SF 469

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; real estate; regulating certain 
  1.3             licensees and registrants; amending Minnesota Statutes 
  1.4             1994, sections 82.18; 82.195, subdivision 1; 82.20, 
  1.5             subdivision 13; 82A.11, subdivision 3; 83.28, 
  1.6             subdivision 5; 386.65, subdivision 1; 386.66; 386.67; 
  1.7             386.68; and 386.69. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 82.18, is 
  1.10  amended to read: 
  1.11     82.18 [EXCEPTIONS.] 
  1.12     Unless a person is licensed or otherwise required to be 
  1.13  licensed under this chapter, the term real estate broker does 
  1.14  not include: 
  1.15     (a) a licensed practicing attorney if the attorney complies 
  1.16  in all respects with the trust account provisions of this 
  1.17  chapter; 
  1.18     (b) a receiver, trustee, administrator, guardian, executor, 
  1.19  or other person appointed by or acting under the judgment or 
  1.20  order of any court; 
  1.21     (c) any person owning and operating a cemetery and selling 
  1.22  lots therein solely for use as burial plots; 
  1.23     (d) any custodian, janitor, or employee of the owner or 
  1.24  manager of a residential building who leases residential units 
  1.25  in the building; 
  1.26     (e) any bank, trust company, savings and loan association, 
  2.1   industrial loan and thrift company, regulated lender under 
  2.2   chapter 56, public utility, or land mortgage or farm loan 
  2.3   association organized under the laws of this state or the United 
  2.4   States, when engaged in the transaction of business within the 
  2.5   scope of its corporate powers as provided by law; 
  2.6      (f) public officers while performing their official duties; 
  2.7      (g) employees of persons enumerated in clauses (b), (e), 
  2.8   and (f), when engaged in the specific performance of their 
  2.9   duties; 
  2.10     (h) any person who acts as an auctioneer bonded in 
  2.11  conformity with section 330.02, when that person is engaged in 
  2.12  the specific performance of duties as an auctioneer, and when 
  2.13  that person has been employed to auction real estate by a person 
  2.14  licensed under this chapter or when the auctioneer has engaged a 
  2.15  licensed attorney to supervise the real estate transaction; 
  2.16     (i) any person who acquires real estate for the purpose of 
  2.17  engaging in and does engage in, or who is engaged in the 
  2.18  business of constructing residential, commercial or industrial 
  2.19  buildings for the purpose of resale if no more than 25 such 
  2.20  transactions occur in any 12-month period and the person 
  2.21  complies with section 82.24; 
  2.22     (j) any person who is licensed as a securities 
  2.23  broker-dealer or is licensed as a securities agent representing 
  2.24  a broker-dealer pursuant to chapter 80A and who offers to sell 
  2.25  or sells an interest or estate in real estate which is a 
  2.26  security as defined in section 80A.14, subdivision 18, and is 
  2.27  registered or exempt from registration or part of a transaction 
  2.28  exempt from registration pursuant to chapter 80A, when acting 
  2.29  solely as an incident to the sale of these securities; 
  2.30     (k) any person who offers to sell or sells a business 
  2.31  opportunity which is a franchise registered pursuant to chapter 
  2.32  80C, when acting solely to sell the franchise; 
  2.33     (l) any person who contracts with or solicits on behalf of 
  2.34  a provider a contract with a resident or prospective resident to 
  2.35  provide continuing care in a facility, pursuant to the 
  2.36  Continuing Care Facility Disclosure and Rehabilitation Act 
  3.1   (chapter 80D), when acting solely as incident to the contract; 
  3.2      (m) any broker-dealer or agent of a broker-dealer when 
  3.3   participating in a transaction in which all or part of a 
  3.4   business opportunity or business, including any interest 
  3.5   therein, is conveyed or acquired pursuant to an asset purchase, 
  3.6   merger, exchange of securities, or other business combination, 
  3.7   if the agent or broker-dealer is licensed pursuant to chapter 
  3.8   80A; 
  3.9      (n) an accountant acting incident to the practice of the 
  3.10  accounting profession if the accountant complies in all respects 
  3.11  with the trust account provisions of this chapter; 
  3.12     (o) a person who negotiates mortgage loans as described in 
  3.13  section 82.17, subdivision 4, clause (b), if the person is the 
  3.14  actual lender on at least 80 percent of all mortgage lending and 
  3.15  brokering transactions conducted by the person and if the person 
  3.16  is also a lender:  (1) approved or certified by the secretary of 
  3.17  housing and urban development; (2) approved or certified by the 
  3.18  administrator of Veterans Affairs; (3) approved or certified by 
  3.19  the Administrator of the Farmers Home Administration; (4) 
  3.20  approved or certified by the Federal Home Loan Mortgage 
  3.21  Corporation; or (5) approved or certified by the Federal 
  3.22  National Mortgage Association. 
  3.23     Sec. 2.  Minnesota Statutes 1994, section 82.195, 
  3.24  subdivision 1, is amended to read: 
  3.25     Subdivision 1.  [REQUIREMENT.] Licensees shall obtain a 
  3.26  signed listing agreement or other written authorization from the 
  3.27  owner of real property or from another person authorized to 
  3.28  offer the property for sale or lease before advertising to the 
  3.29  general public that the real property is available for sale or 
  3.30  lease.  
  3.31     For the purposes of this section "advertising" includes 
  3.32  placing a sign on the owner's property that indicates that the 
  3.33  property is being offered for sale or lease.  
  3.34     Sec. 3.  Minnesota Statutes 1994, section 82.20, 
  3.35  subdivision 13, is amended to read: 
  3.36     Subd. 13.  [LIMITED BROKER'S LICENSE.] The commissioner 
  4.1   shall have the authority to issue a limited real estate broker's 
  4.2   license authorizing the licensee to engage in transactions as 
  4.3   principal only.  Such license shall be issued only after receipt 
  4.4   of the application described in subdivision 3 and payment of the 
  4.5   fee prescribed by section 82.21, subdivision 1.  No salesperson 
  4.6   may be licensed to act on behalf of an individual holding a 
  4.7   limited broker's license.  An officer of a corporation or 
  4.8   partner of a partnership licensed as a limited broker may act on 
  4.9   behalf of that corporation or partnership without being subject 
  4.10  to the licensing requirements.  A limited broker's license shall 
  4.11  also authorize the licensee to engage in negotiation of mortgage 
  4.12  loans as described in section 82.17, subdivision 4, clause (b). 
  4.13     Sec. 4.  Minnesota Statutes 1994, section 82A.11, 
  4.14  subdivision 3, is amended to read: 
  4.15     Subd. 3.  [RIGHT OF RESCISSION.] A purchaser has an 
  4.16  unconditional right to rescind any membership camping contract, 
  4.17  or revoke any offer, at any time prior to or within three five 
  4.18  business days after the date the purchaser actually receives a 
  4.19  legible copy of the binding contract.  Predating of a document 
  4.20  does not affect the time in which the right to rescind may be 
  4.21  exercised. 
  4.22     Sec. 5.  Minnesota Statutes 1994, section 83.28, 
  4.23  subdivision 5, is amended to read: 
  4.24     Subd. 5.  [NOTICE TO PURCHASER.] The first contract, 
  4.25  agreement, or other evidence of indebtedness shall prominently 
  4.26  contain upon its face the following notice in bold type, which 
  4.27  shall be at least 4 point type larger than the body of the 
  4.28  document, stating, in one of the following forms: 
  4.29     (a) Registration by notification:  "Notice to Purchaser" -- 
  4.30  "You are entitled to rescind this agreement for any reason 
  4.31  within five days from the date you actually received a legible 
  4.32  copy of this document signed by all parties.  The rescission 
  4.33  must be in writing and mailed to the subdivider or subdivider's 
  4.34  agent or the lender at the address stated in this document.  
  4.35  Upon rescission you will receive a refund of all money 
  4.36  paid within 30 days after the subdivider receives notice of your 
  5.1   rescission." or; 
  5.2      (b) Registration by qualification:  "Notice to Purchaser" 
  5.3   -- "You are entitled to rescind this agreement for any reason 
  5.4   within five days from the date you actually received a legible 
  5.5   copy of this document signed by all parties and a public 
  5.6   offering statement.  The rescission must be in writing and 
  5.7   mailed to the subdivider or subdivider's agent or the lender at 
  5.8   the address stated in this document.  Upon rescission you will 
  5.9   receive a refund of all money paid within 30 days after the 
  5.10  subdivider receives notice of your rescission."  
  5.11     The contract, agreement, or other evidence of indebtedness 
  5.12  shall contain sufficient space upon its face in immediate 
  5.13  proximity to the above notice for the signature of each 
  5.14  purchaser obligated under such instrument, acknowledging that 
  5.15  such purchaser has read the notice.  
  5.16     Sec. 6.  Minnesota Statutes 1994, section 386.65, 
  5.17  subdivision 1, is amended to read: 
  5.18     Subdivision 1.  Applications for a license shall be made to 
  5.19  the commissioner and shall be upon a form to be prepared by the 
  5.20  commissioner and contain such information as may be required by 
  5.21  it.  Upon receiving such application, the commissioner shall fix 
  5.22  a time and place for the examination of such applicant.  Notice 
  5.23  of such examination shall be given to the applicant by certified 
  5.24  mail, who shall thereon take the examination pursuant to such 
  5.25  notice.  The examination shall be conducted by the commissioner 
  5.26  under such rules as the commissioner may prescribe, and such 
  5.27  rules shall prescribe that the applicant must show qualification 
  5.28  by experience, education or training to qualify as being Each 
  5.29  applicant must pass an examination approved for use by the 
  5.30  commissioner.  The examination must be of sufficient scope to 
  5.31  establish the applicant as capable of performing the duties of 
  5.32  an abstracter whose work will be for the use and protection of 
  5.33  the public.  If application is made by a firm or corporation, 
  5.34  one of the members or managing officials thereof shall take such 
  5.35  examination.  If the applicant successfully passes the 
  5.36  examination and complies with all the provisions of sections 
  6.1   386.61 to 386.76, the commissioner shall issue a license to the 
  6.2   applicant. 
  6.3      Sec. 7.  Minnesota Statutes 1994, section 386.66, is 
  6.4   amended to read: 
  6.5      386.66 [BOND OR ABSTRACTER'S LIABILITY INSURANCE POLICY.] 
  6.6      Before a license shall be issued, the applicant shall file 
  6.7   with the commissioner a bond or abstracter's liability insurance 
  6.8   policy to be approved by the commissioner, running to the state 
  6.9   of Minnesota in the penal sum of at least $100,000 conditioned 
  6.10  for the payment by such abstracter of any damages that may be 
  6.11  sustained by or accrue to any person by reason of or on account 
  6.12  of any error, deficiency or mistake arising wrongfully or 
  6.13  negligently in any abstract, or continuation thereof, or in any 
  6.14  certificate showing ownership of, or interest in, or liens upon 
  6.15  any lands in the state of Minnesota, whether registered or not, 
  6.16  made by and issued by such abstracter, provided however, that 
  6.17  the aggregate liability of the surety to all persons under such 
  6.18  bond shall in no event exceed the amount of such bond.  If the 
  6.19  applicant intends to engage in the business of abstracting in 
  6.20  any county having more than 200,000 inhabitants, the bond or 
  6.21  insurance policy required herein shall be in the penal sum of at 
  6.22  least $250,000.  Applicants that are title insurance companies 
  6.23  regulated by chapter 68A and licensed pursuant to sections 
  6.24  60A.02 and 60A.06, subdivision 1, clause (7), and their 
  6.25  employees or those having cash or securities on deposit with the 
  6.26  state of Minnesota in an amount equal to the said bond or 
  6.27  insurance policy shall be exempt from furnishing the bond or an 
  6.28  insurance policy herein required but shall be liable to the same 
  6.29  extent as if a bond or insurance policy has been given and 
  6.30  filed.  The bond or insurance policy required hereunder shall be 
  6.31  written by some surety or other company authorized to do 
  6.32  business in this state issuing bonds or abstracter's liability 
  6.33  insurance policies and shall be issued for a period of one or 
  6.34  more years, and renewed for one or more years at the date of 
  6.35  expiration as principal continues in business.  The aggregate 
  6.36  liability of such surety on such bond or insurance policy for 
  7.1   all damages shall, in no event, exceed the sum of said bond or 
  7.2   insurance policy. 
  7.3      Sec. 8.  Minnesota Statutes 1994, section 386.67, is 
  7.4   amended to read: 
  7.5      386.67 [LICENSED ABSTRACTER, SEAL.] 
  7.6      A licensed abstracter furnishing abstracts of title to real 
  7.7   property under the provisions hereof shall provide a seal, which 
  7.8   seal shall show the name of such licensed abstracter, and shall 
  7.9   file with the commissioner an impression of or copy made by such 
  7.10  seal and the signatures of persons authorized to sign 
  7.11  certificates on abstracts and continuations of abstracts and 
  7.12  certificates showing ownership of, or interest in, or liens upon 
  7.13  any lands in the state of Minnesota, whether registered or not, 
  7.14  issued by such licensed abstracter. 
  7.15     Sec. 9.  Minnesota Statutes 1994, section 386.68, is 
  7.16  amended to read: 
  7.17     386.68 [FEES.] 
  7.18     The following fees must be paid to the commissioner:  an 
  7.19  examination fee of $25; an initial licensing fee of $50; and a 
  7.20  license renewal fee of $40. 
  7.21     Sec. 10.  Minnesota Statutes 1994, section 386.69, is 
  7.22  amended to read: 
  7.23     386.69 [LICENSES.] 
  7.24     Licenses issued by the commissioner under the provisions 
  7.25  hereof shall recite that such bond or insurance policy has been 
  7.26  duly filed and approved, and the license shall authorize the 
  7.27  official, person, firm or corporation named in it to engage in 
  7.28  and carry on the business of an abstracter of real estate titles 
  7.29  in the county in which said official, person, firm or 
  7.30  corporation is authorized to make abstracts state of Minnesota.  
  7.31  The license shall be issued for a period as determined by the 
  7.32  commissioner, and shall thereafter be renewed upon conditions 
  7.33  prescribed by the commissioner. 
  7.34     Sec. 11.  [EFFECTIVE DATE.] 
  7.35     Sections 1 to 10 are effective the day following final 
  7.36  enactment.