HF 344

2nd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to real property; providing for the form and 
  1.3             record of certain assignments; revising the common 
  1.4             interest ownership act; changing the application of 
  1.5             the curative and validating law for mortgage 
  1.6             foreclosures; authorizing presentation of certain 
  1.7             instruments without a duplicate certificate of title; 
  1.8             amending Minnesota Statutes 1994, sections 507.411; 
  1.9             508.51; 508A.51; 515B.1-102; 515B.1-103; 515B.1-116; 
  1.10            515B.2-104; 515B.2-105; 515B.2-109; 515B.2-110; 
  1.11            515B.3-112; 515B.3-115; 582.25; and 582.27. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 507.411, is 
  1.14  amended to read: 
  1.15     507.411 [ASSIGNMENT, SATISFACTION, AND RELEASE OF 
  1.16  MORTGAGES; CORPORATE IDENTITY CHANGE.] 
  1.17     When a change in the name or identity of a corporate 
  1.18  mortgagee or assignee of the mortgagee is caused by or results 
  1.19  from a merger, consolidation, amendment to charter or articles 
  1.20  of incorporation, or conversion of articles of incorporation or 
  1.21  charter from federal to state, from state to federal, or from 
  1.22  one form of entity to another, a mortgage assignment, 
  1.23  satisfaction, or release that is otherwise recordable and that 
  1.24  specifies in the body of the instrument the merger, 
  1.25  consolidation, amendment, or conversion event causing the change 
  1.26  in name or identity is in recordable form.  The assignment, 
  1.27  satisfaction, or release is entitled to be recorded in the 
  1.28  office of the county recorder or filed with the registrar of 
  2.1   titles, without further evidence of corporate merger, 
  2.2   consolidation, amendment, or conversion.  For purposes 
  2.3   of assigning, satisfying, or releasing the mortgage, the 
  2.4   assignment, satisfaction, or release is prima facie evidence of 
  2.5   the facts stated in it with respect to the corporate merger, 
  2.6   consolidation, amendment, or conversion, and the county recorder 
  2.7   and the registrar of titles shall rely upon it to assign, 
  2.8   satisfy, or release the mortgage. 
  2.9      Sec. 2.  Minnesota Statutes 1994, section 508.51, is 
  2.10  amended to read: 
  2.11     508.51 [OWNER'S DUPLICATE PRESENTED; EXCEPTION.] 
  2.12     Subdivision 1.  [GENERAL.] Except as provided in 
  2.13  subdivision 2, no new certificate of title shall be entered or 
  2.14  issued, and no memorial shall be made upon any certificate of 
  2.15  title in pursuance of any deed or other voluntary instrument 
  2.16  made by the registered owner or the registered owner's 
  2.17  attorney-in-fact, unless the owner's duplicate is presented 
  2.18  therewith, except upon the order of the court.  When such order 
  2.19  is made, a memorial thereof shall be entered, or a new 
  2.20  certificate issued as directed thereby.  The registrar shall 
  2.21  require that the owner's duplicate be presented only when an 
  2.22  instrument is submitted for filing that is executed by the 
  2.23  registered owner or the registered owner's attorney-in-fact.  
  2.24  When any voluntary instrument made by the registered owner or 
  2.25  the registered owner's attorney-in-fact is presented for 
  2.26  registration the production of the owner's duplicate certificate 
  2.27  shall authorize the registrar to enter a new certificate or to 
  2.28  make a memorial of registration in accordance with such 
  2.29  instrument, and the new certificate or memorial shall be binding 
  2.30  upon the registered owner and upon all persons claiming under 
  2.31  the registered owner in favor of every purchaser for value and 
  2.32  in good faith.  In all cases of registration which are procured 
  2.33  by fraud, the owner may pursue all legal and equitable remedies 
  2.34  against the parties to such fraud, without prejudice to the 
  2.35  rights of any innocent holder for value of a certificate of 
  2.36  title. 
  3.1      Subd. 2.  [INSTRUMENT IN FAVOR OF GOVERNMENT AGENCY.] A 
  3.2   deed or other voluntary instrument, made by the registered owner 
  3.3   or the registered owner's attorney-in-fact, in favor of the 
  3.4   United States of America, this state, or any political 
  3.5   subdivision, agency, or instrumentality of the United States of 
  3.6   America or this state must be accepted for registration 
  3.7   regardless of whether the owner's duplicate is presented with 
  3.8   it.  The execution of a deed or other voluntary instrument by 
  3.9   the registered owner or the registered owner's attorney-in-fact 
  3.10  authorizes the registrar to enter a new certificate or to make a 
  3.11  memorial of registration in accordance with the instrument, and 
  3.12  the new certificate or memorial is binding upon the registered 
  3.13  owner and upon all persons claiming under the registered owner 
  3.14  in favor of every purchaser for value and in good faith.  In all 
  3.15  cases of registration that are procured by fraud, the owner may 
  3.16  pursue all legal and equitable remedies against the parties to 
  3.17  the fraud, without prejudice to the rights of any innocent 
  3.18  holder for value of a certificate of title.  
  3.19     Sec. 3.  Minnesota Statutes 1994, section 508A.51, is 
  3.20  amended to read: 
  3.21     508A.51 [OWNER'S DUPLICATE PRESENTED; EXCEPTION 
  3.22  EXCEPTIONS.] 
  3.23     Subdivision 1.  [GENERAL.] Except as provided in 
  3.24  subdivision 2, no new CPT shall be entered or issued, and no 
  3.25  memorial shall be made upon any CPT in pursuance of any deed or 
  3.26  other voluntary instrument made by the registered owner or the 
  3.27  registered owner's attorney-in-fact, unless the owner's 
  3.28  duplicate is presented with it, except upon the order of the 
  3.29  court.  When an order or directive is made, a memorial of it 
  3.30  shall be entered, or a new CPT issued as directed.  The 
  3.31  registrar shall require that the owner's duplicate be presented 
  3.32  only when an instrument is submitted for filing that is executed 
  3.33  by the registered owner or the registered owner's 
  3.34  attorney-in-fact.  When any voluntary instrument made by the 
  3.35  registered owner or the registered owner's attorney-in-fact is 
  3.36  presented for registration, the production of the owner's 
  4.1   duplicate CPT shall authorize the registrar to enter a new CPT 
  4.2   or to make a memorial of registration in accordance with the 
  4.3   instrument, and the new CPT or memorial shall be binding upon 
  4.4   the registered owner and upon all persons claiming under the 
  4.5   registered owner in favor of every purchaser for value and in 
  4.6   good faith.  In all cases of registration which are procured by 
  4.7   fraud, the owner may pursue all legal and equitable remedies 
  4.8   against the parties to the fraud, without prejudice to the 
  4.9   rights of any innocent holder for value of a CPT.  
  4.10     Subd. 2.  [INSTRUMENT IN FAVOR OF GOVERNMENT AGENCY.] A 
  4.11  deed or other voluntary instrument, made by the registered owner 
  4.12  or the registered owner's attorney-in-fact, in favor of the 
  4.13  United States of America, this state, or any political 
  4.14  subdivision, agency, or instrumentality of the United States of 
  4.15  America or this state, must be accepted for registration 
  4.16  regardless of whether the owner's duplicate CPT is presented 
  4.17  with it.  The execution of a deed or other voluntary instrument 
  4.18  by the registered owner or the registered owner's 
  4.19  attorney-in-fact authorizes the registrar to enter a new CPT or 
  4.20  to make a memorial of registration in accordance with the 
  4.21  instrument, and the new CPT or memorial is binding upon the 
  4.22  registered owner and upon all persons claiming under the 
  4.23  registered owner in favor of every purchaser for value and in 
  4.24  good faith.  In all cases of registration that are procured by 
  4.25  fraud, the owner may pursue all legal and equitable remedies 
  4.26  against the parties to the fraud, without prejudice to the 
  4.27  rights of any innocent holder for value of a CPT. 
  4.28     Sec. 4.  Minnesota Statutes 1994, section 515B.1-102, is 
  4.29  amended to read: 
  4.30     515B.1-102 [APPLICABILITY.] 
  4.31     (a) Except as provided in this section, this chapter, and 
  4.32  not chapters 515 and 515A, applies to all common interest 
  4.33  communities created within this state on and after June 1, 1994. 
  4.34     (b) The applicability of this chapter to common interest 
  4.35  communities created prior to June 1, 1994, shall be as follows: 
  4.36     (1) This chapter shall apply to condominiums created under 
  5.1   chapter 515A with respect to events and circumstances occurring 
  5.2   on and after June 1, 1994; provided (i) that this chapter shall 
  5.3   not invalidate the declarations, bylaws or condominium plats of 
  5.4   those condominiums, and (ii) that chapter 515A, and not this 
  5.5   chapter, shall govern all rights and obligations of a declarant 
  5.6   of a condominium created under chapter 515A, and the rights and 
  5.7   claims of unit owners against that declarant. 
  5.8      (2) The following sections shall apply to condominiums 
  5.9   created under chapter 515:  515B.1-105 (Separate Titles and 
  5.10  Taxation); 515B.1-106 (Applicability of Local Ordinances, 
  5.11  Regulations, and Building Codes); 515B.1-107 (Eminent Domain); 
  5.12  515B.1-116 (Recording); 515B.2-103 (Construction and Validity of 
  5.13  Declaration and Bylaws); 515B.2-104 (Description of Units); 
  5.14  515B.2-118 (Amendment of Declaration); 515B.3-102 (Powers of 
  5.15  Unit Owners' Association); 515B.3-110 (Voting; Proxies); 
  5.16  515B.3-111 (Tort and Contract Liability); 515B.3-113 
  5.17  (Insurance); 515B.3-116 (Lien for Assessments); 515B.3-117 
  5.18  (Other Liens); 515B.3-118 (Association Records); 515B.3-121 
  5.19  (Accounting Controls); 515B.4-107 (Resale of Units); 515B.4-108 
  5.20  (Purchaser's Right to Cancel Resale); 515B.4-116 (Rights of 
  5.21  Action; Attorney's Fees); and 515B.1-103 (Definitions) to the 
  5.22  extent necessary in construing any of those sections.  The 
  5.23  foregoing sections shall apply only with respect to events and 
  5.24  circumstances occurring on and after June 1, 1994, and shall not 
  5.25  invalidate the declarations, bylaws or condominium plats of 
  5.26  those condominiums. 
  5.27     (3) This chapter shall not apply to cooperatives and 
  5.28  planned communities created prior to June 1, 1994; except by 
  5.29  election pursuant to subsection (d). 
  5.30     (c) This chapter shall not invalidate any amendment to the 
  5.31  declaration, bylaws or condominium plat of any condominium 
  5.32  created under chapter 515 or 515A if the amendment was recorded 
  5.33  before June 1, 1994.  Any amendment recorded on or after June 1, 
  5.34  1994, shall be adopted in conformity with the procedures and 
  5.35  requirements specified by those instruments and by this 
  5.36  chapter.  If the amendment grants to any person any rights, 
  6.1   powers or privileges permitted by this chapter, all correlative 
  6.2   obligations, liabilities and restrictions contained in this 
  6.3   chapter shall also apply to that person. 
  6.4      (d) Any condominium created under chapter 515, any planned 
  6.5   community or cooperative which would be exempt from this chapter 
  6.6   under subsection (e), or any planned community or cooperative 
  6.7   created prior to June 1, 1994, may elect to be subject to this 
  6.8   chapter, as follows: 
  6.9      (1) The election shall be accomplished by recording a 
  6.10  declaration or amended declaration, and a new or amended CIC 
  6.11  plat where required, and by approving bylaws or amended bylaws, 
  6.12  which conform to the requirements of this chapter, and which, in 
  6.13  the case of amendments, are adopted in conformity with the 
  6.14  procedures and requirements specified by the existing 
  6.15  declaration and bylaws of the common interest community, and by 
  6.16  any applicable statutes. 
  6.17     (2) An amended CIC plat shall not be required unless the 
  6.18  amended declaration or bylaws contain provisions inconsistent 
  6.19  with the existing CIC plat; provided, that the recording officer 
  6.20  shall index or cross-reference the CIC number to any existing 
  6.21  CIC plat.  In a condominium, the preexisting condominium plat 
  6.22  shall be the CIC plat and an amended CIC plat shall be required 
  6.23  only if the amended declaration or bylaws contain provisions 
  6.24  inconsistent with the preexisting condominium plat.  The 
  6.25  condominium's CIC number shall be the apartment ownership number 
  6.26  or condominium number originally assigned to it by the recording 
  6.27  officer.  In a cooperative in which the unit owners' interests 
  6.28  are characterized as real estate, a CIC plat shall be required.  
  6.29  In a planned community, the preexisting plat recorded pursuant 
  6.30  to chapter 505, 508, or 508A, or the part of the plat upon which 
  6.31  the common interest community is located, shall be the CIC plat. 
  6.32     (3) The amendment shall conform to the requirements of 
  6.33  section 515B.2-118(d). 
  6.34     (4) Except as permitted by paragraph (3), no declarant, 
  6.35  affiliate of declarant, association, master association nor unit 
  6.36  owner may acquire, increase, waive, reduce or revoke any 
  7.1   previously existing warranty rights or causes of action that one 
  7.2   of said persons has against any other of said persons by reason 
  7.3   of exercising the right of election under this subsection. 
  7.4      (5) A common interest community which elects to be subject 
  7.5   to this chapter may, as a part of the election process, change 
  7.6   its form of ownership by complying with the requirements of 
  7.7   section 515B.2-123. 
  7.8      (e) Except as otherwise provided in this subsection, this 
  7.9   chapter shall not apply, except by election pursuant to 
  7.10  subsection (d), to the following: 
  7.11     (1) a planned community or cooperative which consists of 12 
  7.12  or fewer units subject to the same declaration, which is not 
  7.13  subject to any rights to add additional real estate and which 
  7.14  will not be subject to a master association; 
  7.15     (2) a common interest community where the units consist 
  7.16  solely of separate parcels of real estate designed or utilized 
  7.17  for detached single family dwellings or agricultural purposes, 
  7.18  and where the association has no obligation to maintain any 
  7.19  building containing a dwelling or any agricultural building; 
  7.20     (3) a planned community or cooperative where, at the time 
  7.21  of creation of the planned community or cooperative, the unit 
  7.22  owners' interests in the dwellings consist solely of leasehold 
  7.23  interests having an unexpired term of fewer than 20 years, 
  7.24  including renewal options; 
  7.25     (4) a common interest community containing only a 
  7.26  combination of dwellings described in paragraphs (2) and (3); 
  7.27     (5) planned communities and cooperatives limited by the 
  7.28  declaration to nonresidential use; or 
  7.29     (6) real estate subject only to an instrument or 
  7.30  instruments filed primarily for the purpose of creating or 
  7.31  modifying rights with respect to access, ditches, drainage or 
  7.32  irrigation. 
  7.33     (f) Section 515B.1-106 shall apply to all common interest 
  7.34  communities. 
  7.35     Sec. 5.  Minnesota Statutes 1994, section 515B.1-103, is 
  7.36  amended to read: 
  8.1      515B.1-103 [DEFINITIONS.] 
  8.2      In the declaration and bylaws, unless specifically provided 
  8.3   otherwise or the context otherwise requires, and in this chapter:
  8.4      (1) "Additional real estate" means real estate that may be 
  8.5   added to a flexible common interest community. 
  8.6      (2) "Affiliate of a declarant" means any person who 
  8.7   controls, is controlled by, or is under common control with a 
  8.8   declarant.  
  8.9      (A) A person "controls" a declarant if the person (i) is a 
  8.10  general partner, officer, director, or employer of the 
  8.11  declarant, (ii) directly or indirectly or acting in concert with 
  8.12  one or more other persons, or through one or more subsidiaries, 
  8.13  owns, controls, holds with power to vote, or holds proxies 
  8.14  representing, more than 20 percent of the voting interest in the 
  8.15  declarant, (iii) controls in any manner the election of a 
  8.16  majority of the directors of the declarant, or (iv) has 
  8.17  contributed more than 20 percent of the capital of the declarant.
  8.18     (B) A person "is controlled by" a declarant if the 
  8.19  declarant (i) is a general partner, officer, director, or 
  8.20  employer of the person, (ii) directly or indirectly or acting in 
  8.21  concert with one or more other persons, or through one or more 
  8.22  subsidiaries, owns, controls, holds with power to vote, or holds 
  8.23  proxies representing, more than 20 percent of the voting 
  8.24  interest in the person, (iii) controls in any manner the 
  8.25  election of a majority of the directors of the person, or (iv) 
  8.26  has contributed more than 20 percent of the capital of the 
  8.27  person.  
  8.28     (C) Control does not exist if the powers described in this 
  8.29  subsection are held solely as a security interest and have not 
  8.30  been exercised. 
  8.31     (3) "Allocated interests" means the following interests 
  8.32  allocated to each unit:  (i) in a condominium, the undivided 
  8.33  interest in the common elements, the common expense liability, 
  8.34  and votes in the association; (ii) in a cooperative, the common 
  8.35  expense liability and the ownership interest and votes in the 
  8.36  association; and (iii) in a planned community, the common 
  9.1   expense liability and votes in the association. 
  9.2      (4) "Association" means the unit owners' association 
  9.3   organized under section 515B.3-101. 
  9.4      (5) "Board" means the body, regardless of name, designated 
  9.5   in the articles of incorporation, bylaws or declaration to act 
  9.6   on behalf of the association, or on behalf of a master 
  9.7   association when so identified. 
  9.8      (6) "CIC plat" means a common interest community plat 
  9.9   described in section 515B.2-110. 
  9.10     (7) "Common elements" means all portions of the common 
  9.11  interest community other than the units. 
  9.12     (8) "Common expenses" means expenditures made or 
  9.13  liabilities incurred by or on behalf of the association, or 
  9.14  master association when so identified, together with any 
  9.15  allocations to reserves. 
  9.16     (9) "Common expense liability" means the liability for 
  9.17  common expenses allocated to each unit pursuant to section 
  9.18  515B.2-108. 
  9.19     (10) "Common interest community" means contiguous or 
  9.20  noncontiguous real estate within Minnesota that is subject to an 
  9.21  instrument which obligates persons owning a separately described 
  9.22  parcel of the real estate, or occupying a part of the real 
  9.23  estate pursuant to a proprietary lease, by reason of their 
  9.24  ownership or occupancy, to pay for (i) real estate taxes levied 
  9.25  against; (ii) insurance premiums payable with respect to; (iii) 
  9.26  maintenance of; or (iv) construction, maintenance, repair or 
  9.27  replacement of improvements located on one or more parcels or 
  9.28  parts of the real estate other than the parcel or part that the 
  9.29  person owns or occupies. 
  9.30     (11) "Condominium" means a common interest community in 
  9.31  which (i) portions of the real estate are designated as units, 
  9.32  (ii) the remainder of the real estate is designated for common 
  9.33  ownership solely by the owners of the units, and (iii) undivided 
  9.34  interests in the common elements are vested in the unit owners. 
  9.35     (12) "Conversion property" means real estate on which is 
  9.36  located a building that at any time within two years before 
 10.1   creation of the common interest community was occupied as a 
 10.2   residence wholly or partially by persons other than purchasers 
 10.3   and persons who occupy with the consent of purchasers. 
 10.4      (13) "Cooperative" means a common interest community in 
 10.5   which the real estate is owned by an association, each of whose 
 10.6   members is entitled by virtue of the member's ownership interest 
 10.7   in the association to a proprietary lease. 
 10.8      (14) "Dealer" means a person in the business of selling 
 10.9   units for the person's own account. 
 10.10     (15) "Declarant" means: 
 10.11     (i) if the common interest community has been created, (A) 
 10.12  any person who has executed a declaration, or an amendment to a 
 10.13  declaration to add additional real estate, except secured 
 10.14  parties, persons whose interests in the real estate will not be 
 10.15  transferred to unit owners, or, in the case of a leasehold 
 10.16  common interest community, a lessor who possesses no special 
 10.17  declarant rights and who is not an affiliate of a declarant who 
 10.18  possesses special declarant rights, or (B) any person who 
 10.19  reserves, or succeeds under section 515B.3-104 to any special 
 10.20  declarant rights; or 
 10.21     (ii) any person or persons acting in concert who have 
 10.22  offered prior to creation of the common interest community to 
 10.23  transfer their interest in a unit to be created and not 
 10.24  previously transferred. 
 10.25     (16) "Declaration" means any instrument, however 
 10.26  denominated, including any amendment to the instrument, that 
 10.27  creates a common interest community. 
 10.28     (17) "Dispose" or "disposition" means a voluntary transfer 
 10.29  to a purchaser of any legal or equitable interest in the common 
 10.30  interest community, but the term does not include the transfer 
 10.31  or release of a security interest. 
 10.32     (18) "Flexible common interest community" means a common 
 10.33  interest community to which additional real estate may be added. 
 10.34     (19) "Leasehold common interest community" means a common 
 10.35  interest community in which all or a portion of the real estate 
 10.36  is subject to a lease the expiration or termination of which 
 11.1   will terminate the common interest community or reduce its size. 
 11.2      (20) "Limited common element" means a portion of the common 
 11.3   elements allocated by the declaration or by operation of section 
 11.4   515B.2-102(d) or (f) for the exclusive use of one or more but 
 11.5   fewer than all of the units. 
 11.6      (21) "Master association" means an entity that directly or 
 11.7   indirectly exercises any of the powers set forth in section 
 11.8   515B.3-102 on behalf of one or more members described in section 
 11.9   515B.2-121(b), (i), (ii) or (iii), whether or not it also 
 11.10  exercises those powers on behalf of one or more property owners 
 11.11  associations described in section 515B.2-121(b)(iv).  An entity 
 11.12  hired by an association to perform maintenance, repair, 
 11.13  accounting, bookkeeping or management services is not, solely by 
 11.14  virtue of that relationship, a master association. 
 11.15     (22) "Period of declarant control" means the time period 
 11.16  provided for in section 515B.3-103(c) during which the declarant 
 11.17  may appoint and remove officers and directors of the association.
 11.18     (23) "Person" means an individual, corporation, limited 
 11.19  liability company, partnership, trustee under a trust, personal 
 11.20  representative, guardian, conservator, government, governmental 
 11.21  subdivision or agency, or other legal or commercial entity 
 11.22  capable of holding title to real estate. 
 11.23     (24) "Planned community" means a common interest community 
 11.24  that is not a condominium or a cooperative.  A condominium or 
 11.25  cooperative may be a part of a planned community. 
 11.26     (25) "Proprietary lease" means an agreement with a 
 11.27  cooperative association whereby a member of the association is 
 11.28  entitled to exclusive possession of a unit in the cooperative. 
 11.29     (26) "Purchaser" means a person, other than a declarant, 
 11.30  who by means of a voluntary transfer acquires a legal or 
 11.31  equitable interest in a unit other than (i) a leasehold interest 
 11.32  of less than 20 years, including renewal options, or (ii) a 
 11.33  security interest. 
 11.34     (27) "Real estate" means any fee simple, leasehold or other 
 11.35  estate or interest in, over, or under land, including 
 11.36  structures, fixtures, and other improvements and interests that 
 12.1   by custom, usage, or law pass with a conveyance of land though 
 12.2   not described in the contract of sale or instrument of 
 12.3   conveyance.  "Real estate" may include spaces with or without 
 12.4   upper or lower boundaries, or spaces without physical boundaries.
 12.5      (28) "Residential use" means use as a dwelling, whether 
 12.6   primary, secondary or seasonal, but not transient use such as 
 12.7   hotels or motels. 
 12.8      (29) "Secured party" means the person owning a security 
 12.9   interest as defined in paragraph (30). 
 12.10     (30) "Security interest" means a perfected interest in real 
 12.11  estate or personal property, created by contract or conveyance, 
 12.12  which secures payment or performance of an obligation.  The term 
 12.13  includes a mortgagee's interest in a mortgage, a vendor's 
 12.14  interest in a contract for deed, a lessor's interest in a lease 
 12.15  intended as security, a holder's interest in a sheriff's 
 12.16  certificate of sale during the period of redemption, an 
 12.17  assignee's interest in an assignment of leases or rents intended 
 12.18  as security, a lender's interest in a cooperative share loan, a 
 12.19  pledgee's interest in the pledge of an ownership interest, or 
 12.20  any other interest intended as security for an obligation under 
 12.21  a written agreement. 
 12.22     (31) "Special declarant rights" means rights reserved in 
 12.23  the declaration for the benefit of a declarant to: 
 12.24     (i) complete improvements indicated on the CIC plat; 
 12.25     (ii) add additional real estate to a common interest 
 12.26  community; 
 12.27     (iii) create units, common elements, or limited common 
 12.28  elements within a common interest community; (iv) subdivide 
 12.29  units or convert units into common elements, limited common 
 12.30  elements and/or units; 
 12.31     (v) (iv) maintain sales offices, management offices, signs 
 12.32  advertising the common interest community, and models; 
 12.33     (vi) (v) use easements through the common elements for the 
 12.34  purpose of making improvements within the common interest 
 12.35  community or any additional real estate; 
 12.36     (vii) (vi) create a master association and provide for the 
 13.1   exercise of authority by the master association over the common 
 13.2   interest community or its unit owners; 
 13.3      (viii) (vii) merge or consolidate a common interest 
 13.4   community with another common interest community of the same 
 13.5   form of ownership; or 
 13.6      (ix) (viii) appoint or remove any officer or director of 
 13.7   the association, or any the master association where applicable, 
 13.8   during any period of declarant control. 
 13.9      (32) "Time share" means a right to occupy a unit or any of 
 13.10  several units during three or more separate time periods over a 
 13.11  period of at least three years, including renewal options, 
 13.12  whether or not coupled with an estate or interest in a common 
 13.13  interest community or a specified portion thereof. 
 13.14     (33) "Unit" means a physical portion of a common interest 
 13.15  community the boundaries of which are described in the common 
 13.16  interest community's declaration and which is intended for 
 13.17  separate ownership or separate occupancy pursuant to a 
 13.18  proprietary lease. 
 13.19     (34) "Unit identifier" means English letters or Arabic 
 13.20  numerals, or a combination thereof, which identify only one unit 
 13.21  in a common interest community and which meet the requirements 
 13.22  of section 515B.2-104. 
 13.23     (35) "Unit owner" means a declarant or other person who 
 13.24  owns a unit, or a lessee of a unit in a leasehold common 
 13.25  interest community whose lease expires simultaneously with any 
 13.26  lease the expiration or termination of which will remove the 
 13.27  unit from the common interest community, but does not include a 
 13.28  secured party.  In a common interest community, the declarant is 
 13.29  the unit owner of a unit until that unit has been conveyed to 
 13.30  another person. 
 13.31     Sec. 6.  Minnesota Statutes 1994, section 515B.1-116, is 
 13.32  amended to read: 
 13.33     515B.1-116 [RECORDING.] 
 13.34     (a) A declaration, bylaws, any amendment to a declaration 
 13.35  or bylaws, and any other instrument affecting a common interest 
 13.36  community shall be entitled to be recorded.  In those counties 
 14.1   which have a tract index, the county recorder shall enter the 
 14.2   declaration in the tract index for each unit affected.  The 
 14.3   registrar of titles shall file the declaration on the 
 14.4   certificate of title for each unit affected. 
 14.5      (b) The recording officer shall upon request promptly 
 14.6   assign a number (CIC number) to a common interest community to 
 14.7   be formed or to a common interest community resulting from the 
 14.8   merger of two or more common interest communities. 
 14.9      (c) Documents recorded pursuant to this chapter shall in 
 14.10  the case of registered land be filed, and references to the 
 14.11  recording of documents shall mean filed in the case of 
 14.12  registered land. 
 14.13     (d) Subject to any specific requirements of this chapter, 
 14.14  if any document to be recorded pursuant to this chapter requires 
 14.15  approval by a certain vote or agreement of the unit owners or 
 14.16  secured parties, an affidavit of the secretary of the 
 14.17  association stating that the required vote or agreement has 
 14.18  occurred shall be attached to the document and shall constitute 
 14.19  prima facie evidence of the representations contained therein. 
 14.20     (e) If a common interest community is located on registered 
 14.21  land, the recording fee for any document affecting two or more 
 14.22  units shall be the then-current fee for registering the document 
 14.23  on the certificates of title for the first ten affected 
 14.24  certificates and one-third of the then-current fee for each 
 14.25  additional affected certificate.  This provision shall not apply 
 14.26  to recording fees for deeds of conveyance, with the exception of 
 14.27  deeds given pursuant to sections 515B.2-119 and 515B.3-112. 
 14.28     (f) An amendment to or restatement of a declaration or 
 14.29  bylaws, or an amended CIC plat, approved by the required vote of 
 14.30  unit owners of an association may be recorded without the 
 14.31  necessity of paying the current or delinquent taxes on any of 
 14.32  the units in the common interest community. 
 14.33     (g) The registrar of titles shall not require the filing on 
 14.34  certificates of title previously issued for units in a flexible 
 14.35  common interest community of an amendment to a declaration 
 14.36  pursuant to section 515B.2-111 made solely to add additional 
 15.1   real estate. 
 15.2      Sec. 7.  Minnesota Statutes 1994, section 515B.2-104, is 
 15.3   amended to read: 
 15.4      515B.2-104 [DESCRIPTION OF UNITS.] 
 15.5      (a) A description of a unit is legally sufficient if it 
 15.6   sets forth (i) the unit identifier of the unit, (ii) the number 
 15.7   assigned to the common interest community by the recording 
 15.8   officer, and (iii) the county in which the unit is located. 
 15.9      (b) The unit identifier shall be stated in the 
 15.10  declaration.  If the CIC plat for a planned community complies 
 15.11  with chapter 505, 508, or 508A, then the declaration shall 
 15.12  designate the lot, block, and subdivision name, or the tract and 
 15.13  registered land survey number, as the unit identifier a 
 15.14  description of a unit in the planned community is legally 
 15.15  sufficient if it is stated in terms of a plat or registered land 
 15.16  survey.  Any instrument conveying or asserting an interest in a 
 15.17  unit shall reference the county and the common interest 
 15.18  community number immediately following the name of the plat or 
 15.19  registered land survey.  In all other planned communities whose 
 15.20  CIC plats comply with section 515B.2-110(c), and in all 
 15.21  condominiums and cooperatives created under this chapter, a unit 
 15.22  identifier shall contain no more than six characters, only one 
 15.23  of which may be a letter. 
 15.24     (c) A description which conforms to the requirements of 
 15.25  this section shall be deemed to include all rights, obligations, 
 15.26  and interests appurtenant to the unit which were created by the 
 15.27  declaration or bylaws, or by this chapter, whether or not those 
 15.28  rights, obligations, or interests are expressly described. 
 15.29     (d) If the CIC plat for a planned community complies with 
 15.30  section 515B.2-110(c) a description of the common elements is 
 15.31  legally sufficient if it sets forth (i) the words "common 
 15.32  elements," (ii) the number assigned to the common interest 
 15.33  community by the recording officer, and (iii) the county in 
 15.34  which the common elements are located.  The common elements may 
 15.35  consist of separate parcels of real estate, in which case each 
 15.36  parcel shall be separately identified on the CIC plat and in any 
 16.1   recorded instrument referencing a separate parcel of the common 
 16.2   elements. 
 16.3      Sec. 8.  Minnesota Statutes 1994, section 515B.2-105, is 
 16.4   amended to read: 
 16.5      515B.2-105 [CONTENTS OF DECLARATION; ALL COMMON INTEREST 
 16.6   COMMUNITIES.] 
 16.7      (a) The declaration shall contain: 
 16.8      (1) the number of the common interest community, whether 
 16.9   the common interest community is a condominium, planned 
 16.10  community or cooperative, and the names name of the common 
 16.11  interest community and the association;, which shall appear at 
 16.12  the top of the first page of the declaration in the following 
 16.13  format: 
 16.14                Common Interest Community No. ....
 16.15               (Type of Common Interest Community)
 16.16     
 16.17               (Name of Common Interest Community)
 16.19                          (DECLARATION)
 16.20     (2) a statement that as to whether the common interest 
 16.21  community is either a condominium, cooperative, or planned 
 16.22  community, and whether it is or is not subject to a master 
 16.23  association; 
 16.24     (3) the name of the association, a statement that the 
 16.25  association has been incorporated and a reference to the statute 
 16.26  under which it was incorporated; 
 16.27     (4) a legally sufficient description of the real estate 
 16.28  included in the common interest community, including the name of 
 16.29  the county, and any appurtenant easements; 
 16.30     (5) a description of the boundaries of each unit created by 
 16.31  the declaration and the unit's unit identifier; 
 16.32     (6) in a planned community containing common elements, a 
 16.33  legally sufficient description of the common elements; 
 16.34     (7) in a cooperative, a statement as to whether the unit 
 16.35  owners' interests in all units and their allocated interests are 
 16.36  real estate or personal property; 
 17.1      (8) an allocation to each unit of the allocated interests 
 17.2   in the manner described in section 515B.2-108; 
 17.3      (9) a statement of (i) the total number of units and (ii) 
 17.4   which units will be restricted to residential use and which 
 17.5   units will be restricted to nonresidential use; 
 17.6      (10) a statement of the maximum number of units which may 
 17.7   be created by the subdivision or conversion of units owned by 
 17.8   the declarant pursuant to section 515B.2-112; 
 17.9      (11) any material restrictions on use, occupancy, or 
 17.10  alienation of the units, or on the sale price of a unit or on 
 17.11  the amount that may be received by an owner on sale, 
 17.12  condemnation or casualty loss to the unit or to the common 
 17.13  interest community, or on termination of the common interest 
 17.14  community; provided, that these requirements shall not affect 
 17.15  the power of the association to adopt, amend or revoke rules and 
 17.16  regulations pursuant to section 515B.3-102; 
 17.17     (12) a statement as to whether time shares are permitted; 
 17.18  and 
 17.19     (13) all matters required by sections 515B.1-103(31), 
 17.20  Special Declarant Rights; 515B.2-107, Leaseholds; 515B.2-109, 
 17.21  Common Elements and Limited Common Elements; 515B.2-110, Common 
 17.22  Interest Community Plat; 515B.3-115, Assessments for Common 
 17.23  Expenses; and 515B.2-121, Master Associations.  
 17.24     (b) The declaration may contain any other matters the 
 17.25  declarant considers appropriate. 
 17.26     Sec. 9.  Minnesota Statutes 1994, section 515B.2-109, is 
 17.27  amended to read: 
 17.28     515B.2-109 [COMMON ELEMENTS AND LIMITED COMMON ELEMENTS.] 
 17.29     (a) Common elements other than limited common elements may 
 17.30  be used in common by all unit owners.  Limited common elements 
 17.31  are designated for the exclusive use of the unit owners of the 
 17.32  unit or units to which the limited common elements are 
 17.33  allocated, subject to subsection (b) and the rights of the 
 17.34  association as set forth in the declaration, the bylaws or this 
 17.35  chapter. 
 17.36     (b) Except for the limited common elements described in 
 18.1   section 515B.2-102, subsections (d) and (f), the declaration 
 18.2   shall specify to which unit or units each limited common element 
 18.3   is allocated. 
 18.4      (c) If the declaration so provides, An allocation of 
 18.5   limited common elements may be changed.  The reallocation shall 
 18.6   be accomplished by an amendment to the declaration executed by 
 18.7   the unit owners between or among whose units the reallocation is 
 18.8   made and the association.  The unit owners required to execute 
 18.9   the amendment shall submit to the association an application, 
 18.10  including a proposed amendment, for approval shall be approved 
 18.11  by the board of directors of the association as to form, and 
 18.12  compliance with the declaration and this chapter.  The 
 18.13  association shall establish fair and reasonable procedures and 
 18.14  time frames for the submission and processing of the 
 18.15  applications reallocations, and shall maintain records thereof.  
 18.16  If approved, the unit owners executing association shall cause 
 18.17  the amendment shall promptly record to be recorded promptly.  
 18.18  The amendment and deliver a copy of the recorded amendment to 
 18.19  the association shall be effective when recorded.  The 
 18.20  association may require the unit owners executing the amendment 
 18.21  requesting the reallocation to pay all fees and costs for 
 18.22  reviewing, preparing and recording the amendment and any amended 
 18.23  CIC plat. 
 18.24     Sec. 10.  Minnesota Statutes 1994, section 515B.2-110, is 
 18.25  amended to read: 
 18.26     515B.2-110 [COMMON INTEREST COMMUNITY PLAT (CIC PLAT).] 
 18.27     (a) The CIC plat is required for condominiums and planned 
 18.28  communities, and cooperatives in which the unit owners' 
 18.29  interests are characterized as real estate.  The CIC plat for a 
 18.30  planned community which does not comply with subsection (c) may 
 18.31  consist of all or part of the subdivision plat satisfying the 
 18.32  requirements of chapter 505, 508, or 508A, and the number of the 
 18.33  common interest community need not appear on the CIC plat.  The 
 18.34  CIC plat is a part of the declaration, but need not be 
 18.35  physically attached to the declaration.  The CIC plat is 
 18.36  required for condominiums and planned communities, in 
 19.1   condominiums, and in cooperatives in which the unit owners' 
 19.2   interests are characterized as real estate, but need not be 
 19.3   physically attached to the declaration.  In cooperatives in 
 19.4   which the unit owners' interests are characterized as personal 
 19.5   property, a CIC plat shall not be required.  In lieu of a CIC 
 19.6   plat, the declaration or any amendment to it creating, 
 19.7   converting, or subdividing units in a personal property 
 19.8   cooperative shall include an exhibit containing a scale drawing 
 19.9   of each building, identifying the building, and showing the 
 19.10  perimeter walls of each unit created or changed by the 
 19.11  declaration or the any amendment to it, including the unit's 
 19.12  unit identifier, and its location within the building if the 
 19.13  building contains more than one unit. 
 19.14     (b) The CIC plat for condominiums, for planned communities 
 19.15  using a plat complying with subsection (c), and for cooperatives 
 19.16  in which the unit owners' interests are characterized as real 
 19.17  estate, shall contain certifications by a registered 
 19.18  professional land surveyor and registered professional 
 19.19  architect, as to the parts of the CIC plat prepared by each, 
 19.20  that (i) the CIC plat accurately depicts all information 
 19.21  required by this section, and (ii) the work was undertaken by, 
 19.22  or reviewed and approved by, the certifying land surveyor or 
 19.23  architect.  The portions of the CIC plat depicting the 
 19.24  dimensions of the portions of a condominium or cooperative the 
 19.25  common interest community described in subsections (c)(8), (9), 
 19.26  (10), and (12), may be prepared by either a land surveyor or an 
 19.27  architect.  The other portions of the CIC plat shall be prepared 
 19.28  only by a land surveyor.  Certification by the land surveyor or 
 19.29  architect does not constitute a guaranty or warranty of the 
 19.30  nature, suitability, or quality of construction of any 
 19.31  improvements located or to be located in the common interest 
 19.32  community. 
 19.33     (c) A CIC plat for a condominium or cooperative shall show: 
 19.34     (1) the number of the common interest community, and the 
 19.35  boundaries, dimensions and a legally sufficient description of 
 19.36  the land included therein; 
 20.1      (2) the dimensions and location of all existing, material 
 20.2   structural improvements and roadways; 
 20.3      (3) the intended location and dimensions of any 
 20.4   contemplated common element improvements to be constructed 
 20.5   within the common interest community after the filing of the CIC 
 20.6   plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT"; 
 20.7      (4) the location and dimensions of any additional real 
 20.8   estate, labeled as such, and a legally sufficient description of 
 20.9   the additional real estate; 
 20.10     (5) the extent of any encroachments by or upon any portion 
 20.11  of the common interest community; 
 20.12     (6) the location and dimensions of all recorded easements 
 20.13  within the common interest community serving or burdening any 
 20.14  portion of the common interest community; 
 20.15     (7) the distance and direction between noncontiguous 
 20.16  parcels of real estate; 
 20.17     (8) the location and dimensions of limited common elements, 
 20.18  for example, storage lockers, porches, balconies, decks and 
 20.19  patios, other than limited common elements described in section 
 20.20  515B.2-102, subsections (b) and (d) and (f); 
 20.21     (9) the location and dimensions of the front, rear, and 
 20.22  side boundaries of each unit and that unit's unit identifier; 
 20.23     (10) the location and dimensions of the upper and lower 
 20.24  boundaries of each unit with reference to an established or 
 20.25  assumed datum and that unit's unit identifier; 
 20.26     (11) a legally sufficient description of any real estate in 
 20.27  which the unit owners will own only an estate for years, labeled 
 20.28  as "leasehold real estate"; 
 20.29     (12) any units which may be converted by the declarant to 
 20.30  create additional units or common elements identified separately.
 20.31     (d) A CIC plat for a planned community either shall comply 
 20.32  with subsection (c) or it shall: 
 20.33     (1) show the number of the common interest community; 
 20.34     (2) satisfy the requirements of chapter 505, 508, or 508A, 
 20.35  as applicable; and 
 20.36     (3) (2) satisfy the platting requirements of any 
 21.1   governmental authority within whose jurisdiction the planned 
 21.2   community is located, subject to the limitations set forth in 
 21.3   section 515B.1-106. 
 21.4      (e) If a declarant adds additional real estate, the 
 21.5   declarant shall record a supplemental CIC plat or plats for the 
 21.6   real estate being added, conforming to the requirements of 
 21.7   subsections (b) and (c) in the case of a condominium or 
 21.8   cooperative, and subsections (b) and (d) in the case of a 
 21.9   planned community this section which apply to the type of common 
 21.10  interest community in question.  If less than all additional 
 21.11  real estate is being added, the supplemental CIC plat for a 
 21.12  condominium or cooperative, a planned community whose CIC plat 
 21.13  complies with subsection (c), or a cooperative in which the unit 
 21.14  owners' interests are characterized as real estate, shall also 
 21.15  show the location and dimensions of the remaining portion. 
 21.16     (f) If a declarant subdivides or converts any unit into two 
 21.17  or more units, common elements or limited common elements, the 
 21.18  declarant shall record an amendment to the CIC plat showing the 
 21.19  location and dimensions of any new units, common elements and 
 21.20  limited common elements thus created. 
 21.21     Sec. 11.  Minnesota Statutes 1994, section 515B.3-112, is 
 21.22  amended to read: 
 21.23     515B.3-112 [CONVEYANCE OR ENCUMBRANCE OF COMMON ELEMENTS.] 
 21.24     (a) In a condominium or planned community, unless the 
 21.25  declaration provides otherwise, portions of the common elements 
 21.26  may be conveyed or subjected to a security interest by the 
 21.27  association if persons entitled to cast at least 67 percent of 
 21.28  the votes in the association, including 67 percent of the votes 
 21.29  allocated to units not owned by a declarant, or any larger 
 21.30  percentage the declaration specifies, approve that action in 
 21.31  writing or at a meeting; but all unit owners of units to which 
 21.32  any limited common element is allocated must agree in order to 
 21.33  convey that limited common element or subject it to a security 
 21.34  interest.  The declaration may specify a smaller percentage only 
 21.35  if all of the units are restricted to nonresidential use. 
 21.36     (b) In a cooperative, unless the declaration provides 
 22.1   otherwise, part of a cooperative may be conveyed, or all or a 
 22.2   part subjected to a security interest, by the association if 
 22.3   persons entitled to cast at least 67 percent of the votes in the 
 22.4   association, including 67 percent of the votes allocated to 
 22.5   units in which the declarant has no interest, or any larger 
 22.6   percentage the declaration specifies, approves that action in 
 22.7   writing or at a meeting.  If fewer than all of the units or 
 22.8   limited common elements are to be conveyed or subjected to a 
 22.9   security interest, then all unit owners of those units, or the 
 22.10  units to which those limited common elements are allocated, must 
 22.11  agree in order to convey those units or limited common elements 
 22.12  or subject them to a security interest.  The declaration may 
 22.13  specify a smaller percentage only if all of the units are 
 22.14  restricted to nonresidential use.  Any purported conveyance or 
 22.15  other voluntary transfer of an entire cooperative is void, 
 22.16  unless made pursuant to section 515B.2-119. 
 22.17     (c) The association, on behalf of the unit owners, may 
 22.18  contract to convey or encumber an interest in the common 
 22.19  elements of a common interest community pursuant to this 
 22.20  subsection, subject to the required approval.  After the 
 22.21  approval has been obtained, the association shall have a power 
 22.22  of attorney coupled with an interest to effect the conveyance or 
 22.23  encumbrance on behalf of all unit owners in the common interest 
 22.24  community, including the power to execute deeds, mortgages, or 
 22.25  other instruments of conveyance or security.  The instrument 
 22.26  conveying or creating the interest in the common interest 
 22.27  community shall be recorded and shall include as exhibits (i) an 
 22.28  affidavit of the secretary of the association certifying that 
 22.29  the approval required by this section has been obtained and (ii) 
 22.30  a schedule of the names of all unit owners and units in the 
 22.31  common interest community as of the date of the approval. 
 22.32     (d) Except as provided in section 515B.3-102(a)(9), unless 
 22.33  made pursuant to this section, any purported conveyance, 
 22.34  encumbrance, or other voluntary transfer of common elements, or 
 22.35  of any part of a cooperative, is void. 
 22.36     (e) In the case of a conveyance involving a condominium, or 
 23.1   a cooperative in which the unit owners' interests are 
 23.2   characterized as real estate, the association shall record, 
 23.3   simultaneously with the recording of the instrument of 
 23.4   conveyance, an amended CIC plat showing the real estate 
 23.5   constituting the common interest community exclusive of the real 
 23.6   estate conveyed.  In all common interest communities, upon 
 23.7   recording of the amended CIC plat instrument of conveyance, the 
 23.8   original CIC plat shall be deemed vacated as to the real estate 
 23.9   conveyed, the declaration, and all rights and obligations 
 23.10  arising therefrom, shall be deemed released and terminated as to 
 23.11  said the real estate and the interests of any secured party 
 23.12  shall be deemed released as to said real estate conveyed. 
 23.13     (f) A conveyance or encumbrance of common elements, or of a 
 23.14  cooperative, pursuant to this section shall not deprive any unit 
 23.15  of its rights of support, reasonable access or utility services. 
 23.16     (g) Except as provided in subsection (a), or unless the 
 23.17  declaration otherwise provides, a conveyance or encumbrance of 
 23.18  common elements pursuant to this section does not affect the 
 23.19  priority or validity of preexisting encumbrances. 
 23.20     (h) Any proceeds of the conveyance or creation of a 
 23.21  security interest under this section are an asset of the 
 23.22  association. 
 23.23     (i) This section shall not apply to any conveyance or 
 23.24  encumbrance of any interest in a proprietary lease. 
 23.25     Sec. 12.  Minnesota Statutes 1994, section 515B.3-115, is 
 23.26  amended to read: 
 23.27     515B.3-115 [ASSESSMENTS FOR COMMON EXPENSES.] 
 23.28     (a) If a common expense assessment has not been levied, the 
 23.29  declarant shall pay all accrued expenses of the common interest 
 23.30  community.  If a common expense assessment has been levied, all 
 23.31  unit owners including the declarant shall pay the assessments 
 23.32  allocated to their units, except as otherwise permitted by this 
 23.33  section.  Subject to the requirements of this section, a 
 23.34  declarant may institute an one, but not both, of the alternative 
 23.35  assessment program programs described in subsections (a)(1) and 
 23.36  (a)(2), whereby: 
 24.1      (1) if a common expense assessment has been levied, the 
 24.2   declarant purchaser shall pay when due only the common expenses 
 24.3   up to a specified limit guaranteed by the declarant, and the 
 24.4   declarant shall pay all common expenses in excess of a specified 
 24.5   guaranty the limit; or 
 24.6      (2) if a common expense assessment has been levied in a 
 24.7   planned community, the declarant may limit its liability for 
 24.8   assessments on units owned by it to 25 percent or any greater 
 24.9   percentage of any assessment levied until such time as a 
 24.10  certificate of occupancy is issued by the municipality in which 
 24.11  the common interest community is located for the unit or units 
 24.12  owned by the declarant. 
 24.13     (b) The alternative assessment programs described in 
 24.14  subsection (a)(1) or (2), shall be permitted only by including 
 24.15  in the declaration, and the disclosure statement required by 
 24.16  section 515B.4-102, provisions authorizing declarant to 
 24.17  establish an alternative assessment program and a detailed 
 24.18  explanation of the program, including at a minimum, as 
 24.19  applicable, (i) the maximum amount of any guaranty on a monthly 
 24.20  and aggregate basis with respect to each type of unit, (ii) the 
 24.21  minimum and maximum duration of the alternative assessment 
 24.22  program, (iii) the time when the declarant's authority to 
 24.23  commence the alternative assessment program expires, which shall 
 24.24  be no later than the expiration of any period of declarant 
 24.25  control, and (iv) a statement that the alternative assessment 
 24.26  program will have no effect on the level of services for items 
 24.27  set forth in the association's budget, or a statement that no 
 24.28  assurances are made in those regards. 
 24.29     (c) Notwithstanding any disclosure in the declaration or 
 24.30  disclosure statement, the declarant shall give the unit owners 
 24.31  at least 60 days prior notice of the termination of the 
 24.32  alternative assessment program, subject to any minimum duration 
 24.33  described in the declaration and disclosure statement. 
 24.34     (d) Any alternative assessment program instituted by 
 24.35  declarant shall not affect declarant's obligation to fund the 
 24.36  reserves disclosed in the association's budget included in the 
 25.1   disclosure statement or otherwise approved by the association. 
 25.2      (e) Any representations or agreements made by a declarant 
 25.3   with respect to an alternative assessment program shall be 
 25.4   enforceable against declarant by any unit owner or by the 
 25.5   association. 
 25.6      (f) After an assessment has been levied by the association, 
 25.7   assessments shall be levied at least annually, based upon a 
 25.8   budget approved at least annually by the association. 
 25.9      (g) Except as modified by subsections (a)(1) and (2), (h), 
 25.10  (i) and (j), all common expenses shall be assessed against all 
 25.11  the units in accordance with the allocations established by the 
 25.12  declaration pursuant to section 515B.2-108. 
 25.13     (h) Unless otherwise required by the declaration: 
 25.14     (1) any common expense associated with the maintenance, 
 25.15  repair, or replacement of a limited common element shall be 
 25.16  assessed against the units to which that limited common element 
 25.17  is assigned, equally, or in any other proportion the declaration 
 25.18  provides; 
 25.19     (2) any common expense or portion thereof benefiting fewer 
 25.20  than all of the units may be assessed exclusively against the 
 25.21  units benefited, equally, or in any other proportion the 
 25.22  declaration provides; 
 25.23     (3) the costs of insurance may be assessed in proportion to 
 25.24  risk or coverage, and the costs of utilities may be assessed in 
 25.25  proportion to usage; 
 25.26     (4) reasonable attorneys fees incurred by the association 
 25.27  in connection with (i) the collection of assessments and, (ii) 
 25.28  the enforcement of this chapter, the articles, bylaws, 
 25.29  declaration, or rules and regulations, against a unit owner, may 
 25.30  be assessed against the unit owner's unit; and 
 25.31     (5) fees, charges, late charges, fines and interest may be 
 25.32  assessed as provided in section 515B.3-116(a). 
 25.33     (i) Assessments levied under section 515B.3-116 to pay a 
 25.34  judgment against the association may be levied only against the 
 25.35  units in the common interest community at the time the judgment 
 25.36  was entered, in proportion to their common expense liabilities. 
 26.1      (j) If any damage to the common elements or another unit is 
 26.2   caused by the act or omission of any unit owner, or occupant of 
 26.3   a unit, or their invitees, the association may assess the costs 
 26.4   of repairing the damage exclusively against the unit owner's 
 26.5   unit to the extent not covered by insurance. 
 26.6      (k) Subject to any shorter period specified by the 
 26.7   declaration or bylaws, if any installment of an assessment 
 26.8   becomes more than 60 days past due, then the association may, 
 26.9   upon ten days written notice to the unit owner, declare the 
 26.10  entire amount of the assessment immediately due and payable in 
 26.11  full. 
 26.12     (l) If common expense liabilities are reallocated for any 
 26.13  purpose authorized by this chapter, common expense assessments 
 26.14  and any installment thereof not yet due shall be recalculated in 
 26.15  accordance with the reallocated common expense liabilities. 
 26.16     Sec. 13.  Minnesota Statutes 1994, section 582.25, is 
 26.17  amended to read: 
 26.18     582.25 [MORTGAGES; VALIDATING FORECLOSURE SALES.] 
 26.19     Every mortgage foreclosure sale by advertisement in this 
 26.20  state before the date specified in clause (A) of section 582.27, 
 26.21  under power of sale in the usual form contained in any mortgage 
 26.22  duly executed and recorded in the office of the county recorder 
 26.23  or registered with the registrar of titles of the proper county 
 26.24  of this state, together with the record of such foreclosure 
 26.25  sale, is, after expiration of the period specified in section 
 26.26  582.27, hereby legalized and made valid and effective to all 
 26.27  intents and purposes, as against any or all of the following 
 26.28  objections: 
 26.29     (1) That the power of attorney, recorded or filed in the 
 26.30  proper office prior to the date specified in section 582.27 to 
 26.31  foreclose the mortgage, provided for by section 580.05: 
 26.32     (a) Did not definitely describe and identify the mortgage, 
 26.33     (b) Did not definitely describe and identify the mortgage, 
 26.34  but instead described another mortgage between the same parties, 
 26.35     (c) Did not have the corporate seal affixed thereto, if 
 26.36  executed by a corporation, 
 27.1      (d) Had not been executed and recorded or filed prior to 
 27.2   sale, or had been executed prior to, but not recorded or filed 
 27.3   until after such sale, 
 27.4      (e) Was executed subsequent to the date of the printed 
 27.5   notice of sale or subsequent to the date of the first 
 27.6   publication of such notice; 
 27.7      (2) That no power of attorney to foreclose such mortgage as 
 27.8   provided in section 580.05, was ever given, or recorded, or 
 27.9   registered, when sale was made in this state prior to the date 
 27.10  specified in section 582.27; 
 27.11     (3) That the notice of sale: 
 27.12     (a) Was published only three, four or five times, or that 
 27.13  it was published six times but not for six weeks prior to the 
 27.14  date of sale, 
 27.15     (b) Properly described the property to be sold in one or 
 27.16  more of the publications thereof but failed to do so in the 
 27.17  other publications thereof, the correct description having been 
 27.18  contained in the copy of said notice served on the occupant of 
 27.19  the premises, 
 27.20     (c) Correctly stated the date of the month and hour and 
 27.21  place of sale but named a day of the week which did not fall on 
 27.22  the date given for such sale, or failed to state or state 
 27.23  correctly the year of such sale, 
 27.24     (d) Correctly described the real estate but omitted the 
 27.25  county and state in which said real estate is located, 
 27.26     (e) Correctly described the land by government subdivision, 
 27.27  township and range, but described it as being in a county other 
 27.28  than that in which said mortgage foreclosure proceedings were 
 27.29  pending, and other than that in which said government 
 27.30  subdivision was actually located, 
 27.31     (f) Did not state the amount due or failed to state the 
 27.32  correct amount due or claimed to be due, 
 27.33     (g) Incorrectly stated the municipal status of the place 
 27.34  where the sale was to occur, 
 27.35     (h) In one or more of the publications thereof, or in the 
 27.36  notice served on the occupant or occupants designated either a 
 28.1   place or a time of sale other than that stated in the 
 28.2   certificate of sale, 
 28.3      (i) Failed to state the names of one or more of the 
 28.4   assignees of the mortgage and described the subscriber thereof 
 28.5   as mortgagee instead of assignee, 
 28.6      (j) Failed to state or incorrectly stated the name of the 
 28.7   mortgagor, the mortgagee, or assignee of mortgagee, 
 28.8      (k) Was not served upon persons whose possession of the 
 28.9   mortgaged premises was otherwise than by their personal presence 
 28.10  thereon, if a return or affidavit was recorded or filed as a 
 28.11  part of the foreclosure record that at a date at least four 
 28.12  weeks prior to the sale the mortgaged premises were vacant and 
 28.13  unoccupied, 
 28.14     (l) Was not served upon all of the parties in possession of 
 28.15  the mortgaged premises, provided it was served upon one or more 
 28.16  of such parties, 
 28.17     (m) Was not served upon the persons in possession of the 
 28.18  mortgaged premises, if, at least two weeks before the sale was 
 28.19  actually made, a copy of the notice was served upon the owner in 
 28.20  the manner provided by law for service upon the occupants, or 
 28.21  the owner received actual notice of the proposed sale, 
 28.22     (n) Gave the correct description at length, and an 
 28.23  incorrect description by abbreviation or figures set off by the 
 28.24  parentheses, or vice versa, 
 28.25     (o) Was served personally upon the occupants of the 
 28.26  premises as such, but said service was less than four weeks 
 28.27  prior to the appointed time of sale, 
 28.28     (p) Did not state the original principal amount secured, or 
 28.29  failed to state the correct original principal amount secured; 
 28.30     (4) That distinct and separate parcels of land were sold 
 28.31  together as one parcel and to one bidder for one bid for the 
 28.32  whole as one parcel; 
 28.33     (5) That no authenticated copy of the order appointing, or 
 28.34  letters issued to a foreign representative of the estate of the 
 28.35  mortgagee or assignee, was properly filed or recorded, provided 
 28.36  such order or letters have been filed or recorded in the proper 
 29.1   office prior to the date specified in section 582.27 one year 
 29.2   after the last day of the redemption period of the mortgagor, 
 29.3   the mortgagor's personal representatives or assigns; 
 29.4      (6) That every a holder of a mortgage foreclosure sale by 
 29.5   advertisement by was a representative appointed by a court of 
 29.6   competent jurisdiction in another state or county in which 
 29.7   before the foreclosure sale an authenticated copy of the 
 29.8   representative's letters or other record of authority has been 
 29.9   were filed for record in the office of the county recorder of 
 29.10  the proper county but no certificate was filed and recorded 
 29.11  therewith showing that said letters or other record of authority 
 29.12  were still in force, is hereby legalized and made valid and 
 29.13  effective to all intents and purposes notwithstanding such 
 29.14  omission; 
 29.15     (7) (a) That said mortgage was assigned by a decree of a 
 29.16  probate court in which decree the mortgage was not specifically 
 29.17  or sufficiently described, 
 29.18     (b) That the mortgage foreclosed had been assigned by the 
 29.19  final decree of the probate court to the heirs, devisees, or 
 29.20  legatees of the deceased mortgagee, or the mortgagee's assigns, 
 29.21  and subsequent thereto and before the representative of the 
 29.22  estate had been discharged by order of the probate court, the 
 29.23  representative had assigned the mortgage to one of the heirs, 
 29.24  devisees, or legatees named in such final decree, and such 
 29.25  assignment placed on record and the foreclosure proceedings 
 29.26  conducted in the name of such assignee and without any 
 29.27  assignment of the mortgage from the heirs, devisees, or legatees 
 29.28  named in such final decree, and the mortgaged premises bid in at 
 29.29  the sale by such assignee, and the sheriff's certificate of 
 29.30  sale, with accompanying affidavits recorded in the office of the 
 29.31  county recorder of the proper county, 
 29.32     (c) That a mortgage owned by joint tenants or tenants in 
 29.33  common was foreclosed by only one tenant; 
 29.34     (8) That the sheriff's certificate of sale or the 
 29.35  accompanying affidavits and return of service were not executed, 
 29.36  filed or recorded within 20 days after the date of sale, but 
 30.1   have been executed and filed or recorded prior to the date 
 30.2   specified in section 582.27 the last day of the redemption 
 30.3   period of the mortgagor, the mortgagor's personal 
 30.4   representatives or assigns; 
 30.5      (9) That the year, or the month, or the day, or the hour of 
 30.6   the sale is omitted or incorrectly or insufficiently stated in 
 30.7   the notice of sale or the sheriff's certificate of sale; 
 30.8      (10)(a) That prior to the foreclosure no registration tax 
 30.9   was paid on the mortgage, provided such tax had been paid prior 
 30.10  to the date specified in section 582.27 one year after the last 
 30.11  day of the redemption period of the mortgagor, the mortgagor's 
 30.12  personal representatives or assigns, 
 30.13     (b) That an insufficient registration tax has been paid on 
 30.14  the mortgage; 
 30.15     (11) That the date of the mortgage or any assignment 
 30.16  thereof or the date, the month, the day, hour, book, and page, 
 30.17  or document number of the record or filing of the mortgage or 
 30.18  any assignment thereof, in the office of the county recorder or 
 30.19  registrar of titles is omitted or incorrectly or insufficiently 
 30.20  stated in the notice of sale or in any of the foreclosure 
 30.21  papers, affidavits or instruments; 
 30.22     (12) That the notice of mortgage foreclosure sale or 
 30.23  sheriff's certificate of sale designated the place of sale as 
 30.24  the office of a county official located in the court house of 
 30.25  the county when such office was not located in such court house; 
 30.26     (13) That no notice of the pendency of the proceedings to 
 30.27  enforce or foreclose the mortgage as provided in section 508.57, 
 30.28  was filed with the registrar of titles or no memorial thereof 
 30.29  was entered on the register at the time of or prior to the 
 30.30  commencement of such proceedings; or that when required by 
 30.31  section 508.57, the notice of mortgage foreclosure sale failed 
 30.32  to state the fact of registration; 
 30.33     (14) That the power of attorney to foreclose or the notice 
 30.34  of sale was signed by the person who was the representative of 
 30.35  an estate, but failed to state or correctly state the person's 
 30.36  representative capacity; 
 31.1      (15) That the complete description of the property 
 31.2   foreclosed was not set forth in the sheriff's certificate of 
 31.3   sale, if said certificate correctly refers to the mortgage by 
 31.4   book and page numbers or document number and date of filing and 
 31.5   the premises are accurately described in the printed notice of 
 31.6   sale annexed to said foreclosure sale record containing said 
 31.7   sheriff's certificate of sale; 
 31.8      (16) That the date of recording of the mortgage was 
 31.9   improperly stated in the sheriff's certificate of mortgage 
 31.10  foreclosure sale, the mortgage being otherwise properly 
 31.11  described in said sheriff's certificate of mortgage foreclosure 
 31.12  sale and said certificate of mortgage foreclosure sale further 
 31.13  referring to the printed notice of mortgage foreclosure sale 
 31.14  attached to said sheriff's certificate of mortgage foreclosure 
 31.15  sale in which printed notice the mortgage and its recording was 
 31.16  properly described; 
 31.17     (17) That prior to the first publication of the notice of 
 31.18  sale in foreclosure of a mortgage by advertisement, an action or 
 31.19  proceeding had been instituted for the foreclosure of said 
 31.20  mortgage or the recovery of the debt secured thereby and such 
 31.21  action or proceeding had not been discontinued; 
 31.22     (18) That at the time and place of sale the sheriff 
 31.23  considered and accepted a bid submitted prior to the date of the 
 31.24  sale by the owner of the mortgage and sold the mortgaged 
 31.25  premises for the amount of such bid, no other bid having been 
 31.26  submitted, and no one representing the owner of the mortgage 
 31.27  being present at the time and place of sale; 
 31.28     (19) That such sale was postponed by the sheriff to a date 
 31.29  or time subsequent to the one specified in the notice of sale 
 31.30  but there was no publication or posting of a notice of such 
 31.31  postponement; 
 31.32     (20) That there was not recorded with letters or other 
 31.33  record of authority issued to a representative appointed by a 
 31.34  court of competent jurisdiction in another state or county, a 
 31.35  certificate that said letters or other record of authority were 
 31.36  still in force and effect; 
 32.1      (21) That the sheriff's affidavit of sale correctly stated 
 32.2   in words the sum for which said premises were bid in and 
 32.3   purchased by the mortgagee, but incorrectly stated the same in 
 32.4   figures immediately following the correct amount in words.; 
 32.5      (22) That the notice of pendency of the foreclosure as 
 32.6   required by section 580.032 was not filed for record before the 
 32.7   first date of publication of the foreclosure notice, but was 
 32.8   filed before the date of sale. 
 32.9      Sec. 14.  Minnesota Statutes 1994, section 582.27, is 
 32.10  amended to read: 
 32.11     582.27 [EFFECTIVE DATES FOR APPLICATION OF CURATIVE 
 32.12  PROVISIONS.] 
 32.13     Subdivision 1.  [SECTION 582.25.] The following schedule 
 32.14  specifies the dates to be applied to Upon expiration of the 
 32.15  periods specified in this section, the provisions of section 
 32.16  582.25 apply to a mortgage foreclosure sale subject to this 
 32.17  section: 
 32.18     (A) as to the general provision all of the provisions of 
 32.19  section 582.25, April 1, 1991 except clause (2), one year after 
 32.20  the last day of the redemption period of the mortgagor, the 
 32.21  mortgagor's personal representatives or assigns; 
 32.22     (B) as to clause (1), April 16, 1992; 
 32.23     (C) as to clause (2), January 1, 1982 ten years after the 
 32.24  date of the foreclosure sale; 
 32.25     (D) as to clause (5), April 16, 1992; 
 32.26     (E) as to clause (8), April 16, 1992; 
 32.27     (F) as to clause (10) (a), April 16, 1992. 
 32.28     Subd. 2.  [SECTION 582.26.] The date of the report of sale 
 32.29  to which section 582.26 applies is April 16, 1992 one year after 
 32.30  the date of the foreclosure sale. 
 32.31     Subd. 3.  [PENDING AND NEWLY COMMENCED ACTIONS.] The 
 32.32  provisions of sections 582.25 to 582.27 shall not affect any 
 32.33  action or proceeding pending on August 1, 1989, or which shall 
 32.34  be commenced before February 1, 1990, in any of the courts of 
 32.35  the state, involving the validity of such foreclosure.  Laws 
 32.36  1992, chapter 463, does not affect any proceeding pending on 
 33.1   August 1, 1992, or commenced before February 1, 1993, in any of 
 33.2   the courts of the state, involving the validity of the 
 33.3   foreclosure. 
 33.4      The amendments to the provisions of sections 582.25 to 
 33.5   582.27 by this act shall not affect any action pending on August 
 33.6   1, 1995, or which shall be commenced before February 1, 1996, in 
 33.7   any of the courts of the state, involving the validity of a 
 33.8   foreclosure. 
 33.9      Sec. 15.  [EFFECTIVE DATE.] 
 33.10     Sections 4 to 12 are effective June 1, 1995. 
 33.11     Sections 13 and 14 take effect the day after final 
 33.12  enactment.