and any other fees or costs incurred by the
association in connection therewith.

deleted text begin (e) If the unit or units are owned exclusively by a declarant, the declarant shall
have the authority to unilaterally prepare and record, at its expense, an amendment and
an amended CIC plat subdividing, combining, or converting the unit or units. The
amendment shall comply with subsections (c)(2), (3), and (4), and shall be limited to those
provisions necessary to accomplish the subdivision, combination, or conversion unless the
consent of unit owners required to amend the declaration is obtained.
deleted text end

(f) The amended CIC plat shall show the resulting common elements, limited
common elements or units, as subdivided, combined, or converted.

(g) A secured party's interest and remedies shall be deemed to apply to the unit or
units that result from the subdivision or combination of the unit or units in which the
secured party held a security interest. If the secured party enforces any remedy, including
foreclosure of its lien, against any of the resulting units, all instruments and notices
relating to the foreclosure shall describe the subject property new text begin as described new text endin deleted text beginterms ofdeleted text end the
amendment and the amended CIC plat which created the resulting units.

Sec. 10.

Minnesota Statutes 2008, section 515B.2-113, is amended to read:


515B.2-113 deleted text beginALTERATIONSdeleted text endnew text begin ALTERATIONnew text end OF UNITS.

(a) Subject to the provisions of the declaration and applicable law, a unit owner
may, at the unit owner's expense, make any improvements or alterations to the unit,
provided: (i) that they do not impair the structural integrity or mechanical systems, affect
the common elements, or impair the support of any portion of the common interest
community; (ii) that prior arrangements are made with the association to ensure that other
unit owners are not disturbed; (iii) that the common elements are not damaged; and (iv)
that the common elements and other units are protected against mechanics' liens.

(b) Subject to the provisions of applicable law, a unit owner of a unit in residential
use may, at the unit owner's expense, make improvements or alterations to the unit as
necessary for the full enjoyment of the unit by any person residing in the unit who has a
disability, as provided in the Fair Housing Amendments Act, United States Code, title
42, section 3601, et seq., and the Minnesota Human Rights Act, chapter 363A, and any
amendments to those acts.new text begin This subsection applies to all common interest communities
subject to this chapter, chapter 515, or 515A, notwithstanding any contrary provision of
section 515B.1-102.
new text end

(c) The declaration, bylaws, rules, and regulations, or agreements with the
association may not prohibit the improvements or alterations referred to in subsection (b),
but may reasonably regulate the type, style, and quality of the improvements or alterations,
as they relate to health, safety, and architectural standards. In addition, improvements
or alterations made pursuant to subsection (b) must comply with subsection (a)(i), (ii),
(iii), and (iv).

(d) deleted text beginNotwithstanding any contrary provision of section 515B.1-102, subsection (b)
applies to all common interest communities subject to this chapter, chapter 515, or 515A.
deleted text end
The unit owner's rights under this section may not be waived.

(e) Subsection (b) does not apply to restrictions on improvements or alterations
imposed by statute, rule, or ordinance.

(f) Subject to the provisions of the declaration and applicable law, a unit owner
may, at the unit owner's expense, after acquiring title to an adjoining unit or an adjoining
part of an adjoining unit, with the prior written approval of the association and first
mortgagees of the affected units, remove or alter any intervening partition or create
apertures therein, even if the partition is part of the common elements, if those acts do not
impair the structural integrity or mechanical systems or lessen the support of any portion
of the common interest community. The adjoining unit owners shall have the exclusive
license to use the space occupied by the removed partition, but the use shall not create
an easement or vested right. Removal of partitions or creation of apertures under this
deleted text begin paragraphdeleted text endnew text begin subsectionnew text end is not an alteration of boundaries. The association may require that
the owner or owners of units affected replace or restore any removed partition, that the
unit owner comply with subsection (a)(i), (ii) and (iii), and that the unit owner pay all fees
and costs incurred by the association in connection with the alteration.

Sec. 11.

Minnesota Statutes 2008, section 515B.2-114, is amended to read:


515B.2-114 RELOCATION OF BOUNDARIES BETWEEN ADJOINING
UNITS.

(a) Subject to the provisions of the declaration and applicable law, the boundaries
between adjoining units may be relocated by an amendment to the declaration upon the
submission of an application to the association by the owners of those units and approval
by the association. The application shall contain, at a minimum, a general description of
the proposed relocation, and shall specify in detail the matters required by subsection
(b)(2) and (3).

(b) The association shall establish fair and reasonable procedures and time frames
for the submission and prompt processing of the applications. The basis for disapproval
shall be limited to structural or safety considerations, or a failure to comply with
the declaration, this chapter, or governmental laws, ordinances or regulations. If the
application is approved, the unit owners making the application shall cause an amendment
and amended CIC plat to be prepared based upon the approved application, and submit
them to the association for approval. The amendment shall:

(1) be executed by thenew text begin association and thenew text end unit ownersnew text begin making the application,new text end and
new text begin consented to new text endby any secured party with respect to the units;

(2) identify the units involved;

(3) reallocate the common element interest, votes in the association and common
expense liability formerly allocated to the units among the newly defined units on the
basis described in the declaration;

(4) contain words of conveyance between them;

(5) contain such other provisions as may be reasonably required by the association;
and

(6) conform to the requirements of the declaration and this chapter.

(c) The interest and remedies of a secured party which joins in the amendment
pursuant to this section shall be deemed to be modified as provided in the amendment.

(d) The association may require the unit owners making the application to build a
boundary wall and other common elements between the units, and to pay all fees and costs
for reviewing, preparing and recording the amendment and the amended CIC plat, and any
other fees or costs incurred by the association in connection therewith.

(e) The applicant shall deliver a copy of the recorded amendment and amended
CIC plat to the association.

Sec. 12.

Minnesota Statutes 2008, section 515B.2-118, is amended to read:


515B.2-118 AMENDMENT OF DECLARATION.

(a) The declaration, including any CIC plat, may be amended only by vote or written
deleted text begin agreementdeleted text endnew text begin consentnew text end of unit owners of units to which at least 67 percent of the votes in the
association are allocated, or any greater or other requirement the declaration specifies,
subject to the following qualifications:

(1) A declarant may execute supplemental declarations or amendments under
section 515B.2-111 or 515B.2-112.

(2) The association and certain unit owners, as applicable, may execute amendments
under section 515B.2-107, 515B.2-109, 515B.2-112, deleted text begin515B.2-113,deleted text end 515B.2-114,
deleted text begin 515B.2-119, 515B.2-122, 515B.2-123,deleted text end or 515B.2-124.

(3)new text begin Except for amendments or supplemental declarations under subsection (a)(1)
and (2), and except as provided in sections 515B.1-102(d)(3) and 515B.2-106(a)(2),
new text end the
unanimous written consent of the unit owners is required for any amendment which (i)
creates or increases special declarant rights, (ii) increases the number of units, (iii) changes
the boundaries of any unit, (iv) changes the allocated interests of a unit, (v) changes
common elements to limited common elements or units, (vi) changes the authorized
use of a unit from residential to nonresidential, or conversely, or (vii) changes the
characterization of the unit owner's interest in a cooperative from real estate to personal
property, or converselydeleted text begin; unless the amendment is expressly permitted or required by other
provisions of this chapter
deleted text end. Where the amendment involves the conversion of common
elements into a unit or units, the title to the unit or units created shall, upon recording of
the amendment, vest in the association free and clear of the interests of the unit ownersnew text begin
and all secured parties holding security interests in units
new text end.

new text begin (4) In addition to any other requirements contained in this section, a declarant must
execute an amendment that eliminates or modifies any special declarant rights held by
that declarant.
new text end

new text begin (5) If any provision of this chapter, the declaration, the bylaws, or the articles of
incorporation requires the consent of a secured party holding a security interest in a unit
as a condition for the approval or effectiveness of an amendment to the declaration, the
bylaws, or the articles of incorporation, the consent is deemed to be granted if the secured
party's written refusal to consent is not received by the association within 60 days after
the secured party receives from the association notice and a copy of the amendment, by
certified United States mail, postage prepaid and return receipt requested. If the secured
party has not otherwise provided to the association an address for notice, the association
shall send the notice to the address, if any, set forth in the recorded instrument that
evidences the security interest. This subsection shall not apply to an amendment that
affects the priority of a secured party's security interest or the ability of a secured party
to foreclose its security interest. In such cases, the number or percentage of secured
parties whose consent is required by the instrument to be amended must consent to the
amendment in writing.
new text end

deleted text begin (4)deleted text end new text begin(6) new text endThe declaration may specify less than 67 percent for approval of an
amendment, but only if all of the units are restricted to nonresidential use.

(b) No action to challenge the validity of an amendment deleted text beginadopted by the association
pursuant to this section
deleted text endnew text begin or a supplemental declarationnew text end may be brought more than two years
after the amendmentnew text begin or supplemental declarationnew text end is recorded.

(c) Every amendment to deleted text beginthedeleted text endnew text begin anew text end declarationnew text begin or supplemental declarationnew text end shall be
recorded in every county in which any portion of the common interest community is
located and is effective only when recorded. If an amendment (i) changes the number
of units, (ii) changes the boundary of a unit, (iii) changes common elements to limited
common elements, deleted text beginor conversely,deleted text endnew text begin where the limited common element is required by
section 515B.2-110(c), to be shown on the CIC plat, (iv) changes limited common
elements to common elements if the limited common elements are show as limited
common elements on the CIC plat,
new text end or deleted text begin(iv)deleted text endnew text begin (v)new text end makes any other change that deleted text beginaffectsdeleted text endnew text begin
creates an inconsistency between the declaration, as amended, and
new text end the CIC plat, then an
amendment to the CIC plat reflecting the change shall be recorded.

Sec. 13.

Minnesota Statutes 2008, section 515B.2-119, is amended to read:


515B.2-119 TERMINATION OF COMMON INTEREST COMMUNITY.

(a) Except as otherwise provided in this chapter, a common interest community may
be terminated only by agreement of unit owners of units to which at least 80 percent
of the votes in the association are allocated, and 80 percent of the first mortgagees of
units (each mortgagee having one vote per unit financed), or any larger percentage the
declaration specifies. The declaration may specify a smaller percentage only if all of the
units are restricted to nonresidential use.

(b) An agreement to terminate shall be evidenced by a written agreement, executed
in the same manner as a deed by the number of unit owners and first mortgagees of units
required by subsection (a). The agreement shall specify a date after which the agreement
shall be void unless recorded before that date. The agreement shall also specify a date by
which the termination of the common interest community and the winding up of its affairs
must be accomplished. A certificate of termination executed by the association evidencing
the termination shall be recorded on or before the termination date, or the agreement to
terminate shall be revoked. The agreement to terminate, or a memorandum thereof, and
the certificate of termination shall be recorded in every county in which a portion of the
common interest community is situated and is effective only upon recording.

(c) In the case of a condominium or planned community containing only units
having upper and lower boundaries, a termination agreement may provide that all of the
common elements and units of the common interest community must be sold following
termination. If, pursuant to the agreement, any real estate in the common interest
community is to be sold following termination, the termination agreement shall set forth
the minimum terms of sale acceptable to the association.

(d) In the case of a condominium or planned community containing any units not
having upper and lower boundaries, a termination agreement may provide for sale of the
common elements, but it may not require that the units be sold following termination,
unless the original declaration provided otherwise or all unit owners whose units are to be
sold consent to the sale.

(e) The association, on behalf of the unit owners, shall have authority to contract
for the sale of real estate in a common interest community pursuant to this section,
subject to the required approval. The agreement to terminate shall be deemed to grant
to the association a power of attorney coupled with an interest to effect the conveyance
of the real estate on behalf of the holders of all interests in the units, including without
limitation the power to execute all instruments of conveyance and related instruments.
Until the sale has been completed, all instruments in connection with the sale have been
executed and the sale proceeds distributed, the association shall continue in existence
with all powers it had before termination.

(1) The instrument conveying or creating the interest in the common interest
community shall include as exhibits (i) an affidavit of the secretary of the association
certifying that the approval required by this section has been obtained and (ii) a schedule
of the names of all unit owners in the common interest community as of the date of the
approval.

(2) Proceeds of the sale shall be distributed to unit owners and secured parties as
their interests may appear, in accordance with subsections (h), (i), (j), and (k).

(3) Unless otherwise specified in the agreement of termination, until the association
has conveyed title to the real estate, each unit owner and the unit owner's successors in
interest have an exclusive right to occupancy of the portion of the real estate that formerly
constituted the unit. During the period of that occupancy, each unit owner and the unit
owner's successors in interest remain liable for all assessments and other obligations
imposed on unit owners by this chapter, the declaration or the bylaws.

(f) The legal description of the real estate constituting the common interest
community shall, upon the date of recording of the certificate of termination referred to
in subsection (b), be as follows:

(1) In a planned community utilizing a CIC plat complying with section
515B.2-110(d)(1) and (2), the lot and block description contained in the CIC plat, and any
amendments thereto, subject to any subsequent conveyance or taking of a fee interest in
any part of the property.

(2) In a condominium or cooperative, or a planned community utilizing a CIC
plat complying with section 515B.2-110(c), the underlying legal description of the real
estate as set forth in the declaration creating the common interest community, and any
amendments thereto, subject to any subsequent conveyance or taking of a fee interest in
any part of the property.

(3) The legal description referred to in this subsection shall apply upon the recording
of the certificate of termination. The recording officer for each county in which the
common interest community is located shall index the property located in that county
in its records under the legal description required by this subsection from and after the
date of recording of the certificate of termination. In the case of registered property, the
registrar of titles shall cancel the existing certificates of title with respect to the property
and issue one or more certificates of title for the property utilizing the legal description
required by this subsection.

(g) In a condominium or planned community, if the agreement to terminate
provides that the real estate constituting the common interest community is not to be sold
following termination, title to the common elements and, in a common interest community
containing only units having upper and lower boundaries described in the declaration, title
to all the real estate in the common interest community, vests in the unit owners upon
termination as tenants in common in proportion to their respective interest as provided
in subsection (k), and liens on the units shift accordingly. While the tenancy in common
exists, each unit owner and the unit owner's successors in interest have an exclusive right
to occupancy of the portion of the real estate that formerly constituted the unit.

(h) The proceeds of any sale of real estate pursuant to subsection (e), together with
the assets of the association, shall be held by the association as trustee for unit owners,
secured parties and other holders of liens on the units as their interests may appear. Before
distributing any proceeds, the association shall have authority to deduct from the proceeds
of sale due with respect to the unit (i) unpaid assessments levied by the association with
respect to the unit, (ii) unpaid real estate taxes or special assessments due with respect
to the unit, and (iii) the share of expenses of sale and winding up of the association's
affairs with respect to the unit.

(i) Following termination of a condominium or planned community, creditors of
the association holding liens on the units perfected before termination may enforce those
liens in the same manner as any lienholder, in order of priority based upon their times of
perfection. All other creditors of the association are to be treated as if they had perfected
liens on the units immediately before termination.

(j) In a cooperative, the declaration may provide that all creditors of the association
have priority over any interests of unit owners and creditors of unit owners. In that event,
following termination, creditors of the association holding liens on the cooperative which
were perfected before termination may enforce their liens in the same manner as any
lienholder, in order of priority based upon their times of perfection. All other creditors
of the association shall be treated as if they had perfected a lien against the cooperative
immediately before termination. Unless the declaration provides that all creditors of
the association have that priority:

(1) the lien of each creditor of the association which was perfected against the
association before termination becomes, upon termination, a lien against each unit owner's
interest in the unit as of the date the lien was perfected;

(2) any other creditor of the association is to be treated upon termination as if
the creditor had perfected a lien against each unit owner's interest immediately before
termination;

(3) the amount of the lien of an association's creditor described in paragraphs (1) and
(2) against each of the unit owners' interest shall be proportionate to the ratio which each
unit's common expense liability bears to the common expense liability of all of the units;

(4) the lien of each creditor of each unit owner which was perfected before
termination continues as a lien against that unit owner's interest in the unit as of the date
the lien was perfected; and

(5) the assets of the association shall be distributed to all unit owners and all
lienholders as their interests may appear in the order described in this section. Creditors of
the association are not entitled to payment from any unit owner in excess of the amount of
the creditor's lien against that unit owner's interest.

(k) The respective interest of unit owners referred to in subsections (e), (f), (g),
(h) and (i) are as follows:

(1) Except as provided in paragraph (2), the respective interests of unit owners are
the fair market values of their units, allocated interests, and any limited common elements
immediately before the termination, as determined by one or more independent appraisers
selected by the association. The decision of the independent appraisers must be distributed
to the unit owners and becomes final unless disapproved within 30 days after distribution
by unit owners of units to which 25 percent of the votes in the association are allocated.
The proportion of any unit's interest to that of all units is determined by dividing the fair
market value of that unit by the total fair market values of all the units.

(2) If any unit or any limited common element is destroyed to the extent that an
appraisal of the fair market value thereof before destruction cannot be made, the interests
of all unit owners shall be measured by: (i) in a condominium, their allocations of common
element interests immediately before the termination, (ii) in a cooperative, their respective
ownership interests immediately before the termination, and (iii) in a planned community,
their respective allocations of common expenses immediately before the termination.

(l) In a condominium or planned community, except as provided in subsection (m),
foreclosure or enforcement of a lien or encumbrance against the entire common interest
community does not terminate, of itself, the common interest community, and foreclosure
or enforcement of a lien or encumbrance against a portion of the common interest
community does not withdraw that portion from the common interest community.

(m) In a condominium or planned community, if a lien or encumbrance against a
portion of the real estate comprising the common interest community has priority over
the declaration and the lien or encumbrance has not been partially released, the parties
foreclosing the lien or encumbrance, upon foreclosure, may record an instrument excluding
the real estate subject to that lien or encumbrance from the common interest community.

(n) Following the termination of a common interest community in accordance with
this section, the deleted text beginboard of directors of thedeleted text end association shall deleted text begincause the association todeleted text end be
dissolved in accordance with law.

Sec. 14.

Minnesota Statutes 2008, section 515B.2-121, is amended to read:


515B.2-121 MASTER ASSOCIATIONS.

(a) A master association formed after June 1, 1994, shall be organized as a Minnesota
profit, nonprofit or cooperative corporation. A master association shall be incorporated
prior to the delegation to it of any powers under this chapter.

(b) The members of the master association shall be any combination of (i) unit
owners deleted text beginof one or more common interest communitiesdeleted text end, (ii) deleted text beginone or moredeleted text end associations,
(iii) deleted text beginone or moredeleted text end master associations, or (iv) owners of real estate or property owners'
associations not subject to this chapternew text begin but onlynew text end in combination with deleted text beginanydeleted text endnew text begin at least onenew text end other
category of member. An association or its members may be members of an entity created
before June 1, 1994, which performs functions similar to those performed by a master
association regardless of whether the entity is subject to this chapter.

(c) A master association shall be governed by anew text begin masternew text end board deleted text beginof directorsdeleted text end. Except
as expressly prohibited by the master declaration, the master association's articles of
incorporation or bylaws, or other provisions of this chapter, the master deleted text beginassociationdeleted text end board
may act in all instances on behalf of the master association. The directors of a master
association shall be elected or, if a nonprofit corporation, elected or appointed, in a manner
consistent with the requirements of the statute under which the master association is
formed and of the master association's articles of incorporation and bylaws, and subject to
the following deleted text beginrequirementsdeleted text end:

deleted text begin (1) Except as set forth in subsections (2) and (3), the members of the master
association shall elect the board of directors. A majority of the directors shall be members
of the master association or members of a member of the master association, and shall be
persons other than a declarant or affiliate of a declarant. If the member is not a natural
person, it may designate a natural person to act on its behalf.
deleted text end

deleted text begin (2) The articles of incorporation or bylaws of the master association may authorize
any person, whether or not the person is a member of, or otherwise subject to, the master
association, including a declarant, to appoint or elect one director.
deleted text end

deleted text begin (3) A master association's articles of incorporation may suspend the members' right
to elect or, in the case of a nonprofit corporation, elect or appoint, the master association's
board of directors for a specified time period. During this period, the person or persons
who execute the master declaration under subsection (f)(1), or their successors or assigns,
may appoint the directors. The period during which the person or persons may appoint
the directors begins when the master declaration is recorded and terminates upon the
earliest of:
deleted text end

deleted text begin (i) the voluntary surrender of the right to appoint directors;
deleted text end

deleted text begin (ii) the date ten years after the date the master declaration is recorded;
deleted text end

deleted text begin (iii) the date, if any, in the articles of incorporation; or
deleted text end

deleted text begin (iv) the date when at least 75 percent of the units and other parcels of real estate
which are referred to in subsection (f)(1)(vii) have been conveyed to such persons for
occupancy by the persons or their tenants.
deleted text end

deleted text begin (4) The term of any director appointed under subsection (3) expires 60 days after
the right to appoint directors terminates. The master association's board of directors shall
call an annual or special meeting of the master association's members to elect or appoint
successor directors within the 60-day period.
deleted text end

deleted text begin (5) The system for the election of directors shall be fair and equitable and shall
take into account the number of members of each association any of whose powers are
delegated to the master association, the needs of the members of the master association,
the allocation of liability for master association common expenses, and the types of
common interest communities and other real estate subject to the master association.
deleted text end

deleted text begin (d) The articles of incorporation or bylaws of the master association may authorize
special classes of directors and allocations of director voting rights, as follows: (i) classes
of directors that are elected by different classes of members, to address operational,
physical, or administrative differences within the master association, or (ii) class voting
by the classes of directors on specific issues affecting only a certain class or classes of
members, units or other parcels of real estate, or to otherwise protect the legitimate
interests of such class or classes. No person may utilize such special classes or allocations
for the purpose of evading any limitation imposed on declarants by this chapter.
deleted text end

new text begin (1) The master declaration may provide for a period of master developer control
of the master association during which a master developer or a person designated by
the master developer may appoint and remove the officers and directors of the master
association. The period of master developer control begins on the date of the recording of
the master declaration and terminates upon the earliest of the following events:
new text end

new text begin (i) the voluntary surrender of the right to appoint directors;
new text end

new text begin (ii) the date ten years after the date the master declaration is recorded, unless
extended by an amendment to the master declaration approved in writing by the master
developer, and by 67 percent of the votes of members other than the master developer;
new text end

new text begin (iii) the termination date, if any, in the master declaration; or
new text end

new text begin (iv) the date when at least 75 percent of the total units and other parcels of real estate
referred to in subsection (e)(1)(vii) have been conveyed to persons other than a master
developer, master association, declarant, or association.
new text end

new text begin (2) Upon the termination of the period of master developer control, the master board
shall cause a meeting of the members of the master association to be called and held
within 60 days after said termination, at which time the directors shall be elected by all
members, including the master developer if a member. If the master board fails or refuses
to call a meeting of the unit owners required to be called by this subsection, then the
members other than the master developer and its affiliates if they are members, may cause
the meeting to be called pursuant to the applicable provisions of the statute under which
the master association was created. If the master developer or its affiliates are members,
they shall be deemed to be present at the meeting for purposes of establishing a quorum
regardless of their failure to attend the meeting. The master board shall thereafter be
subject to the following:
new text end

new text begin (i) unless otherwise approved by a vote of members other than the master developer
or an affiliate of the master developer, a majority of the directors shall be members, or a
natural person designated by a member that is not a natural person, other than the master
developer or an affiliate of the master developer;
new text end

new text begin (ii) subject to the requirements of subsection (c)(2)(i), the articles of incorporation or
bylaws may authorize the master developer or a person designated by the master developer
to appoint one director, who need not be a member. The articles of incorporation or
bylaws shall not be amended to change or terminate the authorization to appoint one
director without the written consent of the master developer or other person possessing
the power to appoint; and
new text end

new text begin (iii) subject to the requirements of subsection (c)(2)(i), the articles of incorporation
or bylaws may authorize special classes of directors and director voting rights, as follows:
(A) classes of directors, (B) the appointment or election of directors in certain classes by
certain classes of members, or (C) class voting by classes of directors on issues affecting
only a certain class or classes of members, units, or other parcels of real estate, or to
otherwise protect the legitimate interests of such class or classes. No person may utilize
such special classes or class voting for the purpose of evading any limitation imposed by
this chapter on master developers or declarants.
new text end

deleted text begin (e)deleted text end new text begin(d) Subject to subsection (c)(1), new text endthe officers of a master association shall be
elected, appointed, or designated in a manner consistent with the statute under which
the master association is formed and consistent with the master association articles of
incorporation and bylaws.

deleted text begin (f)deleted text end new text begin(e) new text endThe creation and authority of a master association shall be governed by the
following requirements:

(1) A master declaration shall be recorded in connection with the creation of a
master association. The master declaration shall be executed by the owners of the real
estate subjected to the master declarationnew text begin and by the master developer if not an ownernew text end.
The master declaration shall contain, at a minimum:

(i) the name of the master association;

(ii) a legally sufficient description of the real estate which is subject to the master
declarationnew text begin, identifying any interest in the real estate which will be owned by the master
association,
new text end and a legally sufficient description of any other real estate which may be
subjected to the master declaration pursuant to subsection deleted text begin(g)deleted text endnew text begin (f)new text end;

(iii) a statement as to whether the real estate subject to, and which may be subjected
to, the master declaration collectively is or collectively will be a separate common interest
community;

(iv) a description of the members of the master association;

(v) a description of the master association's powers. To the extent described in
the master declaration, a master association has the powers with respect to the master
association's members and the property subject to the master declaration that section
515B.3-102 grants to an association with respect to the association's members and the
property subject to the declaration. A master association also has the powers delegated to
it by an association pursuant to subsection deleted text begin(f)deleted text endnew text begin (e)new text end(2) or by a property owners' association
not subject to the chapter; provided deleted text begin(i)deleted text endnew text begin (A)new text end that the master declaration identifies the
powers and authorizes the delegation either expressly or by a grant of authority to the
new text begin master new text endboard of the association or property owners' association and deleted text begin(ii)deleted text endnew text begin (B)new text end that the master
association board has not refused the delegation pursuant to subsection deleted text begin(f)deleted text endnew text begin (e)new text end(4). The
provisions of the declarations of the common interest communities, or the provisions of
recorded instruments governing other property subject to the master declaration, that
delegate powers to the master association shall be consistent with the provisions of the
master declaration that govern the delegation of the powers;

(vi) a description of the formulas governing the allocation of assessments and
member voting rights, including any special classes or deleted text beginallocationsdeleted text endnew text begin class votingnew text end referred
to in subsection deleted text begin(d)deleted text endnew text begin (c)new text end;

(vii) a statementnew text begin, based upon the master developer's good faith estimate, new text end of the total
number of units and other parcels of real estate intended for deleted text beginprivatedeleted text end ownership deleted text beginand usedeleted text endnew text begin
by persons other than a master developer, master association, declarant, or association
new text end
that are deleted text begin(i)deleted text endnew text begin (A)new text end subject to the master declaration as initially recorded and deleted text begin(ii)deleted text endnew text begin (B)new text end intended
to be created by the addition of real estate or by the subdivision of units or other parcels
of real estate; and

(viii) the requirements for amendment of the master declaration, other than an
amendment under subsection deleted text begin(g)deleted text endnew text begin (f)new text end.

(2) The declaration of a common interest community located on property subject to
a master declaration may:

(i) delegate any of the powers described in section 515B.3-102 to the
master association; provided, that a delegation of the powers described in section
515B.3-102(a)(2) is effective only if expressly stated in the declaration; and

(ii) authorize thenew text begin masternew text end board to delegate any of the powers described in section
515B.3-102, except for the powers described in section 515B.3-102(a)(2), to the master
association.

(3) With respect to any other property subject to a master association, there need
not be an instrument other than the master declaration recorded against the property to
empower the master association to exercise powers with respect to the property.

(4) If a declaration or other recorded instrument authorizes the new text begin master new text endboard or the
board of a property owners' association to delegate powers to a master association, the
master deleted text beginassociationdeleted text end board may refuse any delegation of powers that does not comply with
(i) this chapter, (ii) the declaration or other recorded instrument, or (iii) the organizational
documents of the master association.

(5) The failure of a declaration, a new text begin master new text endboard or an owner of property subject
to a master association to properly delegate some or all of the powers to the master
association does not affect the authority of the master association to exercise those and
other powers with respect to other common interest communities or owners of properties
that are subject to the master association.

new text begin (6) Any interest in the real estate subject to a master declaration that subsection
(e)(1)(ii), or (f) indicates will be owned by the master association shall be conveyed
to the master association immediately after the recording of the master declaration or
amendment to the master declaration, as applicable.
new text end

deleted text begin (g)deleted text end new text begin(f) new text endnew text beginIf new text endthe master declaration deleted text beginmay authorizedeleted text endnew text begin so provides,new text end other real estate deleted text begintodeleted text endnew text begin may
new text end be subjected to the master declaration. The other real estate shall be subjected to the
master declaration by an amendment executed new text begin (i) by the master developer and (ii) new text endby the
owner of the other real estate deleted text beginand any other person or persons required by the master
declaration, and recorded
deleted text end.new text begin The amendment shall identify any ownership interest in the
other real estate that will be owned by the master association.
new text end

deleted text begin (h)deleted text end new text begin(g) new text endSections 515B.3-103(a), (b), and (g), 515B.3-108, 515B.3-109, 515B.3-110,
and 515B.3-112 shall apply in the conduct of the affairs of a master association. But the
rights of voting, notice, and other rights enumerated in those sections apply to persons
who elect or appoint the new text begin directors of a master new text endboard deleted text beginof a master associationdeleted text end, whether or not
those persons are otherwise unit owners within the meaning of this chapter.

deleted text begin (i)deleted text end new text begin(h) new text endIf so provided in the master declaration, a master association may levy
assessments for common expenses of the master association againstnew text begin its members andnew text end the
property subject to the master declaration, and have and foreclose liens securing the
assessments. The new text begin assessment new text endliens shall have the same priority against secured parties,
shall include the same fees and charges, and may be foreclosed in the same manner,
as assessment liens under section 515B.3-116. The master association's lien shall have
priority as against the lien of an association or property owners' association subject to the
master association, regardless of when the lien arose or was perfected.

(1) Master association common expenses shall be allocated among the members of
the master association in a fair and equitable manner. If the members include associations
or property owners' associations, then the master assessments may be allocated among
and levied against the associations or property owners' associations, or allocated among
and levied against the units or other parcels of real estate owned by the members of the
association or property owners' association. If so provided in the master declaration,
master assessments levied against a member association or property owners' association
are allocated among and levied against the units or other parcels of real estate owned
by the members of the association or property owners' association. If applicable and
appropriate, the formulas and principles described in section 515B.2-108, subsections (b),
(c), (d), and (e), shall be used in making the allocations. The assessment formulas and
procedures described in the declarations of any common interest communities or any
instruments governing other real estate subject to the master association shall not conflict
with the formulas and procedures described in the master declaration.

(2) new text begin Subject to subsection (i), new text endthe master declaration may exempt from liability for
all or a portion of master association assessments any person authorized by subsection
(c)deleted text begin(3)deleted text endnew text begin(1)new text end to appoint the members of the master deleted text beginassociationdeleted text end board, or any other person, and
exempt any unit or other parcel of real estate owned by the person from a lien for such
assessments, until deleted text beginadeleted text endnew text begin thenew text end building deleted text beginconstitutingdeleted text endnew text begin containing the unit,new text end or located within thenew text begin
boundaries of the
new text end unit or other parcel of real estatenew text begin, new text end is substantially completed. Substantial
completion shall be evidenced by a certificate of occupancy in a jurisdiction that issues
that certificate.

deleted text begin (j)deleted text end new text begin(i) new text endA master association shall not be used, directly or indirectly, to avoid or
nullify any warranties or other obligations for which a declarant of a common interest
community subject to the master association is responsible, or to otherwise avoid the
requirements of this chapter.

Sec. 15.

Minnesota Statutes 2008, section 515B.2-124, is amended to read:


515B.2-124 SEVERANCE OF COMMON INTEREST COMMUNITY.

(a) Unless the declaration provides otherwise, a part of a common interest
community containing one or more units, with or without common elements, may be
severed from the common interest community, subject to the requirements of this section.
Subject to any additional requirements contained in the declaration, the severance shall be
approved in a written severance agreement complying with this section, executed by:

(1) unit owners entitled to cast at least 67 percent of the votes in the association,
which approval shall include the approval of unit owners entitled to cast a majority of the
votes allocated to units in the remaining common interest community and the approval
of unit owners entitled to cast a majority of the votes allocated to units in the part of the
common interest community being severed;

(2) declarant until the earlier of five years after the recording of the declaration or
the time at which declarant no longer owns an unsold unit; and

(3) in the case of a cooperative, all holders of mortgages or contracts for deed on the
entire real estate constituting the cooperative.

(b) The declaration may specify a smaller percentage for unit owner approval only if
all of the units are restricted to nonresidential use.

(c) The severance agreement shall specify a severance date by which the severance
of the common interest community shall be accomplished, after which the severance
agreement is void. The severance agreement shall be deemed to grant to the association a
power of attorney coupled with an interest to effect the severance of the common interest
community on behalf of the unit owners and the holders of all other interests in the units,
including without deleted text beginlimitdeleted text endnew text begin limitationsnew text end the power to execute the amendment to the declaration,
any instruments of conveyance, and all related instruments.

(d) The severance agreement shall:

(1) Approve an amendment to the declaration complying with this chapter, in
substantially the same form to be recorded, deleted text beginwhichdeleted text endnew text begin and an amendment to the CIC plat if
required. The declaration amendment shall
new text end, at a minimumnew text begin, new text end (i) legally deleted text begindescribesdeleted text endnew text begin describe
new text end the real estate constituting the remaining common interest community and the real estate
being severed, (ii) deleted text beginrestatesdeleted text endnew text begin restatenew text end the number of units in the remaining common interest
community, (iii) deleted text beginreallocatesdeleted text endnew text begin reallocatenew text end the interests of the unit owners in the remaining
common interest community among the remaining units in accordance with the allocation
formula set forth in the declaration, and (iv) deleted text beginrecitesdeleted text endnew text begin recitenew text end any easements to which the
severed portion of the common interest community remains subject.

(2) Approve an amendment to the articles of incorporation and bylaws of the
remaining common interest community, if necessary.

(3) Authorize the association to execute and record the amended declaration, articles
of incorporation or bylaws on behalf of the unit owners and all other persons holding an
interest in the remaining common interest community, and to take other actions necessary
to accomplish the severance of the common interest community.

(4) Allocate the assets and liabilities of the association between the association and
(i) a new association formed pursuant to subsection (g), or (ii) the owners of the units being
severed, subject to a lien against their interest in the severed real estate or their share in the
assets of the association in favor of any person that held a security interest in their unit.

(5) If the units that are being severed from the common interest community will not
be included in a new common interest community that is (i) formed simultaneously with
the severance of the common interest community, and (ii) includes all of the units and
substantially all of the common elements being severed, then the agreement shall contain
the written consent of holders of first mortgages on all units that are being severed, and
shall describe in detail the proposed disposition of all real estate to be severed and all
assets of the association allocated to the severed units, and the distribution of the proceeds
of the disposition, if anynew text begin, consistent with subsection (i)new text end.

(e) The severance agreement or a memorandum of it shall be recorded in every
county in which a part of the common interest community is located. The recording of the
severance agreement or memorandum of it shall, from the date of recording, constitute
notice to all persons subsequently acquiring an interest in the common interest community
that the common interest community is being severed, and that those persons acquire their
interests subject to the terms and conditions contained in the severance agreement and
the amendment to the declaration.

(f) The amendment to the declaration of the remaining common interest community
shall be recorded on or before the severance date or the severance agreement and the
amendment to the declaration deleted text beginisdeleted text endnew text begin arenew text end void as of the day after the severance date. The
recording of the amendment to the declaration shall complete the severance of the common
interest community and release the severed part of the common interest community from
the declaration without further action by any person.

(g) If the unit owners whose units are being severed from the common interest
community intend to form a new common interest community, then said unit owners
shall, by at least 80 percent of the votes allocated by the existing declaration to said
units, approve a new declaration, articles of incorporation and bylaws to govern the
new common interest community no later than 60 days before the effective date of the
severance. The new declaration shall be recorded simultaneously with the amendment to
the existing declaration. No later than 30 days after the date of the severance agreement,
the articles of incorporation creating the association intended to govern the new common
interest community shall be filed with the secretary of state and promptly thereafter the
unit owners whose units are being severed shall elect a board of directors to act on behalf
of the new association. The board of directors of the new association shall cooperate with
the board of directors of the existing association to complete the severance. The existing
association shall retain all authority to act on behalf of the common interest community
until the amendment to the existing declaration and the new declaration are recorded.

(h) The legal descriptions of the real estate constituting (i) the remaining common
interest community, and (ii) the severed portion of the common interest community shall,
at the time of recording of the amendment to the declaration referred to in subsection
(e), be as follows:

(1) In a planned community using a CIC plat that complies with section 515B.2-110,
subsection (d)
, the lot and block descriptions contained in the CIC plat, and any
amendments to it, with respect to (i) the remaining common interest community, and (ii)
the severed portion of the common interest community.

(2) In a condominium, or cooperative or planned community using a CIC plat that
complies with section 515B.2-110, subsection (c), (i) the CIC plat description relating
to the remaining common interest community, and (ii) the part of the underlying legal
description of the real estate in the declaration creating the common interest community,
and any amendments to it, relating to the severed part of the common interest community.

(3) The recording officer for each county in which the common interest community
is located shall index the property located in that county in its records under the legal
descriptions required by this subsection as of the date of recording of the amendment to the
declaration. In the case of registered property, the registrar of titles shall cancel the existing
certificates of title for the severed part of the common interest community and issue
certificates of title for the property using the legal descriptions required by this subsection.

(i) In a condominium or planned community, if the severed part of the common
interest community is not to be reconstituted as a new common interest community
following severance, deleted text begintitle to the common elements and, in a common interest community
in which all units have upper and lower boundaries described in the declaration
deleted text end title to
all the real estate in the severed part of the common interest communitydeleted text begin,deleted text end vests in the unit
owners of the units being severed, upon severance, deleted text beginas tenants in common in proportion
to their respective allocated interests in the declaration, and liens on the units shift
accordingly. While the tenancy in common exists, each unit owner and the unit owner's
successors in interest have an exclusive right to occupancy of the portion of the real estate
that formerly constituted the unit, and a nonexclusive easement across, over and under any
common elements contained in the severed portion of the common interest community
for enjoyment, access, utilities, communication services, and other essential services, as
applicable
deleted text endnew text begin as provided in the severance agreementnew text end.

(j) No common interest community shall be severed in such a manner as to
materially impair access, utility services, communication services, or other essential
services with respect to either the remaining common interest community or the severed
part of the common interest community.

ARTICLE 3

ORGANIZATION AND OPERATION

Section 1.

Minnesota Statutes 2008, section 515B.3-101, is amended to read:


515B.3-101 ORGANIZATION OF UNIT OWNERS' ASSOCIATION.

A common interest community shall be administered by an association. The
association shall be incorporated no later than the date the common interest community
is created. The membership of the association at all times consists exclusively of all
unit owners or, following termination of the common interest community, of all former
unit owners entitled to distributions of proceeds under section 515B.2-119 or their heirs,
successors, or assigns. The association shall be organized as a Minnesota profit or
nonprofit corporation, or may, in the case of a cooperative, be organized under chapter
308Anew text begin or 308Bnew text end. In the event of a conflict between this chapter and any other chapter under
which the association is incorporated, this chapter shall control.

Sec. 2.

Minnesota Statutes 2008, section 515B.3-102, is amended to read:


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

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

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

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

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

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

(5) make contracts and incur liabilities;

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

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

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

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

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

(11) impose new text begin interest and late new text endcharges for late payment of assessments and, after
notice and an opportunity to be heardnew text begin before the board or a committee appointed by itnew text end,
levy reasonable fines for violations of the declaration, bylaws, and rules and regulations
of the association;

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

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

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

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

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

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

(c) Notwithstanding subsection (a), powers exercised under this section must comply
with section 500.215.

Sec. 3.

Minnesota Statutes 2008, section 515B.3-103, is amended to read:


515B.3-103 BOARD OF DIRECTORS, OFFICERS AND DECLARANT
CONTROL.

(a) An association shall be governed by a board of directorsnew text begin whose appointment or
election shall occur no later than the date of creation of the common interest community
and shall be reflected in the association's records
new text end. Except as expressly prohibited by the
declaration, the articles of incorporation, bylaws, subsection (b), or other provisions
of this chapter, the board may act in all instances on behalf of the association. In the
performance of their duties, the officers and directors are required to exercise (i) if
appointed by the declarant, the care required of fiduciaries of the unit owners and (ii) if
elected by the unit owners, the care required of a director by section 302A.251new text begin, 308B.455,new text end
or 317A.251, as applicable.new text begin The officers and directors appointed by the declarant shall
have a duty to fulfill, and to cause the association to fulfill, their respective obligations
under the declaration, bylaws, articles of incorporation, and this chapter and to enforce the
provisions of the declaration, bylaws, articles of incorporation, and this chapter against
all unit owners, including the declarant and its affiliates, in a uniform and fair manner.
The standards of conduct for officers and directors set forth in this subsection shall also
apply to the officers and directors of master associations in the exercise of their duties on
behalf of the master association.
new text end

(b) The board may not act unilaterally to amend the declaration, to terminate
the common interest community, to elect directors to the board, or to determine the
qualifications, powers and duties, or terms of office of directors, but the board may fill
vacancies in its membership created other than by removal by the vote of the association
members for the unexpired portion of any term.

(c) The declaration may provide for a period of declarant control of the association,
during which a declarant, or persons designated by the declarant, may appoint and remove
the officers and directors of the association. The period of declarant control begins on
the date of creation of the common interest community and terminates upon the earliest
of the following events: (i) five years after the date of the first conveyance of a unit to a
unit owner other than a declarant in the case of a flexible common interest community
or three years in the case of any other common interest community, (ii) the declarant's
voluntary surrender of control by giving written notice to the unit owners pursuant to
section 515B.1-115, or (iii) the conveyance of 75 percent of the units to unit owners
other than a declarant.

(d) The board shall cause a meeting of the unit owners to be called, as follows:

(1) If the period of declarant control has terminated pursuant to subsection (c), a
meeting of the unit owners shall be called and held within 60 days after said termination,
at which the board shall benew text begin appointed ornew text end elected by all unit owners, including declarant,
subject to the requirements of subsection (e).

(2) If 50 percent of the units that a declarant is authorized by the declaration to create
have been conveyed prior to the termination of the declarant control period, a meeting
of the unit owners shall be called and held within 60 days thereafter, at which not less
than 33-1/3 percent of the members of the board shall be elected by unit owners other than
a declarant or an affiliate of a declarant.

new text begin (3) If the board fails or refuses to cause a meeting of the unit owners required to
be called pursuant to subsection (d), then the unit owners other than a declarant and its
affiliates may cause the meeting to be called pursuant to the applicable provisions of the
law under which the association was created. The declarant and its affiliates shall be
deemed to be present at the meeting for purposes of establishing a quorum regardless of
their failure to attend the meeting.
new text end

(e) Following the termination of any period of declarant control, the unit owners
shallnew text begin appoint ornew text end elect the board. All unit owners, including the declarant and its affiliates,
may cast the votes allocated to any units owned by them. The board shall thereafter
be subject to the following deleted text beginrequirementsdeleted text end:

(1) new text begin Unless otherwise approved by a vote of unit owners other than the declarant or
an affiliate of the declarant,
new text enda majority of the directors shall be unit ownersnew text begin or a natural
person designated by a unit owner that is not a natural person,
new text end other than a declarant or
an affiliate of a declarantdeleted text begin, or a natural person designated by a unit owner that is not a
natural person
deleted text end. The remaining directors need not be unit owners unless required by the
articles of incorporation or bylaws.

(2) deleted text beginSubject to the requirements of subsection (1), the articles of incorporation or
bylaws may authorize (i) the appointment or election of one director, who need not be a
unit owner, by a declarant or by a person or persons other than a unit owner, (ii) classes
of directors, and (iii) the election of certain directors by unit owners of a certain class or
classes of units. The articles of incorporation or bylaws shall not be amended to change or
terminate the authorization described in (i) without the written consent of the declarant
or other person possessing the power to appoint or elect.
deleted text endnew text begin Subject to the requirements of
subsection (e)(1), the articles of incorporation or bylaws may authorize the declarant or a
person designated by the declarant to appoint one director, who need not be a member.
The articles of incorporation or bylaws shall not be amended to change or terminate the
authorization to appoint one director without the written consent of the declarant or other
person possessing the power to appoint.
new text end

(3) deleted text beginSubject to the requirements of subsection (1), if separate classes of directors are
authorized under subsection (2), the articles of incorporation or bylaws may authorize class
voting by classes of directors on specified issues affecting only a certain class of units, or
to protect the legitimate interests of the class. A person shall not use special class voting
to evade any limit imposed on declarants by this chapter.
deleted text endnew text begin Subject to the requirements of
subsection (e)(1), the articles of incorporation or bylaws may authorize special classes of
directors and director voting rights, as follows: (i) classes of directors, (ii) the appointment
or election of directors in certain classes by certain classes of members, or (iii) class voting
by classes of directors on issues affecting only a certain class or classes of members, units,
or other parcels of real estate, or to otherwise protect the legitimate interest of such class
or classes. No person may utilize such special classes or class voting for the purpose of
evading any limitation imposed on declarants by this chapter.
new text end

(4) The board shall elect the officers. The directors and officers shall take office
upon election.

(f) In determining whether the period of declarant control has terminated under
subsection (c), or whether unit owners other than a declarant are entitled to elect members
of the board of directors under subsection (d), the percentage of the units conveyed shall
be calculated using as a numerator the number of units conveyed and as a denominator the
number of units subject to the declaration plus the number of units which the declarant
is authorized by the declaration to create on any additional real estate. The percentages
referred to in subsections (c) and (d) shall be calculated without reference to units that
are auxiliary to other units, such as garage units or storage units. A person shall not use a
master association or other device to evade the requirements of this section.

(g) Except as otherwise provided in this subsection, meetings of the board of
directors must be open to the unit owners. To the extent practicable, the board shall give
reasonable notice to the unit owners of the date, time, and place of a board meeting. If the
date, time, and place of meetings are provided for in the declaration, articles, or bylaws,
announced at a previous meeting of the board, posted in a location accessible to the unit
owners and designated by the board from time to time, or if an emergency requires
immediate consideration of a matter by the board, notice is not required. "Notice" has the
meaning given in section 317A.011, subdivision 14. Meetings may be closed to discuss
the following:

(1) personnel matters;

(2) pending or potential litigation, arbitration or other potentially adversarial
proceedings, between unit owners, between the board or association and unit owners, or
other matters in which any unit owner may have an adversarial interest, if the board
determines that closing the meeting is necessary to discuss strategy or to otherwise protect
the position of the board or association or the privacy of a unit owner or occupant of
a unit; or

(3) criminal activity arising within the common interest community if the board
determines that closing the meeting is necessary to protect the privacy of the victim or that
opening the meeting would jeopardize investigation of the activity.

Nothing in this subsection imposes a duty on the board to provide special facilities
for meetings. The failure to give notice as required by this subsection shall not invalidate
the board meeting or any action taken at the meeting. The minutes of any part of a meeting
that is closed under this subsection may be kept confidential at the discretion of the board.

Sec. 4.

Minnesota Statutes 2008, section 515B.3-104, is amended to read:


515B.3-104 new text begin SPECIAL DECLARANT RIGHTS; new text endTRANSFER deleted text beginOF SPECIAL
DECLARANT RIGHTS
deleted text endnew text begin, LIABILITY OF TRANSFEROR AND TRANSFEREE,
AND TERMINATION
new text end.

deleted text begin (a) A special declarant right created or reserved under this chapter may be
voluntarily transferred only by a separate instrument evidencing the transfer recorded
in every county in which any part of the common interest community is located. The
separate instrument shall be recorded against all units in the common interest community,
or in the case of a cooperative, against the real estate owned by the cooperative, or in
the case of a condominium on registered land, the instrument must be filed pursuant to
section 508.351, subdivision 3, or 508A.351, subdivision 3. The instrument may provide
for the conveyance of less than all of the special declarant rights, and is not effective
unless executed by the transferor and transferee. A deed in lieu of foreclosure, or other
conveyance arising out of a foreclosure or cancellation, shall not be deemed a voluntary
transfer within the meaning of this section.
deleted text end

deleted text begin (b) Upon the voluntary transfer of any special declarant right, the liability of a
transferor declarant is as follows:
deleted text end

deleted text begin (1) A transferor is not relieved of any obligation or liability arising before the
transfer and remains liable for warranty obligations imposed on the transferor by this
chapter. Lack of privity does not deprive any unit owner of standing to maintain an action
to enforce any obligation of the transferor.
deleted text end

deleted text begin (2) If a successor to any special declarant right is an affiliate of a declarant, the
transferor is jointly and severally liable with the successor for any obligations or liabilities
of the successor relating to the common interest community.
deleted text end

deleted text begin (3) If a transferor retains any special declarant rights, but transfers other special
declarant rights to a successor who is not an affiliate of the declarant, the transferor is
liable for any obligations or liabilities imposed on a declarant by this chapter or by the
declaration relating to the retained special declarant rights and arising before or after
the transfer.
deleted text end

deleted text begin (4) A transferor has no liability for any act or omission or any breach of a contractual
or warranty obligation arising from the exercise of a special declarant right by a successor
declarant who is not an affiliate of the transferor.
deleted text end

deleted text begin (c) Upon the voluntary transfer of any special declarant right, the liability of a
successor declarant is as follows:
deleted text end

deleted text begin (1) A successor to any special declarant right who is an affiliate of a declarant is
subject to all obligations and liabilities imposed on the transferor by this chapter or by
the declaration.
deleted text end

deleted text begin (2) A successor to any special declarant right who is not an affiliate of a declarant
is subject to all obligations and liabilities imposed by this chapter or the declaration,
except: (i) misrepresentations by any previous declarant; (ii) warranty obligations on
improvements made by any previous declarant, or made before the common interest
community was created; (iii) breach of any fiduciary obligation by any previous declarant
or the declarant's appointees to the board; (iv) any liability or obligation imposed on the
transferor as a result of the transferor's acts or omissions after the transfer; and (v) any
liability arising out of a special declarant right which was not transferred as provided in
subsection (a).
deleted text end

deleted text begin (d) In case of foreclosure of a mortgage or cancellation of a contract for deed or
other security interest (or conveyance in lieu thereof), sale by a trustee under an agreement
creating a security interest, tax sale, judicial sale, or sale under bankruptcy code or
receivership proceedings, of any units or additional real estate, or interest therein, owned
by a declarant, a person acquiring title to the property or interests succeeds to all special
declarant rights related to the property or interests held by that declarant and acquired by it
unless (i) the mortgage instrument or other instrument creating the security interest, (ii) the
instrument conveying title or (iii) a separate instrument signed by the person and recorded
within 60 days after the person acquires title to the property or interests, provides for
transfer of less than all special declarant rights. The separate instrument need be recorded
only against the title to the units or interests other than those being acquired under this
subsection, or in the case of a cooperative, against the real estate owned by the cooperative.
The declarant shall cease to have or exercise any special declarant rights which are
transferred. If the person has limited the transfer of certain special declarant rights as
provided in this subsection, then it and its successor's liability shall be limited, as follows:
deleted text end

deleted text begin (1) If the person or its successor limits its rights and liabilities only to maintain
models, sales office and signs, and if that party is not an affiliate of a declarant, it is not
subject to any liability or obligations as a declarant, except the obligation to provide a
disclosure statement and any liability arising from that obligation, and it may not exercise
any other special declarant rights.
deleted text end

deleted text begin (2) If the person or its successor is not an affiliate of a declarant, it may declare its
intention in a recorded instrument as provided in subsection (a) to acquire all special
declarant rights and hold those rights solely for transfer to another person. Thereafter, until
the special declarant rights are transferred to a person acquiring title to any unit owned by
the successor, or until a separate instrument is recorded permitting exercise of all of those
rights, that successor may not exercise any of those rights other than the right to control
the board of directors in accordance with the provisions of section 515B.3-103 for the
duration of any period of declarant control. So long as any successor may not exercise its
special declarant rights under this subsection, it is not subject to any liability or obligation
as a declarant other than liability for its acts and omissions under section 515B.3-103.
deleted text end

deleted text begin (e) Any attempted exercise by a purported successor to a special declarant right
which is not transferred as provided in this section is void, and any purported successor
attempting to exercise that right shall be liable for any damages arising out of its actions.
deleted text end

new text begin (a) Except as set forth in subsection (b) or (c), a special declarant right, as defined in
section 515B.1-103(33), does not run with title and may only be transferred pursuant to
a separate transfer instrument, titled a "Transfer of Special Declarant Rights," that both
the transferor and the transferee execute.
new text end

new text begin (1) A transfer shall be recorded in compliance with applicable law, and is not
effective (i) unless recorded and (ii) unless the transferee is the owner of record of a unit
or additional real estate at the time the transfer is recorded.
new text end

new text begin (2) A transferor may transfer fewer than all of the special declarant rights the
transferor holds provided that any special declarant rights not transferred are subject
to item (i).
new text end

new text begin (3) If as a result of a transfer there will be multiple declarants holding special
declarant rights, the transfer shall describe the allocation of each special declarant
right between or among the transferor and each transferee, including, at a minimum, a
description of the units or additional real estate to which the respective special declarant
rights apply and the name and address of the owner or owners of record of the respective
units or additional real estate at the time the transfer is recorded.
new text end

new text begin (b) If a declarant's ownership interest in a unit, or in additional real estate that may
become subject to the declaration pursuant to the exercise of a special declarant right, is
transferred to another person as a result of the foreclosure, termination, or cancellation of
a security interest, foreclosure of a judgment lien, tax judgment sale, tax forfeited land
sale, sale or transfer under bankruptcy code or receivership proceedings, or other sale or
transfer approved by a court, or is transferred by a deed in lieu of foreclosure, then all
special declarant rights that are reserved to the declarant in the declaration and that relate
to the units or additional real estate transferred are automatically transferred to the person
acquiring title from the declarant, and the transfer is effective as to all special declarant
rights, unless or until: (i) the security instrument in the case of the foreclosure, termination,
or cancellation of a security interest, (ii) the instrument effecting the involuntary transfer,
or (iii) a separate instrument executed by the transferee and recorded in compliance with
applicable law within 60 days after the date the transferee acquires title to the declarant's
ownership interest, provides for the transfer of fewer than all of the declarant's special
declarant rights. For purposes of this subsection, the transferee shall be deemed to acquire
title upon the expiration of the owner's period of redemption, or reinstatement in the case
of contract for deed. The transferor shall cease to have and shall not exercise any special
declarant right that relates to the transferor's ownership interest in the units or additional
real estate transferred, whether or not the transferee subsequently disclaims the right,
but the transferor retains all reserved special declarant rights that relate to its ownership
interest that is not transferred to the transferee.
new text end

new text begin (c) If a declarant is an individual rather than a legal entity, and the individual dies,
then all special declarant rights that are reserved to the declarant in the declaration and
that relate to the units or additional real estate owned by the declarant are automatically
transferred with the title to said units or additional real estate.
new text end

new text begin (d) A transferor's liability for the performance of obligations that this chapter
imposes upon a declarant is as follows:
new text end

new text begin (1) A transferor remains liable under this chapter for all obligations that this chapter
imposes upon a declarant and arising on or before the effective date of the transfer, except
that a transferor is not liable under section 515B.4-112 for any express warranties that
a transferee makes to a purchaser. Except as set forth in subsection (d)(2) and (3), a
transferor is not liable under this chapter for the performance of any obligations that this
chapter imposes upon a declarant and arising after the effective date of the transfer.
new text end

new text begin (2) If a transferor and a transferee are affiliates, the transferor and the transferee are
jointly and severally liable under this chapter for the performance of all the obligations that
this chapter imposes upon a declarant, whether such obligations arise before, on, or after
the effective date of the transfer. Upon a subsequent transfer, a prior transferor remains
liable to the extent its transferee remains liable under subsection (d) and is relieved of
liability to the same extent that its transferee is relieved of liability under subsection (e).
new text end

new text begin (3) If, following a transfer of special declarant rights, the transferor retains special
declarant rights, the transferor and transferee are jointly and severally liable for the
performance of all the obligations that this chapter imposes upon a declarant and that arise
after the effective date of the transfer, except that the transferor is not liable under section
515B.4-101(b) or 515B.4-102(b), and section 515B.4-109, 515B.4-110, 515B.4-111,
515B.4-112, 515B4.-113, 515B.4-117, or 515B.4-118, to any purchaser from or through
the transferee.
new text end

new text begin (e) Except as provided in subsections (g) and (h), a transferee's liability for the
performance of obligations that this chapter imposes upon a declarant is as follows:
new text end

new text begin (1) Except as set forth in subsection (e)(3), a transferee is liable under this chapter for
all obligations that this chapter imposes upon a declarant and that arise after the effective
date of the transfer. A transferee is not liable under this chapter for the performance of
any obligations that this chapter imposes upon a declarant and that arise before or on the
effective date of the transfer, except that a transferee is liable under section 515B.4-112
for any express warranties the transferee makes to a purchaser before or on the effective
date of the transfer.
new text end

new text begin (2) If a transferor and a transferee are affiliates, the transferor and the transferee are
jointly and severally liable under this chapter for the performance of all the obligations that
this chapter imposes upon a declarant, whether such obligations arise before, on, or after
the effective date of the transfer. Upon a subsequent transfer, a prior transferor remains
liable to the extent its transferee remains liable under subsection (d) and is relieved of
liability to the same extent that its transferee is relieved of liability under this subsection.
new text end

new text begin (3) If, following a transfer of special declarant rights under subsection (a) or (b),
the transferor retains special declarant rights, the transferor and transferee are jointly and
severally liable for the performance of all the obligations that this chapter imposes upon a
declarant and that arise after the effective date of the transfer, except that the transferee
is not liable under section 515B.4-101(b) or 515B.4-102(b), and section 515B.4-109,
515B.4-110, 515B.4-111, 515B.4-112, 515B.4-113, 515B.4-117, or 515B.4-118, to any
purchaser from or through the transferor.
new text end

new text begin (f) For purposes of this section, a declarant's obligations under section 515B.3-111(a)
arise when the tort or contract violation occurs; a declarant's obligations to a purchaser
under section 515B.4-112 arise when the declarant makes an express warranty to the
purchaser; and a declarant's obligations to a purchaser under sections 515B.4-113 and
515B.4-118(a), arise when the declarant conveys a unit to the purchaser.
new text end

new text begin (g) A transferee who acquires special declarant rights pursuant to subsection (b) and
who is not an affiliate of the transferor may record an instrument in compliance with
subsection (b) stating that the transferee elects to acquire only the special declarant rights
described in section 515B.1-103(33)(i), (ii), and (iv). In that case, the transferee is liable
as a declarant only to purchasers from said transferee and only for the obligations of a
declarant under sections 515B.4-101(b) and 515B.4-102(b), and sections 515B.4-109,
515B.4-110, 515B.4-111, 515B.4-113, 515B.4-117, and 515B.4-118, and for any express
warranties under section 515B.4-112 that the transferee makes to purchasers.
new text end

new text begin (h) A transferee who acquires special declarant rights pursuant to subsection (b) and
who is not an affiliate of the transferor may record an instrument in compliance with
subsection (b) stating that the transferee elects to acquire the special declarant rights
solely for subsequent re-transfer to another person who acquires title to units or additional
real estate from said transferee. In that case, (i) the transferee may not utilize special
declarant rights in the sale of units or otherwise sell units, except to a person who also
acquires one or more special declarant rights the transferee holds with respect to the units
or additional real estate sold; (ii) the transferee may not exercise any special declarant
rights other than the rights described in section 515B.1-103(33)(v); (iii) the transferee is
not liable to make up any operating deficit under section 515B.3-115(a)(2); and (iv) the
transferee is liable as a declarant only for the obligations of a declarant under sections
515B.3-103, 515B.3-111, and 515B.3-120, as applicable. A transferee who makes the
election described in this subsection may subsequently rescind the election in whole
or in part by recording an instrument in compliance with applicable law, and upon the
recording of such an instrument the transferee's rights and obligations as a declarant shall
be as otherwise set forth in this section.
new text end

new text begin (i) A special declarant right held by a declarant terminates upon the earlier of: (i) that
declarant's voluntary surrender of the special declarant right by giving written notice to the
unit owners pursuant to section 515B.1-115; or (ii) the conveyance, whether voluntary
or involuntary, by that declarant, of all of the units and additional real estate owned by
that declarant, unless immediately after the conveyance the special declarant right is
transferred to the grantee. All special declarant rights terminate ten years after the date of
the first conveyance of a unit to a person other than a declarant unless extended by the
vote or written agreement of unit owners entitled to cast at least 67 percent of the votes
allocated to units not owned by a declarant.
new text end

deleted text begin (f)deleted text end new text begin(j) No person shall exercise special declarant rights unless, at the time of exercise,
the person holds title of record to one or more units or additional real estate. Any exercise
of a special declarant right in violation of this section shall be void, and the person
attempting to exercise the right shall be liable for all damages and costs arising from its
actions.
new text endNothing in this section shall subject any deleted text beginsuccessor todeleted text endnew text begin transferee ofnew text end a special
declarant right to any claims against or other obligations of a transferor deleted text begindeclarantdeleted text end, other
than claims and obligations arising under this chapter, or the declaration or bylaws.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective August 1, 2010,
and apply only to transfers of special declarant rights that are effective on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2008, section 515B.3-105, is amended to read:


515B.3-105 TERMINATION OF CONTRACTS, LEASESnew text begin, LICENSESnew text end.

(a) If entered into prior to termination of the period of declarant control, (i) any
management deleted text begincontractdeleted text end, employment deleted text begincontractdeleted text end,new text begin maintenance, or operations contract new text end ornew text begin any
new text end leasenew text begin or licensenew text end of recreational deleted text beginfacilities, or garages or otherdeleted text endnew text begin,new text end parkingnew text begin, or storage new text end facilitiesnew text begin,
that is binding on the association;
new text enddeleted text begin,deleted text end (ii) any new text begin other new text endcontract, lease, or license deleted text beginbindingdeleted text endnew text begin entered
into by
new text end the association, deleted text beginand to whichdeleted text end a declarant or an affiliate of a declarant deleted text beginis a party,deleted text end new text beginthat
is binding on the association;
new text endor (iii) any contract, leasenew text begin,new text end or license new text begin that is new text endbinding new text begin on new text endthe
association or deleted text beginanydeleted text endnew text begin allnew text end unit deleted text beginownerdeleted text endnew text begin ownersnew text end other than deleted text beginthedeleted text endnew text begin anew text end declarant or an affiliate of deleted text beginthedeleted text endnew text begin a
new text end declarant which is not bona fide or which was unconscionable to thenew text begin association or thenew text end unit
owners at the time entered into under the circumstances then prevailing, may be terminated
without penalty by the association under the procedures described in this section.

(b) deleted text beginIf prior to expiration of the suspension period describeddeleted text end new text begin If entered into prior to
the termination of the period of master developer control described
new text endin section 515B.2-121,
subsection (c)
, paragraph deleted text begin(3)deleted text endnew text begin (1)new text end, a contract, lease, or license of a type described in
subsection (a) is entered into by deleted text begina person having authority to appoint the directors of
the master association
deleted text endnew text begin the master developernew text end and is binding upon the master association,
then the master associationdeleted text begin, and not any association,deleted text end may terminate the contract, lease,
or license under the procedures described in this section.

(c) Termination shall be upon no less than 90 days' notice. Notice of termination
shall be given by the association or master association, as applicable, in accordance with
section 515B.1-115; provided, that notice shall be effective only if given within two
years following the termination of the period of declarant control or the deleted text beginsuspension
period described in section 515B.2-121, subsection (c), paragraph (3)
deleted text endnew text begin period of master
developer control
new text end, as applicable.

(d) This section does not apply tonew text begin the following, provided that the rights and
obligations created by the referenced instruments are (i) bona fide and not unconscionable
as contemplated by subsection (a)(iii); and (ii) disclosed to the purchaser of the unit in
the disclosure statement required by section 515B.4-102
new text end:

deleted text begin (1) anydeleted text endnew text begin (i) anew text end lease the termination of which would terminate the common interest
community;

deleted text begin (2)deleted text end new text begin(ii) new text endin the case of a cooperative, a mortgage or contract for deed encumbering
real estate owned by the association, except that if the mortgage or contract for deed
contains a contractual obligation involving a type of contract, lease, or license which may
be terminated pursuant to subsection (a) or (b), then that contractual obligation may be
terminated pursuant to subsection (c); deleted text beginor
deleted text end

deleted text begin (3)deleted text end new text begin(iii) new text endan agreement between a declarant deleted text beginordeleted text endnew text begin, new text end an affiliate of a declarant, or a deleted text beginperson
having authority pursuant to section 515B.2-121(c)(3) to appoint the directors of the
master association
deleted text endnew text begin master developernew text end, and any governmental entity, if such agreement
is necessary to obtain governmental approvals, provide financing under any type of
government program, or provide for governmentally required access, conservation,
drainage, deleted text beginordeleted text end utilitiesnew text begin or other public purpose; or
new text end

new text begin (iv) subject to the requirements of section 515B.4-110(a), a lease, easement,
covenant, condition, or restriction that (i) is recorded before the recording of the
declaration, and (ii) runs in favor of a person other than a declarant or an affiliate of a
declarant
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective August 1, 2010,
and apply only to common interest communities created on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2008, section 515B.3-106, is amended to read:


515B.3-106 BYLAWS; ANNUAL REPORT.

(a) A common interest community shall have bylaws which comply with this
chapter and the statute under which the association is incorporated. The bylaws and
any amendments may be recorded, but need not be recorded to be effective unless so
provided in the bylaws.

(b) The bylaws shall provide that, in addition to any statutory requirements:

(1) A meeting of the members shall be held at least once each year, and a specified
officer of the association shall give notice of the meeting as provided in section
515B.3-108.

(2) An annual report shall be prepared by the association and a copy of the report
shall be provided to each unit owner at or prior to the annual meeting.

(c) The annual report shall contain at a minimum:

(1) a statement of any capital expenditures in excess of two percent of the current
budget or $5,000, whichever is greater, approved by the association for the current fiscal
year or succeeding two fiscal years;

(2) a statement of the deleted text beginbalance in any reserve ordeleted text end new text begin association's total new text endreplacement deleted text beginfunddeleted text endnew text begin
reserves, the components of the common interest community for which the reserves are
set aside, and the amounts of the reserves, if any, that the board has allocated for the
replacement of each of those components
new text end;

(3) a copy of the statement of revenues and expenses for the association's last fiscal
year, and a balance sheet as of the end of said fiscal year;

(4) a statement of the status of any pending litigation or judgments to which the
association is a party;

(5) a detailed description of the insurance coverage provided by the association
including a statement as to which, if any, of the items referred to in section 515B.3-113,
subsection (b)
, are insured by the association; and

(6) a statement of the total past due assessments on all units, current as of not more
than 60 days prior to the date of the meeting.

Sec. 7.

Minnesota Statutes 2008, section 515B.3-109, is amended to read:


515B.3-109 QUORUMS.

(a) Unless the bylaws provide otherwise, a quorum is present throughout any
meeting of the association if unit owners entitled to cast in excess of 20 percent of the
votes in the association are present in person or by proxy at the beginning of the meeting.new text begin
If a master developer or declarant or their affiliates are members of a master association
or an association, as applicable, they shall be deemed to be present for purposes of
establishing a quorum at a meeting called pursuant to section 515B.2-121(c)(2) or
515B.3-103(d), as applicable, regardless of their failure to attend the meeting.
new text end

(b) Unless the bylaws provide otherwise, a quorum is present throughout any
meeting of the board if persons entitled to cast in excess of 50 percent of the votes on that
board are present in person at the beginning of the meeting.

Sec. 8.

Minnesota Statutes 2008, section 515B.3-110, is amended to read:


515B.3-110 VOTING; PROXIES.

(a) At any meeting of the association an owner or the holder of the owner's proxy
shall be entitled to cast the vote which is allocated to the unit. If there is more than one
owner of a unit, only one of the owners may cast the vote. If the owners of a unit fail to
agree and notify the association as to who shall cast the vote, the vote shall not be cast.
Any provision in the articles of incorporation, bylaws, declaration, or other document
restricting a unit owner's right to vote, or affecting quorum requirements, by reason of
nonpayment of assessments, or a purported violation of any provision of the documents
governing the common interest community, shall be void.

(b) If permitted by the articles or bylaws, votes allocated to a unit may be cast
pursuant to a proxy executed by the unit owner entitled to cast the vote for that unit. The
board may specify the form of proxy and proxy rules, consistent with law.

(c) new text begin If authorized by the statute under which the association is created, and to the
extent not limited or prohibited by the articles of incorporation, bylaws, or declaration,
new text endthe
deleted text begin entiredeleted text end vote on any deleted text beginsingledeleted text end issue deleted text begin(except the election of directors),deleted text endnew text begin or issuesnew text end may be new text begin taken
new text endby new text beginelectronic means or by new text endmailed ballots, deleted text beginsubject to (i) any prohibition or requirement
contained in the articles of incorporation, bylaws, or declaration and (ii) any requirements
of the statute under which the association is created
deleted text endnew text begin in compliance with the applicable
statute, in lieu of holding a meeting of the unit owners
new text end. Such a vote shall have the force
and effect of a vote taken at a meeting; provided, that the total votes cast are at least equal
to the votes required for a quorum. The board shall set a voting period within which the
ballotsnew text begin or other voting responsenew text end must be deleted text beginreturneddeleted text endnew text begin received by the associationnew text end, which period
shall be not less than deleted text begintendeleted text endnew text begin 15new text end nor more than deleted text begin30deleted text endnew text begin 45new text end days after the date of deleted text beginmailing or handdeleted text end
delivery of the deleted text beginballotsdeleted text endnew text begin notice of the vote and voting proceduresnew text end to the new text begin unit new text endowners. The
board of directors shall provide deleted text beginwrittendeleted text end notice of the results of the vote to the deleted text beginmembersdeleted text endnew text begin
unit owners
new text end within 30 days after the expiration of the voting period. All requirements in
this chapter, the declaration or the bylaws for a meeting of the deleted text beginmembersdeleted text endnew text begin unit ownersnew text end, or
being present in person, shall be deemed satisfied by a vote taken deleted text beginby maildeleted text end in compliance
with the requirements of this section.new text begin The voting procedures authorized by this section
shall not be used in combination with a vote taken at a meeting of the unit owners.
However, voting by electronic means and mailed ballot may be combined if each is done
in compliance with the applicable statute.
new text end

(d) The articles of incorporation or bylaws may authorize class voting by unit owners
for directors or on specified issues affecting the class. Class voting may only be used to
address operational, physical, or administrative differences within the common interest
community. A declarant shall not use class voting to evade any limit imposed on declarants
by this chapter and units shall not constitute a class because they are owned by a declarant.

(e) The declaration or bylaws may provide that votes on specified matters affecting
the common interest community be cast by lessees or secured parties rather than unit
owners; provided that (i) the provisions of subsections (a), (b), and (c) apply to those
persons as if they were unit owners; (ii) unit owners who have so delegated their votes
to other persons may not cast votes on those specified matters; (iii) lessees or secured
parties are entitled to notice of meetings, access to records, and other rights respecting
those matters as if they were unit owners, and (iv) the lessee or secured party has filed
satisfactory evidence of its interest with the secretary of the association prior to the
meeting. Unit owners must also be given notice, in the manner provided in section
515B.3-108(b), of meetings at which lessees or secured parties are entitled to vote.

(f) No votes allocated to a unit owned by the association may be cast nor counted
toward a quorum.

Sec. 9.

Minnesota Statutes 2008, section 515B.3-112, is amended to read:


515B.3-112 CONVEYANCE OF, OR CREATION OF SECURITY INTERESTS
IN, COMMON ELEMENTS.

(a) In a condominium or planned community, unless the declaration provides
otherwise, portions of the common elements may be conveyed or subjected to a security
interest by the association if persons entitled to cast at least 67 percent of the votes in the
association, including 67 percent of the votes allocated to units not owned by a declarant,
or any larger percentage the declaration specifies, approve that action in writing or at a
meeting; but all unit owners of units to which any limited common element is allocated
must agree in order to convey that limited common element or subject it to a security
interest. The declaration may specify a smaller percentage only if all of the units are
restricted to nonresidential use.

(b) In a cooperative, unless the declaration provides otherwise, part of a cooperative
may be conveyed, or all or a part subjected to a security interest, by the association if
persons entitled to cast at least 67 percent of the votes in the association, including 67
percent of the votes allocated to units in which the declarant has no interest, or any larger
percentage the declaration specifies, approves that action in writing or at a meeting. If
fewer than all of the units or limited common elements are to be conveyed or subjected
to a security interest, then all unit owners of those units, or the units to which those
limited common elements are allocated, must agree in order to convey those units or
limited common elements or subject them to a security interest. The declaration may
specify a smaller percentage only if all of the units are restricted to nonresidential use.
Any purported conveyance or other voluntary transfer of an entire cooperative is void,
unless made pursuant to section 515B.2-119.

(c) The association, on behalf of the unit owners, may contract to convey or
encumber an interest in the common elements of a common interest community pursuant
to this subsection, subject to the required approval. After the approval has been obtained,
the association shall have a power of attorney coupled with an interest to effect the
conveyance or encumbrance on behalf of all unit owners in the common interest
community, including the power to execute deeds, mortgages, or other instruments of
conveyance or security. The instrument conveying or creating the interest in the common
interest community shall be recorded and shall include as exhibits (i) an affidavit of
thenew text begin president ornew text end secretary of the association certifying that the approval required by this
section has been obtained and (ii) a schedule of the names of all unit owners and units in
the common interest community as of the date of the approval.

(d) Unless made pursuant to this section, any purported conveyance, creation of a
security interest in or other voluntary transfer of any interest in the common elements, or
of any part of a cooperative, is void. The grant of an easement, lease, or license pursuant
to section 515B.3-102(a)(9) is not subject to this section.

(e) In the case of a conveyance involving a condominium, a planned community
utilizing a CIC plat complying with section 515B.2-110(c), or a cooperative in which
the unit owners' interests are characterized as real estate, the association shall record,
simultaneously with the recording of the instrument of conveyance, an amended CIC plat
showing the real estate constituting the common interest community exclusive of the real
estate conveyed. deleted text beginIn all common interest communities, upon recording of the instrument
of conveyance, the declaration, and all rights and obligations arising therefrom, shall be
deemed released and terminated as to the real estate conveyed.
deleted text end

(f) A conveyance or encumbrance of common elements, or of a cooperative,
pursuant to this section shall not deprive any unit of its rights of support, reasonable
access or utility services.

(g) new text begin In all common interest communities, upon recording of the instrument of
conveyance, the real estate conveyed shall be released from the declaration and all rights
and obligations arising therefrom.
new text endExcept as provided in subsection (a), or unless the
declaration otherwise provides, a conveyance or encumbrance of common elements
pursuant to this section does not affect the priority or validity of preexisting encumbrances.

(h) Any proceeds of the conveyance or creation of a security interest under this
section are an asset of the association.

(i) This section shall not apply to any conveyance or encumbrance of any interest in
a proprietary lease.

Sec. 10.

Minnesota Statutes 2008, section 515B.3-113, is amended to read:


515B.3-113 INSURANCE.

(a) Commencing not later than the time of the first conveyance of a unit to a unit
owner other than a declarant, the association shall maintain, to the extent reasonably
available:

(1) subject to subsection (b), property insurance (i) on the common elements and,
in a planned community, also on property that must become common elements, (ii)
for broad form covered causes of loss, and (iii) in a total amount of not less than the
full insurable replacement cost of the insured property, less deductibles, at the time the
insurance is purchased and at each renewal date, exclusive of items normally excluded
from property policies; and

(2) commercial general liability insurance against claims and liabilities arising
in connection with the ownership, existence, use or management of the property in an
amount, if any, specified by the common interest community instruments or otherwise
deemed sufficient in the judgment of the board, insuring the board, the association, the
management agent, and their respective employees, agents and all persons acting as
agents. The declarant shall be included as an additional insured in its capacity as a unit
owner or board member. The unit owners shall be included as additional insureds but
only for claims and liabilities arising in connection with the ownership, existence, use or
management of the common elements. The insurance shall cover claims of one or more
insured parties against other insured parties.

(b) In the case of a common interest community that contains units, or structures
within units, sharing or having contiguous walls, siding or roofs, the insurance maintained
under subsection (a)(1) shall include those units, or structures within those units, and the
common elements. The insurance need not cover the following items within the units: (i)
ceiling or wall finishing materials, (ii) deleted text beginfloor coveringsdeleted text endnew text begin finished flooringnew text end, (iii) cabinetry, (iv)
finished millwork, (v) electrical deleted text beginordeleted text endnew text begin, heating, ventilating, and air conditioning equipment,
and
new text end plumbing fixtures serving a single unit, (vi) built-in appliances, or (vii) other
improvements and betterments, regardless of when installed. If any improvements and
betterments are covered, any increased cost may be assessed by the association against the
units affected. The association may, in the case of a claim for damage to a unit or units, (i)
pay the deductible amount as a common expense, (ii) assess the deductible amount against
new text begin one or more of new text endthe units affected in any reasonable manner, or (iii) require the unit owners
of new text beginone or more of new text endthe units affected to pay the deductible amount directly.

(c) If the insurance described in subsections (a) and (b) is not reasonably available,
the association shall promptly cause notice of that fact to be hand delivered or sent prepaid
by United States mail to all unit owners. The declaration may require the association to
carry any other insurance, and the association in any event may carry any other insurance
it considers appropriate to protect the association, the unit owners or officers, directors or
agents of the association.

(d) Insurance policies carried pursuant to subsections (a) and (b) shall provide that:

(1) each unit owner and secured party is an insured person under the policy with
respect to liability arising out of the unit owner's interest in the common elements or
membership in the association;

(2) the insurer waives its right to subrogation under the policy against any unit
owner of the condominium or members of the unit owner's household and against the
association and members of the board of directors;

(3) no act or omission by any unit owner or secured party, unless acting within the
scope of authority on behalf of the association, shall void the policy or be a condition to
recovery under the policy; and

(4) if at the time of a loss under the policy there is other insurance in the name of a
unit owner covering the same property covered by the policy, the association's policy is
primary insurance.

(e) Any loss covered by the property policy under subsection (a)(1) shall be adjusted
by and with the association. The insurance proceeds for that loss shall be payable to the
association, or to an insurance trustee designated by the association for that purpose. The
insurance trustee or the association shall hold any insurance proceeds in trust for unit
owners and secured parties as their interests may appear. The proceeds shall be disbursed
first for the repair or restoration of the damaged common elements and units. If there is a
surplus of proceeds after the common elements and units have been completely repaired
or restored or the common interest community is terminated, the board of directors may
retain the surplus for use by the association or distribute the surplus among the owners on
an equitable basis as determined by the board.

(f) Unit owners may obtain insurance for personal benefit in addition to insurance
carried by the association.

(g) An insurer that has issued an insurance policy under this section shall issue
certificates or memoranda of insurance, upon request, to any unit owner or secured
party. The insurance may not be canceled until 60 days after notice of the proposed
cancellation has been mailed to the association, each unit owner and each secured party
for an obligation to whom certificates of insurance have been issued.

(h) Any portion of the common interest community which is damaged or destroyed
as the result of a loss covered by the association's insurance shall be promptly repaired or
replaced by the association unless (i) the common interest community is terminated and the
association votes not to repair or replace all or part thereof, (ii) repair or replacement would
be illegal under any state or local health or safety statute or ordinance, or (iii) 80 percent
of the unit owners, including every unit owner and holder of a first mortgage on a unit or
assigned limited common element which will not be rebuilt, vote not to rebuild. Subject
to subsection (b), the cost of repair or replacement of the common elements in excess of
insurance proceeds and reserves shall be paid as a common expense, and the cost of repair
of a unit in excess of insurance proceeds shall be paid by the respective unit owner.

(i) If less than the entire common interest community is repaired or replaced, (i) the
insurance proceeds attributable to the damaged common elements shall be used to restore
the damaged area to a condition compatible with the remainder of the common interest
community, (ii) the insurance proceeds attributable to units and limited common elements
which are not rebuilt shall be distributed to the owners of those units, including units to
which the limited common elements were assigned, and the secured parties of those units,
as their interests may appear, and (iii) the remainder of the proceeds shall be distributed to
all the unit owners and secured parties as their interests may appear in proportion to their
common element interest in the case of a condominium or in proportion to their common
expense liability in the case of a planned community or cooperative.

(j) If the unit owners and holders of first mortgages vote not to rebuild a unit, that
unit's entire common element interest, votes in the association, and common expense
liability are automatically reallocated upon the vote as if the unit had been condemned
under section 515B.1-107deleted text begin, anddeleted text endnew text begin.new text end The association shall new text begin have the power to, and shall,
new text endpromptly prepare, execute and record an amendment to the declaration reflecting the
reallocations. Notwithstanding the provisions of this subsection, if the common interest
community is terminated, insurance proceeds not used for repair or replacement shall be
distributed in the same manner as sales proceeds pursuant to section 515B.2-119new text begin(e)new text end.

(k) The provisions of this section may be varied or waived in the case of a common
interest community in which all units are restricted to nonresidential use.

Sec. 11.

Minnesota Statutes 2008, section 515B.3-114, is amended to read:


515B.3-114new text begin REPLACEMENTnew text end RESERVESdeleted text begin; SURPLUS FUNDSdeleted text end.

(a) The deleted text beginannual budgets of thedeleted text end association shall deleted text beginprovide from year to year, on a
cumulative basis, for adequate reserve funds
deleted text endnew text begin include in its annual budgets replacement
reserves projected by the board to be adequate, together with past and future contributions
to replacement reserves
new text end to deleted text begincoverdeleted text endnew text begin fundnew text end the replacement of those deleted text beginpartsdeleted text endnew text begin componentsnew text end of the
common interest community which the association is obligated to replacedeleted text begin. These reserve
requirements
deleted text endnew text begin by reason of ordinary wear and tear or obsolescence, subject to the following:
new text end

new text begin (1) The amount annually budgeted for replacement reserves shall be adequate,
together with past and future contributions to replacement reserves, to replace the
components as determined based upon the estimated remaining useful life of each
component; provided that portions of replacement reserves need not be segregated for
the replacement of specific components.
new text end

new text begin (2) Unless otherwise required by the declaration, annual budgets need not include
reserves for the replacement of (i) components that have a remaining useful life of more
than 30 years, or (ii) components whose replacement will be funded by assessments
authorized under section 515B.3-115(e)(1), or approved in compliance with clause (5).
new text end

new text begin (3) The association shall keep the replacement reserves in an account or accounts
separate from the association's operating funds, and shall not use or borrow from the
replacement reserves to fund the association's operating expenses, provided that this
restriction shall not affect the association's authority to pledge the replacement reserves
as security for a loan to the association.
new text end

new text begin (4) The association shall reevaluate the adequacy of its budgeted replacement
reserves at least every third year after the recording of the declaration creating the
common interest community.
new text end

new text begin (5) Unless otherwise required by the declaration, after the termination of the period
of declarant control, and subject to approval (i) by the board and (ii) by unit owners,
other than declarant or its affiliates, of units to which 51 percent of the votes in the
association are allocated, the association need not annually assess for replacement reserves
to replace those components whose replacement is planned to be paid for by special
assessments levied under section 515B.3-115(c), or by assessments levied under section
515B.3-115(e)(2). The approval provided for in the preceding sentence shall be effective
for no more than the association's current and three following fiscal years, subject to
modification or renewal by the same approval standards.
new text end

new text begin (6) Unless otherwise required by the declaration, subsection (a) new text end shall not apply to a
common interest community which is restricted to nonresidential use.

(b) Unless the declaration provides otherwise, any surplus funds that the association
has remaining after payment of or provision for common expenses and reserves shall be
(i) credited to the unit owners to reduce their future common expense assessments or (ii)
credited to reserves, or any combination thereof, as determined by the board of directors.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective and apply to
common interest communities for their fiscal years commencing on or after January 1,
2012.
new text end

Sec. 12.

Minnesota Statutes 2008, section 515B.3-115, is amended to read:


515B.3-115 ASSESSMENTS FOR COMMON EXPENSES.

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

(1) If a common expense assessment has not been leviednew text begin by the associationnew text end, the
declarant shall pay all deleted text beginoperatingdeleted text endnew text begin common new text end expenses of the common interest community,
deleted text begin and shall funddeleted text endnew text begin including the payment of new text end the replacement reserve component of the
common expenses deleted text beginas required bydeleted text end new text beginfor all units in compliance with new text endsubsection (b).

(2) If a common expense assessment has been leviednew text begin by the associationnew text end, all unit
ownersnew text begin,new text end including the declarantnew text begin,new text end shall pay the assessments deleted text beginallocated todeleted text endnew text begin levied against new text end their
units, deleted text beginsubject to the followingdeleted text endnew text begin except as followsnew text end:

(i) deleted text beginIfdeleted text end The declaration deleted text beginso provides, a declarant's liability, and the assessment lien, for
the common expense assessments, exclusive of replacement reserves, on any unit owned
by the declarant may be limited to 25 percent or more of any assessment, exclusive of
replacement reserves, until the unit or any building located in the unit is substantially
completed. Substantial completion shall be evidenced by a certificate of occupancy in
any jurisdiction that issues the certificate.
deleted text endnew text begin may provide for an alternate common expense
plan whereby the declarant's common expense liability, and the corresponding assessment
lien against the units owned by the declarant, is limited to: (A) paying when due, in
compliance with subsection (b), an amount equal to the full share of replacement reserves
allocated to units owned by the declarant, as set forth in the association's annual budget
approved as provided in this subsection, and (B) paying when due all accrued expenses
of the common interest community in excess of the aggregate assessments payable with
respect to units owned by persons other than a declarant; provided, that the alternate
common expense plan shall not affect a declarant's obligation to make up any operating
deficit pursuant to item (iv), and shall terminate upon the termination of any period of
declarant control unless terminated earlier pursuant to item (iii).
new text end

(ii) deleted text beginIfdeleted text end The deleted text begindeclaration provides for a reduced assessment pursuant to paragraph (2)(i),
the declarant shall be obligated, within 60 days following the termination of the period of
declarant control, to make up any operating deficit incurred by the association during the
period of declarant control. The existence and amount, if any, of the operating deficit shall
be determined using the accrual basis of accounting applied as of the date of termination
of the period of declarant control, regardless of the accounting methodology previously
used by the association to maintain its accounts.
deleted text endnew text begin alternate common expense plan may be
authorized only by including in the declaration and the disclosure statement required
by section 515B.4-102 provisions authorizing and disclosing the alternate common
expense plan as described in item (i), and including in the disclosure statement either (A)
a statement that the alternate common expense plan will have no effect on the level of
services or amenities anticipated by the association's budget contained in the disclosure
statement, or (B) a statement describing how the services or amenities may be affected.
new text end

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

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

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

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

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

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

(b) The replacement deleted text beginreserve component of the common expensesdeleted text endnew text begin reserves required
by section 515B.3-114
new text end shall be deleted text beginfundeddeleted text endnew text begin paid to the association by each unit ownernew text end for
each unit new text begin owned by that unit owner new text endin accordance with the deleted text beginprojecteddeleted text endnew text begin association'snew text end annual
budget deleted text beginrequired by section 515B.4-102(23); provided, that the funding of replacement
reserves with respect to a unit shall commence no later than the date that
deleted text end new text beginapproved
pursuant to subsection (a), regardless of whether an annual assessment has been levied or
whether the declarant has utilized an alternate common expense plan under subsection
(a)(2). Replacement reserves shall be paid with respect to a unit commencing as of the
later of (1) the date of creation of the common interest community or (2) the date that
new text endthe
deleted text begin unit ordeleted text endnew text begin structure and exterior of the building containing the unit, or the structure and
exterior of
new text end any building located within the unit boundaries deleted text beginisdeleted text endnew text begin, but excluding the interior
finishing of the structure itself, are
new text end substantially completed. deleted text beginSubstantial completion shall
be evidenced by a certificate of occupancy in any jurisdiction that issues the certificate.
deleted text endnew text begin If
the association has not approved an annual budget as of the commencement date for the
payment of replacement reserves, then the reserves shall be paid based upon the budget
contained in the disclosure statement required by section 515B.4-102.
new text end

(c) After an assessment has been levied by the association, assessments shall be
levied deleted text beginat leastdeleted text end annually, based upon deleted text beginadeleted text endnew text begin an annualnew text end budget approved deleted text beginat least annuallydeleted text end by the
association.new text begin In addition to and not in lieu of annual assessments, an association may, if
so provided in the declaration, levy special assessments against all units in the common
interest community based upon the same formula required by the declaration for levying
annual assessments. Special assessments may be levied only (1) to cover expenditures
of an emergency nature, (2) to replenish underfunded replacement reserves, (3) to
cover unbudgeted capital expenditures or operating expenses, or (4) to replace certain
components of the common interest community described in section 515B.3-114(a),
if such alternative method of funding is approved under section 515B.3-114(a)(5).
The association may also levy assessments against fewer than all units as provided in
subsections (e), (f), and (g), subject to the requirements of section 515B.3-114(a)(5), with
respect to assessments under section 515B.3-115(e)(2).
new text end

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

(e) Unless otherwise required by the declaration:

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

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

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

(4) reasonable attorneys fees and costs incurred by the association in connection
with (i) the collection of assessments and, (ii) the enforcement of this chapter, the articles,
bylaws, declaration, or rules and regulations, against a unit owner, may be assessed
against the unit owner's unit; and

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

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

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

(h) Subject to any shorter period specified by the declaration or bylaws, if any
installment of an assessment becomes more than 60 days past due, then the association
may, upon ten days' written notice to the unit owner, declare the entire amount of the
assessment immediately due and payable in full.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective August 1, 2010,
and apply only to common interest communities created on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2008, section 515B.3-116, is amended to read:


515B.3-116 LIEN FOR ASSESSMENTS.

(a) The association has a lien on a unit for any assessment levied against that unit
from the time the assessment becomes due. If an assessment is payable in installments, the
full amount of the assessment is a lien from the time the first installment thereof becomes
due. Unless the declaration otherwise provides, fees, charges, late charges, fines and
interest charges pursuant to section 515B.3-102(a)(10), (11) and (12) are liens, and are
enforceable as assessments, under this section.new text begin Recording of the declaration constitutes
record notice and perfection of any assessment lien under this section, and no further
recording of any notice of or claim for the lien is required.
new text end

(b)new text begin Subject to subsection (c),new text end a lien under this section is prior to all other liens and
encumbrances on a unit except (i) liens and encumbrances recorded before the declaration
and, in a cooperative, liens and encumbrances which the association creates, assumes, or
takes subject to, (ii) any first mortgage encumbering the fee simple interest in the unit, or,
in a cooperative, any first security interest encumbering only the unit owner's interest in
the unit, (iii) liens for real estate taxes and other governmental assessments or charges
against the unit, and (iv) a master association lien under section 515B.2-121deleted text begin(i)deleted text endnew text begin(h)new text end.new text begin This
subsection shall not affect the priority of mechanic's liens.
new text end

new text begin (c) new text end If a first mortgage on a unit is foreclosed, the first mortgage was recorded after
June 1, 1994, and no owner new text begin or person who acquires the owner's interest in the unit new text endredeems
deleted text begin during the owner's period of redemption provided bydeleted text endnew text begin pursuant to new text end chapter 580, 581, or 582,
the holder of the sheriff's certificate of sale from the foreclosure of the first mortgagenew text begin or
any person who acquires title to the unit by redemption as a junior creditor
new text end shall take title
to the unit subject to a lien in favor of the association for unpaid assessments for common
expenses levied pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and (i) which became
due, without acceleration, during the six months immediately preceding deleted text beginthe first day
following
deleted text end the end of the owner's period of redemption.new text begin The common expenses shall be
based upon the association's then current annual budget, notwithstanding the use of an
alternate common expense plan under section 515B.3-115(a)(2).
new text end If a first security interest
encumbering a unit owner's interest in a cooperative unit which is personal property is
foreclosed, the secured party or the purchaser at the sale shall take title to the unit subject
to unpaid assessments for common expenses levied pursuant to section 515B.3-115(a),
(e)(1) to (3), (f), and (i) which became due, without acceleration, during the six months
immediately preceding the first day following either the disposition date pursuant to section
336.9-610 or the date on which the obligation of the unit owner is discharged pursuant to
section 336.9-622. deleted text beginThis subsection shall not affect the priority of mechanics' liens.
deleted text end

deleted text begin (c) Recording of the declaration constitutes record notice and perfection of any lien
under this section, and no further recordation of any notice of or claim for the lien is
required.
deleted text end

(d) Proceedings to enforce an assessment lien shall be instituted within three years
after the last installment of the assessment becomes payable, or shall be barred.

(e) The unit owner of a unit at the time an assessment is due shall be personally
liable to the association for payment of the assessment levied against the unit. If there are
multiple owners of the unit, they shall be jointly and severally liable.

(f) This section does not prohibit actions to recover sums for which subsection (a)
creates a lien nor prohibit an association from taking a deed in lieu of foreclosure.

(g) The association shall furnish to a unit owner or the owner's authorized agent
upon written request of the unit owner or the authorized agent a statement setting forth
the amount of unpaid assessments currently levied against the owner's unit. If the unit
owner's interest is real estate, the statement shall be in recordable form. The statement
shall be furnished within ten business days after receipt of the request and is binding
on the association and every unit owner.

(h) The association's lien may be foreclosed as provided in this subsection.

(1) In a condominium or planned community, the association's lien may be
foreclosed in a like manner as a mortgage containing a power of sale pursuant to chapter
580, or by action pursuant to chapter 581. The association shall have a power of sale to
foreclose the lien pursuant to chapter 580.

(2) In a cooperative whose unit owners' interests are real estate, the association's
lien shall be foreclosed in a like manner as a mortgage on real estate as provided in
paragraph (1).

(3) In a cooperative whose unit owners' interests in the units are personal property,
the association's lien shall be foreclosed in a like manner as a security interest under
article 9 of chapter 336. In any disposition pursuant to section 336.9-610 or retention
pursuant to sections 336.9-620 to 336.9-622, the rights of the parties shall be the same as
those provided by law, except (i) notice of sale, disposition, or retention shall be served on
the unit owner 90 days prior to sale, disposition, or retention, (ii) the association shall be
entitled to its reasonable costs and attorney fees not exceeding the amount provided by
section 582.01, subdivision 1a, (iii) the amount of the association's lien shall be deemed to
be adequate consideration for the unit subject to disposition or retention, notwithstanding
the value of the unit, and (iv) the notice of sale, disposition, or retention shall contain the
following statement in capital letters with the name of the association or secured party
filled in:

"THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of association
or secured party) HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES,
CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST IN YOUR UNIT FOR THE
REASON SPECIFIED IN THIS NOTICE. YOUR INTEREST IN YOUR UNIT WILL
TERMINATE 90 DAYS AFTER SERVICE OF THIS NOTICE ON YOU UNLESS
BEFORE THEN:

(a) THE PERSON AUTHORIZED BY (fill in the name of association or secured
party) AND DESCRIBED IN THIS NOTICE TO RECEIVE PAYMENTS RECEIVES
FROM YOU:

(1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS

(2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS

(3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR
INCURRED; PLUS

(4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO
(fill in name of association or secured party) AFTER THE DATE OF THIS NOTICE; OR

(b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE
FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL
YOUR CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL,
HEARING, OR SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE
THOSE FACTS AND GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR
DEFENSES.

IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN
THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP RIGHTS
IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU WILL
LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL LOSE
YOUR RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR RIGHT
TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND YOU
WILL BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE,
CONTACT AN ATTORNEY IMMEDIATELY."

(4) In any foreclosure pursuant to chapter 580, 581, or 582, the rights of the parties
shall be the same as those provided by law, except (i) the period of redemption for unit
owners shall be six months from the date of sale or a lesser period authorized by law, (ii)
in a foreclosure by advertisement under chapter 580, the foreclosing party shall be entitled
to costs and disbursements of foreclosure and attorneys fees authorized by the declaration
or bylaws, notwithstanding the provisions of section 582.01, subdivisions 1 and 1a, (iii) in
a foreclosure by action under chapter 581, the foreclosing party shall be entitled to costs
and disbursements of foreclosure and attorneys fees as the court shall determine, and (iv)
the amount of the association's lien shall be deemed to be adequate consideration for the
unit subject to foreclosure, notwithstanding the value of the unit.

(i) If a holder of a sheriff's certificate of sale, prior to the expiration of the period of
redemption, pays any past due or current assessments, or any other charges lienable as
assessments, with respect to the unit described in the sheriff's certificate, then the amount
paid shall be a part of the sum required to be paid to redeem under section 582.03.

(j) In a cooperative, if the unit owner fails to redeem before the expiration of the
redemption period in a foreclosure of the association's assessment lien, the association
may bring an action for eviction against the unit owner and any persons in possession of
the unit, and in that case section 504B.291 shall not apply.

(k) An association may assign its lien rights in the same manner as any other secured
party.

Sec. 14.

Minnesota Statutes 2008, section 515B.3-117, is amended to read:


515B.3-117 OTHER LIENS.

(a) Except in a cooperative and except as otherwise provided in this chapter or in a
security instrument, an individual unit owner may have the unit owner's unit released from
a lien if the unit owner new text begin (1) new text endpays the lienholder the portion of the amount which the lien
secures that is attributable to the unitnew text begin, or (2) provides in the manner set forth in section
514.10 the deposit or other security required by that section
new text end. Upon the receipt of paymentnew text begin
or written evidence of the deposit or other security
new text end, the lienholder shall promptly deliver to
the unit owner a recordable partial satisfaction and release of lien releasing the unit from
the lien. The release shall be deemed to include a release of any rights in the common
elements appurtenant to the unit. The portion of the amount which a lien secures that is
attributable to the unit shall be equal to the total amount which the lien secures multiplied
by a percentage calculated by dividing the common expense liability attributable to the
unit by the common expense liability attributable to all units against which the lien has
been recorded, or in the case of a lien under subsection (b), the units against which the lien
is permitted or required to be recorded. At the request of a lien claimant or unit owners,
the association shall provide a written statement of the percentage of common expense
liability attributable to all units. After a unit owner's payment pursuant to this section,
the association may not assess the unit for any common expense incurred thereafter in
connection with the satisfaction or defense against the lien.

(b) Labor performed or materials furnished for the improvement of a unit shall
be the basis for the recording of a lien against that unit pursuant to the provisions of
chapter 514 but shall not be the basis for the recording of a lien against the common
elements. Labor performed or materials furnished for the improvement of common
elements, for which a lien may be recorded under chapter 514, if duly authorized by
the association, shall be deemed to be performed or furnished with the express consent
of each unit owner, and shall be perfected by recording a lien against all the units in the
common interest community, deleted text beginbut shall not be the basis for the recording of a lien against
the common elements except
deleted text endnew text begin or new text end in the case of a condominiumnew text begin or planned communitynew text end on
registered land, deleted text beginin which case a lien must be fileddeleted text endnew text begin shall be perfected by recording a liennew text end
pursuant to section 508.351, subdivision 5, or 508A.351, subdivision 5. Where a lien is
recorded against the units for labor performed or material furnished for the improvement
of common elements, the association shall be deemed to be the authorized agent of the
unit owners for purposes of receiving the notices required under sections 514.011 and
514.08, subdivision 1, clause (2).

(c) A security interest in a cooperative whose unit owners' interests in the units
are personal property shall be perfected by recording a financing statement in the UCC
filing section of the central filing system operated by the Office of the Secretary of
State. In any disposition by a secured party pursuant to section 336.9-610 or retention
pursuant to sections 336.9-620 to 336.9-622, the rights of the parties shall be the same
as those provided by law, subject to the exceptions and requirements set forth in section
515B.3-116(h)(3), and except that the unit owner has the right to reinstate the debt owing
to the secured party by paying to the secured party, prior to the effective date of the
disposition or retention, the amount which would be required to reinstate the debt under
section 580.30 if the unit were wholly real estate.

Sec. 15.

Minnesota Statutes 2008, section 515B.3-120, is amended to read:


515B.3-120 DECLARANT DUTIES; TURNOVER OF RECORDS.

(a) During any period of declarant control pursuant to section 515B.3-103(c),
declarant and any of its representatives who are acting as officers or directors of the
association shall:

(1) cause the association to be operated and administered in accordance with its
articles of incorporation and bylaws, the declaration and applicable law;

(2) be subject to all fiduciary obligations and obligations of good faith applicable to
any persons serving a corporation in that capacity;

(3) cause the association's funds to be maintained in a separate bank account or
accounts solely in the association's name, from and after the date of creation of the
association; and

(4) cause the association to maintain complete and accurate records in compliance
with section 515B.3-118.

(b) At such time as any period of declarant control terminates, declarant shall cause
to be delivered to the board elected by the unit owners exclusive control of all funds
of the association, all contracts and agreements which are binding on the association,
all corporate records of the association including financial records, copies of all CIC
plats and supplementary CIC plats, personal property owned or represented to be owned
by the association, assignments of deleted text beginall declarant's rights and interests under thedeleted text endnew text begin third
party
new text end warrantiesnew text begin relating to common element improvements or other improvements the
association is obliged to maintain, repair or replace,
new text end if not in the name of the association,
and, to the extent they are in the control or possession of the declarant, copies of all
plans and specifications deleted text beginin its control or possessiondeleted text end relating to buildings and related
improvements which are part of the common elements, and operating manuals and
warranty materials relating to any equipment or personal property utilized in the operation
of the common interest community. The declarant's obligation to turn over the foregoing
items shall continue to include additional new or changed items in its possession or
control.new text begin Declarant shall not be obligated to assign any third-party warranty to the extent
assignment is prohibited by the warranty or applicable law or otherwise prevents the
declarant from enforcing the warranty.
new text end

(c) A person entitled to appoint the directors of a master association pursuant to
section 515B.2-121(c)deleted text begin(3)deleted text endnew text begin (1)new text end, and the master association's officers and directors, shall be
subject to the same duties and obligations with respect to the master association as are
described in subsections (a) and (b), to the extent applicable. A master association may
not be used to circumvent or avoid any obligation or restriction imposed on a declarant or
its affiliates by this chapter.

Sec. 16.

Minnesota Statutes 2008, section 515B.3-121, is amended to read:


515B.3-121 ACCOUNTING CONTROLS.

(a) Subject to any additional or greater requirements set forth in the declaration or
bylaws, a review of the association's financial statements shall be made at the end of
the association's fiscal year, unless prior to 60 days after the end of that fiscal year, at a
meeting or by mailed ballot, unit ownersnew text begin, other than declarant or its affiliates, new text end of units to
which at least 30 percent of the votes in the association are allocated vote to waive the
review requirement for that fiscal year. A waiver vote shall not apply to more than one
fiscal year, and shall not affect the board's authority to cause a review or audit to be made.
The reviewed financial statements shall be delivered to all members of the association
within 180 days after the end of the association's fiscal year.

(b) The review shall be made by a licensed, independent certified public accountant.
A licensed, independent certified public accountant means an accountant who (i) is not
an employee of the declarant or its affiliates, (ii) is professionally independent of the
control of the declarant or its affiliates, (iii) is licensed by the Minnesota State Board of
Accountancy and (iv) satisfies the tests for independence as promulgated by the American
Institute of Certified Public Accountants.

(c) Where the financial statements are prepared by an independent certified public
accountant, they shall be prepared in accordance with generally accepted accounting
principles as established from time to time by the American Institute of Certified Public
Accountants, and shall be reviewed in accordance with standards for accounting and
review services. In such case, the financial statements shall be presented on the full accrual
basis using an accounting format that separates operating activity from replacement
reserve activity.

ARTICLE 4

PROTECTION OF PURCHASERS

Section 1.

Minnesota Statutes 2008, section 515B.4-101, is amended to read:


515B.4-101 APPLICABILITY; DELIVERY OF DISCLOSURE STATEMENT.

(a) Sections 515B.4-101 through 515B.4-118 apply to all units subject to this chapter,
except as provided in subsection (c) or as modified or waived by written agreement of
purchasers of a unit which is restricted to nonresidential use.

(b) Subject to subsections (a) and (c), a declarant who offers a unit to a purchaser
shall deliver to the purchaser a current disclosure statement which complies with the
requirements of section 515B.4-102. The disclosure statement shall include any material
amendments to the disclosure statement made prior to the conveyance of the unit to
the purchaser. The declarant shall be liable to the purchaser to whom it delivered the
disclosure statement for any false or misleading statement set forth therein or for any
omission of a material fact therefrom.

(c) Neither a disclosure statement nor a resale disclosure certificate need be prepared
or delivered in the case of:

(1) a gratuitous transfer;

(2) a transfer pursuant to a court order;

(3) a transfer to a government or governmental agency;

(4) a transfer to a secured party by foreclosure or deed in lieu of foreclosure;

(5) an option to purchase a unit, until exercised;

(6) a transfer to a person who "controls" or is "controlled by," the grantor as those
terms are defined with respect to a declarant under section 515B.1-103(2);

(7) a transfer by inheritance;

(8) a transfer of special declarant rights under section 515B.3-104; or

(9) a transfer in connection with a change of form of common interest community
under section 515B.2-123.

(d) A purchase agreement for a unit shall contain the following notice: "The
following notice is required by Minnesota Statutes. The purchaser is entitled to receive
a disclosure statement or resale disclosure certificate, as applicable. The disclosure
statement or resale disclosure certificate contains important information regarding the
common interest community and the purchaser's cancellation rights."

(e) deleted text beginA purchase agreement fordeleted text end The sale, to the initial occupant, of a platted lot or
other parcel of real estate (i) which is new text begin or may be new text endsubject to a master declaration, (ii) which
is intended for residential occupancy, and (iii) which does not and is not intended to
constitute a unit, shall new text begin be subject to the following requirements:
new text end

new text begin (1) The purchase agreement for the lot or other parcel shall new text endcontain the following
notice: "The following notice is required by Minnesota Statutes: The real estate to be
conveyed under this agreement is or deleted text beginwilldeleted text endnew text begin maynew text end be subject to a master association as defined
in Minnesota Statutes, chapter 515B. The master deleted text beginassociation shalldeleted text endnew text begin developer is required
to
new text end provide to the buyer, deleted text beginpursuant to Minnesota Statutes, section 515B.4-102(c), upon the
buyer's request,
deleted text endnew text begin within ten days after receipt of a request from the buyer of the buyer's
authorized representative,
new text end a statement containing the information required by Minnesota
Statutes, section 515B.4-102(a)(20)deleted text begin,deleted text end with respect to the master associationdeleted text begin, prior to the
time that the buyer signs a purchase agreement for the real estate
deleted text end. The statement contains
important information regarding the master association deleted text beginand the buyer's obligations
thereunder
deleted text end. new text beginThe name, address, and telephone number of the master developer are [insert
information].
new text end"

new text begin (2) A master developer shall, within ten days after receipt of a request described in
clause (1), furnish to the requesting person the information required to be provided by
section 515B.4-102(a)(20).
new text end

new text begin (f) new text end A claim by a buyer based upon a failure to deleted text begininclude the foregoing notice in a
purchase agreement
deleted text endnew text begin comply with subsection (e)new text end:

(1) shall be limited to legal, and not equitable, remedies;new text begin or
new text end

(2) shall be barred unless it is commenced within the time period specified in section
515B.4-115(a)deleted text begin; or
deleted text end

deleted text begin (3) may be waived by a separate written document signed by the seller and buyerdeleted text end.

Sec. 2.

Minnesota Statutes 2008, section 515B.4-102, is amended to read:


515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS.

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

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

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

(3) the new text begin total new text endnumber of units which deleted text beginthe declarant hasdeleted text endnew text begin all declarants havenew text end the right
to include in the common interest community and a statement that the common interest
community is either a condominium, cooperative, or planned community;

(4) a general description of the common interest community, including, at a
minimum, (i) the number of buildings, (ii) the number of dwellings per building, (iii)
the type of construction, (iv) whether the common interest community involves new
construction or rehabilitation, (v) whether any building was wholly or partially occupied,
for any purpose, before it was added to the common interest community and the nature
of the occupancy, deleted text beginanddeleted text end (vi) a general description of any roads, trails, or utilities that are
located on the common elements and that the association or a master association will be
required to maintainnew text begin, and (vii) a description of any declarant licensing rights under section
515B.2-109(e)
new text end;

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

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

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

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

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

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

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

(12) a statement that: (i) within ten days after the receipt of a disclosure statement, a
purchaser may cancel any contract for the purchase of a unit from a declarant; provided,
that the right to cancel terminates upon the purchaser's voluntary acceptance of a
conveyance of the unit from the declarant or by the purchaser agreeing to modify or waive
the right to cancel in the manner provided by section 515B.4-106(a); (ii) if a purchaser
receives a disclosure statement more than ten days before signing a purchase agreement,
the purchaser cannot cancel the purchase agreement; and (iii) if a declarant obligated to
deliver a disclosure statement fails to deliver a disclosure statement which substantially
complies with this chapter to a purchaser to whom a unit is conveyed, the declarant shall
be liable to the purchaser as provided in section 515B.4-106(d);

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

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

(15) a detailed description of the insurance coverage provided by the association for
the benefit of unit owners, including a statement as to which, if any, of the items referred
to in section 515B.3-113, subsection (b), are insured by the association;

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

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

(18) in a cooperative: (i) whether the unit owners will be entitled for federal and
state tax purposes, to deduct payments made by the association for real estate taxes
and interest paid to the holder of a security interest encumbering the cooperative; (ii) a
statement as to the effect on the unit owners if the association fails to pay real estate taxes
or payments due the holder of a security interest encumbering the cooperative; and (iii) the
principal amount and a general description of the terms of any blanket mortgage, contract
for deed, or other blanket security instrument encumbering the cooperative property;

(19) a statement: (i) that real estate taxes for the unit or any real property owned by
the association are not delinquent or, if there are delinquent real estate taxes, describing
the property for which the taxes are delinquent, stating the amount of the delinquent
taxes, interest and penalties, and stating the years for which taxes are delinquent, and
(ii) setting forth the amount of real estate taxes, including the amount of any special
assessment certified for payment with the real estate taxes, due and payable with respect to
the unit in the year in which the disclosure statement is given, if real estate taxes have
been separately assessed against the unit;

(20) if the deleted text beginassociation or the purchaser of the unit willdeleted text endnew text begin unit or other parcel of
real estate being purchased is or may
new text end be deleted text begina member ofdeleted text endnew text begin subject tonew text end a master deleted text beginassociationdeleted text endnew text begin
declaration at the time of the conveyance from the declarant to the purchaser
new text end, a statement
to that effect, and all of the following information with respect to the master association:
(i) deleted text begina copy ofdeleted text endnew text begin copies of the following documents (which may be in proposed form if
the master declaration has not been recorded):
new text end the master declaration, the articles of
incorporation, bylaws, and rules and regulations for the master association, together with
any amendments thereto; (ii)new text begin the name and address of the master developer, andnew text end the
name, address and general description of the master association, including a general
description of any other association, unit owners, or other persons which are or may
become members; (iii) a description of any nonresidential use permitted on any property
subject to the master deleted text beginassociationdeleted text endnew text begin declarationnew text end; (iv) a statement as to the estimated maximum
number of associations, unit owners or other persons which may become members of
the master association, and deleted text beginthe degree anddeleted text endnew text begin a description of anynew text end period of control of
the master associationnew text begin and rights to appoint master association directorsnew text end by a deleted text begindeclarantdeleted text endnew text begin
master developer
new text end or other personnew text begin pursuant to section 515B.2-121(c)new text end; (v) a description
of any facilities intended for the benefit of the members of the master association and
not located on property owned or controlled by a member or the master association;
(vi) the financial arrangements, including any contingencies, which have been made to
provide for completion of the facilities referred to in subsection (v), or a statement that no
arrangements have been made; (vii) any current balance sheet of the master association
and a projected or current annual budget, as applicable, which budget shall include with
respect to the master association those items in paragraph (23), clauses (i) through (iii),
and the projected monthlynew text begin or other periodicnew text end common expense assessmentnew text begin paymentnew text end for
each type of unit, lot, or other parcel of real estate which is or is planned to be subject to
assessment; (viii) a description of any expenses or services not reflected in the budget, paid
for or provided by a deleted text begindeclarantdeleted text endnew text begin master developernew text end or deleted text beginadeleted text endnew text begin othernew text end person executing the master
declaration, which may become an expense of the master association in the future; (ix) a
description of any powers delegated to and accepted by the master association pursuant
to section 515B.2-121deleted text begin(f)deleted text endnew text begin(e)new text end(2); (x) identification of any liens, defects or encumbrances
that will continue to affect title to property owned or operated by the master association
for the benefit of its members; (xi) the terms of any warranties provided by any person
for construction of facilities in which the members of the master association have or may
have an interest, and any known defects in the facilities which would violate the standards
described in section deleted text begin515B.4-112(b)deleted text endnew text begin 515B.4-113(b)(2)new text end; (xii) a statement disclosing, after
inquiry of the master association, any unsatisfied judgments or lawsuits to which the
master association is a party, and the status of those lawsuits which are material to the
master association; (xiii) a description of any insurance coverage provided for the benefit
of its members by the master association; and (xiv) any current or expected fees or
charges, other than assessments by the master association, to be paid by members of the
master association for the use of any facilities intended for the benefit of the members;

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

(22) deleted text begina copydeleted text endnew text begin copiesnew text end of thenew text begin following documents (which may be in proposed form if
the declaration has not been recorded): the
new text end declarationnew text begin and any supplemental declaration,
new text end and any amendments theretodeleted text begin,deleted text end (exclusive of the CIC plat)deleted text begin,deleted text endnew text begin;new text end any other recorded covenants,
conditionsnew text begin,new text end restrictions, deleted text beginanddeleted text endnew text begin ornew text end reservations affecting the common interest community; the
articles of incorporation, bylaws and any rules or regulations of the association;new text begin the names
of the current members of the association's board of directors;
new text end any agreement excluding or
modifying any implied warranties; any agreement reducing the statute of limitations for
the enforcement of warranties; any contracts or leases to be signed by purchaser at closing;
and a deleted text beginbrief narrativedeleted text end description of any deleted text begin(i) contracts or leases that are or may be subject to
cancellation by the association under section 515B.3-105 and (ii) any
deleted text end material new text begin contracts,
leases, or other
new text endagreements deleted text beginentered into between the declarant and a governmental entity
that affect
deleted text endnew text begin affectingnew text end the common interest community; and

(23) a balance sheet for the association,new text begin following the creation of the association,new text end
current within 90 daysnew text begin of the date of delivery of the disclosure statementnew text end; a projected
annual budget for the association; and a statement identifying the party responsible for the
preparation of the budget. The budget shall assume that all units intended to be included
in the common interest community, based upon the declarant's good faith estimate, have
been subjected to the declaration; provided, that additional budget portrayals based upon
a lesser number of units are permitted. The budget shall include, without limitation:
(i) a statement of the amount included in the budget as a reserve for replacementnew text begin, the
components of the common interest community for which the reserves are budgeted, and
the amounts of the reserves, if any, that are allocated for the replacement of each of those
components
new text end; (ii) a statement of any other reserves; (iii) the projected common expense
for each category of expenditures for the association; (iv) the projected monthly common
expense assessment for each type of unit; and (v) deleted text begina footnote or other reference to those
components of the common interest community the maintenance, repair, or replacement of
which the budget assumes will be funded by assessments under section 515B.3-115(e)
rather than by assessments included in the association's annual budget, and a statement
referencing section 515B.3-115(e)(1) or (2) as the source of funding
deleted text endnew text begin a statement as to the
components of the common interest community whose replacement will be funded by
assessments under section 515B.3-115(c) or (e), rather than by replacement reserves as
approved pursuant to section 515B.3-114(a)
new text end. If, based upon the association's then current
budget, the monthly common expense assessment for the unit at the time of conveyance
to the purchaser is anticipated to exceed the monthly assessment stated in the budget, a
statement to such effect shall be included.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective August 1, 2010,
and apply only to common interest communities created on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2008, section 515B.4-104, is amended to read:


515B.4-104 TIME SHARES.

If the declaration permits time shares, the disclosure statement shall contain or
disclose, in addition to the information required by sections 515B.4-102 and 515B.4-103:

(1) the unit identifiers of the units in which time shares may be created;

(2) the total number of time shares that may be created;

(3) the minimum duration of any time shares that may be created;

(4) the extent to which the creation of time shares will or may affect the
enforceability of the association's lien for assessments provided in section 515B.3-116;

(5) a statement as to whether the time share interest is a fixed time period in a
designated unit or if either the time period or unit may vary;

(6) copies of all organizational documents, contracts, leases and other documents
affecting the time share association or the time shares, or the purchaser's rights therein;

(7) any state or federal ruling or nonaction letter regarding the deleted text begintime sharesdeleted text end
classificationnew text begin of the time sharesnew text end as a security or a statement that there is no ruling or
nonaction letter;

(8) a statement as to whether the time share is registered with the state under the
Subdivided Land Sales Act or with the federal government under the Interstate Land Sales
Act and, if the time share is so registered, a copy of the public offering statement or other
disclosure document required by those acts; and

(9) if the time share owners are to be permitted or required to become members of or
to participate in a program for the exchange of occupancy rights among themselves or with
the owners of time shares in other projects or both, a general description of the program.

Sec. 4.

Minnesota Statutes 2008, section 515B.4-105, is amended to read:


515B.4-105 COMMON INTEREST COMMUNITY WITH BUILDING ONCE
OCCUPIED.

The disclosure statement deleted text beginofdeleted text endnew text begin fornew text end a common interest community containing any
building that was at any time before the creation of the common interest community
wholly or partially occupied, for any purpose, by persons other than purchasers or persons
who occupied with the consent of purchasers, shall contain, in addition to the information
required by sections 515B.4-102, 515B.4-103 and 515B.4-104:

(1) a professional opinion prepared by a registered professional architect or engineer,
licensed in this state, describing the current condition of all structural components and
mechanical deleted text beginanddeleted text endnew text begin,new text end electricalnew text begin, and plumbingnew text end installations material to the use and enjoyment of
the building, to the extent reasonably ascertainable without disturbing the improvements
or dismantling the equipment, which will be in place or be operational at the time of
conveyance of the first unit to a person other than a declarantnew text begin. Subject to such reasonable
accessibility, the opinion shall include, at a minimum, the following information
concerning the following components and installations: (i) the composition and condition
of all roofs, (ii) the type of building frame and its condition, (iii) the composition and
condition of exterior walls, (iv) whether any building foundation, or any exterior walls
or exposed load-bearing components, show significant spalling, buckling, shearing, or
other obvious settling, damage, or load distress, (v) the type, composition, and condition
of predominant window and door systems, (vi) the condition of any furnaces or boilers,
(vii) the stated capacity of common electrical service, (viii) the type and condition of any
common elevator system serving any building, and (ix) evidence of water damage within
any building and any apparent source of the damage
new text end;

(2) a statement deleted text beginby the declarantdeleted text end of the deleted text beginexpecteddeleted text endnew text begin remainingnew text end useful life of each item
reported on in paragraph (1) or a statement that no representations are made in that regardnew text begin
to some or all of the items
new text end; deleted text beginand
deleted text end

(3) a list of any outstanding notices of uncured violations of building code or other
municipal regulations, together with the estimated cost of curing those violations.

new text begin (4) the approximate age of each building and the approximate date of any major
alterations or additions thereto; and
new text end

new text begin (5) a statement as to which, if any, the components or installations reported on in
clause (1) has been replaced or will be replaced prior to the recording of the declaration
and the approximate date when the replacement occurred or will occur.
new text end

Sec. 5.

Minnesota Statutes 2008, section 515B.4-106, is amended to read:


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

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

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

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

(d) If a declarant obligated to deliver a disclosure statement fails to deliver to the
purchaser a disclosure statement which substantially complies with this chapter, the
declarant shall be liable to the purchaser in the amount of deleted text begin$1,000deleted text endnew text begin $5,000new text end, in addition to
any damages or other amounts recoverable under this chapter or otherwise. Any action
brought under this subsection shall be commenced within the time period specified in
section 515B.4-115, subsection (a).

Sec. 6.

Minnesota Statutes 2008, section 515B.4-107, is amended to read:


515B.4-107 RESALE OF UNITS.

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

(1) copies of the declaration (other than any CIC plat), the articles of incorporation
and bylaws, any rules and regulations, and any amendments or supplemental declarations;

(2) deleted text beginthe organizational and operating documents relating to the master association,
if any
deleted text endnew text begin copies of the master declaration, articles of incorporation, bylaws, and rules and
regulations, if the common interest community is subject to a master declaration
new text end; and

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

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

COMMON INTEREST COMMUNITY

RESALE DISCLOSURE CERTIFICATE

Name of Common Interest Community:
.

Name of Association:
.

Address of Association:
.

Unit Number(s) (include principal unit and any garage, storage, or other auxiliary deleted text beginunit(s)deleted text endnew text begin
units
new text end):

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

.

.

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

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

.

.

.

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

a.
Annual assessment installments:
$
.
Due:
.
b.
Special assessment installments:
$
.
Due:
.
c.
Unpaid assessments, fines, or other charges:
(1)
Annual
$
.
(2)
Special
$
.
(3)
Fines
$
.
(4)
Other Charges
$
.
d.
The association has/has not (strike one) approved a plan for levying certain
common expense assessments against fewer than all the units according to
Minnesota Statutes, section 515B.3-115, subsection (e). If a plan is approved, a
description of the plan is attached to this certificate.

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

etc.):
.

.

.

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

.

.

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

.

.

The association has deleted text begin reserved deleted text end the following amounts new text begin in its reserves new text end for deleted text begin maintenance,
repair, or
deleted text end replacement new text begin of those components new text end :
.

.

.

deleted text begin The following portions of these reserves are designated for the following specified projects
or uses: . .
deleted text end new text begin The replacement of the following components
is funded by assessments levied only against the unit or units served by the component,
pursuant to Minnesota Statutes, section 515B.3-115(e)(1) or (2).
new text end

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

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

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

.

.

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

.

.

9. Description of insurance coverages:

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

.

.

.

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

..... Ceiling or wall finishing materials

..... deleted text beginFloor coveringsdeleted text endnew text begin Finished flooring
new text end

..... Cabinetry

..... Finished millwork

..... Electricalnew text begin, heating, ventilating, and air conditioning equipment,new text end or plumbing fixtures
serving a single unit

..... Built-in appliances

..... Improvements and betterments as originally constructed

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

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

.

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

.

.

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

deleted text begin 12 deleted text end new text begin 13 new text end . In addition to the above, the following matters affecting the new text begin occupancy or use
of the
new text end unit new text begin , new text end or the unit owner's obligations with respect to the unit new text begin , new text end are deemed material deleted text begin . deleted text end new text begin : new text end
.

.

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

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

RECEIPT

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

Dated:
.
.
(Buyer)
.
(Buyer)

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

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

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

Sec. 7.

Minnesota Statutes 2008, section 515B.4-108, is amended to read:


515B.4-108 PURCHASER'S RIGHT TO CANCEL RESALE.

(a) Unless a purchaser is given the information required to be delivered by section
515B.4-107, deleted text beginby a delivery method described in that section,deleted text end more than ten days prior
to the execution of the purchase agreement for the unit the purchaser may, prior to the
conveyance, cancel the purchase agreement within ten days after receiving the information.
The ten-day rescission period may be modified or waived, in writing, by agreement of the
purchaser of a unit only after the purchaser has received and had an opportunity to review
the information required to be delivered by section 515B.4-107. The person required to
deliver the information required to be delivered by section 515B.4-107 may not condition
the sale of the unit on the purchaser agreeing to modify or waive the purchaser's ten-day
right of rescission, may not contractually obligate the purchaser to modify or waive the
purchaser's ten-day right of rescission, and may not include a modification or waiver of
the ten-day right of rescission in any purchase agreement for the unit. To be effective, a
modification or waiver of a purchaser's ten-day right of rescission must be evidenced by
an instrument separate from the purchase agreement signed by the purchaser more than
three days after the purchaser receives the resale disclosure certificate.

(b) A purchaser who elects to cancel a purchase agreement pursuant to subsection
(a), may do so by hand delivering notice thereof or mailing notice by postage prepaid
United States mail to the seller or the agent. Cancellation is without penalty and all
payments made by the purchaser shall be refunded promptly.

Sec. 8.

Minnesota Statutes 2008, section 515B.4-110, is amended to read:


515B.4-110 OBLIGATION TO RELEASE LIENS.

(a) In the case of a transfer of a unit where a disclosure statement is required, the
declarant, before conveying the unit, shall:

(1) record or furnish to the purchaser recordable releases of all liensnew text begin, the foreclosure
of which could deprive the unit owner of title to or occupancy of the unit,
new text end that the
purchaser does not agree in writing to take subject to or assume, that encumber:

(i) in a condominium, that unit and its common element interest, and

(ii) in a cooperative or planned community, that unit and any common elements; or

(2) if the purchaser agrees in writing, provide the purchaser with a surety
bond, substitute collateral or title insurance assuring against loss or damage from the
enforcement of the lien.

(b) Before conveying real estate to the association, the declarant shall have the real
estate released from: (1) all liens the foreclosure of which would deprive unit owners of
any material right of access to a unit or any material easements appurtenant to a unit, and
(2) all other liens on that real estate, unless the disclosure statement specifically states that
the declarant may convey the real estate to the association subject to liens and discloses
the maximum amount and all other relevant terms of the lien.

Sec. 9.

Minnesota Statutes 2008, section 515B.4-111, is amended to read:


515B.4-111 CONVERSION PROPERTY.

(a) A unit owner of a unit occupied for residential use in a common interest
community containing conversion property shall not, for a period of one year following
the recording of the declaration creating the common interest community, require any
occupant of the unit to vacate the unit unless the unit owner gives notice to the occupant
in the manner described in this section. The notice shall be given no later than 120 days
before the occupant is required to vacate the unit. The notice shall be sufficient as to all
occupants of a unit if it is hand delivered or mailed to the unit to be vacated, addressed
to the occupants thereof. If the holder of the lessee's interest in the unit has given the
unit owner an address different than that of the unit, then the notice shall also be given
to the holder of the lessee's interest at the designated address. The notice shall comply
with the following requirements:

(1) The notice shall set forth generally the rights conferred by this section.

(2) The notice shall have attached deleted text beginto the notice intended for the holder of the lessee's
interest
deleted text end a form of purchase agreement setting forth the new text begin proposed new text endterms of salenew text begin of the unit
to the holder of the lessee's interest as
new text end contemplated by subsection (d) and a statement
of any significant restrictionsnew text begin imposed by the declarationnew text end on the use and occupancy of
the unit deleted text beginto be imposed by the declarantdeleted text end.

(3) The notice shall state that the occupants of the residential unit may demand to be
given 60 additional days before being required to vacate, if any of them, or any person
residing with them, is (i) 62 years of age or older, (ii) a person with a disability as defined
in section 268A.01, or (iii) a minor child on the date the notice is given. This demand
must be in writing, contain reasonable proof of qualification, and be given to the declarant
within 30 days after the notice of conversion is delivered or mailed.

(4) The notice shall be contained in an envelope upon which the following shall be
boldly printed: "Notice of Conversion."

(b) Notwithstanding subsection (a), an occupant may be required to vacate a unit
upon less than 120 days' notice by reason of nonpayment of rent, utilities or other
monetary obligations, violations of law, waste, or conduct that disturbs other occupants'
peaceful enjoyment of the premises. The terms of the tenancy may not be altered during
the notice period, except that the holder of the lessee's interest or other party in possession
may vacate and terminate the tenancy upon one month's written notice to the declarant.
Nothing in this section prevents the unit owner and any occupant from agreeing to a right
of occupancy on a month-to-month basis beyond the 120-day notice period, or to an
earlier termination of the right of occupancy.

(c) No repair work or remodeling may be commenced or undertaken in the occupied
units or common areas of the building during the notice period, unless reasonable
precautions are taken to ensure the safety and security of the occupants.

(d) For 60 days after delivery or mailing of the notice described in subsection (a),
the holder of the lessee's interest in the unit on the date the notice is mailed or delivered
shall have an option to purchase that unit on the terms set forth in the purchase agreement
attached to the notice. The purchase agreement shall contain no terms or provisions which
violate any state or federal law relating to discrimination in housing. If the holder of
the lessee's interest fails tonew text begin sign a bindingnew text end purchasenew text begin agreement fornew text end the unit during that
60-day period, the unit owner may not offer to dispose of an interest in that unit during
the following 180 days at a price or on terms more favorable to the offeree than the price
or terms offered to the holder. This subsection deleted text begindoesdeleted text endnew text begin and subsection (a)(2) donew text end not apply
to any unit in a conversion deleted text beginbuildingdeleted text endnew text begin propertynew text end if that unit will be restricted exclusively to
nonresidential use or if the boundaries of the converted unit do not substantially conform
to the boundaries of the residential unit before conversion.

(e) If a unit owner, in violation of subsection (b), conveys a unit to a purchaser for
value who has no knowledge of the violation, the recording of the deed conveying the unit
or, in a cooperative, the conveyance of the right to possession of the unit, extinguishes any
right a holder of a lessee's interest who is not in possession of the unit may have under
subsection (d) to purchase that unit, but the conveyance does not affect the right of the
holder to recover damages from the unit owner for a violation of subsection (d).

(f) If a notice deleted text beginof conversiondeleted text endnew text begin described in subsection (a)new text end specifies a date by which a
unit or proposed unit must be vacated or otherwise complies with the provisions of chapter
504B, the notice also constitutes a notice to vacate specified by that statute.

new text begin (g) An occupant of space for residential use in a conversion property shall not have
any of the rights set out in this section or under any municipal ordinance if the holder of
the lessee's interest in the space received written notice of intent to convert to a common
interest community (i) before signing a lease or a lease renewal or before occupying the
space and (ii) less than two years before the common interest community is created.
new text end

new text begin (h) A notice of intent to convert to a common interest community shall identify
the conversion property by both legal description and street address and state that (i)
the declarant intends to convert the property to a planned community, condominium, or
cooperative form of common interest community, specifying the intended form, and (ii)
persons entering into leases subsequent to the receipt of the notice of intent to convert
will not have the rights available to an occupant or a person holding the lessee's interest
under this section.
new text end

deleted text begin (g)deleted text end new text begin(i) new text endNothing in this section permits a unit owner to terminate a lease in violation
of its terms.

deleted text begin (h)deleted text end new text begin(j) new text endFailure to give notice as required by deleted text beginthis sectiondeleted text endnew text begin subsection (a)new text end is a defense
to an action for possession deleted text beginuntil a notice complying with this section is given and the
applicable notice period terminates
deleted text end.

Sec. 10.

Minnesota Statutes 2008, section 515B.4-115, is amended to read:


515B.4-115 STATUTE OF LIMITATIONS FOR WARRANTIES.

(a) A judicial proceeding for breach of an obligation arising under section
515B.4-101(e) or 515B.4-106(d), shall be commenced within deleted text beginsixdeleted text endnew text begin 12new text end months after the
conveyance of the unit or other parcel of real estate.

(b) A judicial proceeding for breach of an obligation arising under section
515B.4-112 or 515B.4-113 shall be commenced within six years after the cause of action
accrues, but the parties may agree to reduce the period of limitation to not less than two
years. An agreement reducing the period of limitationnew text begin signed by one purchaser of a unit
new text end shall be binding on new text begin any copurchasers of the unit, and new text endthe deleted text beginpurchaser's successordeleted text endnew text begin purchasers'
successors and
new text end assigns. With respect to a unit that may be occupied for residential use, an
agreement to reduce the period of limitation must be evidenced by an instrument separate
from the purchase agreement signed by deleted text beginthedeleted text endnew text begin anew text end purchasernew text begin of the unitnew text end.

(c) Subject to subsection (d), a cause of action under section 515B.4-112 or
515B.4-113, regardless of the deleted text beginpurchasersdeleted text endnew text begin purchaser'snew text end lack of knowledge of the breach,
accrues:

(1) as to a unit, at the earlier of the time of conveyance ofnew text begin any interest innew text end the unit by
deleted text begin thedeleted text endnew text begin anew text end declarant to a bona fide purchaser deleted text beginof the unitdeleted text endnew text begin,new text end other than an affiliate of a declarant, or
the time deleted text beginthedeleted text endnew text begin anew text end purchaser enters into possession of the unitnew text begin. As to a unit subject to time
shares, a cause of action accrues upon the earlier of the conveyance of the unit or the
conveyance of the first time share interest in the unit to a purchaser
new text end; and

(2) as to each common element, the latest of (i) the time the common element is
completeddeleted text begin,deleted text endnew text begin;new text end (ii) the time the firstnew text begin interest in anew text end unit in the common interest community is
conveyed to a bona fide purchaser, ornew text begin, new text end if the common element is located on property that
deleted text begin isdeleted text endnew text begin wasnew text end additional real estatenew text begin, new text end at the time the firstnew text begin interest in anew text end unit deleted text beginthereindeleted text endnew text begin created thereon
new text end is conveyed to a bona fide purchaserdeleted text begin,deleted text endnew text begin;new text end or (iii) the termination of the period of declarant
control.

(d) If a warranty explicitly extends to future performance or duration of any
improvement or component of the common interest community, the cause of action
accrues at the time the breach is discovered or at the end of the period for which the
warranty explicitly extends, whichever is earlier.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective August 1, 2010,
and apply only to common interest communities created on or after that date.
new text end

Sec. 11.

Minnesota Statutes 2008, section 515B.4-116, is amended to read:


515B.4-116 RIGHTS OF ACTION; ATTORNEY'S FEES.

(a) In addition to any other rights to recover damages, attorney's fees, costs or
expenses, whether authorized by this chapter or otherwise, if a declarantnew text begin, an association, new text end or
any other person violates any provision of this chapter, or any provision of the declaration,
bylaws, or rules and regulations any person or class of persons adversely affected by the
failure to comply has a claim for appropriate relief. The association shall have standing to
pursue claims on behalf of the unit owners of two or more units.

(b) The court may award reasonable attorney's fees and costs of litigation to the
prevailing party. Punitive damages may be awarded for a willful failure to comply.

(c) The remedies provided for under this chapter are not exclusive and do not
abrogate any remedies under other statutes or the common law, notwithstanding whether
those remedies are referred to in this chapter.