3rd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to commerce; regulating real estate brokers 1.3 and salespersons; making various changes in real 1.4 property law; recodifying the laws and rules 1.5 regulating these licensees; making technical and 1.6 conforming changes; amending Minnesota Statutes 2002, 1.7 sections 58.13, subdivision 1; 58.16, subdivisions 2, 1.8 4; 82.17, subdivision 4, by adding subdivisions; 1.9 82.19, subdivisions 3, 5, by adding subdivisions; 1.10 82.195; 82.196; 82.197; 82.20, subdivisions 3, 4, 8, 1.11 by adding subdivisions; 82.21, by adding subdivisions; 1.12 82.22, subdivisions 6, 8, 12, 13, by adding 1.13 subdivisions; 82.24, subdivisions 3, 5, by adding 1.14 subdivisions; 82.27, by adding a subdivision; 513.55, 1.15 subdivision 1; 513.56, by adding a subdivision; 1.16 515B.4-106; 515B.4-108; 559.21, subdivision 4; 1.17 proposing coding for new law in Minnesota Statutes, 1.18 chapters 82; 325F; 559; repealing Minnesota Statutes 1.19 2002, sections 58.02, subdivision 24; 82.22, 1.20 subdivision 9; Minnesota Rules, parts 2800.0100; 1.21 2800.0200; 2800.0300; 2800.1100; 2800.1200; 2800.1300; 1.22 2800.1400; 2800.1500; 2800.1600; 2800.1700; 2800.1750; 1.23 2800.1751; 2800.1800; 2800.1900; 2800.2000; 2800.2100; 1.24 2800.2150; 2805.0100; 2805.0200; 2805.0300; 2805.0400; 1.25 2805.0500; 2805.0600; 2805.0700; 2805.0800; 2805.0900; 1.26 2805.1000; 2805.1100; 2805.1300; 2805.1400; 2805.1500; 1.27 2805.1600; 2805.1700; 2805.1800; 2805.1900; 2805.2000. 1.28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.29 ARTICLE 1 1.30 CHANGES IN REAL ESTATE LAW 1.31 Section 1. Minnesota Statutes 2002, section 58.13, 1.32 subdivision 1, is amended to read: 1.33 Subdivision 1. [GENERALLY.] No person acting as a 1.34 residential mortgage originator or servicer, including a person 1.35 required to be licensed under this chapter, and no person exempt 1.36 from the licensing requirements of this chapter under section 2.1 58.04, shall: 2.2 (1) fail to maintain a trust account to hold trust funds 2.3 received in connection with a residential mortgage loan; 2.4 (2) fail to deposit all trust funds into a trust account 2.5 within three business days of receipt; commingle trust funds 2.6 with funds belonging to the licensee or exempt person; or use 2.7 trust account funds for any purpose other than that for which 2.8 they are received; 2.9 (3) unreasonably delay the processing of a residential 2.10 mortgage loan application, or the closing of a residential 2.11 mortgage loan. For purposes of this clause, evidence of 2.12 unreasonable delay includes but is not limited to those factors 2.13 identified in section 47.206, subdivision 7, clause (d); 2.14 (4) fail to disburse funds according to its contractual or 2.15 statutory obligations; 2.16 (5) fail to perform in conformance with its written 2.17 agreements with borrowers, investors, other licensees, or exempt 2.18 persons; 2.19 (6) charge a fee for a product or service where the product 2.20 or service is not actually provided, or misrepresent the amount 2.21 charged by or paid to a third party for a product or service; 2.22 (7) fail to comply with sections 345.31 to 345.60, the 2.23 Minnesota unclaimed property law; 2.24 (8) violate any provision of any other applicable state or 2.25 federal law regulating residential mortgage loans including, 2.26 without limitation, sections 47.20 to 47.208; 2.27 (9) make or cause to be made, directly or indirectly, any 2.28 false, deceptive, or misleading statement or representation in 2.29 connection with a residential loan transaction including, 2.30 without limitation, a false, deceptive, or misleading statement 2.31 or representation regarding the borrower's ability to qualify 2.32 for any mortgage product; 2.33 (10) conduct residential mortgage loan business under any 2.34 name other than that under which the license or certificate of 2.35 exemption was issued; 2.36 (11) compensate, whether directly or indirectly, coerce or 3.1 intimidate an appraiser for the purpose of influencing the 3.2 independent judgment of the appraiser with respect to the value 3.3 of real estate that is to be covered by a residential mortgage 3.4 or is being offered as security according to an application for 3.5 a residential mortgage loan; 3.6 (12) issue any document indicating conditional 3.7 qualification or conditional approval for a residential mortgage 3.8 loan, unless the document also clearly indicates that final 3.9 qualification or approval is not guaranteed, and may be subject 3.10 to additional review; 3.11 (13) make or assist in making any residential mortgage loan 3.12 with the intent that the loan will not be repaid and that the 3.13 residential mortgage originator will obtain title to the 3.14 property through foreclosure; 3.15 (14) provide or offer to provide for a borrower, any 3.16 brokering or lending services under an arrangement with a person 3.17 other than a licensee or exempt person, provided that a person 3.18 may rely upon a written representation by the residential 3.19 mortgage originator that it is in compliance with the licensing 3.20 requirements of this chapter; 3.21 (15) claim to represent a licensee or exempt person, unless 3.22 the person is an employee of the licensee or exempt person or 3.23 unless the person has entered into a written agency agreement 3.24 with the licensee or exempt person; 3.25 (16) fail to comply with the record-keeping and 3.26 notification requirements identified in section 58.14 or fail to 3.27 abide by the affirmations made on the application for licensure; 3.28 (17) represent that the licensee or exempt person is acting 3.29 as the borrower's agent after providing the nonagency disclosure 3.30 required by section 58.15, unless the disclosure is retracted 3.31 and the licensee or exempt person complies with all of the 3.32 requirements of section 58.16; 3.33 (18) make, provide, or arrange for a residential mortgage 3.34 loan that is of a lower investment grade if the borrower's 3.35 credit score or, if the originator does not utilize credit 3.36 scoring or if a credit score is unavailable, then comparable 4.1 underwriting data, indicates that the borrower may qualify for a 4.2 residential mortgage loan, available from or through the 4.3 originator, that is of a higher investment grade, unless the 4.4 borrower is informed that the borrower may qualify for a higher 4.5 investment grade loan with a lower interest rate and/or lower 4.6 discount points, and consents in writing to receipt of the lower 4.7 investment grade loan. 4.8 For purposes of this section, "investment grade" refers to 4.9 a system of categorizing residential mortgage loans in which the 4.10 loans are: (i) commonly referred to as "prime" or "subprime"; 4.11 (ii) commonly designated by an alphabetical character with "A" 4.12 being the highest investment grade; and (iii) are distinguished 4.13 by interest rate or discount points or both charged to the 4.14 borrower, which vary according to the degree of perceived risk 4.15 of default based on factors such as the borrower's credit, 4.16 including credit score and credit patterns, income and 4.17 employment history, debt ratio, loan-to-value ratio, and prior 4.18 bankruptcy or foreclosure; 4.19 (19) make, publish, disseminate, circulate, place before 4.20 the public, or cause to be made, directly or indirectly, any 4.21 advertisement or marketing materials of any type, or any 4.22 statement or representation relating to the business of 4.23 residential mortgage loans that is false, deceptive, or 4.24 misleading; 4.25 (20) advertise loan types or terms that are not available 4.26 from or through the licensee or exempt person on the date 4.27 advertised, or on the date specified in the advertisement. For 4.28 purposes of this clause, advertisement includes, but is not 4.29 limited to, a list of sample mortgage terms, including interest 4.30 rates, discount points, and closing costs provided by licensees 4.31 or exempt persons to a print or electronic medium that presents 4.32 the information to the public;and4.33 (21) use or employ phrases, pictures, return addresses, 4.34 geographic designations, or other means that create the 4.35 impression, directly or indirectly, that a licensee or other 4.36 person is a governmental agency, or is associated with, 5.1 sponsored by, or in any manner connected to, related to, or 5.2 endorsed by a governmental agency, if that is not the case; or 5.3 (22) violate section 82.176, relating to table funding. 5.4 Sec. 2. Minnesota Statutes 2002, section 58.16, 5.5 subdivision 2, is amended to read: 5.6 Subd. 2. [CONTRACT PROVISIONS.] (a) A residential mortgage 5.7 originator who engages in the activities described in 5.8 subdivision 1 shall enter into a written contract with each 5.9 borrower and shall provide a copy of the written contract to 5.10 each borrower at or before the time of receipt of any fee or 5.11 valuable consideration paid for mortgage origination services. 5.12 The written contract must: 5.13 (1) specifically describe the services to be provided by 5.14 the residential mortgage originator and if the originator 5.15 collects an advance fee, the dates by which the services will be 5.16 performed; 5.17 (2) specifically identify whether the residential mortgage 5.18 originator may receive compensation from sources other than the 5.19 borrower in connection with the loan transaction; 5.20 (3) state the total amount of commission or compensation 5.21 that the borrower agrees to pay for the residential mortgage 5.22 originator's services, or the basis on which the compensation 5.23 will be computed; 5.24 (4) state the maximum rate of interest to be charged on any 5.25 residential mortgage loan obtained; 5.26 (5) contain a statement that notifies the borrower of the 5.27 right to cancel the contract according to subdivision 3 and 5.28 disclose the cancellation rights and procedures provided in 5.29 subdivision 3; and 5.30 (6) disclose, with respect to the 12-month period ending 5.31 ten business days before the date of the contract in question, 5.32 the percentage of the mortgage originator's customers for whom 5.33 loans have actually been funded as a result of the residential 5.34 mortgage originator's services. 5.35 (b) If an advance fee is solicited or received the contract 5.36 must also: 6.1 (1) identify the trust account into which the fees or 6.2 consideration will be deposited; 6.3 (2) set forth the circumstances under which the residential 6.4 mortgage originator will be entitled to disbursement from the 6.5 trust account; and 6.6 (3) set forth the circumstances under which the borrower 6.7 will be entitled to a refund of all or part of the fee. 6.8 Sec. 3. Minnesota Statutes 2002, section 58.16, 6.9 subdivision 4, is amended to read: 6.10 Subd. 4. [TRUST ACCOUNT.] The residential mortgage 6.11 originator shall deposit in a trust account within three 6.12 business days all fees received before the time a loan is 6.13 actually funded. The trust account must be in a financial 6.14 institution located within the state of Minnesota and must be 6.15 controlled by an unaffiliated accountant, attorney, or bank 6.16 officer or employee. 6.17 Sec. 4. [325F.691] [UNREASONABLE DELAY IN MORTGAGE LOAN 6.18 CLOSING.] 6.19 Subdivision 1. [PROHIBITED CONDUCT.] (a) A lender, as 6.20 defined in section 47.206, who causes unreasonable delay in 6.21 processing a loan application beyond the expiration date of an 6.22 interest rate or discount point agreement is liable to the 6.23 borrower for a penalty in an amount not to exceed the borrower's 6.24 actual out-of-pocket damages, including the present value of the 6.25 increased interest costs over the normal life of the loan, or 6.26 specific performance of the agreement. This paragraph applies 6.27 to an agreement entered into after July 1, 2004. 6.28 (b) For purposes of this section, evidence of unreasonable 6.29 delay includes, but is not limited to: 6.30 (1) failure of the lender to return telephone calls or 6.31 otherwise respond to the borrower's inquiries concerning the 6.32 status of the loan; 6.33 (2) the addition by the lender of new requirements for 6.34 processing or approving the loan that were not disclosed to the 6.35 borrower under section 47.206, subdivision 2, clause (3), unless 6.36 the requirements result from governmental agency or secondary 7.1 mortgage market changes, other than changes in interest rates, 7.2 that occur after the date of the agreement; or 7.3 (3) failure by the lender to take actions necessary to 7.4 process or approve the loan within a reasonable period of time, 7.5 if the borrower provided information requested by the lender in 7.6 a timely manner. 7.7 Subd. 2. [ADDITIONAL PENALTY.] In addition to the remedies 7.8 in subdivision 1 of this section, a lender is liable to the 7.9 borrower for $500 for each unreasonable delay in processing a 7.10 loan application which causes an interest rate or discount point 7.11 agreement to expire before closing. 7.12 Sec. 5. Minnesota Statutes 2002, section 513.55, 7.13 subdivision 1, is amended to read: 7.14 Subdivision 1. [CONTENTS.] (a) Before signing an agreement 7.15 to sell or transfer residential real property, the seller shall 7.16 make a written disclosure to the prospective buyer. The 7.17 disclosure must include all material factspertaining to adverse7.18physical conditions in the propertyof which the seller is aware 7.19 that could adversely and significantly affect: 7.20 (1) an ordinary buyer's use and enjoyment of the property; 7.21 or 7.22 (2) any intended use of the property of which the seller is 7.23 aware. 7.24 (b) The disclosure must be made in good faith and based 7.25 upon the best of the seller's knowledge at the time of the 7.26 disclosure. 7.27 Sec. 6. Minnesota Statutes 2002, section 513.56, is 7.28 amended by adding a subdivision to read: 7.29 Subd. 4. [EFFECT ON COMMON LAW.] The limitation on 7.30 disclosure in subdivisions 1 and 2 modifies any common law 7.31 duties with respect to disclosure of material facts. 7.32 Sec. 7. Minnesota Statutes 2002, section 515B.4-106, is 7.33 amended to read: 7.34 515B.4-106 [PURCHASER'S RIGHT TO CANCEL.] 7.35 (a) A person required to deliver a disclosure statement 7.36 pursuant to section 515B.4-101(b) shall provide at least one of 8.1 the purchasers of the unit with a copy of the disclosure 8.2 statement and all amendments thereto before conveyance of the 8.3 unit. If a purchaser is not given a disclosure statement more 8.4 thantenfive days before execution of the purchase agreement, 8.5 the purchaser may, before conveyance, cancel the purchase 8.6 agreement withintenfive days after first receiving the 8.7 disclosure statement. If a purchaser is given the disclosure 8.8 statement more thantenfive days before execution of the 8.9 purchase agreement, the purchaser may not cancel the purchase 8.10 agreement pursuant to this section. Except as expressly 8.11 provided in this chapter, theten-dayfive-day rescission period 8.12 cannot be waived. 8.13 (b) If an amendment to the disclosure statement materially 8.14 and adversely affects a purchaser, then the purchaser shall have 8.15tenfive days after delivery of the amendment to cancel the 8.16 purchase agreement in accordance with this section. 8.17 (c) If a purchaser elects to cancel a purchase agreement 8.18 pursuant to this section, the purchaser may do so by giving 8.19 notice thereof pursuant to section 515B.1-115. Cancellation is 8.20 without penalty, and all payments made by the purchaser before 8.21 cancellation shall be refunded promptly. Notwithstanding 8.22 anything in this section to the contrary, the purchaser's 8.23 cancellation rights under this section terminate upon the 8.24 purchaser's acceptance of a conveyance of the unit. 8.25 (d) If a declarant obligated to deliver a disclosure 8.26 statement fails to deliver to the purchaser a disclosure 8.27 statement which substantially complies with this chapter, the 8.28 declarant shall be liable to the purchaser in the amount of 8.29 $1,000, in addition to any damages or other amounts recoverable 8.30 under this chapter or otherwise. Any action brought under this 8.31 subsection shall be commenced within the time period specified 8.32 in section 515B.4-115, subsection (a). 8.33 Sec. 8. Minnesota Statutes 2002, section 515B.4-108, is 8.34 amended to read: 8.35 515B.4-108 [PURCHASER'S RIGHT TO CANCEL RESALE.] 8.36 (a) Unless a purchaser is given the information required to 9.1 be delivered by section 515B.4-107, by a delivery method 9.2 described in that section, more thantenfive days prior to the 9.3 execution of the purchase agreement for the unit the purchaser 9.4 may, prior to the conveyance, cancel the purchase agreement 9.5 withintenfive days after receiving the information. Except as 9.6 expressly provided in this chapter, theten-dayfive-day 9.7 rescission period cannot be waived. 9.8 (b) A purchaser who elects to cancel a purchase agreement 9.9 pursuant to subsection (a), may do so by hand delivering notice 9.10 thereof or mailing notice by postage prepaid United States mail 9.11 to the seller or the agent. Cancellation is without penalty and 9.12 all payments made by the purchaser shall be refunded promptly. 9.13 Sec. 9. Minnesota Statutes 2002, section 559.21, 9.14 subdivision 4, is amended to read: 9.15 Subd. 4. [LAW PREVAILS OVER CONTRACT; PROCEDURE; 9.16 CONDITIONS.] (a) The notice required by this section must be 9.17 given notwithstanding any provisions in the contract to the 9.18 contrary, except that earnest money contracts, purchase 9.19 agreements, and exercised options that are subject to this 9.20 section may, unless by their terms they provide for a longer 9.21 termination period, be terminated on 30 days' notice, or may be 9.22 canceled under section 559.217. The notice must be served 9.23 within the state in the same manner as a summons in the district 9.24 court, and outside of the state, in the same manner, and without 9.25 securing any sheriff's return of not found, making any 9.26 preliminary affidavit, mailing a copy of the notice or doing any 9.27 other preliminary act or thing whatsoever. Service of the 9.28 notice outside of the state may be proved by the affidavit of 9.29 the person making the same, made before an authorized officer 9.30 having a seal, and within the state by such an affidavit or by 9.31 the return of the sheriff of any county therein. 9.32 (b) If a person to be served is a resident individual who 9.33 has departed from the state, or cannot be found in the state; or 9.34 is a nonresident individual or a foreign corporation, 9.35 partnership, or association, service may be made by publication 9.36 as provided in this paragraph. Three weeks' published notice 10.1 has the same effect as personal service of the notice. The 10.2 published notice must comply with subdivision 3 and state (1) 10.3 that the person to be served is allowed 90 days after the first 10.4 date of publication of the notice to comply with the conditions 10.5 of the contract, and (2) that the contract will terminate 90 10.6 days after the first date of publication of the notice, unless 10.7 before the termination date the purchaser complies with the 10.8 notice. If the real estate described in the contract is 10.9 actually occupied, then, in addition to publication, a person in 10.10 possession must be personally served, in like manner as the 10.11 service of a summons in a civil action in state district court, 10.12 within 30 days after the first date of publication of the 10.13 notice. If an address of a person to be served is known, then 10.14 within 30 days after the first date of publication of the notice 10.15 a copy of the notice must be mailed to the person's last known 10.16 address by first class mail, postage prepaid. 10.17 (c) The contract is reinstated if, within the time 10.18 mentioned, the person served: 10.19 (1) complies with the conditions in default; 10.20 (2) if subdivision 1d or 2a applies, makes all payments due 10.21 and owing to the seller under the contract through the date that 10.22 payment is made; 10.23 (3) pays the costs of service as provided in subdivision 10.24 1b, 1c, 1d, or 2a; 10.25 (4) if subdivision 2a applies, pays two percent of the 10.26 amount in default, not including the final balloon payment, any 10.27 taxes, assessments, mortgages, or prior contracts that are 10.28 assumed by the purchaser; and 10.29 (5) pays attorneys' fees as provided in subdivision 1b, 1c, 10.30 1d, or 2a. 10.31 (d) The contract is terminated if the provisions of 10.32 paragraph (c) are not met. 10.33 (e) In the event that the notice was not signed by an 10.34 attorney for the seller and the seller is not present in the 10.35 state, or cannot be found in the state, then compliance with the 10.36 conditions specified in the notice may be made by paying to the 11.1 court administrator of the district court in the county wherein 11.2 the real estate or any part thereof is situated any money due 11.3 and filing proof of compliance with other defaults specified, 11.4 and the court administrator of the district court shall be 11.5 deemed the agent of the seller for such purposes. A copy of the 11.6 notice with proof of service thereof, and the affidavit of the 11.7 seller, the seller's agent or attorney, showing that the 11.8 purchaser has not complied with the terms of the notice, may be 11.9 recorded with the county recorder, and is prima facie evidence 11.10 of the facts stated in it; but this section in no case applies 11.11 to contracts for the sale or conveyance of lands situated in 11.12 another state or in a foreign country. If the notice is served 11.13 by publication, the affidavit must state that the affiant 11.14 believes that the party to be served is not a resident of the 11.15 state, or cannot be found in the state, and either that the 11.16 affiant has mailed a copy of the notice by first class mail, 11.17 postage prepaid, to the party's last known address, or that such 11.18 address is not known to the affiant. 11.19 Sec. 10. [559.217] [DECLARATORY CANCELLATION OF PURCHASE 11.20 AGREEMENT.] 11.21 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 11.22 section, the terms defined in this subdivision have the meanings 11.23 given. 11.24 (b) "Purchase agreement" means an earnest money contract, 11.25 purchase agreement, or exercised option that could be canceled 11.26 under section 559.21, subdivision 4, paragraph (a). 11.27 (c) "Residential real property" means real property, 11.28 including vacant land, occupied by, or intended to be occupied 11.29 by, one to four families as their residence. 11.30 Subd. 2. [USE OF THIS SECTION.] Either the purchaser or 11.31 the seller may cancel a purchase agreement for residential real 11.32 property under this section. If either a seller or purchaser 11.33 initiates a cancellation proceeding under this section and 11.34 before completion of the proceeding the other party initiates a 11.35 cancellation proceeding under this section, whether under 11.36 subdivision 3 or 4, the purchase agreement is deemed canceled as 12.1 of the date the second cancellation notice is served upon the 12.2 other party under this section. Either party can later pursue 12.3 legal remedies at law to recover the earnest money. A court 12.4 shall make a determination of which party is entitled to the 12.5 earnest money without regard to which party first initiated the 12.6 cancellation proceeding and may consider the terms of the 12.7 canceled purchase agreement in making its determination. 12.8 Subd. 3. [CANCELLATION WITH RIGHT TO CURE.] (a) If a 12.9 default occurs or an unfulfilled condition exists after the date 12.10 specified for fulfillment in the terms of a purchase agreement 12.11 for the conveyance of residential real property, which does not 12.12 by its terms cancel the purchase agreement, the purchaser or the 12.13 seller may initiate a cancellation by serving upon the other 12.14 party to the purchase agreement and any third party that is 12.15 holding earnest money under the purchase agreement a notice: 12.16 (1) specifying the residential real property that is the 12.17 subject of the purchase agreement, including the legal 12.18 description; 12.19 (2) specifying the purchase agreement by date and names of 12.20 parties, and the unfulfilled condition or default; and 12.21 (3) stating that the purchase agreement will be canceled 15 12.22 days after service of the notice unless prior to the 12.23 cancellation date the party upon whom the notice is served 12.24 complies with the conditions in default and completes the 12.25 unfulfilled conditions, including, if applicable, completion of 12.26 the purchase or sale of the residential real property according 12.27 to the terms of the purchase agreement. 12.28 (b) The notice must be served in the manner provided in 12.29 section 559.21, subdivision 4, paragraphs (a) and (b). 12.30 (c) The purchase agreement is canceled unless, within 15 12.31 days after the service of the notice, the party upon whom the 12.32 notice was served fully complies with the conditions in default 12.33 and completes the unfulfilled conditions or secures from a court 12.34 an order suspending the cancellation. 12.35 Subd. 4. [DECLARATORY CANCELLATION.] (a) If a default 12.36 occurs or an unfulfilled condition exists after the date 13.1 specified for fulfillment in the terms of a purchase agreement 13.2 for the conveyance of residential real property, which by the 13.3 terms of the purchase agreement cancels the purchase agreement, 13.4 either the purchaser or the seller may confirm the cancellation 13.5 by serving upon the other party and any third party that is 13.6 holding earnest money under the purchase agreement a notice: 13.7 (1) specifying the residential real property that is the 13.8 subject of the purchase agreement, including the legal 13.9 description; 13.10 (2) specifying the purchase agreement by date and names of 13.11 parties, and the unfulfilled condition or default; and 13.12 (3) stating that the purchase agreement has been canceled. 13.13 (b) The notice must be served in the manner provided in 13.14 section 559.21, subdivision 4, paragraphs (a) and (b). 13.15 (c) The cancellation of the purchase agreement is complete, 13.16 unless, within 15 days after the service of the notice, the 13.17 party upon whom the notice was served secures from a court an 13.18 order suspending the cancellation. 13.19 Subd. 5. [FORM OF NOTICE OF CANCELLATION.] (a) For 13.20 purposes of subdivision 3, the term "notice" means a writing 13.21 stating the information required in subdivision 3, paragraph 13.22 (a), stating the name, address, and telephone number of that 13.23 party serving the notice or of an attorney authorized by such 13.24 party to serve the notice, and including the following 13.25 information in 12-point or larger underlined uppercase type, or 13.26 8-point type if published, or in large legible handwritten 13.27 letters: 13.28 "THIS NOTICE IS TO INFORM YOU THAT BY THIS NOTICE THE 13.29 (SELLER) (PURCHASER) (STRIKE ONE) HAS BEGUN PROCEEDINGS UNDER 13.30 MINNESOTA STATUTES, SECTION 559.217, TO CANCEL YOUR PURCHASE 13.31 AGREEMENT FOR THE (PURCHASE) (SALE) (STRIKE ONE) OF THE ABOVE 13.32 PROPERTY FOR THE REASONS SPECIFIED IN THIS NOTICE. THE PURCHASE 13.33 AGREEMENT WILL BE CANCELED ... DAYS AFTER (SERVICE OF THIS 13.34 NOTICE UPON YOU) (THE FIRST DAY OF PUBLICATION OF THIS NOTICE) 13.35 (STRIKE ONE) UNLESS BEFORE THEN: 13.36 (A) YOU HAVE FULLY COMPLIED WITH ALL OF YOUR OBLIGATIONS 14.1 UNDER THE PURCHASE AGREEMENT THAT WERE REQUIRED TO BE PERFORMED 14.2 AS OF THE DATE OF SERVICE OF THIS NOTICE, INCLUDING WITHOUT 14.3 LIMITATION, THE ITEMS OF DEFAULT SPECIFIED IN THIS NOTICE; OR 14.4 (B) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 14.5 TERMINATION OF THE PURCHASE AGREEMENT BE SUSPENDED UNTIL YOUR 14.6 CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 14.7 SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 14.8 GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES. 14.9 IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 14.10 WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR PURCHASE 14.11 AGREEMENT WILL BE CANCELED AT THE END OF THE PERIOD (AND YOU 14.12 WILL LOSE ALL EARNEST MONEY YOU HAVE PAID ON THE PURCHASE 14.13 AGREEMENT) (STRIKE IF NOT APPLICABLE); AND YOU MAY LOSE YOUR 14.14 RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE. IF 14.15 YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT AN ATTORNEY 14.16 IMMEDIATELY." 14.17 (b) For purposes of subdivision 4, the term "notice" means 14.18 a writing stating the information required in subdivision 4, 14.19 paragraph (a), stating the name, address, and telephone number 14.20 of the party serving the notice or of an attorney authorized by 14.21 that party to serve the notice, and including the following 14.22 information in 12-point or larger underlined uppercase type, or 14.23 8-point type if published, or in large legible handwritten 14.24 letters: 14.25 "THIS NOTICE IS PURSUANT TO MINNESOTA STATUTES, SECTION 14.26 559.217, TO INFORM YOU THAT YOUR PURCHASE AGREEMENT FOR THE 14.27 (PURCHASE) (SALE) (STRIKE ONE) OF THE ABOVE PROPERTY HAS BEEN 14.28 CANCELED FOR THE REASONS SPECIFIED IN THIS NOTICE. THE 14.29 CANCELLATION WILL BE CONFIRMED ... DAYS AFTER (SERVICE OF THIS 14.30 NOTICE UPON YOU) (THE FIRST DAY OF PUBLICATION OF THIS NOTICE) 14.31 (STRIKE ONE) UNLESS BEFORE THEN YOU SECURE FROM A DISTRICT COURT 14.32 AN ORDER THAT THE CONFIRMATION OF CANCELLATION OF THE PURCHASE 14.33 AGREEMENT BE SUSPENDED UNTIL YOUR CLAIMS OR DEFENSES ARE FINALLY 14.34 DISPOSED OF BY TRIAL, HEARING, OR SETTLEMENT. YOUR ACTION MUST 14.35 SPECIFICALLY STATE THOSE FACTS AND GROUNDS THAT DEMONSTRATE YOUR 14.36 CLAIMS OR DEFENSES. 15.1 IF YOU DO NOT OBTAIN SUCH A COURT ORDER WITHIN THE TIME 15.2 PERIOD SPECIFIED IN THIS NOTICE, THE CONFIRMATION OF 15.3 CANCELLATION OF YOUR PURCHASE AGREEMENT WILL BE FINAL AT THE END 15.4 OF THE PERIOD (AND YOU WILL LOSE ALL EARNEST MONEY YOU HAVE PAID 15.5 ON THE PURCHASE AGREEMENT) (STRIKE IF NOT APPLICABLE); AND YOU 15.6 MAY LOSE YOUR RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU 15.7 MIGHT HAVE. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, 15.8 CONTACT AN ATTORNEY IMMEDIATELY." 15.9 Subd. 6. [ATTORNEY FEES, COURT FEES, AND COSTS OF 15.10 SERVICE.] If the party upon whom the notice is served commences 15.11 a proceeding to obtain a court order to suspend the cancellation 15.12 of a purchase agreement under this section, the court shall 15.13 award court filing fees, attorney fees, and costs of service 15.14 actually expended to the prevailing party in an amount not to 15.15 exceed $3,000. 15.16 Subd. 7. [AFFIDAVIT OF CANCELLATION.] (a) After a 15.17 cancellation under subdivision 3 or a confirmation of 15.18 cancellation under subdivision 4, the purchase agreement is void 15.19 and of no further force or effect, and, except as provided in 15.20 subdivision 2, any earnest money held under the purchase 15.21 agreement must be distributed to, and become the sole property 15.22 of, the party completing the cancellation of the purchase 15.23 agreement. 15.24 (b) When a cancellation under this section has been 15.25 completed, the party who served the notice, or that party's 15.26 attorney, may execute an affidavit stating that the party caused 15.27 a notice of cancellation to be served upon the other party, that 15.28 the other party neither complied with the actions required in 15.29 the notice, if applicable, nor obtained a court order suspending 15.30 the cancellation, and that the property is residential real 15.31 property. 15.32 (c) A copy of the affidavit of cancellation, when attached 15.33 to a copy of the notice, is prima facie evidence of the facts 15.34 therein stated. 15.35 (d) Except as provided in subdivision 2, the affidavit of 15.36 cancellation, when delivered to a person holding earnest money 16.1 under the purchase agreement, is a sufficient basis for that 16.2 person to release the earnest money to the party initiating the 16.3 cancellation. 16.4 (e) If either a seller or purchaser commences a 16.5 cancellation proceeding under this section and before completion 16.6 of the first proceeding the other party initiates a cancellation 16.7 proceeding under this section, either party or that party's 16.8 attorney may execute an affidavit stating that both parties 16.9 caused the notice of cancellation to be served upon the other 16.10 party and further specifying the date the second notice of 16.11 cancellation was served upon the other party. A copy of the 16.12 affidavit of cancellation, when attached to copies of both 16.13 notices of cancellation, is prima facie evidence of the 16.14 cancellation of the purchase agreement and of the effective date 16.15 of the cancellation of the purchase agreement. 16.16 Subd. 8. [ATTORNEY AS AGENT FOR SERVICE.] Any attorney 16.17 authorized to serve the notice of cancellation by a party 16.18 initiating a cancellation under this section is designated as 16.19 the attorney who may receive service as agent for the party 16.20 initiating the cancellation of all summons, complaints, orders, 16.21 and motions made in connection with an action by the party upon 16.22 whom the notice is served to restrain the cancellation. Service 16.23 in the action may be made upon the party initiating the 16.24 cancellation by mailing a copy of the process to such party or 16.25 to such party's attorney, by first class mail, postage prepaid, 16.26 to the address stated in the notice. 16.27 Sec. 11. [REPEALER.] 16.28 Minnesota Statutes 2002, section 58.02, subdivision 24, is 16.29 repealed. 16.30 Sec. 12. [EFFECTIVE DATE.] 16.31 Sections 1 to 11 are effective August 1, 2004. Section 10 16.32 applies to purchase agreements entered into on or after that 16.33 date. 16.34 ARTICLE 2 16.35 RECODIFICATION 16.36 Section 1. Minnesota Statutes 2002, section 82.17, 17.1 subdivision 4, is amended to read: 17.2 Subd. 4. [REAL ESTATE BROKER; BROKER.] "Real estate 17.3 broker" or "broker" means any person who: 17.4 (a) for another and for commission, fee, or other valuable 17.5 consideration or with the intention or expectation of receiving 17.6 the same directly or indirectly lists, sells, exchanges, buys or 17.7 rents, manages, or offers or attempts to negotiate a sale, 17.8 option, exchange, purchase or rental of an interest or estate in 17.9 real estate, or advertises or holds out as engaged in these 17.10 activities; 17.11 (b) for another and for commission, fee, or other valuable 17.12 consideration or with the intention or expectation of receiving 17.13 the same directly or indirectly negotiates or offers or attempts 17.14 to negotiate a loan, secured or to be secured by a mortgage or 17.15 other encumbrance on real estate, which is not a residential 17.16 mortgage loan as defined by section 58.02, subdivision 18; 17.17 (c) "real estate broker" or "broker" as set forth in clause 17.18 (b) shall not apply to the originating, making, processing, 17.19 selling, or servicing of a loan in connection with the broker's 17.20 ordinary business activities by a mortgagee, lender, or servicer 17.21 approved or certified by the secretary of housing and urban 17.22 development, or approved or certified by the administrator of 17.23 veterans affairs, or approved or certified by the administrator 17.24 of the Farmers Home Administration, or approved or certified by 17.25 the federal Home Loan Mortgage Corporation, or approved or 17.26 certified by the federal National Mortgage Association; 17.27 (d) for another and for commission, fee, or other valuable 17.28 consideration or with the intention or expectation of receiving 17.29 the same directly or indirectly lists, sells, exchanges, buys, 17.30 rents, manages, offers or attempts to negotiate a sale, option, 17.31 exchange, purchase or rental of any business opportunity or 17.32 business, or its good will, inventory, or fixtures, or any 17.33 interest therein; 17.34(d)(e) for another and for commission, fee, or other 17.35 valuable consideration or with the intention or expectation of 17.36 receiving the same directly or indirectly offers, sells or 18.1 attempts to negotiate the sale of property that is subject to 18.2 the registration requirements of chapter 83, concerning 18.3 subdivided land; 18.4(e)(f) for another and for commission, fee, or other 18.5 valuable consideration or with the intention or expectation of 18.6 receiving the same, promotes the sale of real estate by 18.7 advertising it in a publication issued primarily for this 18.8 purpose, if the person: 18.9 (1) negotiates on behalf of any party to a transaction; 18.10 (2) disseminates any information regarding the property to 18.11 any party or potential party to a transaction subsequent to the 18.12 publication of the advertisement, except that in response to an 18.13 initial inquiry from a potential purchaser, the person may 18.14 forward additional written information regarding the property 18.15 which has been prepared prior to the publication by the seller 18.16 or broker or a representative of either; 18.17 (3) counsels, advises, or offers suggestions to the seller 18.18 or a representative of the seller with regard to the marketing, 18.19 offer, sale, or lease of the real estate, whether prior to or 18.20 subsequent to the publication of the advertisement; 18.21 (4) counsels, advises, or offers suggestions to a potential 18.22 buyer or a representative of the seller with regard to the 18.23 purchase or rental of any advertised real estate; or 18.24 (5) engages in any other activity otherwise subject to 18.25 licensure under this chapter; 18.26(f)(g) engages wholly or in part in the business of 18.27 selling real estate to the extent that a pattern of real estate 18.28 sales is established, whether or not the real estate is owned by 18.29 the person. A person shall be presumed to be engaged in the 18.30 business of selling real estate if the person engages as 18.31 principal in five or more transactions during any 12-month 18.32 period, unless the person is represented by a licensed real 18.33 estate broker or salesperson. 18.34 Sec. 2. Minnesota Statutes 2002, section 82.17, is amended 18.35 by adding a subdivision to read: 18.36 Subd. 13. [BUSINESS OF FINANCIAL PLANNING.] "Business of 19.1 financial planning" means providing, or offering to provide, 19.2 financial planning services or financial counseling or advice, 19.3 on a group or individual basis. A person who, on 19.4 advertisements, cards, signs, circulars, letterheads, or in any 19.5 other manner, indicates that the person is a "financial planner," 19.6 "financial counselor," "financial adviser," "investment 19.7 counselor," "estate planner," "investment adviser," "financial 19.8 consultant," or any other similar designation or title or 19.9 combination thereof, is considered to be representing himself or 19.10 herself to be engaged in the business of financial planning. 19.11 Sec. 3. Minnesota Statutes 2002, section 82.17, is amended 19.12 by adding a subdivision to read: 19.13 Subd. 14. [ELECTRONIC AGENT.] "Electronic agent" means a 19.14 computer program or an electronic or other automated means used 19.15 independently to initiate an action or respond to electronic 19.16 records or performances, in whole or in part, without review or 19.17 action by an individual. 19.18 Sec. 4. Minnesota Statutes 2002, section 82.17, is amended 19.19 by adding a subdivision to read: 19.20 Subd. 15. [ELECTRONIC RECORD.] "Electronic record" means a 19.21 record created, generated, sent, communicated, received, or 19.22 stored by electronic means. 19.23 Sec. 5. Minnesota Statutes 2002, section 82.17, is amended 19.24 by adding a subdivision to read: 19.25 Subd. 16. [ELECTRONIC SIGNATURE.] "Electronic signature" 19.26 means an electronic sound, symbol, or process attached to or 19.27 logically associated with a record and executed or adopted by a 19.28 person with the intent to sign the record. 19.29 Sec. 6. Minnesota Statutes 2002, section 82.17, is amended 19.30 by adding a subdivision to read: 19.31 Subd. 17. [LICENSEE.] "Licensee" means a person duly 19.32 licensed under this chapter. 19.33 Sec. 7. Minnesota Statutes 2002, section 82.17, is amended 19.34 by adding a subdivision to read: 19.35 Subd. 18. [LOAN BROKER.] "Loan broker" means a licensed 19.36 real estate broker or salesperson who, for another and for a 20.1 commission, fee, or other valuable consideration or with the 20.2 intention or expectation of receiving the same, directly or 20.3 indirectly, negotiates or offers or attempts to negotiate a loan 20.4 secured or to be secured by a mortgage or other encumbrance on 20.5 real estate, or represents himself or herself or otherwise holds 20.6 himself or herself out as a licensed real estate broker or 20.7 salesperson, either in connection with any transaction in which 20.8 he or she directly or indirectly negotiates or offers or 20.9 attempts to negotiate a loan, or in connection with the conduct 20.10 of his or her ordinary business activities as a loan broker. 20.11 "Loan broker" does not include a licensed real estate 20.12 broker or salesperson who, in the course of representing a 20.13 purchaser or seller of real estate, incidentally assists the 20.14 purchaser or seller in obtaining financing for the real property 20.15 in question if the licensee does not receive a separate 20.16 commission, fee, or other valuable consideration for this 20.17 service. 20.18 Sec. 8. Minnesota Statutes 2002, section 82.17, is amended 20.19 by adding a subdivision to read: 20.20 Subd. 19. [OVERPAYMENT.] "Overpayment" means any payment 20.21 of money in excess of a statutory fee or for a license for which 20.22 a person does not qualify. 20.23 Sec. 9. Minnesota Statutes 2002, section 82.17, is amended 20.24 by adding a subdivision to read: 20.25 Subd. 20. [OVERRIDE CLAUSE.] "Override clause" means a 20.26 provision in a listing agreement or similar instrument allowing 20.27 the broker to receive compensation when, after the listing 20.28 agreement has expired, the property is sold to persons with whom 20.29 a broker or salesperson had negotiated or exhibited the property 20.30 prior to the expiration of the listing agreement. 20.31 Sec. 10. Minnesota Statutes 2002, section 82.17, is 20.32 amended by adding a subdivision to read: 20.33 Subd. 21. [PRIMARY BROKER.] "Primary broker" means the 20.34 broker on whose behalf salespersons are licensed to act pursuant 20.35 to section 82.20, subdivision 6. In the case of a corporation 20.36 licensed as a broker, "primary broker" means each officer of the 21.1 corporation who is individually licensed to act as broker for 21.2 the corporation. In the case of a partnership, "primary broker" 21.3 means each partner licensed to act as a broker for the 21.4 partnership. 21.5 Sec. 11. Minnesota Statutes 2002, section 82.17, is 21.6 amended by adding a subdivision to read: 21.7 Subd. 22. [PROTECTIVE LIST.] "Protective list" means the 21.8 written list of names and addresses of prospective purchasers 21.9 with whom a licensee has negotiated the sale or rental of the 21.10 property or to whom a licensee has exhibited the property before 21.11 the expiration of the listing agreement. For the purposes of 21.12 this subdivision, "property" means the property that is the 21.13 subject of the listing agreement in question. 21.14 Sec. 12. Minnesota Statutes 2002, section 82.17, is 21.15 amended by adding a subdivision to read: 21.16 Subd. 23. [RENTAL SERVICE.] "Rental service" means a 21.17 person who gathers and catalogs information concerning 21.18 apartments or other units of real estate available for rent, and 21.19 who, for a fee, provides information intended to meet the 21.20 individual needs of specifically identified lessors or 21.21 prospective lessees. "Rental service" does not apply to 21.22 newspapers or other periodicals with a general circulation or 21.23 individual listing contracts between an owner or lessor of 21.24 property and a licensee. 21.25 Sec. 13. Minnesota Statutes 2002, section 82.17, is 21.26 amended by adding a subdivision to read: 21.27 Subd. 24. [SPONSOR.] "Sponsor" means a person offering or 21.28 providing real estate education. 21.29 Sec. 14. Minnesota Statutes 2002, section 82.19, 21.30 subdivision 3, is amended to read: 21.31 Subd. 3. [COMMISSION-SPLITTING, REBATES, AND FEES.] No 21.32 real estate broker, salesperson, or closing agents shall offer, 21.33 pay, or give, and no person shall accept, any compensation or 21.34 other thing of value from any real estate broker, salesperson, 21.35 or closing agents by way of commission-splitting, rebate, 21.36 finder's fees, or otherwise, in connection with any real estate 22.1 or business opportunity transaction. This subdivision does not 22.2 apply to transactions (1) between a licensed real estate broker 22.3 or salesperson and theperson by whom the broker or salesperson22.4is engaged to purchase or sell real estate or business22.5opportunityparties to the transaction, (2) among persons 22.6 licensed as provided herein, (3) between a licensed real estate 22.7 broker or salesperson and persons from other jurisdictions 22.8 similarly licensed in that jurisdiction, (4) involving timeshare 22.9 or other recreational lands where the amount offered or paid 22.10 does not exceed $150, and payment is not conditioned upon any 22.11 sale but is made merely for providing the referral and the 22.12 person paying the fee is bound by any representations the person 22.13 receiving the fee makes, and (5) involving a person who receives 22.14 a referral fee from a person or an agent of a person licensed 22.15 under this section, provided that in any 12-month period, no 22.16 recipient may earn more than the value of one month's rent, that 22.17 the recipient is a resident of the property or has lived there 22.18 within 60 days of the payment of the fee, and that the person 22.19 paying the fee is bound by any representations made by the 22.20 recipient of the fee. A licensed real estate broker or 22.21 salesperson may assign or direct that commissions or other 22.22 compensation earned in connection with any real estate or 22.23 business opportunity transaction be paid to a corporation, 22.24 limited liability company, or sole proprietorship of which the 22.25 licensed real estate broker or salesperson is the sole owner. 22.26 Sec. 15. Minnesota Statutes 2002, section 82.19, 22.27 subdivision 5, is amended to read: 22.28 Subd. 5. [DISCLOSURE REGARDING REPRESENTATION OF PARTIES.] 22.29 (a) No person licensed pursuant to this chapter or who otherwise 22.30 acts as a real estate broker or salesperson shall fail to 22.31 provide at the first substantive contact with a consumer in a 22.32 residential real property transaction an agency disclosure form 22.33 as set forth in section 82.197. 22.34 (b) The seller may, in the listing agreement, authorize the 22.35 seller's broker to disburse part of the broker's compensation to 22.36 other brokers, including the buyer's brokers solely representing 23.1 the buyer.A broker representing a buyer shall make known to23.2the seller or the seller's agent the fact of the agency23.3relationship before any showing or negotiations are initiated.23.4 Sec. 16. Minnesota Statutes 2002, section 82.19, is 23.5 amended by adding a subdivision to read: 23.6 Subd. 10. [PROHIBITION ON GUARANTEEING FUTURE 23.7 PROFITS.] Licensees shall not, with respect to the sale or lease 23.8 of real property, guarantee or affirmatively encourage another 23.9 person to guarantee future profits or earnings that may result 23.10 from the purchase or lease of the real property in question 23.11 unless the guarantee and the assumptions upon which it is based 23.12 are fully disclosed and contained in the contract, purchase 23.13 agreement, or other instrument of sale or lease. 23.14 Sec. 17. Minnesota Statutes 2002, section 82.19, is 23.15 amended by adding a subdivision to read: 23.16 Subd. 11. [PROHIBITION AGAINST DISCOURAGING USE OF 23.17 ATTORNEY.] Licensees shall not discourage prospective parties to 23.18 a real estate transaction from seeking the services of an 23.19 attorney. 23.20 Sec. 18. Minnesota Statutes 2002, section 82.19, is 23.21 amended by adding a subdivision to read: 23.22 Subd. 12. [FRAUDULENT, DECEPTIVE, AND DISHONEST 23.23 PRACTICES.] (a) [PROHIBITIONS.] For the purposes of section 23.24 82.32, subdivision 1, clause (b), the following acts and 23.25 practices constitute fraudulent, deceptive, or dishonest 23.26 practices: 23.27 (1) act on behalf of more than one party to a transaction 23.28 without the knowledge and consent of all parties; 23.29 (2) act in the dual capacity of licensee and undisclosed 23.30 principal in any transaction; 23.31 (3) receive funds while acting as principal which funds 23.32 would constitute trust funds if received by a licensee acting as 23.33 an agent, unless the funds are placed in a trust account. Funds 23.34 need not be placed in a trust account if a written agreement 23.35 signed by all parties to the transaction specifies a different 23.36 disposition of the funds, in accordance with section 82.27, 24.1 subdivision 1; 24.2 (4) violate any state or federal law concerning 24.3 discrimination intended to protect the rights of purchasers or 24.4 renters of real estate; 24.5 (5) make a material misstatement in an application for a 24.6 license or in any information furnished to the commissioner; 24.7 (6) procure or attempt to procure a real estate license for 24.8 himself or herself or any person by fraud, misrepresentation, or 24.9 deceit; 24.10 (7) represent membership in any real estate-related 24.11 organization in which the licensee is not a member; 24.12 (8) advertise in any manner that is misleading or 24.13 inaccurate with respect to properties, terms, values, policies, 24.14 or services conducted by the licensee; 24.15 (9) make any material misrepresentation or permit or allow 24.16 another to make any material misrepresentation; 24.17 (10) make any false or misleading statements, or permit or 24.18 allow another to make any false or misleading statements, of a 24.19 character likely to influence, persuade, or induce the 24.20 consummation of a transaction contemplated by this chapter; 24.21 (11) fail within a reasonable time to account for or remit 24.22 any money coming into the licensee's possession which belongs to 24.23 another; 24.24 (12) commingle with his or her own money or property trust 24.25 funds or any other money or property of another held by the 24.26 licensee; 24.27 (13) demand from a seller a commission to compensation 24.28 which the licensee is not entitled, knowing that he or she is 24.29 not entitled to the commission compensation; 24.30 (14) pay or give money or goods of value to an unlicensed 24.31 person for any assistance or information relating to the 24.32 procurement by a licensee of a listing of a property or of a 24.33 prospective buyer of a property (this item does not apply to 24.34 money or goods paid or given to the parties to the transaction); 24.35 (15) fail to maintain a trust account at all times, as 24.36 provided by law; 25.1 (16) engage, with respect to the offer, sale, or rental of 25.2 real estate, in an anticompetitive activity; 25.3 (17) represent on advertisements, cards, signs, circulars, 25.4 letterheads, or in any other manner, that he or she is engaged 25.5 in the business of financial planning unless he or she provides 25.6 a disclosure document to the client. The document must be 25.7 signed by the client and a copy must be left with the client. 25.8 The disclosure document must contain the following: 25.9 (i) the basis of fees, commissions, or other compensation 25.10 received by him or her in connection with rendering of financial 25.11 planning services or financial counseling or advice in the 25.12 following language: 25.13 "My compensation may be based on the following: 25.14 (a) ... commissions generated from the products I sell you; 25.15 (b) ... fees; or 25.16 (c) ... a combination of (a) and (b). [Comments]"; 25.17 (ii) the name and address of any company or firm that 25.18 supplies the financial services or products offered or sold by 25.19 him or her in the following language: 25.20 "I am authorized to offer or sell products and/or services 25.21 issued by or through the following firm(s): 25.22 [List] 25.23 The products will be traded, distributed, or placed through 25.24 the clearing/trading firm(s) of: 25.25 [List]"; 25.26 (iii) the license(s) held by the person under this chapter 25.27 or chapter 60A or 80A in the following language: 25.28 "I am licensed in Minnesota as a(n): 25.29 (a) ... insurance agent; 25.30 (b) ... securities agent or broker/dealer; 25.31 (c) ... real estate broker or salesperson; 25.32 (d) ... investment adviser"; and 25.33 (iv) the specific identity of any financial products or 25.34 services, by category, for example mutual funds, stocks, or 25.35 limited partnerships, the person is authorized to offer or sell 25.36 in the following language: 26.1 "The license(s) entitles me to offer and sell the following 26.2 products and/or services: 26.3 (a) ... securities, specifically the following: [List]; 26.4 (b) ... real property; 26.5 (c) ... insurance; and 26.6 (d) ... other: [List]." 26.7 (b) [DETERMINING VIOLATION.] A licensee shall be deemed to 26.8 have violated this section if the licensee has been found to 26.9 have violated sections 325D.49 to 325D.66, by a final decision 26.10 or order of a court of competent jurisdiction. 26.11 (c) [COMMISSIONER'S AUTHORITY.] Nothing in this section 26.12 limits the authority of the commissioner to take actions against 26.13 a licensee for fraudulent, deceptive, or dishonest practices not 26.14 specifically described in this section. 26.15 Sec. 19. [82.191] [COMPENSATION.] 26.16 Subdivision 1. [LICENSEE TO RECEIVE ONLY FROM BROKER.] A 26.17 licensee shall not accept a commission compensation or other 26.18 valuable consideration for the performance of any acts requiring 26.19 a real estate license from any person except the real estate 26.20 broker to whom the licensee is licensed or to whom the licensee 26.21 was licensed at the time of the transaction. 26.22 Subd. 2. [UNDISCLOSED COMPENSATION.] A licensee shall not 26.23 accept, give, or charge any undisclosed compensation or realize 26.24 any direct or indirect remuneration that inures to the benefit 26.25 of the licensee on an expenditure made for a principal. 26.26 Subd. 3. [LIMITATION ON BROKER WHEN TRANSACTION NOT 26.27 COMPLETED.] When the owner fails or is unable to consummate a 26.28 real estate transaction, through no fault of the purchaser, the 26.29 listing broker may not claim any portion of any trust funds 26.30 deposited with the broker by the purchaser, absent a separate 26.31 agreement with the purchaser. 26.32 Sec. 20. Minnesota Statutes 2002, section 82.195, is 26.33 amended to read: 26.34 82.195 [LISTING AGREEMENTS.] 26.35Subdivision 1.(a) [REQUIREMENT.] Licensees shall obtain a 26.36 signed listing agreement or other signed written authorization 27.1 from the owner of real property or from another person 27.2 authorized to offer the property for sale or lease before 27.3 advertising to the general public that the real property is 27.4 available for sale or lease. 27.5 For the purposes of this section "advertising" includes 27.6 placing a sign on the owner's property that indicates that the 27.7 property is being offered for sale or lease. 27.8Subd. 2.(b) [CONTENTS.] All listing agreements must be in 27.9 writing and must include: 27.10 (1) a definite expiration date; 27.11 (2) a description of the real property involved; 27.12 (3) the list price and any terms required by the seller; 27.13 (4) the amount of any compensation or commission or the 27.14 basis for computing the commission; 27.15 (5) a clear statement explaining the events or conditions 27.16 that will entitle a broker to a commission; 27.17 (6) information regarding an override clause, if 27.18 applicable, including a statement to the effect that the 27.19 override clause will not be effective unless the licensee 27.20 supplies the seller with a protective list within 72 hours after 27.21 the expiration of the listing agreement; 27.22 (7) the following notice in not less than ten point 27.23 boldface type immediately preceding any provision of the listing 27.24 agreement relating to compensation of the licensee: 27.25 "NOTICE: THE COMPENSATION FOR THE SALE, LEASE, RENTAL, OR 27.26 MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH 27.27 INDIVIDUAL BROKER AND THE BROKER'S CLIENT."; 27.28 (8) for residential property listings, the following "dual 27.29 agency" disclosure statement: 27.30 If a buyer represented by broker wishes to buyyourthe 27.31 seller's property, a dual agency will be created. This means 27.32 that broker will represent bothyouthe seller(s) and the 27.33 buyer(s), and owe the same duties to the buyer(s) that broker 27.34 owes toyouthe seller(s). This conflict of interest will 27.35 prohibit broker from advocating exclusively onyourthe seller's 27.36 behalf. Dual agency will limit the level of representation 28.1 broker can provide. If a dual agency should arise,youthe 28.2 seller(s) will need to agree that confidential information about 28.3 price, terms, and motivation will still be kept confidential 28.4 unlessyouthe seller(s) instruct broker in writing to disclose 28.5 specific information aboutyouthe seller(s). All other 28.6 information will be shared. Broker cannot act as a dual agent 28.7 unless bothyouthe seller(s) and the buyer(s) agree to it. By 28.8 agreeing to a possible dual agency,youthe seller(s) will be 28.9 giving up the right to exclusive representation in an in-house 28.10 transaction. However, ifyouthe seller(s) should decide not to 28.11 agree to a possible dual agency, andyouthe seller(s) want 28.12 broker to representyouthe seller(s),youthe seller(s) may 28.13 give up the opportunity to sellyourthe property to buyers 28.14 represented by broker. 28.15 Seller's Instructions to Broker 28.16 28.17 Having read and understood this information about dual 28.18 agency, seller(s) now instructs broker as follows: 28.19 ....... Seller(s) will agree to a dual agency 28.20 representation and will consider offers made 28.21 by buyers represented by broker. 28.22 28.23 ....... Seller(s) will not agree to a dual agency 28.24 representation and will not consider offers 28.25 made by buyers represented by broker. 28.26 28.27 28.28 ......................... ......................... 28.29 SellerBrokerReal Estate Company Name 28.30 28.31 28.32 ......................... By: .................... 28.33 Seller Salesperson 28.34 28.35 Date: ..................; 28.36 (9) a notice requiring the seller to indicate in writing 29.1 whether it is acceptable to the seller to have the licensee 29.2 arrange for closing services or whether the seller wishes to 29.3 arrange for others to conduct the closing; and 29.4 (10) for residential listings, a notice stating that after 29.5 the expiration of the listing agreement, the seller will not be 29.6 obligated to pay the licensee a fee or commission if the seller 29.7 has executed another valid listing agreement pursuant to which 29.8 the seller is obligated to pay a fee or commission to another 29.9 licensee for the sale, lease, or exchange of the real property 29.10 in question. This notice may be used in the listing agreement 29.11 for any other type of real estate. 29.12Subd. 3.(c) [PROHIBITED PROVISIONS.] Except as otherwise 29.13 provided insubdivision 4,paragraph(b)(d)(ii), licensees 29.14 shall not include in a listing agreement a holdover clause, 29.15 automatic extension, or any similar provision, or an override 29.16 clause the length of which is more than six months after the 29.17 expiration of the listing agreement. 29.18Subd. 4.(d) [OVERRIDE CLAUSES.](a)(i) Licensees shall 29.19 not seek to enforce an override clause unless a protective list 29.20 has been furnished to the seller within 72 hours after the 29.21 expiration of the listing agreement. 29.22(b)(ii) A listing agreement may contain an override clause 29.23 of up to two years in length when used in conjunction with the 29.24 purchase or sale of a business. The length of the override 29.25 clause must be negotiable between the licensee and the seller of 29.26 the business. The protective list provided in connection with 29.27 the override clause must include the written acknowledgment of 29.28 each party named on the protective list, that the business which 29.29 is the subject of the listing agreement was presented to that 29.30 party by the licensee. 29.31Subd. 5.(e) [PROTECTIVE LISTS.] A broker or salesperson 29.32 has the burden of demonstrating that each person on the 29.33 protective list has, during the period of the listing agreement, 29.34 either made an affirmative showing of interest in the property 29.35 by responding to an advertisement or by contacting the broker or 29.36 salesperson involved or has been physically shown the property 30.1 by the broker or salesperson. For the purpose of this section, 30.2 the mere mailing or other distribution by a licensee of 30.3 literature setting forth information about the property in 30.4 question does not, of itself, constitute an affirmative showing 30.5 of interest in the property on the part of a subsequent 30.6 purchaser. 30.7 For listings of nonresidential real property which do not 30.8 contain the notice described insubdivision 2paragraph (b), 30.9 clause (10), the protective list must contain the following 30.10 notice in boldface type: 30.11 "IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE 30.12 PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME APPEARS 30.13 ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS TO BOTH 30.14 BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK COMPETENT 30.15 ADVICE." 30.16 Sec. 21. Minnesota Statutes 2002, section 82.196, is 30.17 amended to read: 30.18 82.196 [BUYER'S BROKER AGREEMENTS.] 30.19Subdivision 1.(a) [REQUIREMENTS.] Licensees shall obtain 30.20 a signed buyer's broker agreement from a buyer before performing 30.21 any acts as a buyer's representative and before a purchase 30.22 agreement is signed. 30.23Subd. 2.(b) [CONTENTS.] All buyer's broker agreements 30.24 must be in writing and must include: 30.25 (1) a definite expiration date; 30.26 (2) the amount of any compensation or commission, or the 30.27 basis for computing the commission; 30.28 (3) a clear statement explaining the services to be 30.29 provided to the buyer by the broker, and the events or 30.30 conditions that will entitle a broker to a commission or other 30.31 compensation; 30.32 (4) a clear statement explaining if the agreement may be 30.33 canceled and the terms under which the agreement may be 30.34 canceled; 30.35 (5) information regarding an override clause, if 30.36 applicable, including a statement to the effect that the 31.1 override clause will not be effective unless the licensee 31.2 supplies the buyer with a protective list within 72 hours after 31.3 the expiration of the buyer's broker agreement; 31.4 (6) the following notice in not less than ten point 31.5 boldface type immediately preceding any provision of the buyer's 31.6 broker agreement relating to compensation of the licensee: 31.7 "NOTICE: THE COMPENSATION FOR THE PURCHASE, LEASE, RENTAL, 31.8 OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH 31.9 INDIVIDUAL BROKER AND THE BROKER'S CLIENT."; 31.10 (7) the following "dual agency" disclosure statement: 31.11 Ifyouthe buyer(s) choose(s) to purchase a property listed 31.12 by broker, a dual agency will be created. This means that 31.13 broker will represent bothyouthe buyer(s) and the seller(s), 31.14 and owe the same duties to the seller(s) that broker owes toyou31.15 the buyer(s). This conflict of interest will prohibit broker 31.16 from advocating exclusively onyourthe buyer's behalf. Dual 31.17 agency will limit the level of representation broker can 31.18 provide. If a dual agency should arise,youthe buyer(s) will 31.19 need to agree that confidential information about price, terms, 31.20 and motivation will still be kept confidential unlessyouthe 31.21 buyer(s) instruct broker in writing to disclose specific 31.22 information aboutyouthe buyer(s). All other information will 31.23 be shared. Broker cannot act as a dual agent unless bothyou31.24 the buyer(s) and the seller(s) agree to it. By agreeing to a 31.25 possible dual agency,youthe buyer(s) will be giving up the 31.26 right to exclusive representation in an in-house transaction. 31.27 However, ifyouthe buyer(s) should decide not to agree to a 31.28 possible dual agency, andyouthe buyer(s) want(s) broker to 31.29 representyouthe buyer(s),youthe buyer(s) may give up the 31.30 opportunity to purchase the properties listed by broker. 31.31 Buyer's Instructions to Broker 31.32 31.33 ....... Buyer(s) will agree to a dual agency representation 31.34 and will consider properties listed by broker. 31.35 31.36 ....... Buyer(s) will not agree to a dual agency 32.1 representation and will not consider 32.2 properties listed by broker. 32.3 32.4 32.5 ......................... ......................... 32.6 BuyerBrokerReal Estate Company Name 32.7 32.8 ......................... By: .................... 32.9 Buyer Salesperson 32.10 32.11 Date: ...................; and 32.12 (8) for buyer's broker agreements which involve residential 32.13 real property, a notice stating that after the expiration of the 32.14 buyer's broker agreement, the buyer will not be obligated to pay 32.15 the licensee a fee or commission if the buyer has executed 32.16 another valid buyer's broker agreement pursuant to which the 32.17 buyer is obligated to pay a fee or commission to another 32.18 licensee for the purchase, lease, or exchange of real property. 32.19Subd. 3.(c) [PROHIBITED PROVISIONS.] Licensees shall not 32.20 include in a buyer's broker agreement a holdover clause, 32.21 automatic extension, or any other similar provision, or an 32.22 override clause the length of which is more than six months 32.23 after the expiration of the buyer's broker agreement. 32.24Subd. 4.(d) [OVERRIDE CLAUSES.] Licensees shall not seek 32.25 to enforce an override clause unless a protective list has been 32.26 furnished to the buyer within 72 hours after the expiration of 32.27 the buyer's broker agreement. 32.28Subd. 5.(e) [PROTECTIVE LISTS.] A licensee has the burden 32.29 of demonstrating that each property on the protective list has 32.30 been shown to the buyer, or specifically brought to the 32.31 attention of the buyer, during the time the buyer's broker 32.32 agreement was in effect. 32.33Subd. 6.(f) [APPLICATION.] This section applies only to 32.34 residential real property transactions. 32.35 Sec. 22. Minnesota Statutes 2002, section 82.197, is 32.36 amended to read: 33.1 82.197 [DISCLOSURE REQUIREMENTS.] 33.2 Subdivision 1. [ADVERTISING.] Each licensee shall identify 33.3 himself or herself as either a broker or an agent salesperson in 33.4 any advertising for the purchase, sale, lease, exchange, 33.5 mortgaging, transfer, or other disposition of real property, 33.6 whether the advertising pertains to the licensee's own property 33.7 or the property of others. 33.8 Subd. 2. [AGENCY DISCLOSURE.] A real estate broker or 33.9 salesperson shall provide to a consumer in the sale and purchase 33.10 of a residential real property transaction at the first 33.11 substantive contact with the consumer an agency disclosure form 33.12 in substantially the form set forth in subdivision 4. The 33.13 agency disclosure form shall be intended to provide a 33.14 description of available options for agency and facilitator 33.15 relationships, and a description of the role of a licensee under 33.16 each option. The agency disclosure form shall provide a 33.17 signature line for acknowledgment of receipt by the 33.18 consumer. The disclosures required by this subdivision apply 33.19 only to residential real property transactions. 33.20Subd. 2. [CREATION OF DUAL AGENCY.] If circumstances33.21create a dual agency situation, the broker must make full33.22disclosure to all parties to the transaction as to the change in33.23relationship of the parties to the broker due to dual agency. A33.24broker, having made full disclosure, must obtain the consent of33.25all parties to these circumstances in residential real property33.26transactions in the purchase agreement in the form set forth33.27below which shall be set off in a boxed format to draw attention33.28to it:33.29Broker represents both the seller(s) and the buyer(s) of33.30the property involved in this transaction, which creates a dual33.31agency. This means that broker and its salespersons owe33.32fiduciary duties to both seller(s) and buyer(s). Because the33.33parties may have conflicting interests, broker and its33.34salespersons are prohibited from advocating exclusively for33.35either party. Broker cannot act as a dual agent in this33.36transaction without the consent of both seller(s) and buyer(s).34.1Seller(s) and buyer(s) acknowledge that:34.2(1) confidential information communicated to broker which34.3regards price, terms, or motivation to buy or sell will remain34.4confidential unless seller(s) or buyer(s) instructs broker in34.5writing to disclose this information. Other information will be34.6shared;34.7(2) broker and its salespersons will not represent the34.8interests of either party to the detriment of the other; and34.9(3) within the limits of dual agency, broker and its34.10salespersons will work diligently to facilitate the mechanics of34.11the sale.34.12With the knowledge and understanding of the explanation34.13above, seller(s) and buyer(s) authorize and instruct broker and34.14its salespersons to act as dual agents in this transaction.34.15 34.16 34.17......................................................34.18SellerBuyer34.19 34.20......................................................34.21SellerBuyer34.22 34.23......................................................34.24DateDate34.25 Subd. 3. [SCOPE AND EFFECT.] Disclosures made in 34.26 accordance with the requirements for disclosure of agency 34.27 relationships set forth in this chapter are sufficient to 34.28 satisfy common law disclosure requirements.In addition, when a34.29principal in the transaction is a licensee or a relative or34.30business associate of the licensee, that fact must be disclosed34.31in writing in addition to any other required disclosures.34.32 Subd. 4. [AGENCY DISCLOSURE FORM.] The agency disclosure 34.33 form shall be in substantially the form set forth below: 34.34 AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS 34.35 Minnesota law requires that early in any relationship, real 34.36 estate brokers or salespersons discuss with consumers what type 35.1 of agency representation or relationship they desire.(1) The 35.2 available options are listed below. This is not a contract. 35.3 This is an agency disclosure form only. If you desire 35.4 representation, you must enter into a written contract according 35.5 to state law (a listing contract or a buyer representation 35.6 contract). Until such time as you choose to enter into a 35.7 written contract for representation, you will be treated as a 35.8 customer and will not receive any representation from the broker 35.9 or salesperson. The broker or salesperson will be acting as a 35.10 Facilitator (see paragraph V below), unless the broker or 35.11 salesperson is representing another party as described below. 35.12 ACKNOWLEDGMENT: I/We acknowledge that I/We have been 35.13 presented with the below-described options. I/We understand 35.14 that until I/We have signed a representation contract, I/We are 35.15 not represented by the broker/salesperson. I/We understand that 35.16 written consent is required for a dual agency relationship. 35.17 THIS IS A DISCLOSURE ONLY, NOT A CONTRACT FOR REPRESENTATION. 35.18 ............... .......... 35.19 Signature Date 35.20 ............... .......... 35.21 Signature Date 35.22 I. 35.23 Seller's Broker: A broker who lists a property, or a 35.24 salesperson who is licensed to the listing broker, 35.25 represents the Seller and acts on behalf of the Seller. A 35.26 Seller's broker owes to the Seller the fiduciary duties 35.27 described below.(2) The broker must also disclose to the 35.28 Buyer material facts as defined in Minnesota Statutes, 35.29 section 82.197, subdivision 6, of which the broker is aware 35.30 that could adversely and significantly affect the Buyer's 35.31 use or enjoyment of the property. If a broker or 35.32 salesperson working with a Buyer as a customer is 35.33 representing the Seller, he or she must act in the Seller's 35.34 best interest and must tell the Seller any information 35.35 disclosed to him or her, except confidential information 35.36 acquired in a facilitator relationship (see paragraph V 36.1 below). In that case, the Buyer will not be represented 36.2 and will not receive advice and counsel from the broker or 36.3 salesperson. 36.4 II. 36.5 Subagent: A broker or salesperson who is working with a 36.6 Buyer but represents the Seller. In this case, the Buyer 36.7 is the broker's customer and is not represented by that 36.8 broker. If a broker or salesperson working with a Buyer as 36.9 a customer is representing the Seller, he or she must act 36.10 in the Seller's best interest and must tell the Seller any 36.11 information that is disclosed to him or her. In that case, 36.12 the Buyer will not be represented and will not receive 36.13 advice and counsel from the broker or salesperson. 36.14 III. 36.15 Buyer's Broker: A Buyer may enter into an agreement for 36.16 the broker or salesperson to represent and act on behalf of 36.17 the Buyer. The broker may represent the Buyer only, and 36.18 not the Seller, even if he or she is being paid in whole or 36.19 in part by the Seller. A Buyer's broker owes to the Buyer 36.20 the fiduciary duties described below.(2) The broker must 36.21 disclose to the Buyer material facts as defined in 36.22 Minnesota Statutes, section 82.197, subdivision 6, of which 36.23 the broker is aware that could adversely and significantly 36.24 affect the Buyer's use or enjoyment of the property. If a 36.25 broker or salesperson working with a Seller as a customer 36.26 is representing the Buyer, he or she must act in the 36.27 Buyer's best interest and must tell the Buyer any 36.28 information disclosed to him or her, except confidential 36.29 information acquired in a facilitator relationship (see 36.30 paragraph V below). In that case, the Seller will not be 36.31 represented and will not receive advice and counsel from 36.32 the broker or salesperson. 36.33 IV. 36.34 Dual Agency-Broker Representing both Seller and Buyer: 36.35 Dual agency occurs when one broker or salesperson 36.36 represents both parties to a transaction, or when two 37.1 salespersons licensed to the same broker each represent a 37.2 party to the transaction. Dual agency requires the 37.3 informed consent of all parties, and means that the broker 37.4 and salesperson owe the same duties to the Seller and the 37.5 Buyer. This role limits the level of representation the 37.6 broker and salespersons can provide, and prohibits them 37.7 from acting exclusively for either party. In a dual 37.8 agency, confidential information about price, terms, and 37.9 motivation for pursuing a transaction will be kept 37.10 confidential unless one party instructs the broker or 37.11 salesperson in writing to disclose specific information 37.12 about him or her. Other information will be shared. Dual 37.13 agents may not advocate for one party to the detriment of 37.14 the other.(3) 37.15 Within the limitations described above, dual agents owe to 37.16 both Seller and Buyer the fiduciary duties described 37.17 below.(2) Dual agents must disclose to Buyers material 37.18 facts as defined in Minnesota Statutes, section 82.197, 37.19 subdivision 6, of which the broker is aware that could 37.20 adversely and significantly affect the Buyer's use or 37.21 enjoyment of the property. 37.22 V. 37.23 Facilitator: A broker or salesperson who performs services 37.24 for a Buyer, a Seller, or both but does not represent 37.25 either in a fiduciary capacity as a Buyer's Broker, 37.26 Seller's Broker, or Dual Agent. THE FACILITATOR BROKER OR 37.27 SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY 37.28 DUTIES LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE 37.29 DUTIES ARE INCLUDED IN A WRITTEN FACILITATOR SERVICES 37.30 AGREEMENT. The facilitator broker or salesperson owes the 37.31 duty of confidentiality to the party but owes no other duty 37.32 to the party except those duties required by law or 37.33 contained in a written facilitator services agreement, if 37.34 any. In the event a facilitator broker or salesperson, 37.35 working with a Buyer, shows a property listed by the 37.36 facilitator broker or salesperson, then the facilitator 38.1 broker or salesperson must act as a Seller's Broker (see 38.2 paragraph I above). In the event a facilitator broker or 38.3 salesperson, working with a Seller, accepts a showing of 38.4 the property by a Buyer being represented by the 38.5 facilitator broker or salesperson, then the facilitator 38.6 broker or salesperson must act as a Buyer's Broker (see 38.7 paragraph III above). 38.8 38.9 38.10 38.11 **************************************************************** 38.12 (1) This disclosure is required by law in any transaction 38.13 involving property occupied or intended to be occupied by one to 38.14 four families as their residence. 38.15 (2) The fiduciary duties mentioned above are listed below 38.16 and have the following meanings: 38.17 Loyalty-broker/salesperson will act only in client(s)' best 38.18 interest. 38.19 Obedience-broker/salesperson will carry out all client(s)' 38.20 lawful instructions. 38.21 Disclosure-broker/salesperson will disclose to client(s) 38.22 all material facts of which broker/salesperson has knowledge 38.23 which might reasonably affect the client'srights and interests38.24 use and enjoyment of the property. 38.25 Confidentiality-broker/salesperson will keep client(s)' 38.26 confidences unless required by law to disclose specific 38.27 information (such as disclosure of material facts to Buyers). 38.28 Reasonable Care-broker/salesperson will use reasonable care 38.29 in performing duties as an agent. 38.30 Accounting-broker/salesperson will account to client(s) for 38.31 all client(s)' money and property received as agent. 38.32 (3) If Seller(s) decides not to agree to a dual agency 38.33 relationship, Seller(s) may give up the opportunity to sell the 38.34 property to Buyers represented by the broker/salesperson. If 38.35 Buyer(s) decides not to agree to a dual agency relationship, 38.36 Buyer(s) may give up the opportunity to purchase properties 39.1 listed by the broker. 39.2 Subd. 5. [APPLICATIONCREATION OF DUAL AGENCY.]The39.3disclosures required by subdivision 4 apply only to residential39.4real property transactions.If circumstances create a dual 39.5 agency situation, the broker must make full disclosure to all 39.6 parties to the transaction as to the change in relationship of 39.7 the parties to the broker due to dual agency. A broker, having 39.8 made full disclosure, must obtain the consent of all parties to 39.9 these circumstances in residential real property transactions in 39.10 the purchase agreement in the form set forth below which shall 39.11 be set off in a boxed format to draw attention to it: 39.12 Broker represents both the seller(s) and the buyer(s) of 39.13 the property involved in this transaction, which creates a dual 39.14 agency. This means that broker and it salespersons owe 39.15 fiduciary duties to both seller(s) and buyer(s). Because the 39.16 parties may have conflicting interests, broker and its 39.17 salespersons are prohibited from advocating exclusively for 39.18 either party. Broker cannot act as a dual agent in this 39.19 transaction without the consent of both seller(s) and buyer(s). 39.20 Seller(s) and buyer(s) acknowledge that: 39.21 (1) confidential information communicated to broker which 39.22 regards price, terms, or motivation to buy or sell will remain 39.23 confidential unless seller(s) or buyer(s) instructs broker in 39.24 writing to disclose this information. Other information will be 39.25 shared; 39.26 (2) broker and its salespersons will not represent the 39.27 interests of either party to the detriment of the other; and 39.28 (3) within the limits of dual agency, broker and its 39.29 salespersons will work diligently to facilitate the mechanics of 39.30 the sale. 39.31 With the knowledge and understanding of the explanation 39.32 above, seller(s) and buyer(s) authorize and instruct broker and 39.33 its salespersons to act as dual agents in this transaction. 39.34 ............... ............... 39.35 Seller Buyer 39.36 ............... ............... 40.1 Seller Buyer 40.2 ............... ............... 40.3 Date Date 40.4 Subd. 6. [AGENT OF BROKER DISCLOSURE.] A salesperson shall 40.5 only conduct business under the licensed name of and on behalf 40.6 of the broker to whom the salesperson is licensed. An 40.7 individual broker shall only conduct business under the broker's 40.8 licensed name. A broker licensed to a corporation or 40.9 partnership shall only conduct business under the licensed 40.10 corporate or partnership name. A licensee shall affirmatively 40.11 disclose, before the negotiation or consummation of any 40.12 transaction, the licensed name of the broker under whom the 40.13 licensee is authorized to conduct business in accordance with 40.14 this section. 40.15 Subd. 7. [FINANCIAL INTERESTS DISCLOSURE; LICENSEE.] (a) 40.16 Prior to the negotiation or consummation of any transaction, a 40.17 licensee shall affirmatively disclose to the owner of real 40.18 property that the licensee is a real estate broker or agent 40.19 salesperson, and in what capacity the licensee is acting, if the 40.20 licensee directly, or indirectly through a third party, 40.21 purchases for himself or herself or acquires, or intends to 40.22 acquire, any interest in, or any option to purchase, the owner's 40.23 property. 40.24 (b) When a principal in the transaction is a licensee or a 40.25 relative or business associate of the licensee, that fact must 40.26 be disclosed in writing. 40.27 Subd.6.8. [MATERIAL FACTS.] (a) Licensees shall disclose 40.28 to any prospective purchaser all material facts of which the 40.29 licensees are aware, which could adversely and significantly 40.30 affect an ordinary purchaser's use or enjoyment of the property, 40.31 or any intended use of the property of which the licensees are 40.32 aware. 40.33 (b) It is not a material fact relating to real property 40.34 offered for saleand no regulatory action shall be brought40.35against a licensee for failure to disclose in any real estate40.36transactionthe fact or suspicion that the property: 41.1 (1) is or was occupied by an owner or occupant who is or 41.2 was suspected to be infected with human immunodeficiency virus 41.3 or diagnosed with acquired immunodeficiency syndrome; 41.4 (2) was the site of a suicide, accidental death, natural 41.5 death, or perceived paranormal activity; or 41.6 (3) is located in a neighborhood containing any adult 41.7 family home, community-based residential facility, or nursing 41.8 home. 41.9 (c) A licensee or employee of the licensee has no duty to 41.10 disclose information regarding an offender who is required to 41.11 register under section 243.166, or about whom notification is 41.12 made under that section, if the broker or salesperson, in a 41.13 timely manner, provides a written notice that information about 41.14 the predatory offender registry and persons registered with the 41.15 registry may be obtained by contacting local law enforcement 41.16 where the property is located or the Department of Corrections. 41.17 (d) A licensee is not required to disclose, except as 41.18 otherwise provided in paragraph (e), information relating to the 41.19 physical condition of the property or any other information 41.20 relating to the real estate transaction, if a written report 41.21 that discloses the information has been prepared by a qualified 41.22 third party and provided to the person. For the purposes of 41.23 this paragraph, "qualified third party" means a federal, state, 41.24 or local governmental agency, or any person whom the broker, 41.25 salesperson, or a party to the real estate transaction 41.26 reasonably believes has the expertise necessary to meet the 41.27 industry standards of practice for the type of inspection or 41.28 investigation that has been conducted by the third party in 41.29 order to prepare the written report and who is acceptable to the 41.30 person to whom the disclosure is being made. 41.31 (e) A licensee shall disclose to the parties to a real 41.32 estate transaction any facts known by the broker or salesperson 41.33 that contradict any information included in a written report, if 41.34 a copy of the report is provided to the licensee, described in 41.35 paragraph (d). 41.36 (f) The limitation on disclosures set forth in paragraphs 42.1 (b) and (c) shall modify any common law duties with respect to 42.2 disclosure of material facts. 42.3 Subd. 9. [NONPERFORMANCE OF ANY PARTY.] If a licensee is 42.4 put on notice by any party to a real estate transaction that the 42.5 party will not perform in accordance with the terms of a 42.6 purchase agreement or other similar written agreement to convey 42.7 real estate, the licensee shall immediately disclose the fact of 42.8 that party's intent not to perform to the other party or parties 42.9 to the transaction. Whenever reasonably possible, the licensee 42.10 shall inform the party who will not perform of the licensee's 42.11 obligation to disclose this fact to the other party or parties 42.12 to the transaction prior to making the disclosure. The 42.13 obligation required by this section shall not apply to notice of 42.14 a party's inability to keep or fulfill any contingency to which 42.15 the real estate transaction has been made subject. 42.16 Sec. 23. Minnesota Statutes 2002, section 82.20, is 42.17 amended by adding a subdivision to read: 42.18 Subd. 2a. [ADDITIONAL BROKER'S LICENSE.] An individual who 42.19 holds a broker's license in his or her own name or for or on 42.20 behalf of a corporation or partnership must be issued an 42.21 additional broker's license only upon demonstrating that the 42.22 additional license is necessary in order to serve a legitimate 42.23 business purpose; that the broker will be capable of supervising 42.24 all salespersons over whom he or she will have supervisory 42.25 responsibility or, in the alternative, that the broker will have 42.26 no supervisory responsibilities under the additional license; 42.27 and that the broker has a substantial ownership interest in each 42.28 corporation or partnership for or on whose behalf he or she 42.29 holds or will hold a broker's license. 42.30 The requirement of a substantial ownership interest does 42.31 not apply where the broker seeking the additional license or 42.32 licenses is an officer of a corporation for or on whose behalf 42.33 the broker already holds a license and the broker is applying 42.34 for the additional license or licenses for or on behalf of an 42.35 affiliated corporation or corporations of which he or she is 42.36 also an officer. For the purpose of this section, "affiliated 43.1 corporation" means a corporation which is directly or indirectly 43.2 controlled by the same persons as the corporation for or on 43.3 whose behalf the broker is already licensed to act. 43.4 For the purposes of this section, a legitimate business 43.5 purpose includes engaging in a different and specialized area of 43.6 real estate or maintaining an existing business name. 43.7 Sec. 24. Minnesota Statutes 2002, section 82.20, 43.8 subdivision 3, is amended to read: 43.9 Subd. 3. [APPLICATION FOR LICENSE; CONTENTS.] (a) Every 43.10 applicant for a license as a real estate broker, real estate 43.11 salesperson, or closing agent shall make an application in 43.12 writing upon forms prepared and furnished by the commissioner. 43.13 Each application shall be signed and sworn to by the applicant 43.14 and shall be accompanied by the license fee required by this 43.15 chapter. 43.16 (b) Each application for a real estate broker license, real 43.17 estate salesperson license, or real estate closing agent license 43.18 shall contain such information as required by the commissioner 43.19 consistent with the administration of the provisions and 43.20 purposes of this chapter. 43.21 (c) Each application for a real estate salesperson license 43.22 shall give the applicant's name, age, residence address, and the 43.23 name and place of business of the real estate broker on whose 43.24 behalf the salesperson is to be acting. 43.25 (d) Each application for a real estate closing agent 43.26 license shall give the applicant's name, age, residence address, 43.27 and the name and place of business of the closing agent. 43.28 (e) The commissioner may require such further information 43.29 as the commissioner deems appropriate to administer the 43.30 provisions and further the purposes of this chapter. 43.31 (f) Applicants for a real estate salesperson license shall 43.32 submit to the commissioner, along with the application for 43.33 licensure, a copy of the course completion certificate for 43.34 courses I, II, and III. 43.35 Sec. 25. Minnesota Statutes 2002, section 82.20, is 43.36 amended by adding a subdivision to read: 44.1 Subd. 3a. [APPLICATION FOR BROKER'S LICENSE.] After 44.2 successful completion of the real estate broker's examination, 44.3 an individual shall have one year from the date of the 44.4 examination to apply for a broker's license, unless the 44.5 individual is a salesperson who remains continuously active in 44.6 the real estate field as a licensee. Failure to apply for the 44.7 broker's license or to remain continuously active in the real 44.8 estate field will necessitate a reexamination. 44.9 Sec. 26. Minnesota Statutes 2002, section 82.20, 44.10 subdivision 4, is amended to read: 44.11 Subd. 4. [CORPORATE AND PARTNERSHIP LICENSES.] (a) A 44.12 corporation applying for a license shall have at least one 44.13 officer individually licensed to act as broker for the 44.14 corporation. The corporation broker's license shall extend no 44.15 authority to act as broker to any person other than the 44.16 corporate entity. Each officer who intends to act as a broker 44.17 shall obtain a license. 44.18 (b) A partnership applying for a license shall have at 44.19 least one partner individually licensed to act as broker for the 44.20 partnership. Each partner who intends to act as a broker shall 44.21 obtain a license. 44.22 (c) Applications for a license made by a corporation shall 44.23 be verified by the president and one other officer. 44.24 Applications made by a partnership shall be verified by at least 44.25 two partners. 44.26 (d) Any partner or officer who ceases to act as broker for 44.27 a partnership or corporation shall notify the commissioner upon 44.28 said termination. The individual licenses of all salespersons 44.29 acting on behalf of a corporation or partnership, are 44.30 automatically ineffective upon the revocation or suspension of 44.31 the license of the partnership or corporation. The commissioner 44.32 may suspend or revoke the license of an officer or partner 44.33 without suspending or revoking the license of the corporation or 44.34 partnership. 44.35 (e) The application of all officers of a corporation or 44.36 partners in a partnership who intend to act as a broker on 45.1 behalf of a corporation or partnership shall accompany the 45.2 initial license application of the corporation or partnership. 45.3 Officers or partners intending to act as brokers subsequent to 45.4 the licensing of the corporation or partnership shall procure an 45.5 individual real estate broker's license prior to acting in the 45.6 capacity of a broker. No corporate officer who maintains a 45.7 salesperson's license may exercise any authority over any trust 45.8 account administered by the broker nor may they be vested with 45.9 any supervisory authority over the broker. 45.10 (f) The corporation or partnership applicant shall make 45.11 available upon request, such records and data required by the 45.12 commissioner for enforcement of this chapter. 45.13 (g) The commissioner may require further information, as 45.14 the commissioner deems appropriate, to administer the provisions 45.15 and further the purposes of this chapter. 45.16 Sec. 27. Minnesota Statutes 2002, section 82.20, is 45.17 amended by adding a subdivision to read: 45.18 Subd. 7a. [AUTOMATIC TRANSFER OF SALESPERSON'S LICENSE.] A 45.19 salesperson may utilize the automatic license transfer 45.20 provisions of subdivision 9, clause (b), if the salesperson 45.21 commences association with the broker to whom the salesperson is 45.22 transferring, as evidenced by the dates of the signatures of 45.23 both brokers on the form prescribed by the commissioner, within 45.24 five days after terminating the salesperson's association with 45.25 the broker from whom the salesperson is transferring, provided 45.26 the salesperson's educational requirements are not past due. 45.27 A salesperson may not utilize the automatic license 45.28 transfer provisions of subdivision 9, clause (b), if the sales 45.29 person has failed to notify the commissioner within ten days of 45.30 any change of information contained in the salesperson's license 45.31 application on file with the commissioner or of a civil 45.32 judgment, disciplinary action, or criminal offense, which notice 45.33 is required pursuant to section 82.20, subdivision 11. 45.34 Sec. 28. Minnesota Statutes 2002, section 82.20, 45.35 subdivision 8, is amended to read: 45.36 Subd. 8. [TIMELY RENEWALS.] (a) Persons whose applications 46.1 have been properly and timely filed who have not received notice 46.2 of denial of renewal are deemed to have been approved for 46.3 renewal and may continue to transact business either as a real 46.4 estate broker, salesperson, or closing agent whether or not the 46.5 renewed license has been received on or before July 1 of the 46.6 renewal year. Application for renewal of a license shall be 46.7 deemed to have been timely filed if received by the commissioner 46.8 by, or mailed with proper postage and postmarked by, June 15 of 46.9 the renewal year. Applications for renewal shall be deemed 46.10 properly filed if made upon forms duly executed and sworn to, 46.11 accompanied by fees prescribed by this chapter and contain any 46.12 information which the commissioner may require. 46.13 (b) Persons who have failed to make a timely application 46.14 for renewal of a license and who have not received the renewal 46.15 license as of July 1 of the renewal year, shall be unlicensed 46.16 until such time as the license has been issued by the 46.17 commissioner and is received. 46.18 Sec. 29. Minnesota Statutes 2002, section 82.20, is 46.19 amended by adding a subdivision to read: 46.20 Subd. 8a. [PROCEDURE.] An application for automatic 46.21 transfer shall be made only on the form prescribed by the 46.22 commissioner. The transfer is ineffective if the form is not 46.23 completed in its entirety. 46.24 The form shall be accompanied by a $10 transfer fee, and 46.25 the license renewal fee, if applicable. Cash will not be 46.26 accepted. 46.27 The signature of the broker from whom the salesperson is 46.28 transferring must predate the signature of the broker to whom 46.29 the salesperson is transferring. The salesperson is unlicensed 46.30 for the period of time between the times and dates of both 46.31 signatures. The broker from whom the salesperson is 46.32 transferring shall sign and date the transfer application upon 46.33 the request of the salesperson and shall destroy the 46.34 salesperson's license immediately. 46.35 Sec. 30. Minnesota Statutes 2002, section 82.20, is 46.36 amended by adding a subdivision to read: 47.1 Subd. 9a. [EFFECTIVE DATE.] (a) The transfer is effective 47.2 when the broker to whom the salesperson is transferring signs 47.3 and dates the transfer application form, provided the 47.4 commissioner receives the form and fee within 72 hours after the 47.5 date and time of the new broker's signature, either by certified 47.6 mail, or personal delivery to the commissioner's office. The 47.7 commissioner may accept an application for license transfer made 47.8 by an electronic agent or an electronic record with an 47.9 electronic signature if the commissioner has the capability of 47.10 accepting the application electronically. In the event of a 47.11 delay in mail delivery, an application postmarked within 24 47.12 hours of the date of the signature of the new broker shall be 47.13 deemed timely received. The properly executed automatic 47.14 transfer form serves as a temporary real estate license for no 47.15 more than 45 days. 47.16 (b) The transfer is ineffective if the fee is paid by means 47.17 of a check, draft, or other negotiable or nonnegotiable 47.18 instrument or order of withdrawal drawn on an account with 47.19 insufficient funds. 47.20 (c) The salesperson shall retain the certified mail return 47.21 receipt, if the transfer application is delivered to the 47.22 commissioner by mail, retain a photocopy of the executed 47.23 transfer application, and provide a photocopy of the executed 47.24 transfer application to the broker from whom the salesperson is 47.25 transferring. 47.26 (d) The real estate salesperson automatic transfer must be 47.27 in the form prescribed by the commissioner. 47.28 Sec. 31. Minnesota Statutes 2002, section 82.20, is 47.29 amended by adding a subdivision to read: 47.30 Subd. 11a. [MANDATORY.] Licensees shall notify the 47.31 commissioner of the facts in subdivisions 11b to 11d. 47.32 Sec. 32. Minnesota Statutes 2002, section 82.20, is 47.33 amended by adding a subdivision to read: 47.34 Subd. 11b. [CIVIL JUDGMENT.] Licensees must notify the 47.35 commissioner in writing within ten days of a final adverse 47.36 decision or order of a court, whether or not the decision or 48.1 order is appealed, regarding any proceeding in which the 48.2 licensee was named as a defendant, and which alleged fraud, 48.3 misrepresentation, or the conversion of funds, if the final 48.4 adverse decision relates to the allegations of fraud, 48.5 misrepresentation, or the conversion of funds. 48.6 Sec. 33. Minnesota Statutes 2002, section 82.20, is 48.7 amended by adding a subdivision to read: 48.8 Subd. 11c. [DISCIPLINARY ACTION.] The licensee must notify 48.9 the commissioner in writing within ten days of the suspension or 48.10 revocation of the licensee's real estate or other occupational 48.11 license issued by this state or another jurisdiction. 48.12 Sec. 34. Minnesota Statutes 2002, section 82.20, is 48.13 amended by adding a subdivision to read: 48.14 Subd. 11d. [CRIMINAL OFFENSE.] The licensee must notify 48.15 the commissioner in writing within ten days if the licensee is 48.16 charged with, adjudged guilty of, or enters a plea of guilty or 48.17 nolo contendere to a charge of any felony, or of any gross 48.18 misdemeanor alleging fraud, misrepresentation, conversion of 48.19 funds, or a similar violation of any real estate licensing law. 48.20 Sec. 35. Minnesota Statutes 2002, section 82.20, is 48.21 amended by adding a subdivision to read: 48.22 Subd. 12a. [TEMPORARY BROKER'S PERMIT.] In the event of 48.23 death or incapacity of a broker, the commissioner may issue a 48.24 45-day temporary permit to an individual who has had a minimum 48.25 of two years actual experience as a licensed real estate 48.26 salesperson and who is otherwise reasonably qualified to act as 48.27 a broker. Upon application prior to its expiration, the 45-day 48.28 temporary permit shall be renewed once by the commissioner if 48.29 the applicant demonstrates that he or she has made a good faith 48.30 effort to obtain a broker's license within the preceding 45 days 48.31 and an extension of time will not harm the public interest. 48.32 Only those salespersons licensed to the deceased or 48.33 incapacitated broker at the time of death or incapacity may 48.34 conduct business for or on behalf of the person to whom the 48.35 temporary broker's license was issued. 48.36 Sec. 36. Minnesota Statutes 2002, section 82.20, is 49.1 amended by adding a subdivision to read: 49.2 Subd. 14a. [WITHDRAWAL OF LICENSE OR APPLICATION.] A 49.3 licensee or license applicant may at any time file with the 49.4 commissioner a request to withdraw from the status of licensee 49.5 or to withdraw a pending license application. Withdrawal from 49.6 the status of licensee or withdrawal of the license application 49.7 becomes effective 30 days after receipt of a request to withdraw 49.8 or within a shorter period the commissioner determines unless a 49.9 revocation, suspension, or denial proceeding is pending when the 49.10 request to withdraw is filed or a proceeding to revoke, suspend, 49.11 deny, or to impose conditions upon the withdrawal is instituted 49.12 within 30 days after the request to withdraw is filed. If a 49.13 proceeding is pending or instituted, withdrawal becomes 49.14 effective at the time and upon the conditions the commissioner 49.15 determines by order. If no proceeding is pending or instituted 49.16 and withdrawal automatically becomes effective, the commissioner 49.17 may institute a revocation or suspension proceeding within one 49.18 year after withdrawal became effective and enter a revocation or 49.19 suspension order as of the last date on which the license was in 49.20 effect. 49.21 Sec. 37. [82.201] [COMPUTATION OF TIME.] 49.22 Subdivision 1. [DAYS.] Where performing or doing any act, 49.23 duty, matter, payment, or thing is ordered or directed, and the 49.24 period of time or duration for performing or doing it is 49.25 prescribed and fixed by law, rule, or order, the time, except as 49.26 otherwise provided in subdivision 2, is computed so as to 49.27 exclude the first and include the last day of any such 49.28 prescribed or fixed period or duration of time. When the last 49.29 day of the period falls on Sunday or on any day made a legal 49.30 holiday, by the laws of this state or of the United States, the 49.31 day is omitted from the computation. 49.32 Subd. 2. [MONTHS.] When the lapse of a number of months 49.33 before or after a certain day is required by law, rule, or 49.34 order, the number of months is computed by counting the months 49.35 from the day, excluding the calendar month in which the day 49.36 occurs, and including the day of the month in the last month so 50.1 counted having the same numerical order as the day of the month 50.2 from which the computation is made, unless there be not so many 50.3 days in the last month so counted, in which case the period 50.4 computed shall expire with the last day of the month so counted. 50.5 Sec. 38. Minnesota Statutes 2002, section 82.21, is 50.6 amended by adding a subdivision to read: 50.7 Subd. 5. [CASH NOT ACCEPTED.] All fees must be paid by 50.8 check, draft, credit card, or other negotiable or nonnegotiable 50.9 instrument or order of withdrawal that is drawn against funds 50.10 held by a financial institution. Cash will not be accepted. 50.11 Sec. 39. Minnesota Statutes 2002, section 82.21, is 50.12 amended by adding a subdivision to read: 50.13 Subd. 6. [OVERPAYMENT OF FEES.] An overpayment of a fee 50.14 paid pursuant to this chapter shall be refunded within a 50.15 reasonable time after a letter requesting the refund is received 50.16 by the commissioner and signed by the person making the 50.17 overpayment. 50.18 Refunds shall not be given for other than overpayment of 50.19 fees. A request for a refund of an overpayment must be received 50.20 by the commissioner within six months of the date of deposit or 50.21 it will be forfeited. 50.22 Sec. 40. Minnesota Statutes 2002, section 82.22, is 50.23 amended by adding a subdivision to read: 50.24 Subd. 5a. [WAIVERS.] The commissioner may waive the real 50.25 estate licensing experience requirement for the broker's 50.26 examination. 50.27 (a) An applicant for a waiver shall provide evidence of: 50.28 (1) successful completion of a minimum of 90 quarter 50.29 credits or 270 classroom hours of real estate-related studies; 50.30 (2) a minimum of five consecutive years of practical 50.31 experience in real estate-related areas; or 50.32 (3) successful completion of 30 credits or 90 classroom 50.33 hours and three consecutive years of practical experience in 50.34 real estate-related areas. 50.35 (b) A request for a waiver shall be submitted to the 50.36 commissioner in writing and be accompanied by documents 51.1 necessary to evidence qualification as set forth in paragraph 51.2 (a). 51.3 (c) The waiver will lapse if the applicant fails to 51.4 successfully complete the broker's examination within one year 51.5 from the date of the granting of the waiver. 51.6 Sec. 41. Minnesota Statutes 2002, section 82.22, is 51.7 amended by adding a subdivision to read: 51.8 Subd. 5b. [FAILURE TO RENEW LICENSE.] If a license lapses 51.9 or becomes ineffective due to the licensee's failure to file a 51.10 timely renewal application or otherwise, the commissioner may 51.11 institute a revocation or suspension proceeding within two years 51.12 after the license was last effective and enter a revocation or 51.13 suspension order as of the last date on which the license was in 51.14 effect. 51.15 Sec. 42. Minnesota Statutes 2002, section 82.22, 51.16 subdivision 6, is amended to read: 51.17 Subd. 6. [INSTRUCTION; NEW LICENSES.] (a) Every applicant 51.18 for a salesperson's license shall be required to successfully 51.19 complete a course of study in the real estate field consisting 51.20 of 30 hours of instruction approved by the commissioner before 51.21 taking the examination specified in subdivision 1. Every 51.22 applicant for a salesperson's license shall be required to 51.23 successfully complete an additional course of study in the real 51.24 estate field consisting of 60 hours of instruction approved by 51.25 the commissioner, of which three hours shall consist of training 51.26 in state and federal fair housing laws, regulations, and rules, 51.27 and of which two hours must consist of training in laws and 51.28 regulations on agency representation and disclosure, before 51.29 filing an application for the license. This subdivision does 51.30 not apply to salespeople licensed in Minnesota before July 1, 51.31 1969. 51.32 (b)The commissioner may approve courses of study in the51.33real estate field offered in educational institutions of higher51.34learning in this state or courses of study in the real estate51.35field developed by and offered under the auspices of the51.36National Association of Realtors, its affiliates, or private52.1real estate schools. The commissioner shall not approve any52.2course offered by, sponsored by, or affiliated with any person52.3or company licensed to engage in the real estate business. The52.4commissioner may by rule prescribe the curriculum and52.5qualification of those employed as instructors.52.6(c)An applicant for a broker's license must successfully 52.7 complete a course of study in the real estate field consisting 52.8 of 30 hours of instruction approved by the commissioner, of 52.9 which three hours shall consist of training in state and federal 52.10 fair housing laws, regulations, and rules. The course must have 52.11 been completed within 12 months prior to the date of application 52.12 for the broker's license. 52.13(d)(c) An applicant for a real estate closing agent's 52.14 license must successfully complete a course of study relating to 52.15 closing services consisting of eight hours of instruction 52.16 approved by the commissioner. 52.17 Sec. 43. Minnesota Statutes 2002, section 82.22, is 52.18 amended by adding a subdivision to read: 52.19 Subd. 6a. [CHANGE OF APPLICATION INFORMATION.] The 52.20 commissioner must be notified in writing of a change of 52.21 information contained in the license application on file with 52.22 the commissioner within ten days of the change. 52.23 Sec. 44. Minnesota Statutes 2002, section 82.22, is 52.24 amended by adding a subdivision to read: 52.25 Subd. 6b. [CANCELLATION OF SALESPERSON'S OR BROKER'S 52.26 LICENSE.] A salesperson's or broker's license that has been 52.27 canceled for failure of a licensee to complete postlicensing 52.28 education requirements must be returned to the commissioner by 52.29 the licensee's broker within ten days of receipt of notice of 52.30 cancellation. The license shall be reinstated without 52.31 reexamination by completing the required instruction, filing an 52.32 application, and paying the fee for a salesperson's or broker's 52.33 license within two years of the cancellation date. 52.34 Sec. 45. Minnesota Statutes 2002, section 82.22, is 52.35 amended by adding a subdivision to read: 52.36 Subd. 6c. [PASSING GRADE FOR EXAMINATION.] A passing grade 53.1 for a salesperson's and broker's examination shall be a score of 53.2 75 percent or higher on the uniform portion and a score of 75 53.3 percent or higher on the state portion of the examination. 53.4 The commissioner shall not accept the scores of a person 53.5 who has cheated on an examination. Cheating on a real estate 53.6 examination shall be grounds for denying an application for a 53.7 broker's or salesperson's license. 53.8 Sec. 46. Minnesota Statutes 2002, section 82.22, 53.9 subdivision 8, is amended to read: 53.10 Subd. 8. [DURATION.] No renewal of a salesperson's license 53.11 shall be effective beyond a date two years after the granting of 53.12 such salesperson's license unless the salesperson has furnished 53.13 evidence of compliance witheither subdivisions 6 or 7section 53.14 82.22, subdivision 6. The commissioner shall cancel the license 53.15 of any salesperson who fails to comply withsubdivisions 6 or 753.16 section 82.22, subdivision 6. This subdivision shall not apply 53.17 to salespeople licensed in Minnesota prior to July 1, 1969. 53.18 Sec. 47. Minnesota Statutes 2002, section 82.22, 53.19 subdivision 12, is amended to read: 53.20 Subd. 12. [RECIPROCITY.] The requirements ofthis53.21sectionsubdivisions 6 and 13 may be waived for individuals of 53.22 other jurisdictions, provided: (1) a written reciprocal 53.23 licensing agreement is in effect between the commissioner and 53.24 the licensing officials of that jurisdiction, (2) the individual 53.25 is licensed in that jurisdiction, and (3) the licensing 53.26 requirements of that jurisdiction are substantially similar to 53.27 the provisions of this chapter. 53.28 Sec. 48. Minnesota Statutes 2002, section 82.22, 53.29 subdivision 13, is amended to read: 53.30 Subd. 13. [CONTINUINGEDUCATION.] (a) All real estate 53.31 salespersons and all real estate brokers shall be required to 53.32 successfully complete 30 hours of real estate continuing 53.33 education, either as a student or a lecturer, in courses of 53.34 study approved by the commissioner, during the initial license 53.35 period and during each succeeding 24-month license period. At 53.36 least 15 of the 30 credit hours must be completed during the 54.1 first 12 months of the 24-month licensing period. Licensees may 54.2 not claim credit for continuing education not actually completed 54.3 as of the date their report of continuing education compliance 54.4 is filed. 54.5 (b) The commissionershallmay adopt rules defining the 54.6 standards for course and instructor approval, and may adopt 54.7 rules for the proper administration ofthis subdivision54.8 prelicense instruction as required under section 82.22, 54.9 subdivision 6, and continuing education as required under this 54.10 section. The commissioner may not approve a course which can be 54.11 completed by the student at home or outside the classroom 54.12 without the supervision of an instructor except accredited 54.13 courses using new delivery technology, including interactive 54.14 technology, and the Internet. The commissioner may approve 54.15 courses of study in the real estate field offered in educational 54.16 institutions of higher learning in this state or courses of 54.17 study in the real estate field developed by and offered under 54.18 the auspices of the National Association of Realtors, its 54.19 affiliates, or private real estate schools. Courses in 54.20 motivation, salesmanship, psychology, or time management shall 54.21 not be approved by the commissioner for continuing education 54.22 credit. The commissioner may approve courses in any other 54.23 subjects, including, but not limited to, communication, 54.24 marketing, negotiation, and technology for continuing education 54.25 credit. 54.26 (c) Any program approved by Minnesota continuing legal 54.27 education shall be approved by the commissioner of commerce for 54.28 continuing education for real estate brokers and salespeople if 54.29 the program or any part thereof relates to real estate. 54.30 (d) As part of the continuing education requirements of 54.31 this section, the commissioner shall require that all real 54.32 estate brokers and salespersons receive: 54.33 (1) at least one hour of training during each license 54.34 period in courses in laws or regulations on agency 54.35 representation and disclosure; and 54.36 (2) at least one hour of training during each license 55.1 period in courses in state and federal fair housing laws, 55.2 regulations, and rules, other antidiscrimination laws, or 55.3 courses designed to help licensees to meet the housing needs of 55.4 immigrant and other underserved populations. 55.5 Clauses (1) and (2) do not apply to real estate 55.6 salespersons and real estate brokers engaged solely in the 55.7 commercial real estate business who file with the commissioner a 55.8 verification of this status along with the continuing education 55.9 report required under paragraph (a). 55.10 (e) The commissioner is authorized to establish a procedure 55.11 for renewal of course accreditation. 55.12 (f) Approved continuing education courses may be sponsored 55.13 or offered by a broker of a real estate company and may be held 55.14 on the premises of a company licensed under this chapter. 55.15 All continuing education course offerings must be open to any 55.16 interested individuals. Access may be restricted by the sponsor 55.17 based on class size only. Courses must not be approved if 55.18 attendance is restricted to any particular group of people. A 55.19 broker must comply with all continuing education rules 55.20 prescribed by the commissioner. The commissioner shall not 55.21 approve any prelicense instruction courses offered by, sponsored 55.22 by, or affiliated with any person or company licensed to engage 55.23 in the real estate business. 55.24 (g)No more than one-half of the credit hours per licensing55.25period, including continuing education required under55.26subdivision 6, may be credited to a person for attending any55.27combination of courses either:Credit may not be earned if the 55.28 licensee has previously obtained credit for the same course as 55.29 either a student or instructor during the same licensing period. 55.30(1) sponsored by, offered by, or affiliated with a real55.31estate company or its agents; or55.32(2) offered using new delivery technology, including55.33interactive technology, and the Internet.55.34 (h) The real estate education course completion certificate 55.35 must be in the form set forth by the commissioner. 55.36 Students are responsible for maintaining copies of course 56.1 completion certificates. 56.2 Sec. 49. Minnesota Statutes 2002, section 82.24, 56.3 subdivision 3, is amended to read: 56.4 Subd. 3. [NONDEPOSITABLE ITEMS.] In the event earnest 56.5 money or other down payments in a real estate transaction are 56.6 received by the broker or salesperson in the form of a 56.7 nondepositable item such as a note, bond, stock certificate, 56.8 treasury bill, or any other instrument or equity or thing of 56.9 value received by a broker, salesperson, or closing 56.10 agent received in lieu of cashas earnest money or down payment56.11in a real estate transactionshall beheld bydeposited 56.12 immediately with an authorized escrow agent, whose authority is 56.13 evidenced by a written agreement executed by the offeror and the 56.14 escrow agent. A receipt shall be issued to the buyer for the 56.15 value of the nondepositable item. 56.16 In the event the broker acts as the escrow agent, the 56.17 broker shall obtain written authority from the buyer and seller 56.18 to hold such items in escrow. In all cases, the parties shall 56.19 be advised of the details relative to the nondepositable item, 56.20 including the nature of the item, the amount, and in whose 56.21 custody such item is being held. The fact that such an item is 56.22 being held by the broker shall be duly recorded in the broker's 56.23 trust account records. 56.24 Sec. 50. Minnesota Statutes 2002, section 82.24, 56.25 subdivision 5, is amended to read: 56.26 Subd. 5. [TRUST ACCOUNTS.] (a) Each broker or closing 56.27 agent shall maintain and retain records of all trust funds and 56.28 trust accounts. The commissioner may prescribe information to 56.29 be included in the records by appropriate rules. 56.30 (b) Unless otherwise agreed upon in writing by the parties 56.31 to a transaction, the broker with whom trust funds are to be 56.32 deposited in satisfaction of subdivision 1 shall be the listing 56.33 broker. 56.34 (c) A check received from a potential buyer shall be 56.35 deposited into the listing broker's trust account not later than 56.36 the third business day after delivery of the check to the 57.1 broker, except that the check may be held by the listing broker 57.2 until acceptance or rejection of the offer if: 57.3 (1) the check by its terms is not negotiable by the broker 57.4 or if the potential buyer has given written instructions that 57.5 the check shall not be deposited nor cashed until acceptance or 57.6 shall be immediately returned if the offer is rejected; and 57.7 (2) the potential seller is informed that the check is 57.8 being so held before or at the time the offer is presented to 57.9 that person for acceptance. 57.10 If the offer is accepted, the check shall be deposited in a 57.11 neutral escrow depository or the trust fund account of the 57.12 listing broker not later than the third business day following 57.13 acceptance of the offer unless the broker has received written 57.14 authorization from all parties to the transaction to continue to 57.15 hold the check. If the offer is rejected, the check shall be 57.16 returned to the potential buyer not later than the next business 57.17 day after rejection. 57.18 (d) Trust funds must be maintained in a trust account until 57.19 disbursement is made in accordance with the terms of the 57.20 applicable agreements and proper accounting is made to the 57.21 parties entitled to an accounting. 57.22 Disbursement must be made within a reasonable time 57.23 following the consummation or termination of a transaction if 57.24 the applicable agreements are silent as to the time of 57.25 disbursement. 57.26 Sec. 51. Minnesota Statutes 2002, section 82.24, is 57.27 amended by adding a subdivision to read: 57.28 Subd. 9. [CONSENT TO PLACE IN SPECIAL ACCOUNT.] Trust 57.29 funds may be placed by the broker in a special account which may 57.30 be an interest-bearing account or certificate of deposit if the 57.31 buyer and the seller consent in writing to the special account 57.32 and to the disposition of the trust funds, including any 57.33 interest thereon. 57.34 Sec. 52. Minnesota Statutes 2002, section 82.24, is 57.35 amended by adding a subdivision to read: 57.36 Subd. 10. [LICENSEE AS PRINCIPAL.] Funds which would 58.1 constitute trust funds if received by a licensee acting as an 58.2 agent must, if received by a licensee acting as principal, be 58.3 placed in a trust account unless a written agreement signed by 58.4 all parties to the transaction specifies a different disposition 58.5 of the funds. The written agreement shall state that the funds 58.6 would otherwise be placed in a real estate trust account. 58.7 Sec. 53. Minnesota Statutes 2002, section 82.24, is 58.8 amended by adding a subdivision to read: 58.9 Subd. 11. [TRUST ACCOUNT RECORDS.] (a) Every broker shall 58.10 keep a record of all trust funds received, including notes, 58.11 savings certificates, uncashed or uncollected checks, or other 58.12 similar instruments. Said records shall set forth: 58.13 (1) date funds received; 58.14 (2) from whom received; 58.15 (3) amount received; 58.16 (4) with respect to funds deposited in a trust account, the 58.17 date of said deposit; 58.18 (5) with respect to funds previously deposited in a trust 58.19 account, the check number or date of related disbursements; and 58.20 (6) a monthly balance of the trust account. 58.21 Each broker shall maintain a formal trust cash receipts 58.22 journal and a formal cash disbursement journal, or similar 58.23 records, in accordance with generally accepted accounting 58.24 principles. All records and funds shall be subject to 58.25 inspection by the commissioner or an agent of the commissioner 58.26 at any time. 58.27 (b) Each broker shall keep a separate record for each 58.28 beneficiary or transaction, accounting for all funds therein 58.29 which have been deposited in the broker's trust bank account. 58.30 These records shall set forth information sufficient to identify 58.31 the transaction and the parties thereto. At a minimum, each 58.32 record shall set forth: 58.33 (1) the date funds are deposited; 58.34 (2) the amount deposited; 58.35 (3) the date of each related disbursement; 58.36 (4) the check number of each related disbursement; 59.1 (5) the amount of each related disbursement; and 59.2 (6) a description of each disbursement. 59.3 Sec. 54. [82.261] [GUARANTEED SALE PROGRAMS.] 59.4 If a broker advertises or offers a guaranteed sale program, 59.5 or other program whereby the broker undertakes to purchase real 59.6 property in the event he or she is unable to effectuate a sale 59.7 to a third party within a specified period of time, a written 59.8 disclosure that sets forth clearly and completely the general 59.9 terms and conditions under which the broker agrees to purchase 59.10 the property and the disposition of any profit at the time of 59.11 resale by the broker must be provided to the seller prior to the 59.12 execution of a listing agreement. 59.13 Sec. 55. Minnesota Statutes 2002, section 82.27, is 59.14 amended by adding a subdivision to read: 59.15 Subd. 8. [REVOCATIONS.] If the commissioner finds that any 59.16 licensee or applicant is no longer in existence or has ceased to 59.17 do business as a broker or salesperson or is subject to an 59.18 adjudication of mental incompetence or to the control of a 59.19 committee, conservator, or guardian, or cannot be located after 59.20 reasonable search, the commissioner may by order revoke the 59.21 license or deny the application. 59.22 Sec. 56. [82.36] [LOAN BROKERS.] 59.23 Subdivision 1. [COMPLIANCE.] Loan brokers shall comply 59.24 with the requirements of subdivisions 2 to 7. 59.25 Subd. 2. [CONTRACT PROVISIONS.] A loan broker shall enter 59.26 into a written contract with each customer and shall provide a 59.27 copy of the written contract to each customer at or before the 59.28 time of receipt of any fee or valuable consideration paid for 59.29 loan brokerage services. The written contract shall: 59.30 (1) identify the escrow account into which the fees or 59.31 consideration will be deposited; 59.32 (2) set forth the circumstances under which the loan broker 59.33 will be entitled to disbursement from the escrow account; 59.34 (3) set forth the circumstances under which the customer 59.35 will be entitled to a refund of all or part of the fee; 59.36 (4) specifically describe the services to be provided by 60.1 the loan broker and the dates by which the services will be 60.2 performed; 60.3 (5) state the maximum rate of interest to be charged on any 60.4 loan obtained; 60.5 (6) contain a statement which notifies the customer of his 60.6 or her rights to cancel the contract pursuant to subdivision 3; 60.7 (7) disclose, with respect to the 12-month period ending 60.8 ten business days prior to the date of the contract in question, 60.9 the percentage of the loan broker's customers for whom loans 60.10 have actually been funded as a result of the loan broker's 60.11 services. This disclosure need not be made for any period prior 60.12 to September 8, 1986; and 60.13 (8) disclose the cancellation rights and procedures set 60.14 forth in subdivision 3. 60.15 Subd. 3. [CANCELLATION.] Any customer of a loan broker who 60.16 pays a fee prior to the time a loan is actually funded shall 60.17 have an unconditional right to rescind the contract for loan 60.18 brokerage services at any time until midnight of the third 60.19 business day after the day on which the contract is signed. 60.20 Cancellation is evidenced by the customer giving written notice 60.21 of cancellation to the loan broker at the address stated in the 60.22 contract. Notice of cancellation, if given by mail, is 60.23 effective upon deposit in a mailbox properly addressed to the 60.24 loan broker with postage prepaid. Notice of cancellation need 60.25 not take a particular form and is sufficient if it indicates by 60.26 any form of written expression the intention of the customer not 60.27 to be bound by the contract. No act of a customer of a loan 60.28 broker shall be effective to waive the right to rescind as 60.29 provided in this subdivision. 60.30 Subd. 4. [ESCROW ACCOUNT.] The loan broker shall deposit 60.31 in an escrow account within 48 hours all fees received prior to 60.32 the time a loan is actually funded. The escrow account shall be 60.33 in a bank located within the state of Minnesota and shall be 60.34 controlled by an unaffiliated accountant, lawyer, or bank 60.35 officer or employee. 60.36 Subd. 5. [RECORDS.] The loan broker shall maintain a 61.1 separate record of all fees received for services performed or 61.2 to be performed as a loan broker. Each record shall set forth 61.3 the date funds are received, the person from whom the funds are 61.4 received, the amount received, the date of deposit in the escrow 61.5 account, the account number, the date the funds are disbursed 61.6 and the check number of the disbursement, and a description of 61.7 each disbursement and the justification for the disbursement. 61.8 Subd. 6. [MONTHLY STATEMENT.] The loan broker shall 61.9 provide to each customer at least monthly a detailed written 61.10 accounting of all disbursements of the customer's funds from the 61.11 trust account. 61.12 Subd. 7. [DISCLOSURE OF LENDERS.] The loan broker shall 61.13 provide to each customer at the expiration of the contract a 61.14 list of the lenders or loan sources to whom loan applications 61.15 were submitted on behalf of the customer. 61.16 Sec. 57. [82.37] [NEGOTIATIONS.] 61.17 Subdivision 1. [WRITTEN OFFERS.] All written offers to 61.18 purchase or lease shall be promptly submitted in writing to the 61.19 seller or lessor. 61.20 Subd. 2. [NONDISCLOSURE OF TERMS OF OFFER.] A licensee 61.21 shall not disclose the terms of an offer to another prospective 61.22 buyer or the licensee representing or assisting the buyer prior 61.23 to the presentation of the offer to the seller. 61.24 Subd. 3. [CLOSING COSTS.] Licensees shall disclose to a 61.25 buyer or a seller at or before the time an offer is written or 61.26 presented that the buyer or seller may be required to pay 61.27 certain closing costs, which may effectively reduce the proceeds 61.28 from the sale or increase the cash outlay at closing. 61.29 Subd. 4. [REQUIRED DOCUMENTS.] Licensees shall furnish to 61.30 the parties to the transaction at the time the documents are 61.31 signed or become available a true and accurate copy of listing 61.32 agreements, earnest money receipts, purchase agreements, 61.33 contracts for deed, option agreements, closing statements, 61.34 truth-in-housing forms, energy audits, and any other record, 61.35 instrument, or document that is material to the transaction and 61.36 that is in the licensee's possession. 62.1 Subd. 5. [CLOSING STATEMENT.] The listing broker or his or 62.2 her designee shall deliver to the seller, at the time of 62.3 closing, a complete and detailed closing statement setting forth 62.4 all of the receipts and disbursements handled by the broker for 62.5 the seller. The listing broker shall also deliver to the buyer, 62.6 at the time of closing, a complete and detailed statement 62.7 setting forth the disposition of all money received in the 62.8 transaction from the buyer. 62.9 Sec. 58. [82.46] [RENTAL SERVICES.] 62.10 Subdivision 1. [LICENSE.] A rental service shall obtain a 62.11 real estate broker's license before engaging in business or 62.12 holding itself out as being engaged in business. No person 62.13 shall act as a real estate salesperson on behalf of a rental 62.14 service without first obtaining a real estate salesperson's 62.15 license on behalf of the rental service. 62.16 Subd. 2. [DISSEMINATION OF UNIT INFORMATION.] A rental 62.17 service shall not provide information regarding a rental unit 62.18 without the express authority of the owner of the unit. 62.19 Subd. 3. [ADVERTISING.] A rental service shall not 62.20 advertise in a manner that is misleading with regards to fees 62.21 charged, services provided, the availability of rental units, or 62.22 rental terms or conditions. 62.23 Sec. 59. [82.48] [STANDARDS OF CONDUCT.] 62.24 Subdivision 1. [ACCESS TO GOVERNING STATUTES AND 62.25 RULES.] Every real estate office and branch office shall have a 62.26 current copy of this chapter and chapter 83 and the rules 62.27 adopted under those chapters, available for the use of licensees. 62.28 Access to the statutes and rules required by this section may be 62.29 made available through an electronic agent. 62.30 Subd. 2. [PENALTY FOR NONCOMPLIANCE.] The methods, acts, 62.31 or practices set forth in sections 82.19, subdivision 10; 62.32 82.191; 82.197; 82.22, subdivision 6a; 82.261; 82.37; and 62.33 subdivisions 1 and 3, are standards of conduct governing the 62.34 activities of real estate brokers and salespersons. Failure to 62.35 comply with these standards shall constitute grounds for license 62.36 denial, suspension, or revocation, or for censure of the 63.1 licensee. 63.2 Subd. 3. [RESPONSIBILITIES OF BROKERS.] (a) [SUPERVISION 63.3 OF PERSONNEL.] Brokers shall adequately supervise the activities 63.4 of their salespersons and employees. Supervision includes the 63.5 ongoing monitoring of listing agreements, purchase agreements, 63.6 other real estate-related documents which are prepared or 63.7 drafted by the broker's salespersons or employees or which are 63.8 otherwise received by the broker's office, and the review of all 63.9 trust account books and records. If an individual broker 63.10 maintains more than one place of business, each place of 63.11 business shall be under the broker's direction and supervision. 63.12 If a partnership or corporate broker maintains more than one 63.13 place of business, each place of business shall be under the 63.14 direction and supervision of an individual broker licensed to 63.15 act on behalf of the partnership or corporation. 63.16 The primary broker shall maintain records specifying the 63.17 name of each broker responsible for the direction and 63.18 supervision of each place of business. If an individual broker, 63.19 who may be the primary broker, is responsible for supervising 63.20 more than one place of business, the primary broker shall, upon 63.21 written request of the commissioner, file a written statement 63.22 specifying the procedures which have been established to ensure 63.23 that all salespersons and employees are adequately supervised. 63.24 Designation of another broker to supervise a place of business 63.25 does not relieve the primary broker of the ultimate 63.26 responsibility for the actions of licensees. 63.27 (b) [PREPARATION AND SAFEKEEPING OF DOCUMENTS.] Brokers 63.28 shall be responsible for the preparation, custody, safety, and 63.29 accuracy of all real estate contracts, documents, and records, 63.30 even though another person may be assigned these duties by the 63.31 broker. 63.32 (c) [DOCUMENTATION AND RESOLUTION OF COMPLAINTS.] Brokers 63.33 shall investigate and attempt to resolve complaints made 63.34 regarding the practices of any individual licensed to them and 63.35 shall maintain, with respect to each individual licensed to 63.36 them, a complaint file containing all material relating to any 64.1 complaints received in writing for a period of three years. 64.2 (d) [DISCLOSURE OF LISTED PROPERTY INFORMATION.] A broker 64.3 may allow any unlicensed person, who is authorized by the 64.4 broker, to disclose any factual information pertaining to the 64.5 properties listed with the broker, if the factual information is 64.6 provided to the unlicensed person in written form by the broker 64.7 representing or assisting the seller(s). 64.8 Sec. 60. [82.51] [UNCLAIMED PROPERTY ACT COMPLIANCE.] 64.9 Upon the initial application for a real estate broker's 64.10 license and upon each annual application for renewal, the 64.11 applicant or broker shall be required to inform the commissioner 64.12 of compliance with the requirements set forth in chapter 345 64.13 relating to unclaimed property. 64.14 Sec. 61. [REVISOR'S INSTRUCTION.] 64.15 The revisor of statutes shall renumber each section of 64.16 Minnesota Statutes listed in column A with the number listed in 64.17 column B. The revisor shall also make the necessary 64.18 cross-reference changes consistent with the renumbering. 64.19 Column A Column B 64.20 82.17, subdivision 13 82.17, subdivision 2 64.21 82.17, subdivision 10 82.17, subdivision 3 64.22 82.17, subdivision 3 82.17, subdivision 4 64.23 82.17, subdivision 11 82.17, subdivision 5 64.24 82.17, subdivision 14 82.17, subdivision 6 64.25 82.17, subdivision 15 82.17, subdivision 7 64.26 82.17, subdivision 16 82.17, subdivision 8 64.27 82.17, subdivision 17 82.17, subdivision 9 64.28 82.17, subdivision 18 82.17, subdivision 10 64.29 82.17, subdivision 19 82.17, subdivision 11 64.30 82.17, subdivision 20 82.17, subdivision 12 64.31 82.17, subdivision 2 82.17, subdivision 13 64.32 82.17, subdivision 21 82.17, subdivision 14 64.33 82.17, subdivision 22 82.17, subdivision 15 64.34 82.17, subdivision 9 82.17, subdivision 16 64.35 82.17, subdivision 8 82.17, subdivision 17 64.36 82.17, subdivision 4 82.17, subdivision 18 65.1 82.17, subdivision 5 82.17, subdivision 19 65.2 82.17, subdivision 23 82.17, subdivision 20 65.3 82.17, subdivision 12 82.17, subdivision 21 65.4 82.17, subdivision 24 82.17, subdivision 22 65.5 82.17, subdivision 6 82.17, subdivision 23 65.6 82.17, subdivision 7 82.17, subdivision 24 65.7 82.33 82.18 65.8 82.191 82.19 65.9 82.201 82.20 65.10 82.196 82.21, subdivision 1 65.11 82.195 82.21, subdivision 2 65.12 82.197 82.22 65.13 82.18 82.23 65.14 82.21 82.24 65.15 82.261 82.27 65.16 82.22, subdivision 1 82.29, subdivision 1 65.17 82.22, subdivision 11 82.29, subdivision 2 65.18 82.22, subdivision 4 82.29, subdivision 3 65.19 82.22, subdivision 2 82.29, subdivision 4 65.20 82.22, subdivision 5a 82.29, subdivision 5 65.21 82.22, subdivision 6c 82.29, subdivision 6 65.22 82.22, subdivision 3 82.29, subdivision 7 65.23 82.22, subdivision 6 82.29, subdivision 8 65.24 82.20, subdivision 2 82.31, subdivision 1 65.25 82.20, subdivision 3 82.31, subdivision 2 65.26 82.20, subdivision 3a 82.31, subdivision 3 65.27 82.20, subdivision 4 82.31, subdivision 4 65.28 82.22, subdivision 5 82.31, subdivision 5 65.29 82.22, subdivision 6a 82.31, subdivision 6 65.30 82.22, subdivision 13 82.32 65.31 82.22, subdivision 8 82.33, subdivision 1 65.32 82.20, subdivision 8, 65.33 paragraph (a) 82.33, subdivision 2 65.34 82.20, subdivision 8, 65.35 paragraph (b) 82.33, subdivision 3 65.36 82.22, subdivision 10 82.33, subdivision 4 66.1 82.22, subdivision 5b 82.33, subdivision 5 66.2 82.22, subdivision 6b 82.33, subdivision 6 66.3 82.20, subdivision 1 82.34, subdivision 1 66.4 82.20, subdivision 2a 82.34, subdivision 2 66.5 82.20, subdivision 5 82.34, subdivision 3 66.6 82.20, subdivision 6 82.34, subdivision 4 66.7 82.20, subdivision 7 82.34, subdivision 5 66.8 82.20, subdivision 9, 66.9 paragraphs (a) and (b) 82.34, subdivision 6 66.10 82.20, subdivision 7a 82.34, subdivision 7 66.11 82.20, subdivision 8a 82.34, subdivision 8 66.12 82.20, subdivision 9a 82.34, subdivision 9 66.13 82.20, subdivision 9, 66.14 paragraph (c) 82.34, subdivision 10 66.15 82.20, subdivision 12 82.34, subdivision 11 66.16 82.20, subdivision 12a 82.34, subdivision 12 66.17 82.20, subdivision 13 82.34, subdivision 13 66.18 82.20, subdivision 14 82.34, subdivision 14 66.19 82.20, subdivision 14a 82.34, subdivision 15 66.20 82.20, subdivision 15 82.34, subdivision 16 66.21 82.27, subdivision 1 82.35, subdivision 1 66.22 82.20, subdivision 10 82.35, subdivision 2 66.23 82.27, subdivision 2 82.35, subdivision 3 66.24 82.27, subdivision 2a 82.35, subdivision 4 66.25 82.27, subdivision 3 82.35, subdivision 5 66.26 82.27, subdivision 4 82.35, subdivision 6 66.27 82.27, subdivision 5 82.35, subdivision 7 66.28 82.27, subdivision 6 82.35, subdivision 8 66.29 82.27, subdivision 7 82.35, subdivision 9 66.30 82.27, subdivision 8 82.35, subdivision 10 66.31 82.31 82.38 66.32 82.20, subdivision 11 82.39, subdivision 1 66.33 82.20, subdivision 11a 82.39, subdivision 2 66.34 82.20, subdivision 11b 82.39, subdivision 3 66.35 82.20, subdivision 11c 82.39, subdivision 4 66.36 82.20, subdivision 11d 82.39, subdivision 5 67.1 82.32 82.40 67.2 82.19, subdivision 1 82.41, subdivision 1 67.3 82.19, subdivision 2 82.41, subdivision 2 67.4 82.19, subdivision 3 82.41, subdivision 3 67.5 82.19, subdivision 4 82.41, subdivision 4 67.6 82.19, subdivision 4a 82.41, subdivision 5 67.7 82.19, subdivision 5 82.41, subdivision 6 67.8 82.19, subdivision 6 82.41, subdivision 7 67.9 82.19, subdivision 7 82.41, subdivision 8 67.10 82.19, subdivision 8 82.41, subdivision 9 67.11 82.19, subdivision 9 82.41, subdivision 10 67.12 82.19, subdivision 10 82.41, subdivision 11 67.13 82.19, subdivision 11 82.41, subdivision 12 67.14 82.19, subdivision 12 82.41, subdivision 13 67.15 82.29 82.42 67.16 82.34 82.43 67.17 82.22, subdivision 12 82.44 67.18 82.23, subdivision 2 82.45, subdivision 1 67.19 82.23, subdivision 3 82.45, subdivision 2 67.20 82.23, subdivision 1 82.45, subdivision 3 67.21 82.28 82.47 67.22 82.176 82.49 67.23 82.24, subdivision 1 82.50, subdivision 1 67.24 82.24, subdivision 2 82.50, subdivision 2 67.25 82.24, subdivision 3 82.50, subdivision 3 67.26 82.24, subdivision 4 82.50, subdivision 4 67.27 82.24, subdivision 5 82.50, subdivision 5 67.28 82.24, subdivision 6 82.50, subdivision 6 67.29 82.24, subdivision 7 82.50, subdivision 7 67.30 82.24, subdivision 8 82.50, subdivision 8 67.31 82.24, subdivision 9 82.50, subdivision 9 67.32 82.24, subdivision 10 82.50, subdivision 10 67.33 82.24, subdivision 11 82.50, subdivision 11 67.34 Sec. 62. [REPEALER.] 67.35 (a) Minnesota Statutes 2002, section 82.22, subdivision 9, 67.36 is repealed. 68.1 (b) Minnesota Rules, parts 2800.0100; 2800.0200; 2800.0300; 68.2 2800.1100; 2800.1200; 2800.1300; 2800.1400; 2800.1500; 68.3 2800.1600; 2800.1700; 2800.1750; 2800.1751; 2800.1800; 68.4 2800.1900; 2800.2000; 2800.2100; 2800.2150; 2805.0100; 68.5 2805.0200; 2805.0300; 2805.0400; 2805.0500; 2805.0600; 68.6 2805.0700; 2805.0800; 2805.0900; 2805.1000; 2805.1100; 68.7 2805.1300; 2805.1400; 2805.1500; 2805.1600; 2805.1700; 68.8 2805.1800; 2805.1900; and 2805.2000, are repealed.