SF 524

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/06/2012 02:18pm

A bill for an act
relating to commerce; prohibiting certain practices relating to the management
of certain properties; providing remedies; proposing coding for new law in
Minnesota Statutes, chapter 325E.

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

Section 1.

new text begin [325E.67] PROPERTY MANAGEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

new text begin (b) "Person" means an individual, firm, partnership, limited liability company,
corporation, or association.
new text end

new text begin (c) "Property manager" or "property management company" means a person who
engages in the business of managing real property that is owned by another person.
new text end

new text begin (d) "Owner" means a person who has any legal or equitable interest in the real
property. An owner of a common interest community, as defined in chapter 515B, means
the unit owners' association organized under section 515B.3-101.
new text end

new text begin Subd. 2. new text end

new text begin Interest of property management company in certain firms. new text end

new text begin No
property manager or property management company having an interest directly or
indirectly in a construction firm, salvage firm, or appraisal firm may hire the directly or
indirectly owned construction firm, salvage firm, or appraisal firm to perform work on a
managed property unless the interest has been disclosed in writing to the owner or owners
at least three days prior to the execution of a contract for the work. "Firm" includes a
corporation, partnership, association, or individual firm.
new text end

new text begin Subd. 3. new text end

new text begin Prohibited practices. new text end

new text begin No property manager or property management
company shall request or accept money, rebates, or anything of value from a construction
firm, salvage firm, or appraisal firm as:
new text end

new text begin (1) an inducement to refer business or clients to the firm;
new text end

new text begin (2) a condition for awarding a contract to the firm;
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new text begin (3) part of a fee specified in a contract; or
new text end

new text begin (4) fee splitting for services rendered, unless the other person is also a licensed
contractor.
new text end

new text begin Subd. 4. new text end

new text begin Remedies. new text end

new text begin If a property manager or property management company
violates this section, an owner may bring an action against the property manager or
property management company in a court of competent jurisdiction for damages sustained
by the owner as a consequence of the property manager's or property management
company's violation, together with the actual costs of the action, including reasonable
attorney fees. The remedies in this section are in addition to any other remedies permitted
by law.
new text end