Minnesota Session Laws - 1986, Regular Session

  

                         Laws of Minnesota 1986 

                        CHAPTER 342-H.F.No. 1821 
           An act relating to real property; requiring 
          condominium plats after July 31, 1986; requiring 
          certification by a registered land surveyor only, that 
          condominium plat accurately depicts certain required 
          information in 515A.2-110; amending Minnesota Statutes 
          1984, sections 515A.1-102; 515A.1-103; 515A.2-105; 
          515A.2-110; 515A.2-114; 515A.2-115; 515A.2-116; 
          515A.4-102; 515A.4-107; 515A.4-116; and 515A.4-117; 
          and Minnesota Statutes 1985 Supplement, sections 
          389.09; 508.82; and 508A.82. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1985 Supplement, section 
389.09, is amended to read: 
    389.09 [APPROVAL OF PLATS AND SURVEYS AND CONDOMINIUM FLOOR 
PLANS PLATS IN CERTAIN COUNTIES.] 
    Subdivision 1.  [PLATS AND SURVEYS IN CERTAIN COUNTIES.] In 
any county in which there is a county surveyor and the surveyor 
maintains an office on a full-time basis in a building 
maintained by the county for county purposes, the county board 
may by ordinance adopted in accordance with section 375.51 
require that each subdivision plat or registered land survey 
plat shall be approved by the county surveyor before recording.  
The proprietor of the plat shall be charged a fee for the 
service in accordance with a schedule established by the board 
of commissioners of the county. 
    Subd. 2.  [CONDOMINIUM FLOOR PLANS PLATS.] A county board 
may, by ordinance adopted in accordance with section 375.51, 
require that each condominium floor plan plat submitted for 
recordation after July 31, 1985, be approved by the county 
surveyor or other licensed surveyor hired for this purpose by 
the county, for compliance with section 515A.2-110, before 
recording.  The process of approving the floor plans condominium 
plat must be conducted in an expeditious manner so as not to 
unduly delay the recording of the floor plans condominium plat.  
The proprietor of the condominium floor plan plat may be charged 
a reasonable fee for the service in accordance with a schedule 
established by resolution passed by the governing body of the 
county. 
     Sec. 2.  Minnesota Statutes 1985 Supplement, section 
508.82, is amended to read: 
     508.82 [REGISTRAR'S FEES.] 
     The fees to be paid to the registrar shall be as follows: 
     (1) of the fees provided herein, five percent of the fees 
collected under clauses (3), (4), (11), (13), (14), (15), (17), 
and (18) for filing or memorializing shall be paid to the state 
treasurer and credited to the real estate assurance account; 
     (2) for registering each original certificate of title, and 
issuing a duplicate of it, $20; 
     (3) for registering each instrument transferring the fee 
simple title for which a new certificate of title is issued and 
for the issuance and registration of the new certificate of 
title, $20; 
     (4) for the entry of each memorial on a certificate and 
endorsements upon duplicate certificates, $10; 
     (5) for issuing each mortgagee's or lessee's duplicate, $10;
     (6) for issuing each residue certificate, $20; 
     (7) for exchange certificates, $10 for each certificate 
canceled and $10 for each new certificate issued; 
     (8) for each certificate showing condition of the register, 
$10; 
     (9) for any certified copy of any instrument or writing on 
file in his office, the same fees allowed by law to county 
recorders for like services; 
     (10) for a noncertified copy of any instrument or writing 
on file in the office of the registrar of titles, or any 
specified page or part of it, an amount as determined by the 
county board for each page or fraction of a page specified.  If 
computer or microfilm printers are used to reproduce the 
instrument or writing, a like amount per image;  
     (11) for filing two copies of any plat in the office of the 
registrar, $30; 
     (12) for any other service under this chapter, such fee as 
the court shall determine; 
     (13) for issuing a duplicate certificate of title pursuant 
to the directive of the examiner of titles in counties in which 
the compensation of the examiner is paid in the same manner as 
the compensation of other county employees, $50, plus $10 to 
memorialize; 
    (14) for issuing a duplicate certificate of title pursuant 
to the directive of the examiner of titles in counties in which 
the compensation of the examiner is not paid by the county or 
pursuant to an order of the court, $10; 
    (15) for filing a condominium floor plan plat or an 
amendment to it in accordance with chapter 515, $30; 
    (16) for a copy of a condominium floor plan plat filed 
pursuant to chapters 515 and 515A, the fee shall be $1 for each 
page of the floor plan condominium plat with a minimum fee of 
$10;  
    (17) for filing a condominium declaration and floor 
plans plat or an amendment to it in accordance with chapter 
515A, $10 for each certificate upon which the document is 
registered and $30 for the filing of the floor plans condominium 
plat or an amendment thereto; 
    (18) for the filing of a certified copy of a plat of the 
survey pursuant to section 508.23 or 508.671, $10;  
    (19) for filing a registered land survey in triplicate in 
accordance with section 508.47, subdivision 4, $30; 
    (20) for furnishing a certified copy of a registered land 
survey in accordance with section 508.47, subdivision 4, $10. 
    Sec. 3.  Minnesota Statutes 1985 Supplement, section 
508A.82, is amended to read: 
     508A.82 [REGISTRAR'S FEES.] 
     The fees to be paid to the registrar shall be as follows:  
     (1) of the fees provided herein, five percent of the fees 
collected under clauses (3), (4), (11), (13), (14), (15), and 
(17) for filing or memorializing shall be paid to the state 
treasurer and credited to the real estate assurance account;  
     (2) for registering each original CPT, and issuing a 
duplicate of it, $20;  
     (3) for registering each instrument transferring the fee 
simple title for which a new CPT is issued and for the issuance 
and registration of the new CPT, $20;  
     (4) for the entry of each memorial on a certificate and 
endorsements upon duplicate CPTs, $10;  
     (5) for issuing each mortgagee's or lessee's duplicate, $10;
     (6) for issuing each residue CPT, $20;  
     (7) for exchange CPTs, $10 for each CPT canceled and $10 
for each new CPT issued;  
     (8) for each certificate showing condition of the register, 
$10;  
     (9) for any certified copy of any instrument or writing on 
file in his office, the same fees allowed by law to county 
recorders for like services;  
     (10) for a noncertified copy of any instrument or writing 
on file in the office of the registrar of titles, or any 
specified page or part of it, an amount as determined by the 
county board for each page or fraction of a page specified.  If 
computer or microfilm printers are used to reproduce the 
instrument or writing, a like amount per image;  
     (11) for filing two copies of any plat in the office of the 
registrar, $30;  
     (12) for any other service under sections 508A.01 to 
508A.85, the fee the court shall determine;  
    (13) for issuing a duplicate CPT pursuant to the directive 
of the examiner of titles in counties in which the compensation 
of the examiner is paid in the same manner as the compensation 
of other county employees, $50, plus $10 to memorialize;  
    (14) for issuing a duplicate CPT pursuant to the directive 
of the examiner of titles in counties in which the compensation 
of the examiner is not paid by the county or pursuant to an 
order of the court, $10;  
    (15) for filing a condominium floor plan plat or an 
amendment to it in accordance with chapter 515, $30;  
    (16) for a copy of a condominium floor plan plat filed 
pursuant to chapters 515 and 515A, the fee shall be $1 for each 
page of the floor plan plat with a minimum fee of $10;  
    (17) for filing a condominium declaration and floor 
plans condominium plat or an amendment to it in accordance with 
chapter 515A, $10 for each certificate upon which the document 
is registered and $30 for the filing of the floor plans 
condominium plat or an amendment to it;  
    (18) in counties in which the compensation of the examiner 
of titles is paid in the same manner as the compensation of 
other county employees, for each parcel of land contained in the 
application for a CPT, as the number of parcels is determined by 
the examiner, $50; 
    (19) for filing a registered land survey in triplicate in 
accordance with section 508A.47, subdivision 4, $30; 
    (20) for furnishing a certified copy of a registered land 
survey in accordance with section 508A.47, subdivision 4, $10. 
    Sec. 4.  Minnesota Statutes 1984, section 515A.1-102, is 
amended to read: 
    515A.1-102 [APPLICABILITY.] 
    (a) Sections 515A.1-105 (Property Taxation), 515A.1-106 
(Applicability of Local Ordinances, Regulations, and Building 
Codes), 515A.1-107 (Eminent Domain), 515A.2-103 (Construction 
and Validity of Declaration and Bylaws), 515A.2-104 (Description 
of Units), 515A.3-102 (a) (1) to (5) and (9) to (12) (Powers of 
Unit Owners Association), 515A.3-111 (Tort and Contract 
Liability), 515A.3-112 (Insurance), 515A.3-115 (Lien for 
Assessments), 515A.3-116 (Association Records), 515A.4-107 
(Resales of Units), and 515A.1-103 (Definitions) to the extent 
necessary in construing any of those sections, apply to all 
condominiums created in this state prior to August 1, 1980; 
provided, however, that these sections apply only with respect 
to events and circumstances occurring after July 31, 1980, and 
do not invalidate existing provisions of the declaration, 
bylaws, or floor plans of those condominiums.  
    (b) Sections 515A.1-101 to 515A.4-117 apply to all 
condominiums created within this state after August 1, 1980.  
The provisions of sections 515.01 to 515.29 do not apply to 
condominiums created after August 1, 1980 and do not invalidate 
any amendment to the declaration, bylaws, or floor plans of any 
condominium created before August 1, 1980, or to a condominium 
plat of any condominium created before August 1, 1986, if the 
amendment would be permitted by sections 515A.1-101 to 
515A.4-117.  The amendment must be adopted in conformity with 
the procedures and requirements specified by those instruments 
and by sections 515.01 to 515.29.  If the amendment grants to 
any person any rights, powers or privileges permitted by 
sections 515A.1-101 to 515A.4-117, all correlative obligations, 
liabilities, and restrictions in sections 515A.1-101 to 
515A.4-117 also apply to that person.  
    Sec. 5.  Minnesota Statutes 1984, section 515A.1-103, is 
amended to read: 
     515A.1-103 [DEFINITIONS.] 
    In the declaration and bylaws, unless specifically provided 
otherwise or the context otherwise requires, and in sections 
515A.1-101 to 515A.4-117:  
    (1) "Additional real estate" means real estate that may be 
added to a flexible condominium. 
    (2) "Affiliate of a declarant" means any person who 
controls, is controlled by, or is under common control with a 
declarant.  A person "controls" a declarant if the person (i) is 
a general partner, officer, director, or employer of the 
declarant or (ii) directly or indirectly or acting in concert 
with one or more other persons, or through one or more 
subsidiaries, owns, controls, holds with power to vote, or holds 
proxies representing, more than 20 percent of the voting 
interest in the declarant, or (iii) controls in any manner the 
election of a majority of the directors of the declarant, or 
(iv) has contributed more than 20 percent of the capital of the 
declarant.  A person "is controlled by" a declarant if the 
declarant (i) is a general partner, officer, director, or 
employer of the person or (ii) directly or indirectly or acting 
in concert with one or more other persons, or through one or 
more subsidiaries, owns, controls, holds with power to vote, or 
holds proxies representing, more than 20 percent of the voting 
interest in the person, or (iii) controls in any manner the 
election of a majority of the directors of the person, or (iv) 
has contributed more than 20 percent of the capital of the 
person.  Control does not exist if the powers described in this 
paragraph are held solely as security for an obligation and are 
not exercised. 
    (3) "Association" or "unit owners association" means the 
unit owners association organized under section 515A.3-101. 
    (4) "Common element" means all portions of a condominium 
other than the units. 
    (5) "Common expenses" means expenditures made or 
liabilities incurred by or on behalf of the association, 
together with any allocations to reserves. 
    (6) "Common expense liability" means the liability for 
common expenses allocated to each unit pursuant to section 
515A.2-108. 
    (7) "Condominium" means real estate, portions of which are 
designated for separate ownership and the remainder of which is 
designated for common ownership solely by the owners of those 
portions.  Real estate is not a condominium unless the undivided 
interests in the common elements are vested in the unit owners. 
    (8) "Conversion condominium" means a condominium in which a 
building was at any time before the recording of the declaration 
wholly or partially occupied by persons other than purchasers 
and persons who occupied with the consent of the purchasers.  
    (9) "Declarant" means:  
    (a) if the condominium has been created, (1) any person who 
has executed a declaration or an amendment to a declaration to 
add additional real estate, other than persons holding interests 
in the real estate solely as security for an obligation, persons 
whose interests in the real estate will not be conveyed to unit 
owners, or, in the case of a leasehold condominium, a lessor who 
possesses no special declarant rights and who is not an 
affiliate of a declarant who possesses special declarant rights, 
or (2) any person who succeeds under section 515A.3-104 to any 
special declarant rights; or 
    (b) any person who has offered prior to creation of a 
condominium to dispose of his interest in a unit to be created 
and not previously disposed of.  
    (10) "Dispose" or "disposition" means a voluntary transfer 
of any legal or equitable interest in a unit, other than as 
security for an obligation. 
    (11) "Flexible condominium" means a condominium to which 
additional real estate may be added.  
    (12) "Leasehold condominium" means a condominium in which 
all of the real estate is subject to a lease, the expiration or 
termination of which will terminate the condominium. 
    (13) "Limited common element" means a portion of the common 
elements allocated by the declaration or by operation of section 
515A.2-102(2) or (4) for the exclusive use of one or more but 
fewer than all of the units. 
    (14) "Person" means a natural person, corporation, 
partnership, trust, or other entity, or any combination thereof. 
    (15) "Purchaser" means any person, other than a declarant, 
who prior to creation of the condominium enters into a purchase 
agreement with a declarant or who by means of a voluntary 
transfer after creation of the condominium holds a legal or 
equitable interest in a unit, other than (i) a leasehold 
interest (including renewal options) of less than three years, 
or (ii) as security for an obligation. 
    (16) "Real estate" means any leasehold for three years or 
more or other estate or interest in, over, or under land, 
including structures, fixtures, and other improvements and 
interests which by custom, usage, or law pass with a conveyance 
of land though not described in the contract of sale or 
instrument of conveyance.  "Real estate" includes parcels with 
or without upper or lower boundaries. 
    (17) "Security for an obligation" means the vendor's 
interest in a contract for deed, mortgagee's interest in a 
mortgage, purchaser's interest under a sheriff's certificate of 
sale during the period of redemption, or the holder's interest 
in a lien.  
    (18) "Special declarant rights" means rights reserved for 
the benefit of a declarant to complete improvements indicated on 
floor plans the condominium plat (section 515A.2-110); to add 
additional real estate to a flexible condominium (section 
515A.2-111); to subdivide or convert a unit (section 
515A.2-115); to maintain sales offices, management offices, 
signs advertising the condominium, and models (section 
515A.2-117); to use easements through the common elements for 
the purpose of making improvements within the condominium or any 
additional real estate (section 515A.2-118); or to appoint or 
remove any board member during any period of declarant control 
(section 515A.3-103(a)).  
    (19) "Unit" means a portion of the condominium, whether or 
not contained solely or partially within a building, designated 
for separate ownership, the boundaries of which are described 
pursuant to section 515A.2-110. 
    (20) "Unit owner" means a declarant who owns a unit, a 
person to whom ownership of a unit has been conveyed or 
transferred, or in a leasehold condominium a lessee of a unit 
whose lease expires simultaneously with any lease the expiration 
or termination of which will remove the unit from the 
condominium, but does not include a holder of an interest as 
security for an obligation.  
     Sec. 6.  Minnesota Statutes 1984, section 515A.2-105, is 
amended to read: 
     515A.2-105 [CONTENTS OF DECLARATION; ALL CONDOMINIUMS.] 
    The declaration for a condominium shall contain: 
    (1) the name and number of the condominium, which shall 
include the word "condominium" or be followed by the words "a 
condominium"; 
    (2) the name of every county in which any part of the 
condominium is situated; 
    (3) a legally sufficient description of the real estate 
included in the condominium; 
    (4) a description or delineation of the boundaries of a 
unit; 
    (5) the floor plans condominium plat as required by section 
515A.2-110; 
    (6) an allocation to each unit of an undivided interest in 
the common elements, a portion of the votes in the association, 
and a percentage or fraction of the common expenses of the 
association (section 515A.2-108);  
    (7) a statement of the maximum number of any units which 
may be created by the subdivision or conversion of units owned 
by the declarant pursuant to section 515A.2-115(c);  
    (8) an allocation of any limited common elements, as 
provided in section 515A.2-109;  
    (9) any restrictions on use, occupancy, and alienation of 
the units;  
    (10) a statement showing that the condominium is not 
subject to an ordinance provided for in section 515A.1-106 or 
showing that any conditions required under an ordinance have 
been complied with;  
    (11) any other matters the declarant deems appropriate. 
    Sec. 7.  Minnesota Statutes 1984, section 515A.2-110, is 
amended to read: 
    515A.2-110 [FLOOR PLANS CONDOMINIUM PLATS.] 
    (a) Floor plans Condominium plats are a part of the 
declaration.  The floor plans condominium plat shall contain a 
certification by a registered professional engineer, land 
surveyor or architect that the floor plans condominium plat 
accurately depict depicts all information required by this 
section.  
    (b) Each floor plan condominium plat shall show:  
    (1) the number of the condominium, and the boundaries and 
dimensions of the land included in the condominium;  
    (2) the dimensions and location of all existing structural 
improvements and roadways;  
    (3) the intended location and dimensions of any 
contemplated common element improvements to be constructed 
within the condominium labeled either "MUST BE BUILT" or "NEED 
NOT BE BUILT";  
    (4) the location and dimensions of any additional real 
estate, labeled as such;  
    (5) the extent of any encroachments by or upon any portion 
of the condominium;  
    (6) the location and dimensions of all recorded easements 
within the condominium serving or burdening any portion of the 
condominium;  
    (7) the distance between noncontiguous parcels of real 
estate;  
    (8) the location and dimensions of limited common elements, 
including porches, balconies and patios, other than limited 
common elements described in section 515A.2-102(2) and (4);  
    (9) the location and dimensions of the vertical boundaries 
of each unit, and that unit's identifying number; 
    (10) the location and dimensions of the horizontal unit 
boundaries with reference to established or assumed datum, and 
that unit's identifying number;  
    (11) any units which may be converted by the declarant to 
create additional units or common elements (section 515A.2-115) 
identified separately.  
    (c) When adding additional real estate (section 
515A.2-111), the declarant shall record supplemental floor plans 
condominium plats for that real estate conforming to the 
requirements of subsection (b).  If less than all additional 
real estate is being added, the supplemental floor plans 
condominium plats shall also show the location and dimensions of 
the remaining portion.  
    (d) If a declarant subdivides or converts any unit into two 
or more units, common elements or limited common elements 
(section 515A.2-115), he shall record an amendment to the floor 
plans condominium plat showing the location and dimensions of 
any new units, common elements and limited common elements thus 
created. 
    Sec. 8.  Minnesota Statutes 1984, section 515A.2-114, is 
amended to read: 
    515A.2-114 [RELOCATION OF BOUNDARIES BETWEEN ADJOINING 
UNITS.] 
    (a) Subject to the provisions of the declaration and other 
provisions of law, the boundaries between adjoining units may be 
relocated by an amendment to the declaration upon application to 
the association by the owners of those units.  The owners of the 
adjoining units shall specify the proposed reallocation between 
their units of their common element interests, votes in the 
association, and common expense liabilities in the application 
and in accord with section 515A.2-108.  Unless the board of 
directors determines within 60 days after receipt of the 
application by the association that the proposed amendment is 
not in the best interests of the condominium, the unit owners 
shall prepare an amendment which shall identify the units 
involved, state the reallocation, be executed by those unit 
owners and by any holder of an interest as security for an 
obligation, contain words of conveyance between them, contain 
written consent of the association, and upon recordation be 
indexed in the name of the grantor and the grantee.  The 
amendment shall include an amended floor plan or if amended 
after July 31, 1986, an amended condominium plat, to show the 
altered boundaries between the adjoining units and their 
dimensions and identifying numbers.  If a holder of an interest 
as security for an obligation joins in the amendment pursuant to 
this section, the extent of the interest and the remedies shall 
be deemed to be modified as provided in the amendment.  The 
association shall incur no liability to any party by reason of 
performing those acts enumerated in this section.  
    (b) The association may require the owners of the affected 
units to build a boundary wall and other common elements between 
the units.  
    (c) The applicant shall deliver a certified copy of the 
amendment to the association.  
     Sec. 9.  Minnesota Statutes 1984, section 515A.2-115, is 
amended to read: 
    515A.2-115 [SUBDIVISION OR CONVERSION OF UNITS.] 
    (a) If the declaration expressly so permits, (i) a unit may 
be subdivided into two or more units, or, (ii) if owned by a 
declarant, a unit may be subdivided or converted into two or 
more units, limited common elements, common elements, or a 
combination of units, limited common elements and common 
elements.  Subject to the provisions of the declaration and 
other provisions of law, the unit owner shall prepare and 
execute an amendment to the declaration, including the floor 
plans or if amended after July 31, 1986, the condominium plat, 
subdividing or converting that unit.  The amendment to the 
declaration shall be executed by the unit owner and any holder 
of an interest as security for an obligation of the unit to be 
subdivided or converted, assign an identifying number to each 
unit created, and reallocate the common element interest, votes 
in the association, and common expense liability formerly 
allocated to the subdivided unit to the units in accord with 
section 515A.2-108.  
    (b) The unit owner shall deliver a certified copy of the 
recorded amendment to the association.  
    (c) In the case of a unit owned by a declarant, if a 
declarant converts part or all of a unit to common elements, the 
amendment to the declaration shall reallocate among the other 
units the common element interest, votes in the association, and 
common expense liability formerly allocated to the converted 
unit or portion thereof on the same basis used for the initial 
allocation thereof. 
    (d) If a holder of an interest as security for an 
obligation joins in the amendment pursuant to this section, the 
interest and remedies shall be deemed to apply to the units and 
the common element interests that result from the subdivision or 
conversion under this section.  In the event of enforcement of 
any remedy, including foreclosure by advertisement, all 
instruments and notices shall describe the subject property in 
terms of the amended description.  
    Sec. 10.  Minnesota Statutes 1984, section 515A.2-116, is 
amended to read: 
    515A.2-116 [MINOR VARIATION IN BOUNDARIES.] 
    The existing physical boundaries of a unit or of a unit 
reconstructed in substantial accordance with the floor plans 
condominium plat are conclusively presumed to be its boundaries 
regardless of settling or lateral movement of the building. 
    Sec. 11.  Minnesota Statutes 1984, section 515A.4-102, is 
amended to read: 
    515A.4-102 [DISCLOSURE STATEMENT; GENERAL PROVISIONS.] 
    A disclosure statement shall fully disclose: 
    (a) The name and principal address of the declarant and the 
address and the name, if any, and number, if available, of the 
condominium; 
    (b) A general description of the condominium; including 
without limitation the types and number of all buildings, units 
and amenities, and declarant's schedule of commencement and 
completion of construction thereof;  
    (c) The total number of additional units that may be 
included in the condominium and whether the declarant intends to 
rent or market blocks of units to investors; 
    (d) A copy of the declaration other than the floor 
plans condominium plat, floor plans condominium plat for the 
particular unit, bylaws, articles of incorporation, rules and 
regulations, and any contracts and leases to which the unit 
owners or association will be subject and which may not be 
cancelled upon 30 days notice by the association;  
    (e) Any current balance sheet and a projected budget for 
the association for the first full or partial year during which 
a unit is conveyed to a unit owner other than a declarant and 
any projected budget for future years which the association has 
adopted, and a statement of who prepared the balance sheet, 
projected budget or budget.  The budget or projected budget 
shall include, without limitation:  
    (1) a statement of the amount, or a statement that there is 
no amount, included in the budget as a reserve for repairs and 
replacement; 
    (2) a statement of any other reserves; 
    (3) the projected common expense assessment by category of 
expenditures for the association; 
    (4) the projected monthly common expense assessment for 
each type of unit; 
    (f) Any supplies and services not reflected in the budget 
or projected budget which the declarant provides, or expenses 
which he pays, and which he expects may become at any subsequent 
time a common expense of the association and the projected 
common expense assessment attributable to each of those services 
or expenses for the association and for each type of unit; 
    (g) Any initial or special fee due from the purchaser to 
the declarant or the association at closing, together with a 
description of the purpose and method of calculating the fee; 
    (h) A description of any liens, defects, or encumbrances on 
or affecting the title to the condominium after the contemplated 
conveyance; 
    (i) A description of any financing offered by the declarant;
    (j) The terms of any warranties provided by the declarant, 
including the warranties set forth in sections 515A.4-111 and 
515A.4-112, and limitations imposed by the declarant on the 
enforcement thereof;  
    (k) A statement that: 
    (1) within 15 days after receipt of a disclosure statement, 
a purchaser may, prior to conveyance, cancel any purchase 
agreement of a unit from a declarant; 
    (2) if a declarant fails to provide a disclosure statement 
to a purchaser before conveying a unit, that purchaser may 
recover from the declarant an amount not to exceed five percent 
of the sales price of the unit, and 
    (3) if a purchaser received the disclosure statement more 
than 15 days before he signs a purchase agreement, he cannot 
cancel the agreement; 
    (l) A statement disclosing, to the extent of the actual 
knowledge of the declarant or an affiliate of the declarant 
after reasonable inquiry, any judgments against the association, 
the status of any pending suits to which the association is a 
party, and the status of any pending suits material to the 
condominium; 
    (m) A statement that any earnest money paid in connection 
with the purchase of a unit will be held in an escrow account 
until closing and will be returned to the purchaser if the 
purchaser cancels the purchase agreement pursuant to section 
515A.4-106; 
    (n) A description of the insurance coverage to be provided 
for the benefit of unit owners; 
    (o) Any current or expected fees or charges to be paid by 
unit owners for the use of the common elements and other 
facilities related to the condominium; and 
    (p) Whether financial arrangements have been provided for 
completion of all improvements labeled "MUST BE BUILT" pursuant 
to section 515A.4-117 (Declarant's Obligation to Complete and 
Restore). 
    Sec. 12.  Minnesota Statutes 1984, section 515A.4-107, is 
amended to read: 
    515A.4-107 [RESALES OF UNITS.] 
    (a) In the event of a resale of a unit by a unit owner 
other than a declarant, the unit owner shall furnish to a 
purchaser before execution of any purchase agreement for a unit, 
or otherwise before conveyance, a copy of the declaration, other 
than the floor plans condominium plat, the bylaws, the rules and 
regulations of the association, and any amendments thereto, and 
a certificate dated not more than 90 days prior to the date of 
the purchase agreement or otherwise before conveyance, 
containing:  
    (1) a statement disclosing any right of first refusal or 
other restraint on the free alienability of the unit contained 
in the declaration, bylaws, rules and regulations, or any 
amendment thereof; 
    (2) a statement setting forth the amount of periodic 
installments of common expense assessments and special 
assessments and any unpaid common expense or special assessment 
currently payable; 
    (3) a statement of any other fees payable by unit owners; 
    (4) a statement of any capital expenditures approved by the 
association for the current and next succeeding two fiscal years;
    (5) a statement that a copy of the floor plans condominium 
plat and any amendments thereof are available in the office of 
the association for inspection;  
    (6) a statement of the amount of any reserves for capital 
expenditures and of any portions of those reserves designated by 
the association for any specified projects; 
    (7) the most recent regularly prepared balance sheet and 
income and expense statement, if any, of the association; 
    (8) the current budget of the association; 
    (9) a statement of any judgments against the association 
and the status of any pending suits to which the association is 
a party; 
    (10) a statement describing any insurance coverage provided 
for the benefit of unit owners. 
    (b) The association shall, within seven days after a 
request by a unit owner or his authorized agent, furnish a 
certificate containing the information necessary to enable the 
unit owner to comply with this section.  A unit owner without 
actual knowledge providing a certificate pursuant to subsection 
(a) shall have no liability to the purchaser for any erroneous 
information provided by the association and included in the 
certificate. 
    (c) A purchaser is not liable for any unpaid assessment or 
fee existing as of the date of the certificate greater than the 
amount set forth in the certificate prepared by the 
association.  A unit owner is not responsible to a purchaser for 
the failure or delay of the association to provide the 
certificate in a timely manner. 
    Sec. 13.  Minnesota Statutes 1984, section 515A.4-116, is 
amended to read: 
    515A.4-116 [LABELING OF PROMOTIONAL MATERIAL.] 
    If any improvement contemplated in a condominium is 
required by section 515A.2-110(b)(3) to be labeled "NEED NOT BE 
BUILT" on the floor plan condominium plat, no promotional 
material may be displayed or delivered to prospective purchasers 
which describes or depicts that improvement unless the 
description or depiction of the improvement is conspicuously 
labeled or identified as "NEED NOT BE BUILT". 
    Sec. 14.  Minnesota Statutes 1984, section 515A.4-117, is 
amended to read: 
    515A.4-117 [DECLARANT'S OBLIGATION TO COMPLETE AND 
RESTORE.] 
    (a) The declarant shall complete all improvements labeled 
"MUST BE BUILT" on the floor plans condominium plat prepared 
pursuant to section 515A.2-110. 
    (b) The declarant is subject to liability for the prompt 
repair and restoration to a condition compatible with the 
remainder of the condominium of any portion of the condominium 
affected by the exercise of rights reserved pursuant to or 
created by sections 515A.2-111, 515A.2-117, and 515A.2-118. 
     Sec. 15.  [EFFECTIVE DATE; APPLICABILITY.] 
    Sections 1 to 14 are effective August 1, 1986, and apply to 
condominiums governed by Minnesota Statutes, chapter 515A, that 
record or file condominium declarations or amendments to the 
declarations after July 31, 1986. 
    Approved March 19, 1986