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Key: (1) language to be deleted (2) new language

                            CHAPTER 388-S.F.No. 1691 
                  An act relating to real property; clarifying and 
                  making technical corrections to statutory provisions 
                  relating to real property; allowing the examiner of 
                  titles in Olmsted county to be compensated as are 
                  examiners in counties of fewer than 75,000 population; 
                  amending Minnesota Statutes 1992, sections 14.03, 
                  subdivision 3; 83.26, subdivision 2; 500.19, 
                  subdivision 4; 507.09; 507.332; 508.12, subdivision 1; 
                  508.13; 508.23, subdivision 1; 508.35; 508.37, 
                  subdivision 1a; 508.38; 508.45; 508.47, subdivision 5; 
                  508.51; 508.52; 508.55; 508.58, subdivision 2; 508.68; 
                  508.70; 508.71, subdivision 4; 508A.22, subdivision 1; 
                  508A.35; 508A.38; 508A.45; 508A.47, subdivision 5; 
                  508A.51; 508A.52; 508A.55; 508A.68; 508A.71, 
                  subdivision 4; 559.21, subdivisions 3, 4, and 8; and 
                  580.12; Minnesota Statutes 1993 Supplement, section 
                  256B.0595, by adding a subdivision; 508.71, 
                  subdivision 7; 515B.1-102; 515B.1-103; 515B.1-105; 
                  515B.1-116; 515B.2-104; 515B.2-105; 515B.2-110; 
                  515B.2-118; 515B.2-119; 515B.3-113; 515B.3-116; and 
                  515B.3-117; proposing coding for new law in Minnesota 
                  Statutes, chapters 508; and 508A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                       CONVEYANCING, RECITALS, REDEMPTION
           Section 1.  Minnesota Statutes 1992, section 14.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RULEMAKING PROCEDURES.] The definition of a rule 
        in section 14.02, subdivision 4, does not include: 
           (1) rules concerning only the internal management of the 
        agency or other agencies that do not directly affect the rights 
        of or procedures available to the public; 
           (2) rules of the commissioner of corrections relating to 
        the placement and supervision of inmates serving a supervised 
        release term, the internal management of institutions under the 
        commissioner's control, and rules adopted under section 609.105 
        governing the inmates of those institutions; 
           (3) rules relating to weight limitations on the use of 
        highways when the substance of the rules is indicated to the 
        public by means of signs; 
           (4) opinions of the attorney general; 
           (5) the systems architecture plan and long-range plan of 
        the state education management information system provided by 
        section 121.931; 
           (6) the data element dictionary and the annual data 
        acquisition calendar of the department of education to the 
        extent provided by section 121.932; 
           (7) the occupational safety and health standards provided 
        in section 182.655; or 
           (8) revenue notices and tax information bulletins of the 
        commissioner of revenue; or 
           (9) uniform conveyancing forms adopted by the commissioner 
        of commerce under section 507.09. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        256B.0595, is amended by adding a subdivision to read: 
           Subd. 6.  [NO BAD EFFECT ON REALTY CONVEYANCE, 
        ENCUMBRANCE.] This section does not invalidate or impair the 
        effectiveness of a conveyance or encumbrance of real estate. 
           Sec. 3.  Minnesota Statutes 1992, section 500.19, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CONVERTING ESTATES CONVEYING INTEREST DIRECTLY.] 
        An owner (a) Subject to section 507.02 specifying when both 
        spouses must join in a conveyance of their homestead, one or 
        more owners of an interest in real estate may convey all or part 
        of the interest directly to that owner and one or more other 
        persons as joint tenants or as tenants in common or to one or 
        more of themselves, or to any combination of one or more of 
        themselves and other persons. 
           (b) Subject to section 507.02 specifying when both spouses 
        must join in a conveyance of their homestead, conveyances 
        between spouses are allowed under paragraph (a) to the same 
        extent as those between unmarried persons. 
           Sec. 4.  Minnesota Statutes 1992, section 507.09, is 
        amended to read: 
           507.09 [FORMS APPROVED; AMENDMENTS.] 
           The several forms of deeds, mortgages, land contracts, 
        assignments, satisfactions, and other conveyancing instruments 
        prepared by the uniform conveyancing blanks commission and filed 
        by the commission with the secretary of state pursuant to Laws 
        1929, chapter 135, as amended by Laws 1931, chapter 34, are 
        approved and recommended for use in the state.  Such forms shall 
        be kept on file with and be preserved by the commissioner of 
        commerce as a public record.  The commissioner of commerce may 
        appoint an advisory task force on uniform conveyancing forms to 
        recommend to the commissioner of commerce amendments to existing 
        forms or the adoption of new forms.  The task force shall 
        expire, and the terms, compensation, and removal of members 
        shall be as provided in section 15.059.  The commissioner of 
        commerce may adopt amended or new forms consistent with the laws 
        of this state by rule in accordance with chapter 14 by complying 
        with the procedures in section 14.38, subdivision 7, clauses 
        (1), (2), and (3). 
           Sec. 5.  Minnesota Statutes 1992, section 507.332, is 
        amended to read: 
           507.332 [RECITALS IN WRITTEN INSTRUMENTS NOT TO CONSTITUTE 
        NOTICE IN CERTAIN CASES WHETHER RECORDED RECITAL OF UNRECORDED 
        MORTGAGE IS NOTICE.] 
           Subdivision 1.  [NO NOTICE.] Where an instrument affecting 
        the title to real property in this state recites the existence 
        of a mortgage against said real property or some part thereof, 
        where the instrument containing such recital either was recorded 
        prior to 1930 in the office of the county recorder of the county 
        where said real property or some part thereof is situated or was 
        filed prior to said date in a judicial proceeding effecting 
        (affecting) said real property or some part thereof in the 
        district court or probate court of such county, and where the 
        time of the maturity of the whole of the debt secured by said 
        mortgage is not clearly stated in said recital, then such 
        recital may be disregarded and shall not constitute notice of 
        said mortgage, either actual or constructive, to any subsequent 
        purchaser or incumbrancer of said real property or any part 
        thereof.  
           Nothing contained in this section shall affect actions now 
        pending or commenced within six months after the passage of Laws 
        1947, chapter 626, in any court of this state.  A recital of the 
        existence of an unrecorded mortgage in an instrument: 
           (1) that affects title to real property and 
           (2) is recorded with the county recorder of the county 
        where the real property is located, 
        is not actual or constructive notice to a subsequent purchaser 
        or encumbrancer once five years have passed since the date of 
        the instrument containing the recital, unless the conditions in 
        subdivision 2 are met. 
           Subd. 2.  [NOTICE.] If, in the circumstances described in 
        subdivision 1, an action to foreclose the unrecorded mortgage 
        was commenced and a notice of pendency or notice of lis pendens 
        was recorded during the five-year period, then, the recital is 
        actual or constructive notice of the unrecorded mortgage to a 
        subsequent purchaser or encumbrancer of the real property. 
           Subd. 3.  [FORECLOSURE PERIOD UNAFFECTED.] This section 
        does not limit or extend the period, set out in section 541.03, 
        to bring an action to foreclose a mortgage. 
           Subd. 4.  [NO EFFECT IF LIS PENDENS BEFORE MARCH 1995.] 
        This section does not affect a proceeding to foreclose a 
        mortgage pending on the effective date of the amendments made to 
        this section by this act, or to be commenced in a court of this 
        state if, before March 1, 1995, a notice of lis pendens has been 
        recorded in the office of the county recorder or filed in the 
        office of the registrar of titles. 
           Sec. 6.  Minnesota Statutes 1992, section 580.12, is 
        amended to read: 
           580.12 [CERTIFICATE OF SALE; RECORD; EFFECT.] 
           When any sale of real property is made under a power of 
        sale contained in any mortgage, the officer shall make and 
        deliver to the purchaser a certificate, executed in the same 
        manner as a conveyance, containing: 
           (1) a description of the mortgage; 
           (2) a description of the property sold; 
           (3) the price paid for each parcel sold; 
           (4) the time and place of the sale, and the name of the 
        purchaser; and 
           (5) the time allowed by law for redemption, provided that 
        if the redemption period stated in the certificate is five weeks 
        and a longer redemption period was stated in the published 
        notice of foreclosure sale, a certified copy of the court order 
        entered under section 582.032, authorizing reduction of the 
        redemption period to five weeks, must be attached to the 
        certificate.  
           A certificate which states a five-week redemption period 
        must be recorded within ten days after the sale; any other 
        certificate must be recorded within 20 days after the sale.  
        When so recorded, upon expiration of the time for redemption, 
        the certificate shall operate as a conveyance to the purchaser 
        or the purchaser's assignee of all the right, title, and 
        interest of the mortgagor in and to the premises named therein 
        at the date of such mortgage, without any other conveyance.  A 
        certificate must not contain a time allowed for redemption that 
        is less than the time specified by section 580.23, 582.032, or 
        582.32, whichever applies. 
           Sec. 7.  [EFFECTIVE DATE.] 
           Section 2 is effective retroactive to July 1, 1993.  
                                   ARTICLE 2
                               CONTRACTS FOR DEED 
           Section 1.  Minnesota Statutes 1992, section 559.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  For purposes of this section, the term "notice" 
        means a writing stating the information required in this 
        section, stating the name, address and telephone number of the 
        seller or of an attorney authorized by the seller to accept 
        payments pursuant to the notice and the fact that the person 
        named is authorized to receive the payments, stating a mailing 
        address and a street address or location where the seller or the 
        attorney will accept payment pursuant to the notice, and 
        including the following information in 12-point or larger 
        underlined upper-case type, or 8-point type if published, or in 
        large legible handwritten letters:  
           THIS NOTICE IS TO INFORM YOU THAT BY THIS NOTICE THE SELLER 
        HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES, SECTION 559.21, 
        TO TERMINATE YOUR CONTRACT FOR THE PURCHASE OF YOUR PROPERTY FOR 
        THE REASONS SPECIFIED IN THIS NOTICE.  THE CONTRACT WILL 
        TERMINATE ..... DAYS AFTER (SERVICE OF THIS NOTICE UPON YOU) 
        (THE FIRST DATE OF PUBLICATION OF THIS NOTICE) (STRIKE ONE) 
        UNLESS BEFORE THEN: 
           (a) THE PERSON AUTHORIZED IN THIS NOTICE TO RECEIVE 
        PAYMENTS RECEIVES FROM YOU: 
           (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS 
           (2) THE COSTS OF SERVICE (TO BE SENT TO YOU); PLUS 
           (3) $........... TO APPLY TO ATTORNEYS' FEES ACTUALLY 
        EXPENDED OR INCURRED; PLUS 
           (4) FOR CONTRACTS EXECUTED ON OR AFTER MAY 1, 1980, ANY 
        ADDITIONAL PAYMENTS BECOMING DUE UNDER THE CONTRACT TO THE 
        SELLER AFTER THIS NOTICE WAS SERVED ON YOU; PLUS 
           (5) FOR CONTRACTS, OTHER THAN EARNEST MONEY CONTRACTS, 
        PURCHASE AGREEMENTS, AND EXERCISED OPTIONS, EXECUTED ON OR AFTER 
        AUGUST 1, 1985, $.... (WHICH IS TWO PERCENT OF THE AMOUNT IN 
        DEFAULT AT THE TIME OF SERVICE OTHER THAN THE FINAL BALLOON 
        PAYMENT, ANY TAXES, ASSESSMENTS, MORTGAGES, OR PRIOR CONTRACTS 
        THAT ARE ASSUMED BY YOU); OR 
           (b) YOU SECURE FROM A COUNTY OR DISTRICT COURT AN ORDER 
        THAT THE TERMINATION OF THE CONTRACT BE SUSPENDED UNTIL YOUR 
        CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING OR 
        SETTLEMENT.  YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 
        GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.  
           IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 
        WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR CONTRACT 
        WILL TERMINATE AT THE END OF THE PERIOD AND YOU WILL LOSE ALL 
        THE MONEY YOU HAVE PAID ON THE CONTRACT; YOU WILL LOSE YOUR 
        RIGHT TO POSSESSION OF THE PROPERTY; YOU MAY LOSE YOUR RIGHT TO 
        ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE; AND YOU WILL 
        BE EVICTED.  IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, 
        CONTACT AN ATTORNEY IMMEDIATELY.  
           Sec. 2.  Minnesota Statutes 1992, section 559.21, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CONTRARY CONTRACTUAL NOTICE; SERVICE; 
        REINSTATEMENT; TERMINATION.] (a) The notice required by this 
        section must be given notwithstanding any provisions in the 
        contract to the contrary, except that earnest money contracts, 
        purchase agreements, and exercised options that are subject to 
        this section may, unless by their terms they provide for a 
        longer termination period, be terminated on 30 days notice.  The 
        notice must be served within the state in the same manner as a 
        summons in the district court, and outside of the state, in the 
        same manner, and without securing any sheriff's return of not 
        found, making any preliminary affidavit, mailing a copy of the 
        notice or doing any other preliminary act or thing whatsoever.  
        Service of the notice outside of the state may be proved by the 
        affidavit of the person making the same, made before an 
        authorized officer having a seal, and within the state by such 
        an affidavit or by the return of the sheriff of any county 
        therein. 
           (b) Three weeks published notice, and if the real estate 
        described in the contract is actually occupied, then in addition 
        thereto, the personal service of a copy of the notice within ten 
        days after the first date of publication of the notice, and in 
        like manner as the service of a summons in a civil action in the 
        district court, upon the person in possession of the real 
        estate, has the same effect as the personal service of the 
        notice upon the purchaser, or the purchaser's personal 
        representatives or assigns, either within or outside of the 
        state as provided for in this section.  In case of service by 
        publication, the published notice shall comply with subdivision 
        3 and state that the purchaser, or the purchaser's personal 
        representatives or assigns, is allowed 90 days from and after 
        the first date of publication of the notice to comply with the 
        conditions of the contract, and state that the contract will 
        terminate 90 days after the first date of publication of the 
        notice, unless prior to the termination date the purchaser 
        complies with the notice.  If a person to be served is a 
        resident individual who has departed from the state, or cannot 
        be found in the state; or is a nonresident individual or a 
        foreign corporation, partnership, or association, service may be 
        made by publication as provided in this paragraph.  Three weeks 
        published notice has the same effect as personal service of the 
        notice.  The published notice must comply with subdivision 3 and 
        state (1) that the person to be served is allowed 90 days after 
        the first date of publication of the notice to comply with the 
        conditions of the contract, and (2) that the contract will 
        terminate 90 days after the first date of publication of the 
        notice, unless before the termination date the purchaser 
        complies with the notice.  If the real estate described in the 
        contract is actually occupied, then, in addition to publication, 
        a person in possession must be personally served, in like manner 
        as the service of a summons in a civil action in state district 
        court, within 30 days after the first date of publication of the 
        notice.  If an address of a person to be served is known, then 
        within 30 days after the first date of publication of the notice 
        a copy of the notice must be mailed to the person's last known 
        address by first class mail, postage prepaid. 
           (c) The contract is reinstated if, within the time 
        mentioned, the person served: 
           (1) complies with the conditions in default; 
           (2) if subdivision 1d or 2a applies, makes all payments due 
        and owing to the seller under the contract through the date that 
        payment is made; 
           (3) pays the costs of service as provided in subdivision 
        1b, 1c, 1d, or 2a; 
           (4) if subdivision 2a applies, pays two percent of the 
        amount in default, not including the final balloon payment, any 
        taxes, assessments, mortgages, or prior contracts that are 
        assumed by the purchaser; and 
           (5) pays attorneys' fees as provided in subdivision 1b, 1c, 
        1d, or 2a. 
           (d) The contract is terminated if the provisions of 
        paragraph (c) are not met. 
           (e) In the event that the notice was not signed by an 
        attorney for the seller and the seller is not present in the 
        state, or cannot be found in the state, then compliance with the 
        conditions specified in the notice may be made by paying to the 
        court administrator of the district court in the county wherein 
        the real estate or any part thereof is situated any money due 
        and filing proof of compliance with other defaults specified, 
        and the court administrator of the district court shall be 
        deemed the agent of the seller for such purposes.  A copy of the 
        notice with proof of service thereof, and the affidavit of the 
        seller, the seller's agent or attorney, showing that the 
        purchaser has not complied with the terms of the notice, may be 
        recorded with the county recorder, and is prima facie evidence 
        of the facts stated in it; but this section in no case applies 
        to contracts for the sale or conveyance of lands situated in 
        another state or in a foreign country.  If the notice is served 
        by publication, the affidavit must state that the affiant 
        believes that the party to be served is not a resident of the 
        state, or cannot be found in the state, and either that the 
        affiant has mailed a copy of the notice by first class mail, 
        postage prepaid, to the party's last known address, or that such 
        address is not known to the affiant. 
           Sec. 3.  Minnesota Statutes 1992, section 559.21, 
        subdivision 8, is amended to read: 
           Subd. 8.  [ATTORNEY AS AGENT FOR SERVICE.] Any attorney 
        expressly authorized by the seller to receive payments in the 
        notice of termination under this section is designated as the 
        attorney who may receive service as agent for the seller of all 
        summons, complaints, orders, and motions made in conjunction 
        with an action by the purchaser to restrain the 
        termination.  Service in the action may be made upon the seller 
        by mailing a copy of the process to the seller or to the 
        seller's attorney, by first class mail, postage prepaid, to the 
        address stated in the notice where payments will be accepted. 
           Sec 4.  [EFFECTIVE DATE.] 
           This article is effective August 1, 1994, and applies to 
        notices first served or published on or after that date. 
                                   ARTICLE 3
                              REGISTERED PROPERTY
                                       A
           Section 1.  Minnesota Statutes 1992, section 508.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [EXAMINER AND DEPUTY EXAMINER.] The judges 
        of the district court shall appoint a competent attorney in each 
        county within their respective districts to be an examiner of 
        titles and legal adviser to the registrar in said county, to 
        which examiner all applications to register title to land are 
        referred without further order, and may appoint attorneys to 
        serve as deputy examiners who shall act in the name of the 
        examiner and under the examiner's supervision and control, and 
        the deputy's acts shall be the acts of the examiners.  The 
        examiner of titles and deputy examiners shall hold office 
        subject to the will and discretion of the district court by whom 
        appointed.  The examiner's compensation and that of the 
        examiner's deputies shall be fixed and determined by the court 
        and paid in the same manner as the compensation of other county 
        employees is paid except that in all counties having fewer than 
        75,000 inhabitants, and in Stearns county and, Dakota county, 
        and Olmsted counties the fees and compensation of the examiners 
        for services as legal adviser to the registrar shall be 
        determined by the judges of the district court and paid in the 
        same manner as the compensation of other county employees is 
        paid, but in every other instance shall be paid by the person 
        applying to have the person's title registered or for other 
        action or relief which requires the services, certification or 
        approval of the examiner. 
                                       B
           Sec. 2.  Minnesota Statutes 1992, section 508.13, is 
        amended to read: 
           508.13 [REFERENCES TO EXAMINERS; POWERS; REPORTS.] 
           Immediately after the filing of the abstract of title, the 
        court shall enter an order referring the application to an 
        examiner of titles, the court administrator shall refer the file 
        to the examiner of titles, who shall proceed to examine into the 
        title of the land described in the application, and into the 
        truth of all matters set forth therein.  The examiner shall 
        ascertain whether or not the land is occupied, and, if occupied, 
        shall ascertain the nature thereof, and by what right the 
        occupation is held.  The examiner shall also ascertain whether 
        or not any judgments exist which may be a lien upon the land.  
        The examiner shall search all public records, and fully 
        investigate all facts pertaining to the title which may be 
        brought to the examiner's notice, and shall file in the case a 
        full report thereof, together with the examiner's opinion upon 
        the title.  The court shall not be bound by any report of the 
        examiner of titles, but may require further or other proof.  An 
        examiner of titles shall have full power to administer oaths and 
        examine witnesses concerning any matter involved in the 
        examiner's investigation of titles.  When, in the opinion of the 
        examiner, the state has any interest in, or lien upon, the land, 
        the examiner shall state the nature and character thereof in the 
        examiner's report, and in such cases, the state shall be joined 
        as a party, and named in the summons as a party thereto, in 
        order that its interest, estate or lien may be defined and 
        preserved.  The court administrator shall give notice to the 
        applicant of the filing of such report.  If the report of the 
        examiner is adverse to the applicant, the applicant shall have a 
        reasonable time in which to proceed further, or to withdraw the 
        application. This election shall be made in writing and filed 
        with the court administrator.  Examiners shall, upon the request 
        of the registrar, advise the registrar upon any act or duty 
        pertaining to the conduct of the office, or prepare the form of 
        any memorial to be made or entered by the registrar. 
           In all cases where under the provisions of this chapter 
        application is made to the court for any order or decree, the 
        court may refer the matter to the examiner of titles for hearing 
        and report in like manner as herein provided for the reference 
        of the initial application for registration. 
                                       C
           Sec. 3.  Minnesota Statutes 1992, section 508.23, 
        subdivision 1, is amended to read: 
           Subdivision 1.  Every decree of registration shall bear the 
        date, hour, and minute of its entry and be signed by one of the 
        judges of the district court.  It shall state the age of the 
        owner of the land whether the owner is 18 years of age or older, 
        and whether married, or unmarried, and, if married, the name of 
        the spouse; if the owner of the land is under disability any 
        legal incapacity, it shall state the nature thereof.  It shall 
        contain an accurate description of the land as finally 
        determined by the court, and set forth the estate of the owner 
        and also, in such manner as to show their relative priority, all 
        particular estates, mortgages, easements, liens, attachments, 
        and other encumbrances, including spousal rights, if any, to 
        which the land or the owner's estate is subject, and any other 
        facts properly to be determined by the court.  Immediately upon 
        the filing of the decree of registration, the court 
        administrator shall file a certified copy thereof with the 
        registrar. 
           Sec. 4.  Minnesota Statutes 1992, section 508A.22, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DIRECTIVE.] The examiner of titles, upon 
        being satisfied that the applicant is entitled to a CPT, but not 
        earlier than 20 days from the date of mailing of the notice 
        required by section 508A.13, shall issue a written directive to 
        the registrar of titles directing that the first CPT be issued 
        and entered in the name of the applicant, subject only to the 
        following:  (a) the exceptions set out in section 508A.25; (b) 
        all outstanding rights, titles, estates, liens, and interests 
        set forth in the examiner's report; and (c) the rights of 
        persons in possession, if any, and any rights which would be 
        disclosed by a survey.  The examiner's directive shall contain 
        an accurate description of the land and shall set forth the 
        address of the applicant and, if the applicant be an individual, 
        the applicant's age whether the applicant is 18 years of age or 
        older, and whether married or unmarried, and if married, the 
        name of the spouse; if the applicant is under disability any 
        legal incapacity, the nature of it shall be stated.  From the 
        date of filing the examiner's directive with the registrar of 
        titles, all instruments affecting title to the land which are 
        registered shall be filed in the office of the registrar of 
        titles and be memorialized upon the CPT. 
                                       D
           Sec. 5.  [508.321] [APPEAL FROM REGISTRAR'S DECISIONS.] 
           If the registrar rejects a document for filing, a party in 
        interest may refer the matter to the examiner of titles for 
        review.  The examiner of titles may approve the document for 
        filing by endorsing the words "Approved for Filing" on the 
        document.  Upon approval, the registrar shall accept the 
        document for filing. 
           Sec. 6.  [508A.321] [APPEAL FROM REGISTRAR'S DECISIONS.] 
           If the registrar rejects a document for filing, a party in 
        interest may refer the matter to the examiner of titles for 
        review.  The examiner of titles may approve the document for 
        filing by endorsing the words "Approved for Filing" on the 
        document.  Upon approval, the registrar shall accept the 
        document for filing. 
                                       E
           Sec. 7.  Minnesota Statutes 1992, section 508.35, is 
        amended to read: 
           508.35 [FORM OF CERTIFICATE.] 
           The certificate of title shall contain the name and 
        residence of the owner, a description of the land, and of the 
        estate of the owner therein, and shall by memorial contain a 
        description of all encumbrances, liens, and interests in which 
        the estate of the owner is subject.  It shall state the owner's 
        age whether the owner is 18 years of age or older and, if under 
        disability any legal incapacity, the nature of it.  It shall 
        also state whether or not the owner is married and, if married, 
        the name of the spouse.  In case the land is held in trust or 
        subject to any condition or limitation, it shall state the 
        nature and character of it.  It shall be substantially in the 
        following form: 
                              CERTIFICATE OF TITLE 
           First certificate of title, pursuant to the order of the 
        district court, ............... judicial district, county of 
        ................., and state of Minnesota, date................, 
        19..... 
                                  REGISTRATION 
          State of Minnesota               )                      
                                           )  ss.                 
          County of ....................   )                      
           This is to certify that ..............., of residing at 
        ..............., in the .................... of 
        ...................., county of ...................., and state 
        of ...................., is now the owner of an estate, to-wit, 
        ......................... of and in the following described land 
        situated in the county of ............... and state of 
        Minnesota, to-wit, .........................  
           Subject to the encumbrances, liens, and interest noted by 
        the memorial underwritten or endorsed hereon; and subject to the 
        following rights or encumbrances subsisting, as provided in Laws 
        1905, chapter 305, section 24, namely: 
           (1) Liens, claims, or rights arising under the laws or the 
        Constitution of the United States, which the statutes of this 
        state cannot require to appear of record; 
           (2) Any real property tax or special assessment for which a 
        sale of the land has not been had at the date of the certificate 
        of title; 
           (3) Any lease for a period not exceeding three years, when 
        there is actual occupation of the premises under the lease; 
           (4) All rights in public highways upon the land; 
           (5) Such right of appeal or right to appear and contest the 
        application as is allowed by law; 
           (6) The rights of any person in possession under deed or 
        contract for deed from the owner of the certificate of title; 
           (7) Any outstanding mechanics lien rights which may exist 
        under sections 514.01 to 514.17. 
           That the said ................................ is of the 
        age of ............. years, is ................. married 
        ....................., and is under 
        ............................... disability.  
           That the said .......................... (is/is not) of the 
        age of 18 years or older, is under no legal incapacity except 
        ......................... and is (single/married to 
        .........................), who (is/is not) of the age of 18 
        years or older and is under no legal incapacity except 
        ......................... 
           In witness whereof, I have hereunto subscribed my name and 
        affixed the seal of my office, this ............... day of 
        ..........., 19........  
           .............................................  
           Registrar of Titles, in and for the county of 
           ..................... and State of Minnesota.  
           All certificates issued subsequent to the first certificate 
        of title shall be in like form except that they shall be 
        entitled "Transfer from number (here give the number of the next 
        previous certificate relating to the same land)," and shall also 
        contain the words "Originally registered (date, volume, and page 
        of registration)."  
           Sec. 8.  Minnesota Statutes 1992, section 508A.35, is 
        amended to read: 
           508A.35 [FORMS OF CPT.] 
           The CPT shall contain the name and residence of the owner, 
        a description of the land and of the estate of the owner, and 
        shall by memorial contain a description of all encumbrances, 
        liens, and interests known to the owner to which the estate of 
        the owner is subject.  It shall state the owner's age whether 
        the owner is 18 years of age or older and if under disability 
        any legal incapacity, the nature of it.  It shall also state 
        whether or not the owner is married and if married, the name of 
        the spouse.  In case the land is held in trust or subject to any 
        condition or limitation, it shall state the nature and character 
        of it.  It shall be in substantially the following form:  
                     CERTIFICATE OF POSSESSORY TITLE (CPT) 
           First Certificate of Possessory Title, pursuant to the 
        Directive of the Examiner of Titles, County of ..........., and 
        State of Minnesota, date .................., 19... 
                        Registration of Possessory Title 
        State of Minnesota       )
                                 )ss
        County of ...............)
           This is to certify that ........................, of the 
        .................. of ................ County of ............., 
        and State of ......................, is now the owner of a fee 
        simple estate, to-wit, ........................................ 
        Subject to the encumbrances, liens, and interests noted by the 
        memorial underwritten or endorsed hereon; and subject to the 
        following rights or encumbrances subsisting, namely: 
           (1) Liens, claims, or rights arising under the laws of the 
        Constitution of the United States, which the statutes of this 
        state cannot require to appear of record; 
           (2) Any real property tax or special assessment for which a 
        sale of the land has not been had at the date of the CPT; 
           (3) Any lease for a period not exceeding three years, when 
        there is actual occupation of the premises under the lease; 
           (4) All rights in public highways upon the land; 
           (5) The rights, titles, estates, liens, and interests of 
        any person who has acquired an interest set forth in the 
        Examiner's Supplemental Directive issued pursuant to section 
        508A.22, subdivision 2; 
           (6) The rights of any person in possession under deed or 
        contract for deed from the owner of the CPT; 
           (7) Any claims that may be made pursuant to section 508A.17 
        within five years from the date the Examiner's Supplemental 
        Directive is filed on the CPT; and 
           (8) Any outstanding mechanics lien rights which may exist 
        under sections 514.01 to 514.17.  
           In witness whereof, I have hereunto subscribed my name and 
        affixed the seal of my office, this ............ day of 
        ...................., 19... 
        ...................................
                                  Registrar of Titles, in and for the
                                  County of ..................... and
                                  State of Minnesota.  
           All CPTs issued subsequent to the first shall be in like 
        form except that they shall be entitled "Transfer from number 
        (here give the number of the next previous CPT relating to the 
        same land)," and shall also contain the words "Originally 
        registered (date, volume, and page of registration)."  
           CPTs shall be indexed and maintained in the same manner as 
        provided for certificates of title under chapter 508.  
                                       F
           Sec. 9.  Minnesota Statutes 1992, section 508.37, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [BOOKS.] The registrar shall likewise keep tract 
        indexes, in which the registrar shall enter an accurate 
        description of all registered land, together with the names of 
        the respective owners thereof, and a reference to the volume and 
        page of the register of titles in which the same is 
        registered number of the certificate of title.  The registrar 
        shall keep two books, to be known as the grantors' and grantees' 
        reception books respectively.  
           The grantors' reception book shall be a grantors' index of 
        instruments filed with the registrar.  Each page shall be 
        divided into columns.  The surname and given name of the grantor 
        shall be entered under the first column and under the succeeding 
        columns there shall be entered respectively the name of the 
        grantee; the date of registration, specifying the month, day, 
        year and hour and whether ante meridian or post meridian; the 
        number of the instrument; the book and page of the register of 
        titles where the land is registered; the type of instrument; and 
        a description of the property by lot or section, block or 
        township, range, addition and other pertinent information.  
           The grantees' reception book shall be a grantees' index of 
        instruments filed with the registrar.  Each page shall be 
        divided into columns.  The surname and given name of the grantee 
        shall be entered under the first column and under the succeeding 
        columns there shall be entered respectively the name of the 
        grantor; the date of registration, specifying the month, day, 
        year and hour and whether ante meridian or post meridian; the 
        number of the instrument; the book and page of the register of 
        titles where the land is registered; the type of instrument; and 
        a description of the property by lot or section, block or 
        township, range, addition and other pertinent information.  
                                       G
           Sec. 10.  Minnesota Statutes 1992, section 508.38, is 
        amended to read: 
           508.38 [FORMS OF RECORDS ADOPTED.] 
           Every instrument affecting the title to land, filed with 
        the registrar, shall be numbered by the registrar consecutively, 
        and the registrar shall endorse upon the same the number 
        thereof, together with the date, hour, and minute when the same 
        is filed, and a reference to its proper certificate of title. 
        Every such instrument shall be retained by the registrar and 
        regarded as registered from the time of filing except that such 
        instruments may be copied or reproduced as provided by section 
        15.17, as amended, and the copies or reproductions thereof 
        substituted for the originals with the equal force and effect of 
        the same, which originals may be then destroyed as provided by 
        said section 15.17.  When the memorial of any instrument is made 
        upon any certificate, the date, number, and time of filing 
        thereof shall likewise be endorsed upon such certificate.  All 
        records and papers relating to registered land in the office of 
        the registrar, shall be open to the inspection of the public at 
        such times and under such conditions as the court may prescribe. 
        Duplicates of all instruments, voluntary or involuntary, filed 
        and registered with the registrar, may be presented with the 
        originals, and shall thereupon be attested and sealed by the 
        registrar, and endorsed with the file number, and other 
        memoranda on the originals, and may be attested and sealed by 
        the registrar, and returned to the person presenting the same.  
        The registrar shall furnish certified copies of the instruments 
        filed and registered in the registrar's office, upon payment of 
        a fee as provided in section 357.18. The court shall adopt 
        general forms of memorials and notations to be used by the 
        registrars in registering the common forms of conveyance and 
        other instruments. 
           Sec. 11.  Minnesota Statutes 1992, section 508A.38, is 
        amended to read: 
           508A.38 [FORMS OF RECORDS ADOPTED.] 
           Every instrument affecting the title to land, filed with 
        the registrar pursuant to sections 508A.01 to 508A.85, shall be 
        numbered by the registrar who shall endorse upon it the number 
        of it, together with the date, hour, and minute when the same is 
        filed, and a reference to its proper CPT.  Every instrument 
        shall be retained by the registrar and regarded as registered 
        from the time of filing except that the instruments may be 
        copied or reproduced as provided by section 15.17, and the 
        copies or reproductions of them substituted for the originals 
        with the equal force and effect as they have.  The originals may 
        be then destroyed as provided by section 15.17.  When the 
        memorial of any instrument is made upon any CPT, the date, 
        number, and time of filing of it shall also be endorsed upon the 
        CPT.  All records and papers relating to registered land in the 
        office of the registrar shall be open to the inspection of the 
        public at the times and under the conditions as the court may 
        prescribe.  Duplicates of all instruments, voluntary or 
        involuntary, filed and registered with the registrar, may be 
        presented with the originals, and shall thereupon be attested 
        and sealed by the registrar, and endorsed with the file number, 
        and other memoranda on the originals, and may be attested and 
        sealed by the registrar, and returned to the person presenting 
        it.  The registrar shall furnish certified copies of the 
        instruments filed and registered in the registrar's office, upon 
        payment of a fee as provided in section 357.18.  The court shall 
        adopt general forms of memorials and notations to be used by the 
        registrars in registering the common forms of conveyance and 
        other instruments. 
                                       H
           Sec. 12.  Minnesota Statutes 1992, section 508.45, is 
        amended to read: 
           508.45 [COURT MAY ORDER DUPLICATE CERTIFICATE PRODUCED.] 
           If the registrar of titles is requested to enter a new 
        certificate in pursuance of an instrument which purports to be 
        executed by the registered owner, or by reason of any instrument 
        or proceeding which divests the title of the registered owner 
        against the registered owner's consent, and the outstanding 
        owner's duplicate certificate is not presented for cancellation 
        when such request is made, the registrar of titles shall not 
        enter a new certificate, until authorized so to do by order of 
        the district court.  The person who claims to be entitled 
        thereto may make application therefor to the district court, and 
        after due notice and hearing, the court may order the registered 
        owner, or any person withholding the duplicate certificate, to 
        surrender it, and direct the entry of a new certificate upon 
        such surrender.  If the person withholding the duplicate 
        certificate is not amenable to the process of the court, or if 
        for any reason the outstanding owner's duplicate certificate 
        cannot be delivered up, the court may by decree annul it, and 
        order a new certificate of title to be entered.  
           Sec. 13.  Minnesota Statutes 1992, section 508A.45, is 
        amended to read: 
           508A.45 [COURT MAY ORDER DUPLICATE CPT PRODUCED.] 
           If the registrar of titles is requested to enter a new CPT 
        in pursuance of an instrument which purports to be executed by 
        the registered owner, or by reason of any instrument or 
        proceeding which divests the title of the registered owner 
        against the registered owner's consent, and the outstanding 
        owner's duplicate CPT is not presented for cancellation when the 
        request is made, the registrar of titles shall not enter a new 
        CPT until authorized so to do by order of the district court.  
        The person who claims to be entitled to it may apply for it to 
        the district court, and after due notice and hearing, the court 
        may order the registered owner, or any person withholding the 
        duplicate CPT, to surrender it, and direct the entry of a new 
        CPT upon the surrender.  If the person withholding the duplicate 
        CPT is not amenable to the process of the court, or if for any 
        reason the outstanding owner's duplicate CPT cannot be delivered 
        up, the court may by decree annul it, and order a new CPT to be 
        entered.  
                                       I
           Sec. 14.  Minnesota Statutes 1992, section 508.47, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FILING REGISTERED LAND SURVEY.] The registered 
        land survey shall be filed in the office of the registrar of 
        titles, who shall number each registered land survey, the 
        numbers to run consecutively beginning with the number "1."  One 
        copy of each registered land survey shall be retained by the 
        registrar of titles as a master copy, one copy filed in a 
        registered land survey register in the registrar's office and 
        made available to the public, and one copy delivered to the 
        county auditor who may thereafter refer to it in connection with 
        the tax descriptions when convenient.  Thereafter the tracts in 
        each registered land survey shall be known as Tract ....., 
        registered land survey No. ...., files of registrar of titles, 
        county of ....., and all conveyances shall describe said 
        property accordingly; but the registrar shall not accept for 
        filing and registration any conveyance of unplatted registered 
        land if the land is described in the conveyance according to a 
        registered land survey which has not been approved as provided 
        in subdivision 4 unless the approval of the body authorized to 
        approve subdivision plats is endorsed thereon or attached 
        thereto. 
           Sec. 15.  Minnesota Statutes 1992, section 508A.47, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FILING REGISTERED LAND SURVEY.] The registered 
        land survey shall be filed in the office of the registrar of 
        titles, who shall number each registered land survey, the 
        numbers to run consecutively beginning with the number "1."  One 
        copy of each registered land survey shall be retained by the 
        registrar of titles as a master copy, one copy filed in a 
        registered land survey register in the registrar's office and 
        made available to the public, and one copy delivered to the 
        county auditor who may thereafter refer to it in connection with 
        the tax descriptions when convenient.  Thereafter the tracts in 
        each registered land survey shall be known as Tract ....., 
        registered land survey No. ...., files of registrar of titles, 
        county of ....., and all conveyances shall describe said 
        property accordingly; but the registrar shall not accept for 
        filing and registration any conveyance of unplatted registered 
        land if the land is described in the conveyance according to a 
        registered land survey which has not been approved as provided 
        in subdivision 4 unless the approval of the body authorized to 
        approve subdivision plats is endorsed on it or attached to it.  
                                       J
           Sec. 16.  Minnesota Statutes 1992, section 508.51, is 
        amended to read: 
           508.51 [OWNER'S DUPLICATE PRESENTED; EXCEPTION.] 
           No new certificate of title shall be entered or issued, and 
        no memorial shall be made upon any certificate of title in 
        pursuance of any deed or other voluntary instrument made by the 
        registered owner or the registered owner's attorney-in-fact, 
        unless the owner's duplicate is presented therewith, except in 
        cases provided for in this law or upon the order of the court.  
        When such order is made, a memorial thereof shall be entered, or 
        a new certificate issued as directed thereby.  The registrar 
        shall require that the owner's duplicate be presented only when 
        an instrument is submitted for filing that is executed by the 
        registered owner or the registered owner's attorney-in-fact.  
        When any voluntary instrument made by the registered owner or 
        the registered owner's attorney-in-fact is presented for 
        registration the production of the owner's duplicate certificate 
        shall authorize the registrar to enter a new certificate or to 
        make a memorial of registration in accordance with such 
        instrument, and the new certificate or memorial shall be binding 
        upon the registered owner and upon all persons claiming under 
        the registered owner in favor of every purchaser for value and 
        in good faith.  In all cases of registration which are procured 
        by fraud, the owner may pursue all legal and equitable remedies 
        against the parties to such fraud, without prejudice to the 
        rights of any innocent holder for value of a certificate of 
        title.  
           Sec. 17.  Minnesota Statutes 1992, section 508A.51, is 
        amended to read: 
           508A.51 [OWNER'S DUPLICATE PRESENTED; EXCEPTION.] 
           No new CPT shall be entered or issued, and no memorial 
        shall be made upon any CPT in pursuance of any deed or other 
        voluntary instrument made by the registered owner of the 
        registered owner's attorney-in-fact, unless the owner's 
        duplicate is presented with it, except in cases provided for in 
        sections 508A.01 to 508A.85, or upon the order of the court.  
        When an order or directive is made, a memorial of it shall be 
        entered, or a new CPT issued as directed.  The registrar shall 
        require that the owner's duplicate be presented only when an 
        instrument is submitted for filing that is executed by the 
        registered owner or the registered owner's attorney-in-fact.  
        When any voluntary instrument made by the registered owner or 
        the registered owner's attorney-in-fact is presented for 
        registration, the production of the owner's duplicate CPT shall 
        authorize the registrar to enter a new CPT or to make a memorial 
        of registration in accordance with the instrument, and the new 
        CPT or memorial shall be binding upon the registered owner and 
        upon all persons claiming under the registered owner in favor of 
        every purchaser for value and in good faith.  In all cases of 
        registration which are procured by fraud, the owner may pursue 
        all legal and equitable remedies against the parties to the 
        fraud, without prejudice to the rights of any innocent holder 
        for value of a CPT.  
                                       K
           Sec. 18.  Minnesota Statutes 1992, section 508.52, is 
        amended to read: 
           508.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF NEW 
        CERTIFICATE.] 
           An owner of registered land who desires to convey the land, 
        or a portion thereof, in fee, shall execute a deed of 
        conveyance, and file the deed, together with the owner's 
        duplicate certificate, with the registrar.  The registrar shall 
        require an affidavit by the grantee, or some person in the 
        grantee's behalf, which affidavit shall set forth the name, age, 
        and residence of the grantee, whether the grantee is 18 years of 
        age or older, and whether the grantee is or is not under 
        legal disability incapacity, whether or not married, and, if 
        married, the name of the spouse.  The deed of conveyance shall 
        be filed and endorsed with the number and place of registration 
        of the owner's certificate.  Before canceling the outstanding 
        certificate of title the registrar shall show by memorial 
        thereon the registration of the deed on the basis of which it is 
        canceled.  The encumbrances, claims, or interests adverse to the 
        title of the registered owner shall be stated upon the new 
        certificate, except so far as they may be simultaneously 
        released or discharged.  The owner's duplicate certificate and 
        the original certificate of title shall be marked "Canceled" by 
        the registrar, who shall enter in the register a new certificate 
        of title to the grantee, and prepare and deliver to the grantee 
        a new owner's duplicate certificate.  If a deed in fee is for a 
        portion of the land described in a certificate of title, the 
        memorial of the deed entered by the registrar shall include the 
        legal description contained in the deed and the registrar shall 
        enter a new certificate of title to the grantee for the portion 
        of the land conveyed and, except as otherwise provided in this 
        section, issue a residue certificate of title to the grantor for 
        the portion of the land not conveyed.  The registrar shall 
        prepare and deliver to each of the parties a new owner's 
        duplicate certificate for their respective certificates.  In 
        lieu of canceling the grantor's certificate of title and issuing 
        a residue certificate and owner's duplicate certificate to the 
        grantor for the portion of the land not conveyed, the registrar 
        may if the grantor's deed does not divide a parcel of unplatted 
        land, and in the absence of a request to the contrary by the 
        registered owner, mark by the land description on both the 
        owner's duplicate certificate of title and the original 
        certificate of title "Part of land conveyed, see memorials".  
        The fee for a residue certificate of title shall be paid to the 
        registrar only when the grantor's certificate of title is 
        canceled after the conveyance by the grantor of a portion of the 
        land described in the grantor's certificate of title.  When two 
        or more successive conveyances of the same property are filed 
        for registration on the same day the registrar may enter a 
        certificate in favor of the grantee or grantees in the last of 
        the successive conveyances, and the memorial of the previous 
        deed or deeds entered on the prior certificate of title shall 
        have the same force and effect as though the prior certificate 
        of title had been entered in favor of the grantee or grantees in 
        the earlier deed or deeds in the successive conveyances.  The 
        fees for the registration of the earlier deed or deeds shall be 
        the same as the fees prescribed for the entry of memorials.  The 
        registrar of titles, with the consent of the transferee, may 
        mark "See memorials for new owner(s)" by the names of the 
        registered owners on both the original certificate of title and 
        the owner's duplicate certificate of title and also add to the 
        memorial of the transferring conveyance a statement that the 
        memorial shall serve in lieu of a new certificate of title in 
        favor of the grantee or grantees therein noted and may refrain 
        from canceling the certificate of title until the time it is 
        canceled by a subsequent transfer, and the memorial showing such 
        transfer of title shall have the same effect as the entry of a 
        new certificate of title for the land described in the 
        certificate of title; the fee for the registration of a 
        conveyance without cancellation of the certificate of title 
        shall be the same as the fee prescribed for the entry of a 
        memorial.  
           Sec. 19.  Minnesota Statutes 1992, section 508A.52, is 
        amended to read: 
           508A.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF 
        NEW CPT.] 
           An owner of land registered under sections 508A.01 to 
        508A.85 who desires to convey the land, or a portion of it, in 
        fee, shall execute a deed of conveyance, and file the deed, 
        together with the owner's duplicate CPT, with the registrar.  
        The registrar shall require an affidavit by the grantee, or some 
        person in the grantee's behalf, which affidavit shall set forth 
        the name, age, and residence of the grantee, whether the grantee 
        is 18 years of age or older, and whether the grantee is or is 
        not under legal disability incapacity, whether or not married, 
        and if married, the name of the spouse.  The deed of conveyance 
        shall be filed and endorsed with the number and place of 
        registration of the owner's CPT.  Before canceling the 
        outstanding CPT, the registrar shall show by memorial on it the 
        registration of the deed on the basis of which it is canceled.  
        The encumbrances, claims, or interests adverse to the title of 
        the registered owner shall be stated upon the new CPT, except so 
        far as they may be simultaneously released or discharged.  The 
        owner's duplicate CPT and the original CPT shall be marked 
        "Canceled" by the registrar, who shall enter in the register a 
        new CPT to the grantee, and prepare and deliver to the grantee a 
        new owner's duplicate CPT.  If a deed in fee is for a portion of 
        the land described in a CPT, the memorial of the deed entered by 
        the registrar shall include the legal description contained in 
        the deed and the registrar shall enter a new CPT to the grantee 
        for the portion of the land conveyed and, except as otherwise 
        provided in this section, issue a residue CPT to the grantor for 
        the portion of the land not conveyed.  The registrar shall 
        prepare and deliver to each of the parties a new owner's 
        duplicate CPT for their respective CPTs.  In lieu of canceling 
        the grantor's CPT and issuing a residue CPT and owner's 
        duplicate CPT to the grantor for the portion of the land not 
        conveyed, the registrar may if the grantor's deed does not 
        divide a parcel of unplatted land, and in the absence of a 
        request to the contrary by the registered owner, mark by the 
        land description on both the owner's duplicate CPT and the 
        original CPT "Part of land conveyed, see memorials."  The fee 
        for a residue CPT shall be paid to the registrar only when the 
        grantor's CPT is canceled after the conveyance by the grantor of 
        a portion of the land described in the grantor's CPT.  When two 
        or more successive conveyances of the same property are filed 
        for registration on the same day the registrar may enter a CPT 
        in favor of the grantee or grantees in the last of the 
        successive conveyances, and the memorial of the previous deed or 
        deeds entered on the prior CPT shall have the same force and 
        effect as though the prior CPT had been entered in favor of the 
        grantee or grantees in the earlier deed or deeds in the 
        successive conveyances.  The fees for the registration of the 
        earlier deed or deeds shall be the same as the fees prescribed 
        for the entry of memorials.  The registrar of titles, with the 
        consent of the transferee, may mark "See memorials for new 
        owner(s)" by the names of the registered owners on both the 
        original CPT and the owner's duplicate CPT and also add to the 
        memorial of the transferring conveyance a statement that the 
        memorial shall serve in lieu of a new CPT in favor of the 
        grantee or grantees noted in it and may refrain from canceling 
        the CPT until the time it is canceled by a subsequent transfer, 
        and the memorial showing the transfer of title shall have the 
        same effect as the entry of a new CPT for the land described in 
        the CPT.  The fee for the registration of a conveyance without 
        cancellation of the CPT shall be the same as the fee prescribed 
        for the entry of a memorial. 
                                       L
           Sec. 20.  Minnesota Statutes 1992, section 508.55, is 
        amended to read: 
           508.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON 
        CERTIFICATE.] 
           The registration of a mortgage made by the registered owner 
        or the registered owner's attorney-in-fact shall be made in the 
        following manner:  The owner's duplicate certificate shall be 
        presented to the registrar, together with the mortgage deed, or 
        other instrument to be registered, and the registrar shall enter 
        upon the original certificate of title and also upon the owner's 
        duplicate certificate a memorial of the purport of the 
        instrument registered, the exact time of filing, and its file 
        number.  The registrar shall also note upon the registered 
        instrument the time of filing and a reference to the volume and 
        page where it is registered.  The registration of a mortgage 
        made by a party having an interest registered on the certificate 
        of title, other than the registered owner or the registered 
        owner's attorney-in-fact, must be made in the same manner, 
        except that the owner's duplicate certificate need not be 
        presented to the registrar. 
           Sec. 21.  Minnesota Statutes 1992, section 508A.55, is 
        amended to read: 
           508A.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON 
        CERTIFICATE.] 
           The registration of a mortgage made by the registered owner 
        or the registered owner's attorney-in-fact shall be made in the 
        following manner:  The owner's duplicate CPT shall be presented 
        to the registrar, together with the mortgage deed, or other 
        instrument to be registered, and the registrar shall enter upon 
        the original CPT and also upon the owner's duplicate CPT a 
        memorial of the purport of the instrument registered, the exact 
        time of filing, and its file number.  The registrar shall also 
        note upon the registered instrument the time of filing and a 
        reference to the volume and page where it is registered.  
                                       M
           Sec. 22.  Minnesota Statutes 1992, section 508.68, is 
        amended to read: 
           508.68 [DEATH OF OWNER; ISSUANCE OF NEW CERTIFICATES.] 
           When the owner of registered land, or of any estate or 
        interest therein, dies, having devised the same by will, the 
        persons entitled thereto may file with the registrar a certified 
        copy of such will and the personal representative's deed of 
        distribution together with any order of distribution, if there 
        be one, or certified copy of any final decree, if there be one, 
        assigning the same, and the duplicate certificate issued to the 
        testator, and thereupon the registrar shall cancel the duplicate 
        certificate issued to the testator and issue a new duplicate 
        certificate to the persons designated.  When the owner of 
        registered land, or of any estate or interest therein, dies, not 
        having devised the same, the persons entitled thereto by law may 
        file with the registrar the personal representative's deed of 
        distribution together with a certified copy of any order of 
        distribution, if there be one, or a certified copy of any final 
        decree of the court assigning the same, together with the 
        duplicate certificate issued to the intestate, and thereupon the 
        registrar shall cancel the duplicate certificate issued to the 
        intestate and issue a new duplicate certificate to the persons 
        entitled thereto.  Unless restricted by letters testamentary or 
        letters of administration, a personal representative may sell, 
        convey, or mortgage registered land in the same manner as if the 
        land were registered in the representative's name.  Such 
        personal representative shall first file with the registrar a 
        certified copy of any will of the decedent and a certified copy 
        of the representative's letters. 
           Sec. 23.  Minnesota Statutes 1992, section 508A.68, is 
        amended to read: 
           508A.68 [DEATH OF OWNER; ISSUANCE OF NEW CPTS.] 
           When the owner of land registered under sections 508A.01 to 
        508A.85, or of any estate or interest in it, dies, having 
        devised the same by will, the persons entitled to it may file 
        with the registrar a certified copy of the will and the personal 
        representative's deed of distribution together with any order of 
        distribution, if there is one, or certified copy of any final 
        decree, if there is one, assigning it, and the duplicate CPT 
        issued to the testator.  The registrar shall then cancel the 
        duplicate CPT issued to the testator and issue a new duplicate 
        CPT to the persons designated.  When the owner of land 
        registered under sections 508A.01 to 508A.85, or of any estate 
        or interest therein, dies, not having devised it, the persons 
        entitled to it by law may file with the registrar the personal 
        representative's deed of distribution together with a certified 
        copy of any order of distribution, if there be one, or a 
        certified copy of any final decree of the court assigning it, 
        together with the duplicate CPT issued to the intestate.  The 
        registrar shall then cancel the duplicate CPT issued to the 
        intestate and issue a new duplicate CPT to the persons entitled 
        to it.  Unless restricted by letters of testamentary or letters 
        of administration, a personal representative may sell, convey, 
        or mortgage land registered under sections 508A.01 to 508A.85 in 
        the same manner as if the land were registered in the 
        representative's name.  The personal representative shall first 
        file with the registrar a certified copy of any will of the 
        decedent and a certified copy of the representative's letters.  
                                       N
           Sec. 24.  Minnesota Statutes 1992, section 508.70, is 
        amended to read: 
           508.70 [SUBSEQUENT HOW TO MAKE ADVERSE CLAIM, HOW 
        REGISTERED; COSTS AFTER REGISTRATION.] 
           Subdivision 1.  [PROCEDURE; COSTS.] Any person claiming any 
        right, title, or interest in registered land adverse to the 
        registered owner thereof arising subsequent to the date of the 
        original registration, may, if no other provision is made in 
        this chapter for registering the same, file with the registrar a 
        verified statement in writing setting forth fully the alleged 
        right or interest, and how or from whom it was acquired, and a 
        reference to the volume and page of the certificate of title of 
        the registered owner, together with a description of the land, 
        the adverse claimant's residence, and designating a place at 
        which all notices may be served upon the adverse claimant.  Such 
        statement shall be entitled to registration as an adverse claim, 
        and the court, upon the petition of any party in interest, shall 
        grant a speedy hearing upon the validity of such adverse claim 
        and enter such decision and decree therein as justice and equity 
        may require.  If the adverse claim is adjudged to be invalid, 
        the registration thereof shall be canceled.  The court may, in 
        any case, award such costs and damages, including a reasonable 
        attorney's fee, as it may deem just.  
           Subd. 2.  [TEN-YEAR LIMIT UNLESS NEW FILING.] On and after 
        March 1, 1995, no adverse claim statement shall be notice, 
        either actual or constructive, of any matters referred to in the 
        statement after it has been of record for ten years unless a new 
        statement re-alleging the facts is filed within the ten-year 
        period upon the affected certificate of title or unless a 
        certified copy of a petition in a subsequent proceeding or a 
        notice of lis pendens to adjudicate the matters alleged in the 
        statement is filed within the ten-year period.  The registrar of 
        titles shall not carry forward to new certificates of title the 
        memorial of any statement of adverse claim that has terminated 
        as notice pursuant to this subdivision. 
                                       O
           Sec. 25.  Minnesota Statutes 1992, section 508.71, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REGISTRATION OF MEMORIALS.] Without order of 
        court or directive of the examiner, the registrar of titles may 
        receive and register as memorials upon any certificate of title 
        to which they pertain, the following instruments:  receipt or 
        certificate of county treasurer showing redemption from any tax 
        sale or payment of any tax described in a certificate of title, 
        a state deed issued to purchaser of tax-forfeited land, a 
        certified copy of a marriage certificate showing the subsequent 
        marriage of any owner party shown by a certificate of title to 
        be unmarried, a certified copy of a final decree of divorce or 
        dissolution of a marriage entered in the state of Minnesota, or 
        in any state, territory or possession of the United States, or 
        the District of Columbia to establish the dissolution of a 
        marriage relationship of any party shown on the certificate to 
        be married, and a certified copy of the death certificate of 
        party listed in any certificate of title as being the spouse of 
        the registered owner when accompanied by an affidavit 
        satisfactory to the registrar identifying the decedent with the 
        spouse.  In all subsequent dealings with the land covered by the 
        certificates, the registrar shall give full faith to these 
        memorials.  
           Sec. 26.  Minnesota Statutes 1992, section 508A.71, 
        subdivision 4, is amended to read: 
           Subd. 4.  [POWERS OF REGISTRAR.] Without order of court or 
        directive of the examiner the registrar of titles may receive 
        and register as memorials upon any CPT to which they pertain, 
        the following instruments; receipt or certificate of county 
        treasurer showing redemption from any tax sale or payment of any 
        tax described in a CPT, a certified copy of a marriage 
        certificate showing the subsequent marriage of any owner party 
        shown by a CPT to be unmarried, a certified copy of a final 
        decree of divorce or dissolution of a marriage entered in the 
        state of Minnesota, or in any state, territory or possession of 
        the United States, or the District of Columbia to establish the 
        dissolution of a marriage relationship of any party shown on the 
        certificate to be married, a certified copy of the death 
        certificate of party listed in any CPT as being the spouse of 
        the registered owner when accompanied by an affidavit 
        satisfactory to the registrar identifying the decedent with the 
        spouse.  In all subsequent dealings with the land covered by 
        CPTs the registrar shall give full faith to these memorials.  
                                   ARTICLE 4
                         COMMON INTEREST OWNERSHIP ACT
                                       A
                         CORRECTIONS AND OTHER CHANGES
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        515B.1-102, is amended to read: 
           515B.1-102 [APPLICABILITY.] 
           (a) Except as provided in this section, this chapter, and 
        not chapters 515 and 515A, applies to all common interest 
        communities created within this state on and after June 1, 1994. 
           (b) The applicability of this chapter to common interest 
        communities created prior to June 1, 1994, shall be as follows: 
           (1) This chapter shall apply to condominiums created under 
        chapter 515A with respect to events and circumstances occurring 
        on and after June 1, 1994; provided (i) that this chapter shall 
        not invalidate the declarations, bylaws or condominium plats of 
        those condominiums, and (ii) that chapter 515A, and not this 
        chapter, shall govern all rights and obligations of a declarant 
        of a condominium created under chapter 515A, and the rights and 
        claims of unit owners against that declarant. 
           (2) The following sections shall apply to condominiums 
        created under chapter 515:  515B.1-105 (Separate Titles and 
        Taxation); 515B.1-106 (Applicability of Local Ordinances, 
        Regulations, and Building Codes); 515B.1-107 (Eminent Domain); 
        515B.1-116 (Recording); 515B.2-103 (Construction and Validity of 
        Declaration and Bylaws); 515B.2-104 (Description of Units); 
        515B.2-118 (Amendment of Declaration); 515B.3-102 (Powers of 
        Unit Owners' Association); 515B.3-110 (Voting; Proxies); 
        515B.3-111 (Tort and Contract Liability); 515B.3-113 
        (Insurance); 515B.3-116 (Lien for Assessments); 515B.3-117 
        (Other Liens); 515B.3-118 (Association Records); 515B.3-121 
        (Accounting Controls); 515B.4-107 (Resale of Units); 515B.4-108 
        (Purchaser's Right to Cancel Resale); 515B.4-116 (Rights of 
        Action; Attorney's Fees); and 515B.1-103 (Definitions) to the 
        extent necessary in construing any of those sections.  The 
        foregoing sections shall apply only with respect to events and 
        circumstances occurring on and after June 1, 1994, and shall not 
        invalidate the declarations, bylaws or condominium plats of 
        those condominiums. 
           (3) This chapter shall not apply to cooperatives and 
        planned communities created prior to June 1, 1994; except by 
        election pursuant to subsection (d) and except that section 
        515B.2-118 (Amendment of Declaration) shall apply to all planned 
        communities created in this state prior to June 1, 1994. 
           (c) This chapter shall not invalidate any amendment to the 
        declaration, bylaws or condominium plat of any condominium 
        created under chapter 515 or 515A if the amendment would be 
        permitted by this chapter was recorded before June 1, 1994.  Any 
        permitted amendment recorded on or after June 1, 1994, shall be 
        adopted in conformity with the procedures and requirements 
        specified by those instruments and by this chapter.  If the 
        amendment grants to any person any rights, powers or privileges 
        permitted by this chapter, all correlative obligations, 
        liabilities and restrictions contained in this chapter shall 
        also apply to that person. 
           (d) Any condominium created under chapter 515, any planned 
        community or cooperative which would be exempt from this chapter 
        under subsection (e), or any planned community or cooperative 
        created prior to June 1, 1994, may elect to be subject to this 
        chapter, as follows: 
           (1) The election shall be accomplished by recording a 
        declaration or amended declaration, and approving bylaws or 
        amended bylaws, which conform to the requirements of this 
        chapter, and which, in the case of amendments, are adopted in 
        conformity with the procedures and requirements specified by the 
        existing declaration and bylaws of the common interest 
        community, and by any applicable statutes. 
           (2) An amended CIC plat shall not be required unless the 
        amended declaration or bylaws contain provisions inconsistent 
        with the existing CIC plat; provided, that the recording officer 
        shall index or cross-reference the CIC number to any existing 
        CIC plat. 
           (3) Except as otherwise expressly permitted under this 
        chapter, no amendment may (i) create or increase special 
        declarant rights; (ii) increase the number of units; (iii) 
        convert common elements to limited common elements; or (iv) 
        change the boundaries of a unit, a unit's allocated interests, 
        or the residential or nonresidential use of a unit, in the 
        absence of unanimous written agreement of all unit owners and 
        mortgagees holding first liens on units. The amendment shall 
        conform to the requirements of section 515B.2-118(d). 
           (4) Except as permitted by paragraph (3), no declarant, 
        affiliate of declarant, association, master association nor unit 
        owner may acquire, increase, waive, reduce or revoke any 
        previously existing warranty rights or causes of action that one 
        of said persons has against any other of said persons by reason 
        of exercising the right of election under this subsection. 
           (5) A common interest community which elects to be subject 
        to this chapter may, as a part of the election process, change 
        its form of ownership by complying with the requirements of 
        section 515B.2-123. 
           (e) Except as otherwise provided in this subsection, this 
        chapter shall not apply, except by election pursuant to 
        subsection (d), to the following: 
           (1) a planned community or cooperative which consists of 12 
        or fewer units subject to the same declaration, which is not 
        subject to any rights to add additional real estate and which 
        will not be subject to a master association; 
           (2) a common interest community where the units consist 
        solely of separate parcels of real estate designed or utilized 
        for detached single family dwellings or agricultural purposes, 
        and where the association has no obligation to maintain any 
        building containing a dwelling or any agricultural building; 
           (3) a planned community or cooperative where, at the time 
        of creation of the planned community or cooperative, the unit 
        owners' interests in the dwellings consist solely of leasehold 
        interests having an unexpired term of fewer than 20 years, 
        including renewal options; 
           (4) a common interest community containing only a 
        combination of dwellings described in paragraphs (2) and (3); 
           (5) planned communities and cooperatives limited by the 
        declaration to nonresidential use; or 
           (6) real estate subject only to an instrument or 
        instruments filed primarily for the purpose of creating or 
        modifying rights with respect to access, ditches, drainage or 
        irrigation. 
           (f) Section 515B.1-106 shall apply to all common interest 
        communities. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        515B.1-103, is amended to read: 
           515B.1-103 [DEFINITIONS.] 
           In the declaration and bylaws, unless specifically provided 
        otherwise or the context otherwise requires, and in this chapter:
           (1) "Additional real estate" means real estate that may be 
        added to a flexible common interest community. 
           (2) "Affiliate of a declarant" means any person who 
        controls, is controlled by, or is under common control with a 
        declarant.  
           (A) A person "controls" a declarant if the person (i) is a 
        general partner, officer, director, or employer of the 
        declarant, (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, (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.
           (B) A person "is controlled by" a declarant if the 
        declarant (i) is a general partner, officer, director, or 
        employer of the person, (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, (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.  
           (C) Control does not exist if the powers described in this 
        subsection are held solely as a security interest and have not 
        been exercised. 
           (3) "Allocated interests" means the following interests 
        allocated to each unit:  (i) in a condominium, the undivided 
        interest in the common elements, the common expense liability, 
        and votes in the association; (ii) in a cooperative, the common 
        expense liability and the ownership interest and votes in the 
        association; and (iii) in a planned community, the common 
        expense liability and votes in the association. 
           (4) "Association" means the unit owners' association 
        organized under section 515B.3-101. 
           (5) "Board" means the body, regardless of name, designated 
        in the articles of incorporation, bylaws or declaration to act 
        on behalf of the association, or on behalf of a master 
        association when so identified. 
           (6) "CIC plat" means a common interest community plat 
        described in section 515B.2-110. 
           (7) "Common elements" means all portions of the common 
        interest community other than the units. 
           (8) "Common expenses" means expenditures made or 
        liabilities incurred by or on behalf of the association, or 
        master association when so identified, together with any 
        allocations to reserves. 
           (9) "Common expense liability" means the liability for 
        common expenses allocated to each unit pursuant to section 
        515B.2-108. 
           (10) "Common interest community" means contiguous or 
        noncontiguous real estate within Minnesota that is subject to an 
        instrument which obligates persons owning a separately described 
        parcel of the real estate, or occupying a part of the real 
        estate pursuant to a proprietary lease, by reason of their 
        ownership or occupancy, to pay for (i) real estate taxes levied 
        against; (ii) insurance premiums payable with respect to; (iii) 
        maintenance of; or (iv) construction, maintenance, repair or 
        replacement of, improvements located on one or more parcels or 
        parts of the real estate other than the parcel or part that the 
        person owns or occupies. 
           (11) "Condominium" means a common interest community in 
        which (i) portions of the real estate are designated as units, 
        (ii) the remainder of the real estate is designated for common 
        ownership solely by the owners of the units, and (iii) undivided 
        interests in the common elements are vested in the unit owners. 
           (12) "Conversion property" means real estate on which is 
        located a building that at any time within two years before 
        creation of the common interest community was occupied as a 
        residence wholly or partially by persons other than purchasers 
        and persons who occupy with the consent of purchasers. 
           (13) "Cooperative" means a common interest community in 
        which the real estate is owned by an association, each of whose 
        members is entitled by virtue of the member's ownership interest 
        in the association to a proprietary lease. 
           (14) "Dealer" means a person in the business of selling 
        units for the person's own account. 
           (15) "Declarant" means: 
           (i) if the common interest community has been created, (A) 
        any person who has executed a declaration, or an amendment to a 
        declaration to add additional real estate, except secured 
        parties, persons whose interests in the real estate will not be 
        transferred to unit owners, or, in the case of a leasehold 
        common interest community, a lessor who possesses no special 
        declarant rights and who is not an affiliate of a declarant who 
        possesses special declarant rights, or (B) any person who 
        reserves, or succeeds under section 515B.3-104 to any special 
        declarant rights; or 
           (ii) any person or persons acting in concert who have 
        offered prior to creation of the common interest community to 
        transfer their interest in a unit to be created and not 
        previously transferred. 
           (16) "Declaration" means any instrument, however 
        denominated, including any amendment to the instrument, that 
        creates a common interest community. 
           (17) "Dispose" or "disposition" means a voluntary transfer 
        to a purchaser of any legal or equitable interest in the common 
        interest community, but the term does not include the transfer 
        or release of a security interest. 
           (18) "Flexible common interest community" means a common 
        interest community to which additional real estate may be added. 
           (19) "Leasehold common interest community" means a common 
        interest community in which all or a portion of the real estate 
        is subject to a lease the expiration or termination of which 
        will terminate the common interest community or reduce its size. 
           (20) "Limited common element" means a portion of the common 
        elements allocated by the declaration or by operation of section 
        515B.2-102(d) or (f) for the exclusive use of one or more but 
        fewer than all of the units. 
           (21) "Master association" means an entity that directly or 
        indirectly exercises any of the powers set forth in section 
        515B.3-102 on behalf of one or more members described in section 
        515B.2-121(b), (i), (ii) or (iii), whether or not it also 
        exercises those powers on behalf of one or more property owners 
        associations described in section 515B.2-121(b)(iv).  An entity 
        hired by an association to perform maintenance, repair, 
        accounting, bookkeeping or management services is not, solely by 
        virtue of that relationship, a master association. 
           (22) "Period of declarant control" means the time period 
        provided for in section 515B.3-103(c) during which the declarant 
        may appoint and remove officers and directors of the association.
           (23) "Person" means an individual, corporation, limited 
        liability company, partnership, trustee under a trust, personal 
        representative, guardian, conservator, government, governmental 
        subdivision or agency, or other legal or commercial entity 
        capable of holding title to real estate. 
           (24) "Planned community" means a common interest community 
        that is not a condominium or a cooperative.  A condominium or 
        cooperative may be a part of a planned community. 
           (25) "Proprietary lease" means an agreement with a 
        cooperative association whereby a member of the association is 
        entitled to exclusive possession of a unit in the cooperative. 
           (26) "Purchaser" means a person, other than a declarant, 
        who by means of a voluntary transfer acquires a legal or 
        equitable interest in a unit other than (i) a leasehold interest 
        of less than 20 years, including renewal options, or (ii) a 
        security interest. 
           (27) "Real estate" means any fee simple, leasehold or other 
        estate or interest in, over, or under land, including 
        structures, fixtures, and other improvements and interests that 
        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" may include spaces with or without 
        upper or lower boundaries, or spaces without physical boundaries.
           (28) "Residential use" means use as a dwelling, whether 
        primary, secondary or seasonal, but not transient use such as 
        hotels or motels. 
           (29) "Secured party" means the person owning a security 
        interest as defined in paragraph (30). 
           (30) "Security interest" means a perfected interest in real 
        estate or personal property, created by contract or conveyance, 
        which secures payment or performance of an obligation.  The term 
        includes a mortgagee's interest in a mortgage, a vendor's 
        interest in a contract for deed, a lessor's interest in a lease 
        intended as security, a holder's interest in a sheriff's 
        certificate of sale during the period of redemption, an 
        assignee's interest in an assignment of leases or rents intended 
        as security, a lender's interest in a cooperative share loan, a 
        pledgee's interest in the pledge of an ownership interest, or 
        any other interest intended as security for an obligation under 
        a written agreement. 
           (31) "Special declarant rights" means rights reserved in 
        the declaration for the benefit of a declarant to (i) complete 
        improvements indicated on the CIC plat; (ii) add additional real 
        estate to a common interest community; (iii) create units, 
        common elements, or limited common elements within a common 
        interest community; (iv) subdivide units or convert units into 
        common elements, limited common elements and/or units; (v) 
        maintain sales offices, management offices, signs advertising 
        the common interest community, and models; (vi) use easements 
        through the common elements for the purpose of making 
        improvements within the common interest community or any 
        additional real estate; (vii) create a master association and 
        provide for the exercise of authority by the master association 
        over the common interest community or its unit owners; (viii) 
        merge or consolidate a common interest community with another 
        common interest community of the same form of ownership; or (ix) 
        appoint or remove any officer or director of the association or 
        any master association during any period of declarant control. 
           (32) "Time share" means a right to occupy a unit or any of 
        several units during five three or more separate time periods 
        over a period of a least five three years, including renewal 
        options, whether or not coupled with an estate or interest in a 
        common interest community or a specified portion thereof. 
           (33) "Unit" means a parcel of real estate within physical 
        portion of a common interest community the boundaries of 
        which parcel are described in the common interest community's 
        declaration and which is intended for separate ownership or 
        separate occupancy pursuant to a proprietary lease. 
           (34) "Unit identifier" means English letters or Arabic 
        numerals, or a combination thereof, which identify only one unit 
        in a common interest community and which meet the requirements 
        of section 515B.2-104. 
           (35) "Unit owner" means a declarant or other person who 
        owns a unit, or a lessee of a unit in a leasehold common 
        interest community whose lease expires simultaneously with any 
        lease the expiration or termination of which will remove the 
        unit from the common interest community, but does not include a 
        secured party.  In a common interest community, the declarant is 
        the unit owner of a unit until that unit has been conveyed to 
        another person. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        515B.1-105, is amended to read: 
           515B.1-105 [SEPARATE TITLES AND TAXATION.] 
           (a) In a cooperative: 
           (1) Each unit, and its allocated interests and right to 
        possession under a proprietary lease, constitutes a separate 
        interest in personal property, or a separate parcel of real 
        estate if so designated by the declaration. 
           (2) The unit owners' interests in units and their allocated 
        interests are wholly personal property, unless the declaration 
        provides that the interests are wholly real estate.  The 
        characterization of these interests as real or personal property 
        shall not affect whether homestead exemptions or classifications 
        apply. 
           (3) (2) The ownership interest in a unit which may be sold, 
        conveyed, voluntarily or involuntarily encumbered, or otherwise 
        transferred by a unit owner, is the right to possession of that 
        unit under a proprietary lease coupled with the allocated 
        interests of that unit, and the association's interest in that 
        unit is not affected by the transaction. 
           (b) In a condominium or planned community: 
           (1) Each unit, and its allocated interest in the common 
        elements, constitutes a separate parcel of real estate. 
           (2) If there is any unit owner other than a declarant, each 
        unit shall be separately taxed and assessed, and no separate tax 
        or assessment may be rendered against any common elements. 
           (c) If a declaration is recorded prior to 30 days before 
        any installment of real estate taxes becomes payable, the local 
        taxing authority shall split the taxes so payable on the common 
        interest community among the units.  Interest and penalties 
        which would otherwise accrue shall not begin to accrue until at 
        least 30 days after the split is accomplished. 
           (d) A unit used for residential purposes together with not 
        more than three units used for vehicular parking, and their 
        common element interests, shall be treated as one parcel of real 
        estate in determining whether homestead exemptions or 
        classifications apply. 
           Sec. 4.  Minnesota Statutes 1993 Supplement, section 
        515B.1-116, is amended to read: 
           515B.1-116 [RECORDING.] 
           (a) A declaration, bylaws, any amendment to a declaration 
        or bylaws, and any other instrument affecting a common interest 
        community shall be entitled to be recorded. 
           (b) The recording officer shall upon request promptly 
        assign a number (CIC number) to a common interest community to 
        be formed or to a common interest community resulting from the 
        merger of two or more common interest communities. 
           (c) Documents recorded pursuant to this chapter shall in 
        the case of registered land be filed, and references to the 
        recording of documents shall mean filed in the case of 
        registered land. 
           (d) Subject to any specific requirements of this chapter, 
        if any document to be recorded pursuant to this chapter requires 
        approval by a certain vote or agreement of the unit owners or 
        secured parties, an affidavit of the secretary of the 
        association stating that the required vote or agreement has 
        occurred shall be attached to the document and shall constitute 
        prima facie evidence of the representations contained therein. 
           (e) If a common interest community is located on registered 
        land, the recording fee for any document affecting two or more 
        units shall be the then-current fee for registering the document 
        on one certificate the certificates of title for the first ten 
        affected certificate certificates and one-third of the 
        then-current fee for each additional affected certificate.  This 
        provision shall not apply to recording fees for deeds of 
        conveyance, with the exception of deeds given pursuant to 
        sections 515B.2-119 and 515B.3-112. 
           (f) An amendment to or restatement of a declaration or 
        bylaws, or an amended CIC plat, approved by the required vote of 
        unit owners of an association may be recorded without the 
        necessity of paying the current or delinquent taxes on any of 
        the units in the common interest community. 
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        515B.2-104, is amended to read: 
           515B.2-104 [DESCRIPTION OF UNITS.] 
           (a) If the CIC plat in a common interest community complies 
        with section 515B.2-110(c), a description of a unit is legally 
        sufficient if it sets forth (i) the unit identifier of the unit, 
        (ii) the number assigned to the common interest community by the 
        recording officer, and (iii) the county in which the unit is 
        located.  In a condominium or cooperative created under this 
        chapter, a unit identifier shall contain no more than six 
        characters, only one of which may be a letter. 
           (b) If the CIC plat for a planned community complies with 
        chapter 505, 508, or 508A, then a description of a unit in the 
        planned community is legally sufficient if it is stated in terms 
        of a plat or registered land survey and contains the common 
        interest community number.  A description of a unit is legally 
        sufficient if it sets forth (i) the unit identifier of the unit, 
        (ii) the number assigned to the common interest community by the 
        recording officer, and (iii) the county in which the unit is 
        located. 
           (b) The unit identifier shall be stated in the 
        declaration.  If the CIC plat for a planned community complies 
        with chapter 505, 508, or 508A, then the declaration shall 
        designate the lot, block, and subdivision name, or the tract and 
        registered land survey number, as the unit identifier.  In all 
        other planned communities, and in all condominiums and 
        cooperatives created under this chapter, a unit identifier shall 
        contain no more than six characters, only one of which may be a 
        letter. 
           (c) A description which conforms to the requirements of 
        this section shall be deemed to include all rights, obligations, 
        and interests appurtenant to the unit which were created by the 
        declaration or bylaws, or by this chapter, whether or not those 
        rights, obligations, or interests are expressly described. 
           (d) If the CIC plat for a planned community complies with 
        section 515B.2-110(c) a description of the common elements is 
        legally sufficient if it sets forth (i) the words "common 
        elements," (ii) the number assigned to the common interest 
        community by the recording officer, and (iii) the county in 
        which the common elements are located.  The common elements may 
        consist of separate parcels of real estate, in which case each 
        parcel shall be separately identified on the CIC plat and in any 
        recorded instrument referencing a separate parcel of the common 
        elements. 
           Sec. 6.  Minnesota Statutes 1993 Supplement, section 
        515B.2-105, is amended to read: 
           515B.2-105 [CONTENTS OF DECLARATION; ALL COMMON INTEREST 
        COMMUNITIES.] 
           (a) The declaration shall contain: 
           (1) the number of the common interest community, and the 
        names of the common interest community and the association; 
           (2) a statement that the common interest community is 
        either a condominium, cooperative, or planned community, and 
        whether it is or is not subject to a master association; 
           (3) a statement that the association has been incorporated 
        and a reference to the statute under which it was incorporated; 
           (4) a legally sufficient description of the real estate 
        included in the common interest community, including the name of 
        the county, and any appurtenant easements; 
           (5) a description of the boundaries of each unit created by 
        the declaration and the unit's unit identifier; 
           (6) in a planned community containing common elements, a 
        legally sufficient description of the common elements; 
           (7) in a cooperative, a statement as to whether the unit 
        owners' interests in all units and their allocated interests are 
        real estate or personal property; 
           (7) (8) an allocation to each unit of the allocated 
        interests in the manner described in section 515B.2-108; 
           (8) (9) a statement of (i) the total number of units and 
        (ii) which units will be restricted to residential use and which 
        units will be restricted to nonresidential use; 
           (9) (10) a statement of the maximum number of units which 
        may be created by the subdivision or conversion of units owned 
        by the declarant pursuant to section 515B.2-112; 
           (10) (11) any material restrictions on use, occupancy, or 
        alienation of the units, or on the sale price of a unit or on 
        the amount that may be received by an owner on sale, 
        condemnation or casualty loss to the unit or to the common 
        interest community, or on termination of the common interest 
        community; provided, that these requirements shall not affect 
        the power of the association to adopt, amend or revoke rules and 
        regulations pursuant to section 515B.3-102; 
           (11) (12) a statement as to whether time shares are 
        permitted; and 
           (12) (13) all matters required by sections 515B.1-103(31), 
        Special Declarant Rights; 515B.2-107, Leaseholds; 515B.2-109, 
        Common Elements and Limited Common Elements; 515B.2-110, Common 
        Interest Community Plat; 515B.3-115, Assessments for Common 
        Expenses; and 515B.2-121, Master Associations.  
           (b) The declaration may contain any other matters the 
        declarant considers appropriate. 
           Sec. 7.  Minnesota Statutes 1993 Supplement, section 
        515B.2-110, is amended to read: 
           515B.2-110 [COMMON INTEREST COMMUNITY PLAT (CIC PLAT).] 
           (a) The CIC plat is a part of the declaration, but need not 
        be physically attached to the declaration.  The CIC plat is 
        required for condominiums and planned communities, and 
        cooperatives in which the unit owners' interests are 
        characterized as real estate.  In cooperatives in which the unit 
        owners' interests are characterized as personal property, the 
        declaration shall include, a CIC plat shall not be required.  In 
        lieu of a CIC plat, the declaration or any amendment to it 
        creating, converting, or subdividing units in a personal 
        property cooperative shall include an exhibit containing a scale 
        drawing of each building, identifying the building, and showing 
        the perimeter walls of each unit created or changed by the 
        declaration or the amendment, including the unit's unit 
        identifier, and its location within a the building if the 
        building contains more than one unit. 
           (b) The CIC plat shall contain certifications by a 
        registered professional land surveyor and registered 
        professional architect, as to the parts of the CIC plat prepared 
        by each, that (i) the CIC plat accurately depicts all 
        information required by this section, and (ii) the work was 
        undertaken by, or reviewed and approved by, the certifying land 
        surveyor or architect.  The portions of the CIC plat depicting 
        the dimensions of the portions of a condominium or cooperative 
        described in subsections (c)(8), (9), (10), and (12), may be 
        prepared by either a land surveyor or an architect.  The other 
        portions of the CIC plat shall be prepared only by a land 
        surveyor.  Certification by the land surveyor or architect does 
        not constitute a guaranty or warranty of the nature, 
        suitability, or quality of construction of any improvements 
        located or to be located in the common interest community. 
           (c) A CIC plat for a condominium or cooperative shall show: 
           (1) the number of the common interest community, and the 
        boundaries, dimensions and a legally sufficient description of 
        the land included therein; 
           (2) the dimensions and location of all existing, material 
        structural improvements and roadways; 
           (3) the intended location and dimensions of any 
        contemplated common element improvements to be constructed 
        within the common interest community after the filing of the CIC 
        plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT"; 
           (4) the location and dimensions of any additional real 
        estate, labeled as such, and a legally sufficient description of 
        the additional real estate; 
           (5) the extent of any encroachments by or upon any portion 
        of the common interest community; 
           (6) the location and dimensions of all recorded easements 
        within the common interest community serving or burdening any 
        portion of the common interest community; 
           (7) the distance and direction between noncontiguous 
        parcels of real estate; 
           (8) the location and dimensions of limited common elements, 
        for example, storage lockers, porches, balconies, decks and 
        patios, other than limited common elements described in section 
        515B.2-102, subsections (b) and (d); 
           (9) the location and dimensions of the front, rear, and 
        side boundaries of each unit and that unit's unit identifier; 
           (10) the location and dimensions of the upper and lower 
        boundaries of each unit with reference to an established or 
        assumed datum and that unit's unit identifier; 
           (11) a legally sufficient description of any real estate in 
        which the unit owners will own only an estate for years, labeled 
        as "leasehold real estate"; 
           (12) any units which may be converted by the declarant to 
        create additional units or common elements identified separately.
           (d) A CIC plat for a planned community either shall comply 
        with either subsection (c) or it shall: 
           (1) show the number of the common interest community; 
           (2) satisfy the requirements of chapter 505, 508, or 508A, 
        as applicable; and 
           (3) satisfy the platting requirements of any governmental 
        authority within whose jurisdiction the planned community is 
        located, subject to the limitations set forth in section 
        515B.1-106. 
           (e) If a declarant adds additional real estate, the 
        declarant shall record a supplemental CIC plat or plats for the 
        real estate being added, conforming to the requirements of 
        subsections (b) and (c) in the case of a condominium or 
        cooperative, and subsections (b) and (d) in the case of a 
        planned community.  If less than all additional real estate is 
        being added, the supplemental CIC plat for a condominium or 
        cooperative shall also show the location and dimensions of the 
        remaining portion. 
           (f) If a declarant subdivides or converts any unit into two 
        or more units, common elements or limited common elements, the 
        declarant shall record an amendment to the CIC plat showing the 
        location and dimensions of any new units, common elements and 
        limited common elements thus created. 
           Sec. 8.  Minnesota Statutes 1993 Supplement, section 
        515B.2-118, is amended to read: 
           515B.2-118 [AMENDMENT OF DECLARATION.] 
           (a) Except in cases of amendments that may be executed by a 
        declarant under section 515B.2-111 or 515B.2-112, or by the 
        association and/or certain unit owners under section 515B.2-107, 
        515B.2-109, 515B.2-112, 515B.2-113, 515B.2-114, or 515B.2-119, 
        and except as limited by subsection (d), the declaration, 
        including any CIC plat, may be amended only by vote or written 
        agreement of unit owners of units to which at least 67 percent 
        of the votes in the association are allocated, or any greater or 
        other requirement the declaration specifies.  The declaration 
        may specify a smaller percentage only if all of the units are 
        restricted to nonresidential use. 
           (b) No action to challenge the validity of an amendment 
        adopted by the association pursuant to this section may be 
        brought more than two years after the amendment is recorded. 
           (c) Every amendment to the declaration shall be recorded in 
        every county in which any portion of the common interest 
        community is located and is effective only when recorded. 
           (d) Except as expressly permitted or required by other 
        provisions of this chapter, no amendment may (i) create or 
        increase special declarant rights, (ii) increase the number of 
        units, (iii) change the boundaries of any unit, (iv) change the 
        allocated interests of a unit, (v) change common elements to 
        limited common elements, (vi) change the authorized use of a 
        unit from residential to nonresidential, or conversely, or (vii) 
        change the characterization of the unit owners' interests in a 
        cooperative from real estate to personal property, or 
        conversely, 
        in the absence of unanimous written consent of the unit owners. 
           Sec. 9.  Minnesota Statutes 1993 Supplement, section 
        515B.2-119, is amended to read: 
           515B.2-119 [TERMINATION OF COMMON INTEREST COMMUNITY.] 
           (a) A common interest community may be terminated only by 
        agreement of unit owners of units to which at least 80 percent 
        of the votes in the association are allocated, and 80 percent of 
        the first mortgagees of units (each mortgagee having one vote 
        per unit financed), or any larger percentage the declaration 
        specifies.  The declaration may specify a smaller percentage 
        only if all of the units are restricted to nonresidential use. 
           (b) An agreement to terminate shall be evidenced by a 
        written agreement, executed in the same manner as a deed by the 
        number of unit owners and first mortgagees of units required by 
        subsection (a).  The agreement shall specify a date after which 
        the agreement shall be void unless recorded before that date.  
        The agreement shall also specify a date by which the termination 
        of the common interest community and the winding up of its 
        affairs must be accomplished.  A certificate of termination 
        executed by the association evidencing the termination shall be 
        recorded on or before the termination date, or the agreement to 
        terminate shall be revoked.  The agreement to terminate, or a 
        memorandum thereof, and the certificate of termination shall be 
        recorded in every county in which a portion of the common 
        interest community is situated and is effective only upon 
        recording. 
           (c) In the case of a condominium or planned community 
        containing only units having upper and lower boundaries, a 
        termination agreement may provide that all of the common 
        elements and units of the common interest community must be sold 
        following termination.  If, pursuant to the agreement, any real 
        estate in the common interest community is to be sold following 
        termination, the termination agreement shall set forth the 
        minimum terms of sale acceptable to the association. 
           (d) In the case of a condominium or planned community 
        containing any units not having upper and lower boundaries 
        described in the declaration, a termination agreement may 
        provide for sale of the common elements, but it may not require 
        that the units be sold following termination, unless the 
        original declaration provided otherwise or all unit owners whose 
        units are to be sold consent to the sale. 
           (e) The association, on behalf of the unit owners, shall 
        have authority to contract for the sale of real estate in a 
        common interest community pursuant to this section, subject to 
        the required approval.  The agreement to terminate shall be 
        deemed to grant to the association a power of attorney coupled 
        with an interest to effect the conveyance of the real estate on 
        behalf of the holders of all interests in the units, including 
        without limitation the power to execute all instruments of 
        conveyance and related instruments.  Until the sale has been 
        completed, all instruments in connection with the sale have been 
        executed and the sale proceeds distributed, the association 
        shall continue in existence with all powers it had before 
        termination. 
           (1) The instrument conveying or creating the interest in 
        the common interest community shall include as exhibits (i) an 
        affidavit of the secretary of the association certifying that 
        the approval required by this section has been obtained and (ii) 
        a schedule of the names of all unit owners in the common 
        interest community as of the date of the approval. 
           (2) Proceeds of the sale shall be distributed to unit 
        owners and secured parties as their interests may appear, in 
        accordance with subsections (h), (i), (j), and (k). 
           (3) Unless otherwise specified in the agreement of 
        termination, until the association has conveyed title to the 
        real estate, each unit owner and the unit owner's successors in 
        interest have an exclusive right to occupancy of the portion of 
        the real estate that formerly constituted the unit.  During the 
        period of that occupancy, each unit owner and the unit owner's 
        successors in interest remain liable for all assessments and 
        other obligations imposed on unit owners by this chapter, the 
        declaration or the bylaws. 
           (f) The legal description of the real estate constituting 
        the common interest community shall, upon the date of recording 
        of the certificate of termination referred to in subsection (b), 
        be as follows: 
           (1) In a planned community, the lot and block description 
        contained in the CIC plat, and any amendments thereto, subject 
        to any subsequent conveyance or taking of a fee interest in any 
        part of the property. 
           (2) In a condominium or cooperative, the underlying legal 
        description of the real estate as set forth in the declaration 
        creating the common interest community, and any amendments 
        thereto, subject to any subsequent conveyance or taking of a fee 
        interest in any part of the property. 
           (3) The legal description referred to in this subsection 
        shall apply upon the recording of the certificate of 
        termination.  The recording officer for each county in which the 
        common interest community is located shall index the property 
        located in that county in its records under the legal 
        description required by this subsection from and after the date 
        of recording of the certificate of termination.  In the case of 
        registered property, the registrar of titles shall cancel the 
        existing certificates of title with respect to the property and 
        issue one or more certificates of title for the property 
        utilizing the legal description required by this subsection. 
           (g) In a condominium or planned community, if the agreement 
        to terminate provides that the real estate constituting the 
        common interest community is not to be sold following 
        termination, title to the common elements and, in a common 
        interest community containing only units having upper and lower 
        boundaries described in the declaration, title to all the real 
        estate in the common interest community, vests in the unit 
        owners upon termination as tenants in common in proportion to 
        their respective interest as provided in subsection (k), and 
        liens on the units shift accordingly.  While the tenancy in 
        common exists, each unit owner and the unit owner's successors 
        in interest have an exclusive right to occupancy of the portion 
        of the real estate that formerly constituted the unit. 
           (h) The proceeds of any sale of real estate pursuant to 
        subsection (e), together with the assets of the association, 
        shall be held by the association as trustee for unit owners, 
        secured parties and other holders of liens on the units as their 
        interests may appear.  Before distributing any proceeds, the 
        association shall have authority to deduct from the proceeds of 
        sale due with respect to the unit (i) unpaid assessments levied 
        by the association with respect to the unit, (ii) unpaid real 
        estate taxes or special assessments due with respect to the 
        unit, and (iii) the share of expenses of sale and winding up of 
        the association's affairs with respect to the unit. 
           (i) Following termination of a condominium or planned 
        community, creditors of the association holding liens on the 
        units perfected before termination may enforce those liens in 
        the same manner as any lien holder, in order of priority based 
        upon their times of perfection.  All other creditors of the 
        association are to be treated as if they had perfected liens on 
        the units immediately before termination. 
           (j) In a cooperative, the declaration may provide that all 
        creditors of the association have priority over any interests of 
        unit owners and creditors of unit owners.  In that event, 
        following termination, creditors of the association holding 
        liens on the cooperative which were perfected before termination 
        may enforce their liens in the same manner as any lien holder, 
        in order of priority based upon their times of perfection.  All 
        other creditors of the association shall be treated as if they 
        had perfected a lien against the cooperative immediately before 
        termination.  Unless the declaration provides that all creditors 
        of the association have that priority: 
           (1) the lien of each creditor of the association which was 
        perfected against the association before termination becomes, 
        upon termination, a lien against each unit owner's interest in 
        the unit as of the date the lien was perfected; 
           (2) any other creditor of the association is to be treated 
        upon termination as if the creditor had perfected a lien against 
        each unit owner's interest immediately before termination; 
           (3) the amount of the lien of an association's creditor 
        described in paragraphs (1) and (2) against each of the unit 
        owners' interest shall be proportionate to the ratio which each 
        unit's common expense liability bears to the common expense 
        liability of all of the units; 
           (4) the lien of each creditor of each unit owner which was 
        perfected before termination continues as a lien against that 
        unit owner's interest in the unit as of the date the lien was 
        perfected; and 
           (5) the assets of the association shall be distributed to 
        all unit owners and all lien holders as their interests may 
        appear in the order described in this section.  Creditors of the 
        association are not entitled to payment from any unit owner in 
        excess of the amount of the creditor's lien against that unit 
        owner's interest. 
           (k) The respective interest of unit owners referred to in 
        subsections (e), (f), (g), (h) and (i) are as follows: 
           (1) Except as provided in paragraph (2), the respective 
        interests of unit owners are the fair market values of their 
        units, allocated interests, and any limited common elements 
        immediately before the termination, as determined by one or more 
        independent appraisers selected by the association.  The 
        decision of the independent appraisers must be distributed to 
        the unit owners and becomes final unless disapproved within 30 
        days after distribution by unit owners of units to which 25 
        percent of the votes in the association are allocated.  The 
        proportion of any unit's interest to that of all units is 
        determined by dividing the fair market value of that unit by the 
        total fair market values of all the units. 
           (2) If any unit or any limited common element is destroyed 
        to the extent that an appraisal of the fair market value thereof 
        before destruction cannot be made, the interests of all unit 
        owners are:  (i) in a condominium, their respective common 
        element interests immediately before the termination, (ii) in a 
        cooperative, their respective ownership interests immediately 
        before the termination, and (iii) in a planned community, their 
        respective common expense liabilities immediately before the 
        termination. 
           (1) In a condominium or planned community, except as 
        provided in subsection (m), foreclosure or enforcement of a lien 
        or encumbrance against the entire common interest community does 
        not terminate, of itself, the common interest community, and 
        foreclosure or enforcement of a lien or encumbrance against a 
        portion of the common interest community does not withdraw that 
        portion from the common interest community. 
           (m) In a condominium or planned community, if a lien or 
        encumbrance against a portion of the real estate comprising the 
        common interest community has priority over the declaration and 
        the lien or encumbrance has not been partially released, the 
        parties foreclosing the lien or encumbrance, upon foreclosure, 
        may record an instrument excluding the real estate subject to 
        that lien or encumbrance from the common interest community. 
           (n) Following the termination of a common interest 
        community in accordance with this section, the board of 
        directors of the association shall cause the association to be 
        dissolved in accordance with law. 
           Sec. 10.  Minnesota Statutes 1993 Supplement, section 
        515B.3-113, is amended to read: 
           515B.3-113 [INSURANCE.] 
           (a) Commencing not later than the time of the first 
        conveyance of a unit to a unit owner other than a declarant, the 
        association shall maintain, to the extent reasonably available: 
           (1) subject to subsection (b), property insurance (i) on 
        the common elements and, in a planned community, also on 
        property that must become common elements, (ii) for broad form 
        covered causes of loss, and (iii) in a total amount of not less 
        than the full insurable replacement cost of the insured 
        property, less deductibles, at the time the insurance is 
        purchased and at each renewal date, exclusive of items normally 
        excluded from property policies; and 
           (2) commercial general liability insurance against claims 
        and liabilities arising in connection with the ownership, 
        existence, use or management of the property in an amount, if 
        any, specified by the common interest community instruments or 
        otherwise deemed sufficient in the judgment of the board, 
        insuring the board, the association, the management agent, and 
        their respective employees, agents and all persons acting as 
        agents.  The declarant shall be included as an additional 
        insured in its capacity as a unit owner or board member.  The 
        unit owners shall be included as additional insureds but only 
        for claims and liabilities arising in connection with the 
        ownership, existence, use or management of the common elements.  
        The insurance shall cover claims of one or more insured parties 
        against other insured parties. 
           (b) In the case of a common interest community that 
        contains units sharing or having contiguous walls, siding or 
        roofs, the insurance maintained under subsection (a)(1) shall 
        include the units and the common elements.  The insurance need 
        not cover improvements and betterments to the units installed by 
        unit owners, but if improvements and betterments are covered, 
        any increased cost may be assessed by the association against 
        the units affected.  The association may, in the case of a claim 
        for damage to a unit or units, (i) pay the deductible amount as 
        a common expense, (ii) assess the deductible amount against the 
        units affected in any reasonable manner, or (iii) require the 
        unit owners of the units affected to pay the deductible amount 
        directly. 
           (c) If the insurance described in subsections (a) and (b) 
        is not reasonably available, the association shall promptly 
        cause notice of that fact to be hand delivered or sent prepaid 
        by United States mail to all unit owners.  The declaration may 
        require the association to carry any other insurance, and the 
        association in any event may carry any other insurance it 
        considers appropriate to protect the association, the unit 
        owners or officers, directors or agents of the association. 
           (d) Insurance policies carried pursuant to subsections (a) 
        and (b) shall provide that: 
           (1) each unit owner and secured party is an insured person 
        under the policy with respect to liability arising out of the 
        unit owner's interest in the common elements or membership in 
        the association; 
           (2) the insurer waives its right to subrogation under the 
        policy against any unit owner of the condominium or members of 
        the unit owner's household and against the association and 
        members of the board of directors; 
           (3) no act or omission by any unit owner or secured party, 
        unless acting within the scope of authority on behalf of the 
        association, shall void the policy or be a condition to recovery 
        under the policy; and 
           (4) if at the time of a loss under the policy there is 
        other insurance in the name of a unit owner covering the same 
        property covered by the policy, the association's policy is 
        primary insurance. 
           (e) Any loss covered by the property policy under 
        subsection (a)(1) shall be adjusted by and with the association. 
        The insurance proceeds for that loss shall be payable to the 
        association, or to an insurance trustee designated by the 
        association for that purpose.  The insurance trustee or the 
        association shall hold any insurance proceeds in trust for unit 
        owners and secured parties as their interests may appear.  The 
        proceeds shall be disbursed first for the repair or restoration 
        of the damaged common elements and units.  Unit owners and 
        secured parties are not entitled to receive any portion of the 
        proceeds unless there is a surplus of proceeds after the common 
        elements and units have been completely repaired or restored or 
        the common interest community is terminated. 
           (f) Unit owners may obtain insurance for personal benefit 
        in addition to insurance carried by the association. 
           (g) An insurer that has issued an insurance policy under 
        this section shall issue certificates or memoranda of insurance, 
        upon request, to any unit owner or secured party.  The insurance 
        may not be canceled until 30 days after notice of the proposed 
        cancellation has been mailed to the association, each unit owner 
        and each secured party for an obligation to whom certificates of 
        insurance have been issued. 
           (h) Any portion of the common interest community which is 
        damaged or destroyed as the result of a loss covered by the 
        association's insurance shall be promptly repaired or replaced 
        by the association unless (i) the common interest community is 
        terminated and the association votes not to repair or replace 
        all or part thereof, (ii) repair or replacement would be illegal 
        under any state or local health or safety statute or ordinance, 
        or (iii) 80 percent of the unit owners, including every owner 
        and holder of a first mortgage on a unit or assigned limited 
        common element which will not be rebuilt, vote not to rebuild.  
        The cost of repair or replacement of the common elements in 
        excess of insurance proceeds and reserves shall be paid as a 
        common expense, and the cost of repair of a unit in excess of 
        insurance proceeds shall be paid by the respective unit owner. 
           (i) If less than the entire common interest community is 
        repaired or replaced, (i) the insurance proceeds attributable to 
        the damaged common elements shall be used to restore the damaged 
        area to a condition compatible with the remainder of the common 
        interest community, (ii) the insurance proceeds attributable to 
        units and limited common elements which are not rebuilt shall be 
        distributed to the owners of those units, including units to 
        which the limited common elements were assigned, and the secured 
        parties of those units, as their interests may appear, and (iii) 
        the remainder of the proceeds shall be distributed to all the 
        unit owners and secured parties as their interests may appear in 
        proportion to their common element interest in the case of a 
        condominium or in proportion to their common expense liability 
        in the case of a planned community or cooperative. 
           (j) If the unit owners and holders of first mortgages vote 
        not to rebuild a unit, that unit's entire common element 
        interest, votes in the association, and common expense liability 
        are automatically reallocated upon the vote as if the unit had 
        been condemned under section 515B.1-107, and the association 
        shall promptly prepare, execute and record an amendment to the 
        declaration reflecting the reallocations.  Notwithstanding the 
        provisions of this subsection, if the common interest community 
        is terminated, insurance proceeds not used for repair or 
        replacement shall be distributed in the same manner as sales 
        proceeds pursuant to section 515B.2-119. 
           (k) The provisions of this section may be varied or waived 
        in the case of a common interest community in which all units 
        are restricted to nonresidential use. 
           Sec. 11.  Minnesota Statutes 1993 Supplement, section 
        515B.3-116, is amended to read: 
           515B.3-116 [LIEN FOR ASSESSMENTS.] 
           (a) The association has a lien on a unit for any assessment 
        levied against that unit from the time the assessment becomes 
        due.  If an assessment is payable in installments, the full 
        amount of the assessment is a lien from the time the first 
        installment thereof becomes due.  Unless the declaration 
        otherwise provides, fees, charges, late charges, fines and 
        interest charges pursuant to section 515B.3-102(a)(10), (11) and 
        (12) are liens, and are enforceable as assessments, under this 
        section.  
           (b) A lien under this section is prior to all other liens 
        and encumbrances on a unit except (i) liens and encumbrances 
        recorded before the declaration and, in a cooperative, liens and 
        encumbrances which the association creates, assumes, or takes 
        subject to, (ii) any first mortgage on the unit, or, in a 
        cooperative, any first security interest encumbering only the 
        unit owner's interest in the unit, and (iii) liens for real 
        estate taxes and other governmental assessments or charges 
        against the unit.  If a first mortgage on a unit is foreclosed, 
        the first mortgage was recorded after June 1, 1994, and no owner 
        redeems during the owner's period of redemption provided by 
        chapter 580, 581, or 582, the holder of the sheriff's 
        certificate of sale from the foreclosure of the first mortgage 
        shall take title to the unit subject to unpaid assessments for 
        common expenses levied pursuant to section 515B.3-115(a), (h)(1) 
        to (3), (i), and (l) which became due, without acceleration, 
        during the six months immediately preceding the first day 
        following the end of the owner's period of redemption.  If a 
        first security interest encumbering a unit owner's interest in a 
        cooperative unit which is personal property is foreclosed, the 
        secured party or the purchaser at the sale shall take title to 
        the unit subject to unpaid assessments for common expenses 
        levied pursuant to section 515B.3-115(a), (h)(1) to (3), (i), 
        and (l) which became due, without acceleration, during the six 
        months immediately preceding the first day following either the 
        date of sale pursuant to section 336.9-504 or the date on which 
        the obligation of the unit owner is discharged pursuant to 
        section 336.9-505.  This subsection shall not affect the 
        priority of mechanics' liens. 
           (c) Recording of the declaration constitutes record notice 
        and perfection of any lien under this section, and no further 
        recordation of any notice of or claim for the lien is required. 
           (d) Proceedings to enforce an assessment lien shall be 
        instituted within three years after the last installment of the 
        assessment becomes payable, or shall be barred. 
           (e) The unit owner of a unit at the time an assessment is 
        due shall be personally liable to the association for payment of 
        the assessment levied against the unit.  If there are multiple 
        owners of the unit, they shall be jointly and severally liable. 
           (f) This section does not prohibit actions to recover sums 
        for which subsection (a) creates a lien nor prohibit an 
        association from taking a deed in lieu of foreclosure. 
           (g) The association shall furnish to a unit owner or the 
        owner's authorized agent upon written request of the unit owner 
        or the authorized agent a statement setting forth the amount of 
        unpaid assessments currently levied against the owner's unit.  
        If the unit owner's interest is real estate, the statement shall 
        be in recordable form.  The statement shall be furnished within 
        ten business days after receipt of the request and is binding on 
        the association and every unit owner. 
           (h) The association's lien may be foreclosed as provided in 
        this subsection. 
           (1) In a condominium or planned community, the 
        association's lien may be foreclosed in a like manner as a 
        mortgage containing a power of sale pursuant to chapter 580, or 
        by action pursuant to chapter 581.  The association shall have a 
        power of sale to foreclose the lien pursuant to chapter 580. 
           (2) In a cooperative whose unit owners' interests are real 
        estate, the association's lien shall be foreclosed in a like 
        manner as a mortgage on real estate as provided in paragraph (1).
           (3) In a cooperative whose unit owners' interests in the 
        units are personal property, the association's lien shall be 
        foreclosed in a like manner as a security interest under article 
        9 of chapter 336.  In any disposition pursuant to section 
        336.9-504 or retention pursuant to section 336.9-505, the rights 
        of the parties shall be the same as those provided by law, 
        except (i) notice of sale, disposition, or retention shall be 
        served on the unit owner 90 days prior to sale, disposition, or 
        retention, (ii) the association shall be entitled to its 
        reasonable costs and attorney fees not exceeding the amount 
        provided by section 582.01, subdivision 1a, (iii) the amount of 
        the association's lien shall be deemed to be adequate 
        consideration for the unit subject to disposition or retention, 
        notwithstanding the value of the unit, and (iv) the notice of 
        sale, disposition, or retention shall contain the following 
        statement in capital letters with the name of the association or 
        secured party filled in: 
           "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of 
        association or secured party) HAS BEGUN PROCEEDINGS UNDER 
        MINNESOTA STATUTES, CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST 
        IN YOUR UNIT FOR THE REASON SPECIFIED IN THIS NOTICE.  YOUR 
        INTEREST IN YOUR UNIT WILL TERMINATE 90 DAYS AFTER SERVICE OF 
        THIS NOTICE ON YOU UNLESS BEFORE THEN: 
           (a) THE PERSON AUTHORIZED BY (fill in the name of 
        association or secured party) AND DESCRIBED IN THIS NOTICE TO 
        RECEIVE PAYMENTS RECEIVES FROM YOU: 
           (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS 
           (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS 
           (3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR 
        INCURRED; PLUS 
           (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO 
        (fill in name of association or secured party) AFTER THE DATE OF 
        THIS NOTICE; OR 
           (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 
        FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR 
        CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 
        SETTLEMENT.  YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 
        GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES. 
           IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 
        WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP 
        RIGHTS IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU 
        WILL LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL 
        LOSE YOUR RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR 
        RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND 
        YOU WILL BE EVICTED.  IF YOU HAVE ANY QUESTIONS ABOUT THIS 
        NOTICE, CONTACT AN ATTORNEY IMMEDIATELY." 
           (4) In any foreclosure pursuant to chapter 580, 581, or 
        582, the rights of the parties shall be the same as those 
        provided by law, except (i) the period of redemption for unit 
        owners shall be six months from the date of sale or a lesser 
        period authorized by law, (ii) in a foreclosure by advertisement 
        under chapter 580, the foreclosing party shall be entitled to 
        costs and disbursements of foreclosure, and attorneys fees in 
        the amount provided by section 582.01, subdivision 1a, (iii) in 
        a foreclosure by action under chapter 581, the foreclosing party 
        shall be entitled to costs and disbursements of foreclosure and 
        attorneys fees as the court shall determine, and (iv) the amount 
        of the association's lien shall be deemed to be adequate 
        consideration for the unit subject to foreclosure, 
        notwithstanding the value of the unit. 
           (i) If a holder of a sheriff's certificate of sale, prior 
        to the expiration of the period of redemption, pays any past due 
        or current assessments, or any other charges lienable as 
        assessments, with respect to the unit described in the sheriff's 
        certificate, then the amount paid shall be a part of the sum 
        required to be paid to redeem under section 582.03. 
           (j) In a cooperative, following foreclosure, the 
        association may bring an action for unlawful detainer against 
        the unit owner and any persons in possession of the unit, and in 
        that case section 504.02 shall not apply. 
           (k) An association may assign its lien rights in the same 
        manner as any other secured party. 
           Sec. 12.  Minnesota Statutes 1993 Supplement, section 
        515B.3-117, is amended to read: 
           515B.3-117 [OTHER LIENS.] 
           (a) Except in a cooperative and except as otherwise 
        provided in this chapter or in a security instrument, an 
        individual unit owner may have the unit owner's unit released 
        from a lien if the unit owner pays the lienholder the portion of 
        the lien amount which the lien secures that is attributable to 
        the unit.  Upon the receipt of payment, the lienholder shall 
        promptly deliver to the unit owner a recordable partial 
        satisfaction and release of lien releasing the unit from the 
        lien.  The release shall be deemed to include a release of any 
        rights in the common elements appurtenant to the unit.  The 
        portion of the amount which a lien secures that is attributable 
        to a unit owner's the unit shall be equal to the total amount of 
        which the lien secures multiplied by a percentage calculated by 
        dividing the common expense liability of attributable to the 
        unit owner's unit by the common expense liability of 
        attributable to all units which are subject to the lien against 
        which the lien has been recorded, or in the case of a lien under 
        subsection (b), the units against which the lien is permitted or 
        required to be recorded.  At the request of a lien claimant or 
        unit owners, the association shall provide a written statement 
        of the percentage of common expense liability of attributable to 
        all units subject to a lien.  After a unit owner's payment 
        pursuant to this section, the association may not assess the 
        unit for any common expense incurred thereafter in connection 
        with the satisfaction or defense against the lien. 
           (b) Labor performed or materials furnished for the 
        improvement of a unit shall be the basis for the filing 
        recording of a lien against that unit pursuant to the provisions 
        of chapter 514 but shall not be the basis for the filing 
        recording of a lien against the common elements.  Labor 
        performed or materials furnished for the improvement of common 
        elements, if duly authorized by the association, shall be deemed 
        to be performed or furnished with the express consent of each 
        unit owner, and shall be the basis for the filing of a lien 
        against each unit perfected by recording a lien against all the 
        units in the common interest community pursuant to the 
        provisions of chapter 514, but shall not be the basis for 
        the filing recording of a lien against the common elements.  
        Where a lien is filed recorded against one or more the units for 
        labor performed or material furnished for the improvement of 
        common elements, the association shall be deemed to be the 
        authorized agent of the unit owners for purposes of receiving 
        the notice notices required under section sections 514.011 and 
        514.08, subdivision 1, clause (2). 
           (c) A security interest in a cooperative whose unit owners' 
        interests in the units are personal property may shall be 
        perfected by the filing of recording a financing statement in 
        the UCC filing section of the office of the recording officer 
        for the county in which the unit is located.  In any disposition 
        by a secured party pursuant to section 336.9-504 or retention 
        pursuant to section 336.9-505, the rights of the parties shall 
        be the same as those provided by law, subject to the exceptions 
        and requirements set forth in section 515B.3-116(h)(3), and 
        except that the unit owner has the right to reinstate the debt 
        owing to the secured party by paying to the secured party, prior 
        to the effective date of the disposition or retention, the 
        amount which would be required to reinstate the debt under 
        section 580.30 if the unit were wholly real estate. 
                                       B
                               CONFORMING CHANGES
           Sec. 13.  Minnesota Statutes 1992, section 83.26, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERALLY; TRANSACTIONS.] Unless the method of 
        offer or sale is adopted for the purpose of evasion of sections 
        83.20 to 83.42, 83.43 and 83.44, the following transactions are 
        exempt from sections 83.23, 83.24, 83.25, 83.28, 83.29, and 
        83.30:  
           (a) 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) 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, subdivision 13; 
           (g) the offer and sale of apartments or condominiums 
        condominium units as defined in chapters 515 and 515A, and units 
        in common interest communities as defined in chapter 515B; 
           (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 emergency rulemaking authority pursuant to chapter 14. 
           Sec. 14.  Minnesota Statutes 1993 Supplement, section 
        508.71, subdivision 7, is amended to read: 
           Subd. 7.  [CONDOMINIUMS.] Prior to filing with the 
        registrar of titles a declaration or bylaws for a condominium, 
        or an amendment to the declaration adding additional real estate 
        to the condominium, the declarant shall have or bylaws, a 
        determination shall be made by an order of court in a proceeding 
        subsequent to initial registration or by a written directive of 
        the examiner of titles that the documents comply with the 
        requirements of the applicable condominium statute. 
           Sec. 15.  [EFFECTIVE DATE.] 
           This article is effective June 1, 1994. 
                                   ARTICLE 5 
                       TERMINATION OF TIME SHARE INTEREST
           Section 1.  Minnesota Statutes 1992, section 508.58, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXAMINER OF TITLES DIRECTIVE.] Any person who 
        has become the owner in fee of registered land, or any part of 
        the land, pursuant to a mortgage foreclosure by action under 
        chapter 581 is entitled to a new certificate of title for the 
        land described in the sheriff's certificate of sale or so much 
        of the land as may be described in the certificate of title, 
        after the redemption period expires.  The registrar shall enter 
        the new certificate of title and issue a new owner's duplicate 
        certificate only pursuant to the court order provided in 
        subdivision 1 or upon the written directive of the examiner of 
        titles as to the legal sufficiency of the mortgage foreclosure 
        proceeding.  The directive of the examiner of titles also must 
        specify the instruments the registrar shall omit from the new 
        certificate of title by virtue of the foreclosure.  
           At the request of a registered owner or other person in 
        interest, the examiner of titles by a written directive may 
        direct the registrar of titles to show by memorial on a 
        certificate of title that a contract for the conveyance of a 
        time share interest, as defined in section 515B.1-103(32), has 
        been terminated in accordance with chapter 559.  The directive 
        also must specify the instruments the registrar shall omit from 
        the next certificate of title because of the cancellation. 
           Presented to the governor April 5, 1994 
           Signed by the governor April 7, 1994, 11:02 a.m.