Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 452-S.F.No. 1504
           An act relating to commerce; providing various 
          definitions applicable to the regulation of sales of 
          subdivided lands; providing for the registration of 
          subdivided lands; requiring the use of public offering 
          statements; providing certain exemptions to the 
          subdivided land statutes; providing for the rescission 
          of subdivided land sales contracts; regulating the 
          filing of subdivided land documents; prohibiting the 
          publishing of false, misleading, or deceptive 
          advertising regarding subdivided lands; providing the 
          filing of annual reports; regulating supplemental 
          subdivided land reports; providing for the revocation 
          or suspension of a subdivided land registration; 
          regulating service of process on subdivided land 
          registration applicants; establishing prohibited 
          practices; prescribing penalties; amending Minnesota 
          Statutes 1982, sections 83.20, subdivisions 1, 5, 11, 
          and by adding subdivisions; 83.21; 83.23; 83.24; 
          83.25, subdivision 1; 83.26; 83.27; 83.28; 83.29, by 
          adding subdivisions; 83.30; 83.31; 83.33, subdivisions 
          1 and 2; 83.34, subdivision 1; 83.35; 83.36; 83.37; 
          83.38, subdivision 2; 83.39; 83.40; 83.41; 83.42; 
          proposing new law coded in Minnesota Statutes, chapter 
          83; repealing Minnesota Statutes 1982, section 83.33, 
          subdivision 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 83.20, 
subdivision 1, is amended to read:  
    Subdivision 1.  (a) "Advertising" shall include the 
publication or causing to be published of any information 
offering for sale or for the purpose of causing or inducing any 
other person to purchase or to acquire an interest in the title 
to subdivided lands, including the land sales contract to be 
used and any photographs or drawings or artist's representations 
of physical conditions or facilities on the property existing or 
to exist by means of any:  
    (1) Newspaper or periodical;  
    (2) Radio or television broadcast;  
    (3) Written, printed or photographic matter; or 
    (4) Material used in connection with the disposition or 
offer of subdivided lands by radio, television, telephone or any 
other electronic means.  
    (b) "Advertising" shall further include material used by 
subdividers to induce prospective purchasers to visit a 
subdivision, or travel to this state or elsewhere, including 
vacation certificates which require the holders of such 
certificates to attend or submit to a sales presentation by a 
subdivider or its agents.  
    (c) "Advertising" shall further include the entire 
promotional plan for the disposition of the subdivided lands 
including promotional displays at public or private events, and 
parties, dinners or other meetings at which prospective 
purchasers may be shown or presented with other advertising as 
defined in (a) and (b) above.  
    (d) "Advertising" shall not be deemed to include: 
Stockholder communications such as annual reports and interim 
financial reports, proxy materials, registration statements, 
securities prospectuses, applications for listing securities on 
stock exchanges, and the like;  prospectuses, property reports, 
offering statements, or other documents required to be delivered 
to a prospective purchaser by an agency of any other state or 
the federal government; communications addressed to and relating 
to the account of any persons who have previously executed a 
contract for the purchase of the subdivider's lands except when 
directed to the sale of additional lands "Advertisement" means 
any written or printed communication or any communication by 
telephone or transmitted on radio, television, electronic means 
or similar communications media published in connection with the 
offer or sale of subdivided lands or any communication made to 
induce prospective purchasers to visit or attend an offer or 
sales presentation.  
    Sec. 2.  Minnesota Statutes 1982, section 83.20, 
subdivision 5, is amended to read:  
    Subd. 5.  "Disposition" includes sale, lease, option, 
assignment, license, award by lottery or as a prize or any offer 
or solicitation of an offer to do any of the foregoing 
concerning a subdivision or any part of a subdivision "Sale" or 
"sell" means every contract or agreement to convey an interest, 
including a leasehold interest, in subdivided land for value.  
    Sec. 3.  Minnesota Statutes 1982, section 83.20, 
subdivision 11, is amended to read:  
    Subd. 11.  "Subdivision" and or "subdivided land" means any 
land real estate, wherever located, improved or unimproved, 
whether adjacent or not, which is divided or proposed to be 
divided for the purpose of disposition pursuant to a common 
promotional scheme or plan of advertising and disposition by a 
single subdivider or a group of subdividers.  If the land is 
designated or advertised as a common unit or by a common name 
the land shall be presumed, without regard to the number of lots 
covered by each individual offering, as being offered for 
disposition as part of a common promotional plan sale or lease, 
including sales or leases of any time-share interest, housing 
cooperative, condominium, or similar interest in real estate.  
    Sec. 4.  Minnesota Statutes 1982, section 83.20, is amended 
by adding a subdivision to read:  
    Subd. 13.  "Time-share interest" means a right to occupy a 
unit or any of several units during intermittent time periods 
over a period of at least three years, including renewal 
options, whether or not coupled with a freehold estate or an 
estate for years.  
    Sec. 5.  Minnesota Statutes 1982, section 83.20, is amended 
by adding a subdivision to read:  
    Subd. 14.  "Improved lots" means lots which have or will 
have within a two-year period from the date of purchase, a 
permanent residential structure thereon, and are not devoted to 
or used as a time share interest, cooperative apartment 
corporation, condominium, or similar interest in real estate.  
    Sec. 6.  Minnesota Statutes 1982, section 83.21, is amended 
to read:  
    83.21 [COMMISSIONER OF SECURITIES AND REAL ESTATE TO 
ADMINISTER.] 
    Sections 83.20 to 83.42, and sections 28 and 29 shall be 
administered by the commissioner of securities and real estate 
of the Minnesota department of commerce.  
    Sec. 7.  Minnesota Statutes 1982, section 83.23, is amended 
to read:  
    83.23 [APPLICATION FOR REGISTRATION; FILING FEE 
REQUIREMENT.] 
    Subdivision 1.  [REGISTRATION.] Unless the subdivided land 
or the transaction is exempt by sections 83.20 to 83.42, a 
person may not offer or dispose in this state of any It is 
unlawful for any person to offer or sell an interest in 
subdivided lands in this state unless the subdivided lands are 
interest is registered in accordance with sections 83.20 to 
83.42 under this section or the subdivided land or the 
transaction is exempt under section 83.26. 
    Subd. 2.  [NOTIFICATION.] A filing fee of $250 shall 
accompany the application for registration plus an additional $l 
for each lot unit, parcel or interest included in the offering. 
The maximum filing fee shall in no event be more than $2,500 
Unless the method of offer or sale is adopted for the purpose of 
evasion of sections 83.20 to 83.42 and sections 28 and 29, 
subdivided lands may be registered by notification provided that 
all of the following requirements have been met:  
    (a) The subdivision consists of not more than 100 separate 
lots, units, parcels, or interests;  
    (b) At least 20 days prior to any offer pursuant to this 
subdivision, the subdivider must supply the commissioner, on 
forms which the commissioner may by rule prescribe, at least the 
following information:  
    (1) The name and address of the subdivider and the form and 
date of its organization if other than an individual;  
    (2) The location and legal description of the subdivision 
and the total number of lots, parcels, units, or interests;  
    (3) Either a title opinion prepared and signed by an 
attorney licensed to practice law in the state wherein the 
subdivided land is situated; or a certificate of title insurance 
or its equivalent acceptable to the commissioner;  
    (4) A copy of each instrument which will be delivered to a 
purchaser to evidence his interest in the subdivided lands and a 
copy of each contract or other agreement which a purchaser will 
be required to agree to or sign, together with the range of 
selling prices, rates, or rentals at which it is proposed to 
offer the lots, units, parcels, or interests in the subdivision, 
a list of fees the purchaser may be required to pay for 
amenities or membership in groups including, but not limited to, 
homeowners' associations, country clubs, golf courses, and other 
community organizations; and 
    (5) A copy of a signed and approved plat map or its 
equivalent;  
    (c) A filing fee of $100 has been paid;  
    (d) The subdivider is in compliance with the service of 
process provisions of section 83.39.  
    The commissioner may by rule or order withdraw or further 
condition registration by notification or increase or decrease 
the number of lots, units, parcels, or interests in subdivided 
lands permitted for registration by notification.  If no stop 
order is in effect, no proceeding is pending, and no order has 
been issued under subdivision 4, a registration statement under 
this section automatically becomes effective at 5:00 in the 
afternoon on the 20th full business day after the filing of the 
registration statement or the last amendment, or at such earlier 
time as the commissioner by order determines.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Subd. 3.  [QUALIFICATION.] The application for registration 
of Subdivided lands shall be filed with the commissioner as 
prescribed by rule.  The application shall be signed and sworn 
to by the subdivider and shall include, but not be limited to 
the following documents and information may be registered by 
qualification provided all of the following requirements have 
been met:  
    (1) An irrevocable appointment of the commissioner to 
receive service of any lawful process in any civil proceeding 
arising under sections 83.20 to 83.42 against the subdivider, or 
his personal representative;  
    (2) A legal description of the subdivided lands offered for 
registration verified by affidavit of an independent 
professional land surveyor, a statement of the topography and a 
topographical map, together with a map showing the division 
proposed or made, the dimensions of the lots, parcels, units, or 
interests and the relation of the subdivided lands to existing 
streets, roads, and other off site improvements;  
    (3) The states or jurisdictions in which an application for 
registration or similar document has been filed and any adverse 
order, judgment, or decree entered in connection with the 
subdivided lands by any regulatory authority in any jurisdiction 
or by any court;  
    (4) The subdivider's name and address, and the form, date 
of organization and jurisdiction of its organization; and the 
name and address of each of its offices and agents in this state;
    (5) The name, address and principal occupation for the past 
five years of every director, officer, and partner of the 
subdivider, every person occupying a similar status or 
performing similar functions, and each owner of ten percent or 
more of the subdivider; the extent and nature of his interest in 
the subdivider or the subdivided lands as of a specified date 
within 30 days prior to the filing of the application; 
    (6) A statement in a form acceptable to the commissioner of 
the condition of the title to the subdivided lands including all 
encumbrances, deed restrictions and covenants applicable thereto 
with data as to recording, as of a specified date within 30 days 
prior to the date of application by a title opinion of a 
licensed attorney, not a salaried employee, partner, officer, or 
director of the subdivider or of its agent, or by other evidence 
of title acceptable to the commissioner;  
    (7) Copies of instruments which will be delivered to a 
purchaser to evidence his interest in the subdivided lands and 
of the contracts or other agreements which a purchaser will be 
required to agree to or sign, together with the range of selling 
prices, rates or rentals at which it is proposed to dispose of 
the lots, units, parcels or interests in the subdivisions, and a 
list of mandatory fees the purchaser may be required to pay for 
membership in groups including, but not limited to, homeowners 
associations, country clubs, golf courses and other community 
organizations;  
    (8) Copies of the instruments by which the interest in the 
subdivided lands was acquired or at the option of the 
commissioner, proof of marketable title to the subdivided lands; 
    (9) If there is a lien or encumbrance affecting the 
subdivision or any portion thereof, a legal description of the 
lien or encumbrance, a statement by the subdivider of his 
efforts to remove such lien or encumbrance, and a statement of 
the consequences and the steps, if any, taken to protect the 
purchaser in case of failure to discharge the lien or 
encumbrance;  
    (10) Copies of instruments creating, altering or removing 
easements, restrictions or other encumbrances affecting the 
subdivided lands;  
    (11) A statement of, and evidence showing compliance with, 
the zoning and other governmental laws, ordinances and 
regulations affecting the use of these subdivided lands and 
adjacent properties, together with dates of the most recent 
zoning changes stating the nature of such changes, and any 
proposed changes now pending, and also of any existing tax and 
existing or proposed special taxes or assessments which affect 
the subdivided lands;  
    (12) A statement of the existing provisions of access to 
the subdivision, the availability of sewage disposal facilities 
and other public utilities, including but not limited to water, 
electricity, gas and telephone facilities in the subdivision, 
the proximity in miles of the subdivision to nearby 
municipalities, the availability and scope of community fire and 
police protection, and the location of primary and secondary 
schools; a statement of the improvements to be installed, 
including off site and on site community and recreational 
facilities, by whom they are to be installed, maintained, and 
paid and an estimated schedule for completion; assurance that 
the planned improvements will be completed by filing a bond, 
irrevocable letter of credit, depositing funds in an escrow, or 
such other provision as the commissioner may by order require, 
to cover all lots or parcels of a subdivision on which money is 
paid or advanced by a purchaser, as required by the regulations 
of the commissioner;  
    (13) A narrative description of the promotional plan for 
the disposition of the subdivided lands together with copies of 
all advertising material which has been prepared for public 
distribution.  Such advertising shall be considered as approved 
by the commissioner if no action has been taken after 30 days 
from the date received by the commissioner.  Advertising 
material pictorial in nature shall be limited to a depiction of 
the actual on site condition of the subdivided lands or other 
areas that are material to the offer or sale of subdivided land 
pursuant to this registration;  
    (14) The proposed public offering statement;  
    (15) A financial statement of the subdivider as of the end 
of the subdivider's most recent fiscal year, audited by an 
independent certified public accountant; and, if the fiscal year 
end of the subdivider is in excess of 90 days prior to the date 
of filing the application, a financial statement, which may be 
unaudited, as of a date within 90 days of the date of 
application.  The commissioner may by rule prescribe the form 
and content of financial statements required under this clause 
and the circumstances under which consolidated financial 
statements may or shall be filed;  
    (16) A description of the land as it existed in its natural 
state, prior to development, and any changes that have occurred 
due to the subdivider's actions, current to the date of 
registration;  
    (17) A statement asserting that the subdivision is in 
compliance with federal, state and local environmental quality 
standards.  If the subdivision is not in compliance, a listing 
of the steps to be taken, if any, to insure compliance;  
    (18) A statement of the permits required to be obtained 
from various federal, state and local agencies, stating which 
have been obtained, and which have been applied for.  If any 
permit has been refused, the reasons for the refusal and the 
effect such refusal will have on subsequent development of the 
subdivision;  
    (19) A statement indicating whether or not the subdivider 
or any of its officers, directors, partners, principals or 
agents has been convicted of a crime involving land dispositions 
or any aspect of the land sales business in this state, the 
United States, or any other state or foreign country within the 
past ten years or has been subject to any injunction or 
administrative order entered within the past ten years enjoining 
or restraining any promotional plan involving land 
dispositions.  If either of the above has occurred, the name of 
the person involved, jurisdiction, offense and date of the 
offense shall be listed;  
    (20) A statement that the subdivider can convey or cause to 
be conveyed the interest in subdivided lands offered for 
disposition if the purchaser complies with the terms of the 
offer and when appropriate, that release clauses, conveyances in 
trust or other safeguards have been provided;  
    (21) Any additional information which the commissioner may 
by rule require for the protection of purchasers.  
    (a) An application for registration has been filed with the 
commissioner in a format which the commissioner may by rule 
prescribe;  
    (b) The commissioner has been furnished a proposed public 
offering statement complying with section 83.24;  
    (c) A filing fee of $250 plus an additional registration 
fee of $1 for each lot, unit, parcel, or interest included in 
the offering accompanies the application.  The maximum combined 
filing and registration fees shall in no event be more than 
$2,500;  
    (d) The subdivider is in compliance with service of process 
provisions of section 83.39;  
    (e) The commissioner has been furnished a financial 
statement of the subdivider's most recent fiscal year, audited 
by an independent certified public account; and, if the fiscal 
year of the subdivider is more than 90 days prior to the date of 
filing the application, a financial statement, which may be 
unaudited, as of a date within 90 days of the date of 
application.  
    Subdivisions in which all the improvements are complete and 
paid for by the developer, and for which clear title can be 
given the purchaser at the closing, are exempt from providing 
independently certified financial statements.  
    An application for registration under this section becomes 
effective when the commissioner so orders.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Subd. 4.  [CONSOLIDATED REGISTRATION.] If additional 
subdivided lands of the same subdivider are subsequently to be 
offered for disposition sale, the registration thereof may be 
consolidated with any earlier registration offering subdivided 
lands for disposition under the same promotional plan, sale if 
the additional subdivided lands are adjacent contiguous to those 
previously registered.  An application for consolidation shall 
be accompanied by an amendment a consolidation fee of $50.  The 
filing fee requirements of subdivision 2 shall apply unless the 
maximum filing fee has been previously paid If the registration 
is pursuant to subdivision 3, an additional registration fee of 
$1 shall be submitted for each lot, unit, parcel, or interest 
included in the consolidation if the maximum fees have not 
already been paid.  
    Sec. 8.  Minnesota Statutes 1982, section 83.24, is amended 
to read:  
    83.24 [PUBLIC OFFERING STATEMENT.] 
    Subdivision 1.  [DELIVERY.] A person may not dispose of any 
interest in subdivided lands unless a current public offering 
statement is delivered to the purchaser at the expense of the 
subdivider or his agent, and the purchaser is afforded a 
reasonable opportunity to examine, and is permitted to retain 
the public offering statement prior to the offer or disposition 
A public offering statement shall be delivered to each person to 
whom an offer is made before or concurrently with (a) the first 
written offer other than offer by means of a public 
advertisement, or (b) any payment pursuant to a sale, whichever 
occurs first.  Each person to whom an offer is made must be 
afforded a reasonable opportunity to examine the public offering 
statement and must be permitted to retain the statement.  The 
subdivider or his agent shall obtain a receipt, signed by the 
purchaser person, acknowledging that he has received a copy of 
the public offering statement prior to the execution by the 
purchaser of a any contract or agreement for the disposition of 
any lot or parcel in a subdivision, which receipt to purchase 
any lot, unit, parcel, or interest in subdivided lands.  All 
receipts shall be kept in files which are in the possession of 
the subdivider or his agent, subject to inspection by the 
commissioner, for a period of three years from the date of the 
receipt is taken.  
    Subd. 2.  [FULL DISCLOSURE.] A public offering statement 
shall disclose fully and accurately the physical and climatic 
characteristics of the subdivided lands being offered and shall 
make known to prospective purchasers all unusual and material 
circumstances or features affecting the subdivided lands.  A 
proposed public offering statement submitted to the commissioner 
shall be in a form prescribed by rule and shall include the 
following:  
    (1) The name, principal address and telephone number of the 
subdivider and of its offices and agents in this state;  
    (2) A general description of the subdivided lands stating 
the total number of lots, parcels, units or interests to be 
offered;  
    (3) A statement whether the subdivider holds any options to 
purchase adjacent properties, and if so, a description of such 
options and the location and zoning of the adjacent properties;  
    (4) A statement of the assistance, if any, that the 
subdivider or his agent will provide to the purchaser in the 
resale of the property and whether or not the subdivider or his 
agent will be in competition in the event of resale;  
    (5) The material terms of any encumbrances, easements, 
liens, and restrictions including zoning and other regulations 
affecting the subdivided lands and each unit or lot, a statement 
of the subdivider's efforts to remove such lien or encumbrance, 
and a statement of all existing taxes and existing or proposed 
special taxes or assessments which affect the subdivided lands;  
    (6) A statement of the use for which the property is to be 
offered;  
    (7) Information concerning existing or proposed 
improvements, including but not limited to streets, water 
supply, levees, drainage control systems, irrigation systems, 
sewage disposal systems and customary utilities and the 
estimated cost, date of completion, and responsibility for 
construction and maintenance of existing and proposed 
improvements which are referred to in connection with the 
offering or disposition of any lot, unit, parcel or interest in 
subdivided lands;  
    (8) A financial statement of the subdivider as of the end 
of the subdivider's most recent fiscal year, audited by an 
independent certified public accountant; and, if the fiscal year 
end of the subdivider is in excess of 90 days prior to the date 
of filing the application, a financial statement, which may be 
unaudited, as of a date within 90 days of the date of 
application;  
    (9) Such additional information as may be required by the 
commissioner to assure full and fair disclosure to prospective 
purchasers.  
    Subd. 3.  [FORM.] The A public offering statement shall not 
be used for any promotional purpose before registration of the 
subdivided lands and afterwards it shall be used only in its 
entirety.  A person may not advertise or represent that the 
commissioner has approved or recommended the subdivided lands or 
disposition thereof.  A portion of the public offering statement 
may not be underscored, italicized or printed in larger or 
heavier or different color type than the remainder of the 
statement unless required or approved by the commissioner in a 
format prescribed by rule and shall include the following:  
    (a) The name, principal address, and telephone number of 
the subdivider and of its officers and agents in this state;  
    (b) A general description of the subdivided lands stating 
the total number of lots, parcels, units, or interests to be 
offered;  
    (c) A statement which discloses whether the subdivider owns 
any rights or options to acquire an interest in adjacent 
properties, and if so, a description of the options and the 
locations and zoning status of the adjacent properties;  
    (d) A statement of the assistance, if any, that the 
subdivider or his agent will provide to the purchaser in the 
resale of the property and whether or not the subdivider or his 
agent will be in competition in the event of resale;  
    (e) The material terms of any restrictions affecting the 
subdivided lands and each unit or lot, including, but not 
limited to, any encumbrances, easements, liens, and zoning 
status; a statement of the subdivider's efforts to remove the 
restrictions; and a statement of all existing taxes and existing 
or proposed special taxes or assessments which affect the 
subdivided lands;  
    (f) A statement of the use for which the property is to be 
offered;  
    (g) Information concerning existing or proposed 
improvements and amenities and the completion dates thereof; and 
    (h) Additional information as may be required at the 
discretion of the commissioner to assure full and fair 
disclosure to prospective purchasers.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Subd. 4.  [PERMITTED USE.] The commissioner may require the 
subdivider or his agent to alter or amend the proposed public 
offering statement in order to assure full and fair disclosure 
to prospective purchasers shall not be used for any promotional 
purpose before registration of the subdivided lands and after 
registration shall be used only in its entirety.  A person may 
not advertise or represent that the commissioner has approved or 
recommended the subdivided lands or sale thereof.  A portion of 
the public offering statement may not be underscored, 
italicized, or printed in larger or heavier or different color 
type than the remainder of the statement unless required or 
approved by the commissioner.  
    Subd. 5.  [OTHER LAW.] Any public offering statement which 
complies with the requirements of any federal law or the laws of 
any other state requiring substantially the same disclosure of 
information as is required by this section, may by rule or order 
of the commissioner be deemed to be in full or partial 
compliance with this section.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Sec. 9.  Minnesota Statutes 1982, section 83.25, 
subdivision 1, is amended to read:  
    Subdivision 1.  No person shall offer or dispose sell in 
this state of any interest in subdivided lands until: 
    (1) He has obtained a license under chapter 82; and 
    (2) He has obtained an additional license to offer or 
dispose of subdivided lands.  This license may be obtained by 
submitting an application in writing to the commissioner upon 
forms prepared and furnished by the commissioner.  Each 
application shall be signed and sworn to by the applicant and 
accompanied by a license fee of $10.  The commissioner may also 
require an additional examination for this license. 
    Sec. 10.  Minnesota Statutes 1982, section 83.26, is 
amended to read:  
    83.26 [EXEMPTIONS.] 
    Subdivision 1.  [GENERALLY; LANDS.] Unless the method of 
disposition offer or sale is adopted for the purpose of evasion 
of sections 83.20 to 83.42, sections 83.20 to 83.42 do not apply 
to offers or dispositions of interests in land and sections 28 
and 29, the following subdivided lands are exempted from 
sections 83.20 to 83.42:  
    (a) By a purchaser of subdivided lands for his own account 
in a single or isolated transaction Any lands offered or sold by 
the United States, any state, any political subdivision of a 
state, or any other corporate instrumentality of one of the 
above;  
    (b) To any person who acquires such land for the purpose of 
engaging in and who does use such land to engage in the business 
of constructing residential, commercial or industrial buildings 
thereon for the purpose of resale or constructing commercial or 
industrial buildings for his own use Leases of apartments, 
stores, offices, or similar space;  
    (c) Pursuant to an order of a court of competent 
jurisdiction of this state Leases of rooms or space in hotels, 
motels, or similar space for a period of less than three years, 
including renewal options;  
    (d) As Cemetery lots or interests therein;  
    (e) If they are leases of apartments, stores, offices, or 
similar space in a building Mortgages or deeds of trust of real 
estate securing evidences of indebtedness;  
    (f) If they are mortgages or deeds of trust of real estate 
securing evidences of indebtedness. Subdivided lands which are 
registered as securities pursuant to the provisions of chapter 
80A; and 
    (g) If the land is located within the corporate limits of a 
municipality as defined in section 462.352, subdivision 2, or 
within any subdivision located within a town or municipality 
located within 20 miles of the city limits of a city of the 
first class or within three miles of the city limits of a city 
of the second class, or within two miles of the city limits of a 
city of the third or fourth class in this state.  The 
commissioner may, by written rule or order, suspend, wholly 
revoke, or further condition this exemption, or may require, 
prior to the first disposition of subdivided lands, such further 
information with respect thereto as may be necessary for the 
protection of purchasers consistent with the provisions hereof 
Other subdivided lands not within the intent of this chapter 
which the commissioner may by rule or order exempt.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Subd. 2.  [GENERALLY; TRANSACTIONS.] The provisions of 
sections 83.23 and 83.24 with respect to the registration of 
subdivided lands and the public offering statement, shall not 
apply to offers or dispositions of interests in land Unless the 
method of offer or sale is adopted for the purpose of evasion of 
sections 83.20 to 83.42, and sections 28 and 29, the following 
transactions are exempt from sections 83.23, 83.24, 83.25, 
83.28, 83.29, and 83.30:  
    (a) If fewer than ten separate lots, parcels, units or 
interests in subdivided lands are offered or to be offered in 
any period of 12 consecutive months The offer or sale of an 
interest in subdivided land by an owner, other than the 
subdivider, acting as principal in a single or isolated 
transaction;  
    (b) Involving the offering of not more than 50 separate 
lots, parcels, units or interests within any period of 12 
consecutive months, if the subdivider or his agent shall have 
furnished to the commissioner, not less than 20 days prior to 
the consummation of any such disposition, a filing fee of $10 
and a statement of the subdivider on forms prescribed by the 
commissioner containing the following information:  
    (1) The subdivider's name and address, and the form, date 
of organization and jurisdiction of its organization;  and the 
name and address of each of its offices and agents in this state;
    (2) A general description of the subdivided lands stating 
the total number of lots, parcels, units or interests to be 
offered;  
    (3) A statement in a form acceptable to the commissioner of 
the condition of the title to the subdivided lands including all 
encumbrances, deed restrictions and covenants applicable thereto;
    (4) Copies of instruments which will be delivered to a 
purchaser to evidence his interest in the subdivided lands and 
of the contracts or other agreements which a purchaser will be 
required to agree to or sign, together with the range of selling 
prices, rates or rentals at which it is proposed to dispose of 
the lots, units, parcels or interests in the subdivisions, and a 
list of mandatory fees the purchaser may be required to pay for 
membership in groups including but not limited to home owners' 
associations, country clubs, golf courses and other community 
organizations;  
    (5) A statement of and evidence showing compliance with 
zoning and other governmental laws, ordinances and regulations 
affecting the use of the subdivided lands and adjacent 
properties;  
    (6) A statement asserting that the subdivision is in 
compliance with federal, state and local environmental quality 
standards.  If the subdivision is not in compliance, a listing 
of the steps to be taken, if any, to insure compliance;  
    (7) A statement of the permits required to be obtained from 
various federal, state and local agencies stating which have 
been obtained and which have been applied for.  If any permit 
has been refused, the reasons for the refusal and the effect 
such refusal will have on subsequent development of the 
subdivision;  
    (8) A statement of the existing provisions of access to the 
subdivision, the availability of sewage disposal facilities and 
other public utilities including but not limited to water, 
electricity, gas and telephone facilities in the subdivision, 
the proximity in miles of the subdivision to nearby 
municipalities, the availability and scope of community fire and 
police protection, and the location of primary and secondary 
schools; a statement of the improvements to be installed, 
including off-site and on-site community and recreational 
facilities, by whom they are to be installed, maintained and 
paid and an estimated schedule for completion;  
    Provided, however, that the commissioner may by rule or 
order, as to the offer or disposition of any subdivided lands, 
withdraw or further condition this exemption, or require 
additional information, or increase or decrease the number of 
lots, parcels, units or interests in subdivided lands permitted 
The offer or sale of all of the subdivided lands within a 
subdivision in a single transaction to any person;  
    (c) The offer or sale of subdivided land pursuant to an 
order of competent jurisdiction, other than a court of 
bankruptcy;  
    (d) The offer or sale of subdivided land consisting of not 
more than ten separate lots, units, parcels, or interests in the 
aggregate;  
    (e) The offer or sale of subdivided lands which have been 
registered under section 83.23, subdivision 2, if there are no 
more than ten separate lots, units, parcels, or interests 
remaining to be sold and no material change has occurred in the 
information on file with the commissioner;  
    (f) The offer and sale of subdivided land located within 
the corporate limits of a municipality as defined in section 
462.352, subdivision 2, which municipality has adopted 
subdivision regulations as defined in section 462.352, except 
those lands described in section 83.20, subdivisions 13, 14, and 
15;  
    (g) The offer and sale of apartments or condominiums as 
defined in chapters 515 and 515A;  
    (h) The offer and sale of subdivided lands used primarily 
for agricultural purposes provided each parcel is at least ten 
acres in size;  
    (i) The offer or sale of improved lots if:  
    (1) the subdivider has filed with the commissioner, no 
later than ten business days prior to the date of the first 
sale, a written notice of its intention to offer or sell 
improved lots, which notice shall be accompanied by a fee of 
$50, together with a copy of the public offering statement 
accepted by the situs state and the standard purchase agreement 
which documents are required to be supplied by the subdivider to 
the purchaser; and 
    (2) the subdivider deposits all downpayments in an escrow 
account until all obligations of the subdivider to the 
purchaser, which are pursuant to the terms of the purchase 
agreement to be performed prior to the closing, have been 
performed.  The subdivider shall provide the purchaser with a 
purchase receipt for the downpayment paid, a copy of the escrow 
agreement and the name, address, and telephone number of the 
escrow agent.  The escrow agent shall be a bank located in 
Minnesota.  All downpayments shall be deposited in the escrow 
account within two business days after receipt.  
    The commissioner may by rule or order suspend, revoke, or 
further condition the exemptions contained in clauses (f), (g), 
(h), and (i) or may require such further information as may be 
necessary for the protection of purchasers.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14. 
    Subd. 3.  [EXEMPTION; BURDEN.] The commissioner may by 
order exempt from the provisions of sections 83.20 to 83.42 
interests in subdivided lands which are registered as securities 
pursuant to the provisions of chapter 80 The burden of proving 
an exemption or an exception from a definition is upon the 
person claiming it.  
    Sec. 11.  Minnesota Statutes 1982, section 83.27, is 
amended to read:  
    83.27 [INQUIRY AND EXAMINATION.] 
    The commissioner may investigate any subdivision required 
to be registered under sections 83.20 to 83.42, and sections 28 
and 29 for the purpose of verifying statements contained in the 
application for registration and or the public offering 
statement.  For the purpose of such investigation, the 
commissioner may: 
    (a) Use and rely upon any relevant information or data 
concerning a subdivision obtained by him from the federal 
housing administration, the United States veterans 
administration, or any state or federal agency having 
supervisory duties over real estate subdivisions which are 
comparable to those of the commissioner; 
    (b) Require the subdivider to submit reports prepared by an 
independent licensed or registered engineer concerning any 
hazard to which, in the opinion of the commissioner, any 
subdivision offered for disposition is subject, or concerning 
any other factor which affects the utility of lots, units, 
parcels, or interests within the subdivision and may require 
evidence of compliance to remove or minimize all hazards stated 
by competent engineering reports; 
    (c) Conduct an on-site inspection of each subdivision.  The 
subdivider shall defray all actual and necessary expenses 
incurred by the inspector in the course of the inspection; 
    (d) Conduct an annual on-site reinspection of each 
subdivision for each of the three years after registration and 
thereafter make periodic on site inspections.  The developer 
shall defray all actual and necessary expenses incurred by the 
inspector in the course of such inspection; 
    (e) Require the subdivider to deposit the expenses to be 
incurred in any inspection or reinspection, in advance, based 
upon an estimate by the commissioner of the expenses likely to 
be incurred.  All such deposits shall be paid into the state 
treasury and credited to the commissioner's investigation fund, 
from which fund the commissioner shall have power to make 
disbursements to pay such expenses.  Any unexpended portion 
shall be refunded.  On field examinations made by the 
commissioner or his employee away from the office of the 
commissioner a per diem of $10 for each such person may be 
charged in addition to the actual expenses.  Where additional 
technical, expert, or special services are used, the actual cost 
of such services may be charged in addition to actual expenses; 
    (f) Where an on-site inspection of any subdivision has been 
made under sections 83.20 to 83.42, and sections 28 and 29, an 
inspection of adjacent additional subdivided lands for which a 
subsequent application for registration is filed may be waived 
and an inspection thereof may be made at the time of the next 
succeeding on site inspection.  
    Sec. 12.  Minnesota Statutes 1982, section 83.28, is 
amended to read:  
    83.28 [SALES CONTRACT; RESCISSION.] 
    Subdivision 1.  [CONTRACT; FORM RESTRICTIONS.] Every 
contract for disposition sale relating to subdivided land shall 
(1) state clearly the legal description of the lot, unit, parcel 
, or interest disposed of and shall; (2) contain the disclosure 
substantially similar to that required by the federal truth in 
lending act, and the rules promulgated thereunder; and (3) be in 
recordable form.  
    Subd. 2.  [VOIDABLE.] Any contract or agreement for the 
disposition sale of a lot, parcel, unit, or interest in a 
subdivision not exempt under section 83.26, is voidable at the 
discretion of the purchaser, for a period of three years from 
the date of the contract or agreement, notwithstanding the 
delivery of a deed to the purchaser, if the subdivision was not 
registered under sections 83.20 to 83.42, and sections 28 and 29 
at the time of the offer or disposition sale, or if a current 
public offering statement was not given to the purchaser in 
accordance with section 83.24, unless subsequently thereto the 
subdivision is registered under this chapter and in connection 
therewith, the purchaser has received a written offer to 
repurchase the lot, parcel, unit, or interest for cash payable 
on closing of the repurchase, together with interest thereon 
from the date of purchase at the legal rate or at the rate 
charged on any lien paid by the purchaser, whichever is higher, 
less the amount of any income received from the lot, parcel, 
unit, or interest, and the purchaser has failed to accept the 
offer in writing within 30 days of its receipt.  No offer of 
repurchase shall be effective unless a duplicate copy thereof 
has been filed with the commissioner at least 20 days prior to 
its delivery to the offeree and the commissioner has not 
objected to the offer within that time.  The offer of repurchase 
shall be in the form and contain the information the 
commissioner by rule or order prescribes.  If the purchaser no 
longer owns the lot, parcel, unit, or interest, the purchaser 
shall be entitled to maintain an action at law, and the damages 
shall be the consideration paid for the lot, parcel, unit, or 
interest together with interest thereon as specified above from 
the date of acquisition to the date of disposition, plus costs 
and reasonable attorney's fees, less the value received for the 
lot, parcel, unit, or interest at the date of disposition.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14. 
    Subd. 3.  [RESCISSION.] A purchaser has an unconditional 
right to rescind any contract, agreement, or other evidence of 
indebtedness, or revoke any offer, at any time prior to or 
within five days after the date the purchaser actually receives 
a legible copy of the binding contract, agreement, or other 
evidence of indebtedness or offer and the public offering 
statement as provided in section 83.24.  Predating of a document 
does not affect the time in which the right to rescind may be 
exercised.  The burden of proving that the document was not 
predated is upon the subdivider or lender.  
    Subd. 4.  [DOCUMENT LABELING.] Each contract, agreement, or 
other evidence of indebtedness shall be prominently labeled and 
captioned that it is a document taken in connection with a sale 
or other disposition of lands under sections 83.20 to 83.42, and 
sections 28 and 29.  
    Subd. 5.  [NOTICE TO PURCHASER.] Each such The first 
contract, agreement, or other evidence of indebtedness shall 
prominently contain upon its face the following notice printed 
in at least 16 point bold type, which shall be at least 4 point 
type larger than the body of the document, stating, in one of 
the following forms: 
  "Notice to Purchaser  
    You are entitled to rescind this agreement at any time if 
you have not received the public offering statement in advance 
of your signing of this agreement.  In addition, you are 
entitled to rescind this agreement for any reason within five 
days from the day you actually receive a legible copy of this 
document signed by all parties.  Such rescission must be in 
writing, and mailed to the subdivider or his agent or the lender 
at the address stated in this document.  Upon rescission, you 
will receive a refund of all moneys paid."  
    (a) Registration by notification:  "Notice to Purchaser" -- 
"You are entitled to rescind this agreement for any reason 
within five days from the date you actually received a legible 
copy of this document signed by all parties.  The rescission 
must be in writing and mailed to the subdivider or his agent or 
the lender at the address stated in this document.  Upon 
rescission you will receive a refund of all money paid."  or;  
    (b) Registration by qualification:  "Notice to Purchaser" 
-- "You are entitled to rescind this agreement for any reason 
within five days from the date you actually received a legible 
copy of this document signed by all parties and a public 
offering statement.  The rescission must be in writing and 
mailed to the subdivider or his agent or the lender at the 
address stated in this document.  Upon rescission you will 
receive a refund of all money paid."  
    The contract, agreement, or other evidence of indebtedness 
shall contain sufficient space upon its face in immediate 
proximity to the above notice for the signature of each 
purchaser obligated under such instrument, acknowledging that 
such purchaser has read the notice.  
    Subd. 6.  [RESCISSION NOTICE.] Rescission occurs when the 
purchaser gives written notice of rescission to the subdivider 
or his agent or the lender at the address stated in the 
contract, agreement, or other evidence of indebtedness.  Notice 
of rescission, if given by mail is effective when it is 
deposited in a mailbox properly addressed and postage prepaid.  
A notice of rescission given by the purchaser need not take a 
particular form and is sufficient if it indicates by any form of 
written expression the intention of the purchaser not to be 
bound by the contract, agreement, or other evidence of 
indebtedness.  
    Subd. 7.  [WAIVER PROHIBITED.] No act of a purchaser shall 
be effective to waive the right to rescind as provided in this 
section.  
    Sec. 13.  Minnesota Statutes 1982, section 83.29, is 
amended by adding a subdivision to read:  
    Subd. 4.  A document is filed when it is received by the 
commissioner and the proper fee is paid.  
    Sec. 14.  Minnesota Statutes 1982, section 83.29, is 
amended by adding a subdivision to read:  
    Subd. 5.  No person shall publish or cause to be published 
in this state any advertisement offering subdivided lands 
subject to the registration requirements of section 83.23 which 
is false, misleading, or deceptive.  The commissioner has 15 
days in which to deny the advertising.  
    Sec. 15.  Minnesota Statutes 1982, section 83.30, is 
amended to read:  
    83.30 [ANNUAL REPORT.] 
    Subdivision 1.  [FORM; DUE DATE.] Within 120 days after the 
fiscal year end of the subdivider During the period a 
registration is effective, the subdivider shall file a an annual 
report in the form prescribed by rule of a format the 
commissioner may by rule prescribe.  Every annual report shall 
be accompanied by a fee of $100 due by the 120th day following 
the end of the subdivider's fiscal year, unless extended in 
writing by the commissioner for good cause.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Subd. 2.  [FEE.] The commissioner may permit the filing of 
annual reports within 30 days after the annual anniversary date 
of a consolidated registration in lieu of the annual anniversary 
date of the original registration Every annual report filed 
pursuant to section 83.23, subdivision 2, shall be accompanied 
by a fee of $50.  Every annual report filed pursuant to section 
83.23, subdivision 3, shall be accompanied by a fee of $100. 
    Subd. 3.  [FAILURE TO FILE; EFFECT.] Failure to file the 
annual report shall constitute be cause for cancellation of the 
registration.  In the event of such cancellation, If canceled, 
the registration may be reinstated at a subsequent date 
following a the filing of the report and payment of the 
appropriate fees. 
    Sec. 16.  Minnesota Statutes 1982, section 83.31, is 
amended to read:  
    83.31 [CHANGES SUBSEQUENT TO REGISTRATION.] 
    Subdivision 1.  [REPORT OF SALES.] All advertising not 
accompanying the original application shall be submitted to and 
approved by the commissioner prior to its use in this state The 
commissioner may by rule or order require the subdivider or his 
agent to submit reports of sales.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Subd. 2.  [REPORT OF MATERIAL CHANGES.] The A subdivider or 
his agent shall immediately within 30 days report any material 
changes in the information contained in an the application for 
registration or the exhibits appended thereto on file with the 
commissioner by submitting an application to amend accompanied 
by an amendment fee of $25.  
    Subd. 3.  [RULES; FORM OF AMENDMENT.] The commissioner may 
by rule define what shall be considered a material change and 
prescribe the format for an application to amend.  The amendment 
shall become effective when ordered by the commissioner.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Sec. 17.  Minnesota Statutes 1982, section 83.33, 
subdivision 1, is amended to read:  
    Subdivision 1.  [COMPLIANCE WITH RULES.] A person may not 
sell lots, units, parcels, or interests within a subdivision 
subject to a blanket encumbrance unless he has complied with 
such rules as the commissioner may promulgate concerning such 
sales, which rules shall be specific requirements for the 
protection of the purchaser.  
    Sec. 18.  Minnesota Statutes 1982, section 83.33, 
subdivision 2, is amended to read: 
    Subd. 2.  [USE OF PROHIBITED PRACTICE.] The act, use, or 
employment by any person of any fraud, false pretense, false 
promise, or misrepresentation prohibited practice as set forth 
in section 8, with the intent that others rely thereon in 
connection with the disposition offer or sale of subdivided 
lands not excepted from sections 83.20 to 83.42, and sections 28 
and 29 is a violation of sections 83.20 to 83.42, and sections 
28 and 29, whether or not any person has in fact been misled, 
deceived, or damaged thereby.  
    Sec. 19.  Minnesota Statutes 1982, section 83.34, 
subdivision 1, is amended to read:  
    Subdivision 1.  The commissioner may make necessary public 
or private investigations within or outside of this state to 
determine whether any person has violated or is about to violate 
sections 83.20 to 83.42, and sections 28 and 29 or any rule or 
order hereunder or to aid in the enforcement of sections 83.20 
to 83.42, and sections 28 and 29 or in the prescribing of rules 
and forms hereunder.  
    Sec. 20.  Minnesota Statutes 1982, section 83.35, is 
amended to read:  
    83.35 [ENFORCEMENT; POWERS OF COMMISSIONER.] 
    Subdivision 1.  [REGISTRATION; REVOCATION OR SUSPENSION.] 
After notice and hearing, the commissioner may suspend or revoke 
a registration, and may issue a cease and desist order to any 
subdivider or other person if he finds that the subdivider or 
person has: 
    (1) Violated any provision of sections 83.20 to 83.42, and 
sections 28 and 29 or any lawful order or rule of the 
commissioner; 
    (2) Directly or through an agent or employee knowingly 
engaged in any false, deceptive, or misleading advertising, 
promotional or sales methods to offer to dispose of an interest 
in subdivided lands; 
    (3) Made any material change in the advertising, plan of 
disposition, or development of the subdivided lands subsequent 
to the order of registration without obtaining prior approval 
from the commissioner; 
    (4) Offered or disposed of sold any subdivided lands which 
have not been registered with the commissioner unless the 
subdivided lands or dispositions sales thereof are exempt from 
registration pursuant to section 83.26; 
    (5) Been convicted, or if any of the subdivider's officers, 
directors, partners, principals, or agents has been convicted, 
of a crime involving fraud, deception, false pretenses, 
misrepresentation, false advertising, or dishonest dealing in 
real estate transactions, subsequent to the time of the filing 
of the application for registration; 
    (6) Disposed of, concealed, or diverted any funds or assets 
of any person so as to defeat the rights of subdivision 
purchasers; 
    (7) Failed faithfully to perform any stipulation or 
agreement made with the commissioner as an inducement to grant 
any registration, to reinstate any registration, or to permit 
any promotional plan or public offering statement; 
    (8) Made misrepresentations or concealed material facts in 
an application for registration; 
    (9) Permanently or temporarily been enjoined by any court 
of competent jurisdiction from engaging in or continuing any 
conduct or practice involving any aspect of land sales; or 
    (10) Failed to pay any filing or inspection fee required by 
sections 83.20 to 83.42, and sections 28 and 29.  
    Subd. 2.  [SERVICE OF PROCESS.] When initiating a 
proceeding under subdivision 1, the commissioner shall serve 
upon the subdivider or other person by personal service or by 
certified mail, a written notice of hearing setting the date, 
time, and place of the hearing and a statement of the 
allegations upon which the cease and desist order, suspension or 
revocation will be based.  
    Subd. 3.  [CEASE AND DESIST ORDER.] If the commissioner 
determines that the public interest may be harmed by delay in 
issuing an order under this section, he may issue a temporary 
cease and desist order or a temporary order suspending the 
registration.  Prior to issuing such an order, the commissioner 
shall whenever possible by telephone or otherwise give notice to 
the subdivider or other person of his intention to issue the 
order The commissioner is empowered to issue and cause to be 
served an order requiring a person to cease and desist from 
violations of sections 83.20 to 83.42, and sections 28 and 29. 
The order shall state the reasons for its issuance and shall 
either order a hearing, which shall be set for no later than 20 
days from the date of the order, or specify that upon the 
written request of the applicant, the matter will be set for 
hearing within 15 days after receipt of the request, provided 
that upon the request of the applicant a hearing may be held 
subsequent to the expiration of either period specified herein. 
All hearings shall be conducted in accordance with the 
provisions of chapter 14.  If the person to whom a cease and 
desist order is issued fails to appear at the hearing after 
being duly notified, he shall be deemed in default, and the 
proceeding may be determined against him upon consideration of 
the cease and desist order, the allegations of which may be 
deemed to be true.  If no hearing is requested within 30 days, 
the order will become final.  All hearings must be conducted in 
accordance with chapter 14.  
    Subd. 4.  [AMENDMENT; REGISTRATION SUSPENSION.] If at any 
time subsequent to the issuance of the order of registration, a 
change occurs affecting any material fact required to be 
contained in the application, the subdivider shall file an 
amendment thereto within 30 days.  Upon receipt of any amendment 
an application to amend or other information indicating such a 
material change in the information on file with the 
commissioner, and, if the commissioner determines such action to 
be necessary or appropriate in the public interest or for the 
protection of purchasers, he may, by order, suspend the 
registration until such time as he is satisfied that the 
subdivider or his agent has made the proper changes in the 
public offering statement, advertising, and promotional plan to 
provide full and fair disclosure of the material change to the 
public.  
    Subd. 5.  [HEARING.] In the event the commissioner issues 
an order under subdivision 3 or 4, the order shall include in 
its terms a provision for a hearing within 10 days of the date 
of the order, specifying a date, time, and place for the 
hearing.  Unless otherwise agreed, within 10 20 days of the 
close of the hearing record, the commissioner shall issue an 
order either vacating, modifying, or continuing the temporary 
order.  If the temporary order is continued or modified he shall 
state his reasons therefor.  
    Sec. 21.  Minnesota Statutes 1982, section 83.36, is 
amended to read:  
    83.36 [INJUNCTIONS; RECEIVERS.] 
    If it appears that a person has engaged or is about to 
engage in an act or practice constituting a violation of 
sections 83.20 to 83.42, and sections 28 and 29 or a rule or 
order hereunder, the commissioner, with or without prior 
administrative proceedings, may bring an action in district 
court to enjoin the acts or practices and to enforce compliance 
with sections 83.20 to 83.42, and sections 28 and 29 or any rule 
or order hereunder.  Upon proper showing, injunctive relief or 
temporary restraining orders shall be granted and a receiver or 
conservator may be appointed.  The commissioner is not required 
to post a bond in any court proceedings.  
    Sec. 22.  Minnesota Statutes 1982, section 83.37, is 
amended to read: 
    83.37 [PENALTIES; CIVIL REMEDIES.] 
    Subdivision 1.  [CIVIL FINE.] Any person who knowingly 
authorizes, directs, or aids in the publication, advertisement, 
distribution, or circularization of any false statement or 
representation concerning any subdivided lands required to be 
registered under sections 83.20 to 83.42 and every such person 
who, with knowledge that any advertisement, pamphlet, 
prospectus, or letter concerning any such lands contains any 
written statement that is false or fraudulent, issues, 
circulates, publishes, or distributes the same, or shall cause 
the same to be issued, circulated, published or distributed, 
shall be guilty of a gross misdemeanor violates section 83.23, 
83.24, 83.28, 83.29, or section 29 shall be subject to a fine of 
not more than $1,000 for each violation.  A fine authorized by 
this subdivision may be imposed in a civil action brought by the 
attorney general on behalf of the state of Minnesota, and shall 
be deposited in the state treasury.  Every person, agent, or 
employee of a person who materially aids in the act or 
transaction constituting the violation shall be liable jointly 
and severally with and to the same extent as the person.  
    Subd. 2.  [MISDEMEANOR PENALTY.] Any violation of sections 
83.20 to 83.42 and any failure to comply with any provisions of 
sections 83.20 to 83.42 not enumerated in subdivision 1 shall be 
a misdemeanor.  
    Subd. 3.  [FAILURE TO PAY FEES.] Any person who fails to 
pay the filing or inspection fees required by sections 83.20 to 
83.42, and sections 28 and 29, and continues to dispose of or 
offers to dispose of subdivided lands, is liable civilly in an 
action brought by the attorney general on behalf of the 
commissioner for a penalty in an amount equal to treble the 
unpaid fees. 
    Subd. 4.  [PROHIBITED PRACTICES; REMEDIES.] In the event of 
any fraud, false pretense, false promise, misrepresentation, 
unfair or deceptive acts prohibited practice as set forth in 
section 29, in addition to any other remedies, and whether or 
not the purchaser has in fact been misled, deceived or damaged 
thereby, the purchaser may recover the consideration paid for 
the lot, parcel, unit, or interest in subdivided lands together 
with interest thereon at the legal rate of six percent per year 
from the date of payment, property taxes paid, costs, and 
reasonable attorneys fees, less the amount of any income 
received from the subdivided lands, upon tender of appropriate 
instruments of reconveyance.  If the purchaser no longer owns 
the lot, parcel, unit, or interest in subdivided lands, he may 
recover the amount that would be recoverable upon a tender of a 
reconveyance, less the value of the land when disposed of and 
less interest at the legal rate of six percent per year on that 
amount from the date of disposition sale.  
    (a) A tender of reconveyance may be made at any time before 
the entry of judgment.  
    (b) Every person who directly or indirectly controls a 
subdivider who may be liable under sections 83.20 to 83.42, and 
sections 28 and 29, every general partner, officer, or director 
of a subdivider, every person occupying a similar status or 
performing a similar function, every employee of the subdivider 
who materially aids in the disposition, and every agent who 
materially aids in the disposition is also liable jointly and 
severally with and to the same extent as the subdivider, unless 
the person otherwise liable sustains the burden of proof that he 
did not know and in the exercise of reasonable care could not 
have known of the existence of the facts by reason of which the 
liability is alleged to exist.  There is a right to contribution 
as in cases of contract among persons so liable.  
    (c) Every person whose name or occupation gives authority 
to a statement which with his consent has been used in an 
application for registration, public offering statement, or 
advertising, if he is not otherwise associated with the 
subdivision and development plan in a material way, is liable 
only for false statements and omissions in his statement and 
only if it is proved he knew or reasonably should have known of 
the existence of the true facts by reason of which the liability 
is alleged to exist.  
    (d) An action shall not be commenced pursuant to this 
subdivision later than three years from the date the person 
discovers the omission, fraud, false pretense, false promise, 
misrepresentation, or unfair or deceptive act any prohibited 
practice set forth in section 29.  
    Subd. 5.  [OTHER REMEDIES.] The rights and remedies 
provided by this chapter shall be in addition to any and all 
other rights and remedies that may exist at law or in equity.  
    Sec. 23.  Minnesota Statutes 1982, section 83.38, 
subdivision 2, is amended to read:  
    Subd. 2.  The commissioner may, upon request and upon the 
payment of the sum of $20 $50, grant a request for a written 
opinion concerning the availability of any exemption in section 
83.26 or interpreting any provisions of sections 83.20 to 83.42, 
and sections 28 and 29.  
    Sec. 24.  Minnesota Statutes 1982, section 83.39, is 
amended to read:  
    83.39 [SERVICE OF PROCESS.] 
    Subdivision 1.  [PROCEDURE.] In addition to the methods of 
service provided for in any other provision of law, service may 
be made by delivering a copy of the process to the office of the 
commissioner if the plaintiff, which may be the commissioner in 
a proceeding instituted by him, does both of the following:  
    (a) Sends a copy of the process and of the pleading or 
order by certified mail to the defendant or respondent at his 
last known address.  
    (b) Files with the court an affidavit of compliance with 
this section at the time of the filing of the complaint or other 
pleading or order Every applicant for registration under 
sections 83.20 to 83.42, and sections 28 and 29 shall file with 
the commissioner, in a format as by rule may be prescribed, an 
irrevocable consent appointing the commissioner or 
commissioner's successor to be the applicant's attorney to 
receive service of any lawful process in any noncriminal suit, 
action, or proceeding against the applicant or his or her 
successor, executor, or administrator which arises under 
sections 83.20 to 83.42, and sections 28 and 29 or any rule or 
order thereunder after the consent has been filed, with the same 
force and validity as if served personally on the person filing 
the consent.  Service may be made by leaving a copy of the 
process in the office of the commissioner, but it is not 
effective unless (a) the plaintiff, who may be commissioner in a 
suit, action, or proceeding instituted by him or her, forthwith 
sends notice of the service and a copy of the process by 
registered mail to the defendant or respondent at his or her 
last address on file with the commissioner, and (b) the 
plaintiff's affidavit of compliance with this subdivision is 
filed in the case on or before the return day of the process, if 
any, or within such further time as the court allows.  
    The rulemaking authority in this subdivision does not 
include temporary rulemaking authority pursuant to chapter 14.  
    Subd. 2.  [SERVICE ON COMMISSIONER.] If When any person, 
including any nonresident of this state, engages in conduct 
prohibited or made actionable by sections 83.20 to 83.42, and 
sections 28 and 29, or any rule or order hereunder thereunder, 
and the person has not filed a consent to service of process 
under subdivision 1 and personal jurisdiction over him this 
person cannot otherwise be obtained in this state, the that 
conduct authorizes the shall be considered equivalent to the 
person's appointment of the commissioner to receive service of 
or the commissioner's successor to be the person's attorney to 
receive service of any lawful process in any noncriminal suit, 
action, or proceeding against him the commissioner or his the 
commissioner's successor, executor, or administrator which grows 
out of the that conduct and which is brought under sections 
83.20 to 83.42, and sections 28 and 29 or any rule or order 
hereunder thereunder, with the same force and validity as if 
served on him the person personally.  Notice shall be given as 
provided in subdivision 1 Service may be made by leaving a copy 
of the process in the office of the commissioner, and it is not 
effective unless (a) the plaintiff, who may be the commissioner 
in a suit, action, or proceeding instituted by the commissioner, 
forthwith sends notice of the service and a copy of the process 
by registered mail to the defendant or respondent at his last 
known address or takes other steps which are reasonably 
calculated to give actual notice, and (b) the plaintiff's 
affidavit of compliance with this subdivision is filed in the 
the case on or before the return day of the process, if any, or 
within such further time as the court allows.  
    Subd. 3.  [CONTINUANCE.] When process is served under this 
section, the court, or the commissioner in a proceeding before 
him, shall order such continuance as may be necessary to afford 
the defendant or respondent reasonable opportunity to defend.  
    Sec. 25.  Minnesota Statutes 1982, section 83.40, is 
amended to read:  
    83.40 [SCOPE OF SECTIONS 83.20 TO 83.42, AND SECTIONS 28 
AND 29.] 
    Subdivision 1.  [IN-STATE OFFER OR SALE.] The provisions of 
sections 83.20 to 83.42, and sections 28 and 29 concerning 
offers and dispositions sales of subdivided lands apply when an 
offer or disposition sale is made in this state.  
    Subd. 2.  [IN-STATE OFFER OR SALE DEFINED.] For the purpose 
of sections 83.20 to 83.42, and sections 28 and 29, an offer or 
disposition sale is made in this state, whether or not either 
party is then present in this state, when: 
    (a) The offer originates from this state, or 
    (b) The offer is directed by the offeror to this state and 
received by the offeree in this state, or 
    (c) The subdivided lands are located in this state.  
    Subd. 3.  [EXCLUSIONS.] An offer or disposition sale is not 
made in this state when the a publisher circulates or there is 
circulated in on his behalf in this state any bona fide 
newspaper or other publication of general, regular, and paid 
circulation which is not published in this state, or a radio or 
television program originating outside this state is received in 
this state.  
    Subd. 4.  [LIEN OF MORTGAGE.] Notwithstanding any provision 
of sections 83.20 to 83.42, and sections 28 and 29 to the 
contrary, sections 83.20 to 83.42, and sections 28 and 29 do not 
apply to or invalidate the lien of a mortgagee, nonaffiliated 
with the subdivider, when said lien attaches to land pledged as 
collateral in a transaction negotiated directly with the 
purchaser.  
    Sec. 26.  Minnesota Statutes 1982, section 83.41, is 
amended to read:  
    83.41 [INTERSTATE RENDITION.] 
    In the proceedings for extradition of a person charged with 
a crime under sections 83.20 to 83.42, and sections 28 and 29, 
it need not be shown that the person whose surrender is demanded 
has fled from justice or at the time of the commission of the 
crime was in the demanding or other state. 
    Sec. 27.  Minnesota Statutes 1982, section 83.42, is 
amended to read: 
    83.42 [STATUTE OF LIMITATIONS.] 
    The statute of limitations for actions arising under this 
chapter shall be three years and shall not begin to run with 
respect to any civil or criminal cause of action arising out of 
the disposition of a lot or parcel in violation of sections 
83.20 to 83.42 under this chapter, other than those set forth in 
section 83.37, subdivision 4, clause (d), until a conveyance 
describing such lot or parcel is recorded with the appropriate 
recording authority.  This section does not prohibit the 
maintenance of any action before the recording of such 
conveyance.  
    Sec. 28.  [83.43] [CRIMINAL PENALTIES.] 
    Any person who willfully violates any provision of section 
83.23 or section 29 or any order of the commissioner under 
sections 83.20 to 83.42, this section, and section 29 of which 
he has notice, may be fined not more than $5,000 or imprisoned 
not more than five years or both.  Each of the acts specified 
shall constitute a separate offense and a prosecution or 
conviction for any one of the offenses shall not bar prosecution 
or conviction for any other offense.  
    Sec. 29.  [83.44] [PROHIBITED PRACTICES.] 
    It is unlawful for any person, in connection with the offer 
or sale of any subdivided land or interests therein, directly or 
indirectly:  
    (a) to employ any device, scheme, or artifice to defraud;  
    (b) to make any untrue statement of a material fact or to 
omit to state material facts necessary in order to make the 
statements made, in the light of the circumstances under which 
they are made, not misleading; or 
    (c) to engage in any act, practice, or course of business 
which operates or would operate as a fraud or deceit upon any 
person.  
    Sec. 30.  [REPEALER.] 
    Minnesota Statutes 1982, section 83.33, subdivision 3, is 
repealed.  
    Sec. 31.  [EFFECTIVE DATE.] 
    Sections 1 to 30 are effective September 1, 1984. 
    Approved April 19, 1984