SF 1301

as introduced - 89th Legislature (2015 - 2016) Posted on 08/21/2015 10:03am

A bill for an act
relating to commerce; prohibiting certain practices relating to property
management; 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) "Owner" means a person who has any legal or equitable interest in the real
property.
new text end

new text begin (c) "Person" means an individual, firm, partnership, limited liability company,
corporation, or association.
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new text begin (d) "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 Subd. 2. new text end

new text begin Prohibition of ownership of certain firms. new text end

new text begin No property manager
or property management company shall have an interest directly or indirectly in a
construction firm, salvage firm, or appraisal firm. 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 Unless consented to in writing by the owner or
owners, 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 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