2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to real property; making changes in 1.3 provisions about certificates of title and the Common 1.4 Interest Ownership Act; making miscellaneous changes 1.5 to alter real property provisions; amending Minnesota 1.6 Statutes 1998, sections 40A.10, subdivisions 1 and 3; 1.7 40A.11, subdivision 4; 47.20, subdivision 2; 51A.02, 1.8 subdivision 29; 60C.09, subdivision 1; 83.20, 1.9 subdivisions 11 and 14; 103F.612, subdivisions 2 and 1.10 4; 103F.613, subdivision 3; 103I.235, subdivision 1; 1.11 238.22, subdivision 3; 273.124, subdivision 2; 1.12 297H.01, subdivision 8; 327C.095, subdivision 5; 1.13 357.18, subdivision 1; 359.02; 386.31; 389.09; 1.14 428A.11, subdivisions 4 and 6; 462C.02, subdivisions 4 1.15 and 5; 462C.05, subdivision 1; 473H.02, subdivision 6; 1.16 473H.05, subdivision 1; 473H.06, subdivisions 1 and 2; 1.17 473H.08, subdivision 4; 500.20, subdivision 2a; 1.18 505.08, subdivision 3; 507.421; 508.14; 508.24, 1.19 subdivision 2; 508.25; 508.35; 508.36; 508.38; 508.40; 1.20 508.421, subdivision 2; 508.47, subdivision 4; 508.49; 1.21 508.51, subdivision 1; 508.52; 508.55; 508.56; 508.57; 1.22 508.58; 508.59; 508.61, subdivisions 2 and 3; 508.67; 1.23 508.68; 508.71, subdivisions 2, 4, 5, 6, and by adding 1.24 a subdivision; 508.76; 508.82, subdivision 1; 508A.10; 1.25 508A.11, subdivision 3; 508A.22, subdivisions 2 and 3; 1.26 508A.25; 508A.35; 508A.38; 508A.40; 508A.421, 1.27 subdivision 2; 508A.47, subdivision 4; 508A.49; 1.28 508A.51, subdivision 1; 508A.52; 508A.55; 508A.56; 1.29 508A.57; 508A.58; 508A.59; 508A.61, subdivisions 2 and 1.30 3; 508A.71, subdivisions 2, 3, 5, 6, and by adding a 1.31 subdivision; 508A.72; 508A.76; 508A.82, subdivision 1; 1.32 508A.85, subdivisions 3 and 4; 515B.1-102; 515B.1-103; 1.33 515B.1-116; 515B.2-101; 515B.2-104; 515B.2-105; 1.34 515B.2-108; 515B.2-109; 515B.2-110; 515B.2-113; 1.35 515B.2-118; 515B.2-119; 515B.2-121; 515B.2-122; 1.36 515B.3-103; 515B.3-105; 515B.3-106; 515B.3-110; 1.37 515B.3-113; 515B.3-115; 515B.3-116; 515B.3-121; 1.38 515B.4-101; 515B.4-102; 515B.4-106; 515B.4-107; 1.39 515B.4-108; 515B.4-111; 515B.4-115; 524.2-201; 559.21, 1.40 subdivision 2a; and 582.32, subdivision 5; proposing 1.41 coding for new law in Minnesota Statutes, chapters 1.42 386; and 515B; repealing Minnesota Statutes 1998, 1.43 sections 473H.02, subdivision 11; 473H.05, subdivision 1.44 3; 508.405; 508.421, subdivision 1; 508.44; 508.45; 1.45 508.51, subdivision 2; 508.835; 508A.421, subdivision 1.46 1; 508A.44; 508A.45; 508A.51, subdivision 2; and 2.1 508A.835. 2.2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.3 ARTICLE 1 2.4 Section 1. Minnesota Statutes 1998, section 40A.10, 2.5 subdivision 1, is amended to read: 2.6 Subdivision 1. [CONTENTS.] An eligible person may apply to 2.7 the county in which the land is located for the creation of an 2.8 agricultural preserve on forms provided by the commissioner. In 2.9 case a preserve is located in more than one county, the 2.10 application must be submitted to the county in which the 2.11 majority of the land is located. The application shall be 2.12 executed and acknowledged in the manner required by law to 2.13 execute and acknowledge a deed and must contain at least the 2.14 following information and other information the commissioner 2.15 requires: 2.16 (a) Legal description of the area to be designated and 2.17 parcel identification numbers where designated by the county 2.18 auditor; 2.19 (b) Name and address of the owner; 2.20 (c) Awitnessed signature ofstatement by the owner 2.21 covenanting that the land will be kept in exclusive agricultural 2.22 use and will be used in accordance with the provisions of this 2.23 chapter that exist on the date of application;and providing 2.24(d) A statementthat the restrictive covenant will be 2.25 binding on the owner or the owner's successor or assignee, and 2.26 will run with the land. 2.27In the case of registered property, the owner shall submit2.28the owner's duplicate certificate of title along with the2.29application.2.30 Sec. 2. Minnesota Statutes 1998, section 40A.10, 2.31 subdivision 3, is amended to read: 2.32 Subd. 3. [RECORDING.] Within five days of the date of 2.33 application, the county shall forward the application to the 2.34 county recorder, together with the owner's duplicate certificate2.35of title in the case of registered propertyfor recording, or to 2.36 the registrar of titles for filing if the land is registered. 3.1 The county recorder shall record the application containing the 3.2 restrictive covenant and return it to the applicant.In the3.3case of registered property, the recorderIf the land is 3.4 registered, the registrar of titles shall memorialize 3.5 the application containing the restrictive covenant upon the 3.6 certificate of titleand the owner's duplicate certificate of3.7title. The recorder or registrar of titles shall notify the 3.8 county that thecovenantapplication has been recorded or 3.9 memorialized. 3.10 Sec. 3. Minnesota Statutes 1998, section 40A.11, 3.11 subdivision 4, is amended to read: 3.12 Subd. 4. [NOTICE AND RECORDING; TERMINATION.] When the 3.13 county receives notice under subdivision 2 or serves notice 3.14 under subdivision 3, the county shall forward the original 3.15 notice to the county recorder for recording, or to the registrar 3.16 of titles if the land is registered, and shall notify the 3.17 regional development commission, the commissioner, and the 3.18 county soil and water conservation district of the date of 3.19 expiration. Designation as an agricultural preserve and the 3.20 benefits and limitations contained in this chapter and the 3.21 restrictive covenant filed with the application cease on the 3.22 date of expiration.In the case of registered property, the3.23county recorderIf the land is registered, the registrar of 3.24 titles shall cancel the memorial of the application containing 3.25 the restrictive covenant upon the certificate of titleand the3.26owner's duplicate certificate of titleon the effective date of 3.27 the expiration. 3.28 Sec. 4. Minnesota Statutes 1998, section 103F.612, 3.29 subdivision 2, is amended to read: 3.30 Subd. 2. [APPLICATION.] (a) A wetland owner may apply to 3.31 the county where a wetland is located for designation of a 3.32 wetland preservation area in a high priority wetland area 3.33 identified in a comprehensive local water plan, as defined in 3.34 section 103B.3363, subdivision 3, and located within a high 3.35 priority wetland region designated by the board of water and 3.36 soil resources, if the county chooses to accept wetland 4.1 preservation area applications. The application must be made on 4.2 forms provided by the board. If a wetland is located in more 4.3 than one county, the application must be submitted to the county 4.4 where the majority of the wetland is located. 4.5 (b) The application shall be executed and acknowledged in 4.6 the manner required by law to execute and acknowledge a deed and 4.7 must contain at least the following information and other 4.8 information the board of soil and water resources requires: 4.9 (1) legal description of the area to be approved, which 4.10 must include an upland strip at least 16-1/2 feet in width 4.11 around the perimeter of wetlands within the area and may include 4.12 total upland area of up to four acres for each acre of wetland; 4.13 (2) parcel identification numbers where designated by the 4.14 county auditor; 4.15 (3) name and address of the owner; 4.16 (4) awitnessed signature ofstatement by the owner 4.17 covenanting that the land will be preserved as a wetland and 4.18 will only be used in accordance with conditions prescribed by 4.19 the board of water and soil resources;and providing 4.20(5) a statementthat the restrictive covenant will be 4.21 binding on the owner and the owner's successors or assigns, and 4.22 will run with the land. 4.23 (c) The upland strip required in paragraph (b), clause (1), 4.24 must be planted with permanent vegetation other than a noxious 4.25 weed. 4.26(d) For registered property, the owner shall submit the4.27owner's duplicate certificate of title with the application.4.28 Sec. 5. Minnesota Statutes 1998, section 103F.612, 4.29 subdivision 4, is amended to read: 4.30 Subd. 4. [RECORDING.] Within five days of the date of 4.31 application, the county shall forward the application to the 4.32 county recorder, with the owner's duplicate certificate of title4.33in the case of registered propertyfor recording or to the 4.34 registrar of titles for filing if the land is registered. The 4.35 county recorder shall record the application containing the 4.36 restrictive covenant and return it to the applicant.In the5.1case of registered property, the recorderIf the land is 5.2 registered, the registrar of titles shall memorialize the 5.3 application containing the restrictive covenant upon the 5.4 certificate of titleand the owner's duplicate certificate of5.5title. The recorder or registrar of titles shall notify the 5.6 county that thecovenantapplication has been recorded or 5.7 memorialized. 5.8 Sec. 6. Minnesota Statutes 1998, section 103F.613, 5.9 subdivision 3, is amended to read: 5.10 Subd. 3. [NOTICE AND RECORDING; TERMINATION.] When the 5.11 county receives notice under subdivision 2, the county shall 5.12 forward the original notice to the county recorder for recording 5.13 or to the registrar of titles for filing if the land is 5.14 registered and shall notify the regional development commission, 5.15 where applicable, the board of water and soil resources, and the 5.16 county soil and water conservation district of the date of 5.17 expiration. The benefits and limitations of the wetland 5.18 preservation area and the restrictive covenant filed with the 5.19 application cease on the date of expiration.For registered5.20property, the county recorderIf the land is registered, the 5.21 registrar of titles shall cancel the memorial of the application 5.22 containing the restrictive covenant upon the certificate of 5.23 titleand the owner's duplicate certificate of titleon the 5.24 effective date of the expiration. 5.25 Sec. 7. [386.071] [DOCUMENTS MISFILED.] 5.26 The county recorder may reasonably rely on the affirmative 5.27 representation of the party presenting instruments for filing as 5.28 to whether the land described in the instruments or any part of 5.29 it is registered or unregistered. A party who requests that 5.30 misfiled instruments be refiled with the registrar is 5.31 responsible for paying any additional fees required to properly 5.32 file any instrument misfiled because of an incorrect 5.33 representation and, if applicable, to enter a new certificate of 5.34 title. 5.35 Sec. 8. Minnesota Statutes 1998, section 473H.02, 5.36 subdivision 6, is amended to read: 6.1 Subd. 6. [COVENANTAGREEMENT.] "Covenantagreement" means 6.2 a restrictive covenant initiated by the owner andevidenced by6.3an agreementcontained in the application provided for in 6.4 section 473H.05 whereby the owner places the limitations on 6.5 specified land and receives the protections and benefits 6.6 contained in sections 473H.02 to 473H.17. 6.7 Sec. 9. Minnesota Statutes 1998, section 473H.05, 6.8 subdivision 1, is amended to read: 6.9 Subdivision 1. [BEFORE MARCH 1 FOR NEXT YEAR'S TAXES.] An 6.10 owner or owners of certified long term agricultural land may 6.11 apply to the authority with jurisdiction over the land on forms 6.12 provided by the commissioner of agriculture for the creation of 6.13 an agricultural preserve at any time.If the land to be placed6.14in a preserve is registered property, the owner shall submit the6.15owner's duplicate certificate of title together with the6.16application.Land for which application is received prior to 6.17 March 1 of any year shall be assessed pursuant to section 6.18 473H.10 for taxes payable in the following year. Land for which 6.19 application is received on or after March 1 of any year shall be 6.20 assessed pursuant to section 473H.10 in the following year. The 6.21 application shall be executed and acknowledged in the manner 6.22 required by law to execute and acknowledge a deed and shall 6.23 contain at least the following information and such other 6.24 information as the commissioner deems necessary: 6.25 (a) Legal description of the area proposed to be designated 6.26 and parcel identification numbers if so designated by the county 6.27 auditor and the certificate of title number if the land is 6.28 registered; 6.29 (b) Name and address of owner; 6.30 (c) An affidavit by the authority evidencing that the land 6.31 is certified long term agricultural land at the date of 6.32 application; 6.33 (d) Awitnessed signature ofstatement by the owner 6.34 covenanting that the land shall be kept in agricultural use, and 6.35 shall be used in accordance with the provisions of sections 6.36 473H.02 to 473H.17 which exist on the date of application;and 7.1 providing 7.2(e) A statementthat the restrictive covenant shall be 7.3 binding on the owner or the owner's successor or assignee, and 7.4 shall run with the land. 7.5 Sec. 10. Minnesota Statutes 1998, section 473H.06, 7.6 subdivision 1, is amended to read: 7.7 Subdivision 1. [APPLICATION.] Upon receipt of an 7.8 application, the authority shall determine if all material 7.9 required in section 473H.05 has been submitted and, if so, shall 7.10 determine that the application is complete. When used in this 7.11 chapter, the term "date of application" means the date the 7.12 application is determined complete by the authority. Within 7.13 five days of the date of application, the authority shall 7.14 forward the completed and signed application to the county 7.15 recorder,together with the owner's duplicate certificate of7.16title in the case of registered property,and copies to the 7.17 county auditor, the county assessor, the metropolitan council, 7.18 and the county soil and water conservation district. 7.19 Sec. 11. Minnesota Statutes 1998, section 473H.06, 7.20 subdivision 2, is amended to read: 7.21 Subd. 2. [RECORDING; MEMORIALIZATION.] The county recorder 7.22 shall record the application containing the restrictive covenant 7.23 and return it to the applicant. If thepropertyland is 7.24 registeredproperty, therecorderregistrar of titles shall 7.25 memorialize the application containing the restrictive covenant 7.26 uponpresentation of the owner's duplicatethe certificate of 7.27 title. The authority shall be notified by the recorder or 7.28 registrar of titles that thecovenantapplication has been 7.29 recorded or memorialized. 7.30 Sec. 12. Minnesota Statutes 1998, section 473H.08, 7.31 subdivision 4, is amended to read: 7.32 Subd. 4. [NOTICE TO OTHERS.] Upon receipt of the notice 7.33 provided in subdivision 2, or upon notice served by the 7.34 authority as provided in subdivision 3, the authority shall 7.35 forward the original notice to the county recorder for 7.36 recording, or to the registrar of titles if the land is 8.1 registered, and shall notify the county auditor, county 8.2 assessor, the metropolitan council, and the county soil and 8.3 water conservation district of the date of expiration. 8.4 Designation as an agricultural preserve and all benefits and 8.5 limitations accruing through sections 473H.02 to 473H.17 for the 8.6 preserve shall cease on the date of expiration. The restrictive 8.7 covenantfiled withcontained in the application shall terminate 8.8 on the date of expiration. 8.9 Sec. 13. Minnesota Statutes 1998, section 508.14, is 8.10 amended to read: 8.11 508.14 [SURVEY IN CERTAIN COUNTIES.] 8.12 In any county of this state having more than 200,000 8.13 inhabitants, the county surveyor thereof shall, at the request 8.14 of the examiner of titles for such county, make a survey of the 8.15 plat described in any application for registration under this 8.16 chapter, and file with the court administrator of the district 8.17 court of such county a plat of such land, duly certified, 8.18 showing the dimensions of the land, the location of all 8.19 structures, fences, and other improvements thereon and such 8.20 other facts as may be required by the examiner. The surveyor 8.21 shall also at the request of the registrar of titles of such 8.22 county, make a survey of any registered land designated by the 8.23 registrar and file with such registrar a plat of such land, duly 8.24 certified showing its dimensions and such other facts as the 8.25 registrar may require. Such plat shall be numbered and entered 8.26 as a memorial on theoriginal owner's duplicatecertificate of 8.27 title of such land and transferred with each subsequent 8.28 certificate of title affecting such land. In any county in 8.29 which the county surveyor receives fees in lieu of a salary, the 8.30 county surveyor shall be paid such compensation for services as 8.31 the county board may determine; in all other counties, the 8.32 county surveyor shall receive no other compensation than the 8.33 salary paid for other county work. 8.34 Sec. 14. Minnesota Statutes 1998, section 508.24, 8.35 subdivision 2, is amended to read: 8.36 Subd. 2. [PETITION; NONMETROPOLITAN COUNTIES.] The 9.1 registered owner of land in counties not containing a city of 9.2 the first class may apply by verified petition to the district 9.3 court of the county wherein the land is situated for its 9.4 withdrawal from registration. The application shall be heard by 9.5 the district court on not less than 20 days' written notice to 9.6 all persons appearing of record or known to the petitioner to 9.7 have or claim an interest in the property. The notice shall be 9.8 served in the manner provided by law for the service of a 9.9 summons in a civil action in the district court unless otherwise 9.10 specified by the court. At the hearing any person interested in 9.11 any manner in the land or who may be affected by its withdrawal 9.12 from registration, may appear and be heard in favor of or in 9.13 opposition to the application. After hearing the court may 9.14 order that the land be withdrawn from registration, subject to 9.15 encumbrances, liens, and other incidents of title then existing, 9.16 and if so ordered shall require that a certified copy of the 9.17 order, a certified copy of the original decree of registration, 9.18 and certified copies of all undischarged instruments 9.19 memorialized on the certificate of title, be recorded in the 9.20 office of the county recorder at the expense of the petitioner. 9.21 In its order the court shall reconcile any differences in 9.22 description of the land as originally registered and as 9.23 described in the last certificate of title. Upon the recording 9.24 of the instruments and upon filing a certified copy of the order 9.25 in the office of the registrar of titles,and surrender to the9.26registrar of the duplicates of the last certificate of title,9.27 the land shall be withdrawn from registration and become 9.28 unregistered property. 9.29 Sec. 15. Minnesota Statutes 1998, section 508.25, is 9.30 amended to read: 9.31 508.25 [RIGHTS OF PERSON HOLDING CERTIFICATE OF TITLE.] 9.32 Every person receiving a certificate of title pursuant to a 9.33 decree of registration and every subsequent purchaser of 9.34 registered land who receives a certificate of title in good 9.35 faith and for a valuable consideration shall hold it free from 9.36 all encumbrances and adverse claims, excepting only the estates, 10.1 mortgages, liens, charges, and interests as may be noted in the 10.2 last certificate of title in the office of the registrar, and 10.3 also excepting any of the following rights or encumbrances 10.4 subsisting against it, if any: 10.5 (1) liens, claims, or rights arising or existing under the 10.6 laws or the constitution of the United States, which this state 10.7 cannot require to appear of record; 10.8 (2) the lien of any real property tax or special assessment 10.9for which the land has not been sold at the date of the10.10certificate of title; 10.11 (3) any lease for a period not exceeding three years when 10.12 there is actual occupation of the premises thereunder; 10.13 (4) all rights in public highways upon the land; 10.14 (5) the right of appeal, or right to appear and contest the 10.15 application, as is allowed by this chapter; 10.16 (6) the rights of any person in possession under deed or 10.17 contract for deed from the owner of the certificate of title; 10.18 and 10.19 (7) any outstanding mechanics lien rights which may exist 10.20 under sections 514.01 to 514.17. 10.21 No existing or future lien for state taxes arising under 10.22 the laws of this state for the nonpayment of any amounts due 10.23 under chapter 268 or any tax administered by the commissioner of 10.24 revenue may encumber title to lands registered under this 10.25 chapter unless filed under the terms of this chapter. 10.26 Sec. 16. Minnesota Statutes 1998, section 508.35, is 10.27 amended to read: 10.28 508.35 [FORM OF CERTIFICATE.] 10.29 The certificate of title shall contain the name and 10.30 residence of the owner, a description of the land, and of the 10.31 estate of the owner therein, and shall by memorial contain a 10.32 description of all encumbrances, liens, and interests in which 10.33 the estate of the owner is subject. It shall state whether the 10.34 owner is 18 years of age or older and, if under any legal 10.35 incapacity, the nature of it. It shall also state whether or 10.36 not the owner is married and, if married, the name of the 11.1 spouse. In case the land is held in trust or subject to any 11.2 condition or limitation, it shall state the nature and character 11.3 of it. It shall be substantially in the following form: 11.4 CERTIFICATE OF TITLE 11.5 First certificate of title, pursuant to the order of the 11.6 district court, ............... judicial district, county of 11.7 ................., and state of Minnesota, date................, 11.8 ....... 11.9 REGISTRATION 11.10 State of Minnesota ) 11.11 ) ss. 11.12 County of .................... ) 11.13 This is to certify that ..............., residing at 11.14 ..............., in the .................... of 11.15 ...................., county of ...................., and state 11.16 of ...................., is now the owner of an estate,to-wit,11.17 ......................... of and in the following described land 11.18 situated in the county of ............... and state of 11.19 Minnesota,to-wit,......................... 11.20 Subject to the encumbrances, liens, and interest noted by 11.21 the memorial underwritten or endorsed hereon; and subject to the 11.22 following rights or encumbrances subsisting, as provided in Laws 11.23 1905, chapter 305, section 24, namely: 11.24 (1) Liens, claims, or rights arising under the laws or the 11.25 Constitution of the United States, which the statutes of this 11.26 state cannot require to appear of record; 11.27 (2) Any real property tax or special assessmentfor which a11.28sale of the land has not been had at the date of the certificate11.29of title; 11.30 (3) Any lease for a period not exceeding three years, when 11.31 there is actual occupation of the premises under the lease; 11.32 (4) All rights in public highways upon the land; 11.33 (5) Such right of appeal or right to appear and contest the 11.34 application as is allowed by law; 11.35 (6) The rights of any person in possession under deed or 11.36 contract for deed from the owner of the certificate of title; 12.1 (7) Any outstanding mechanics lien rights which may exist 12.2 under sections 514.01 to 514.17. 12.3 That the said .......................... (is/is not) of the 12.4 age of 18 years or older, is under no legal incapacity except 12.5 ......................... and is (single/married to 12.6 .........................), who (is/is not) of the age of 18 12.7 years or older and is under no legal incapacity except 12.8 ......................... 12.9 In witness whereof, I have hereunto subscribed my name and 12.10 affixed the seal of my office, this ............... day of 12.11 ..........., .......... 12.12 ............................................. 12.13 Registrar of Titles, in and for the county of 12.14 ..................... and State of Minnesota. 12.15 All certificates issued subsequent to the first certificate 12.16 of title shall be in like form except that they shall be 12.17 entitled "Transfer from number (here give the number of the next 12.18 previous certificate relating to the same land)," and shall also 12.19 contain the words "Originally registered (date, volume, and page 12.20 of registration)." 12.21 Sec. 17. Minnesota Statutes 1998, section 508.36, is 12.22 amended to read: 12.23 508.36 [CERTIFICATES AND COPIES AS EVIDENCE.] 12.24 Theoriginalcertificate of title in the register of 12.25 titles, any copy of it duly certified by the registrar, or by a 12.26 deputy, and authenticated by the registrar's seal, and likewise12.27the owner's duplicate certificate of titleshall be received in 12.28 evidence in all the courts of this state and be conclusive 12.29 evidence of all matters and things contained in it.In case of12.30variance between the owner's duplicate certificate and the12.31original certificate of title, the original certificate shall12.32prevail.Deeds, mortgages, leases, or other conveyances of real 12.33 estate, and all instruments in any manner affecting the title to 12.34 registered land, together with any notations, endorsements, or 12.35 memorials upon the same made by the registrar of titles, as 12.36 required by law, heretofore or hereafter filed with the 13.1 registrar, shall be received in evidence in all the courts of 13.2 this state, without further or other proof, and be prima facie 13.3 evidence of the contents of it. Duly authenticated copies of 13.4 these instruments, or any of them, may likewise be received in 13.5 evidence in any court in this state with like force and effect 13.6 as the original instruments. 13.7 Sec. 18. Minnesota Statutes 1998, section 508.38, is 13.8 amended to read: 13.9 508.38 [FORMS OF RECORDS ADOPTED.] 13.10Every instrumentInstruments affecting the title to land, 13.11 filed with the registrar, shall be numbered by the registrar 13.12 consecutively, to the extent practicable and the registrar shall 13.13 endorse uponthe sameeach instrument over the registrar's 13.14 official signature, OFFICE OF THE REGISTRAR OF TITLES, ... 13.15 COUNTY, MINNESOTA, CERTIFIED FILED ON, together with the date, 13.16 hour, and minute when thesameinstrument is filed, the document 13.17 number thereof, and a reference toitsthe proper certificate of 13.18 title.Every such instrument shall be retained by the registrar13.19and regarded as registered from the time of filing except that13.20suchInstrumentsmayshall be copied or reproduced as provided 13.21 by section 15.17, as amended, and the copies or reproductions13.22thereof substituted for the originals with the equal force and13.23effect of the same, which originals may be then destroyed as13.24provided by said section 15.17. Instruments shall then be 13.25 returned in person or by mail to the party who presented the 13.26 instruments for filing or to any other party to whom the 13.27 registrar is directed to deliver the instruments. When the 13.28 memorial of any instrument is made upon any certificate, the 13.29 date, number, and time of filing thereof shalllikewisealso be 13.30 endorsed uponsuchthe certificate. All records and papers 13.31 relating to registered land in the office of the registrar, 13.32 shall be open to the inspection of the public at such times and 13.33 under such conditions as the court may prescribe. Duplicates of 13.34 all instruments, voluntary or involuntary, filed and registered 13.35 with the registrar, may be presented with the originals, and 13.36 shall thereupon be endorsed with the file number, and other 14.1 memoranda on the originals, and may be attested and sealed by 14.2 the registrar, and returned to the person presenting the same. 14.3 The registrar shall furnish certified copies of the instruments 14.4 filed and registered in the registrar's office, upon payment of 14.5 a fee as provided in section 357.18.The court shall adopt14.6general forms of memorials and notations to be used by the14.7registrars in registering the common forms of conveyance and14.8other instruments.14.9 Sec. 19. Minnesota Statutes 1998, section 508.40, is 14.10 amended to read: 14.11 508.40 [OWNER'S DUPLICATE RECEIPTCOPY OF CERTIFICATE OF 14.12 TITLE TO BE FURNISHED TO OWNER.] 14.13At the time the originalWhen a certificate of title is 14.14 entered, the registrar shall make aduplicate thereof, endorsing14.15across the face of such duplicate the words "Owner's Duplicate14.16Certificate"copy of it and deliver thesamecopy to the owner 14.17 or an authorizedattorneyagent.The registrar shall, in every14.18case, when it is practicable so to do, take from such owner a14.19receipt for such duplicate certificate, which shall be signed by14.20the owner in person. In the case of multiple owners the receipt14.21may be executed by any one of such owners. Such receipt, when14.22signed and delivered in the office of the registrar, shall be14.23witnessed by the registrar or the registrar's deputy. If such14.24receipt is signed elsewhere, it shall be acknowledged in the14.25same manner as a deed. Such receipt shall be prima facie14.26evidence of the genuineness of such signature.The copy need 14.27 not be presented or surrendered to permit an instrument, 14.28 voluntary or otherwise, to be filed or a new certificate of 14.29 title to be entered, or a memorial to be made on a certificate 14.30 of title. 14.31 Sec. 20. Minnesota Statutes 1998, section 508.421, 14.32 subdivision 2, is amended to read: 14.33 Subd. 2. [MULTIPLE PARCELS OR INTERESTS.] The owner or 14.34 owners of registered land holding (1) one certificate of title 14.35 for two or more parcels of land or (2) one certificate for 14.36 undivided interests in one or more parcels of land maysurrender15.1the owner's duplicate certificate of title for the land and15.2thereuponrequest the registrarmayto issue separate 15.3 certificates of title to each owner or for each parcel or any 15.4 combination thereof as may be desired consistent with their 15.5 registered interests, provided a registered land survey is not 15.6 required by section 508.47. When the registrar of titles has 15.7 issued more than one certificate of title to one or more owners 15.8 for one or more parcels of land, the owner or owners 15.9 maysurrender the owner's duplicate certificates of title for15.10the land and thereuponrequest the registrarmayto issue a 15.11 single certificate of title for all of the land to the owner or 15.12 owners of the land, or the registrar may issue two or more 15.13 certificates to the owner or owners of the land or for each 15.14 parcel or any combination thereof as may be desired consistent 15.15 with their registered interests, provided a registered land 15.16 survey is not required by section 508.47. 15.17 Sec. 21. Minnesota Statutes 1998, section 508.47, 15.18 subdivision 4, is amended to read: 15.19 Subd. 4. [SURVEY; REQUISITES; FILING; COPIES.] The 15.20 registered land survey shall correctly show the legal 15.21 description of the parcel of unplatted land represented by said 15.22 registered land survey and the outside measurements of the 15.23 parcel of unplatted land and of all tracts delineated therein, 15.24 the direction of all lines of said tracts to be shown by angles 15.25 or bearings or other relationship to the outside lines of said 15.26 registered land survey, and the surveyor shall place monuments 15.27 in the ground at appropriate corners, and all tracts shall be 15.28 lettered consecutively beginning with the letter "A." A 15.29 registered land survey which delineates multilevel tracts shall 15.30 include a map showing the elevation view of the tracts with 15.31 their upper and lower boundaries defined by elevations 15.32 referenced to National Geodetic Vertical Datum, 1929 15.33 adjustment. None of said tracts or parts thereof may be 15.34 dedicated to the public by said registered land survey. Except 15.35 in counties having microfilming capabilities, a reproduction 15.36 copy of the registered land survey shall be delivered to the 16.1 county auditor. The registered land survey shall be on paper, 16.2 mounted on cloth, shall be a black on white drawing, the scale 16.3 to be not smaller than one inch equals 200 feet, and shall be 16.4 certified to be a correct representation of said parcel of 16.5 unplatted land by a registered surveyor. The mounted drawing 16.6 shall beexactlyeither 17 inches by 14 inches or at the 16.7 registrar's request 20 inches by 30 inches and not less than 16.8 2-1/2 inches of the 14 inches or the 20 inches shall be blank 16.9 for binding purposes, and such survey shall be filed in 16.10 triplicate with the registrar of titles. Before filing, 16.11 however, anysuchsurvey shall be approved in the manner 16.12 required for the approval of subdivision plats, which approval 16.13 shall be endorsedthereonon it or attachedtheretoto it. 16.14 At the time of filing, a certificate from the treasurer 16.15 that current taxes have been paid must be presented before the 16.16 survey is accepted by the registrar for filing. 16.17 In counties having microfilming capabilities, the survey 16.18 may be prepared on sheets of suitable mylar or on linen tracing 16.19 cloth by photographic process or on material of equal quality. 16.20 Notwithstanding any provisions of subdivision 5 to the contrary, 16.21 no other copies of the survey need be filed. 16.22 The registrar shall duly certify and furnish to any person 16.23 a copy of said registered land survey, which shall be admissible 16.24 in evidence. 16.25 Sec. 22. Minnesota Statutes 1998, section 508.49, is 16.26 amended to read: 16.27 508.49 [INTEREST LESS THAN FEE; NOTICED BY MEMORIAL.] 16.28 No new certificate shall be issued upon any transfer of 16.29 registered land which does not divest the title in fee simple of 16.30 the land, or some part of it. All interests in registered land, 16.31 less than an estate in fee simple, shall be registered by filing 16.32 with the registrar the instrument which creates, transfers, or 16.33 claims the interest, and by brief memorandum or memorial of it 16.34 made and signed by the registrar upon the certificate of title. 16.35A similar memorandum shall also be made on the owner's duplicate16.36if practicable so to do.The cancellation of the interests 17.1 shall be registered in the same manner. 17.2 Sec. 23. Minnesota Statutes 1998, section 508.51, 17.3 subdivision 1, is amended to read: 17.4 Subdivision 1. [IF VOLUNTARY INSTRUMENT; EXCEPTION: COURT17.5ORDER.]Except as provided in subdivision 2, no new certificate17.6of title shall be entered or issued, and no memorial shall be17.7made upon any certificate of title in pursuance of any deed or17.8other voluntary instrument made by the registered owner or the17.9registered owner's attorney-in-fact, unless the owner's17.10duplicate is presented therewith, except upon the order of the17.11court. When such order is made, a memorial thereof shall be17.12entered, or a new certificate issued as directed thereby. The17.13registrar shall require that the owner's duplicate be presented17.14only when an instrument is submitted for filing that is executed17.15by the registered owner or the registered owner's17.16attorney-in-fact.When any voluntary instrument made by the 17.17 registered owner or the registered owner's attorney-in-fact is 17.18 presented for registration theproduction of the owner's17.19duplicate certificate shall authorize theregistrartoshall 17.20 enter a new certificate ortomake a memorial of registration in 17.21 accordance with such instrument, and the new certificate of 17.22 title or memorial shall be binding upon the registered owner and 17.23 upon all persons claiming under the registered owner in favor of 17.24 every purchaser for value and in good faith. In all cases of 17.25 registration which are procured by fraud, the owner may pursue 17.26 all legal and equitable remedies against the parties to such 17.27 fraud, without prejudice to the rights of any innocent holder 17.28 for value of a certificate of title. 17.29 Sec. 24. Minnesota Statutes 1998, section 508.52, is 17.30 amended to read: 17.31 508.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF NEW 17.32 CERTIFICATECANCELED; NEW ISSUED.] 17.33 An owner of registered land who desires to convey the land, 17.34 or a portion thereof, in fee, shall execute a deed of 17.35 conveyance, and file the deed, together with the owner's17.36duplicate certificate,with the registrar. The registrar shall 18.1 require an affidavit by the grantee, or some person in the 18.2 grantee's behalf, which affidavit shall set forth the name and 18.3 residence of the grantee, whether the grantee is 18 years of age 18.4 or older, and whether the grantee is or is not under legal 18.5 incapacity, whether or not married, and, if married, the name of 18.6 the spouse. The deed of conveyance shall be filed and endorsed 18.7 with the number and place of registration of theowner's18.8 certificate of title. Before canceling the outstanding 18.9 certificate of title the registrar shall show by memorial 18.10 thereon the registration of the deed on the basis of which it is 18.11 canceled. The encumbrances, claims, or interests adverse to the 18.12 title of the registered owner shall be stated upon the new 18.13 certificate, except so far as they may be simultaneously 18.14 released or discharged. Theowner's duplicate certificate and18.15the originalcertificate of title shall be marked "Canceled" by 18.16 the registrar, who shall enter in the register a new certificate 18.17 of title to the grantee, and prepare and deliver to the grantee18.18a new owner's duplicate certificateand prepare and deliver to 18.19 the grantee a copy of the new certificate of title. If a deed 18.20 in fee is for a portion of the land described in a certificate 18.21 of title, the memorial of the deed entered by the registrar 18.22 shall include the legal description contained in the deed and 18.23 the registrar shall enter a new certificate of title to the 18.24 grantee for the portion of the land conveyed and, except as 18.25 otherwise provided in this section, issue a residue certificate 18.26 of title to the grantor for the portion of the land not 18.27 conveyed. The registrar shall prepare and deliver to each of 18.28 the parties anew owner's duplicate certificate forcopy of 18.29 their respective certificates of title. In lieu of canceling 18.30 the grantor's certificate of title and issuing a residue 18.31 certificateand owner's duplicate certificateto the grantor for 18.32 the portion of the land not conveyed, the registrar may if the 18.33 grantor's deed does not divide a parcel of unplatted land, and 18.34 in the absence of a request to the contrary by the registered 18.35 owner, mark by the land description onboth the owner's18.36duplicate certificate of title andtheoriginalcertificate of 19.1 title "Part of land conveyed, see memorials". The fee for a 19.2 residue certificate of title shall be paid to the registrar only 19.3 when the grantor's certificate of title is canceled after the 19.4 conveyance by the grantor of a portion of the land described in 19.5 the grantor's certificate of title. When two or more successive 19.6 conveyances of the same property are filed for registration on 19.7 the same day the registrar may enter a certificate in favor of 19.8 the grantee or grantees in the last of the successive 19.9 conveyances, and the memorial of the previous deed or deeds 19.10 entered on the prior certificate of title shall have the same 19.11 force and effect as though the prior certificate of title had 19.12 been entered in favor of the grantee or grantees in the earlier 19.13 deed or deeds in the successive conveyances. The fees for the 19.14 registration of the earlier deed or deeds shall be the same as 19.15 the fees prescribed for the entry of memorials. The registrar 19.16 of titles, with the consent of the transferee, may mark "See 19.17 memorials for new owner(s)" by the names of the registered 19.18 owners onboththeoriginalcertificate of title andthe owner's19.19duplicate certificate of title andalso add to the memorial of 19.20 the transferring conveyance a statement that the memorial shall 19.21 serve in lieu of a new certificate of title in favor of the 19.22 grantee or grantees therein noted and may refrain from canceling 19.23 the certificate of title until the time it is canceled by a 19.24 subsequent transfer, and the memorial showing such transfer of 19.25 title shall have the same effect as the entry of a new 19.26 certificate of title for the land described in the certificate 19.27 of title; the fee for the registration of a conveyance without 19.28 cancellation of the certificate of title shall be the same as 19.29 the fee prescribed for the entry of a memorial. 19.30 Sec. 25. Minnesota Statutes 1998, section 508.55, is 19.31 amended to read: 19.32 508.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON 19.33 CERTIFICATE OF TITLE.] 19.34 The registration of a mortgage made by the registered owner 19.35or, the registered owner's attorney-in-fact, or by a party 19.36 having an interest registered on the certificate of title, other 20.1 than the registered owner or the registered owner's 20.2 attorney-in-fact, shall be made in the following manner: 20.3 Theowner's duplicate certificatemortgage deed or other 20.4 instrument to be registered shall be presented to the registrar, 20.5together with the mortgage deed, or other instrument to be20.6registered,and the registrar shall enter upon theoriginal20.7 certificate of titleand also upon the owner's duplicate20.8certificatea memorialof the purportof the instrument 20.9 registered, the exact time of filing, and its file number. The 20.10 registrar shall also note upon the registered instrument the 20.11 time of filing and a reference to the volume and page where it 20.12 is registered.The registration of a mortgage made by a party20.13having an interest registered on the certificate of title, other20.14than the registered owner or the registered owner's20.15attorney-in-fact, must be made in the same manner, except that20.16the owner's duplicate certificate need not be presented to the20.17registrar.20.18 Sec. 26. Minnesota Statutes 1998, section 508.56, is 20.19 amended to read: 20.20 508.56 [ASSIGNMENT AND DISCHARGE OF MORTGAGE.] 20.21 When a mortgage is assigned, extended, or otherwise dealt 20.22 with, a memorial of the instrument shall be made upon the 20.23originalcertificate of title. In case only a part of the 20.24 mortgage upon the land is intended to be released or discharged 20.25 a memorial of such partial release shall be entered. 20.26 Sec. 27. Minnesota Statutes 1998, section 508.57, is 20.27 amended to read: 20.28 508.57 [FORECLOSURE; NOTICE.] 20.29 Mortgages upon registered land may be foreclosed in the 20.30 same manner as mortgages upon unregistered land. Where the 20.31 mortgage is upon registered land it shall be sufficient to 20.32 authorize the foreclosure thereof by advertisement, if such 20.33 mortgage and all assignments thereof shall have been registered, 20.34 and a memorial thereof duly entered upon the certificate of 20.35 title. When a mortgage upon registered land is foreclosed by 20.36 advertisement, the notice of foreclosure shall state the date of 21.1 the mortgage, when and where registered, and the fact of 21.2 registration. All laws relating to the foreclosure of mortgages 21.3 upon unregistered land shall apply to mortgages upon registered 21.4 land, or any estate or interest therein, except as herein 21.5 provided, and except that a notice of the pendency of any suit 21.6 or proceeding to enforce or foreclose the mortgage or other 21.7 charge upon the land shall be filed with the registrar, and a 21.8 memorial thereof entered on theregistercertificate of title 21.9 before the first date of publication of the foreclosure notice 21.10 but not sooner than six months before the first date of 21.11 publication. A notice so filed and registered shall be notice 21.12 to the registrar and to all persons thereafter dealing with the 21.13 land or any part thereof and shall satisfy the requirements of 21.14 section 580.032, subdivision 3, with respect to registered 21.15 land. In all such foreclosures all certificates and affidavits 21.16 permitted or required by law to be recorded with the county 21.17 recorder shall be filed with and registered by the registrar. 21.18 Sec. 28. Minnesota Statutes 1998, section 508.58, is 21.19 amended to read: 21.20 508.58 [REGISTRATION AFTER FORECLOSURE; NEW CERTIFICATE.] 21.21 Subdivision 1. [COURT ORDER.] Any person who has, by an 21.22 action or other proceeding to enforce or foreclose a mortgage, 21.23 lien, or other charge upon registered land, become the owner in 21.24 fee of the land, or any part thereof, may have the title 21.25 registered. Except as provided in subdivision 2, the owner 21.26 shall apply by duly verified petition to the court for a new 21.27 certificate of title to such land, and the court shall 21.28 thereupon, after due notice to all parties in interest and upon 21.29 such hearing as the court may direct, make an order for the 21.30 issuance of a new certificate of title to the person entitled 21.31 thereto, and the registrar shall thereupon enter a new 21.32 certificate of title to the land, or of the part thereof to 21.33 which the petitioner is entitled, and issue an owner's duplicate21.34 as in the case of a voluntary conveyance. 21.35 Subd. 2. [EXAMINER OF TITLES DIRECTIVE.] Any person who 21.36 has become the owner in fee of registered land, or any part of 22.1 the land, pursuant to a mortgage foreclosure by action under 22.2 chapter 581 is entitled to a new certificate of title for the 22.3 land described in the sheriff's certificate of sale or so much 22.4 of the land as may be described in the certificate of title, 22.5 after the redemption period expires. The registrar shall enter 22.6 the new certificate of titleand issue a new owner's duplicate22.7certificateonly pursuant to the court order provided in 22.8 subdivision 1 or upon the written directive of the examiner of 22.9 titles as to the legal sufficiency of the mortgage foreclosure 22.10 proceeding. The directive of the examiner of titles also must 22.11 specify the instruments the registrar shall omit from the new 22.12 certificate of title by virtue of the foreclosure. 22.13 At the request of a registered owner or other person in 22.14 interest, the examiner of titles by a written directive may 22.15 direct the registrar of titles to show by memorial onathe 22.16 certificate of title that a contract for the conveyance of a 22.17 time share interest, as defined in section 515B.1-103(32), has 22.18 been terminated in accordance with chapter 559. The directive 22.19 also must specify the instruments the registrar shall omit from 22.20 the next certificate of title because of the cancellation. 22.21 Sec. 29. Minnesota Statutes 1998, section 508.59, is 22.22 amended to read: 22.23 508.59 [REGISTRATION OF JUDGMENT OR FINAL DECREE.] 22.24 A judgment or decree affecting registered land shall be 22.25 registered upon the presentation of a certified copy thereof to 22.26 the registrar, who shall enter a memorial thereof upon the 22.27originalcertificate of titleand upon the owner's duplicate, if22.28practicable so to do. When the registered owner of such land is 22.29 by such judgment or decree divested of an estate in fee therein, 22.30 or of any part thereof, the prevailing party shall be entitled 22.31 to a new certificate of title for the land, or so much thereof 22.32 as may be described in the judgment and decree, and the 22.33 registrar shall enter such new certificate of titleand issue a22.34new owner's duplicate certificateas in the case of a voluntary 22.35 conveyance. No such new certificate shall be entered except 22.36 upon the written certification of the examiner of titles as to 23.1 the legal sufficiency of the documents presented for filing for 23.2 the purpose of issuance of a new certificate or upon the order 23.3 of the district court directing the issuance thereof. 23.4 Sec. 30. Minnesota Statutes 1998, section 508.61, 23.5 subdivision 2, is amended to read: 23.6 Subd. 2. [NEW TRUSTEE.] When a new trustee of registered 23.7 land is appointed a new certificate of title shall be entered in 23.8 the new trustee's name upon presentation to the registrar of a 23.9 certified copy of the decree or other instrument appointing the 23.10 new trusteeand the surrender of the owner's duplicate23.11certificate. 23.12 Sec. 31. Minnesota Statutes 1998, section 508.61, 23.13 subdivision 3, is amended to read: 23.14 Subd. 3. [VOLUNTARY DISSOLUTION.] Where a corporate owner 23.15 did adopt a resolution for voluntary dissolution pursuant to 23.16 chapter 301, the registrar of titles shall enter a new 23.17 certificate of title in the name of the trustee in dissolution 23.18 uponthe surrender of the owner's duplicate certificate and the23.19 presentation of a certified copy of the certificate setting 23.20 forth the adoption of the resolution together with the 23.21 certificate of the secretary of state that said certificate of 23.22 dissolution has been filed for record in the secretary's office. 23.23 Sec. 32. Minnesota Statutes 1998, section 508.67, is 23.24 amended to read: 23.25 508.67 [ACQUIRING TITLE BY ACTION; NEW CERTIFICATE.] 23.26 Subdivision 1. [COURT ORDER.] Upon the expiration of the 23.27 time allowed by law for redemption of registered land, after it 23.28 has been set off, or sold on execution, or taken or sold for the 23.29 enforcement of any lien, or charge of any nature, the person who 23.30 claims under such execution, or under any certificate, deed, or 23.31 other instrument made in the course of proceedings to enforce 23.32 such execution or lien, may apply to the court for an order 23.33 directing the entry of a new certificate to that person, and 23.34 upon such notice as the court may require, the petition shall be 23.35 heard and a proper order rendered therein. In case the claim of 23.36 title is based upon a tax certificate, tax or assessment deed, 24.1 the petition shall be filed with the court administrator, who 24.2 shall docket the same in the land registration docket. The 24.3 petition shall be referred to the examiner of titles for 24.4 examination and report in like manner as herein provided for the 24.5 reference of initial applications for registration. The summons 24.6 shall be issued in the form and served in the manner as in 24.7 initial applications. The petition shall be heard by the court 24.8 and the petitioner shall be required to show affirmatively that 24.9 all the requirements of the statute to entitle the petitioner to 24.10 register the title have been complied with. The order shall 24.11 show the condition of the title to such land and who is the 24.12 owner thereof. It shall provide, if the petitioner is found to 24.13 be the owner, for the cancellation of the outstanding 24.14 certificate of title and the registrar shall issue a new 24.15 certificate of title for the land in lieu and in place of the 24.16 outstanding certificate upon presentation to the registrar of a 24.17 duly certified copy of such order, according to its terms. 24.18 Subd. 2. [EXAMINER OF TITLES DIRECTIVE.] Any person 24.19 holding title to registered land pursuant to forfeiture 24.20 evidenced by a county auditor's certificate of forfeiture, or 24.21 auditor's certificate of sale or state assignment certificate 24.22 that has been memorialized upon a certificate of title for at 24.23 least ten years is entitled to a new certificate of title for 24.24 the land, or so much of the land as may be described in the 24.25 forfeiture documents. The registrar shall enter the new 24.26 certificate of titleand issue a new owner's duplicate24.27certificateonly pursuant to court order or upon the written 24.28 directive of the examiner of titles as to the legal sufficiency 24.29 of the forfeiture. The directive of the examiner of titles also 24.30 must specify the instruments the registrar shall omit from the 24.31 new certificate of title by virtue of the forfeiture. 24.32 Sec. 33. Minnesota Statutes 1998, section 508.68, is 24.33 amended to read: 24.34 508.68 [DEATH OF OWNER; ISSUANCE OF NEW CERTIFICATES.] 24.35 When the owner of registered land, or of any estate or 24.36 interest therein, dies, having devised the same by will, the 25.1 persons entitled thereto may file with the registrar a certified 25.2 copy of such will and the personal representative's deed of 25.3 distribution together with any order of distribution, if there 25.4 be one, or certified copy of any final decree, if there be one, 25.5 assigning the same, and thereupon the registrar shall cancel the 25.6 certificate of title issued to the testator and issue a new 25.7 certificate of title to the persons designated. When the owner 25.8 of registered land, or of any estate or interest therein, dies, 25.9 not having devised the same, the persons entitled thereto by law 25.10 may file with the registrar the personal representative's deed 25.11 of distribution together with a certified copy of any order of 25.12 distribution, if there be one, or a certified copy of any final 25.13 decree of the court assigning the same, and thereupon the 25.14 registrar shall cancel the certificate of title issued to the 25.15 intestate and issue a new certificate of title to the persons 25.16 entitled thereto. Unless restricted by letters testamentary or 25.17 letters of administration, a personal representative may sell, 25.18 convey, or mortgage registered land in the same manner as if the 25.19 land were registered in the representative's name. Such 25.20 personal representative shall first file with the registrar a 25.21 certified copy of any will of the decedent and a certified copy 25.22 of the representative's letters. 25.23 Sec. 34. Minnesota Statutes 1998, section 508.71, is 25.24 amended by adding a subdivision to read: 25.25 Subd. 1a. [CORRECTIONS OF REGISTRAR'S CLERICAL 25.26 ERRORS.] The registrar may correct clerical errors or omissions 25.27 made by the registrar's staff in producing certificates of 25.28 title. An error shall not be erased or obliterated. The 25.29 registrar may sign and file a correction document and 25.30 memorialize it upon the affected certificate of title, or may 25.31 make a correction memorial without a correction document. The 25.32 memorial shall show the date, time of entry, the nature of the 25.33 error or omission, and the correct information. If the error or 25.34 omission may adversely affect the interest of a party, the 25.35 registrar shall refer the correction to the examiner of titles. 25.36 The registrar shall prepare subsequent certificates correctly 26.1 and omit the memorial of the correction. 26.2 Sec. 35. Minnesota Statutes 1998, section 508.71, 26.3 subdivision 2, is amended to read: 26.4 Subd. 2. [COURT ORDER.] A registered owner or other person 26.5 in interest may, at any time, apply by petition to the court, 26.6 upon the ground that (1) registered interests of any 26.7 description, whether vested, contingent, expectant, or inchoate, 26.8 have terminated and ceased; (2) new interests have arisen or 26.9 been created which do not appear upon the certificate of title; 26.10 (3) any error or omission was made in entering a certificate of 26.11 title or any memorial thereon, or on any duplicate certificate; 26.12 (4) the name of any person on the certificate of title has been 26.13 changed; (5) the registered owner has married, or, if registered 26.14 as married, that the marriage has been terminated; (6) a 26.15 corporation which owned registered land and has been dissolved 26.16 has not conveyed it within three years after its dissolution; or 26.17 (7), upon any reasonable ground, that any other alteration or 26.18 adjudication should be made. The court may hear and determine 26.19 the petition after notice given to all parties in interest, as 26.20 determined by the examiner of titles, by a summons issued in the 26.21 form and served in the manner as in initial applications or by 26.22 an order to show cause, as the court may deem appropriate. 26.23 After notice has been given as ordered, the court may order the 26.24 entry of a new certificate of title, the entry, amendment, or 26.25 cancellation of a memorial upon a certificate of title, or grant 26.26 any other relief upon the terms, requiring security if 26.27 necessary, as it may consider proper. The provisions of this 26.28 section shall not give the court authority to open the original 26.29 decree of registration, and nothing shall be done or ordered by 26.30 the court which shall impair the title or other interest of a 26.31 purchaser who holds a certificate of title for value and in good 26.32 faith, or of the purchaser's heirs or assigns without written 26.33 consent of the purchaser or heirs or assigns. A certified copy 26.34 of the petition may be filed as a memorial on any appropriate 26.35 certificate of title which shall be notice forever to purchasers 26.36 and encumbrancers of the pendency of the proceeding and all 27.1 matters referred to in the court files and records pertaining to 27.2 the proceeding. 27.3 Sec. 36. Minnesota Statutes 1998, section 508.71, 27.4 subdivision 4, is amended to read: 27.5 Subd. 4. [REGISTRATION OF MEMORIALS.] Without order of 27.6 court or directive of the examiner, the registrar of titles may 27.7 receive and register as memorials upon any certificate of title 27.8 to which they pertain, the following instruments: receipt or 27.9 certificate of county treasurer showing redemption from any tax 27.10 sale or payment of any tax described in a certificate of title, 27.11 a state deed issued to purchaser of tax-forfeited land, a 27.12 certified copy of a marriage certificate showing the subsequent 27.13 marriage of any party shown by a certificate of title to be 27.14 unmarried, a certified copy of a final decree of divorce or 27.15 dissolution of a marriage entered in the state of Minnesota, or 27.16 in any state, territory or possession of the United States, or 27.17 the District of Columbia to establish the dissolution of a 27.18 marriage relationship of any party shown on the certificate of 27.19 title to be married, and a certified copy of the death 27.20 certificate of party listed in any certificate of title as being 27.21 the spouse of the registered owner when accompanied by an 27.22 affidavit satisfactory to the registrar identifying the decedent 27.23 with the spouse. In all subsequent dealings with the land 27.24 covered by the certificates of title, the registrar shall give 27.25 full faith to these memorials. 27.26 Sec. 37. Minnesota Statutes 1998, section 508.71, 27.27 subdivision 5, is amended to read: 27.28 Subd. 5. [SURVIVORSHIP.] In case of a certificate of title 27.29 outstanding to two or more owners as joint tenants, upon the 27.30 filing for registration of a certificate of death of one of the 27.31 joint tenants and an affidavit of survivorship,and upon the27.32surrender of the owner's duplicate certificate of title,the 27.33 registrar without the order or directive shall issue a new 27.34 certificate of title for the premises to the survivor in 27.35 severalty or to the survivors in joint tenancy as the case may 27.36 be. 28.1 Sec. 38. Minnesota Statutes 1998, section 508.71, 28.2 subdivision 6, is amended to read: 28.3 Subd. 6. [RECORDED INSTRUMENTS.] When instruments 28.4 affecting registered land have been recorded in the office of 28.5 any county recorder in this state, a certified copy thereof may 28.6 be filed for registration and registered with like effect as the 28.7 original instrument without the order or directive.The owner's28.8duplicate certificate of title shall be presented to the28.9registrar, together with the certified copy, whenever the28.10presentation is required by statute for registration of the28.11original instrument.28.12 Sec. 39. Minnesota Statutes 1998, section 508.76, is 28.13 amended to read: 28.14 508.76 [DAMAGES THROUGH ERRONEOUS REGISTRATION;28.15ACTIONREGISTRAR'S LIABILITY.] 28.16 Subdivision 1. [COMPENSATION FOR LOSS OR DAMAGE.] Any 28.17 person who, without negligence on that person's part, sustains 28.18 any loss or damage by reason of any omission, mistake or 28.19 misfeasance of the registrar or the registrar's deputy, or of 28.20 any examiner or of any court administrator, or of a deputy of 28.21 the court administrator or examiner, in the performance of their 28.22 respective duties under this law, and any person who, without 28.23 negligence on that person's part, is wrongfully deprived of any 28.24 land or of any interest therein by the registration thereof, or 28.25 by reason of the registration of any other person, as the owner 28.26 of such land, or by reason of any mistake, omission, or 28.27 misdescription in any certificate of title, or in any entry or 28.28 memorial, or by any cancellation, in the register of titles, and 28.29 who, by the provisions of this law, is precluded from bringing 28.30 an action for the recovery of such land, or of any interest 28.31 therein, or from enforcing any claim or lien upon the same, may 28.32 institute an action in the district court to recover 28.33 compensation out of the general fund for such loss or damage. 28.34 Subd. 2. [DOCUMENTS MISFILED.] The registrar may 28.35 reasonably rely on the affirmative representation of the party 28.36 presenting instruments for filing as to whether the land 29.1 described in the instruments or any part of it is registered or 29.2 unregistered. A party who requests that misfiled instruments be 29.3 refiled with the registrar is responsible for paying any 29.4 additional fees required to properly file any instrument 29.5 misfiled because of an incorrect representation and, if 29.6 applicable, to enter a new certificate of title. 29.7 Sec. 40. Minnesota Statutes 1998, section 508.82, 29.8 subdivision 1, is amended to read: 29.9 Subdivision 1. [STANDARD DOCUMENTS.] The fees to be paid 29.10 to the registrar shall be as follows: 29.11 (1) of the fees provided herein, five percent of the fees 29.12 collected under clauses (3), (4), (10), (12),(13),(14), (15), 29.13 and (16),(17), and (18),for filing or memorializing shall be 29.14 paid to the state treasurer and credited to the general fund; 29.15 plus a $4.50 surcharge shall be charged and collected in 29.16 addition to the total fees charged for each transaction under 29.17 clauses (2) to (5), (10), (12),(14),and(18)(16), with 50 29.18 cents of this surcharge to be retained by the county to cover 29.19 its administrative costs and $4 to be paid to the state treasury 29.20 and credited to the general fund; 29.21 (2) for registeringeach originala first certificate of 29.22 title,andincluding issuing aduplicatecopy of it, $30; 29.23 (3) for registering each instrument transferring the fee 29.24 simple title for which a new certificate of title is issued and 29.25 for theissuance andregistration of the new certificate of 29.26 title, including a copy of it, $30; 29.27 (4) for the entry of each memorial on a certificateand29.28endorsements upon duplicate certificates, $15; 29.29 (5) for issuing each residue certificate, $20; 29.30 (6) for exchange certificates, $10 for each certificate 29.31 canceled and $10 for each new certificate issued; 29.32 (7) for each certificate showing condition of the register, 29.33 $10; 29.34 (8) for any certified copy of any instrument or writing on 29.35 file in the registrar's office, the same fees allowed by law to 29.36 county recorders for like services; 30.1 (9) for a noncertified copy of any certificate of title, 30.2 other than the copies issued under clauses (2) and (3) of this 30.3 subdivision, any instrument or writing on file in the office of 30.4 the registrar of titles, or any specified page or part of it, an 30.5 amount as determined by the county board for each page or 30.6 fraction of a page specified. If computer or microfilm printers 30.7 are used to reproduce the instrument or writing, a like amount 30.8 per image; 30.9 (10) for filing two copies of any plat in the office of the 30.10 registrar, $30; 30.11 (11) for any other service under this chapter, such fee as 30.12 the court shall determine; 30.13(12) for issuing a duplicate certificate of title pursuant30.14to the directive of the examiner of titles in counties in which30.15the compensation of the examiner is paid in the same manner as30.16the compensation of other county employees, $50, plus $10 to30.17memorialize;30.18(13) for issuing a duplicate certificate of title pursuant30.19to the directive of the examiner of titles in counties in which30.20the compensation of the examiner is not paid by the county or30.21pursuant to an order of the court, $10;30.22(14)(12) for filing a condominium plat or an amendment to 30.23 it in accordance with chapter 515, $30; 30.24(15)(13) for a copy of a condominium plat filed pursuant 30.25 to chapters 515 and 515A, the fee shall be $1 for each page of 30.26 the condominium plat with a minimum fee of $10; 30.27(16)(14) for filing a condominium declaration and plat or 30.28 an amendment to it in accordance with chapter 515A, $10 for each 30.29 certificate upon which the document is registered and $30 for 30.30 the filing of the condominium plat or an amendment thereto; 30.31(17)(15) for the filing of a certified copy of a plat of 30.32 the survey pursuant to section 508.23 or 508.671, $10; 30.33(18)(16) for filing a registered land survey in triplicate 30.34 in accordance with section 508.47, subdivision 4, $30; 30.35(19)(17) for furnishing a certified copy of a registered 30.36 land survey in accordance with section 508.47, subdivision 4, 31.1 $10. 31.2 Sec. 41. Minnesota Statutes 1998, section 508A.10, is 31.3 amended to read: 31.4 508A.10 [APPLICATION TO EXAMINER; POWERS OF EXAMINER.] 31.5 An application for registration for a CPT shall be 31.6 addressed to the examiner of titles in and for the county in 31.7 which the land described is situated. The examiner shall have 31.8 the powers provided in sections 508A.01 to 508A.85 including but 31.9 not limited to the following: 31.10 (1) To approve all applications prior to filing of record; 31.11 (2) To require an abstract of title with searches and 31.12 recertifications as desired; 31.13 (3) To require that mailed notice be given to the holders 31.14 of any interest, when their addresses are known; 31.15 (4) To issue examiner's reports, supplemental reports, 31.16 initial directives, and supplemental directives to the registrar 31.17 regarding initial CPTs, owner's duplicates pursuant to section31.18508A.44or memorials upon any CPT pursuant to section 508A.71; 31.19 (5) To require the county surveyor to review the proposed 31.20 legal description of any CPT or to inspect the real property; 31.21 (6) To suspend any proceeding hereunder upon receipt of any 31.22 valid written objections by persons claiming an interest in the 31.23 real property; and 31.24 (7) To require proceedings subsequent to the initial CPT as 31.25 may be necessary to achieve the purposes of sections 508A.01 to 31.26 508A.85, or to certify instruments transferring title pursuant 31.27 to sections 508A.59, 508A.62, and 508A.69. 31.28 Sec. 42. Minnesota Statutes 1998, section 508A.11, 31.29 subdivision 3, is amended to read: 31.30 Subd. 3. [FEES.] Before the examiner of titles examines 31.31 the abstract of title, the applicant shall pay to the registrar 31.32 of titles the fee provided by section 508A.82, clause(17)(15). 31.33 Sec. 43. Minnesota Statutes 1998, section 508A.22, 31.34 subdivision 2, is amended to read: 31.35 Subd. 2. [SUPPLEMENTAL DIRECTIVE.] When the directive has 31.36 been issued pursuant to subdivision 1, the abstract of title 32.1 shall be continued through the date the directive was filed with 32.2 the registrar of titles and then delivered to the examiner. On 32.3 determining that the applicant is the record owner after an 32.4 examination of the continued abstract and the public records, 32.5 the examiner shall issue a supplemental directive to the 32.6 registrar of titles directing the registrar to show by memorial 32.7 that the five year statute of limitations provided by section 32.8 508A.17 will begin on the date the supplemental directive is 32.9 filed on the CPT, to show as memorials any additional liens, 32.10 encumbrances, or other interests affecting the land, and to 32.11 delete the memorials of any liens, encumbrances or other 32.12 interests which were satisfied, released or discharged prior to 32.13 the issuance of the CPT. The supplemental directive of the 32.14 examiner shall then be filed as a memorial upon the CPT. Each 32.15 additional lien, encumbrance, or other interest noted in the 32.16 supplemental directive shall be shown as a separate memorial on 32.17 the CPT in addition to the memorial of the supplemental 32.18 directive. The abstract of title shall be delivered to the 32.19 registrar of titles who shall retain it, but it shall not be 32.20 entered as a memorial on the CPT. Until the abstract of title 32.21 has been delivered to the registrar of titles, the registrar 32.22 shall notdeliver the owner's duplicate CPT to the registered32.23owner noraccept for filing any instrument executed by the 32.24 registered owner. 32.25 Sec. 44. Minnesota Statutes 1998, section 508A.22, 32.26 subdivision 3, is amended to read: 32.27 Subd. 3. [FEES.] Upon the filing with the registrar of 32.28 titles of the examiner's directive pursuant to subdivision 1, 32.29 there shall be paid to the registrar: (1) the fee provided by 32.30 section 508A.82, clause (2), for registeringan originala first 32.31 CPT, and (2) the fee provided by section 508.74, which shall be 32.32 paid to the state treasurer pursuant to section 508.75. Upon 32.33 filing with the registrar of titles the supplemental directive 32.34 of the examiner, there shall be paid to the registrar of titles 32.35 the fee for the entry of a memorial pursuant to section 508A.82, 32.36 clause (4). 33.1 Sec. 45. Minnesota Statutes 1998, section 508A.25, is 33.2 amended to read: 33.3 508A.25 [RIGHTS OF PERSON HOLDING CPT.] 33.4 Every person holding a CPT issued pursuant to sections 33.5 508A.01 to 508A.85 who has acquired title in good faith and for 33.6 a valuable consideration shall hold the same free from all 33.7 encumbrances and adverse claims, excepting only estates, 33.8 mortgages, liens, charges, and interests as may be noted by 33.9 separate memorials in the latest CPT in the office of the 33.10 registrar, and also excepting the memorial provided in section 33.11 508A.351 and any of the following rights or encumbrances 33.12 subsisting against the same, if any: 33.13 (1) liens, claims, or rights arising or existing under the 33.14 laws or the constitution of the United States, which this state 33.15 cannot require to appear of record; 33.16 (2) the lien of any real property tax or special assessment 33.17for which the land has not been sold at the date of the CPT; 33.18 (3) any lease for a period not exceeding three years when 33.19 there is actual occupation of the premises under it; 33.20 (4) all rights in public highways upon the land; 33.21 (5) the rights of any person in possession under deed or 33.22 contract for deed from the owner of the CPT; 33.23 (6) any liens, encumbrances, and other interests that may 33.24 be contained in the examiner's supplemental directive issued 33.25 pursuant to section 508A.22, subdivision 2; 33.26 (7) any claims that may be made pursuant to section 508A.17 33.27 within five years from the date the examiner's supplemental 33.28 directive is filed on the CPT; and 33.29 (8) any outstanding mechanics lien rights which may exist 33.30 under sections 514.01 to 514.17. 33.31 No existing or future lien for state taxes arising under 33.32 the laws of this state for the nonpayment of any amounts due 33.33 under chapter 268 or any tax administered by the commissioner of 33.34 revenue may encumber title to lands registered under this 33.35 chapter unless filed under the terms of this chapter. 33.36 Sec. 46. Minnesota Statutes 1998, section 508A.35, is 34.1 amended to read: 34.2 508A.35 [FORMS OF CPT.] 34.3 The CPT shall contain the name and residence of the owner, 34.4 a description of the land and of the estate of the owner, and 34.5 shall by memorial contain a description of all encumbrances, 34.6 liens, and interests known to the owner to which the estate of 34.7 the owner is subject. It shall state whether the owner is 18 34.8 years of age or older and if under any legal incapacity, the 34.9 nature of it. It shall also state whether or not the owner is 34.10 married and if married, the name of the spouse. In case the 34.11 land is held in trust or subject to any condition or limitation, 34.12 it shall state the nature and character of it. It shall be in 34.13 substantially the following form: 34.14 CERTIFICATE OF POSSESSORY TITLE (CPT) 34.15 First Certificate of Possessory Title, pursuant to the 34.16 Directive of the Examiner of Titles, County of ..........., and 34.17 State of Minnesota, date .................., ..... 34.18 Registration of Possessory Title 34.19 State of Minnesota ) 34.20 )ss 34.21 County of ...............) 34.22 This is to certify that ........................, of the 34.23 .................. of ................ County of ............., 34.24 and State of ......................, is now the owner of a fee 34.25 simple estate,to-wit,........................................ 34.26 Subject to the encumbrances, liens, and interests noted by the 34.27 memorial underwritten or endorsed hereon; and subject to the 34.28 following rights or encumbrances subsisting, namely: 34.29 (1) Liens, claims, or rights arising under the laws of the 34.30 Constitution of the United States, which the statutes of this 34.31 state cannot require to appear of record; 34.32 (2) Any real property tax or special assessmentfor which a34.33sale of the land has not been had at the date of the CPT; 34.34 (3) Any lease for a period not exceeding three years, when 34.35 there is actual occupation of the premises under the lease; 34.36 (4) All rights in public highways upon the land; 35.1 (5) The rights, titles, estates, liens, and interests of 35.2 any person who has acquired an interest set forth in the 35.3 Examiner's Supplemental Directive issued pursuant to section 35.4 508A.22, subdivision 2; 35.5 (6) The rights of any person in possession under deed or 35.6 contract for deed from the owner of the CPT; 35.7 (7) Any claims that may be made pursuant to section 508A.17 35.8 within five years from the date the Examiner's Supplemental 35.9 Directive is filed on the CPT; and 35.10 (8) Any outstanding mechanics lien rights which may exist 35.11 under sections 514.01 to 514.17. 35.12 In witness whereof, I have hereunto subscribed my name and 35.13 affixed the seal of my office, this ............ day of 35.14 ...................., ..... 35.15 ................................... 35.16 Registrar of Titles, in and for the 35.17 County of ..................... and 35.18 State of Minnesota. 35.19 All CPTs issued subsequent to the first shall be in like 35.20 form except that they shall be entitled "Transfer from number 35.21 (here give the number of the next previous CPT relating to the 35.22 same land)," and shall also contain the words "Originally 35.23 registered (date, volume, and page of registration)." 35.24 CPTs shall be indexed and maintained in the same manner as 35.25 provided for certificates of title under chapter 508. 35.26 Sec. 47. Minnesota Statutes 1998, section 508A.38, is 35.27 amended to read: 35.28 508A.38 [FORMS OF RECORDS ADOPTED.] 35.29Every instrumentInstruments affecting the title to land, 35.30 filed with the registrar pursuant to sections 508A.01 to 35.31 508A.85, shall be numbered consecutively by the registrarwhoto 35.32 the extent practicable and the registrar shall endorse uponthe35.33sameeach instrument over the registrar's official signature, 35.34 OFFICE OF THE REGISTRAR OF TITLES, ... COUNTY, MINNESOTA, 35.35 CERTIFIED AND FILED ON, together with the date, hour, and minute 35.36 when thesameinstrument is filed, the document number thereof, 36.1 and a reference toitsthe proper CPT.Every instrument shall36.2be retained by the registrar and regarded as registered from the36.3time of filing except that theInstrumentsmayshall be copied 36.4 or reproduced as provided by section 15.17,and the copies or36.5reproductions of them substituted for the originals with the36.6equal force and effect as they have. The originals may be then36.7destroyed as provided by section 15.17as amended. Instruments 36.8 shall then be returned in person or by mail to the party who 36.9 presented the instruments for filing or to any other party to 36.10 whom the registrar is directed to deliver the instruments. When 36.11 the memorial of any instrument is made upon any CPT, the date, 36.12 number, and time of filing of it shall also be endorsed upon the 36.13 CPT. All records and papers relating to registered land in the 36.14 office of the registrar shall be open to the inspection of the 36.15 public at the times and under the conditions as the court may 36.16 prescribe. Duplicates of all instruments, voluntary or 36.17 involuntary, filed and registered with the registrar, may be 36.18 presented with the originals, and shall thereupon be endorsed 36.19 with the file number, and other memoranda on the originals, and 36.20 may be attested and sealed by the registrar, and returned to the 36.21 person presentingitthem. The registrar shall furnish 36.22 certified copies of the instruments filed and registered in the 36.23 registrar's office, upon payment of a fee as provided in section 36.24 357.18.The court shall adopt general forms of memorials and36.25notations to be used by the registrars in registering the common36.26forms of conveyance and other instruments.36.27 Sec. 48. Minnesota Statutes 1998, section 508A.40, is 36.28 amended to read: 36.29 508A.40 [OWNER'S DUPLICATE RECEIPTCOPY OF CPT TO BE 36.30 FURNISHED TO OWNER.] 36.31At the time the firstWhen a CPT is entered, the registrar 36.32 shall make aduplicate of it, endorsing across the face of the36.33duplicate the words "Owner's Duplicate CPT"copy of it and 36.34 deliver it to the owner or the owner's authorizedattorney36.35 agent.The registrar shall, in every case, when it is36.36practicable so to do, take from the owner a receipt for the37.1duplicate CPT, which shall be signed by the owner in person. In37.2the case of multiple owners the receipt may be executed by any37.3one of the owners. The receipt, when signed and delivered in37.4the office of the registrar, shall be witnessed by the registrar37.5or the registrar's deputy. If the receipt is signed elsewhere,37.6it shall be acknowledged in the same manner as a deed. The37.7receipt shall be prima facie evidence of the genuineness of the37.8signature.The copy need not be presented or surrendered to 37.9 permit an instrument, voluntary or otherwise, to be filed or a 37.10 new CPT to be entered, or a memorial to be made on a CPT. 37.11 Sec. 49. Minnesota Statutes 1998, section 508A.421, 37.12 subdivision 2, is amended to read: 37.13 Subd. 2. [MULTIPLE PARCELS OR INTERESTS.] The owner or 37.14 owners of registered land holding (1) one CPT for two or more 37.15 parcels of land or (2) one CPT for undivided interests in one or 37.16 more parcels of land maysurrender the owner's duplicate CPT for37.17the land and thereupon the registrar mayrequest the registrar 37.18 to issue separate CPTs to each owner or for each parcel or any 37.19 combination thereof as may be desired consistent with their 37.20 registered interests, provided a registered land survey is not 37.21 required by section 508A.47. When the registrar of titles has 37.22 issued more than one CPT to one or more owners for one or more 37.23 parcels of land, the owner or owners maysurrender the owner's37.24duplicate CPT for the land and thereupon the registrar37.25mayrequest the registrar to issue a single CPT for all of the 37.26 land to the owner or owners of the land, or the registrar may 37.27 issue two or more CPTs to the owner or owners of the land or for 37.28 each parcel or any combination thereof as may be desired 37.29 consistent with their registered interests, provided a 37.30 registered land survey is not required by section 508A.47. 37.31 Sec. 50. Minnesota Statutes 1998, section 508A.47, 37.32 subdivision 4, is amended to read: 37.33 Subd. 4. [SURVEY; REQUISITES; FILING; COPIES.] The 37.34 registered land survey shall correctly show the legal 37.35 description of the parcel of unplatted land represented by the 37.36 registered land survey and the outside measurements of the 38.1 parcel of unplatted land and of all tracts delineated therein, 38.2 the direction of all lines of the tracts to be shown by angles 38.3 or bearings or other relationship to the outside lines of the 38.4 registered land survey, and the surveyor shall place monuments 38.5 in the ground at appropriate corners, and all tracts shall be 38.6 lettered consecutively beginning with the letter "A." A 38.7 registered land survey which delineates multilevel tracts shall 38.8 include a map showing the elevation view of the tracts with 38.9 their upper and lower boundaries defined by elevations 38.10 referenced to National Geodetic Vertical Datum, 1929 38.11 adjustment. None of the tracts or parts of them may be 38.12 dedicated to the public by the registered land survey. Except 38.13 in counties having microfilming capabilities, a reproduction 38.14 copy of the registered land survey shall be delivered to the 38.15 county auditor. The registered land survey shall be on paper, 38.16 mounted on cloth, shall be a black on white drawing, the scale 38.17 to be not smaller than one inch equals 200 feet, and shall be 38.18 certified to be a correct representation of the parcel of 38.19 unplatted land by a registered surveyor. The mounted drawing 38.20 shall beexactlyeither 17 inches by 14 inches or at the 38.21 registrar's request 20 inches by 30 inches and not less than 38.22 2-1/2 inches of the 14 inches or the 20 inches shall be blank 38.23 for binding purposes. The survey shall be filed in triplicate 38.24 with the registrar of titles. Before filing, however, any 38.25 survey shall be approved in the manner required for the approval 38.26 of subdivision plats, which approval shall be endorsed on it or 38.27 attached to it. 38.28 A certificate from the treasurer stating that current taxes 38.29 have been paid shall be presented at the time of filing before 38.30 the survey is accepted by the registrar for filing. 38.31 In counties having microfilming capabilities, the survey 38.32 may be prepared on sheets of suitable mylar or on linen tracing 38.33 cloth by photographic process or on material of equal quality. 38.34 Notwithstanding any provisions of subdivision 5 to the contrary, 38.35 no other copies of the survey need be filed. 38.36 The registrar shall duly certify and furnish to any person 39.1 a copy of the registered land survey. The copy shall be 39.2 admissible in evidence. 39.3 Sec. 51. Minnesota Statutes 1998, section 508A.49, is 39.4 amended to read: 39.5 508A.49 [INTEREST LESS THAN FEE; NOTICED BY MEMORIAL.] 39.6 No new CPT shall be issued upon any transfer of land 39.7 registered under sections 508A.01 to 508A.85 which does not 39.8 divest the title in fee simple of the land, or some part of it. 39.9 All interests in the registered land, less than an estate in fee 39.10 simple, shall be registered by filing with the registrar the 39.11 instrument which creates, transfers, or claims the interest, and 39.12 by brief memorandum or memorial of it made and signed by the 39.13 registrar upon the CPT.A similar memorandum shall also be made39.14on the owner's duplicate if practicable so to do.The 39.15 cancellation of interests shall be registered in the same manner. 39.16 Sec. 52. Minnesota Statutes 1998, section 508A.51, 39.17 subdivision 1, is amended to read: 39.18 Subdivision 1. [IF VOLUNTARY INSTRUMENT; EXCEPTION: COURT39.19ORDERNEW CPT OR MEMORIAL OF REGISTRATION.]Except as provided39.20in subdivision 2, no new CPT shall be entered or issued, and no39.21memorial shall be made upon any CPT in pursuance of any deed or39.22other voluntary instrument made by the registered owner or the39.23registered owner's attorney-in-fact, unless the owner's39.24duplicate is presented with it, except upon the order of the39.25court. When an order or directive is made, a memorial of it39.26shall be entered, or a new CPT issued as directed. The39.27registrar shall require that the owner's duplicate be presented39.28only when an instrument is submitted for filing that is executed39.29by the registered owner or the registered owner's39.30attorney-in-fact.When any voluntary instrument made by the 39.31 registered owner or the registered owner's attorney-in-fact is 39.32 presented for registration, theproduction of the owner's39.33duplicate CPT shall authorize theregistrartoshall enter a new 39.34 CPT ortomake a memorial of registration in accordance with the 39.35 instrument, and the new CPT or memorial shall be binding upon 39.36 the registered owner and upon all persons claiming under the 40.1 registered owner in favor of every purchaser for value and in 40.2 good faith. In all cases of registration which are procured by 40.3 fraud, the owner may pursue all legal and equitable remedies 40.4 against the parties to the fraud, without prejudice to the 40.5 rights of any innocent holder for value of a CPT. 40.6 Sec. 53. Minnesota Statutes 1998, section 508A.52, is 40.7 amended to read: 40.8 508A.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF 40.9 NEW CPT.] 40.10 An owner of land registered under sections 508A.01 to 40.11 508A.85 who desires to convey the land, or a portion of it, in 40.12 fee, shall execute a deed of conveyance, and file the deed,40.13together with the owner's duplicate CPT,with the registrar. 40.14 The registrar shall require an affidavit by the grantee, or some 40.15 person in the grantee's behalf, which affidavit shall set forth 40.16 the name and residence of the grantee, whether the grantee is 18 40.17 years of age or older, and whether the grantee is or is not 40.18 under legal incapacity, whether or not married, and if married, 40.19 the name of the spouse. The deed of conveyance shall be filed 40.20 and endorsed with the number and place of registration of the 40.21owner'sCPT. Before canceling the outstanding CPT, the 40.22 registrar shall show by memorial on it the registration of the 40.23 deed on the basis of which it is canceled. The encumbrances, 40.24 claims, or interests adverse to the title of the registered 40.25 owner shall be stated upon the new CPT, except so far as they 40.26 may be simultaneously released or discharged. Theowner's40.27duplicate CPT and the originalCPT shall be marked "Canceled" by 40.28 the registrar, who shall enter in the register a new CPT to the 40.29 grantee, and prepare and deliver to the grantee a copy of the 40.30 newowner's duplicateCPT. If a deed in fee is for a portion of 40.31 the land described in a CPT, the memorial of the deed entered by 40.32 the registrar shall include the legal description contained in 40.33 the deed and the registrar shall enter a new CPT to the grantee 40.34 for the portion of the land conveyed and, except as otherwise 40.35 provided in this section, issue a residue CPT to the grantor for 40.36 the portion of the land not conveyed. The registrar shall 41.1 prepare and deliver to each of the parties anew owner's41.2duplicate CPT forcopy of their respective CPTs. In lieu of 41.3 canceling the grantor's CPT and issuing a residue CPTand41.4owner's duplicate CPTto the grantor for the portion of the land 41.5 not conveyed, the registrar may if the grantor's deed does not 41.6 divide a parcel of unplatted land, and in the absence of a 41.7 request to the contrary by the registered owner, mark by the 41.8 land description onboth the owner's duplicate CPT andthe 41.9originalCPT "Part of land conveyed, see memorials." The fee 41.10 for a residue CPT shall be paid to the registrar only when the 41.11 grantor's CPT is canceled after the conveyance by the grantor of 41.12 a portion of the land described in the grantor's CPT. When two 41.13 or more successive conveyances of the same property are filed 41.14 for registration on the same day the registrar may enter a CPT 41.15 in favor of the grantee or grantees in the last of the 41.16 successive conveyances, and the memorial of the previous deed or 41.17 deeds entered on the prior CPT shall have the same force and 41.18 effect as though the prior CPT had been entered in favor of the 41.19 grantee or grantees in the earlier deed or deeds in the 41.20 successive conveyances. The fees for the registration of the 41.21 earlier deed or deeds shall be the same as the fees prescribed 41.22 for the entry of memorials. The registrar of titles, with the 41.23 consent of the transferee, may mark "See memorials for new 41.24 owner(s)" by the names of the registered owners onboththe 41.25originalCPTand the owner's duplicate CPTand also add to the 41.26 memorial of the transferring conveyance a statement that the 41.27 memorial shall serve in lieu of a new CPT in favor of the 41.28 grantee or grantees noted in it and may refrain from canceling 41.29 the CPT until the time it is canceled by a subsequent transfer, 41.30 and the memorial showing the transfer of title shall have the 41.31 same effect as the entry of a new CPT for the land described in 41.32 the CPT. The fee for the registration of a conveyance without 41.33 cancellation of the CPT shall be the same as the fee prescribed 41.34 for the entry of a memorial. 41.35 Sec. 54. Minnesota Statutes 1998, section 508A.55, is 41.36 amended to read: 42.1 508A.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON 42.2CERTIFICATECPT.] 42.3 The registration of a mortgage made by the registered owner 42.4or, the registered owner's attorney-in-fact or by a party who 42.5 has an interest registered on the CPT other than the registered 42.6 owner or the registered owner's attorney-in-fact, shall be made 42.7 in the following manner: Theowner's duplicate CPTmortgage 42.8 deed or other instrument to be registered shall be presented to 42.9 the registrar, together with the mortgage deed, or other42.10instrument to be registered,and the registrar shall enter upon 42.11 theoriginalCPTand also upon the owner's duplicate CPTa 42.12 memorialof the purportof the instrument registered, the exact 42.13 time of filing, and its file number. The registrar shall also 42.14 note upon the registered instrument the time of filing and a 42.15 reference to the volume and page where it is registered. 42.16 Sec. 55. Minnesota Statutes 1998, section 508A.56, is 42.17 amended to read: 42.18 508A.56 [ASSIGNMENT AND DISCHARGE OF MORTGAGE.] 42.19 When a mortgage is assigned, extended, or otherwise dealt 42.20 with, a memorial of the instrument shall be made upon the 42.21originalCPT. In case only a part of the mortgage upon the land 42.22 is intended to be released or discharged, a memorial of the 42.23 partial release shall be entered. 42.24 Sec. 56. Minnesota Statutes 1998, section 508A.57, is 42.25 amended to read: 42.26 508A.57 [FORECLOSURE; NOTICE.] 42.27 Mortgages upon land registered under sections 508A.01 to 42.28 508A.85 may be foreclosed in the same manner as mortgages upon 42.29 unregistered land. Where the mortgage is upon registered land 42.30 it shall be sufficient to authorize the foreclosure of it by 42.31 advertisement, if the mortgage and all assignments of it have 42.32 been registered, and a memorial of it duly entered upon the 42.33 CPT. When a mortgage upon the registered land is foreclosed by 42.34 advertisement, the notice of foreclosure shall state the date of 42.35 the mortgage, when and where registered, and the fact of 42.36 registration. All laws relating to the foreclosure of mortgages 43.1 upon unregistered land shall apply to mortgages upon land 43.2 registered under sections 508A.01 to 508A.85, or any estate or 43.3 interest therein, except as herein provided, and except that a 43.4 notice of the pendency of any suit or proceeding to enforce or 43.5 foreclose the mortgage or other charge upon the land shall be 43.6 filed with the registrar, and a memorial of it entered on the 43.7registerCPT before the first date of publication of the 43.8 foreclosure notice but not sooner than six months before the 43.9 first date of publication. A notice so filed and registered 43.10 shall be notice to the registrar and to all persons thereafter 43.11 dealing with the land or any part of it and satisfies the 43.12 requirements of section 580.032, subdivision 3, with respect to 43.13 registered land. In all foreclosures, all certificates and 43.14 affidavits permitted or required by law to be recorded with the 43.15 county recorder shall be filed with the registrar who shall 43.16 register them. 43.17 Sec. 57. Minnesota Statutes 1998, section 508A.58, is 43.18 amended to read: 43.19 508A.58 [REGISTRATION AFTER FORECLOSURE; NEW CPT.] 43.20 Subdivision 1. [COURT ORDER.] Any person who has, by an 43.21 action or other proceeding to enforce or foreclose a mortgage, 43.22 lien, or other charge upon land registered under sections 43.23 508A.01 to 508A.85, become the owner in fee of the land, or any 43.24 part of it, may have the title registered. Except as provided 43.25 in subdivision 2, the person shall apply by duly verified 43.26 petition to the court for a new CPT to the land, and the court 43.27 shall then, after due notice to all parties in interest and upon 43.28 the hearing as the court may direct, make an order for the 43.29 issuance of a new CPT to the person entitled thereto, and the 43.30 registrar shall then enter a new CPT to the land, or of the part 43.31 of it to which the petitioner is entitled, and issue an owner's43.32duplicateas in the case of a voluntary conveyance. 43.33 Subd. 2. [EXAMINER OF TITLES DIRECTIVE.] Any person who 43.34 has become the owner in fee of land registered under sections 43.35 508A.01 to 508A.85, or any part of the land, pursuant to a 43.36 mortgage foreclosure by action under chapter 581 is entitled to 44.1 a new CPT for the land described in the sheriff's certificate of 44.2 sale or so much of the land as may be described in 44.3 thecertificate of titleCPT, after the redemption period 44.4 expires. The registrar shall enter a new CPTand issue a new44.5owner's duplicate certificateonly pursuant to the court order 44.6 provided in subdivision 1 or upon the written directive of the 44.7 examiner of titles as to the legal sufficiency of the mortgage 44.8 foreclosure proceeding. The directive of the examiner of titles 44.9 also must specify the instruments the registrar shall omit from 44.10 the new CPT by virtue of the foreclosure. 44.11 Sec. 58. Minnesota Statutes 1998, section 508A.59, is 44.12 amended to read: 44.13 508A.59 [REGISTRATION OF JUDGMENT OR FINAL DECREE.] 44.14 A judgment or decree affecting land registered under 44.15 sections 508A.01 to 508A.85 shall be registered upon the 44.16 presentation of a certified copy of it to the registrar, who 44.17 shall enter a memorial of it upon theoriginalCPTand upon the44.18owner's duplicate, if practicable so to do. When the registered 44.19 owner of the land is by the judgment or decree divested of an 44.20 estate in fee in it, or of any part of it, the prevailing party 44.21 shall be entitled to a new CPT for the land, or so much of it as 44.22 is described in the judgment and decree. The registrar shall 44.23 enter the new CPTand issue a new owner's duplicate CPTas in 44.24 the case of a voluntary conveyance. No new CPT shall be entered 44.25 except upon the written certification of the examiner of titles 44.26 as to the legal sufficiency of the documents presented for 44.27 filing for the purpose of issuance of a new CPT or upon the 44.28 order of the district court directing the issuance of it. 44.29 Sec. 59. Minnesota Statutes 1998, section 508A.61, 44.30 subdivision 2, is amended to read: 44.31 Subd. 2. [NEW TRUSTEE.] When a new trustee of land 44.32 registered under sections 508A.01 to 508A.85 is appointed, a new 44.33 CPT shall be entered in the new trustee's name upon presentation 44.34 to the registrar of a certified copy of the decree or other 44.35 instrument appointing the new trusteeand the surrender of the44.36owner's duplicate CPT. 45.1 Sec. 60. Minnesota Statutes 1998, section 508A.61, 45.2 subdivision 3, is amended to read: 45.3 Subd. 3. [VOLUNTARY DISSOLUTION.] Where a corporate owner 45.4 did adopt a resolution for voluntary dissolution pursuant to 45.5 chapter 301, the registrar of titles shall enter a new CPT in 45.6 the name of the trustee in dissolution upon thesurrender of the45.7owner's duplicate CPT and thepresentation of a certified copy 45.8 of the certificate setting forth the adoption of the resolution 45.9 together with the certificate of the secretary of state that the 45.10 certificate of dissolution has been filed for record in the 45.11 secretary's office. 45.12 Sec. 61. Minnesota Statutes 1998, section 508A.71, is 45.13 amended by adding a subdivision to read: 45.14 Subd. 1a. [CORRECTIONS OF REGISTRAR'S CLERICAL 45.15 ERRORS.] The registrar may correct clerical errors or omissions 45.16 made by the registrar's staff in producing CPTs. An error shall 45.17 not be erased or obliterated. The registrar may sign and file a 45.18 correction document and memorialize it upon the affected CPT, or 45.19 may make a correction memorial without a correction document. 45.20 The memorial shall show the date, time of entry, the nature of 45.21 the error or omission, and the correct information. Where the 45.22 error or omission may adversely affect the interest of any 45.23 party, the registrar shall refer the correction to the examiner 45.24 of titles. The registrar shall prepare subsequent CPTs 45.25 correctly and omit the memorial of the correction. 45.26 Sec. 62. Minnesota Statutes 1998, section 508A.71, 45.27 subdivision 2, is amended to read: 45.28 Subd. 2. [COURT ORDERS.] A registered owner or other 45.29 person in interest may, at any time, apply by petition to the 45.30 court, upon the ground that (1) registered interests of any 45.31 description, whether vested, contingent, expectant, or inchoate, 45.32 have terminated and ceased;or that(2) new interests have 45.33 arisen or been created which do not appear upon the CPT;or45.34that(3) any error or omission was made in entering a CPT or any 45.35 memorial on it, or on any duplicate CPT;or that(4) the name of 45.36 any person on the CPT has been changed;or that(5) the 46.1 registered owner has married, or, if registered as married, that 46.2 the marriage has been terminated;or that(6) a corporation 46.3 which owned land registered under sections 508A.01 to 508A.85 46.4 and has been dissolved has not conveyed it within three years 46.5 after its dissolution; or (7) upon any reasonable ground, that 46.6 any other alteration or adjudication should be made. The court 46.7 may hear and determine the petition after notice given to all 46.8 parties in interest, as determined by the examiner of titles, by 46.9 a summons issued in the form and served in the manner as in 46.10 initial applications pursuant to chapter 508 or by an order to 46.11 show cause, as the court may deem appropriate. After notice has 46.12 been given as ordered, the court may order the entry of a new 46.13 CPT, the entry, amendment, or cancellation of a memorial upon a 46.14 CPT, or grant any other relief upon terms, requiring security if 46.15 necessary, as it may consider proper. A certified copy of the 46.16 petition may be filed as a memorial on any appropriate CPT which 46.17 shall be notice forever to purchasers and encumbrancers of the 46.18 pendency of the proceeding and all matters referred to in the 46.19 court files and records pertaining to the proceeding. 46.20 Sec. 63. Minnesota Statutes 1998, section 508A.71, 46.21 subdivision 3, is amended to read: 46.22 Subd. 3. [CANCELLATION OF MEMORIAL.] At the request of a 46.23 registered owner or other person in interest the examiner of 46.24 titles by a written directive may order (1) the amendment or 46.25 cancellation of a memorial relating to racial restrictions, 46.26 rights which are barred by a statute or rights which have 46.27 expired by the terms of the instrument creating the rights, or 46.28 (2) upon the submission of evidence satisfactory to the 46.29 examiner, the correction of the name or designation of a party 46.30 who is a registered owner or who has an interest registered on a 46.31 certificate of title. The registrar of titles shall register 46.32 the directives of the examiner of titles upon theCPTsCPT, and 46.33 shall give full faith to the directives. 46.34 Sec. 64. Minnesota Statutes 1998, section 508A.71, 46.35 subdivision 5, is amended to read: 46.36 Subd. 5. [JOINT TENANTS; SURVIVAL.] In case of a CPT 47.1 outstanding to two or more owners as joint tenants, upon the 47.2 filing for registration of a certificate of death of one of the 47.3 joint tenants and an affidavit of survivorship,and upon the47.4surrender of the owner's duplicate CPT,the registrar without an 47.5 order or directive shall issue a new CPT for the premises to the 47.6 survivor in severalty or to the survivors in joint tenancy as 47.7 the case may be. 47.8 Sec. 65. Minnesota Statutes 1998, section 508A.71, 47.9 subdivision 6, is amended to read: 47.10 Subd. 6. [CERTIFIED COPIES OF INSTRUMENTS; FILING.] When 47.11 instruments affecting land registered under sections 508A.01 to 47.12 508A.85 have been recorded in the office of any county recorder 47.13 in this state, a certified copy of it may be filed for 47.14 registration and registered with like effect as the original 47.15 instrument without an order or directive.The owner's duplicate47.16CPT shall be presented to the registrar, together with the47.17certified copy, whenever the presentation is required by statute47.18for registration of the original instrument.47.19 Sec. 66. Minnesota Statutes 1998, section 508A.72, is 47.20 amended to read: 47.21 508A.72 [AGENCY; POWER TO BE REGISTERED.] 47.22 Any act which may legally be done or performed by any 47.23 person under sections 508A.01 to 508A.85 may be done and 47.24 performed by an agent when duly authorized in writing. The 47.25 instrument or power of attorney shall be filed with and 47.26 registered by the registrar if it is executed and acknowledged 47.27 as required by law in the case of a deed. Any instrument 47.28 revoking the power of attorney may be filed and registered if it 47.29 is executed and acknowledged in the same way. A written 47.30 instrument of revocation of an unregistered power of attorney, 47.31 executed and acknowledged by a person having a registered 47.32 interest in land, may be filed for registration as a memorial 47.33 upon thecertificate of titleCPT. 47.34 Sec. 67. Minnesota Statutes 1998, section 508A.76, is 47.35 amended to read: 47.36 508A.76 [DAMAGES THROUGH ERRONEOUS REGISTRATION;48.1ACTIONREGISTRAR'S LIABILITY.] 48.2 Subdivision 1. [DAMAGES THROUGH ERRONEOUS REGISTRATION.] 48.3 Any person who, without negligence on that person's part, 48.4 sustains any loss or damage by reason of any omission, mistake 48.5 or misfeasance of the registrar or the registrar's deputy, or of 48.6 any examiner or of any court administrator, or of a deputy of 48.7 the court administrator or examiner, in the performance of their 48.8 respective duties under sections 508A.01 to 508A.85, and any 48.9 person who, without negligence on that person's part, is 48.10 wrongfully deprived of any land or of any interest in it by the 48.11 registration of it, or by reason of the registration of any 48.12 other person, as the owner of the land, or by reason of any 48.13 mistake, omission, or misdescription in any CPT, or in any entry 48.14 or memorial, or by any cancellation, in the register of titles, 48.15 and who, by the provisions of sections 508A.01 to 508A.85, is 48.16 precluded from bringing an action for the recovery of the land, 48.17 or of any interest in it, or from enforcing any claim or lien 48.18 upon the same, may institute an action in the district court to 48.19 recover compensation out of the general fund for the loss or 48.20 damage. 48.21 Subd. 2. [DOCUMENTS MISFILED.] The registrar may 48.22 reasonably rely on the affirmative representation of the party 48.23 presenting instruments for filing as to whether the land 48.24 described in the instruments or any part of it is registered or 48.25 unregistered. A party requesting that misfiled instruments be 48.26 refiled with the registrar is responsible for paying any 48.27 additional fees required to properly file any instrument 48.28 misfiled because of an incorrect representation and, if 48.29 applicable, to enter a new CPT. 48.30 Sec. 68. Minnesota Statutes 1998, section 508A.82, 48.31 subdivision 1, is amended to read: 48.32 Subdivision 1. [STANDARD DOCUMENTS.] The fees to be paid 48.33 to the registrar shall be as follows: 48.34 (1) of the fees provided herein, five percent of the fees 48.35 collected under clauses (3), (4), (10), (12),(13),(14), and 48.36 (16),and (18),for filing or memorializing shall be paid to the 49.1 state treasurer and credited to the general fund; plus a $4.50 49.2 surcharge shall be charged and collected in addition to the 49.3 total fees charged for each transaction under clauses (2) to 49.4 (5), (10), (12),(14),and(18)(16), with 50 cents of this 49.5 surcharge to be retained by the county to cover its 49.6 administrative costs and $4 to be paid to the state treasury and 49.7 credited to the general fund; 49.8 (2) for registeringeach originala first CPT,and49.9 including issuing aduplicatecopy of it, $30; 49.10 (3) for registering each instrument transferring the fee 49.11 simple title for which a new CPT is issued and for theissuance49.12andregistration of the new CPT, including a copy of it, $30; 49.13 (4) for the entry of each memorial on acertificate and49.14endorsements upon duplicate CPTsCPT, $15; 49.15 (5) for issuing each residue CPT, $20; 49.16 (6) for exchange CPTs, $10 for each CPT canceled and $10 49.17 for each new CPT issued; 49.18 (7) for eachcertificateCPT showing condition of the 49.19 register, $10; 49.20 (8) for any certified copy of any instrument or writing on 49.21 file in the registrar's office, the same fees allowed by law to 49.22 county recorders for like services; 49.23 (9) for a noncertified copy of any CPT, other than the 49.24 copies issued under clauses (2) and (3), any instrument or 49.25 writing on file in the office of the registrar of titles, or any 49.26 specified page or part of it, an amount as determined by the 49.27 county board for each page or fraction of a page specified. If 49.28 computer or microfilm printers are used to reproduce the 49.29 instrument or writing, a like amount per image; 49.30 (10) for filing two copies of any plat in the office of the 49.31 registrar, $30; 49.32 (11) for any other service under sections 508A.01 to 49.33 508A.85, the fee the court shall determine; 49.34(12) for issuing a duplicate CPT pursuant to the directive49.35of the examiner of titles in counties in which the compensation49.36of the examiner is paid in the same manner as the compensation50.1of other county employees, $50, plus $10 to memorialize;50.2(13) for issuing a duplicate CPT pursuant to the directive50.3of the examiner of titles in counties in which the compensation50.4of the examiner is not paid by the county or pursuant to an50.5order of the court, $10;50.6(14)(12) for filing a condominium plat or an amendment to 50.7 it in accordance with chapter 515, $30; 50.8(15)(13) for a copy of a condominium plat filed pursuant 50.9 to chapters 515 and 515A, the fee shall be $1 for each page of 50.10 the condominium plat with a minimum fee of $10; 50.11(16)(14) for filing a condominium declaration and 50.12 condominium plat or an amendment to it in accordance with 50.13 chapter 515A, $10 for eachcertificateCPT upon which the 50.14 document is registered and $30 for the filing of the condominium 50.15 plat or an amendment to it; 50.16(17)(15) in counties in which the compensation of the 50.17 examiner of titles is paid in the same manner as the 50.18 compensation of other county employees, for each parcel of land 50.19 contained in the application for a CPT, as the number of parcels 50.20 is determined by the examiner, a fee which is reasonable and 50.21 which reflects the actual cost to the county, established by the 50.22 board of county commissioners of the county in which the land is 50.23 located; 50.24(18)(16) for filing a registered land survey in triplicate 50.25 in accordance with section 508A.47, subdivision 4, $30; and 50.26(19)(17) for furnishing a certified copy of a registered 50.27 land survey in accordance with section 508A.47, subdivision 4, 50.28 $10. 50.29 Sec. 69. Minnesota Statutes 1998, section 508A.85, 50.30 subdivision 3, is amended to read: 50.31 Subd. 3. [CHANGEOVER AT REQUEST OF OWNER.] Subsequent to 50.32 the expiration of the five year period set forth in section 50.33 508A.17, any registered owner of a CPT may request a changeover, 50.34 and uponsurrender of the owner's duplicate CPT andpayment of 50.35 the fee for an exchange as specified in section 508A.82, clause 50.36 (6), the registrar shall issue a certificate of title and cancel 51.1 the CPT. 51.2 Sec. 70. Minnesota Statutes 1998, section 508A.85, 51.3 subdivision 4, is amended to read: 51.4 Subd. 4. [CHANGEOVER, MEMORIALS ON CERTIFICATE OF TITLE.] 51.5 Any certificate of title issued pursuant to this section shall 51.6 carry forward all memorials which still affect the land, except 51.7 for the memorial of the examiner's supplemental directive issued 51.8 pursuant to section 508A.22, subdivision 2. It shall be made 51.9 subject to all statutory exceptions and be issued in the same 51.10 form as provided in section 508.35, except that, in lieu of 51.11 reciting that the certificate of title was issued pursuant to 51.12 the order of the district court, the certificate of title shall 51.13 recite that it was issued pursuant to the provisions of this 51.14 section and recite the date thefirstcertificate of title was 51.15 issued for the land involved. The memorial on the CPT pursuant 51.16 to section 508A.351 shall not be removed without an order of the 51.17 district court. 51.18 Sec. 71. Minnesota Statutes 1998, section 524.2-201, is 51.19 amended to read: 51.20 524.2-201 [DEFINITIONS.] 51.21 In this part: 51.22 (1) As used in sections other than section 524.2-205, 51.23 "decedent's nonprobate transfers to others" means the amounts 51.24 that are included in the augmented estate under section 51.25 524.2-205. 51.26 (2) "Interest in property held with right of survivorship" 51.27 means the severable interest owned by the person or persons 51.28 whose interest is being determined in property held in joint 51.29 tenancy or in other form of common ownership with a right of 51.30 survivorship. The interest shall be identified and valued as of 51.31 the time immediately prior to the death of the decedent or the 51.32 date of the transfer which causes the property to be included in 51.33 the augmented estate, as the case may be. In the case of an 51.34 account described in article 6, part 2, the severable interest 51.35 owned by the person is the amount which belonged to the person 51.36 determined under section 524.6-203. In the case of property 52.1 described in article 6, part 3, the severable interest owned by 52.2 the person is the amount consistent with section 524.6-306. 52.3 (3) "Marriage," as it relates to a transfer by the decedent 52.4 during marriage, means any marriage of the decedent to the 52.5 decedent's surviving spouse. 52.6 (4) "Nonadverse party" means a person who does not have a 52.7 substantial beneficial interest in the trust or other property 52.8 arrangement that would be adversely affected by the exercise or 52.9 nonexercise of the power that the person possesses respecting 52.10 the trust or other property arrangement. A person having a 52.11 general power of appointment over property is deemed to have a 52.12 beneficial interest in the property. 52.13 (5) "Power" or "power of appointment" includes a power to 52.14 designate the beneficiary of an insurance policy or other 52.15 contractual arrangement. 52.16 (6) "Presently exercisable general power of appointment" 52.17 means a power possessed by a person at the time in question to 52.18 create a present or future interest in the person, in the 52.19 person's creditors, in the person's estate, or in the creditor 52.20 of the person's estate, whether or not the person then had the 52.21 capacity to exercise the power. "General power of appointment" 52.22 means a power, whether or not presently exercisable, possessed 52.23 by a person to create a present or future interest in the 52.24 person, in the person's creditors, in the person's estate, or in 52.25 creditors of the person's estate. 52.26 (7) "Probate estate" means property that would pass by 52.27 intestate succession if the decedent dies without a valid will. 52.28 (8) "Property" includes values subject to a beneficiary 52.29 designation. 52.30 (9) "Right to income" includes a right to payments under a 52.31 commercial or private annuity, an annuity trust, a unitrust, or 52.32 a similar arrangement. 52.33 (10) "Transfer" includes: (i) the exercise, release, or 52.34 lapse of a general power of appointment created by the decedent 52.35 alone or in conjunction with any other person, or exercisable by 52.36 a nonadverse party; and (ii) the exercise or release by the 53.1 decedent of a presently exercisable general power of appointment 53.2 created by someone other than the decedent. "Transfer" does not 53.3 include the lapse, other than a lapse at death, of a power 53.4 described in clause (ii). 53.5 (11) "Bona fide purchaser" means a purchaser for value in 53.6 good faith and without notice or actual knowledge of an adverse 53.7 claim, or a person who receives a payment or other item of 53.8 property in partial or full satisfaction of a legally 53.9 enforceable obligation in good faith without notice of an 53.10 adverse claim. In the case of real property located in 53.11 Minnesota purchased from a successor or successors in interest 53.12 of a decedent, the purchaser is without notice of an adverse 53.13 claim arising under this part or, if the decedent was not 53.14 domiciled in Minnesota at the time of death, arising under 53.15 similar provisions of the law of the decedent's domicile, unless 53.16 the decedent's surviving spouse has filed a notice in the office 53.17 of the county recorder of the county in which the real property 53.18 is located or, if the property is registered land, in the office 53.19 of the registrar of titles of the county in which the real 53.20 property is located, containing the legal description of the 53.21 property, a brief statement of the nature and extent of the 53.22 interest claimed, and the venue, title, and file number of the 53.23 proceeding for an elective share, if any has been commenced. 53.24 The registrar of titles is authorized to accept for registration 53.25without production of the owner's duplicate of the certificate53.26of titleany such notice which relates to registered land. 53.27 Sec. 72. [REPEALER.] 53.28 Minnesota Statutes 1998, sections 473H.02, subdivision 11; 53.29 473H.05, subdivision 3; 508.405; 508.421, subdivision 1; 508.44; 53.30 508.45; 508.51, subdivision 2; 508.835; 508A.421, subdivision 1; 53.31 508A.44; 508A.45; 508A.51, subdivision 2; and 508A.835, are 53.32 repealed. 53.33 Sec. 73. [EFFECTIVE DATE.] 53.34 Article 1 is effective January 1, 2000. 53.35 ARTICLE 2 53.36 Section 1. Minnesota Statutes 1998, section 515B.1-102, is 54.1 amended to read: 54.2 515B.1-102 [APPLICABILITY.] 54.3 (a) Except as provided in this section, this chapter, and 54.4 not chapters 515 and 515A, applies to all common interest 54.5 communities created within this state on and after June 1, 1994. 54.6 (b) The applicability of this chapter to common interest 54.7 communities created prior to June 1, 1994, shall be as follows: 54.8 (1) This chapter shall apply to condominiums created under 54.9 chapter 515A with respect to events and circumstances occurring 54.10 on and after June 1, 1994; provided (i) that this chapter shall 54.11 not invalidate the declarations, bylaws or condominium plats of 54.12 those condominiums, and (ii) that chapter 515A, and not this 54.13 chapter, shall govern all rights and obligations of a declarant 54.14 of a condominium created under chapter 515A, and the rights and 54.15 claims of unit owners against that declarant. 54.16 (2) The following sectionsshallin this chapter apply to 54.17 condominiums created under chapter 515: 515B.1-104 (Variation 54.18 by Agreement); 515B.1-105 (Separate Titles and Taxation); 54.19 515B.1-106 (Applicability of Local Ordinances, Regulations, and 54.20 Building Codes); 515B.1-107 (Eminent Domain); 515B.1-108 54.21 (Supplemental General Principles of Law Applicable); 515B.1-109 54.22 (Construction Against Implicit Repeal); 515B.1-110 (Uniformity 54.23 of Application and Construction); 515B.1-111 (Severability); 54.24 515B.1-112 (Unconscionable Agreement or Term of Contract); 54.25 515B.1-113 (Obligation of Good Faith); 515B.1-114 (Remedies to 54.26 be Liberally Administered); 515B.1-115 (Notice); 515B.1-116 54.27 (Recording); 515B.2-103 (Construction and Validity of 54.28 Declaration and Bylaws); 515B.2-104 (Description of 54.29 Units); 515B.2-108(d) (Allocation of Interests); 515B.2-109(c) 54.30 (Common Elements and Limited Common Elements); 515B.2-112 54.31 (Subdivision or Conversion of Units); 515B.2-113 (Alteration of 54.32 Units); 515B.2-114 (Relocation of Boundaries Between Adjoining 54.33 Units); 515B.2-115 (Minor Variations in Boundaries); 515B.2-118 54.34 (Amendment of Declaration); 515B.3-102 (Powers of Unit Owners' 54.35 Association); 515B.3-103(a), (b), and (g) (Board; Directors and 54.36 Officers; Period of Declarant Control); 515B.3-107 (Upkeep of 55.1 Common Interest Community); 515B.3-108 (Meetings); 515B.3-109 55.2 (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and 55.3 Contract Liability); 515B.3-112 (Conveyance or Encumbrance of 55.4 Common Elements); 515B.3-113 (Insurance); 515B.3-114 (Reserves; 55.5 Surplus Funds); 515B.3-115 (c), (e), (f), (g), (h), and (i) 55.6 (Assessments for Common Expenses); 515B.3-116 (Lien for 55.7 Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association 55.8 Records); 515B.3-119 (Association as Trustee); 515B.3-121 55.9 (Accounting Controls); 515B.4-107 (Resale of Units); 515B.4-108 55.10 (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of 55.11 Action; Attorney's Fees); and. Section 515B.1-103 (Definitions) 55.12 shall apply to the extent necessary in construing any ofthose55.13 the sections referenced in this section.The foregoingSections 55.14shall515B.1-105, 515B.1-106, 515B.1-107, 515B.1-116, 55.15 515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110, 55.16 515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 55.17 515B.3-121, 515B.4-107, 515B.4-108, and 515B.4-116 apply only 55.18 with respect to events and circumstances occurring on and after 55.19 June 1, 1994, and shall not. All other sections referenced in 55.20 this section apply only with respect to events and circumstances 55.21 occurring after May 31, 1999. A section referenced in this 55.22 section does not invalidate the declarations, bylaws or 55.23 condominium plats ofthosecondominiums created before the 55.24 effective date of amendments made by this section. But all 55.25 sections referenced in this section prevail over the 55.26 declarations, bylaws, CIC plats, rules and regulations under 55.27 them, of condominiums created before the effective date of 55.28 amendments made by this section, except to the extent that this 55.29 chapter defers to the declarations, bylaws, CIC plats, or rules 55.30 and regulations issued under them. 55.31 (3) This chapter shall not apply to cooperatives and 55.32 planned communities created prior to June 1, 1994; except by 55.33 election pursuant to subsection (d), and except that sections 55.34 515B.1-116, subsections (a), (c), (d), (e), (f), and (h), 55.35 515B.4-107, and 515B.4-108, apply to all planned communities and 55.36 cooperatives regardless of when they are created. 56.1 (c) This chapter shall not invalidate any amendment to the 56.2 declaration, bylaws or condominium plat of any condominium 56.3 created under chapter 515 or 515A if the amendment was recorded 56.4 before June 1, 1994. Any amendment recorded on or after June 1, 56.5 1994, shall be adopted in conformity with the procedures and 56.6 requirements specified by those instruments and by this 56.7 chapter. If the amendment grants to any person any rights, 56.8 powers or privileges permitted by this chapter, all correlative 56.9 obligations, liabilities and restrictions contained in this 56.10 chapter shall also apply to that person. 56.11 (d) Any condominium created under chapter 515, any planned 56.12 community or cooperative which would be exempt from this chapter 56.13 under subsection (e), or any planned community or cooperative 56.14 created prior to June 1, 1994, may elect to be subject to this 56.15 chapter, as follows: 56.16 (1) The election shall be accomplished by recording a 56.17 declaration or amended declaration, and a new or amended CIC 56.18 plat where required, and by approving bylaws or amended bylaws, 56.19 which conform to the requirements of this chapter, and which, in 56.20 the case of amendments, are adopted in conformity with the 56.21 procedures and requirements specified by the existing 56.22 declaration and bylaws of the common interest community, and by 56.23 any applicable statutes. 56.24 (2) In a condominium, the preexisting condominium plat 56.25 shall be the CIC plat and an amended CIC plat shall be required 56.26 only if the amended declaration or bylaws contain provisions 56.27 inconsistent with the preexisting condominium plat. The 56.28 condominium's CIC number shall be the apartment ownership number 56.29 or condominium number originally assigned to it by the recording 56.30 officer. In a cooperative in which the unit owners' interests 56.31 are characterized as real estate, a CIC plat shall be required. 56.32 In a planned community, the preexisting plat recorded pursuant 56.33 to chapter 505, 508, or 508A, or the part of the plat upon which 56.34 the common interest community is located, shall be the CIC plat. 56.35 (3) The amendment shall conform to the requirements of 56.36 section 515B.2-118(d). 57.1 (4) Except as permitted by paragraph (3), no declarant, 57.2 affiliate of declarant, association, master association nor unit 57.3 owner may acquire, increase, waive, reduce or revoke any 57.4 previously existing warranty rights or causes of action that one 57.5 of said persons has against any other of said persons by reason 57.6 of exercising the right of election under this subsection. 57.7 (5) A common interest community which elects to be subject 57.8 to this chapter may, as a part of the election process, change 57.9 its form of ownership by complying with the requirements of 57.10 section 515B.2-123. 57.11 (e) Except as otherwise provided in this subsection, this 57.12 chapter shall not apply, except by election pursuant to 57.13 subsection (d), to the following: 57.14 (1) a planned community or cooperative which consists of 12 57.15 or fewer units subject to the same declaration, which is not 57.16 subject to any rights to add additional real estate and which 57.17 will not be subject to a master association; 57.18 (2) a common interest community where the units consist 57.19 solely of separate parcels of real estate designed or utilized 57.20 for detached single family dwellings or agricultural purposes, 57.21 and where the association has no obligation to maintain any 57.22 building containing a dwelling or any agricultural building; 57.23 (3) aplanned community orcooperative where, at the time 57.24 of creation of theplanned community orcooperative, the unit 57.25 owners' interests in the dwellings as described in the 57.26 declaration consist solely ofleasehold interestsproprietary 57.27 leases having an unexpired term of fewer than 20 years, 57.28 including renewal options; 57.29 (4)a common interest community containing only a57.30combination of dwellings described in paragraphs (2) and (3);57.31(5)planned communities and cooperatives limited by the 57.32 declaration to nonresidential use; or 57.33(6)(5) real estate subject only to an instrument or 57.34 instruments filed primarily for the purpose of creating or 57.35 modifying rights with respect to access, utilities, parking, 57.36 ditches, drainage, or irrigation. 58.1 (f) Section 515B.1-106 shall apply to all common interest 58.2 communities. 58.3 Sec. 2. Minnesota Statutes 1998, section 515B.1-103, is 58.4 amended to read: 58.5 515B.1-103 [DEFINITIONS.] 58.6 In the declaration and bylaws, unless specifically provided 58.7 otherwise or the context otherwise requires, and in this chapter: 58.8 (1) "Additional real estate" means real estate that may be 58.9 added to a flexible common interest community. 58.10 (2) "Affiliate of a declarant" means any person who 58.11 controls, is controlled by, or is under common control with a 58.12 declarant. 58.13 (A) A person "controls" a declarant if the person (i) is a 58.14 general partner, officer, director, or employer of the 58.15 declarant, (ii) directly or indirectly or acting in concert with 58.16 one or more other persons, or through one or more subsidiaries, 58.17 owns, controls, holds with power to vote, or holds proxies 58.18 representing, more than 20 percent of the voting interest in the 58.19 declarant, (iii) controls in any manner the election of a 58.20 majority of the directors of the declarant, or (iv) has 58.21 contributed more than 20 percent of the capital of the declarant. 58.22 (B) A person "is controlled by" a declarant if the 58.23 declarant (i) is a general partner, officer, director, or 58.24 employer of the person, (ii) directly or indirectly or acting in 58.25 concert with one or more other persons, or through one or more 58.26 subsidiaries, owns, controls, holds with power to vote, or holds 58.27 proxies representing, more than 20 percent of the voting 58.28 interest in the person, (iii) controls in any manner the 58.29 election of a majority of the directors of the person, or (iv) 58.30 has contributed more than 20 percent of the capital of the 58.31 person. 58.32 (C) Control does not exist if the powers described in this 58.33 subsection are held solely as a security interest and have not 58.34 been exercised. 58.35 (3) "Allocated interests" means the following interests 58.36 allocated to each unit: (i) in a condominium, the undivided 59.1 interest in the common elements, the common expense liability, 59.2 and votes in the association; (ii) in a cooperative, the common 59.3 expense liability and the ownership interest and votes in the 59.4 association; and (iii) in a planned community, the common 59.5 expense liability and votes in the association. 59.6 (4) "Association" means the unit owners' association 59.7 organized under section 515B.3-101. 59.8 (5) "Board" means the body, regardless of name, designated 59.9 in the articles of incorporation, bylaws or declaration to act 59.10 on behalf of the association, or on behalf of a master 59.11 association when so identified. 59.12 (6) "CIC plat" means a common interest community plat 59.13 described in section 515B.2-110. 59.14 (7) "Common elements" means all portions of the common 59.15 interest community other than the units. 59.16 (8) "Common expenses" means expenditures made or 59.17 liabilities incurred by or on behalf of the association, or 59.18 master association when so identified, together with any 59.19 allocations to reserves. 59.20 (9) "Common expense liability" means the liability for 59.21 common expenses allocated to each unit pursuant to section 59.22 515B.2-108. 59.23 (10) "Common interest community" or "CIC" means contiguous 59.24 or noncontiguous real estate within Minnesota that is subject to 59.25 an instrument which obligates persons owning a separately 59.26 described parcel of the real estate, or occupying a part of the 59.27 real estate pursuant to a proprietary lease, by reason of their 59.28 ownership or occupancy, to pay for (i) real estate taxes levied 59.29 against; (ii) insurance premiums payable with respect to; (iii) 59.30 maintenance of; or (iv) construction, maintenance, repair or 59.31 replacement of improvements located on one or more parcels or 59.32 parts of the real estate other than the parcel or part that the 59.33 person owns or occupies. Real estate subject to a master 59.34 association, regardless of when the master association was 59.35 formed, shall not collectively constitute a separate common 59.36 interest community unless so stated in the master declaration 60.1 recorded against the real estate pursuant to section 515B.2-121, 60.2 subsection (f)(1). 60.3 (11) "Condominium" means a common interest community in 60.4 which (i) portions of the real estate are designated as units, 60.5 (ii) the remainder of the real estate is designated for common 60.6 ownership solely by the owners of the units, and (iii) undivided 60.7 interests in the common elements are vested in the unit owners. 60.8 (12) "Conversion property" means real estate on which is 60.9 located a building that at any time within two years before 60.10 creation of the common interest community was occupied as a 60.11 residence wholly or partially by persons other than purchasers 60.12 and persons who occupy with the consent of purchasers. 60.13 (13) "Cooperative" means a common interest community in 60.14 which the real estate is owned by an association, each of whose 60.15 members is entitled by virtue of the member's ownership interest 60.16 in the association to a proprietary lease. 60.17 (14) "Dealer" means a person in the business of selling 60.18 units for the person's own account. 60.19 (15) "Declarant" means: 60.20 (i) if the common interest community has been created, (A) 60.21 any person who has executed a declaration, or an amendment to a 60.22 declaration to add additional real estate, except secured 60.23 parties, persons whose interests in the real estate will not be 60.24 transferred to unit owners, or, in the case of a leasehold 60.25 common interest community, a lessor who possesses no special 60.26 declarant rights and who is not an affiliate of a declarant who 60.27 possesses special declarant rights, or (B) any person who 60.28 reserves, or succeeds under section 515B.3-104 to any special 60.29 declarant rights; or 60.30 (ii) any person or persons acting in concert who have 60.31 offered prior to creation of the common interest community to 60.32 transfer their interest in a unit to be created and not 60.33 previously transferred. 60.34 (16) "Declaration" means any instrument, however 60.35 denominated, including any amendment to the instrument, that 60.36 creates a common interest community. 61.1 (17) "Dispose" or "disposition" means a voluntary transfer 61.2 to a purchaser of any legal or equitable interest in the common 61.3 interest community, but the term does not include the transfer 61.4 or release of a security interest. 61.5 (18) "Flexible common interest community" means a common 61.6 interest community to which additional real estate may be added. 61.7 (19) "Leasehold common interest community" means a common 61.8 interest community in which all or a portion of the real estate 61.9 is subject to a lease the expiration or termination of which 61.10 will terminate the common interest community or reduce its size. 61.11 (20) "Limited common element" means a portion of the common 61.12 elements allocated by the declaration or by operation of section 61.13 515B.2-102(d) or (f) for the exclusive use of one or more but 61.14 fewer than all of the units. 61.15 (21) "Master association" means an entity created on or 61.16 after June 1, 1994, that directly or indirectly exercises any of 61.17 the powers set forth in section 515B.3-102 on behalf of one or 61.18 more members described in section 515B.2-121(b), (i), (ii) or 61.19 (iii), whether or not it also exercises those powers on behalf 61.20 of one or more property owners associations described in section 61.21 515B.2-121(b)(iv).An entityA person (i) hired by an 61.22 association to perform maintenance, repair, accounting, 61.23 bookkeeping or management services, or (ii) granted authority 61.24 under an instrument recorded primarily for the purpose of 61.25 creating rights or obligations with respect to utilities, 61.26 access, drainage, or recreational amenities, is not, solely by 61.27virtuereason of that relationship, a master association. 61.28 (22) "Master declaration" means a written instrument, 61.29 however named, (i) recorded on or after June 1, 1994, against 61.30 property subject to powers exercised by a master association and 61.31 (ii) satisfying the requirements of section 515B.2-121, 61.32 subsection (f)(1). 61.33(22)(23) "Period of declarant control" means the time 61.34 period provided for in section 515B.3-103(c) during which the 61.35 declarant may appoint and remove officers and directors of the 61.36 association. 62.1(23)(24) "Person" means an individual, corporation, 62.2 limited liability company, partnership, trustee under a trust, 62.3 personal representative, guardian, conservator, government, 62.4 governmental subdivision or agency, or other legal or commercial 62.5 entity capable of holding title to real estate. 62.6(24)(25) "Planned community" means a common interest 62.7 community that is not a condominium or a cooperative. A 62.8 condominium or cooperative may be a part of a planned community. 62.9(25)(26) "Proprietary lease" means an agreement with a 62.10 cooperative association whereby a member of the association is 62.11 entitled to exclusive possession of a unit in the cooperative. 62.12(26)(27) "Purchaser" means a person, other than a 62.13 declarant, who by means of a voluntary transfer acquires a legal 62.14 or equitable interest in a unit other than (i) a leasehold 62.15 interest of less than 20 years, including renewal options, or 62.16 (ii) a security interest. 62.17(27)(28) "Real estate" means any fee simple, leasehold or 62.18 other estate or interest in, over, or under land, including 62.19 structures, fixtures, and other improvements and interests that 62.20 by custom, usage, or law pass with a conveyance of land though 62.21 not described in the contract of sale or instrument of 62.22 conveyance. "Real estate" may include spaces with or without 62.23 upper or lower boundaries, or spaces without physical boundaries. 62.24(28)(29) "Residential use" means use as a dwelling, 62.25 whether primary, secondary or seasonal, but not transient use 62.26 such as hotels or motels. 62.27(29)(30) "Secured party" means the person owning a 62.28 security interest as defined in paragraph (30). 62.29(30)(31) "Security interest" means a perfected interest in 62.30 real estate or personal property, created by contract or 62.31 conveyance, which secures payment or performance of an 62.32 obligation. The term includes a mortgagee's interest in a 62.33 mortgage, a vendor's interest in a contract for deed, a lessor's 62.34 interest in a lease intended as security, a holder's interest in 62.35 a sheriff's certificate of sale during the period of redemption, 62.36 an assignee's interest in an assignment of leases or rents 63.1 intended as security, a lender's interest in a cooperative share 63.2 loan, a pledgee's interest in the pledge of an ownership 63.3 interest, or any other interest intended as security for an 63.4 obligation under a written agreement. 63.5(31)(32) "Special declarant rights" means rights reserved 63.6 in the declaration for the benefit of a declarant to: 63.7 (i) complete improvements indicated on the CIC plat; 63.8 (ii) add additional real estate to a common interest 63.9 community; 63.10 (iii) subdivide units or convert units into common 63.11 elements, limited common elements and/or units; 63.12 (iv) maintain sales offices, management offices, signs 63.13 advertising the common interest community, and models; 63.14 (v) use easements through the common elements for the 63.15 purpose of making improvements within the common interest 63.16 community or any additional real estate; 63.17 (vi) create a master association and provide for the 63.18 exercise of authority by the master association over the common 63.19 interest community or its unit owners; 63.20 (vii) merge or consolidate a common interest community with 63.21 another common interest community of the same form of ownership; 63.22 or 63.23 (viii) appoint or remove any officer or director of the 63.24 association, or the master association where applicable, during 63.25 any period of declarant control. 63.26(32)(33) "Time share" means a right to occupy a unit or 63.27 any of several units during three or more separate time periods 63.28 over a period of at least three years, including renewal 63.29 options, whether or not coupled with an estate or interest in a 63.30 common interest community or a specified portion thereof. 63.31(33)(34) "Unit" means a physical portion of a common 63.32 interest community the boundaries of which are described in the 63.33 common interest community's declaration and which is intended 63.34 for separate ownership or separate occupancy pursuant to a 63.35 proprietary lease. 63.36(34)(35) "Unit identifier" means English letters or Arabic 64.1 numerals, or a combination thereof, which identify only one unit 64.2 in a common interest community and which meet the requirements 64.3 of section 515B.2-104. 64.4(35)(36) "Unit owner" means a declarant or other person 64.5 who owns a unit, or a lessee of a unit in a leasehold common 64.6 interest community whose lease expires simultaneously with any 64.7 lease the expiration or termination of which will remove the 64.8 unit from the common interest community, but does not include a 64.9 secured party. In a common interest community, the declarant is 64.10 the unit owner of a unit until that unit has been conveyed to 64.11 another person. 64.12 Sec. 3. Minnesota Statutes 1998, section 515B.1-116, is 64.13 amended to read: 64.14 515B.1-116 [RECORDING.] 64.15 (a) A declaration, bylaws, any amendment to a declaration 64.16 or bylaws, and any other instrument affecting a common interest 64.17 community shall be entitled to be recorded. In those counties 64.18 which have a tract index, the county recorder shall enter the 64.19 declaration in the tract index for each unit affected. The 64.20 registrar of titles shall file the declaration on the 64.21 certificate of title for each unit affected. 64.22 (b) The recording officer shall upon request promptly 64.23 assign a number (CIC number) to a common interest community to 64.24 be formed or to a common interest community resulting from the 64.25 merger of two or more common interest communities. 64.26 (c) Documents recorded pursuant to this chapter shall in 64.27 the case of registered land be filed, and references to the 64.28 recording of documents shall mean filed in the case of 64.29 registered land. 64.30 (d) Subject to any specific requirements of this chapter, 64.31 ifany document to be recorded pursuant to this chapter requires64.32approval by a certain vote or agreement of thea recorded 64.33 document relating to a common interest community purports to 64.34 require the execution of any restatement or amendment of the 64.35 document by a certain percentage of unit owners or secured 64.36 parties, and if the amendment or restatement is to be recorded 65.1 pursuant to this chapter, an affidavit of the president or 65.2 secretary of the association stating that the required vote or 65.3 agreement has occurred shall be attached to the document to be 65.4 recorded and shall constitute prima facie evidence of the 65.5 representations contained therein. 65.6 (e) If a common interest community is located on registered 65.7 land, the recording fee for any document affecting two or more 65.8 units shall be the then-current fee for registering the document 65.9 on the certificates of title for the first ten affected 65.10 certificates and one-third of the then-current fee for each 65.11 additional affected certificate. This provision shall not apply 65.12 to recording fees for deeds of conveyance, with the exception of 65.13 deeds given pursuant to sections 515B.2-119 and 515B.3-112. 65.14 (f) Except as permitted under this subsection, a recording 65.15 officer shall not file or record a declaration creating a new 65.16 common interest community, unless the county treasurer has 65.17 certified that the property taxes payable in the current year 65.18 for the real estate included in the proposed common interest 65.19 community have been paid. This certification is in addition to 65.20 the certification for delinquent taxes required by section 65.21 272.12. In the case of preexisting common interest communities, 65.22 the recording officer shall accept, file, and record the 65.23 following instruments, without requiring a certification as to 65.24 the current or delinquent taxes on any of the units in the 65.25 common interest community: (i) a declaration subjecting the 65.26 common interest community to this chapter; (ii) a declaration 65.27 changing the form of a common interest community pursuant to 65.28 section 515B.2-123; or (iii) an amendment to or restatement of 65.29 the declaration, bylaws, or CIC plat. In order for the 65.30 instruments to be accepted and recorded under the preceding 65.31 sentence, the assessor must certify or otherwise inform the 65.32 recording officer that, for taxes payable in the current year, 65.33 the assessor has allocated taxable values to each unit or has 65.34 separately assessed each unit. 65.35 (g) The registrar of titles shall not require the filing on 65.36 certificates of title previously issued for units in a flexible 66.1 common interest community of an amendment to a declaration 66.2 pursuant to section 515B.2-111 made solely to add additional 66.3 real estate. 66.4 (h) In the case of an amendment to a declaration or a 66.5 transfer of special declarant rights with respect to a common 66.6 interest community located on registered land, the registrar of 66.7 titles shall not require the surrender of the owner's duplicate 66.8 certificates of title to record the document, except for any 66.9 owner's duplicate certificates of title relating to additional 66.10 real estate being added by an amendment under section 515B.2-111. 66.11 Sec. 4. Minnesota Statutes 1998, section 515B.2-101, is 66.12 amended to read: 66.13 515B.2-101 [CREATION OF COMMON INTEREST COMMUNITIES.] 66.14 (a) On and after June 1, 1994, a common interest community 66.15 may be created only as follows: 66.16 (1) A condominium may be created only by recording a 66.17 declaration. 66.18 (2) A cooperative may be created only by recording a 66.19 declaration and by recording a conveyance of the real estate 66.20 subject to that declaration to the association. 66.21 (3) A planned community which includes common elements may 66.22 be created only by simultaneously recording a declaration andby66.23recordinga conveyance of the common elements subject to that 66.24 declaration to the association. 66.25 (4) A planned community without common elements may be 66.26 created only by recording a declaration. 66.27 (b) Except as otherwise expressly provided in this chapter, 66.28 the declaration shall be executed by all persons whose interests 66.29 in the real estate will be conveyed to unit owners, except 66.30 vendors under contracts for deed, and by every lessor of a lease 66.31 the expiration or termination of which will terminate the common 66.32 interest community. The declaration shall be recorded in every 66.33 county in which any portion of the common interest community is 66.34 located. Failure of any party not required to execute a 66.35 declaration, but having a recorded interest in the common 66.36 interest community, to join in the declaration shall have no 67.1 effect on the validity of the common interest community; 67.2 provided that the party is not bound by the declaration until 67.3 that party acknowledges the existence of the common interest 67.4 community in a recorded instrument. 67.5 (c) In a condominium or real estate cooperative where the 67.6 unit boundaries are delineated by a physical structure, a 67.7 declaration, or an amendment to a declaration adding units,may67.8 shall not be recorded unless all structural components and 67.9 mechanical systemsof all buildings containing or comprising any67.10unitsserving more than one unit in all buildings containing the 67.11 units thereby created, but notnecessarilythe units, are 67.12 substantially completed, as evidenced by a recorded certificate 67.13 executed by a registered engineer or architect. 67.14 (d) A project which (i) meets the definition of a "common 67.15 interest community" in section 515B.1-103(10), (ii) is created 67.16 after May 31, 1994, and (iii) is not exempt under section 67.17 515B.1-102(e), is subject to this chapter even if this or other 67.18 sections of the chapter have not been complied with, and the 67.19 declarant and all unit owners are bound by all requirements and 67.20 obligations of this chapter. 67.21 Sec. 5. Minnesota Statutes 1998, section 515B.2-104, is 67.22 amended to read: 67.23 515B.2-104 [DESCRIPTION OF UNITS.] 67.24 (a) A description of a unit is legally sufficient if it 67.25 sets forth (i) the unit identifier of the unit, (ii) the number 67.26 assigned to the common interest community by the recording 67.27 officer, and (iii) the county in which the unit is located. 67.28 (b) If the CIC plat for a planned community complies with 67.29 chapter 505, 508, or 508A, then a description of a unit in the 67.30 planned community is legally sufficient if it is stated in terms 67.31 of a plat or registered land survey.Any instrument conveying67.32or asserting an interest in a unit shall reference the county67.33and the common interest community number immediately following67.34the name of the plat or registered land survey.In planned 67.35 communities whose CIC plats comply with section 515B.2-110(c), 67.36 and in all condominiums and cooperatives created under this 68.1 chapter, a unit identifier shall contain no more than six 68.2 characters, only one of which may be a letter. 68.3 (c) A description which conforms to the requirements of 68.4 this section shall be deemed to include all rights, obligations, 68.5 and interests appurtenant to the unit which were created by the 68.6 declaration or bylaws, or by this chapter, whether or not those 68.7 rights, obligations, or interests are expressly described. 68.8 (d) If the CIC plat for a planned community complies with 68.9 section 515B.2-110(c) a description of the common elements is 68.10 legally sufficient if it sets forth (i) the words "common 68.11 elements," (ii) the number assigned to the common interest 68.12 community by the recording officer, and (iii) the county in 68.13 which the common elements are located. The common elements may 68.14 consist of separate parcels of real estate, in which case each 68.15 parcel shall be separately identified on the CIC plat and in any 68.16 recorded instrument referencing a separate parcel of the common 68.17 elements. 68.18 Sec. 6. Minnesota Statutes 1998, section 515B.2-105, is 68.19 amended to read: 68.20 515B.2-105 [DECLARATION CONTENTS; ALL COMMON INTEREST 68.21 COMMUNITIES.] 68.22 (a) The declaration shall contain: 68.23 (1) the number of the common interest community, whether 68.24 the common interest community is a condominium, planned 68.25 community or cooperative, and the name of the common interest 68.26 community, which shall appear at the top of the first page of 68.27 the declaration in the following format: 68.28 Common Interest Community No. .... 68.29 (Type of Common Interest Community) 68.30 68.31 (Name of Common Interest Community) 68.33 (DECLARATION) 68.34 (2) a statement as to whether the common interest community 68.35 is or is not subject to a master association; 68.36 (3) the name of the association, a statement that the 69.1 association has been incorporated and a reference to the statute 69.2 under which it was incorporated; 69.3 (4) a legally sufficient description of the real estate 69.4 included in the common interest community,including the name of69.5the countya statement identifying any appurtenant easement 69.6 necessary for access to a public street or highway, and a 69.7 general reference to any other appurtenant easements; 69.8 (5) a description of the boundaries of each unit created by 69.9 the declaration and the unit's unit identifier; 69.10 (6) in a planned community containing common elements, a 69.11 legally sufficient description of the common elements; 69.12 (7) in a cooperative, a statement as to whether the unit 69.13 owners' interests in all units and their allocated interests are 69.14 real estate or personal property; 69.15 (8) an allocation to each unit of the allocated interests 69.16 in the manner described in section 515B.2-108; 69.17 (9) a statement of (i) the total number of units and (ii) 69.18 which units will be restricted to residential use and which 69.19 units will be restricted to nonresidential use; 69.20 (10) a statement of the maximum number of units which may 69.21 be created by the subdivision or conversion of units owned by 69.22 the declarant pursuant to section 515B.2-112; 69.23 (11) any material restrictions on use, occupancy, or 69.24 alienation of the units, or on the sale price of a unit or on 69.25 the amount that may be received by an owner on sale, 69.26 condemnation or casualty loss to the unit or to the common 69.27 interest community, or on termination of the common interest 69.28 community; provided, that these requirements shall not affect 69.29 the power of the association to adopt, amend or revoke rules and 69.30 regulations pursuant to section 515B.3-102; 69.31 (12) a statement as to whether time shares are permitted; 69.32 and 69.33 (13) all matters required by sections 515B.1-103(31), 69.34 Special Declarant Rights; 515B.2-107, Leaseholds; 515B.2-109, 69.35 Common Elements and Limited Common Elements; 515B.2-110, Common 69.36 Interest Community Plat; 515B.3-115, Assessments for Common 70.1 Expenses; and 515B.2-121, Master Associations. 70.2 (b) The declaration may contain any other matters the 70.3 declarant considers appropriate. 70.4 Sec. 7. Minnesota Statutes 1998, section 515B.2-108, is 70.5 amended to read: 70.6 515B.2-108 [ALLOCATION OF INTERESTS.] 70.7 (a) The declaration shall allocate to each unit: 70.8 (1) in a condominium, a fraction or percentage of undivided 70.9 interests in the common elements and in the common expenses of 70.10 the association and a portion of the votes in the association; 70.11 (2) in a cooperative, an ownership interest in the 70.12 association, a fraction or percentage of the common expenses of 70.13 the association and a portion of the votes in the association; 70.14 and 70.15 (3) in a planned community, a fraction or percentage of the 70.16 common expenses of the association and a portion of the votes in 70.17 the association. 70.18 (b) The declaration shall state the formulas used to 70.19 establish allocations of interests. If the fractions or 70.20 percentages are all equal the declaration may so state in lieu 70.21 of stating the fractions or percentages. If equality is 70.22 designated by the declaration as the formula for the allocation 70.23 of votes, votes do not attach to units that are auxiliary to 70.24 other units, such as garage units or storage units. The 70.25 allocationsmayshall not discriminate in favor of units owned 70.26 by the declarant or an affiliate of the declarant, except as 70.27 provided insectionsections 515B.2-121 and 515B.3-115. 70.28 (c) If units may be added to the common interest community, 70.29 the declaration shall state the formulas to be used to 70.30 reallocate the allocated interests among all units included in 70.31 the common interest community after the addition. 70.32 (d) The declaration may authorize special allocationswhich70.33provide: (i)that different allocations of votes and/or common70.34expenses shall be madeof unit owner votes among certain units 70.35 or classes of units on particular matters specified in the 70.36 declaration, or (ii)for class voting on specified issues71.1affecting the class, with respect to allocations within the71.2class or common expenses pertaining only to the class, or to71.3otherwise protect valid interests of the classof common 71.4 expenses among certain units or classes of units on particular 71.5 matters specified in the declaration. Special allocationsshall71.6 may only be used to address operational, physical or 71.7 administrative differences within the common interest 71.8 community. A declarant may not utilize special allocations for 71.9 the purpose of evading any limitation or obligation imposed on 71.10 declarants by this chapter nor may units constitute a class 71.11 because they are owned by a declarant. 71.12 (e) The sum of each category of allocated interests 71.13 allocated at any time to all the units must equal one if stated 71.14 as a fraction or 100 percent if stated as a percentage. In the 71.15 event of a discrepancy between an allocated interest and the 71.16 result derived from application of the pertinent formula, the 71.17 allocated interest prevails. 71.18 (f) In a condominium or planned community, the common 71.19 elements are not subject to partition, and any purported 71.20 conveyance, encumbrance, judicial sale, or other voluntary or 71.21 involuntary transfer of an undivided interest in the common 71.22 elements made without the unit to which that interest is 71.23 allocated is void. The granting of easements, licenses or 71.24 leases pursuant to section 515B.3-102 shall not constitute a 71.25 partition. 71.26 (g) In a cooperative, any purported conveyance, 71.27 encumbrance, judicial sale, or other voluntary or involuntary 71.28 transfer of an ownership interest in the association made 71.29 without the possessory interest in the unit to which that 71.30 interest is related is void. 71.31 Sec. 8. Minnesota Statutes 1998, section 515B.2-109, is 71.32 amended to read: 71.33 515B.2-109 [COMMON ELEMENTS AND LIMITED COMMON ELEMENTS.] 71.34 (a) Except as limited by the declaration or this chapter, 71.35 common elements other than limited common elements may be used 71.36 in common by all unit owners. Limited common elements are 72.1 designated for the exclusive use of the unit owners of the unit 72.2 or units to which the limited common elements are allocated, 72.3 subject to subsection (b) and the rights of the association as 72.4 set forth in the declaration, the bylaws or this chapter. 72.5 (b) Except for the limited common elements described in 72.6 section 515B.2-102, subsections (d) and (f), the declaration 72.7 shall specify to which unit or units each limited common element 72.8 is allocated. 72.9 (c) An allocation of limited common elements may be changed 72.10 by an amendment to the declaration executed by the unit owners 72.11 between or among whose units the reallocation is made and the 72.12 association. The amendment shall be approved by the board of 72.13 directors of the association as to form, and compliance with the 72.14 declaration and this chapter. The association shall establish 72.15 fair and reasonable procedures and time frames for the 72.16 submission and processing of the reallocations, and shall 72.17 maintain records thereof. If approved, the association shall 72.18 cause the amendment to be recorded promptly. The amendment 72.19 shall be effective when recorded. The association may require 72.20 the unit owners requesting the reallocation to pay all fees and 72.21 costs for reviewing, preparing and recording the amendment and 72.22 any amended CIC plat. 72.23 Sec. 9. Minnesota Statutes 1998, section 515B.2-110, is 72.24 amended to read: 72.25 515B.2-110 [COMMON INTEREST COMMUNITY PLAT (CIC PLAT).] 72.26 (a)TheA CIC plat is required for condominiums and planned 72.27 communities, and cooperatives in which the unit owners' 72.28 interests are characterized as real estate. The CIC plat is a 72.29 part of the declaration in condominiums, and in cooperatives in 72.30 which the unit owners' interests are characterized as real 72.31 estate, but need not be physically attached to the declaration. 72.32 (1) In a condominium, or a cooperative in which the unit 72.33 owners' interests are characterized as real estate, the CIC plat 72.34 shall comply with subsection (c). 72.35The CIC plat for(2) In a planned community, a CIC plat 72.36 which does not comply with subsection (c)mayshall consist of 73.1 all or part ofthea subdivision platsatisfying the73.2requirements of chapter 505, 508, or 508A, andor plats 73.3 complying with subsections (d)(1) and (d)(2). The CIC plat need 73.4 not contain the number of the common interest communityneed not73.5appear on the CIC plat. The CIC plat is a part of the73.6declaration in condominiums, and in cooperatives in which the73.7unit owners' interests are characterized as real estate, but73.8need not be physically attached to the declaration., and may be 73.9 recorded at any time at or before the time of recording of the 73.10 declaration. If the CIC plat for the planned community complies 73.11 with subsection (c), the number of the common interest community 73.12 shall be included and the CIC plat shall be recorded at the time 73.13 of recording of the declaration. 73.14 (3) Incooperativesa cooperative in which the unit owners' 73.15 interests are characterized as personal property, a CIC plat 73.16 shall not be required. In lieu of a CIC plat, the declaration 73.17 or any amendment to it creating, converting, or subdividing 73.18 units in a personal property cooperative shall include an 73.19 exhibit containing a scale drawing of each building, identifying 73.20 the building, and showing the perimeter walls of each unit 73.21 created or changed by the declaration or any amendment to it, 73.22 including the unit's unit identifier, and its location within 73.23 the building if the building contains more than one unit. 73.24 (b) The CIC plat for condominiums, for planned communities 73.25 using a plat complying with subsection (c), and for cooperatives 73.26 in which the unit owners' interests are characterized as real 73.27 estate, shall contain certifications by a registered 73.28 professional land surveyor and registered professional 73.29 architect, as to the parts of the CIC plat prepared by each, 73.30 that (i) the CIC plat accurately depicts all information 73.31 required by this section, and (ii) the work was undertaken by, 73.32 or reviewed and approved by, the certifying land surveyor or 73.33 architect. The portions of the CIC plat depicting the 73.34 dimensions of the portions of the common interest community 73.35 described in subsections (c)(8), (9), (10), and (12), may be 73.36 prepared by either a land surveyor or an architect. The other 74.1 portions of the CIC plat shall be prepared only by a land 74.2 surveyor. A certification of the CIC plat or an amendment to it 74.3 under this subsection by an architect is not required if all 74.4 parts of the CIC plat or amendment are prepared by a land 74.5 surveyor. Certification by the land surveyor or architect does 74.6 not constitute a guaranty or warranty of the nature, 74.7 suitability, or quality of construction of any improvements 74.8 located or to be located in the common interest community. 74.9 (c) A CIC plat for a condominium or cooperative shall show: 74.10 (1) the number of the common interest community, and the 74.11 boundaries, dimensions and a legally sufficient description of 74.12 the land included therein; 74.13 (2) the dimensions and location of all existing, material 74.14 structural improvements and roadways; 74.15 (3) the intended location and dimensions of any 74.16 contemplated common element improvements to be constructed 74.17 within the common interest community after the filing of the CIC 74.18 plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT"; 74.19 (4) the location and dimensions of any additional real 74.20 estate, labeled as such, and a legally sufficient description of 74.21 the additional real estate; 74.22 (5) the extent of any encroachments by or upon any portion 74.23 of the common interest community; 74.24 (6) the location and dimensions of all recorded easements 74.25 within the common interest community serving or burdening any 74.26 portion of the common interest community; 74.27 (7) the distance and direction between noncontiguous 74.28 parcels of real estate; 74.29 (8) the location and dimensions of limited common elements, 74.30for example, storage lockers, porches, balconies, decks and74.31patios, other thanexcept that with respect to limited common 74.32 elements described in section 515B.2-102, subsections (d) and 74.33 (f), only such material limited common elements as porches, 74.34 balconies, decks, patios, and garages shall be shown; 74.35 (9) the location and dimensions of the front, rear, and 74.36 side boundaries of each unit and that unit's unit identifier; 75.1 (10) the location and dimensions of the upper and lower 75.2 boundaries of each unit with reference to an established or 75.3 assumed datum and that unit's unit identifier; 75.4 (11) a legally sufficient description of any real estate in 75.5 which the unit owners will own only an estate for years, labeled 75.6 as "leasehold real estate"; 75.7 (12) any units which may be converted by the declarant to 75.8 create additional units or common elements identified separately. 75.9 (d) A CIC plat for a planned community either shall comply 75.10 with subsection (c) or it shall: 75.11 (1) satisfy the requirements of chapter 505, 508, or 508A, 75.12 as applicable; and 75.13 (2) satisfy the platting requirements of any governmental 75.14 authority within whose jurisdiction the planned community is 75.15 located, subject to the limitations set forth in section 75.16 515B.1-106. 75.17 (e) If a declarant adds additional real estate, the 75.18 declarant shall record a supplemental CIC plat or plats for the 75.19 real estate being added, conforming to the requirements of this 75.20 section which apply to the type of common interest community in 75.21 question. If less than all additional real estate is being 75.22 added, the supplemental CIC plat for a condominium, a planned 75.23 community whose CIC plat complies with subsection (c), or a 75.24 cooperative in which the unit owners' interests are 75.25 characterized as real estate, shall also show the location and 75.26 dimensions of the remaining portion. 75.27 (f) If a declarant subdivides or converts any unit into two 75.28 or more units, common elements or limited common elements, the 75.29 declarant shall record an amendment to the CIC plat showing the 75.30 location and dimensions of any new units, common elements and 75.31 limited common elements thus created. 75.32 Sec. 10. Minnesota Statutes 1998, section 515B.2-113, is 75.33 amended to read: 75.34 515B.2-113 [ALTERATIONS OF UNITS.] 75.35Subject to the provisions of the declaration and applicable75.36law:76.1 (a) Subject to the provisions of the declaration and 76.2 applicable law, a unit owner may, at the unit owner's expense, 76.3 make any improvements or alterations to the unit, provided: (i) 76.4 that they do not impair the structural integrity or mechanical 76.5 systems, affect the common elements, or impair the support of 76.6 any portion of the common interest communityprovided, (i); (ii) 76.7 that prior arrangements are made with the association to ensure 76.8 that other unit owners are not disturbed, (ii); (iii) that the 76.9 common elements are not damaged,; and(iii)(iv) that the common 76.10 elements and other units are protected against mechanics' liens. 76.11 (b) Subject to the provisions of applicable law, a unit 76.12 owner of a unit in residential use may, at the unit owner's 76.13 expense, make improvements or alterations to the unit as 76.14 necessary for the full enjoyment of the unit by any person 76.15 residing in the unit who has a handicap or disability, as 76.16 provided in the Fair Housing Amendments Act, United States Code, 76.17 title 42, section 3601, et seq., and the Minnesota Human Rights 76.18 Act, chapter 363, and any amendments to those acts. 76.19 (c) The declaration, bylaws, rules, and regulations, or 76.20 agreements with the association may not prohibit the 76.21 improvements or alterations referred to in subsection (b), but 76.22 may reasonably regulate the type, style, and quality of the 76.23 improvements or alterations, as they relate to health, safety, 76.24 and architectural standards. In addition, improvements or 76.25 alterations made pursuant to subsection (b) must satisfy the 76.26 requirements of subsection (a)(i), (ii), (iii), and (iv). 76.27 (d) Notwithstanding any contrary provision of section 76.28 515B.1-102, subsection (b) applies to all common interest 76.29 communities subject to chapter 515, 515A, or this chapter. The 76.30 unit owner's rights under this section may not be waived. 76.31 (e) Subsection (b) does not apply to restrictions on 76.32 improvements or alterations imposed by statute, rule, or 76.33 ordinance. 76.34 (f) Subject to the provisions of the declaration and 76.35 applicable law, a unit owner may, at the unit owner's expense, 76.36 after acquiring title to an adjoining unit or an adjoining part 77.1 of an adjoining unit, with the prior written approval of the 77.2 association and first mortgagees of the affected units, remove 77.3 or alter any intervening partition or create apertures therein, 77.4 even if the partition is part of the common elements, if those 77.5 acts do not impair the structural integrity or mechanical 77.6 systems or lessen the support of any portion of the common 77.7 interest community. The adjoining unit owners shall have the 77.8 exclusive license to use the space occupied by the removed 77.9 partition, but the use shall not create an easement or vested 77.10 right. Removal of partitions or creation of apertures under 77.11 this paragraph is not an alteration of boundaries. The 77.12 association may require that the owner or owners of units 77.13 affected replace or restore any removed partition, that the unit 77.14 owner comply with subsection (a)(i), (ii) and (iii), and that 77.15 the unit owner pay all fees and costs incurred by the 77.16 association in connection with the alteration. 77.17 Sec. 11. Minnesota Statutes 1998, section 515B.2-118, is 77.18 amended to read: 77.19 515B.2-118 [AMENDMENT OF DECLARATION.] 77.20 (a)Except in cases of amendments that may be executed by a77.21declarant under section 515B.2-111 or 515B.2-112, or by the77.22association and/or certain unit owners under section 515B.2-107,77.23515B.2-109, 515B.2-112, 515B.2-113, 515B.2-114, or 515B.2-119,77.24and except as limited by subsection (d), the declaration,77.25including any CIC plat, may be amended only by vote or written77.26agreement of unit owners of units to which at least 67 percent77.27of the votes in the association are allocated, or any greater or77.28other requirement the declaration specifies. The declaration77.29may specify a smaller percentage only if all of the units are77.30restricted to nonresidential use.The declaration, including any 77.31 CIC plat, may be amended only by vote or written agreement of 77.32 unit owners of units to which at least 67 percent of the votes 77.33 in the association are allocated, or any greater or other 77.34 requirement the declaration specifies, subject to the following 77.35 qualifications: 77.36 (1) A declarant may execute amendments under section 78.1 515B.2-111 or 515B.2-112. 78.2 (2) The association and certain unit owners, as applicable, 78.3 may execute amendments under section 515B.2-107, 515B.2-109, 78.4 515B.2-112, 515B.2-113, 515B.2-114, 515B.2-119, 515B.2-122, 78.5 515B.2-123, or 515B.2-124. 78.6 (3) The unanimous written consent of the unit owners is 78.7 required for any amendment which (i) creates or increases 78.8 special declarant rights, (ii) increases the number of units, 78.9 (iii) changes the boundaries of any unit, (iv) changes the 78.10 allocated interests of a unit, (v) changes common elements to 78.11 limited common elements, (vi) changes the authorized use of a 78.12 unit from residential to nonresidential, or conversely, or (vii) 78.13 changes the characterization of the unit owner's interest in a 78.14 cooperative from real estate to personal property, or 78.15 conversely; unless the amendment is expressly permitted or 78.16 required by other provisions of this chapter. 78.17 (4) The declaration may specify less than 67 percent for 78.18 approval of an amendment, but only if all of the units are 78.19 restricted to nonresidential use. 78.20 (b) No action to challenge the validity of an amendment 78.21 adopted by the association pursuant to this section may be 78.22 brought more than two years after the amendment is recorded. 78.23 (c) Every amendment to the declaration shall be recorded in 78.24 every county in which any portion of the common interest 78.25 community is located and is effective only when recorded. If an 78.26 amendment (i) changes the number of units, (ii) changes the 78.27 boundary of a unit, (iii) changes common elements to limited 78.28 common elements, or conversely, or (iv) makes any other change 78.29 that affects the CIC plat, then an amendment to the CIC plat 78.30 reflecting the change shall be recorded. 78.31(d) Except as expressly permitted or required by other78.32provisions of this chapter, no amendment may (i) create or78.33increase special declarant rights, (ii) increase the number of78.34units, (iii) change the boundaries of any unit, (iv) change the78.35allocated interests of a unit, (v) change common elements to78.36limited common elements, (vi) change the authorized use of a79.1unit from residential to nonresidential, or conversely, or (vii)79.2change the characterization of the unit owners' interests in a79.3cooperative from real estate to personal property, or79.4conversely, in the absence of unanimous written consent of the79.5unit owners.79.6 Sec. 12. Minnesota Statutes 1998, section 515B.2-119, is 79.7 amended to read: 79.8 515B.2-119 [TERMINATION OF COMMON INTEREST COMMUNITY.] 79.9 (a) Except as otherwise provided in this chapter, a common 79.10 interest community may be terminated only by agreement of unit 79.11 owners of units to which at least 80 percent of the votes in the 79.12 association are allocated, and 80 percent of the first 79.13 mortgagees of units (each mortgagee having one vote per unit 79.14 financed), or any larger percentage the declaration specifies. 79.15 The declaration may specify a smaller percentage only if all of 79.16 the units are restricted to nonresidential use. 79.17 (b) An agreement to terminate shall be evidenced by a 79.18 written agreement, executed in the same manner as a deed by the 79.19 number of unit owners and first mortgagees of units required by 79.20 subsection (a). The agreement shall specify a date after which 79.21 the agreement shall be void unless recorded before that date. 79.22 The agreement shall also specify a date by which the termination 79.23 of the common interest community and the winding up of its 79.24 affairs must be accomplished. A certificate of termination 79.25 executed by the association evidencing the termination shall be 79.26 recorded on or before the termination date, or the agreement to 79.27 terminate shall be revoked. The agreement to terminate, or a 79.28 memorandum thereof, and the certificate of termination shall be 79.29 recorded in every county in which a portion of the common 79.30 interest community is situated and is effective only upon 79.31 recording. 79.32 (c) In the case of a condominium or planned community 79.33 containing only units having upper and lower boundaries, a 79.34 termination agreement may provide that all of the common 79.35 elements and units of the common interest community must be sold 79.36 following termination. If, pursuant to the agreement, any real 80.1 estate in the common interest community is to be sold following 80.2 termination, the termination agreement shall set forth the 80.3 minimum terms of sale acceptable to the association. 80.4 (d) In the case of a condominium or planned community 80.5 containing any units not having upper and lower boundaries, a 80.6 termination agreement may provide for sale of the common 80.7 elements, but it may not require that the units be sold 80.8 following termination, unless the original declaration provided 80.9 otherwise or all unit owners whose units are to be sold consent 80.10 to the sale. 80.11 (e) The association, on behalf of the unit owners, shall 80.12 have authority to contract for the sale of real estate in a 80.13 common interest community pursuant to this section, subject to 80.14 the required approval. The agreement to terminate shall be 80.15 deemed to grant to the association a power of attorney coupled 80.16 with an interest to effect the conveyance of the real estate on 80.17 behalf of the holders of all interests in the units, including 80.18 without limitation the power to execute all instruments of 80.19 conveyance and related instruments. Until the sale has been 80.20 completed, all instruments in connection with the sale have been 80.21 executed and the sale proceeds distributed, the association 80.22 shall continue in existence with all powers it had before 80.23 termination. 80.24 (1) The instrument conveying or creating the interest in 80.25 the common interest community shall include as exhibits (i) an 80.26 affidavit of the secretary of the association certifying that 80.27 the approval required by this section has been obtained and (ii) 80.28 a schedule of the names of all unit owners in the common 80.29 interest community as of the date of the approval. 80.30 (2) Proceeds of the sale shall be distributed to unit 80.31 owners and secured parties as their interests may appear, in 80.32 accordance with subsections (h), (i), (j), and (k). 80.33 (3) Unless otherwise specified in the agreement of 80.34 termination, until the association has conveyed title to the 80.35 real estate, each unit owner and the unit owner's successors in 80.36 interest have an exclusive right to occupancy of the portion of 81.1 the real estate that formerly constituted the unit. During the 81.2 period of that occupancy, each unit owner and the unit owner's 81.3 successors in interest remain liable for all assessments and 81.4 other obligations imposed on unit owners by this chapter, the 81.5 declaration or the bylaws. 81.6 (f) The legal description of the real estate constituting 81.7 the common interest community shall, upon the date of recording 81.8 of the certificate of termination referred to in subsection (b), 81.9 be as follows: 81.10 (1) In a planned community, the lot and block description 81.11 contained in the CIC plat, and any amendments thereto, subject 81.12 to any subsequent conveyance or taking of a fee interest in any 81.13 part of the property. 81.14 (2) In a condominium or cooperative, the underlying legal 81.15 description of the real estate as set forth in the declaration 81.16 creating the common interest community, and any amendments 81.17 thereto, subject to any subsequent conveyance or taking of a fee 81.18 interest in any part of the property. 81.19 (3) The legal description referred to in this subsection 81.20 shall apply upon the recording of the certificate of 81.21 termination. The recording officer for each county in which the 81.22 common interest community is located shall index the property 81.23 located in that county in its records under the legal 81.24 description required by this subsection from and after the date 81.25 of recording of the certificate of termination. In the case of 81.26 registered property, the registrar of titles shall cancel the 81.27 existing certificates of title with respect to the property and 81.28 issue one or more certificates of title for the property 81.29 utilizing the legal description required by this subsection. 81.30 (g) In a condominium or planned community, if the agreement 81.31 to terminate provides that the real estate constituting the 81.32 common interest community is not to be sold following 81.33 termination, title to the common elements and, in a common 81.34 interest community containing only units having upper and lower 81.35 boundaries described in the declaration, title to all the real 81.36 estate in the common interest community, vests in the unit 82.1 owners upon termination as tenants in common in proportion to 82.2 their respective interest as provided in subsection (k), and 82.3 liens on the units shift accordingly. While the tenancy in 82.4 common exists, each unit owner and the unit owner's successors 82.5 in interest have an exclusive right to occupancy of the portion 82.6 of the real estate that formerly constituted the unit. 82.7 (h) The proceeds of any sale of real estate pursuant to 82.8 subsection (e), together with the assets of the association, 82.9 shall be held by the association as trustee for unit owners, 82.10 secured parties and other holders of liens on the units as their 82.11 interests may appear. Before distributing any proceeds, the 82.12 association shall have authority to deduct from the proceeds of 82.13 sale due with respect to the unit (i) unpaid assessments levied 82.14 by the association with respect to the unit, (ii) unpaid real 82.15 estate taxes or special assessments due with respect to the 82.16 unit, and (iii) the share of expenses of sale and winding up of 82.17 the association's affairs with respect to the unit. 82.18 (i) Following termination of a condominium or planned 82.19 community, creditors of the association holding liens on the 82.20 units perfected before termination may enforce those liens in 82.21 the same manner as any lien holder, in order of priority based 82.22 upon their times of perfection. All other creditors of the 82.23 association are to be treated as if they had perfected liens on 82.24 the units immediately before termination. 82.25 (j) In a cooperative, the declaration may provide that all 82.26 creditors of the association have priority over any interests of 82.27 unit owners and creditors of unit owners. In that event, 82.28 following termination, creditors of the association holding 82.29 liens on the cooperative which were perfected before termination 82.30 may enforce their liens in the same manner as any lien holder, 82.31 in order of priority based upon their times of perfection. All 82.32 other creditors of the association shall be treated as if they 82.33 had perfected a lien against the cooperative immediately before 82.34 termination. Unless the declaration provides that all creditors 82.35 of the association have that priority: 82.36 (1) the lien of each creditor of the association which was 83.1 perfected against the association before termination becomes, 83.2 upon termination, a lien against each unit owner's interest in 83.3 the unit as of the date the lien was perfected; 83.4 (2) any other creditor of the association is to be treated 83.5 upon termination as if the creditor had perfected a lien against 83.6 each unit owner's interest immediately before termination; 83.7 (3) the amount of the lien of an association's creditor 83.8 described in paragraphs (1) and (2) against each of the unit 83.9 owners' interest shall be proportionate to the ratio which each 83.10 unit's common expense liability bears to the common expense 83.11 liability of all of the units; 83.12 (4) the lien of each creditor of each unit owner which was 83.13 perfected before termination continues as a lien against that 83.14 unit owner's interest in the unit as of the date the lien was 83.15 perfected; and 83.16 (5) the assets of the association shall be distributed to 83.17 all unit owners and all lien holders as their interests may 83.18 appear in the order described in this section. Creditors of the 83.19 association are not entitled to payment from any unit owner in 83.20 excess of the amount of the creditor's lien against that unit 83.21 owner's interest. 83.22 (k) The respective interest of unit owners referred to in 83.23 subsections (e), (f), (g), (h) and (i) are as follows: 83.24 (1) Except as provided in paragraph (2), the respective 83.25 interests of unit owners are the fair market values of their 83.26 units, allocated interests, and any limited common elements 83.27 immediately before the termination, as determined by one or more 83.28 independent appraisers selected by the association. The 83.29 decision of the independent appraisers must be distributed to 83.30 the unit owners and becomes final unless disapproved within 30 83.31 days after distribution by unit owners of units to which 25 83.32 percent of the votes in the association are allocated. The 83.33 proportion of any unit's interest to that of all units is 83.34 determined by dividing the fair market value of that unit by the 83.35 total fair market values of all the units. 83.36 (2) If any unit or any limited common element is destroyed 84.1 to the extent that an appraisal of the fair market value thereof 84.2 before destruction cannot be made, the interests of all unit 84.3 owners are: (i) in a condominium, their respective common 84.4 element interests immediately before the termination, (ii) in a 84.5 cooperative, their respective ownership interests immediately 84.6 before the termination, and (iii) in a planned community, their 84.7 respective common expense liabilities immediately before the 84.8 termination. 84.9 (1) In a condominium or planned community, except as 84.10 provided in subsection (m), foreclosure or enforcement of a lien 84.11 or encumbrance against the entire common interest community does 84.12 not terminate, of itself, the common interest community, and 84.13 foreclosure or enforcement of a lien or encumbrance against a 84.14 portion of the common interest community does not withdraw that 84.15 portion from the common interest community. 84.16 (m) In a condominium or planned community, if a lien or 84.17 encumbrance against a portion of the real estate comprising the 84.18 common interest community has priority over the declaration and 84.19 the lien or encumbrance has not been partially released, the 84.20 parties foreclosing the lien or encumbrance, upon foreclosure, 84.21 may record an instrument excluding the real estate subject to 84.22 that lien or encumbrance from the common interest community. 84.23 (n) Following the termination of a common interest 84.24 community in accordance with this section, the board of 84.25 directors of the association shall cause the association to be 84.26 dissolved in accordance with law. 84.27 Sec. 13. Minnesota Statutes 1998, section 515B.2-121, is 84.28 amended to read: 84.29 515B.2-121 [MASTER ASSOCIATIONS.] 84.30 (a) A master association formed after June 1, 1994, shall 84.31 be organized as a Minnesota profit, nonprofit,or cooperativeor84.32municipalcorporation. A master association shall be 84.33 incorporated prior to the delegation to it of any powers under 84.34 this chapter. 84.35 (b) The members of the master association shall be any 84.36 combination of (i) unit owners of one or more common interest 85.1 communities, (ii) one or more associations, (iii) one or more 85.2 master associations, or (iv) owners or property owners 85.3 associations not subject to this chapter in combination with any 85.4 other category of member. An association or its members may be 85.5 members of an entity created before June 1, 1994, which performs 85.6 functions similar to those performed by a master association 85.7 regardless of whether the entity is subject to this chapter. 85.8 (c)If so provided in the declaration, any of the powers85.9described in section 515B.3-102 may be delegated to and85.10exercised by a master association, and the master association85.11shall have all powers referred to elsewhere in this chapter85.12which may be necessary or incidental to the exercise of the85.13delegated powers. However, a master association may exercise85.14the powers set forth in section 515B.3-102(a)(2) only to the85.15extent expressly permitted in the declarations of the common85.16interest communities, and the declarations or bylaws of other85.17master associations, which are intended to be subject to those85.18powers and which are members of the master association, or whose85.19members or associations are members of the master85.20association.A master association shall be governed by a board 85.21 of directors. The directors of a master association shall be 85.22 elected or, if a nonprofit corporation, elected or appointed, in 85.23 a manner consistent with the requirements of the statute under 85.24 which the master association is formed and of the master 85.25 association's articles of incorporation and bylaws, and subject 85.26 to the following requirements: 85.27 (1) Except as set forth in subsections (2) and (3), the 85.28 members of the master association shall elect the board of 85.29 directors. A majority of the directors shall be members of the 85.30 master association or members of a member of the master 85.31 association, and shall be persons other than a declarant or 85.32 affiliate of a declarant. If the member is not a natural 85.33 person, it may designate a natural person to act on its behalf. 85.34 (2) The articles of incorporation or bylaws of the master 85.35 association may authorize a person other than a member of the 85.36 master association or a unit owner, including a declarant, to 86.1 appoint or elect one director. 86.2 (3) A master association's articles of incorporation may 86.3 suspend the members' right to elect or, in the case of a 86.4 nonprofit corporation, elect or appoint, the master 86.5 association's board of directors for a specified time period. 86.6 During this period, the person or persons who execute the master 86.7 declaration under subsection (f)(1), or their successors or 86.8 assigns, may appoint the directors. The period during which the 86.9 person or persons may appoint the directors begins when the 86.10 master declaration is recorded and terminates upon the earliest 86.11 of: 86.12 (i) the voluntary surrender of the right to appoint 86.13 directors; 86.14 (ii) the date ten years after the date the master 86.15 declaration is recorded; 86.16 (iii) the date, if any, in the articles of incorporation; 86.17 or 86.18 (iv) the date when at least 75 percent of the associations 86.19 that are members of the master association or whose members are 86.20 members of the master association are controlled by their 86.21 members. An association's members control the association when 86.22 they have the right to elect or appoint a majority of the 86.23 association's voting directors. 86.24 (4) The term of any director appointed under subsection (3) 86.25 expires 60 days after the right to appoint directors 86.26 terminates. The master association's board of directors shall 86.27 call an annual or special meeting of the master association's 86.28 members to elect or appoint successor directors within the 86.29 60-day period. 86.30 (5) The system for the election of directors shall be fair 86.31 and equitable, and shall take into account the number of members 86.32 of each association any of whose powers are delegated to the 86.33 master association, the needs of the members of the master 86.34 association, the allocation of liability for master association 86.35 common expenses, and the types of common interest communities 86.36 and other real estate subject to the master association. 87.1 (d)The powers may be delegated to a master association by87.2the declaration, or by the board pursuant to authority granted87.3in the declaration. If any delegation of powers may be made at87.4the discretion of the board, the board of the master association87.5shall have authority to determine whether the delegation of87.6powers is authorized by, and consistent with the intent of, the87.7declaration of the common interest community whose association's87.8powers are being delegated and the organizational documents of87.9the master association, and shall have authority to refuse any87.10improper delegation of powers.The articles of incorporation or 87.11 bylaws of the master association may authorize special classes 87.12 of directors and allocations of director voting rights, as 87.13 follows: (i) classes of directors that are elected by different 87.14 classes of members, to address operational, physical, or 87.15 administrative differences within the master association, or 87.16 (ii) class voting by the classes of directors on specific issues 87.17 affecting only a certain class or classes of members or units, 87.18 or to otherwise protect the legitimate interests of such class 87.19 or classes. No person may utilize such special classes or 87.20 allocations for the purpose of evading any limitation imposed on 87.21 declarants by this chapter. 87.22 (e)If a board properly delegates powers to a master87.23association, the members of the board have no liability for the87.24acts or omissions of the master association with respect to the87.25delegated powers following delegation, except those arising out87.26of their actions as officers or directors of the master87.27association.The officers of a master association shall be 87.28 elected, appointed, or designated in a manner consistent with 87.29 the statute under which the master association is formed and 87.30 consistent with the master association articles of incorporation 87.31 and bylaws. 87.32 (f)Sections 515B.3-103, 515B.3-108, 515B.3-109,87.33515B.3-110, and 515B.3-112 shall apply in the conduct of the87.34affairs of a master association; provided, that the rights of87.35voting, notice and other rights enumerated in those sections87.36apply only to persons who elect the board of a master88.1association, whether or not those persons are otherwise unit88.2owners within the meaning of this chapter.The creation and 88.3 authority of a master association shall be governed by the 88.4 following requirements: 88.5 (1) A master declaration shall be recorded in connection 88.6 with the creation of a master association. The master 88.7 declaration shall be executed by the owners of the real estate 88.8 subjected to the master declaration. The master declaration 88.9 shall contain, at a minimum: 88.10 (i) the name of the master association; 88.11 (ii) a legally sufficient description of the real estate 88.12 which is subject to the master declaration, and a legally 88.13 sufficient description of any other real estate which may be 88.14 subjected to the master declaration pursuant to subsection (g); 88.15 (iii) a statement as to whether the real estate subject to, 88.16 and which may be subjected to, the master declaration 88.17 collectively is or collectively will be a separate common 88.18 interest community; 88.19 (iv) a description of the members of the master 88.20 association; 88.21 (v) a description of the powers to be exercised by the 88.22 master association on behalf of its members, and on behalf of 88.23 the members of its members in the case of members that are 88.24 common interest communities. The provisions of the master 88.25 declaration with respect to the grant and exercise of powers for 88.26 common interest communities subject to the master association 88.27 shall be consistent with the declarations of the common interest 88.28 communities that delegate powers to the master association; 88.29 (vi) a description of the formula governing the allocation 88.30 of assessments and member voting rights, including any special 88.31 classes or allocations referred to in subsection (d); and 88.32 (vii) the requirements for amendment of the master 88.33 declaration, other than an amendment under subsection (g). 88.34 (2) The declaration of a common interest community subject 88.35 to the master association shall contain provisions delegating, 88.36 or authorizing the delegation of, powers to the master 89.1 association in accordance with subsection (f)(3). The 89.2 provisions of the declarations relating to the delegation shall 89.3 be consistent with the provisions of the master declaration 89.4 granting or reserving those powers to the master association. 89.5 (3) The declaration may: 89.6 (i) delegate any of the powers described in section 89.7 515B.3-102 to a master association. A delegation of the powers 89.8 described in section 515B.3-102(a)(2) is effective only if 89.9 expressly stated in the declaration; and 89.10 (ii) authorize the board to delegate any of the powers 89.11 described in section 515B.3-102, except for the powers described 89.12 in section 515B.3-102(a)(2), to a master association. 89.13 (4) With respect to any other property subject to a master 89.14 association, there need not be an instrument other than the 89.15 master declaration recorded against the property to empower the 89.16 master association to exercise powers with respect to the 89.17 property. 89.18 (5) If a declaration or other recorded instrument 89.19 authorizes a board or owner to delegate powers to a master 89.20 association, the master association board may refuse any 89.21 delegation of powers that does not comply with (i) this chapter, 89.22 (ii) the declaration or other recorded instrument, or (iii) the 89.23 organizational documents of the master association. 89.24 (6) The failure of a declaration, a board or an owner of 89.25 property subject to a master association to properly delegate 89.26 some or all of the powers to the master association does not 89.27 affect the authority of the master association to exercise those 89.28 and other powers with respect to other common interest 89.29 communities or owners of properties that are subject to the 89.30 master association. 89.31(g) The bylaws of the master association may provide for a89.32control period during which the members of the master89.33association board may be appointed by a person, identified in89.34the master association's bylaws, other than the members of the89.35master association. The control period may extend from the date89.36of filing of the articles of incorporation of the master90.1association, and shall terminate upon the earlier of (i)90.2surrender of control by the person authorized to appoint the90.3members of the master association board or (ii) 60 days after90.4conveyance of 75 percent of the units contained in all common90.5interest communities subject to the master association to unit90.6owners other than a declarant or an affiliate of a declarant of90.7those common interest communities, subject to the following:90.8(1) Not later than 60 days after conveyance of 50 percent90.9of the units that may be created to unit owners other than a90.10declarant or an affiliate of a declarant, a meeting of the90.11members of the master association shall be held at which not90.12less than 33-1/3 percent of the members of the master90.13association board shall be elected by persons entitled to elect90.14said board other than a declarant or an affiliate of a declarant.90.15(2) Not later than the termination of the control period,90.16those members of the master association entitled to elect the90.17master association board shall elect a master association board90.18of at least three members. Thereafter, a majority of the90.19directors of the master association board shall be members of90.20the master association other than a declarant or an affiliate of90.21a declarant. The remaining directors need not be members of the90.22master association, unless required by the articles of90.23incorporation or bylaws of the master association. The master90.24association board shall elect the officers of the master90.25association. The directors and officers shall take office upon90.26election.90.27(3) In determining whether the control period has90.28terminated under subsection (h), or whether members other than a90.29declarant or an affiliate of a declarant are entitled to elect90.30members of the master board, the percentage of units which has90.31been conveyed shall be calculated based upon the assumption that90.32all units which a declarant or declarants have built or reserved90.33the right to build in all common interest communities which may90.34be subject to the master association are subjected to the master90.35association.90.36(h) The declaration or bylaws of the master association,91.1and the declaration of each common interest community whose91.2association's powers are delegated to the association, shall91.3provide that after the expiration of the control period referred91.4to in subsection (g) the board of the master association shall91.5be elected by the members of the master association. The system91.6of election shall be fair and equitable, and shall take into91.7account the number of members of each association any of whose91.8powers are delegated to the master association, the needs of the91.9members of the master association, the allocation of liability91.10for master association common expenses and the types of common91.11interest communities and other real estate subject to the master91.12association.91.13(i) Master association common expenses shall be allocated91.14among the members of the master association in a fair and91.15equitable manner. Where applicable and appropriate, the91.16formulas and principles described in section 515B.2-108 (b),91.17(c), (d) and (e) should be utilized in making the allocations.91.18The formulas and procedures governing the allocation and91.19assessment of master association common expenses shall be set91.20forth in the declaration or bylaws of the master association,91.21and shall be consistent with the declarations of the common91.22interest communities which may be subject to the master91.23association.91.24(j) If a master association owns or controls real estate91.25which is subject to use rights by members of the master91.26association, an instrument describing the use rights, and the91.27benefited land and parties, shall be recorded against the real91.28estate.91.29 (g) The master declaration may authorize other real estate 91.30 to be subjected to the master declaration. The other real 91.31 estate shall be subjected to the master declaration by an 91.32 amendment executed by the owner of the other real estate and 91.33 approved in writing by the person who executed the master 91.34 declaration, if other than the owner of the other real estate. 91.35 (h) Sections 515B.3-103, 515B.3-108, 515B.3-109, 91.36 515B.3-110, and 515B.3-112 shall apply in the conduct of the 92.1 affairs of a master association. But the rights of voting, 92.2 notice, and other rights enumerated in those sections apply only 92.3 to persons who elect or appoint the board of a master 92.4 association, whether or not those persons are otherwise unit 92.5 owners within the meaning of this chapter. 92.6 (i) If so provided in the master declaration, a master 92.7 association may levy assessments for common expenses of the 92.8 master association against the property subject to the master 92.9 declaration, and have and foreclose liens securing the 92.10 assessments. The liens shall have the same priority against 92.11 secured parties, shall include the same fees and charges, and 92.12 may be foreclosed in the same manner, as assessment liens under 92.13 section 515B.3-116. The master association's lien shall have 92.14 priority as against the lien of an association or property 92.15 owner's association subject to the master association, 92.16 regardless of when the lien arose or was perfected. 92.17 (1) Master association common expenses shall be allocated 92.18 among the members of the master association in a fair and 92.19 equitable manner. If the members are associations or property 92.20 owners' associations, then the master assessments may be 92.21 allocated among and levied directly against the units or other 92.22 parcels owned by the members of the association or property 92.23 owner's association. If so provided in the master declaration, 92.24 master assessments levied against a member association or 92.25 property owner's association are allocated among and levied 92.26 against the units or other parcels owned by the members of the 92.27 association or property owner's association. If applicable and 92.28 appropriate, the formulas and principles described in section 92.29 515B.2-108, subsections (b), (c), (d), and (e), shall be used in 92.30 making the allocations. The assessment formulas and procedures 92.31 described in the declarations of any common interest communities 92.32 or any instruments governing other real estate subject to the 92.33 master association shall not conflict with the formulas and 92.34 procedures described in the master declaration. 92.35 (2) The master declaration may exempt from liability any 92.36 person authorized by subsection (c)(3) to appoint the members of 93.1 the master association board for master association common 93.2 expenses, and exempt any unit owned by the person from a lien 93.3 for such common expenses, until a dwelling constituting or 93.4 located within the unit is substantially completed. Substantial 93.5 completion shall be evidenced by a certificate of occupancy in a 93.6 jurisdiction that issues that certificate. 93.7(k)(j) A master association shall not be used, directly or 93.8 indirectly, to avoid or nullify any warranties or other 93.9 obligations for which a declarant of a common interest community 93.10 subject to the master association is responsible, or to 93.11 otherwise avoid the requirements of this chapter. 93.12 Sec. 14. Minnesota Statutes 1998, section 515B.2-122, is 93.13 amended to read: 93.14 515B.2-122 [MERGER OR CONSOLIDATION OF COMMON INTEREST 93.15 COMMUNITIES.] 93.16 (a) Any two or more common interest communities of the same 93.17 form of ownership, by agreement of the unit owners as provided 93.18 in subsection (b), may be merged or consolidated into a single 93.19 common interest community. The resultant common interest 93.20 community shall be the legal successor, for all purposes, of all 93.21 of the preexisting common interest communities, and the 93.22 operations and activities of the preexisting common interest 93.23 communities are merged or consolidated into a single common 93.24 interest community that holds all powers, rights, obligations, 93.25 assets, and liabilities of the preexisting common interest 93.26 communities. 93.27 (b) An agreement of two or more common interest communities 93.28 to merge or consolidate pursuant to subsection (a) shall be 93.29 evidenced by an agreement executed by the president of the 93.30 association of each of the preexisting common interest 93.31 communities following approval by owners of units to which are 93.32 allocated the votes in each common interest community required 93.33 to terminate that common interest community. 93.34 (c) Every merger or consolidation agreement shall contain: 93.35 (1) the names of the resultant common interest community 93.36 and its association; 94.1 (2) the number of the resultant common interest community, 94.2 which shall be a new common interest community number assigned 94.3 to the resultant common interest community by the recording 94.4 officer; 94.5 (3) a requirement that the associations of the common 94.6 interest communities shall be merged pursuant to the applicable 94.7 statute; 94.8 (4) a reallocation of the allocated interests in the 94.9 preexisting common interest communities among the units of the 94.10 resultant common interest community by stating the reallocations 94.11 and the formulas upon which they are based; 94.12 (5) a statement that the common interest communities have 94.13 approved and will, within 90 days after the execution of the 94.14 merger agreement, record a declaration as provided in subsection 94.15 (d) or commence an appropriate proceeding to accomplish the 94.16 recording if necessary. 94.17 (d) A declaration, including a new or amended CIC plat if 94.18 necessary, complying with this chapter and governing the 94.19 resultant common interest community shall be recorded in every 94.20 county in which a portion of each preexisting common interest 94.21 community is located, and the merger or consolidation is not 94.22 effective until the declaration is recorded. In addition to 94.23 other matters required by this chapter, the declaration shall 94.24 contain: 94.25 (1) a reference to the names and numbers of the preexisting 94.26 common interest communities, and the names of their 94.27 associations; 94.28 (2) a statement that the preexisting common interest 94.29 communities and their associations have been merged or 94.30 consolidated pursuant to this chapter and the applicable 94.31 corporate statute, and 94.32 (3) a statement that the declaration supersedes the 94.33 declarations of the preexisting common interest communities and 94.34 governs the resultant common interest community. 94.35 (e) Upon approval as provided in subsection (b), the 94.36 association for the resultant common interest community may 95.1 execute the declaration, and a new or amended CIC plat if 95.2 necessary, on behalf of the unit owners of, and all other 95.3 persons holding an interest in, the units or other property that 95.4 is a part of the preexisting common interest communities, and to 95.5 do all other acts necessary to merge or consolidate the common 95.6 interest communities. 95.7 (f) The declaration and CIC plat for the resultant common 95.8 interest community may be recorded without the necessity of 95.9 paying the current or delinquent real estate taxes on any of the 95.10 units. 95.11 Sec. 15. [515B.2-124] [SEVERANCE OF COMMON INTEREST 95.12 COMMUNITY.] 95.13 (a) Unless the declaration provides otherwise, a part of a 95.14 common interest community containing one or more units may be 95.15 severed from the common interest community, subject to the 95.16 requirements of this section. Subject to any additional 95.17 requirements contained in the declaration, the severance shall 95.18 be approved in a written severance agreement satisfying the 95.19 requirements of this section, executed by: 95.20 (1) unit owners entitled to cast at least 67 percent of the 95.21 votes in the association, which approval shall include the 95.22 approval of unit owners entitled to cast a majority of the votes 95.23 allocated to units in the remaining common interest community 95.24 and the approval of unit owners entitled to cast a majority of 95.25 the votes allocated to units in the part of the common interest 95.26 community being severed; 95.27 (2) declarant until the earlier of five years after the 95.28 recording of the declaration or the time at which declarant no 95.29 longer owns an unsold unit; and 95.30 (3) in the case of a cooperative, all holders of mortgages 95.31 or contracts for deed on the entire real estate constituting the 95.32 cooperative. 95.33 (b) The declaration may specify a smaller percentage for 95.34 unit owner approval only if all of the units are restricted to 95.35 nonresidential use. 95.36 (c) The severance agreement shall specify a severance date 96.1 by which the severance of the common interest community shall be 96.2 accomplished, after which the severance agreement is void. The 96.3 severance agreement shall be deemed to grant to the association 96.4 a power of attorney coupled with an interest to effect the 96.5 severance of the common interest community on behalf of the unit 96.6 owners and the holders of all other interests in the units, 96.7 including without limit the power to execute the amendment to 96.8 the declaration, any instruments of conveyance, and all related 96.9 instruments. 96.10 (d) The severance agreement shall: 96.11 (1) Approve an amendment to the declaration complying with 96.12 this chapter, in substantially the same form to be recorded, 96.13 which, at a minimum, (i) legally describes the real estate 96.14 constituting the remaining common interest community and the 96.15 real estate being severed, (ii) restates the number of units in 96.16 the remaining common interest community, and (iii) reallocates 96.17 the interests of the unit owners in the remaining common 96.18 interest community among the remaining units in accordance with 96.19 the allocation formula set forth in the declaration, and (iv) 96.20 recites any easements to which the severed portion of the common 96.21 interest community remains subject. 96.22 (2) Approve an amendment to the articles of incorporation 96.23 and bylaws of the remaining common interest community, if 96.24 necessary. 96.25 (3) Authorize the association to execute and record the 96.26 amended declaration, articles of incorporation or bylaws on 96.27 behalf of the unit owners and all other persons holding an 96.28 interest in the remaining common interest community, and to take 96.29 other actions necessary to accomplish the severance of the 96.30 common interest community. 96.31 (4) Allocate the assets and liabilities of the association 96.32 between the association, and (i) a new association formed 96.33 pursuant to subsection (g), or (ii) the owners of the units 96.34 being severed, subject to a lien against their interest in the 96.35 severed real estate or their share in the assets of the 96.36 association in favor of any person that held a security interest 97.1 in their unit. 97.2 (5) If the units that are being severed from the common 97.3 interest community will not be included in a new common interest 97.4 community that is (i) formed simultaneously with the severance 97.5 of the common interest community, and (ii) includes all of the 97.6 units and substantially all of the common elements being 97.7 severed, then the agreement shall contain the written consent of 97.8 holders of first mortgages on all units that are being severed, 97.9 and shall describe in detail the proposed disposition of all 97.10 real estate to be severed and all assets of the association 97.11 allocated to the severed units, and the distribution of the 97.12 proceeds of the disposition, if any. 97.13 (e) The severance agreement or a memorandum of it shall be 97.14 recorded in every county in which a part of the common interest 97.15 community is located. The recording of the severance agreement 97.16 or memorandum of it shall, from the date of recording, 97.17 constitute notice to all persons subsequently acquiring an 97.18 interest in the common interest community that the common 97.19 interest community is being severed, and that those persons 97.20 acquire their interests subject to the terms and conditions 97.21 contained in the severance agreement and the amendment to the 97.22 declaration. 97.23 (f) The amendment to the declaration of the remaining 97.24 common interest community shall be recorded on or before the 97.25 severance date, or the severance agreement and the amendment to 97.26 the declaration is void as of the day after the severance date. 97.27 The recording of the amendment to the declaration shall complete 97.28 the severance of the common interest community and release the 97.29 severed part of the common interest community from the 97.30 declaration without further action by any person. 97.31 (g) If the unit owners whose units are being severed from 97.32 the common interest community intend to form a new common 97.33 interest community, then said unit owners shall unanimously 97.34 approve a declaration, articles of incorporation and bylaws to 97.35 govern the new common interest community no later than 60 days 97.36 before the effective date of the severance. The declaration 98.1 creating the new common interest community shall be recorded 98.2 simultaneously with the amendment to the declaration. No later 98.3 than 30 days before the effective date of the severance, the 98.4 unit owners shall cause the association governing the new common 98.5 interest community to be created by filing the articles of 98.6 incorporation of the association with the secretary of state, 98.7 and shall elect a board of directors to act on behalf of the new 98.8 association. The board of directors of the new association 98.9 shall coordinate the completion of the severance with the board 98.10 of directors of the existing association. The existing 98.11 association shall retain all authority to act on behalf of the 98.12 common interest community until the amendment to the declaration 98.13 is recorded. 98.14 (h) The legal descriptions of the real estate constituting 98.15 (i) the remaining common interest community, and (ii) the 98.16 severed portion of the common interest community shall, at the 98.17 time of recording of the amendment to the declaration referred 98.18 to in subsection (e), be as follows: 98.19 (1) In a planned community using a CIC plat that complies 98.20 with section 515B.2-110, subsection (d), the lot and block 98.21 descriptions contained in the CIC plat, and any amendments to 98.22 it, with respect to (i) the remaining common interest community, 98.23 and (ii) the severed portion of the common interest community. 98.24 (2) In a condominium, or cooperative or planned community 98.25 using a CIC plat that complies with section 515B.2-110, 98.26 subsection (c), (i) the CIC plat description relating to the 98.27 remaining common interest community, and (ii) the part of the 98.28 underlying legal description of the real estate in the 98.29 declaration creating the common interest community, and any 98.30 amendments to it, relating to the severed part of the common 98.31 interest community. 98.32 (3) The recording officer for each county in which the 98.33 common interest community is located shall index the property 98.34 located in that county in its records under the legal 98.35 descriptions required by this subsection as of the date of 98.36 recording of the amendment to the declaration. In the case of 99.1 registered property, the registrar of titles shall cancel the 99.2 existing certificates of title for the severed part of the 99.3 common interest community and issue certificates of title for 99.4 the property using the legal descriptions required by this 99.5 subsection. 99.6 (i) In a condominium or planned community, if the severed 99.7 part of the common interest community is not to be reconstituted 99.8 as a new common interest community following severance, title to 99.9 the common elements and, in a common interest community in which 99.10 all units have upper and lower boundaries described in the 99.11 declaration title to all the real estate in the severed part of 99.12 the common interest community, vests in the unit owners of the 99.13 units being severed, upon severance, as tenants in common in 99.14 proportion to their respective allocated interests in the 99.15 declaration, and liens on the units shift accordingly. While 99.16 the tenancy in common exists, each unit owner and the unit 99.17 owner's successors in interest have an exclusive right to 99.18 occupancy of the portion of the real estate that formerly 99.19 constituted the unit, and a nonexclusive easement across, over 99.20 and under any common elements contained in the severed portion 99.21 of the common interest community for enjoyment, access, 99.22 utilities, communication services, and other essential services, 99.23 as applicable. 99.24 (j) No common interest community shall be severed in such a 99.25 manner as to materially impair access, utility services, 99.26 communication services, or other essential services with respect 99.27 to either the remaining common interest community or the severed 99.28 part of the common interest community. 99.29 Sec. 16. [515B.2-125] [ADDITION OF COMMON ELEMENTS.] 99.30 (a) Unless the declaration provides otherwise, real estate 99.31 owned by the association may be added to the common interest 99.32 community, as common elements only, subject to the requirements 99.33 of this section. Subject to any additional requirements 99.34 contained in the declaration, the addition of the real estate 99.35 shall be approved by: 99.36 (1) unit owners entitled to cast at least 67 percent of the 100.1 votes in the association; 100.2 (2) declarant until the earlier of (i) five years after the 100.3 recording of the declaration, or (ii) the time at which 100.4 declarant no longer owns an unsold unit; and 100.5 (3) in the case of a cooperative, all holders of mortgages 100.6 or contracts for deed on the entire real estate constituting the 100.7 cooperative. 100.8 (b) The declaration may specify a smaller percentage for 100.9 unit owner approval only if all of the units are restricted to 100.10 nonresidential use. A part of the common elements shall not be 100.11 designated as limited common elements unless approved 100.12 unanimously in writing by the unit owners. 100.13 (c) The approval by the unit owners shall be deemed to 100.14 grant to the association a power of attorney coupled with an 100.15 interest to acquire title to the real estate, if not previously 100.16 acquired, and to add the real estate to the common interest 100.17 community on behalf of the unit owners and the holders of all 100.18 other interests in the units, including without limit the power 100.19 to execute an amendment to the declaration and any other 100.20 instruments relating to the acquisition. 100.21 (d) Following the required approvals, the association shall 100.22 record an amendment to the declaration complying with this 100.23 chapter, that, at a minimum, (i) legally describes the real 100.24 estate added, (ii) designates the real estate as part of the 100.25 common elements, and (iii) subjects the real estate to the 100.26 declaration. 100.27 (e) In the case of a common interest community using a plat 100.28 complying with section 515B.2-110, subsection (c), the 100.29 association shall record an amended CIC plat reflecting the 100.30 change in the common elements with the amendment to the 100.31 declaration. The recording of the amendment to the declaration, 100.32 and amended CIC plat if required, shall complete the addition of 100.33 the real estate without further action by any person. 100.34 Sec. 17. Minnesota Statutes 1998, section 515B.3-103, is 100.35 amended to read: 100.36 515B.3-103 [DUTY OF BOARD, OFFICERS DURING, AFTER DECLARANT 101.1 CONTROL.] 101.2 (a) An association shall be governed by a board of 101.3 directors. Except as expressly prohibited by the declaration, 101.4 the articles of incorporation, bylaws, subsection (b), or other 101.5 provisions of this chapter, the board may act in all instances 101.6 on behalf of the association. In the performance of their 101.7 duties, the officers and directors are required to exercise (i) 101.8 if appointed by the declarant, the care required of fiduciaries 101.9 of the unit owners and (ii) if elected by the unit owners, the 101.10 care required of a director by section 302A.251 or 317A.251, as 101.11 applicable. 101.12 (b) The board may not act unilaterally to amend the 101.13 declaration, to terminate the common interest community, to 101.14 elect directors to the board, or to determine the 101.15 qualifications, powers and duties, or terms of office of 101.16 directors, but the board may fill vacancies in its membership 101.17 created other than by removal by the vote of the association 101.18 members for the unexpired portion of any term. 101.19 (c) Subject to subsection (d), the declaration may provide 101.20 for a period of declarant control of the association, during 101.21 which a declarant, or persons designated by the declarant, may 101.22 appoint and remove the officers and directors of the association. 101.23 The maximum period of declarant control may extend from the date 101.24 of the first conveyance of a unit to a unit owner other than a 101.25 declarant for a period not exceeding five years in the case of a 101.26 flexible common interest community or three years in the case of 101.27 any other common interest community. Regardless of any longer 101.28 period provided in the declaration or elsewhere, a period of 101.29 declarant control shall terminate upon the earlier of (i) 101.30 surrender of control by the declarant or (ii) 60 days after 101.31 conveyance of 75 percent of the units to unit owners other than 101.32 a declarant. 101.33 (d) Not later than 60 days after conveyance of 50 percent 101.34 of the units that may be created to unit owners other than a 101.35 declarant or an affiliate of a declarant, a meeting of the unit 101.36 owners shall be held at which not less than 33-1/3 percent of 102.1 the members of the board shall be elected by unit owners other 102.2 than a declarant or an affiliate of a declarant. 102.3 (e)Not later thanFollowing the termination of any period 102.4 of declarant control the unit owners shall electathe boardof102.5at least three members.Thereafter, a majority of the directors102.6shall be unit owners other than a declarant or an affiliate of a102.7declarant. The remaining directors need not be unit owners102.8unless required by the articles of incorporation, bylaws or102.9declaration. All unit owners, including the declarant and its102.10affiliates, may cast the votes allocated to any units owned by102.11them. The board shall elect the officers. The directors and102.12officers shall take office upon election.All unit owners, 102.13 including the declarant and its affiliates, may cast the votes 102.14 allocated to any units owned by them. The board shall 102.15 thereafter be subject to the following requirements. 102.16 (1) A majority of the directors shall be unit owners other 102.17 than a declarant or an affiliate of a declarant, or a natural 102.18 person designated by a unit owner that is not a natural person. 102.19 The remaining directors need not be unit owners unless required 102.20 by the articles of incorporation or bylaws. 102.21 (2) Subject to the requirements of subsection (1), the 102.22 articles of incorporation or by laws may authorize (i) the 102.23 appointment or election of one director, who need not be a unit 102.24 owner, by a declarant or by a person or persons other than a 102.25 unit owner, (ii) classes of directors, and (iii) the election of 102.26 certain directors by unit owners of a certain class or classes 102.27 of units. The articles of incorporation or bylaws shall not be 102.28 amended to change or terminate the authorization described in 102.29 (i) without the written consent of the person possessing the 102.30 power to appoint or elect. 102.31 (3) Subject to the requirements of subsection (1), if 102.32 separate classes of directors are authorized under subsection 102.33 (2), the articles of incorporation or bylaws may authorize class 102.34 voting by classes of directors on specified issues affecting 102.35 only a certain class of units, or to protect the legitimate 102.36 interests of the class. A person shall not use special class 103.1 voting to evade any limit imposed on declarants by this chapter. 103.2 (4) The board shall elect the officers. The directors and 103.3 officers shall take office upon election. 103.4 (f) In determining whether the period of declarant control 103.5 has terminated under subsection (c), or whether unit owners 103.6 other than a declarant are entitled to elect members of the 103.7 board of directors under subsection (d), the percentage of the 103.8 units which has been conveyed shall be calculated based upon the 103.9 assumption that all units which the declarant has built or 103.10 reserved the right to build in the declaration are included in 103.11 the common interest community. The percentages referred to in 103.12 subsections (c) and (d) shall be calculated without reference to 103.13 units that are auxiliary to other units, such as garage units or 103.14 storage units. A person shall not use a master association or 103.15 other device to evade the requirements of this section. 103.16 (g) Except as otherwise provided in this subsection, 103.17 meetings of the board of directors must be open to the unit 103.18 owners. To the extent practicable, the board shall give 103.19 reasonable notice to the unit owners of the date, time, and 103.20 place of a board meeting. If the date, time, and place of 103.21 meetings are provided for in the declaration, articles, or 103.22 bylaws, announced at a previous meeting of the board, posted in 103.23 a location accessible to the unit owners and designated by the 103.24 board from time to time, or if an emergency requires immediate 103.25 consideration of a matter by the board, notice is not required. 103.26 "Notice" has the meaning given in section 317A.011, subdivision 103.27 14. Meetings may be closed to discuss the following: 103.28 (1) personnel matters; 103.29 (2) pending or potential litigation, arbitration or other 103.30 potentially adversarial proceedings, between unit owners, 103.31 between the board or association and unit owners, or other 103.32 matters in which any unit owner may have an adversarial 103.33 interest, if the board determines that closing the meeting is 103.34 necessary to discuss strategy or to otherwise protect the 103.35 position of the board or association or the privacy of a unit 103.36 owner or occupant of a unit; or 104.1 (3) criminal activity arising within the common interest 104.2 community if the board determines that closing the meeting is 104.3 necessary to protect the privacy of the victim or that opening 104.4 the meeting would jeopardize investigation of the activity. 104.5 Nothing in this subsection imposes a duty on the board to 104.6 provide special facilities for meetings. The failure to give 104.7 notice as required by this subsection shall not invalidate the 104.8 board meeting or any action taken at the meeting. The minutes 104.9 of any part of a meeting that is closed under this subsection 104.10 may be kept confidential at the discretion of the board. 104.11 Sec. 18. Minnesota Statutes 1998, section 515B.3-105, is 104.12 amended to read: 104.13 515B.3-105 [TERMINATION OF DECLARANT'S CONTRACTS, LEASES.] 104.14 If entered into prior to expiration of the period of 104.15 declarant control pursuant to section 515B.3-103, (i) any 104.16 management contract, employment contract, or lease of 104.17 recreational facilities, units, garages or other parking 104.18 facilities, (ii) any contract, lease or license binding the 104.19 association to which a declarant or an affiliate of a declarant 104.20 is a party, or (iii) any contract, lease or license binding the 104.21 association or any unit owner other than the declarant or an 104.22 affiliate of the declarant which is not bona fide or which was 104.23 unconscionable to the unit owners at the time entered into under 104.24 the circumstances then prevailing, may be terminated without 104.25 penalty by the association at any time after the expiration of 104.26 declarant control upon not less than 90 days' notice to the 104.27 other party. If, during the suspension period described in 104.28 subsection 2-121(c)(3), a contract, lease, or license of a type 104.29 described in this section is entered into and is binding upon a 104.30 master association, then the master association, and not any 104.31 association, may terminate the contract, lease, or license under 104.32 the procedures in this section. This section does not apply to 104.33 (i) any lease the termination of which would terminate the 104.34 common interest communityor, (ii) a proprietary lease, or (iii) 104.35 in the case of a cooperative, a mortgage, or contract for deed 104.36 encumbering all real estate constituting the common interest 105.1 community. 105.2 Sec. 19. Minnesota Statutes 1998, section 515B.3-106, is 105.3 amended to read: 105.4 515B.3-106 [BYLAWS; ANNUAL REPORT.] 105.5 (a) A common interest community shall have bylaws which 105.6 comply with this chapter and the requirements of the statute 105.7 under which the association is incorporated. The bylaws and any 105.8 amendments may be recorded, but need not be recorded to be 105.9 effective unless so provided in the bylaws. 105.10 (b) The bylaws shall provide that, in addition to any 105.11 statutory requirements: 105.12 (1) A meeting of the members shall be held at least once 105.13 each year, and a specified officer of the association shall give 105.14 notice of the meeting as provided in section 515B.3-108. 105.15 (2) An annual report shall be prepared by the association 105.16 and a copy of the report shall be provided to each unit owner at 105.17 or prior to the annual meeting. 105.18 (c) The annual report shall contain at a minimum: 105.19 (1) a statement of any capital expenditures in excess of 105.20 two percent of the current budget or $5,000, whichever is 105.21 greater, approved by the association for the current fiscal year 105.22 or succeeding two fiscal years; 105.23 (2) a statement of the balance in any reserve or 105.24 replacement fund; 105.25 (3) a copy of the statement of revenues and expenses for 105.26 the association's last fiscal year, and a balance sheet as of 105.27 the end of said fiscal year; 105.28 (4) a statement of the status of any pending litigation or 105.29 judgments to which the association is a party; 105.30 (5) astatementdetailed description of the insurance 105.31 coverage provided by the association including a statement as to 105.32 which, if any, of the items referred to in section 515B.3-113, 105.33 subsection (b), are insured by the association; and 105.34 (6) a statement of the total past due assessments on all 105.35 units, current as of not more than 60 days prior to the date of 105.36 the meeting. 106.1 Sec. 20. Minnesota Statutes 1998, section 515B.3-110, is 106.2 amended to read: 106.3 515B.3-110 [VOTING; PROXIES.] 106.4 (a) At any meeting of the association an owner or the 106.5 holder of the owner's proxy shall be entitled to cast the vote 106.6 which is allocated to the unit. If there is more than one owner 106.7 of a unit, only one of the owners may cast the vote. If the 106.8 owners of a unit fail to agree as to who shall cast the vote, 106.9 the vote shall not be cast. 106.10 (b) If permitted by the articles or bylaws, votes allocated 106.11 to a unit may be cast pursuant to a proxy executed by the unit 106.12 owner entitled to cast the vote for that unit. The board may 106.13 specify the form of proxy and proxy rules, consistent with law. 106.14 (c) The entire vote on any single issue (except the 106.15 election of directors), may be by mailed ballots, subject to (i) 106.16 any prohibition or requirement contained in the articles of 106.17 incorporation, bylaws, or declaration and (ii) any requirements 106.18 of the statute under which the association is created. Such a 106.19 vote shall have the force and effect of a vote taken at a 106.20 meeting; provided, that the total votes cast are at least equal 106.21 to the votes required for a quorum. The board shall set a 106.22 voting period within which the ballots must be returned, which 106.23 period shall be not less than ten nor more than 30 days after 106.24 the date of mailing or hand delivery of the ballots to the 106.25 owners. The board of directors shall provide written notice of 106.26 the results of the vote to the members within 30 days after the 106.27 expiration of the voting period. All requirements in this 106.28 chapter, the declaration or the bylaws for a meeting of the 106.29 members, or being present in person, shall be deemed satisfied 106.30 by a vote taken by mail in compliance with the requirements of 106.31 this section. 106.32 (d) The articles of incorporation or bylaws may authorize 106.33 class voting by unit owners for directors or on specified issues 106.34 affecting the class. Class voting may only be used to address 106.35 operational, physical, or administrative differences within the 106.36 common interest community. A declarant shall not use class 107.1 voting to evade any limit imposed on declarants by this chapter 107.2 and units shall not constitute a class because they are owned by 107.3 a declarant. 107.4 (e) The declaration or bylaws may provide that votes on 107.5 specified matters affecting the common interest community be 107.6 cast by lessees or secured parties rather than unit owners; 107.7 provided that (i) the provisions of subsections (a), (b), and (c) 107.8 apply to those persons as if they were unit owners; (ii) unit 107.9 owners who have so delegated their votes to other persons may 107.10 not cast votes on those specified matters; (iii) lessees or 107.11 secured parties are entitled to notice of meetings, access to 107.12 records, and other rights respecting those matters as if they 107.13 were unit owners, and (iv) the lessee or secured party has filed 107.14 satisfactory evidence of its interest with the secretary of the 107.15 association prior to the meeting. Unit owners must also be 107.16 given notice, in the manner provided in section 515B.3-108(b), 107.17 of meetings at which lessees or secured parties are entitled to 107.18 vote. 107.19(e)(f) No votes allocated to a unit owned by the 107.20 association may be cast nor counted toward a quorum. 107.21 Sec. 21. Minnesota Statutes 1998, section 515B.3-113, is 107.22 amended to read: 107.23 515B.3-113 [INSURANCE.] 107.24 (a) Commencing not later than the time of the first 107.25 conveyance of a unit to a unit owner other than a declarant, the 107.26 association shall maintain, to the extent reasonably available: 107.27 (1) subject to subsection (b), property insurance (i) on 107.28 the common elements and, in a planned community, also on 107.29 property that must become common elements, (ii) for broad form 107.30 covered causes of loss, and (iii) in a total amount of not less 107.31 than the full insurable replacement cost of the insured 107.32 property, less deductibles, at the time the insurance is 107.33 purchased and at each renewal date, exclusive of items normally 107.34 excluded from property policies; and 107.35 (2) commercial general liability insurance against claims 107.36 and liabilities arising in connection with the ownership, 108.1 existence, use or management of the property in an amount, if 108.2 any, specified by the common interest community instruments or 108.3 otherwise deemed sufficient in the judgment of the board, 108.4 insuring the board, the association, the management agent, and 108.5 their respective employees, agents and all persons acting as 108.6 agents. The declarant shall be included as an additional 108.7 insured in its capacity as a unit owner or board member. The 108.8 unit owners shall be included as additional insureds but only 108.9 for claims and liabilities arising in connection with the 108.10 ownership, existence, use or management of the common elements. 108.11 The insurance shall cover claims of one or more insured parties 108.12 against other insured parties. 108.13 (b) In the case of a common interest community that 108.14 contains units, or structures within units, sharing or having 108.15 contiguous walls, siding or roofs, the insurance maintained 108.16 under subsection (a)(1) shall includethethose units, or 108.17 structures within those units, and the common elements. The 108.18 insurance need not coverimprovements and betterments to the108.19units installed by unit owners, butthe following items within 108.20 the units: (i) ceiling or wall finishing materials, (ii) floor 108.21 coverings, (iii) cabinetry, (iv) finished millwork, (v) 108.22 electrical or plumbing fixtures serving a single unit, (vi) 108.23 built-in appliances, or (vii) other improvements and 108.24 betterments, regardless of when installed. If any improvements 108.25 and betterments are covered, any increased cost may be assessed 108.26 by the association against the units affected. The association 108.27 may, in the case of a claim for damage to a unit or units, (i) 108.28 pay the deductible amount as a common expense, (ii) assess the 108.29 deductible amount against the units affected in any reasonable 108.30 manner, or (iii) require the unit owners of the units affected 108.31 to pay the deductible amount directly. 108.32 (c) If the insurance described in subsections (a) and (b) 108.33 is not reasonably available, the association shall promptly 108.34 cause notice of that fact to be hand delivered or sent prepaid 108.35 by United States mail to all unit owners. The declaration may 108.36 require the association to carry any other insurance, and the 109.1 association in any event may carry any other insurance it 109.2 considers appropriate to protect the association, the unit 109.3 owners or officers, directors or agents of the association. 109.4 (d) Insurance policies carried pursuant to subsections (a) 109.5 and (b) shall provide that: 109.6 (1) each unit owner and secured party is an insured person 109.7 under the policy with respect to liability arising out of the 109.8 unit owner's interest in the common elements or membership in 109.9 the association; 109.10 (2) the insurer waives its right to subrogation under the 109.11 policy against any unit owner of the condominium or members of 109.12 the unit owner's household and against the association and 109.13 members of the board of directors; 109.14 (3) no act or omission by any unit owner or secured party, 109.15 unless acting within the scope of authority on behalf of the 109.16 association, shall void the policy or be a condition to recovery 109.17 under the policy; and 109.18 (4) if at the time of a loss under the policy there is 109.19 other insurance in the name of a unit owner covering the same 109.20 property covered by the policy, the association's policy is 109.21 primary insurance. 109.22 (e) Any loss covered by the property policy under 109.23 subsection (a)(1) shall be adjusted by and with the association. 109.24 The insurance proceeds for that loss shall be payable to the 109.25 association, or to an insurance trustee designated by the 109.26 association for that purpose. The insurance trustee or the 109.27 association shall hold any insurance proceeds in trust for unit 109.28 owners and secured parties as their interests may appear. The 109.29 proceeds shall be disbursed first for the repair or restoration 109.30 of the damaged common elements and units. Unit owners and 109.31 secured parties are not entitled to receive any portion of the 109.32 proceeds unless there is a surplus of proceeds after the common 109.33 elements and units have been completely repaired or restored or 109.34 the common interest community is terminated. 109.35 (f) Unit owners may obtain insurance for personal benefit 109.36 in addition to insurance carried by the association. 110.1 (g) An insurer that has issued an insurance policy under 110.2 this section shall issue certificates or memoranda of insurance, 110.3 upon request, to any unit owner or secured party. The insurance 110.4 may not be canceled until 60 days after notice of the proposed 110.5 cancellation has been mailed to the association, each unit owner 110.6 and each secured party for an obligation to whom certificates of 110.7 insurance have been issued. 110.8 (h) Any portion of the common interest community which is 110.9 damaged or destroyed as the result of a loss covered by the 110.10 association's insurance shall be promptly repaired or replaced 110.11 by the association unless (i) the common interest community is 110.12 terminated and the association votes not to repair or replace 110.13 all or part thereof, (ii) repair or replacement would be illegal 110.14 under any state or local health or safety statute or ordinance, 110.15 or (iii) 80 percent of the unit owners, including every unit 110.16 owner and holder of a first mortgage on a unit or assigned 110.17 limited common element which will not be rebuilt, vote not to 110.18 rebuild. Subject to subsection (b), the cost of repair or 110.19 replacement of the common elements in excess of insurance 110.20 proceeds and reserves shall be paid as a common expense, and the 110.21 cost of repair of a unit in excess of insurance proceeds shall 110.22 be paid by the respective unit owner. 110.23 (i) If less than the entire common interest community is 110.24 repaired or replaced, (i) the insurance proceeds attributable to 110.25 the damaged common elements shall be used to restore the damaged 110.26 area to a condition compatible with the remainder of the common 110.27 interest community, (ii) the insurance proceeds attributable to 110.28 units and limited common elements which are not rebuilt shall be 110.29 distributed to the owners of those units, including units to 110.30 which the limited common elements were assigned, and the secured 110.31 parties of those units, as their interests may appear, and (iii) 110.32 the remainder of the proceeds shall be distributed to all the 110.33 unit owners and secured parties as their interests may appear in 110.34 proportion to their common element interest in the case of a 110.35 condominium or in proportion to their common expense liability 110.36 in the case of a planned community or cooperative. 111.1 (j) If the unit owners and holders of first mortgages vote 111.2 not to rebuild a unit, that unit's entire common element 111.3 interest, votes in the association, and common expense liability 111.4 are automatically reallocated upon the vote as if the unit had 111.5 been condemned under section 515B.1-107, and the association 111.6 shall promptly prepare, execute and record an amendment to the 111.7 declaration reflecting the reallocations. Notwithstanding the 111.8 provisions of this subsection, if the common interest community 111.9 is terminated, insurance proceeds not used for repair or 111.10 replacement shall be distributed in the same manner as sales 111.11 proceeds pursuant to section 515B.2-119. 111.12 (k) The provisions of this section may be varied or waived 111.13 in the case of a common interest community in which all units 111.14 are restricted to nonresidential use. 111.15 Sec. 22. Minnesota Statutes 1998, section 515B.3-115, is 111.16 amended to read: 111.17 515B.3-115 [ASSESSMENTS FOR COMMON EXPENSES.] 111.18 (a) The obligation of a unit owner to pay common expense 111.19 assessments shall be as follows: 111.20 (1) If a common expense assessment has not been levied, the 111.21 declarant shall pay all accrued expenses of the common interest 111.22 community. 111.23 (2) If a common expense assessment has been levied, all 111.24 unit owners including the declarant shall pay the assessments 111.25 allocated to their units,except as otherwise permitted by this111.26section. Subject to the requirements of this section, a111.27declarant may institute one, but not both, of the alternative111.28assessment programs described in subsections (a)(1) and (a)(2),111.29whereby:subject to subsection (b). 111.30(1) if a common expense assessment has been levied, the111.31purchaser shall pay when due only the common expenses up to a111.32specified limit guaranteed by the declarant, and the declarant111.33shall pay all common expenses in excess of the limit; or111.34(2) if a common expense assessment has been levied in a111.35planned community, the declarant may limit its liability for111.36assessments on units owned by it to 25 percent or any greater112.1percentage of any assessment levied until such time as a112.2certificate of occupancy is issued by the municipality in which112.3the common interest community is located for the unit or units112.4owned by the declarant.112.5 (3) Notwithstanding subsections (a)(1), (a)(2), and (b), if 112.6 the association maintains the exteriors of the buildings 112.7 constituting or contained within the units, that part of any 112.8 assessment that is allocated to replacement reserves referred to 112.9 in section 515B.3-114 shall be fully levied against a unit, 112.10 including any unit owned by a declarant, on the earlier of 112.11 substantial completion of the exterior of (i) the building 112.12 containing the unit or (ii) any building located within the unit. 112.13 (b)The alternative assessment programs described in112.14subsection (a)(1) or (2), shall be permitted only by including112.15in the declaration, and the disclosure statement required by112.16section 515B.4-102, provisions authorizing declarant to112.17establish an alternative assessment program and a detailed112.18explanation of the program, including at a minimum, as112.19applicable, (i) the maximum amount of any guaranty on a monthly112.20and aggregate basis with respect to each type of unit, (ii) the112.21minimum and maximum duration of the alternative assessment112.22program, (iii) the time when the declarant's authority to112.23commence the alternative assessment program expires, which shall112.24be no later than the expiration of any period of declarant112.25control, and (iv) a statement that the alternative assessment112.26program will have no effect on the level of services for items112.27set forth in the association's budget, or a statement that no112.28assurances are made in those regards.Subject to subsection 112.29 (a)(3), if the declaration so provides, a declarant's liability, 112.30 and the assessment lien, for assessments, other than replacement 112.31 reserves, on any unit owned by the declarant may be limited to 112.32 25 percent or any greater percentage of any assessment levied, 112.33 until the unit or any building located in it is substantially 112.34 completed. Substantial completion shall be evidenced by a 112.35 certificate of occupancy in any jurisdiction that issues the 112.36 certificate. 113.1 (c)Notwithstanding any disclosure in the declaration or113.2disclosure statement, the declarant shall give the unit owners113.3at least 60 days' prior notice of the termination of the113.4alternative assessment program, subject to any minimum duration113.5described in the declaration and disclosure statement.113.6(d) Any alternative assessment program instituted by113.7declarant shall not affect declarant's obligation to fund the113.8reserves disclosed in the association's budget included in the113.9disclosure statement or otherwise approved by the association.113.10(e) Any representations or agreements made by a declarant113.11with respect to an alternative assessment program shall be113.12enforceable against declarant by any unit owner or by the113.13association.113.14(f)After an assessment has been levied by the association, 113.15 assessments shall be levied at least annually, based upon a 113.16 budget approved at least annually by the association. 113.17(g)(d) Except as modified by subsections (a)(1) and (2), 113.18 (h), (i) and (j), all common expenses shall be assessed against 113.19 all the units in accordance with the allocations established by 113.20 the declaration pursuant to section 515B.2-108. 113.21(h)(e) Unless otherwise required by the declaration: 113.22 (1) any common expense associated with the maintenance, 113.23 repair, or replacement of a limited common element shall be 113.24 assessed against the units to which that limited common element 113.25 is assigned, equally, or in any other proportion the declaration 113.26 provides; 113.27 (2) any common expense or portion thereof benefiting fewer 113.28 than all of the units may be assessed exclusively against the 113.29 units benefited, equally, or in any other proportion the 113.30 declaration provides; 113.31 (3) the costs of insurance may be assessed in proportion to 113.32 risk or coverage, and the costs of utilities may be assessed in 113.33 proportion to usage; 113.34 (4) reasonable attorneys fees and costs incurred by the 113.35 association in connection with (i) the collection of assessments 113.36 and, (ii) the enforcement of this chapter, the articles, bylaws, 114.1 declaration, or rules and regulations, against a unit owner, may 114.2 be assessed against the unit owner's unit; and 114.3 (5) fees, charges, late charges, fines and interest may be 114.4 assessed as provided in section 515B.3-116(a). 114.5(i)(f) Assessments levied under section 515B.3-116 to pay 114.6 a judgment against the association may be levied only against 114.7 the units in the common interest community at the time the 114.8 judgment was entered, in proportion to their common expense 114.9 liabilities. 114.10(j)(g) If any damage to the common elements or another 114.11 unit is caused by the act or omission of any unit owner, or 114.12 occupant of a unit, or their invitees, the association may 114.13 assess the costs of repairing the damage exclusively against the 114.14 unit owner's unit to the extent not covered by insurance. 114.15(k)(h) Subject to any shorter period specified by the 114.16 declaration or bylaws, if any installment of an assessment 114.17 becomes more than 60 days past due, then the association may, 114.18 upon ten days' written notice to the unit owner, declare the 114.19 entire amount of the assessment immediately due and payable in 114.20 full. 114.21(l)(i) If common expense liabilities are reallocated for 114.22 any purpose authorized by this chapter, common expense 114.23 assessments and any installment thereof not yet due shall be 114.24 recalculated in accordance with the reallocated common expense 114.25 liabilities. 114.26 Sec. 23. Minnesota Statutes 1998, section 515B.3-116, is 114.27 amended to read: 114.28 515B.3-116 [LIEN FOR ASSESSMENTS.] 114.29 (a) The association has a lien on a unit for any assessment 114.30 levied against that unit from the time the assessment becomes 114.31 due. If an assessment is payable in installments, the full 114.32 amount of the assessment is a lien from the time the first 114.33 installment thereof becomes due. Unless the declaration 114.34 otherwise provides, fees, charges, late charges, fines and 114.35 interest charges pursuant to section 515B.3-102(a)(10), (11) and 114.36 (12) are liens, and are enforceable as assessments, under this 115.1 section. 115.2 (b) A lien under this section is prior to all other liens 115.3 and encumbrances on a unit except (i) liens and encumbrances 115.4 recorded before the declaration and, in a cooperative, liens and 115.5 encumbrances which the association creates, assumes, or takes 115.6 subject to, (ii) any first mortgageonencumbering the fee 115.7 simple interest in the unit, or, in a cooperative, any first 115.8 security interest encumbering only the unit owner's interest in 115.9 the unit, and (iii) liens for real estate taxes and other 115.10 governmental assessments or charges against the unit. If a 115.11 first mortgage on a unit is foreclosed, the first mortgage was 115.12 recorded after June 1, 1994, and no owner redeems during the 115.13 owner's period of redemption provided by chapter 580, 581, or 115.14 582, the holder of the sheriff's certificate of sale from the 115.15 foreclosure of the first mortgage shall take title to the unit 115.16 subject to a lien in favor of the association for unpaid 115.17 assessments for common expenses levied pursuant to section 115.18 515B.3-115(a), (h)(1) to (3), (i), and (l) which became due, 115.19 without acceleration, during the six months immediately 115.20 preceding the first day following the end of the owner's period 115.21 of redemption. If a first security interest encumbering a unit 115.22 owner's interest in a cooperative unit which is personal 115.23 property is foreclosed, the secured party or the purchaser at 115.24 the sale shall take title to the unit subject to unpaid 115.25 assessments for common expenses levied pursuant to section 115.26 515B.3-115(a), (h)(1) to (3), (i), and (l) which became due, 115.27 without acceleration, during the six months immediately 115.28 preceding the first day following either the date of sale 115.29 pursuant to section 336.9-504 or the date on which the 115.30 obligation of the unit owner is discharged pursuant to section 115.31 336.9-505. This subsection shall not affect the priority of 115.32 mechanics' liens. 115.33 (c) Recording of the declaration constitutes record notice 115.34 and perfection of any lien under this section, and no further 115.35 recordation of any notice of or claim for the lien is required. 115.36 (d) Proceedings to enforce an assessment lien shall be 116.1 instituted within three years after the last installment of the 116.2 assessment becomes payable, or shall be barred. 116.3 (e) The unit owner of a unit at the time an assessment is 116.4 due shall be personally liable to the association for payment of 116.5 the assessment levied against the unit. If there are multiple 116.6 owners of the unit, they shall be jointly and severally liable. 116.7 (f) This section does not prohibit actions to recover sums 116.8 for which subsection (a) creates a lien nor prohibit an 116.9 association from taking a deed in lieu of foreclosure. The 116.10 commencement of an action to recover the sums is not an election 116.11 of remedies if it is dismissed before commencement of 116.12 foreclosure of the lien provided for by this section. 116.13 (g) The association shall furnish to a unit owner or the 116.14 owner's authorized agent upon written request of the unit owner 116.15 or the authorized agent a statement setting forth the amount of 116.16 unpaid assessments currently levied against the owner's unit. 116.17 If the unit owner's interest is real estate, the statement shall 116.18 be in recordable form. The statement shall be furnished within 116.19 ten business days after receipt of the request and is binding on 116.20 the association and every unit owner. 116.21 (h) The association's lien may be foreclosed as provided in 116.22 this subsection. 116.23 (1) In a condominium or planned community, the 116.24 association's lien may be foreclosed in a like manner as a 116.25 mortgage containing a power of sale pursuant to chapter 580, or 116.26 by action pursuant to chapter 581. The association shall have a 116.27 power of sale to foreclose the lien pursuant to chapter 580. 116.28 (2) In a cooperative whose unit owners' interests are real 116.29 estate, the association's lien shall be foreclosed in a like 116.30 manner as a mortgage on real estate as provided in paragraph (1). 116.31 (3) In a cooperative whose unit owners' interests in the 116.32 units are personal property, the association's lien shall be 116.33 foreclosed in a like manner as a security interest under article 116.34 9 of chapter 336. In any disposition pursuant to section 116.35 336.9-504 or retention pursuant to section 336.9-505, the rights 116.36 of the parties shall be the same as those provided by law, 117.1 except (i) notice of sale, disposition, or retention shall be 117.2 served on the unit owner 90 days prior to sale, disposition, or 117.3 retention, (ii) the association shall be entitled to its 117.4 reasonable costs and attorney fees not exceeding the amount 117.5 provided by section 582.01, subdivision 1a, (iii) the amount of 117.6 the association's lien shall be deemed to be adequate 117.7 consideration for the unit subject to disposition or retention, 117.8 notwithstanding the value of the unit, and (iv) the notice of 117.9 sale, disposition, or retention shall contain the following 117.10 statement in capital letters with the name of the association or 117.11 secured party filled in: 117.12 "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of 117.13 association or secured party) HAS BEGUN PROCEEDINGS UNDER 117.14 MINNESOTA STATUTES, CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST 117.15 IN YOUR UNIT FOR THE REASON SPECIFIED IN THIS NOTICE. YOUR 117.16 INTEREST IN YOUR UNIT WILL TERMINATE 90 DAYS AFTER SERVICE OF 117.17 THIS NOTICE ON YOU UNLESS BEFORE THEN: 117.18 (a) THE PERSON AUTHORIZED BY (fill in the name of 117.19 association or secured party) AND DESCRIBED IN THIS NOTICE TO 117.20 RECEIVE PAYMENTS RECEIVES FROM YOU: 117.21 (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS 117.22 (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS 117.23 (3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR 117.24 INCURRED; PLUS 117.25 (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO 117.26 (fill in name of association or secured party) AFTER THE DATE OF 117.27 THIS NOTICE; OR 117.28 (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 117.29 FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR 117.30 CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 117.31 SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 117.32 GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES. 117.33 IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 117.34 WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP 117.35 RIGHTS IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU 117.36 WILL LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL 118.1 LOSE YOUR RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR 118.2 RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND 118.3 YOU WILL BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS 118.4 NOTICE, CONTACT AN ATTORNEY IMMEDIATELY." 118.5 (4) In any foreclosure pursuant to chapter 580, 581, or 118.6 582, the rights of the parties shall be the same as those 118.7 provided by law, except (i) the period of redemption for unit 118.8 owners shall be six months from the date of sale or a lesser 118.9 period authorized by law, (ii) in a foreclosure by advertisement 118.10 under chapter 580, the foreclosing party shall be entitled to 118.11 costs and disbursements of foreclosure,and attorneys feesin118.12the amount provided byauthorized by the declaration or bylaws, 118.13 notwithstanding the provisions of section 582.01, 118.14subdivisionsubdivisions 1 and 1a, (iii) in a foreclosure by 118.15 action under chapter 581, the foreclosing party shall be 118.16 entitled to costs and disbursements of foreclosure and attorneys 118.17 fees as the court shall determine, and (iv) the amount of the 118.18 association's lien shall be deemed to be adequate consideration 118.19 for the unit subject to foreclosure, notwithstanding the value 118.20 of the unit. 118.21 (i) If a holder of a sheriff's certificate of sale, prior 118.22 to the expiration of the period of redemption, pays any past due 118.23 or current assessments, or any other charges lienable as 118.24 assessments, with respect to the unit described in the sheriff's 118.25 certificate, then the amount paid shall be a part of the sum 118.26 required to be paid to redeem under section 582.03. 118.27 (j) In a cooperative, following foreclosure, the 118.28 association may bring an action for unlawful detainer against 118.29 the unit owner and any persons in possession of the unit, and in 118.30 that case section 504.02 shall not apply. 118.31 (k) An association may assign its lien rights in the same 118.32 manner as any other secured party. 118.33 Sec. 24. Minnesota Statutes 1998, section 515B.3-121, is 118.34 amended to read: 118.35 515B.3-121 [ACCOUNTING CONTROLS.] 118.36 (a) Subject to any additional or greater requirements set 119.1 forth in the declaration or bylaws, a review of the 119.2 association's financial statements shall be made at the end of 119.3 the association's fiscal year, unless prior to3060 days after 119.4 the end of that fiscal year, at a meeting or by mailed ballot, 119.5 unit owners of units to which at least 30 percent of the votes 119.6 in the association are allocated vote to waive the review 119.7 requirement for that fiscal year. A waiver vote shall not apply 119.8 to more than one fiscal year, and shall not affect the board's 119.9 authority to cause a review or audit to be made. The reviewed 119.10 financial statements shall be delivered to all members of the 119.11 association within120180 days after the end of the 119.12 association's fiscal year. 119.13 (b) The review shall be made by a licensed, independent 119.14 certified public accountant. A licensed, independent certified 119.15 public accountant means an accountant who (i) is not an employee 119.16 of the declarant or its affiliates, (ii) is professionally 119.17 independent of the control of the declarant or its affiliates, 119.18 (iii) is licensed by the Minnesota state board of accountancy 119.19 and (iv) satisfies the tests for independence as promulgated by 119.20 the American Institute of Certified Public Accountants. 119.21 (c) Where the financial statements are prepared by an 119.22 independent certified public accountant, they shall be prepared 119.23 in accordance with generally accepted accounting principles as 119.24 established from time to time by the American Institute of 119.25 Certified Public Accountants, and shall be reviewed in 119.26 accordance with standards for accounting and review services. 119.27 In such case, the financial statements shall be presented on the 119.28 full accrual basis using an accounting format that separates 119.29 operating activity from replacement reserve activity. 119.30 Sec. 25. Minnesota Statutes 1998, section 515B.4-101, is 119.31 amended to read: 119.32 515B.4-101 [APPLICABILITY; DELIVERY OF DISCLOSURE 119.33 STATEMENT.] 119.34 (a) Sections 515B.4-101 through 515B.4-118 apply to all 119.35 units subject to this chapter, except as provided in subsection 119.36 (c) or as modified or waived by agreement of purchasers of a 120.1 unit which is restricted to nonresidential use. 120.2 (b) Subject tosubsectionsubsections (a) and (c), a 120.3 declarant who offers a unit to a purchaser shall deliver to the 120.4 purchaser a current disclosure statement which complies with the 120.5 requirements of section 515B.4-102. The disclosure statement 120.6 shall include any material amendments to the disclosure 120.7 statement made prior to the conveyance of the unit to the 120.8 purchaser. The declarant shall be liable to the purchaser to 120.9 whom it delivered the disclosure statement for any false or 120.10 misleading statement set forth therein or for any omission of a 120.11 material fact therefrom. 120.12 (c) Neither a disclosure statement nor a resale disclosure 120.13 certificate need be prepared or delivered in the case of: 120.14 (1) a gratuitous transfer; 120.15 (2) a transfer pursuant to a court order; 120.16 (3) a transfer to a government or governmental agency; 120.17 (4) a transfer to a secured party by foreclosure or deed in 120.18 lieu of foreclosure; 120.19 (5) an option to purchase a unit, until exercised; 120.20 (6) a transfer to a person who "controls" or is "controlled 120.21 by," the grantor as those terms are defined with respect to a 120.22 declarant under section 515B.1-103(2); 120.23 (7) a transfer by inheritance; 120.24 (8) a transfer of special declarant rights under section 120.25 515B.3-104; or 120.26 (9) a transfer in connection with a change of form of 120.27 common interest community under section 515B.2-123. 120.28 (d) A purchase agreement for a unit shall contain the 120.29 following notice: "The following notice is required by 120.30 Minnesota Statutes. The purchaser is entitled to receive a 120.31 disclosure statement or resale disclosure certificate, as 120.32 applicable. The disclosure statement or resale disclosure 120.33 certificate contains important information regarding the common 120.34 interest community and the purchaser's cancellation rights." 120.35 Sec. 26. Minnesota Statutes 1998, section 515B.4-102, is 120.36 amended to read: 121.1 515B.4-102 [DISCLOSURE STATEMENT; GENERAL PROVISIONS.] 121.2 (a) A disclosure statement shall fully and accurately 121.3 disclose: 121.4 (1) the name and, if available, the number of the common 121.5 interest community; 121.6 (2) the name and principal address of the declarant; 121.7 (3) the number of units in the common interest community 121.8 and a statement that the common interest community is either a 121.9 condominium, cooperative, or planned community; 121.10 (4) a general description of the common interest community, 121.11 including,to the extent possibleat a minimum, (i) thetypes121.12andnumber of buildings, (ii) the number of dwellings per 121.13 building, (iii) the type of construction, (iv) whether the 121.14 common interest community involves new construction or 121.15 rehabilitation, (v) whether any building was wholly or partially 121.16 occupied, for any purpose, before it was added to the common 121.17 interest community and the nature of the occupancy, and (vi) a 121.18 general description of any roads, trails, or utilities that are 121.19 located on the common elements and that the association or a 121.20 master association will be required to maintain; 121.21 (5) declarant's schedule of commencement and completion of 121.22 construction of any buildings and other improvements that the 121.23 declarant is obligated to build pursuant to section 515B.4-117; 121.24 (6) any expenses or services, not reflected in the budget, 121.25 that the declarant pays or provides, which may become a common 121.26 expenseof the association; the projected common expense 121.27 attributable to each of those expenses or servicesfor the121.28association; anda detailedan explanation ofany121.29alternativedeclarant's limited assessmentprogram established121.30pursuant toliability under section 515B.3-115, subsection (b) 121.31and (d); 121.32 (7) any initial or special fee due from the purchaser to 121.33 the declarant or the association at closing, together with a 121.34 description of the purpose and method of calculating the fee; 121.35 (8) identification of any liens, defects, or encumbrances 121.36 which will continue to affect the title to a unit or to any real 122.1 property owned by the association after the contemplated 122.2 conveyance; 122.3 (9) a description of any financing offered or arranged by 122.4 the declarant; 122.5 (10) a statement as to whetherthe common interest122.6community has receivedapplication has been made for anyfinal122.7 project approvals for the common interest community from the 122.8 Federal National Mortgage Association (FNMA), Federal Home Loan 122.9 Mortgage Corporation (FHLMC), Department of Housing and Urban 122.10 Development (HUD) or Department of Veterans Affairs (VA), and 122.11 which, if any, such final approvals have been received; 122.12 (11) the terms of any warranties provided by the declarant, 122.13 including copies of chapter 327A, and sections 515B.4-112 122.14 through 515B.4-115, and a statement of any limitations on the 122.15 enforcement of warranties or on damages; 122.16 (12) a statement that: (i) within15ten days after the 122.17 receipt of a disclosure statement, a purchaser may cancel any 122.18 contract for the purchase of a unit from a declarant; provided, 122.19 that the right to cancel terminates upon the purchaser's 122.20 voluntary acceptance of a conveyance of the unit from the 122.21 declarant; (ii) if a purchaser receives a disclosure statement 122.22 more than15ten days before signing a purchase agreement, the 122.23 purchaser cannot cancel the purchase agreement; and (iii) if a 122.24 declarant obligated to deliver a disclosure statement fails to 122.25 deliver a disclosure statement which substantially complies with 122.26 this chapter to a purchaser to whom a unit is conveyed, the 122.27 declarant shall be liable to the purchaser as provided in 122.28 section 515B.4-106(d); 122.29 (13) a statement disclosing to the extent of the 122.30 declarant's or an affiliate of a declarant's actual knowledge, 122.31 after reasonable inquiry, any unsatisfied judgments or lawsuits 122.32 to which the association is a party, and the status of those 122.33 lawsuits which are material to the common interest community or 122.34 the unit being purchased; 122.35 (14) a statementthat any earnest money paid in connection122.36with the purchase of a unit will be held in an escrow account123.1until closing, or until the termination of the purchase123.2agreement, and(i) describing the conditions under which earnest 123.3 money will be held in and disbursed from the escrow account, as 123.4 set forth in section 515B.4-109, (ii) that the earnest money 123.5 will be returned to the purchaser if the purchaser cancels the 123.6 contract pursuant to section 515B.4-106,together withand (iii) 123.7 setting forth the name and address of the escrow agent; 123.8 (15) a detailed description of the insurance coverage 123.9 provided by the association for the benefit of unit owners, 123.10 includingany fixtures, decorating items or constructiona 123.11 statement as to which, if any, of the itemswithin a unit which123.12are not required to bereferred to in section 515B.3-113, 123.13 subsection (b), are insured by the association; 123.14 (16) any current or expected fees or charges, other than 123.15 assessments for common expenses, to be paid by unit owners for 123.16 the use of the common elements or any other improvements or 123.17 facilities; 123.18 (17) the financial arrangements, including any 123.19 contingencies, which have been made to provide for completion of 123.20 all improvements that the declarant is obligated to build 123.21 pursuant to section 515B.4-118, or a statement that no such 123.22 arrangements have been made; 123.23 (18) in a cooperative: (i) whether the unit owners will be 123.24 entitled for federal and state tax purposes, to deduct payments 123.25 made by the association for real estate taxes and interest paid 123.26 to the holder of a security interest encumbering the 123.27 cooperative; and (ii) a statement as to the effect on the unit 123.28 owners if the association fails to pay real estate taxes or 123.29 payments due the holder of a security interest encumbering the 123.30 cooperative; 123.31 (19) a statement: (i) that real estate taxes for the unit 123.32 or any real property owned by the association are not delinquent 123.33 or, if there are delinquent real estate taxes, describing the 123.34 property for which the taxes are delinquent;, stating the amount 123.35 of the delinquent taxes, interest and penalties;, and stating 123.36 the years for which taxes are delinquent;, and (ii) setting 124.1 forth the amount ofthereal estate taxes, including the amount 124.2 of any special assessment certified for payment with the real 124.3 estate taxes, due and payable with respect to the unitfor which124.4the disclosure statement is givenin the year in which the 124.5 disclosure statement is given, if real estate taxes have been 124.6 separately assessed against the unit; 124.7 (20) if the association or the purchaser of the unit will 124.8 be a member of a master association, a statement to that effect, 124.9 and all of the following information with respect to the master 124.10 association: (i) a copy of the declaration, if any,(other than 124.11 any CIC plat), the articles of incorporation, bylaws, and rules 124.12 and regulations for the master association, together with any 124.13 amendments thereto; (ii) the name, address and general 124.14 description of the master association, including a general 124.15 description of any other association, unit owners, or other 124.16 persons which are or may become members, and a general124.17description of the relationship between the master association124.18and its members; (iii) a description of any nonresidential use 124.19 permitted on any property subject to the master association; 124.20 (iv) a statement as to the estimated maximum number of 124.21 associations, unit owners or other persons which may become 124.22 members of the master association, and the degree and period of 124.23 control of the master association by a declarant or other 124.24 person; (v) a description of, and the schedule of commencement124.25and completion of, any buildings and other improvements that the124.26master association, a declarant or other person, as the case may124.27be, is obligated to build in which the members of the master124.28association have or may have an interestany facilities intended 124.29 for the benefit of the members of the master association and not 124.30 located on property owned or controlled by a member; (vi) the 124.31 financial arrangements, including any contingencies, which have 124.32 been made to provide for completion of thebuildings and124.33improvementsfacilities referred to in subsection (v), or a 124.34 statement that no arrangements have been made; (vii) any current 124.35 balance sheet of the master association, which shall include124.36with respect to the master association those items set forth in125.1section 515B.4-102(a)(23)(i) to (iv),and a projected or current 125.2 annual budget, as applicable, which budget shall include with 125.3 respect to the master association those items in paragraph (23), 125.4 clauses (i) through (iv); (viii) a description of any expenses 125.5 or servicesprovided by the master association to its members125.6and any current or projected assessments attributable to the125.7members of the master association for the servicesnot reflected 125.8 in the budget, paid for or provided by a declarant or a person 125.9 executing the master declaration, which may become an expense of 125.10 the master association in the future; (ix) a description of any 125.11 powers delegated to and accepted by the master association 125.12 pursuant to section 515B.2-121(c)(f)(2); (x) identification of 125.13 any liens, defects or encumbranceson or affectingthat will 125.14 continue to affect title to propertyin which the members of the125.15master association have or may have any interestowned or 125.16 operated by the master association for the benefit of its 125.17 members; (xi) the terms of any warranties provided by any person 125.18 for construction ofbuildings or other improvementsfacilities 125.19 in which the members of the master association have or may have 125.20 an interestby virtue of membership in the master association, 125.21 and any known defects in thebuildings or other improvements125.22 facilities which would violate the standards described in 125.23 section 515B.4-112(b); (xii) a statement disclosing, to the 125.24 extent of the declarant's knowledge, after inquiry of the master 125.25 association, any unsatisfied judgments or lawsuits to which the 125.26 master association is a party, and the status of those lawsuits 125.27 which are material to the master association; (xiii) a 125.28 description of any insurance coverage provided for the benefit 125.29 of its members by the master association; and (xiv) any current 125.30 or expected fees or charges, other than assessments by the 125.31 master association, to be paid by members of the master 125.32 association for the use of anyimprovements,facilitiesor125.33amenities in which they have or may have an interestintended 125.34 for the benefit of the members; 125.35 (21) a statement as to whether the unit will be 125.36 substantially completed at the time of conveyance to a 126.1 purchaser, and if not substantially completed, who is 126.2 responsible to complete and pay for the construction of the 126.3 unit; 126.4 (22) a copy of the declaration and any amendments thereto, 126.5 (exclusive of the CIC plat), any other recorded covenants, 126.6 conditions restrictions, and reservations affecting the common 126.7 interest community; the articles of incorporation, bylaws and 126.8 any rules or regulations of the association; any agreement 126.9 excluding or modifying any implied warranties; any agreement 126.10 reducing the statute of limitations for the enforcement of 126.11 warranties; any contracts or leases to be signed by purchaser at 126.12 closing; and a brief narrative description of any contracts or 126.13 leases that are or may be subject to cancellation by the 126.14 association under section 515B.3-105; and 126.15 (23) any current balance sheet for the association; a 126.16 projected annual budget for the association for the year in 126.17 which the first unit is conveyed to a purchaser, and thereafter 126.18 the current annual budget of the association; and a statement 126.19 identifying the party responsible for the preparation of the 126.20 budget. The budget shall include, without limitation: (i) a 126.21 statement of the amount included in the budget as a reserve for 126.22 maintenance, repair and replacement; (ii) a statement of any 126.23 other reserves; (iii) the projected common expense for each 126.24 category of expenditures for the association; and (iv) the 126.25 projected monthly common expense assessment for each type of 126.26 unit. 126.27 (b) A declarant shall promptly amend the disclosure 126.28 statement to reflect any material change in the information 126.29 required by this chapter. 126.30 (c) The master association, within ten days after a request 126.31 by a declarant, or any holder of declarant rights, or the 126.32 authorized representative of any of them, shall furnish the 126.33 information required to be provided by subsection (a)(20). A 126.34 declarant or other person who provides information pursuant to 126.35 subsection (a)(20) is not liable to the purchaser for any 126.36 erroneous information if the declarant or other person: (i) is 127.1 not an affiliate of or related in any way to a person authorized 127.2 to appoint the master association board pursuant to section 127.3 515B.2-121(h)(c)(3), and (ii) has no actual knowledge that the 127.4 information is incorrect. 127.5 Sec. 27. Minnesota Statutes 1998, section 515B.4-106, is 127.6 amended to read: 127.7 515B.4-106 [PURCHASER'S RIGHT TO CANCEL.] 127.8 (a) A person required to deliver a disclosure statement 127.9 pursuant to section 515B.4-101(b) shall provide at least one of 127.10 the purchasers of the unit with a copy of the disclosure 127.11 statement and all amendments thereto before conveyance of the 127.12 unit. If a purchaser is not given a disclosure statement more 127.13 than15ten days before execution of the purchase agreement, the 127.14 purchaser may, before conveyance, cancel the purchase agreement 127.15 within15ten days after first receiving the disclosure 127.16 statement. If a purchaser is given the disclosure statement more 127.17 than15ten days before execution ofathe purchase agreement 127.18for the unit, the purchaser may not cancel the purchase 127.19 agreement pursuant to this section. Except as expressly 127.20 provided in this chapter, the ten-day rescission period cannot 127.21 be waived. 127.22 (b) If an amendment to the disclosure statement materially 127.23 and adversely affects a purchaser, then the purchaser shall have 127.24 15 days after delivery of the amendment to cancel the purchase 127.25 agreement in accordance with this section. 127.26 (c) If a purchaser elects to cancel a purchase agreement 127.27 pursuant to this section, the purchaser may do so by giving 127.28 notice thereof pursuant to section 515B.1-115. Cancellation is 127.29 without penalty, and all payments made by the purchaser before 127.30 cancellation shall be refunded promptly. Notwithstanding 127.31 anything in this section to the contrary, the purchaser's 127.32 cancellation rights under this section terminate upon the 127.33 purchaser's acceptance of a conveyance of the unit. 127.34 (d) If a declarant obligated to deliver a disclosure 127.35 statement fails to deliver to the purchaser a disclosure 127.36 statement which substantially complies with this chapter, the 128.1 declarant shall be liable to the purchaser in the amount of 128.2 $1,000, in addition to any damages or other amounts recoverable 128.3 under this chapter or otherwise. Any action brought under this 128.4 subsection shall be commenced within the time period specified 128.5 in section 515B.4-115, subsection (a). 128.6 Sec. 28. Minnesota Statutes 1998, section 515B.4-107, is 128.7 amended to read: 128.8 515B.4-107 [RESALE OF UNITS.] 128.9 (a) In the event of a resale of a unit by a unit owner 128.10 other than a declarant, unless exempt under section 128.11 515B.4-101(c), the unit owner shall furnish to a purchaser, 128.12 before execution of any purchase agreement for a unit or 128.13 otherwise before conveyance, the following documents relating to 128.14 the association or to the master association, if applicable: 128.15 (1) copies of the declaration (other than any CIC plat), 128.16 the articles of incorporation and bylaws, any rules and 128.17 regulations, and any amendments thereto; 128.18 (2) the organizational and operating documents relating to 128.19 the master association, if any; and 128.20 (3) a resale disclosure certificate from the association 128.21 dated not more than 90 days prior to the date of the purchase 128.22 agreement or the date of conveyance, whichever is earlier, 128.23 containing the information set forth in subsection (b). 128.24 (b) The resale disclosure certificate shall contain the 128.25 following information: 128.26 (1) a statement disclosing any right of first refusal or 128.27 other restraint on the free alienability of the unit contained 128.28 in the declaration, articles of incorporation, bylaws, rules and 128.29 regulations, or any amendment thereof; 128.30 (2) a statement setting forththe amount of the monthly128.31installments of common expense assessments, including special128.32assessments, if any, and the amount of any due and unpaid128.33regular or special assessments, fines or other charges payable128.34with respect to the unit;: 128.35 (i) the installments of annual common expense assessments 128.36 payable with respect to the unit, and the payment schedule; 129.1 (ii) the installments of special common expense 129.2 assessments, if any, payable with respect to the unit, and the 129.3 payment schedule; and 129.4 (iii) any plan approved by the association for levying 129.5 certain common expense assessments against fewer than all the 129.6 units pursuant to section 515B.3-115, subsection (h), and the 129.7 amount and payment schedule for any such common expenses payable 129.8 with respect to the unit; 129.9 (3) a statement of any fees or charges other than 129.10 assessments payable by unit owners; 129.11 (4) a statement of anycapitalextraordinary expenditures 129.12 approved by the association, and not yet assessed, for the 129.13 current and two succeeding fiscal years; 129.14 (5) a statement of the amount of any reserves for 129.15 maintenance, repair or replacement and of any portions of those 129.16 reserves designated by the association for any specified 129.17 projects or uses; 129.18 (6) the most recent regularly prepared balance sheet and 129.19 income and expense statement of the association; 129.20 (7) the current budget of the association; 129.21 (8) a statement of any unsatisfied judgments against the 129.22 association and the status of any pending suits in which the 129.23 association is party; 129.24 (9) a detailed description of the insurance coverage 129.25 provided for the benefit of unit owners, includingany fixtures,129.26decorating items or construction items within a unit which are129.27not required to bea statement as to which, if any, of the items 129.28 referred to in section 515B.3-113, subsection (b), are insured 129.29 by the association; 129.30 (10) a statement as to whether the board has notified the 129.31 unit owner (i) that any alterations or improvements to the unit 129.32 or to the limited common elements assigned thereto violate any 129.33 provision of the declaration or (ii) that the unit is in 129.34 violation of any governmental statute, ordinance, code or 129.35 regulation;and129.36 (11) a statement of the remaining term of any leasehold 130.1 estate affecting the common interest community and the 130.2 provisions governing any extension or renewal thereof; and 130.3 (12) any other matters affecting the unit or the unit 130.4 owner's obligations with respect to the unit which the 130.5 association deems material. 130.6 (c) If the association is subject to a master association 130.7 to which has been delegated the association's powers under 130.8 section 515B.3-102(a)(2), then the financial information 130.9 required to be disclosed under subsection (b) may be disclosed 130.10 on a consolidated basis. 130.11 (d) The association, within ten days after a request by a 130.12 unit owner, or the unit owner's authorized representative, shall 130.13 furnish the certificate required in subsection (a). The 130.14 association may charge a reasonable fee for furnishing the 130.15 certificate and any association documents related thereto. A 130.16 unit owner providing a certificate pursuant to subsection (a) is 130.17 not liable to the purchaser for any erroneous information 130.18 provided by the association and included in the certificate. 130.19 (e) A purchaser is not liable for any unpaid common expense 130.20 assessments, including special assessments, if any, not set 130.21 forth in the certificate required in subsection (a). A 130.22 purchaser is not liable for the amount by which the annual or 130.23 special assessments exceed the amount of annual or special 130.24 assessments stated in the certificate for assessments payable in 130.25 the year in which the certificate was given, except to the 130.26 extent of any increases subsequently approved in accordance with 130.27 the declaration or bylaws. A unit owner is not liable to a 130.28 purchaser for the failure of the association to provide the 130.29 certificate, or a delay by the association in providing the 130.30 certificate in a timely manner. 130.31 Sec. 29. Minnesota Statutes 1998, section 515B.4-108, is 130.32 amended to read: 130.33 515B.4-108 [PURCHASER'S RIGHT TO CANCEL RESALE.] 130.34 (a) Unless a purchaser is given the information required to 130.35 be delivered by section 515B.4-107 more than15ten days prior 130.36 to the execution of the purchase agreement for the unit the 131.1 purchaser may, prior to the conveyance, cancel the purchase 131.2 agreement within15ten days after receiving the 131.3 information. Except as expressly provided in this chapter, the 131.4 ten-day rescission period cannot be waived. 131.5 (b) A purchaser who elects to cancel a purchase agreement 131.6 pursuant to subsection (a), may do so by hand delivering notice 131.7 thereof or mailing notice by postage prepaid United States mail 131.8 to the seller or the agent. Cancellation is without penalty and 131.9 all payments made by the purchaser shall be refunded promptly. 131.10 Sec. 30. Minnesota Statutes 1998, section 515B.4-111, is 131.11 amended to read: 131.12 515B.4-111 [CONVERSION PROPERTY.] 131.13 (a)A declarant of a common interest community containing131.14conversion property, shall give the occupants of residential131.15units in the conversion property notice of the conversion no131.16later than 120 days before they are required to vacate.A unit 131.17 owner of a unit occupied for residential use in a common 131.18 interest community containing conversion property shall not, for 131.19 a period of one year following the recording of the declaration 131.20 creating the common interest community, require any occupant of 131.21 the unit to vacate the unit unless the unit owner gives notice 131.22 to the occupant in the manner described in this section. The 131.23 notice shall be given no later than 120 days before the occupant 131.24 is required to vacate the unit. The notice shall begiven by131.25 sufficient as to all occupants of a unit if it is 131.26 handdeliveringdelivered ormailing one notice to each131.27residential unitmailed to the unit to be vacated, addressed to 131.28 the occupants thereof. If the holder of the lessee's interest 131.29 in the unit has given the unit ownerof the buildingan address 131.30 different than that of the unit, then the notice shall also be 131.31 given to the holder of the lessee's interest at the designated 131.32 address. The notice shall satisfy the following requirements: 131.33 (1) The notice shall set forth generally the rights 131.34 conferred by this section. 131.35 (2) The notice shall have attached to the notice intended 131.36 for the holder of the lessee's interest a form of purchase 132.1 agreement setting forth the terms of sale contemplated by 132.2 subsection (d) and a statement of any significant restrictions 132.3 on the use and occupancy of the unit to be imposed by the 132.4 declarant. 132.5 (3) The notice shall state that the occupants of the 132.6 residential unit may demand to be given 60 additional days 132.7 before being required to vacate, if any of them, or any person 132.8 residing with them, is (i) 62 years of age or older, (ii) a 132.9 person with a disability as defined in section 268A.01, or (iii) 132.10 a minor child on the date the notice is given. This demand must 132.11 be in writing, contain reasonable proof of qualification, and be 132.12 given to the declarant within 30 days after the notice of 132.13 conversion is delivered or mailed. 132.14 (4) The notice shall be contained in an envelope upon which 132.15 the following shall be boldly printed: "Notice of Conversion." 132.16 (b)No occupant of a unit in a conversion132.17propertyNotwithstanding subsection (a), an occupant may be 132.18 required to vacate a unit upon less than 120 days' notice,132.19exceptby reason of nonpayment of rent, utilities or other 132.20 monetary obligations, violations of law, waste, or conduct that 132.21 disturbs othertenants'occupants' peaceful enjoyment of the 132.22 premises.Nor mayThe terms of the tenancy may not be altered 132.23 duringthatthe notice period, except thata tenantthe holder 132.24 of the lessee's interest or other party in possession may vacate 132.25 and terminate theleasetenancy upon one month's written notice 132.26 to the declarant. Nothing in this section prevents 132.27 thedeclarantunit owner and any occupant from agreeing toan132.28extension of the tenancya right of occupancy on a 132.29 month-to-month basis beyond the 120-day notice period, or to an 132.30 earlier termination of thetenancyright of occupancy. 132.31 (c) No repair work or remodeling may be commenced or 132.32 undertaken in the occupied units or common areas of the building 132.33 during the notice period, unless reasonable precautions are 132.34 taken to ensure the safety and security of the occupants. 132.35 (d) For 60 days after delivery or mailing of the notice 132.36 described in subsection (a), the holder of the lessee's interest 133.1 in the unit on the date the notice is mailed or delivered shall 133.2 have an option to purchase that unit on the terms set forth in 133.3 the purchase agreement attached to the notice. The purchase 133.4 agreement shall contain no terms or provisions which violate any 133.5 state or federal law relating to discrimination in housing. If 133.6 the holder of the lessee's interest fails to purchase the unit 133.7 during that 60-day period, thedeclarantunit owner may not 133.8 offer to dispose of an interest in that unit during the 133.9 following 180 days at a price or on terms more favorable to the 133.10 offeree than the price or terms offered to the holder. This 133.11 subsection does not apply to any unit in a conversion building 133.12 if that unit will be restricted exclusively to nonresidential 133.13 use or if the boundaries of the converted unit do not 133.14 substantially conform to the boundaries of the residential unit 133.15 before conversion. 133.16 (e) If adeclarantunit owner, in violation of subsection 133.17 (b), conveys a unit to a purchaser for value who has no 133.18 knowledge of the violation, the recording of the deed conveying 133.19 the unit or, in a cooperative, the conveyance of the right to 133.20 possession of the unit, extinguishes any right a holder of a 133.21 lessee's interest who is not in possession of the unit may have 133.22 under subsection (d) to purchase that unit, but the conveyance 133.23 does not affect the right of the holder to recover damages from 133.24 thedeclarantunit owner for a violation of subsection (d). 133.25 (f) If a notice of conversion specifies a date by which a 133.26 unit or proposed unit must be vacated or otherwise complies with 133.27 the provisions of chapter 566, the notice also constitutes a 133.28 notice to vacate specified by that statute. 133.29 (g) Nothing in this section permitstermination of a lease133.30by a declaranta unit owner to terminate a lease in violation of 133.31 its terms. 133.32 (h) Failure to give notice as required by this section is a 133.33 defense to an action for possession until a notice complying 133.34 with this section is given and the applicable notice period 133.35 terminates. 133.36 Sec. 31. Minnesota Statutes 1998, section 515B.4-115, is 134.1 amended to read: 134.2 515B.4-115 [STATUTE OF LIMITATIONS FOR WARRANTIES.] 134.3 (a) A judicial proceeding for breach of an obligation 134.4 arising under section 515B.4-106(d), shall be commenced within 134.5 six months after the conveyance of the unit. 134.6 (b) A judicial proceeding for breach of an obligation 134.7 arising under section 515B.4-112 or 515B.4-113 shall be 134.8 commenced within six years after the cause of action accrues, 134.9 but the parties may agree to reduce the period of limitation to 134.10 not less than two years. With respect to a unit that may be 134.11 occupied for residential use, an agreement to reduce the period 134.12 of limitation must be evidenced by an instrument separate from 134.13 the purchase agreement signed by the purchaser. 134.14 (c) Subject to subsection (d), a cause of action under 134.15 section 515B.4-112 or 515B.4-113, regardless of the purchasers 134.16 lack of knowledge of the breach, accrues: 134.17 (1) as to a unit, at the earlier of the time of conveyance 134.18 of the unit by the declarant to a bona fide purchaser of the 134.19 unit other than an affiliate of a declarant, or the time the 134.20 purchaser enters into possession of the unit; and 134.21 (2) as to each common element, the latest of (i) the time 134.22 the common element is completed, (ii) the time the first unit in 134.23 thecondominiumcommon interest community is conveyed to a bona 134.24 fide purchaser, or if the common element is located on property 134.25 that is additional real estate at the time the first unit 134.26 therein is conveyed to a bona fide purchaser, or (iii) the 134.27 termination of the period of declarant control. 134.28 (d) If a warranty explicitly extends to future performance 134.29 or duration of any improvement or component of the common 134.30 interest community, the cause of action accrues at the time the 134.31 breach is discovered or at the end of the period for which the 134.32 warranty explicitly extends, whichever is earlier. 134.33 ARTICLE 3 134.34 Section 1. Minnesota Statutes 1998, section 47.20, 134.35 subdivision 2, is amended to read: 134.36 Subd. 2. [DEFINITIONS.] For the purposes of this section 135.1 the terms defined in this subdivision have the meanings given 135.2 them: 135.3 (1) "Actual closing costs" mean reasonable charges for or 135.4 sums paid for the following, whether or not retained by the 135.5 mortgagee or lender: 135.6 (a) Any insurance premiums including but not limited to 135.7 premiums for title insurance, fire and extended coverage 135.8 insurance, flood insurance, and private mortgage insurance, but 135.9 excluding any charges or sums retained by the mortgagee or 135.10 lender as self-insured retention. 135.11 (b) Abstracting, title examination and search, and 135.12 examination of public records. 135.13 (c) The preparation and recording of any or all documents 135.14 required by law or custom for closing a conventional or 135.15 cooperative apartment loan. 135.16 (d) Appraisal and survey of real property securing a 135.17 conventional loan or real property owned by a cooperative 135.18 apartment corporation of which a share or shares of stock or a 135.19 membership certificate or certificates are to secure a 135.20 cooperative apartment loan. 135.21 (e) A single service charge, which includes any 135.22 consideration, not otherwise specified herein as an "actual 135.23 closing cost" paid by the borrower and received and retained by 135.24 the lender for or related to the acquisition, making, 135.25 refinancing or modification of a conventional or cooperative 135.26 apartment loan, and also includes any consideration received by 135.27 the lender for making a borrower's interest rate commitment or 135.28 for making a borrower's loan commitment, whether or not an 135.29 actual loan follows the commitment. The term service charge 135.30 does not include forward commitment fees. The service charge 135.31 shall not exceed one percent of the original bona fide principal 135.32 amount of the conventional or cooperative apartment loan, except 135.33 that in the case of a construction loan, the service charge 135.34 shall not exceed two percent of the original bona fide principal 135.35 amount of the loan. That portion of the service charge imposed 135.36 because the loan is a construction loan shall be itemized and a 136.1 copy of the itemization furnished the borrower. A lender shall 136.2 not collect from a borrower the additional one percent service 136.3 charge permitted for a construction loan if it does not perform 136.4 the service for which the charge is imposed or if third parties 136.5 perform and charge the borrower for the service for which the 136.6 lender has imposed the charge. 136.7 (f) Charges and fees necessary for or related to the 136.8 transfer of real or personal property securing a conventional or 136.9 cooperative apartment loan or the closing of a conventional or 136.10 cooperative apartment loan paid by the borrower and received by 136.11 any party other than the lender. 136.12 (2) "Contract for deed" means an executory contract for the 136.13 conveyance of real estate, the original principal amount of 136.14 which is less than $100,000. A commitment for a contract for 136.15 deed shall include an executed purchase agreement or earnest 136.16 money contract wherein the seller agrees to finance any part or 136.17 all of the purchase price by a contract for deed. 136.18 (3) "Conventional loan" means a loan or advance of credit, 136.19 other than a loan or advance of credit made by a credit union or 136.20 made pursuant to section 334.011, to a noncorporate borrower in 136.21 an original principal amount of less than $100,000, secured by a 136.22 mortgage upon real property containing one or more residential 136.23 units or upon which at the time the loan is made it is intended 136.24 that one or more residential units are to be constructed, and 136.25 which is not insured or guaranteed by the secretary of housing 136.26 and urban development, by the administrator of veterans affairs, 136.27 or by the administrator of the farmers home administration, and 136.28 which is not made pursuant to the authority granted in 136.29 subdivision 1, clause (3) or (4). The term mortgage does not 136.30 include contracts for deed or installment land contracts. 136.31 (4) "Cooperative apartment loan" means a loan or advance of 136.32 credit, other than a loan or advance of credit made by a credit 136.33 union or made pursuant to section 334.011, to a noncorporate 136.34 borrower in an original principal amount of less than $100,000, 136.35 secured by a security interest on a share or shares of stock or 136.36 a membership certificate or certificates issued to a stockholder 137.1 or member by a cooperative apartment corporation, which may be 137.2 accompanied by an assignment by way of security of the 137.3 borrower's interest in the proprietary lease or occupancy 137.4 agreement in property issued by the cooperative apartment 137.5 corporation and which is not insured or guaranteed by the 137.6 secretary of housing and urban development, by the administrator 137.7 of veterans affairs, or by the administrator of the farmers home 137.8 administration. 137.9 (5) "Cooperative apartment corporation" means a corporation 137.10 or cooperative organized under chapter 308A or 317A, the 137.11 shareholders or members of which are entitled, solely by reason 137.12 of their ownership of stock or membership certificates in the 137.13 corporation or association, to occupy one or more residential 137.14 units in a building owned or leased by the corporation or 137.15 association. 137.16 (6) "Forward commitment fee" means a fee or other 137.17 consideration paid to a lender for the purpose of securing a 137.18 binding forward commitment by or through the lender to make 137.19 conventional loans to two or more credit worthy purchasers, 137.20 including future purchasers, of residential units, or a fee or 137.21 other consideration paid to a lender for the purpose of securing 137.22 a binding forward commitment by or through the lender to make 137.23 conventional loans to two or more credit worthy purchasers, 137.24 including future purchasers, ofapartments as defined in section137.25515.02units to be created out of existing structures pursuant 137.26 tothe Minnesota Condominium Actchapter 515B, or a fee or other 137.27 consideration paid to a lender for the purpose of securing a 137.28 binding forward commitment by or through the lender to make 137.29 cooperative apartment loans to two or more credit worthy 137.30 purchasers, including future purchasers, of a share or shares of 137.31 stock or a membership certificate or certificates in a 137.32 cooperative apartment corporation; provided, that the forward 137.33 commitment rate of interest does not exceed the maximum lawful 137.34 rate of interest effective as of the date the forward commitment 137.35 is issued by the lender. 137.36 (7) "Borrower's interest rate commitment" means a binding 138.1 commitment made by a lender to a borrower wherein the lender 138.2 agrees that, if a conventional or cooperative apartment loan is 138.3 made following issuance of and pursuant to the commitment, the 138.4 conventional or cooperative apartment loan shall be made at a 138.5 rate of interest not in excess of the rate of interest agreed to 138.6 in the commitment, provided that the rate of interest agreed to 138.7 in the commitment is not in excess of the maximum lawful rate of 138.8 interest effective as of the date the commitment is issued by 138.9 the lender to the borrower. 138.10 (8) "Borrower's loan commitment" means a binding commitment 138.11 made by a lender to a borrower wherein the lender agrees to make 138.12 a conventional or cooperative apartment loan pursuant to the 138.13 provisions, including the interest rate, of the commitment, 138.14 provided that the commitment rate of interest does not exceed 138.15 the maximum lawful rate of interest effective as of the date the 138.16 commitment is issued and the commitment when issued and agreed 138.17 to shall constitute a legally binding obligation on the part of 138.18 the mortgagee or lender to make a conventional or cooperative 138.19 apartment loan within a specified time period in the future at a 138.20 rate of interest not exceeding the maximum lawful rate of 138.21 interest effective as of the date the commitment is issued by 138.22 the lender to the borrower; provided that a lender who issues a 138.23 borrower's loan commitment pursuant to the provisions of a 138.24 forward commitment is authorized to issue the borrower's loan 138.25 commitment at a rate of interest not to exceed the maximum 138.26 lawful rate of interest effective as of the date the forward 138.27 commitment is issued by the lender. 138.28 (9) "Finance charge" means the total cost of a conventional 138.29 or cooperative apartment loan including extensions or grant of 138.30 credit regardless of the characterization of the same and 138.31 includes interest, finders fees, and other charges levied by a 138.32 lender directly or indirectly against the person obtaining the 138.33 conventional or cooperative apartment loan or against a seller 138.34 of real property securing a conventional loan or a seller of a 138.35 share or shares of stock or a membership certificate or 138.36 certificates in a cooperative apartment corporation securing a 139.1 cooperative apartment loan, or any other party to the 139.2 transaction except any actual closing costs and any forward 139.3 commitment fee. The finance charges plus the actual closing 139.4 costs and any forward commitment fee, charged by a lender shall 139.5 include all charges made by a lender other than the principal of 139.6 the conventional or cooperative apartment loan. The finance 139.7 charge, with respect to wraparound mortgages, shall be computed 139.8 based upon the face amount of the wraparound mortgage note, 139.9 which face amount shall consist of the aggregate of those funds 139.10 actually advanced by the wraparound lender and the total 139.11 outstanding principal balances of the prior note or notes which 139.12 have been made a part of the wraparound mortgage note. 139.13 (10) "Lender" means any person making a conventional or 139.14 cooperative apartment loan, or any person arranging financing 139.15 for a conventional or cooperative apartment loan. The term also 139.16 includes the holder or assignee at any time of a conventional or 139.17 cooperative apartment loan. 139.18 (11) "Loan yield" means the annual rate of return obtained 139.19 by a lender over the term of a conventional or cooperative 139.20 apartment loan and shall be computed as the annual percentage 139.21 rate as computed in accordance with sections 226.5 (b), (c), and 139.22 (d) of Regulation Z, Code of Federal Regulations, title 12, 139.23 section 226, but using the definition of finance charge provided 139.24 for in this subdivision. For purposes of this section, with 139.25 respect to wraparound mortgages, the rate of interest or loan 139.26 yield shall be based upon the principal balance set forth in the 139.27 wraparound note and mortgage and shall not include any interest 139.28 differential or yield differential between the stated interest 139.29 rate on the wraparound mortgage and the stated interest rate on 139.30 the one or more prior mortgages included in the stated loan 139.31 amount on a wraparound note and mortgage. 139.32 (12) "Person" means an individual, corporation, business 139.33 trust, partnership or association or any other legal entity. 139.34 (13) "Residential unit" means any structure used 139.35 principally for residential purposes or any portion thereof, and 139.36 includes a unitin a townhouse or planned unit development, a140.1condominium apartmentin a common interest community, a nonowner 140.2 occupied residence, and any other type of residence regardless 140.3 of whether the unit is used as a principal residence, secondary 140.4 residence, vacation residence, or residence of some other 140.5 denomination. 140.6 (14) "Vendor" means any person or persons who agree to sell 140.7 real estate and finance any part or all of the purchase price by 140.8 a contract for deed. The term also includes the holder or 140.9 assignee at any time of the vendor's interest in a contract for 140.10 deed. 140.11 Sec. 2. Minnesota Statutes 1998, section 51A.02, 140.12 subdivision 29, is amended to read: 140.13 Subd. 29. [HOME PROPERTY.] "Home property" means real 140.14 estate on which there is located, or will be located pursuant to 140.15 a real estate loan, either a structure designed for residential 140.16 use by one family or asingle condominiumunit in a residential 140.17 common interest community,or unit in a residential cooperative,140.18 including all elements pertinent thereto, designed for 140.19 residential use by one family in a multiple dwelling unit 140.20 structure or complex, and includes fixtures, furnishings and 140.21 equipment. 140.22 Sec. 3. Minnesota Statutes 1998, section 60C.09, 140.23 subdivision 1, is amended to read: 140.24 Subdivision 1. [DEFINITION.] A covered claim is any unpaid 140.25 claim, including one for unearned premium, which: 140.26 (a)(1) Arises out of and is within the coverage of an 140.27 insurance policy issued by a member insurer if the insurer 140.28 becomes an insolvent insurer after April 30, 1979; or 140.29 (2) Would be within the coverage of an extended reporting 140.30 endorsement to a claims-made insurance policy if insolvency had 140.31 not prevented the member insurer from fulfilling its obligation 140.32 to issue the endorsement, if: 140.33 (i) the claims-made policy contained a provision affording 140.34 the insured the right to purchase a reporting endorsement; 140.35 (ii) coverage will be no greater than if a reporting 140.36 endorsement had been issued; 141.1 (iii) the insured has not purchased other insurance which 141.2 applies to the claim; and 141.3 (iv) the insured's deductible under the policy is increased 141.4 by an amount equal to the premium for the reporting endorsement, 141.5 as provided in the insured's claims-made policy, or if not so 141.6 provided, then as established by a rate service organization. 141.7 (b) Arises out of a class of business which is not excepted 141.8 from the scope of this chapter by section 60C.02; and 141.9 (c) Is made by: 141.10 (i) A policyholder, or an insured beneficiary under a 141.11 policy, who, at the time of the insured event, was a resident of 141.12 this state; or 141.13 (ii) A person designated in the policy as having an 141.14 insurable interest in or related to property situated in this 141.15 state at the time of the insured event; or 141.16 (iii) An obligee or creditor under any surety bond, who, at 141.17 the time of default by the principal debtor or obligor, was a 141.18 resident of this state; or 141.19 (iv) A third party claimant under a liability policy or 141.20 surety bond, if: (a) the insured or the third party claimant 141.21 was a resident of this state at the time of the insured event; 141.22 (b) the claim is for bodily or personal injuries suffered in 141.23 this state by a person who when injured was a resident of this 141.24 state; or (c) the claim is for damages to real property situated 141.25 in this state at the time of damage; or 141.26 (v) A direct or indirect assignee of a person who except 141.27 for the assignment might have claimed under item (i), (ii), or 141.28 (iii). 141.29 For purposes of paragraph (c), item (ii), unit owners of 141.30condominiums, townhouses, or cooperativesunits in a common 141.31 interest community are considered as having an insurable 141.32 interest. 141.33 A covered claim also includes any unpaid claim which arises 141.34 or exists within 30 days after the time of entry of a final 141.35 order of liquidation with a finding of insolvency by a court of 141.36 competent jurisdiction unless prior thereto the insured replaces 142.1 the policy or causes its cancellation or the policy expires on 142.2 its expiration date. A covered claim does not include claims 142.3 filed with the guaranty fund after the final date set by the 142.4 court for the filing of claims except for workers' compensation 142.5 claims that have met the time limitations and other requirements 142.6 of chapter 176 and excused late filings permitted under section 142.7 60B.37. 142.8 Sec. 4. Minnesota Statutes 1998, section 83.20, 142.9 subdivision 11, is amended to read: 142.10 Subd. 11. "Subdivision" or "subdivided land" means any 142.11 real estate, wherever located, improved or unimproved, which is 142.12 divided or proposed to be divided for the purpose of sale or 142.13 lease, including sales or leases of any timeshare interest, 142.14housing cooperative, condominiumunit in a common interest 142.15 community, or similar interest in real estate. 142.16 Sec. 5. Minnesota Statutes 1998, section 83.20, 142.17 subdivision 14, is amended to read: 142.18 Subd. 14. "Improved lots" means lots which have or will 142.19 have within a two-year period from the date of purchase, a 142.20 permanent residential structure thereon, and are not devoted to 142.21 or used as a time share interest,cooperative apartment142.22corporation, condominiumunit in a common interest community, or 142.23 similar interest in real estate. 142.24 Sec. 6. Minnesota Statutes 1998, section 103I.235, 142.25 subdivision 1, is amended to read: 142.26 Subdivision 1. [DISCLOSURE OF WELLS TO BUYER.] (a) Before 142.27 signing an agreement to sell or transfer real property, the 142.28 seller must disclose in writing to the buyer information about 142.29 the status and location of all known wells on the property, by 142.30 delivering to the buyer either a statement by the seller that 142.31 the seller does not know of any wells on the property, or a 142.32 disclosure statement indicating the legal description and 142.33 county, and a map drawn from available information showing the 142.34 location of each well to the extent practicable. In the 142.35 disclosure statement, the seller must indicate, for each well, 142.36 whether the well is in use, not in use, or sealed. 143.1 (b) At the time of closing of the sale, the disclosure 143.2 statement information, name and mailing address of the buyer, 143.3 and the quartile, section, township, and range in which each 143.4 well is located must be provided on a well disclosure 143.5 certificate signed by the seller or a person authorized to act 143.6 on behalf of the seller. 143.7 (c) A well disclosure certificate need not be provided if 143.8 the seller does not know of any wells on the property and the 143.9 deed or other instrument of conveyance contains the statement: 143.10 "The Seller certifies that the Seller does not know of any wells 143.11 on the described real property." 143.12 (d) If a deed is given pursuant to a contract for deed, the 143.13 well disclosure certificate required by this subdivision shall 143.14 be signed by the buyer or a person authorized to act on behalf 143.15 of the buyer. If the buyer knows of no wells on the property, a 143.16 well disclosure certificate is not required if the following 143.17 statement appears on the deed followed by the signature of the 143.18 grantee or, if there is more than one grantee, the signature of 143.19 at least one of the grantees: "The Grantee certifies that the 143.20 Grantee does not know of any wells on the described real 143.21 property." The statement and signature of the grantee may be on 143.22 the front or back of the deed or on an attached sheet and an 143.23 acknowledgment of the statement by the grantee is not required 143.24 for the deed to be recordable. 143.25 (e) This subdivision does not apply to the sale, exchange, 143.26 or transfer of real property: 143.27 (1) that consists solely of a sale or transfer of severed 143.28 mineral interests; or 143.29 (2) that consists of an individual condominium unit as 143.30 described in chapters 515 and515A515B. 143.31 (f) For an area owned in common under chapter 515 or515A143.32 515B the association or other responsible person must report to 143.33 the commissioner by July 1, 1992, the location and status of all 143.34 wells in the common area. The association or other responsible 143.35 person must notify the commissioner within 30 days of any change 143.36 in the reported status of wells. 144.1 (g) For real property sold by the state under section 144.2 92.67, the lessee at the time of the sale is responsible for 144.3 compliance with this subdivision. 144.4 (h) If the seller fails to provide a required well 144.5 disclosure certificate, the buyer, or a person authorized to act 144.6 on behalf of the buyer, may sign a well disclosure certificate 144.7 based on the information provided on the disclosure statement 144.8 required by this section or based on other available information. 144.9 (i) A county recorder or registrar of titles may not record 144.10 a deed or other instrument of conveyance dated after October 31, 144.11 1990, for which a certificate of value is required under section 144.12 272.115, or any deed or other instrument of conveyance dated 144.13 after October 31, 1990, from a governmental body exempt from the 144.14 payment of state deed tax, unless the deed or other instrument 144.15 of conveyance contains the statement made in accordance with 144.16 paragraph (c) or (d) or is accompanied by the well disclosure 144.17 certificate containing all the information required by paragraph 144.18 (b) or (d). The county recorder or registrar of titles must not 144.19 accept a certificate unless it contains all the required 144.20 information. The county recorder or registrar of titles shall 144.21 note on each deed or other instrument of conveyance accompanied 144.22 by a well disclosure certificate that the well disclosure 144.23 certificate was received. The notation must include the 144.24 statement "No wells on property" if the disclosure certificate 144.25 states there are no wells on the property. The well disclosure 144.26 certificate shall not be filed or recorded in the records 144.27 maintained by the county recorder or registrar of titles. After 144.28 noting "No wells on property" on the deed or other instrument of 144.29 conveyance, the county recorder or registrar of titles shall 144.30 destroy or return to the buyer the well disclosure certificate. 144.31 The county recorder or registrar of titles shall collect from 144.32 the buyer or the person seeking to record a deed or other 144.33 instrument of conveyance, a fee of $20 for receipt of a 144.34 completed well disclosure certificate. By the tenth day of each 144.35 month, the county recorder or registrar of titles shall transmit 144.36 the well disclosure certificates to the commissioner of health. 145.1 By the tenth day after the end of each calendar quarter, the 145.2 county recorder or registrar of titles shall transmit to the 145.3 commissioner of health $17.50 of the fee for each well 145.4 disclosure certificate received during the quarter. The 145.5 commissioner shall maintain the well disclosure certificate for 145.6 at least six years. The commissioner may store the certificate 145.7 as an electronic image. A copy of that image shall be as valid 145.8 as the original. 145.9 (j) No new well disclosure certificate is required under 145.10 this subdivision if the buyer or seller, or a person authorized 145.11 to act on behalf of the buyer or seller, certifies on the deed 145.12 or other instrument of conveyance that the status and number of 145.13 wells on the property have not changed since the last previously 145.14 filed well disclosure certificate. The following statement, if 145.15 followed by the signature of the person making the statement, is 145.16 sufficient to comply with the certification requirement of this 145.17 paragraph: "I am familiar with the property described in this 145.18 instrument and I certify that the status and number of wells on 145.19 the described real property have not changed since the last 145.20 previously filed well disclosure certificate." The 145.21 certification and signature may be on the front or back of the 145.22 deed or on an attached sheet and an acknowledgment of the 145.23 statement is not required for the deed or other instrument of 145.24 conveyance to be recordable. 145.25 (k) The commissioner in consultation with county recorders 145.26 shall prescribe the form for a well disclosure certificate and 145.27 provide well disclosure certificate forms to county recorders 145.28 and registrars of titles and other interested persons. 145.29 (l) Failure to comply with a requirement of this 145.30 subdivision does not impair: 145.31 (1) the validity of a deed or other instrument of 145.32 conveyance as between the parties to the deed or instrument or 145.33 as to any other person who otherwise would be bound by the deed 145.34 or instrument; or 145.35 (2) the record, as notice, of any deed or other instrument 145.36 of conveyance accepted for filing or recording contrary to the 146.1 provisions of this subdivision. 146.2 Sec. 7. Minnesota Statutes 1998, section 238.22, 146.3 subdivision 3, is amended to read: 146.4 Subd. 3. [MULTIPLE DWELLING COMPLEX.] "Multiple dwelling 146.5 complex" means a site, lot, field, or tract of land or water, 146.6 other than acondominium, cooperativecommon interest community, 146.7 or mobile home park, whether occupied or under construction, 146.8 containing more than four dwelling units. 146.9 Sec. 8. Minnesota Statutes 1998, section 273.124, 146.10 subdivision 2, is amended to read: 146.11 Subd. 2. [TOWNHOUSESPLANNED COMMUNITIES; COMMONAREAS146.12 ELEMENTS; CONDOMINIUMS; COOPERATIVES.] (a) The total value 146.13 oftownhouse propertyplanned community common elements, as 146.14 defined in chapter 515B, including the value added as provided 146.15 in this paragraph, must have the benefit of homestead treatment 146.16 or other special classification if thetownhouseunit in the 146.17 planned community otherwise qualifies. The value oftownhouse146.18propertya planned community unit, as defined in chapter 515B, 146.19 must be increased by the value added by the right to use any 146.20 commonareaselements in connection with thetownhouse146.21developmentplanned community. The commonareaselements of the 146.22 development must not be separately taxed. 146.23 (b) Condominium property qualifying as a homestead under 146.24 section 515A.1-105 and property owned by a cooperative 146.25 association that qualifies as a homestead must have the benefit 146.26 of homestead treatment or other special classification if the 146.27 condominium or cooperative association property otherwise 146.28 qualifies. 146.29 (c) Ifthe condominium, townhouse, or cooperative146.30association propertya unit in a common interest community is 146.31 owned by the occupant and used for the purposes of a homestead 146.32 but is located upon land which is leased, that leased land must 146.33 be valued and assessed as if it were homestead property within 146.34 class 1 if all of the following criteria are met: 146.35 (1) the occupant is using thepropertyunit as a permanent 146.36 residence; 147.1 (2) the occupant or the cooperative association is paying 147.2 the ad valorem property taxes and any special assessments levied 147.3 against the land and structure; 147.4 (3) the occupant or the cooperative association has signed 147.5 a land lease; and 147.6 (4) the term of the land lease is at least 50 years, 147.7 notwithstanding the fact that the amount of the rental payment 147.8 may be renegotiated at shorter intervals. 147.9 Sec. 9. Minnesota Statutes 1998, section 297H.01, 147.10 subdivision 8, is amended to read: 147.11 Subd. 8. [RESIDENTIAL GENERATOR.] "Residential generator" 147.12 means any of the following: 147.13 (1) a detached single family residence that generates mixed 147.14 municipal solid waste or non-mixed-municipal solid waste; 147.15 (2) a person residing in a building or site containing 147.16 multiple residences that generates mixed municipal solid waste, 147.17 including apartment buildings,condominiums,common interest 147.18 communities, or manufactured home parks,or townhomes,where 147.19 each residence is separately billed by the waste service 147.20 provider; 147.21 (3) an owner of a building or site containing multiple 147.22 residences or an association representing residences that 147.23 generate mixed municipal solid waste or non-mixed-municipal 147.24 solid waste, including apartment buildings, condominiums, 147.25 manufactured home parks, or townhomes where no residence is 147.26 separately billed for such service by the waste management 147.27 service provider and the owner or association is billed directly 147.28 for the waste management services. A residential generator does 147.29 not include a self-hauler. 147.30 Sec. 10. Minnesota Statutes 1998, section 327C.095, 147.31 subdivision 5, is amended to read: 147.32 Subd. 5. [PARK CONVERSIONS.] If the planned cessation of 147.33 operation is for the purpose of converting the part of the park 147.34 occupied by the resident to acondominiumcommon interest 147.35 community pursuant to chapter515A515B, the provisions of 147.36 section515A.4-110515B.4-111, exceptparagraphsubsection (a), 148.1 shall apply. The nine-month notice required by this section 148.2 shall state that the cessation is for the purpose of conversion 148.3 and shall set forth the rights conferred by this subdivision and 148.4 section515A.4-110515B.4-111,paragraphsubsection (b). Not 148.5 less than 120 days before the end of the nine months, the park 148.6 owner shall serve upon the resident a form of purchase agreement 148.7 setting forth the terms of sale contemplated by section 148.8515A.4-110515B.4-111,paragraph (b)subsection (d). Service of 148.9 that form shall operate as the notice described by section 148.10515A.4-110515B.4-111,paragraphsubsection (a). 148.11 Sec. 11. Minnesota Statutes 1998, section 357.18, 148.12 subdivision 1, is amended to read: 148.13 Subdivision 1. [COUNTY RECORDER FEES.] The fees to be 148.14 charged by the county recorder shall be as follows: 148.15 (1) for indexing and recording any deed or other instrument 148.16 $1 for each page of an instrument, with a minimum fee of $15; 148.17 (2) for documents containing multiple assignments, partial 148.18 releases or satisfactions $10 for each document number or book 148.19 and page cited; 148.20 (3) for certified copies of any records or papers, $1 for 148.21 each page of an instrument with a minimum fee of $5; 148.22 (4) for an abstract of title, the fees shall be determined 148.23 by resolution of the county board duly adopted upon the 148.24 recommendation of the county recorder, and the fees shall not 148.25 exceed $5 for every entry, $50 for abstract certificate, $1 per 148.26 page for each exhibit included within an abstract as a part of 148.27 an abstract entry, and $2 per name for each required name search 148.28 certification; 148.29 (5) for a copy of an official plat filed pursuant to 148.30 section 505.08, the fee shall be $9.50 and an additional 50 148.31 cents shall be charged for the certification of each plat; 148.32 (6) for filinga condominiuman amended floor plan in 148.33 accordance withsection 515.13, or a condominium plat in148.34accordance with section 515A.2-110chapter 515, an amended 148.35 condominium plat in accordance with chapter 515A, or a common 148.36 interest community plat or amendment complying with section 149.1 515B.2-110, subsection (c), the fee shall be 50 cents per 149.2 apartment or unit with a minimum fee of $30; 149.3 (7) for a copy of acondominiumfloor plan filed pursuant 149.4 tosection 515.13, orchapter 515, a copy of a condominium plat 149.5 filed in accordance withsection 515A.2-110chapter 515A, or a 149.6 copy of a common interest community plat complying with section 149.7 515B.2-110, subsection (c), the fee shall be $1 for each page of 149.8 the floor planor, condominium plat or common interest community 149.9 plat with a minimum fee of $10. 149.10 Sec. 12. Minnesota Statutes 1998, section 389.09, is 149.11 amended to read: 149.12 389.09 [APPROVAL OF PLATS AND SURVEYS AND CONDOMINIUM PLATS 149.13 IN CERTAIN COUNTIES.] 149.14 Subdivision 1. [PLATS AND SURVEYS IN CERTAIN COUNTIES.] In 149.15 any county in which there is a county surveyor who maintains an 149.16 office on a full-time basis in a building maintained by the 149.17 county for county purposes, the county board may, by ordinance 149.18 adopted in accordance with section 375.51, require that each 149.19 subdivision plat or registered land survey plat orcondominium149.20 common interest community plat must be approved by the county 149.21 surveyor before recording. The county board shall establish a 149.22 schedule of fees charged to proprietors of plats for this 149.23 service. 149.24 Subd. 2. [CONDOMINIUMCOMMON INTEREST COMMUNITY PLATS.] A 149.25 county board may, by ordinance adopted in accordance with 149.26 section 375.51, require that eachcondominiumcommon interest 149.27 community plat submitted for recordation after July 31, 1985, be 149.28 approved by the county surveyor or other licensed surveyor hired 149.29 for this purpose by the county, for compliance with 149.30 section515A.2-110515B.2-110, before recording. The process of 149.31 approving thecondominiumcommon interest community plat must be 149.32 conducted in an expeditious manner so as not to unduly delay the 149.33 recording of thecondominiumcommon interest community plat. 149.34 The proprietor of thecondominiumcommon interest community plat 149.35 may be charged a reasonable fee for the service in accordance 149.36 with a schedule established by resolution passed by the 150.1 governing body of the county. 150.2 Sec. 13. Minnesota Statutes 1998, section 428A.11, 150.3 subdivision 4, is amended to read: 150.4 Subd. 4. [HOUSING IMPROVEMENTS.] "Housing improvements" 150.5 has the meaning given in the city's enabling ordinance. Housing 150.6 improvements may include improvements to common elements of a 150.7 condominium or other common interest community. 150.8 Sec. 14. Minnesota Statutes 1998, section 428A.11, 150.9 subdivision 6, is amended to read: 150.10 Subd. 6. [HOUSING UNIT.] "Housing unit" means real 150.11 property and improvements thereon consisting of a one-dwelling 150.12 unit, or an apartment or unit as described in chapter 515or, 150.13 515A, or 515B, respectively, that is occupied by a person or 150.14 family for use as a residence. 150.15 Sec. 15. Minnesota Statutes 1998, section 462C.02, 150.16 subdivision 4, is amended to read: 150.17 Subd. 4. [SINGLE FAMILY HOUSING.] "Single family housing" 150.18 means real property and improvements thereon consisting of a 150.19 one, two, three or four unit dwelling, one unit of which is 150.20 occupied as a principal residence by the owner of the units, or 150.21 a unit or an apartment as described in chapter 515or, 515A, or 150.22 515B, or any amendatory or supplemental law, which is owned or 150.23 to be owned and occupied by one person or family as a principal 150.24 residence, or a unit in a cooperatively owned group of dwelling 150.25 units which is occupied as a principal residence. Single family 150.26 housing may include new construction, or the acquisition and 150.27 rehabilitation of an existing building and site, or the 150.28 rehabilitation of and discharge of any interest or lien in an 150.29 existing building and site. 150.30 Sec. 16. Minnesota Statutes 1998, section 462C.02, 150.31 subdivision 5, is amended to read: 150.32 Subd. 5. [MULTIFAMILY HOUSING DEVELOPMENT, DEVELOPMENT.] 150.33 "Multifamily housing development" or "development" means an 150.34 apartment facility, including an apartment or unit described in 150.35 chapter 515or, 515A, or 515B, or a cooperative, or a group of 150.36 townhouses, which include four or more dwelling units, each to 151.1 be rented or sold to or occupied by a person or family for use 151.2 as a residence, or a building or buildings which include one or 151.3 more dwelling units, each to be rented by a person or family for 151.4 use as a residence. A development may include new construction 151.5 or the acquisition and rehabilitation of an existing building 151.6 and site or the rehabilitation of and discharge of any interest 151.7 or lien in an existing building and site. 151.8 Sec. 17. Minnesota Statutes 1998, section 462C.05, 151.9 subdivision 1, is amended to read: 151.10 Subdivision 1. [USE OF LOANS; CONDITIONS.] A city may also 151.11 include in the housing plan, a program or programs to 151.12 administer, and make or purchase a loan or loans to finance one 151.13 or more multifamily housing developments within its boundaries, 151.14 of the kind described in subdivision 2, 3, 4 or 7, and upon the 151.15 conditions set forth in this section. A loan may be made or 151.16 purchased for 151.17 (a) the acquisition and preparation of a site and the 151.18 construction of a new development, 151.19 (b) the rehabilitation of an existing building and site and 151.20 the discharge of any lien or other interest in the building and 151.21 site, 151.22 (c) for the acquisition of an existing building and site 151.23 and the rehabilitation thereof, 151.24 (d) for the acquisition of an existing building and site 151.25 for purposes of conversion to limited equity cooperative 151.26 ownership by low or moderate income families, 151.27 (e) for the acquisition, or acquisition and improvement, of 151.28 an existing building and site by a nonprofit corporation which 151.29 will operate the building as a multifamily housing development 151.30 for rental primarily to elderly or handicapped persons, or 151.31 (f) the taking out of accumulated equity in connection with 151.32 a program of federal insurance for the preservation of 151.33 low-income housing. 151.34 With respect to loans made or purchased pursuant to clause 151.35 (b) or (c), the cost of rehabilitation of an existing building 151.36 must be estimated to equal at least $1,000 per dwelling unit or 152.1 20 percent of the appraised value of the original building and 152.2 site whichever is less, except that with respect to 152.3 rehabilitation which consists primarily of improvement of the 152.4 property with facilities or improvements to conserve energy or 152.5 convert or retrofit for use of alternative energy sources, 152.6 rehabilitation loans may be made without regard to cost; and at 152.7 least a substantial portion of such rehabilitation cost must be 152.8 estimated to be incurred for compliance with building codes or 152.9 conservation of energy. 152.10 Each development upon completion shall comply with all 152.11 applicable code requirements. A loan or loans may be made or 152.12 purchased for either the construction or the long-term financing 152.13 of a development, or both, including the financing of the 152.14 acquisition of dwelling units and interests in common facilities 152.15 provided therein, by persons to whom such units and facilities 152.16 may be sold as contemplated in chapter 515or, 515A, or 515B, or 152.17 any supplemental or amendatory law thereof or as contemplated 152.18 for a development consisting of cooperative housing. 152.19 Substantially all of the proceeds of each loan shall be 152.20 used to pay the cost of a multifamily housing development, 152.21 including property functionally related and subordinate to it; 152.22 but nothing herein prevents the construction or acquisition of 152.23 the development over, under, or adjacent to, and in conjunction 152.24 with facilities to be used for purposes other than housing. 152.25 Sec. 18. Minnesota Statutes 1998, section 500.20, 152.26 subdivision 2a, is amended to read: 152.27 Subd. 2a. [RESTRICTION OF DURATION OF CONDITION.] Except 152.28 for any right to reenter or to repossess as provided in 152.29 subdivision 3, all private covenants, conditions, or 152.30 restrictions created by which the title or use of real property 152.31 is affected, cease to be valid and operative 30 years after the 152.32 date of the deed, or other instrument, or the date of the 152.33 probate of the will, creating them, and may be disregarded. 152.34 This subdivision does not apply to covenants, conditions, 152.35 or restrictions: 152.36 (1) that were created before August 1, 1988, by deed or 153.1 other instrument dated on or after August 1, 1982, or by will 153.2 the date of death of the testator of which was on or after 153.3 August 1, 1982; 153.4 (2) that were created before August 1, 1959, under which a 153.5 person who owns or has an interest in real property against 153.6 which the covenants, conditions, or restrictions have been filed 153.7 claims a benefit of the covenant, condition, or restriction if 153.8 the person records in the office of the county recorder or files 153.9 in the office of the registrar of titles in the county in which 153.10 the real estate affected is located, on or before March 30, 153.11 1989, a notice sworn to by the claimant or the claimant's agent 153.12 or attorney: setting forth the name of the claimant; describing 153.13 the real estate affected; describing the deed, instrument, or 153.14 will creating the covenant, condition, or restriction; and 153.15 stating that the covenant, condition, or restriction is not 153.16 nominal and may not be disregarded under subdivision 1; 153.17 (3) that are created by the declaration, bylaws, floor 153.18 plans, or condominium plat of a condominium created before 153.19 August 1, 1980, undersections 515.01 to 515.29chapter 515, or 153.20 created on or after August 1, 1980, undersections 515A.1-101 to153.21515A.4-117chapter 515A or 515B, or by any amendments of the 153.22 declaration, bylaws, floor plans, or condominium plat; 153.23 (4) that are created by the articles of incorporation, 153.24 bylaws, or proprietary leases of a cooperative association 153.25 formed under chapter 308A; 153.26 (5) that are created by a declaration or other instrument 153.27 that authorizes and empowers a corporation of which the 153.28 qualification for being a stockholder or member is ownership of 153.29 certain parcels of real estate, to hold title to common real 153.30 estate for the benefit of the parcels; 153.31 (6) that are created by a deed, declaration, reservation, 153.32 or other instrument by which one or more portions of a building, 153.33 set of connecting or adjacent buildings, or complex or project 153.34 of related buildings and structures share support, structural 153.35 components, ingress and egress, or utility access with another 153.36 portion or portions; 154.1 (7) that were created after July 31, 1959, and before 154.2 August 1, 1982, under which a person who owns or has an interest 154.3 in real estate against which covenants, conditions, or 154.4 restrictions have been filed claims a benefit of the covenants, 154.5 conditions, or restrictions if the person records in the office 154.6 of the county recorder or files in the office of the registrar 154.7 of titles in the county in which the real estate affected is 154.8 located during the period commencing on the 28th anniversary of 154.9 the date of the deed or instrument, or the date of the probate 154.10 of the will, creating them and ending on the 30th anniversary, a 154.11 notice as described in clause (2); or 154.12 (8) that are created by a declaration or bylaws of a common 154.13 interest community created under or governed by chapter 515B, or 154.14 by any amendments thereto. 154.15 A notice filed in accordance with clause (2) or (7) delays 154.16 application of this subdivision to the covenants, conditions, or 154.17 restrictions for a period ending on the later of seven years 154.18 after the date of filing of the notice, or until final judgment 154.19 is entered in an action to determine the validity of the 154.20 covenants, conditions, or restrictions, provided in the case of 154.21 an action the summons and complaint must be served and a notice 154.22 of lis pendens must be recorded in the office of the county 154.23 recorder or filed in the office of the registrar of titles in 154.24 each county in which the real estate affected is located within 154.25 seven years after the date of recording or filing of the notice 154.26 under clause (2) or (7). 154.27 County recorders and registrars of titles shall accept for 154.28 recording or filing a notice conforming with this subdivision 154.29 and charge a fee corresponding with the fee charged for filing a 154.30 notice of lis pendens of similar length. The notice may be 154.31 discharged in the same manner as a notice of lis pendens and 154.32 when discharged, together with the information included with it, 154.33 ceases to constitute either actual or constructive notice. 154.34 Sec. 19. Minnesota Statutes 1998, section 505.08, 154.35 subdivision 3, is amended to read: 154.36 Subd. 3. [PREMATURE REFERENCE TO PLAT; FORFEITURE.] Any 155.1 person who shall dispose of, lease, or offer to sell any land 155.2 included in a plat by reference to the plat before the same is 155.3 recorded, shall forfeit to the county $100 for each lot, or part 155.4 of a lot, so disposed of, leased, or offered; and any official, 155.5 land surveyor, or person whose duty it is to comply with any of 155.6 the provisions of this chapter, shall forfeit not less than $100 155.7 for each month during which compliance is delayed. All 155.8 forfeitures under this chapter shall be recovered in an action 155.9 brought in the name of the county. Notwithstanding any 155.10 provisions of this subdivision to the contrary, this subdivision 155.11 shall not apply to an offer to sell or lease a unit in a 155.12 proposed common interest community as defined in chapter 515B. 155.13 Sec. 20. Minnesota Statutes 1998, section 508.82, 155.14 subdivision 1, is amended to read: 155.15 Subdivision 1. [STANDARD DOCUMENTS.] The fees to be paid 155.16 to the registrar shall be as follows: 155.17 (1) of the fees provided herein, five percent of the fees 155.18 collected under clauses (3), (4), (10), (12), (13), (14), (16), 155.19 (17), and (18), for filing or memorializing shall be paid to the 155.20 state treasurer and credited to the general fund; plus a $4.50 155.21 surcharge shall be charged and collected in addition to the 155.22 total fees charged for each transaction under clauses (2) to 155.23 (5), (10), (12), (14), and (18), with 50 cents of this surcharge 155.24 to be retained by the county to cover its administrative costs 155.25 and $4 to be paid to the state treasury and credited to the 155.26 general fund; 155.27 (2) for registering each original certificate of title, and 155.28 issuing a duplicate of it, $30; 155.29 (3) for registering each instrument transferring the fee 155.30 simple title for which a new certificate of title is issued and 155.31 for the issuance and registration of the new certificate of 155.32 title, $30; 155.33 (4) for the entry of each memorial on a certificate and 155.34 endorsements upon duplicate certificates, $15; 155.35 (5) for issuing each residue certificate, $20; 155.36 (6) for exchange certificates, $10 for each certificate 156.1 canceled and $10 for each new certificate issued; 156.2 (7) for each certificate showing condition of the register, 156.3 $10; 156.4 (8) for any certified copy of any instrument or writing on 156.5 file in the registrar's office, the same fees allowed by law to 156.6 county recorders for like services; 156.7 (9) for a noncertified copy of any instrument or writing on 156.8 file in the office of the registrar of titles, or any specified 156.9 page or part of it, an amount as determined by the county board 156.10 for each page or fraction of a page specified. If computer or 156.11 microfilm printers are used to reproduce the instrument or 156.12 writing, a like amount per image; 156.13 (10) for filing two copies of any plat in the office of the 156.14 registrar, $30; 156.15 (11) for any other service under this chapter, such fee as 156.16 the court shall determine; 156.17 (12) for issuing a duplicate certificate of title pursuant 156.18 to the directive of the examiner of titles in counties in which 156.19 the compensation of the examiner is paid in the same manner as 156.20 the compensation of other county employees, $50, plus $10 to 156.21 memorialize; 156.22 (13) for issuing a duplicate certificate of title pursuant 156.23 to the directive of the examiner of titles in counties in which 156.24 the compensation of the examiner is not paid by the county or 156.25 pursuant to an order of the court, $10; 156.26 (14) for filinga condominium plat oran amendment toita 156.27 declaration in accordance with chapter 515, $10 for each 156.28 certificate upon which the document is registered and $30 for an 156.29 amended floor plan filed in accordance with chapter 515; 156.30 (15) for filing an amendment to a condominium declaration 156.31 or plat in accordance with chapter 515A, or a common interest 156.32 community declaration and plat or amendment complying with 156.33 section 515B.2-110, subsection (c), $10 for each certificate 156.34 upon which the document is registered and $30 for the filing of 156.35 the condominium or common interest community plat or amendment; 156.36 (16) for a copy of a condominium floor plan filed in 157.1 accordance with chapter 515, a copy of a condominium plat filed 157.2pursuant to chapters 515 andin accordance with chapter 515A, or 157.3 a copy of a common interest community plat complying with 157.4 section 515B.2-110, subsection (c), the fee shall be $1 for each 157.5 page of the floor plan, condominium plat, or common interest 157.6 community plat with a minimum fee of $10; 157.7(16) for filing a condominium declaration and plat or an157.8amendment to it in accordance with chapter 515A, $10 for each157.9certificate upon which the document is registered and $30 for157.10the filing of the condominium plat or an amendment thereto;157.11 (17) for the filing of a certified copy of a plat of the 157.12 survey pursuant to section 508.23 or 508.671, $10; 157.13 (18) for filing a registered land survey in triplicate in 157.14 accordance with section 508.47, subdivision 4, $30; 157.15 (19) for furnishing a certified copy of a registered land 157.16 survey in accordance with section 508.47, subdivision 4, $10. 157.17 Sec. 21. Minnesota Statutes 1998, section 508A.82, 157.18 subdivision 1, is amended to read: 157.19 Subdivision 1. [STANDARD DOCUMENTS.] The fees to be paid 157.20 to the registrar shall be as follows: 157.21 (1) of the fees provided herein, five percent of the fees 157.22 collected under clauses (3), (4), (10), (12), (13), (14), (16), 157.23 and (18), for filing or memorializing shall be paid to the state 157.24 treasurer and credited to the general fund; plus a $4.50 157.25 surcharge shall be charged and collected in addition to the 157.26 total fees charged for each transaction under clauses (2) to 157.27 (5), (10), (12), (14), and (18), with 50 cents of this surcharge 157.28 to be retained by the county to cover its administrative costs 157.29 and $4 to be paid to the state treasury and credited to the 157.30 general fund; 157.31 (2) for registering each original CPT, and issuing a 157.32 duplicate of it, $30; 157.33 (3) for registering each instrument transferring the fee 157.34 simple title for which a new CPT is issued and for the issuance 157.35 and registration of the new CPT, $30; 157.36 (4) for the entry of each memorial on a certificate and 158.1 endorsements upon duplicate CPTs, $15; 158.2 (5) for issuing each residue CPT, $20; 158.3 (6) for exchange CPTs, $10 for each CPT canceled and $10 158.4 for each new CPT issued; 158.5 (7) for each certificate showing condition of the register, 158.6 $10; 158.7 (8) for any certified copy of any instrument or writing on 158.8 file in the registrar's office, the same fees allowed by law to 158.9 county recorders for like services; 158.10 (9) for a noncertified copy of any instrument or writing on 158.11 file in the office of the registrar of titles, or any specified 158.12 page or part of it, an amount as determined by the county board 158.13 for each page or fraction of a page specified. If computer or 158.14 microfilm printers are used to reproduce the instrument or 158.15 writing, a like amount per image; 158.16 (10) for filing two copies of any plat in the office of the 158.17 registrar, $30; 158.18 (11) for any other service under sections 508A.01 to 158.19 508A.85, the fee the court shall determine; 158.20 (12) for issuing a duplicate CPT pursuant to the directive 158.21 of the examiner of titles in counties in which the compensation 158.22 of the examiner is paid in the same manner as the compensation 158.23 of other county employees, $50, plus $10 to memorialize; 158.24 (13) for issuing a duplicate CPT pursuant to the directive 158.25 of the examiner of titles in counties in which the compensation 158.26 of the examiner is not paid by the county or pursuant to an 158.27 order of the court, $10; 158.28 (14) for filinga condominium plat oran amendment toita 158.29 declaration in accordance with chapter 515, $10 for each 158.30 certificate upon which the document is registered and $30 for an 158.31 amended floor plan filed in accordance with chapter 515; 158.32 (15) for filing an amendment to a condominium declaration 158.33 or plat in accordance with chapter 515A, or a common interest 158.34 community declaration and plat or amendment complying with 158.35 section 515B.2-110, subsection (c), $10 for each certificate 158.36 upon which the document is registered and $30 for the filing of 159.1 the condominium or common interest community plat or amendment; 159.2 (16) for a copy of a condominium floor plan filed in 159.3 accordance with chapter 515, a copy of a condominium plat filed 159.4pursuant to chapters 515 andin accordance with chapter 515A, or 159.5 a copy of a common interest community plat complying with 159.6 section 515B.2-110, subsection (c), the fee shall be $1 for each 159.7 page of the floor plan, condominium plat, or common interest 159.8 community plat with a minimum fee of $10; 159.9(16) for filing a condominium declaration and condominium159.10plat or an amendment to it in accordance with chapter 515A, $10159.11for each certificate upon which the document is registered and159.12$30 for the filing of the condominium plat or an amendment to159.13it;159.14 (17) in counties in which the compensation of the examiner 159.15 of titles is paid in the same manner as the compensation of 159.16 other county employees, for each parcel of land contained in the 159.17 application for a CPT, as the number of parcels is determined by 159.18 the examiner, a fee which is reasonable and which reflects the 159.19 actual cost to the county, established by the board of county 159.20 commissioners of the county in which the land is located; 159.21 (18) for filing a registered land survey in triplicate in 159.22 accordance with section 508A.47, subdivision 4, $30; 159.23 (19) for furnishing a certified copy of a registered land 159.24 survey in accordance with section 508A.47, subdivision 4, $10. 159.25 ARTICLE 4 159.26 Section 1. Minnesota Statutes 1998, section 359.02, is 159.27 amended to read: 159.28 359.02 [TERM.] 159.29 A notary commissioned under section 359.01 holds office for 159.30 five years, unless sooner removed by the governor or the 159.31 district court, or by action of the commissioner. Within30159.32daysseven months before the expiration of the commission a 159.33 notary may be reappointed for a new term to commence and to be 159.34 designated in the new commission as beginning upon the day 159.35 immediately following the date of the expiration. The 159.36 reappointment takes effect and is valid although the appointing 160.1 governor may not be in the office of governor on the effective 160.2 day. 160.3 (a) All notary commissions issued before January 31, 1995, 160.4 will expire on January 31, 1995. 160.5 (b) All notary commissions issued after January 31, 1995, 160.6 will expire at the end of the licensing period, which will end 160.7 every fifth year following January 31, 1995. 160.8 (c) All notary commissions issued during a licensing period 160.9 expire at the end of that period as set forth in this section. 160.10 Sec. 2. Minnesota Statutes 1998, section 386.31, is 160.11 amended to read: 160.12 386.31 [CONSECUTIVE NUMBERING.] 160.13 Each county recorder shall endorse plainly upon each 160.14 instrument received for record or filing as soon as received a 160.15 number consecutive, to the extent practicable, to the number 160.16 affixed to the instrument next previously received and enter 160.17 such number as a part of the entry relating to such instrument 160.18 in all the indexes kept in the office and on the margin of the 160.19 record of the instrument, and such number shall be prima facie 160.20 evidence of priority of registration. If more than one 160.21 instrument shall be received at the same time, by mail or other 160.22 like enclosure, the recorder shall affix such number in the 160.23 order directed by the sender; if no direction be given, then in 160.24 the order in which the instruments actually come to the 160.25 recorder's hand in opening the enclosures. 160.26 Sec. 3. Minnesota Statutes 1998, section 507.421, is 160.27 amended to read: 160.28 507.421 [ESTATES AND TRUSTS; CONVEYANCES, SATISFACTIONS, 160.29 GRANTS, AND RELEASES.] 160.30 Subdivision 1. [MADE TO ESTATE OR TRUST.] A conveyance or 160.31 grant of an interest in real or personal property made to the 160.32 estate of a decedent, to the estate of a ward or conservatee, to 160.33 the ward's or conservatee's guardian or conservator, or to a 160.34 trust, including a trust in the form of a pension or 160.35 profit-sharing plan, that names the estate, the guardian, the 160.36 conservator, or the trust as the grantee of the interest, is a 161.1 valid and effective conveyance or grantof the interestto the 161.2 personal representative,guardian, or conservator of the161.3estateto the ward or conservatee, or to the trustee of the 161.4 trust, in like manner and effect as if the personal 161.5 representative,guardian, conservatorward, conservatee, or 161.6 trustee had been named the grantee of the conveyance or grant. 161.7 Subd. 2. [MADE BY ESTATE OR TRUST.] A satisfaction, 161.8 release, conveyance, or grant of an interest in real or personal 161.9 property that is made by an estate, a guardian, a conservator, 161.10 or trust described in subdivision 1, that names the estate, the 161.11 guardian, the conservator, or trust as the holder or grantor of 161.12 the interest, and that is executed by the personal 161.13 representative,guardian, conservatorward, conservatee, or 161.14 trustee authorized to execute the instrument, is a valid and 161.15 effective satisfaction, release, conveyance, or grant of the 161.16 interest, in like manner and effect as if the personal 161.17 representative, guardian, conservator, or trustee had been named 161.18 the holder or the grantor in the satisfaction, release, 161.19 conveyance, or grant. 161.20 Sec. 4. Minnesota Statutes 1998, section 559.21, 161.21 subdivision 2a, is amended to read: 161.22 Subd. 2a. [FOR POST 7/31/1985 CONTRACT.] If a default 161.23 occurs in the conditions of a contract for the conveyance of 161.24 real estate or an interest in real estate executed on or after 161.25 August 1, 1985, that gives the seller a right to terminate it, 161.26 the seller may terminate the contract by serving upon the 161.27 purchaser or the purchaser's personal representatives or 161.28 assigns, within or outside of the state, a notice specifying the 161.29 conditions in which default has been made. The notice must 161.30 state that the contract will terminate 60 days, or a shorter 161.31 period allowed in subdivision 4, after the service of the 161.32 notice, unless prior to the termination date the purchaser: 161.33 (1) complies with the conditions in default; 161.34 (2) makes all payments due and owing to the seller under 161.35 the contract through the date that payment is made; 161.36 (3) pays the costs of service of the notice, including the 162.1 reasonable costs of service by sheriff, public officer, or 162.2 private process server; except payment of costs of service is 162.3 not required unless the seller notifies the purchaser of the 162.4 actual costs of service by certified mail to the purchaser's 162.5 last known address at least ten days prior to the date of 162.6 termination; 162.7 (4) except for earnest money contracts, purchase 162.8 agreements, and exercised options, pays two percent of any 162.9 amount in default at the time of service, not including the 162.10 final balloon payment, any taxes, assessments, mortgages, or 162.11 prior contracts that are assumed by the purchaser; and 162.12 (5) if the contract is executed on or after August 1, 1999, 162.13 pays an amount to apply on attorneys' fees actually expended or 162.14 incurred, of $250 if the amount in default is less than $1,000, 162.15 and of $500 if the amount in default is $1,000 or more; or if 162.16 the contract is executed before August 1, 1999, pays an amount 162.17 to apply on attorneys' fees actually expended or incurred, of 162.18 $125 if the amount in default is less than $750, and of $250 if 162.19 the amount in default is $750 or more; except that no amount for 162.20 attorneys' fees is required to be paid unless some part of the 162.21 conditions of default has existed for at least 30 days prior to 162.22 the date of service of the notice. 162.23 Sec. 5. Minnesota Statutes 1998, section 582.32, 162.24 subdivision 5, is amended to read: 162.25 Subd. 5. [FORECLOSURE PROCEDURE; NOTICE TO CREDITORS.] (a) 162.26 After the date of agreement, the mortgagee may proceed to 162.27 foreclose the mortgage in accordance with the laws generally 162.28 applicable to foreclosure by advertisement including this 162.29 chapter and chapter 580, except as otherwise provided in this 162.30 section. 162.31 (b) At least 14 days before the date of sale, the mortgagee 162.32 shall: 162.33 (1) serve the persons in possession of the real estate with 162.34 notice of the voluntary foreclosure sale under this section in 162.35 the same manner as in a foreclosure by advertisement as provided 162.36 in section 580.03; and 163.1 (2) mail notice of the voluntary foreclosure sale under 163.2 this section to each holder of a junior lien who has filed or 163.3 recorded a request for notice under section 580.032. 163.4 (c) The mortgagee shall publish notice of the voluntary 163.5 foreclosure sale under this section in the same manner as in a 163.6 foreclosure by advertisement as provided in section 580.03 for 163.7 four consecutive weeks. The notice must include all information 163.8 required under section 580.04, clauses (1) to (6), the date of 163.9 agreement, and shall state that each holder of a junior lien may 163.10 redeem in the order and manner provided in subdivision 9, 163.11 beginning after the expiration of the mortgagor'stwo-month163.12 redemption period under this section. 163.13 (d) The mortgagor's redemption period is two months from 163.14 the date of sale, except that if the real estate is subject to a 163.15 federal tax lien under which the United States is entitled to a 163.16 120-day redemption period under section 7425(d)(1) of the 163.17 Internal Revenue Code, as amended, the mortgagor's redemption 163.18 period is 120 days from the date of sale. The certificate of 163.19 sale must indicate the redemption period applicable under this 163.20 paragraph. 163.21 Sec. 6. [EFFECTIVE DATE.] 163.22 Section 1 is effective July 1, 1999.